This document provides an overview of blockchain technology and applications. It discusses the origins of bitcoin and the problems it aimed to solve like trust and double spending. It explains cryptography concepts like hash functions and how proof of work solves double spending. The document outlines how the blockchain network works to validate transactions through a distributed consensus of nodes. It discusses forks and applications of blockchain beyond cryptocurrency. Limitations and competitors are also mentioned. In conclusion, the document discusses how blockchain enables shared visibility and tracking of digital assets.

1. BLOCK CHAIN
Technology & Applications
Presented By Guided By
Bhushan Vidhate Dr. Sunil B Somani

2. • Bit Coin- originally created as an
alternative, decentralized payment
method
Bit Coin
• Recently bitcoin seems to have assumed
the role of investment asset
• Unlike international bank transfers at the
time, it was low-cost and almost
instantaneous

3. Immense Growth of bitcoin
35x increase in just 2 Year
https://blockchain.info/charts

4. The origin:
Satoshi Nakamoto & His paper

5. Why we need Bit coin?
• Problem with an existing system - Trust and Double spending
• How it solves the problem

6. What is cryptography? 4 -5 slides
• Hash Function?
• SHA-256 Algorithm
• Mathematical example of cryptography from:
https://blockgeeks.com/guides/cryptocurrencies-cryptography/

7. Cryptography
Symmetric
Stream Ciphers Block Ciphers
Asymmetric
RSA EEC

8. Common Secret
Secret colors
+
=
Common Paint
Secret colors
Public
Transport
+
= =
+
+
=
Alice Bob

9. Alice’s credit
card number
Alice Bob
Alice’s credit
card number
Transfer
money to
Bob’s account
Transfer
confirmation
PROBLEMS
1. Trusted server for each transaction is needed
2. High transaction fees,
3. No anonymity.
Alice
Bob

10. Double spending…
16fab13fc6890
16fab13fc6890
Bits are easier to copy than paper!

11. A simple hash-based PoW
VerifierProver
random x
finds s such that
H(s,x) starts with n zeros (in binary)
s
“salt” “hardness parameter
checks if
H(s,x) starts
with n zeros
takes time 2n ¢ TIME(H) takes time TIME(H)
H -- a hash function whose
computation takes time TIME(H)

12. Main idea
The users participating in the scheme are called the miners”.
They maintain a chain of blocks:
block0 block1 block2 block3
transactions
from period 1
transactions
from period 2
transactions
from period 3
the “genesis block” created by
Satoshi on 03/Jan/2009
¼ 10 min.

15. A traditional ways of paying “digitally”

16. Proof of Work
• Proof-of-work is essentially one-CPU-one-vote

17. Steps to run the blockchain network
1. New transactions are broadcast to all nodes.
2. Each node collects new transactions into a block.
3. Each node works on finding a difficult proof-of-work for its block.
4. When a node finds a proof-of-work, it broadcasts the block to all
nodes.
5. Nodes accept the block only if all transactions in it are valid and not
already spent.
6. Nodes express their acceptance of the block by working on creating
the next block in the chain, using the hash of the accepted block as
the previous hash.

18. Distributed technology / Blockchain

19. Forks: Hard and Soft
• The forked code is similar to the original, but with important
modifications
• With cryptocurrencies, it is more often used to implement a
fundamental changes
• It creates a new asset with similar (but not equal) characteristics as
the original

20. Drawbacks of original Bitcoin.
• How etherium/Blockchain2.0 overcome them

21. Applications

22. Battel of Blockchain / competitors
• BitCoin
• LitCoin
• Etherium
• Dash
• .
• .
• .
• .

23. Limitations/Downsides

24. Mining Farms

25. Market overview
• Price movement
• No of Virtual Currency Today

26. Blockchain for non-financial innovation
• Ascribe
Status: Open for Business
Industry: Arts
• UProov
Status: Open for Business
Industry: Legal, Media
• Colu
Status: Open for business
Industry: Development
• Watrrenteer
Staus: Open for Business
Industry: Retail, Insurance
• Everledger
Status: Open for Business
Industry: Insurance, Diamonds
• Genecoin
Status: Alpha Stage
Industry: Medical, Genealogy
• Provenance
Status: Open for Business
Industry: Retail
• Wave
Status: Funded, still in Alpha
Industry: Import/Export
• IBREA
Status: Has a large LinkedIn
community
Industry: Real Estate

27. References
1. “Bitcoin: A Peer-to-Peer Electronic Cash System”, Satoshi Nakamoto,
www.bitcoin.org , 2008.
2. “Introduction to Security and Privacy on the Blockchain”, Harry Halpin,
Marta Piekarska, IEEE European Symposium on Security and Privacy
Workshop, 29 Jan 2017.
3. “Banking on the Blockchai Engineering the Financial Architecture”, Kristen
Silverberg, Conan French, Dennis Ferenzy, Stephanie Van den Berg, The
Institute of International Finance, 16 Nov 2016.
4. “Introduction to Bitcoin”, Lam Pak Nian, David LEE Kuo Chuen, Handbook
of Digital Currency, Elsevier Inc., 01 Aug 2015.
5. “Blockchain: Future of Financial and Cyber Security”, Sachchidanand
Singh, Nirmala Singh, International Conference on Contemporary
Computing and Informatics, IEEE, 15 Jun 2016.

28. Conclusion
We have briefly describes Blockchain technology which was developed.
Various types of blockchains were reviewed. Blockchain offers a shared
ledger that is updated and validated in real time with each network
participant. It enables equal visibility of activities and reveals where an
asset is at any point in time, who owns it and what condition its in.
Large blockchain systems like Bitcoin are the most secure, but at the
same time Bitcoin scalability issues make it little suitable for the IoT.

29. Thank You…