Blockchain 101 | Blockchain Tutorial | Blockchain Smart Contracts | Blockchain Training | Edureka

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Agenda
Why Blockchain? Solidity Programming
Blockchain Use CasesBlockchain Concepts
Hyperledger Fabric
Blockchain
In The Industry
Blockchain 101

Why Blockchain?

Blockchain is the technology behind Bitcoin
Why Blockchain?
Blockchain 101
is the technology behind Bitcoin
1
High Transaction Fees
2
Double Spending
Bitcoin came into existence to fix the issues we had with centralized banking systems

Blockchain is the technology behind Bitcoin
Why Blockchain?
Blockchain 101
Financial CrisisLong Time Involved
3 4
Bitcoin came into existence to fix the issues we had with centralized banking systems

Why Blockchain?
Blockchain 101
Bitcoin solved the issues we had with centralized banks.
Centralized
Power
Prone to
Hacks
Double
Spending
Private
Ledgers
Issues with centralized banks

Why Blockchain?
Blockchain 101
Bitcoin solved the issues we had with centralized banks.
Issues with centralized banks
Decentralized
Power
Public
Ledger
Immutable
to Hacks
No Double
Spending

Why Blockchain?
Blockchain 101
And the best part of using such a cryptocurrency is
that the transaction fee is zero or very
minimal in comparison with third parties such
as banks and digital transfer systems.

Blockchain 101

Blockchain 101
Blockchain 101
Distributed Public Ledger
Hash Encryption for
Anonymity
Proof of Work for
Maintenance
Incentives for Validation
Bitcoin FeaturesBlockchain is the technology behind Bitcoin

Distributed Ledger
Blockchain 101
Ledger
Account Number
1Pos4r9Eesbv8754b…
Balance
19K4ejhJW94U0212… 37
1ZOL9470uier2UMb… 42.67
178errbZ81FePNr30… 1342
1Mr3UNPH8H4U24v… 12.005
563
1JoH83jfos03n2490i… 974.65
… …
Every single person on the network has a copy of the ledger
There is no single centralized original copy

SHA256 Hash Function
Hello World
Hello World!
hello world!
a591a6d40bf420404a011733cfb7b190d62c65bf0bcda32b57b277d9ad9f146e
7f83b1657ff1fc53b92dc18148a1d65dfc2d4b1fa3d677284addd200126d9069
7509e5bda0c762d2bac7f90d758b5b2263fa01ccbc542ab5e3df163be08e6ca9
Blockchain 101
Unlike encryption algorithms, Hash functions cannot be decrypted
Bitcoin uses SHA256(SHA256(Block_Header))
It is highly secure as minute changes to input gives completely different output
Brute force attacks fail as there can be completely different input values giving same output
Hash Function

Proof of Work
Blockchain 101
 Bitcoin has miners who validate have
to solve a complex mathematical
puzzle to add a block to the
blockchain
 Proof of work involves solving
computationally expensive puzzle
which is tough to solve but easy to
verify
Hash (n-1)
Block Data
Nonce
Hash (n)
Block Data
Nonce
Hash (n+1)
Block Data
Nonce
Block n Block n+1 Block n+2
 Miners search for a specific nonce which gives the
desired hash which is predetermined

Incentives for Validation
Blockchain 101
 Every miner who successfully validates a block is paid
an incentive
 The current incentive is 12.5 BTC
($25,170 / ₹16,20,088)
 Bitcoin incentives is the only way to generate
new currency into the system
 By 2140, all 21 million bitcoins will be mined

Hyperledger Fabric

Hyperledger Fabric
Blockchain 101
Hyperledger Fabric is by far the most
advanced permissioned-blockchain
technology available today
- Grey Wolfond, SecureKey Tech

Hyperledger Fabric
 It varies from the regular blockchain projects as it
enables private members to verify identity and
transactions
Blockchain 101
 It allows channels, i.e., a group of members can form a separate (private)
ledger of transactions
 It encourages a collaborative approach to developing blockchain
technologies via a community process

Solidity Programming

Solidity Programming
 Solidity is a contract-oriented, high-level language whose syntax
is similar to that of JavaScript and it is designed to target the
Ethereum Virtual Machine (EVM).
Blockchain 101
 Solidity is statically typed, supports inheritance, libraries
and complex user-defined types among other features.
 It is possible to create contracts for voting, crowdfunding, blind
auctions, multi-signature wallets and more.

Blockchain Use Case – Stock Market

Blockchain Use Case – Stock Market
Blockchain 101
Stock trading can
be dated back to
1602
East India Company
was the world’s first
publicly trading
company
Throughout these
years, trading still
follows the same
model
Stock Trading History
Depositories and agents are single
points of failure
Registration, transfer, distribution and
other fees
Increasing administrative fees with
time
Multiple Industry Problems

Stock Market – Centralized Model
Blockchain 101
RegulatorsRegulators

Stock Market – Problems with Centralization
Blockchain 101
Problems arising in the centralized Stock exchange
Companies like Lehman Brothers
& MF Global self-destructed
Unaccounted anomalies in Lehman Brothers
led to deteriorating creditworthiness
Extensive use of market debt
Increasing Price-Earnings ratios
Problem Statement
To design a Blockchain solution to solve the issues of centralized stock exchange systems

Stock Market – Blockchain Model
Blockchain 101
RegulatorsRegulators

Stock Market – Blockchain Model

Blockchain Use Cases

Banking Payment & Transfers Healthcare Law Enforcement
Voting Transportation Online Music Real Estate

Blockchain can cut up to $20 billion in middle-man costs per year
Hacking into banking ledgers becomes close to impossible
Solves the double spending problem
Reduces bank crises by a large extentBanking
Blockchain 101

Blockchain transfers are the highest in terms of security
Currently Bitcoin runs on no fixed transaction fees
Anonymity is maintainedPayment & Transfers
No bank account is required
Blockchain 101

Elections require authentication of voters’ identity, secure record
keeping and trusted tallies
Blockchain is the medium for casting, tracking and counting votes
without voter-fraud, lost records or fowl-play.
Increases voter turnoutVoting
Blockchain 101

Blockchain Applications

Blockchain 101
Followmyvote is the world’s first
open-source online voting
solution based on blockchain. It
helps in voter identification and
online voting.
ShoCard stores your identity onto
Blockchain for easy verification.
Can be used for Governmental
schemes and bank verification.
A true decentralized ridesharing
service often called ‘Uber killer’.
Works on real time car pooling
technique based on Blockchain.

Blockchain 101
Everledger provides an
immutable blockchain ledger for
diamond identification and
transaction verification.
Brooklyn Microgrid allows local
residents to buy and sell the
energy on blockchain they
produce from rooftop solar
power installations.
Bitshares provides a high-
performance decentralized
trading platform on blockchain.

Blockchain 101 | Blockchain Tutorial | Blockchain Smart Contracts | Blockchain Training | Edureka

Blockchain 101 | Blockchain Tutorial | Blockchain Smart Contracts | Blockchain Training | Edureka

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