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Blockchain - Workshop 1

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Rutumbara Chakor
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5 views

Blockchain - Workshop 1

Uploaded by

Rutumbara Chakor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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WORKSHOP 1

BASICS-OF-BLOCKCHAIN

Basics-of-Blockchain
Workshop Day_1
Somewhere in the parallel universe ;)

Dude, I need
some money
Cool, I’m sending it
to your account.
Thanks bruv !
Sent, vro.

Harsh
Behind the scenes!
Issues with this approach

● What if that register in which the transaction was logged gets burnt in a
fire or destroyed by any means ?

● What if, by mistake, your bank had written $2000 instead of $1500?

● What if the bank did that on purpose?


Solutions?

● Is it possible to get rid of the middleman?

● Can we hold the records to ourselves?


Replacing the middleman

● Everyone should have a copy of the


register.

● When a transaction happens, all the


copies of register must be updated.

● Registers once updated, must be


immutable
Building the Solution

● An Empty Folder, storing the pages


● When A Transaction Happens:
○ Everyone checks whether A has enough balance to transfer amount X
to C
○ Everyone makes sure A actually made a transaction to C and of X
amount
○ Everyone update their page
● Transactions Continue to Happen
● Putting away the Page
Putting away the page

● Page should be sealed so that it remains unaltered

● Sealed with a unique Key that everyone agrees upon

● Earlier the bank provided this trust

● Now, this seal will provide the trust instead

How to create such seal digitally?


The Magic Machine

● This machine should provide us the seal for our given input

● Given a specific input, the output must be fixed and unique

● This machine’s outputs are irreversible, i.e. given the output we can’t find

the input.

● Given an output, bruteforce is the only solution to find input.

+
Seal
Required
Input data Output(000…)

Seal Number 1 Our Output - 111….


Seal Number 2 Our Output - 010...
Seal Number n …. Our Output - 000…..
The final key Got Required Output!!!!

And the magic happens !!!!


Harsh
How do we seal a page?

● A prerequisite for output is defined, which sets the difficulty level.

● Everybody in the network simultaneously starts trying different values for

seal number, until the magic machine satisfies the required output condition.

● The one who finds it, broadcasts it to all.


How do we seal a page? (Contd.)

● Everyone verifies if the broadcasted key satisfies the required output


condition.

● Why should not I sit idle and wait for somebody else to broadcast the key?

● The first person to find the correct key is rewarded.


Is the seal trustworthy ?

● What if someone tries to modify a previously sealed page?

● Can we link the pages?

● How can we do that?


Threat to this network

● What if the majority turns to be dishonest?

● This would simply break the network.

● Such type of an attack is called the “51% attack”.

● More diverse a Blockchain network would be, the safer it would be.
Connecting the Dots

● An Empty Folder - A Blockchain

● Validating a transaction - Consensus

● Transactions Continues to Happen - Keep adding transactions until a block is full

● Magic Machine - Hash Function

● Finding the key - Proof Of Work

● Putting Away The Page with the seal - Mining a new block
So basically what is blockchain and how it is
helping ?

Now, by this we understood few points -

● Technically, blockchain is a kind of database with a digital record of all


transactions that are immutable.
● Blocks are linked together in single list via hashes of previous block,hence
the name blockchain.
● Can be used anywhere the data needs to be distributed and immutable,
blockchain can be used, Eg- digital voting applications, digital identity etc.
Revising Object Oriented Programming
Off topic information

Classes - A class is a user defined blueprint or prototype from which


objects are created. It represents the set of properties or methods that
are common to all objects of one type.
Objective 1 - Coding a block
Let’s dive into some code !
Questions to dig deeper!

● Are we checking the validity of transactions?

● Are we preventing all the other malicious activities on our network?

● What about confidentiality of data?


Oops... Time's Up!!

♫ We'll tell you all about it when we see you again! ♫

PS: 1st year recruitments soon !

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