1. Eno Bassey
Presentation By:
Understanding Blockchain Technology
And CryptoCurrency
Ebuka Umeh

2. @ennytwit
- Senior Consultant @ Andela
- Php, C#, Python, Ruby & Solidity
- Drama Director
- Anime Lover
- BasketBaller
- Football Analyst

3. @obitojs
- Senior Developer @ Andela
- Javascript, Solidity
- Loves Coding
- Watching Sitcom

4. Contents
Background: Internet & Financing
What is BlockChain Technology
What is a Node, Block, Hashing & Transaction
Demo of Hashing
What is Mining
How Transactions are Validated
History of the BlockChain
Types of BlockChain
What is CryptoCurrency?
Coins, Tokens & Altcoins: What is the difference
Top CryptoCurrencies
BlockChain Applications Globally
Ethereum - What is Ethereum
Origin of Ethereum
Components within Ethereum
Smart Contracts
What makes it better
Concerns & Issues of BlockChain
Why should I Care?
Can I start a blockchain or own a cryptocurrency ?
Questions?

5. Background:
Internet & Financing

6. What is the internet?
The Internet is the global system of interconnected computer networks that use the Internet protocol
suite (TCP/IP) to link devices worldwide. It is a network of networks that consists of private, public,
academic, business, and government networks of local to global scope, linked by a broad array of
electronic, wireless, and optical networking technologies
What is its use?
Basically Limitless. Almost all innovative technology right now depends on it
- definition by wikipedia

7. Banking and Financing
Banking is an industry that handles cash, credit, and other financial transactions.
These transactions are usually stored in ledgers.
A bank ledger is a running list of transactions to and from a bank account.
It contains columns for the date, description, amount and leftover balance.
Your bank provides a ledger for you to read online or on your monthly printed statement.
Finally, A Bank Is A Single Source Of Truth For Your Financial Transactions

8. What is Blockchain Technology ?

9. Blockchain is the digital and
de-centralized ledger
technology that records all
transactions without the
need for a financial
intermediary like a bank.
The concept is a system that
is decentralised and
networked via nodes
Decentralized Nodes

10. Blockchains are
eliminating the
requirement of trust
among individuals for
simple transactions
involving accounts,
balances or ownership
of propertiesTransactions

11. How does the BlockChain work?
1.Transaction Initiated
2.Transaction is broadcasted over
the P2P Network encrypted.
3.Miners rush to validate
transactions.
4.Once transaction is verified, a new
block is created and appended to
the existing blocks.

12. What is a Node
By keeping a shallow-copy of the blockchain aka a Light Client.
By keeping a full-copy of the blockchain aka a Full Node.
By verifying the transactions aka Mining
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A node is simply a computer that participates in the BlockChain network
This participation can be in three ways:

13. What is a ‘Block’
Just like BRICKS are the building blocks of a HOUSE,
BLOCKS themselves are the building blocks of a BLOCKCHAIN.
A block contains transaction data and other important details related to the creation of that block,
such as the time when it was created and other unique information.
In order to create a block, we must have a record which we wish to store

14. What is Hashing
A hash is a function that converts an input of letters and numbers into an encrypted output of a fixed length.
In the context of cryptocurrencies like Bitcoin, the transactions are taken as an input and run through a
hashing algorithm which gives an output of a fixed length
Blockchain uses a cryptographic hash function, meaning that the output is random but deterministic. This
means the same input will always produce the same hash.
That process is one-way, so the output (hash) cannot be used to produce the original input.

15. What is a Transaction?
A Blockchain transaction can be defined as a small unit of task that is stored in public records.
These records are actually a group of blocks.
A transaction is a transfer of Bitcoin value that is broadcast to the network and collected
into blocks. A transaction typically references previous transaction outputs as new transaction
inputs and dedicates all input Bitcoin values to new outputs.

16. DEMO by Anders Brownworth
https://anders.com/blockchain/blockchain.html

17. What is Mining
Creates new ‘coins’ or ‘tokens’ to each block
Confirms transactions in a ‘trustful’ manner and adds to existing block.Kenya
It is a de-centralized computational process that serves two purposes
Its expensive as it requires high computational power and electricity.
However, you can use your system as a mining device with installed softwares.

18. Mining Machine
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Antminer S9 Bitcoin Miner

19. Mining Facility
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20. How Transactions are Validated
Proof of Work (PoW): Validating transactions utilizing a resource intensive
hashing process confirming transactions between network participants (public
miners) and writes the confirmed transactions into the blockchain ledger
Proof of Stake (PoS): Validating blocks created by miners and requires users
to prove ownership of their ‘stake’. Makes monopoly difficult and enhances
security

21. History of the BlockChain

22. History of the BlockChain
- First conceptualised by a person (group of people) known as
Satoshi Nakamoto in 2008.
-Took root with the initial coin (BitCoin) the following year.
- Satosi presented a white paper titled “Bitcoin: A peer-to-peer Electronic
Cash System”.

23. Why was it Invented?
Perceived shortcomings of the traditional banking and contracts systems
Global Validation of Transactions
Seperation of Powers from Elite Systems and organisations

24. Versions of the BlockChain
- Blockchain 1.0 - ‘Grandpa BitCoin’.
- Blockchain 2.0 - ‘Child Prodigy Ethereum’.
- Blockchain 3.0 - ‘The Killers’.
Bitcoin by Satoshi Nakamoto
Ethereum by Vitalik Buterin
Newer technologies like
- The One, NEO
- Business Focused, QTUM
- Blockless chain, IOTA
- Radix
- Fundraiser, EOS
- Nano

25. Types of BlockChain
Fully Decentralized and
uncontrolled networks with no
access permission required
Anyone can participate in the
consensus process to determine
with transaction blocks are added
Public Blockchain

26. Types of BlockChain
The consensus process for new
transaction blocks is controlled by a
fixed set of nodes, such as group of
financial institutions where pre-
existing trust is high
Consortium Blockchain

27. Types of BlockChain
Access permissions are tightly
controlled, with rights to read or
modify the blockchain restricted to
certain users.
Permission to read this blockchain
is restricted.
Private Blockchain

28. What is CryptoCurrency

29. What is CryptoCurrency
Electronic peer-to-peer currencies.
Do not physically exist.
Measured against the real currencies
Cryptocurrencies are ‘currencies’ that work and can be transacted on
within the block chain technology
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30. Coins, Tokens & AltCoin:
Coins: Operates on its own Blockchain. Has
its own independent transaction
ledgers.Used to transfer wealth.
Tokens: Operates on an existing blockchain
infrastructure like Ethereum. Can represent a
“contract” for almost anything.
AltCoins: Coins derived from or alternative
to Bitcoin. Majority of coins are a
variant(fork) of Bitcoin
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What’s the difference?

31. How many cryptocurrencies are out
there ?
Officially there more than 1,300 cryptocurrencies (but BitCoin is King)
Nearest challenger to the bitcoin’s technology and coin is Ethereum
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32. Top CryptoCurrencies as at June 19, 2018
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Name Market Cap $ Price $ Circulating Supply
BitCoin 115,347,760,477 6,744.29 17,103,025 BTC
Ethereum 53,324,131,720 532.30 100,176,651 ETH
Ripple 21,273,231,363 0.542058 39,245,304,677 XRP
Bitcoin Cash 15,345,147,768 892.55 17,192,538 BCH
EOS 9,484,129,305 10.58 896,149,492 EOS
LiteCoin 5,625,300,432 98.60 57,049,646 LTC
Stellar 4,379,126,608 0.235326 18,608,766,596 XLM
Cardano 4,272,547,881 0.164791 25, 927,070,538 ADA
IOTA 3,274,648,012 1.18 2,779,530,283 MIOTA
TRON 3,146,224,662 0.047853 65,748,111,645 TRX

33. BlockChain Applications Globally
Health Care
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MedRec – An MIT project involving blockchain electronic medical records designed to manage
authentication, confidentiality and data sharing.
- https://medrec.media.mit.edu/
Financial Services
Barclays – Barclays has launched a number of blockchain initiatives involving tracking financial
transactions, compliance and combating fraud. It states that “Our belief ...is that blockchain is a
fundamental part of the new operating system for the planet.”
- https://www.barclayscorporate.com/insight-and-research/technology-and-digital-innovation/what-does-
blockchain-do.html
Retail
Loyyal – Powered by blockchain and smart contract technology, this loyalty and rewards platform
creates more customized programs that even allow for multi-branded rewards.
- https://www.loyyal.com/

34. BlockChain Applications Globally - contd
Real Estate
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BitProperty – Using blockchain and smart contracts, BitProperty wants to democratize opportunity and
create a decentralized society by allowing anyone anywhere in the world (except the U.S. and Japan
due to regulatory concerns) to invest in real estate.
- https://btptoken.io/en/
Transport and Tourism
Guts – A transparent ticketing ecosystem that uses blockchain technology to eliminate ticket fraud
and the secondary ticket market.
- https://guts.tickets/
Media
KODAKOne – Kodak recently sent its stock soaring after announcing that it is developing a blockchain
system for tracking intellectual property rights and payments to photographers.
- https://www.reuters.com/article/us-crypto-currencies-eastman-kodak/kodak-blockchain-project-seeks-to-
raise-50-million-in-token-offering-idUSKBN1IB1J7/

35. Ethereum

36. “[Blockchain] is to Bitcoin, what the
internet is to email. A big electronic
system, on top of which you can build
applications. Currency is just one.” Sally
Davies, FT Technology Reporter

37. What is Ethereum?
Ethereum is a decentralized platform
that runs smart contracts:
applications that run exactly as
programmed without any possibility of
downtime, censorship, fraud or third-
party interference.
While bitcoin aims to disrupt PayPal and
online banking, ethereum has the goal of
using a blockchain to replace internet
third parties — those that store data,
transfer mortgages and keep track of
complex financial instruments.

38. Origin of Ethereum
Created By Vitalik Buterin
Presented a paper to support building of decentralised applications.
Announced Jan 2014
Aim was to make the new blockchain support different applications that
can run on blockchain technology
Current count is 100 million Ether in circulation as at May 2018
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39. Components within Ethereum
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Ether: is a crypto-currency whose blockchain is generated by Ethereum
Ethereum Virtual Machine (EVM) : is a de-centralized Turing-complete
virtual machine, which can execute complex scripts using an international
network of nodes. It enables anyone to run any program, regardless of the
programming language given enough time and memory.
Smart Contracts: A program running specifically on the Ethereum
Blockchain to execute different third party agreements.

41. Smart Contracts

42. What are Smart
Contracts?
It is a computer program code that
facilitates and enforces the rules for a
transaction to occur. These contracts work
when triggered, so, “if this happens, then do
that”.
It is completely automated, verified by
many computers, and can be used to
complement or even replace a legal
contracts
A smart contract is similar to a contract
in the physical world, but it’s digital and
is represented by a tiny computer
program stored inside a blockchain.

43. Nigeria
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How Smart Contract Works

44. Nigeria
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How Smart Contract Works

45. What makes it better?
Trust - You won’t have anyone coming back to you because they
misplaced your contract
Safety - Your documents are kept safe via cryptography (a high level of
encryption)
Accuracy - Since your contracts run on code and are not filled out
manually, which also allows maximum efficiency, you can avoid
traditional issues that can cost time and money
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46. Concerns and Issues
of
BlockChain

47. Blockchain Concerns
Ban - Some countries have outrightly banned the use of blockchain
technology
Expensive - To run a blockchain or be part of it requires tremendous
amount of resources. Network, Power and Miners are required at a
constant rate.
Bubble Burst - The technology being overhyped and eventually ‘burst’.
Volatility - The currencies are highly volatile. Its not for the faint of
heart.Its risky.
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48. Blockchain Concerns - contd
Complex - A lot of users may find it confusing to understand.
Slow and cumbersome - To validate a transaction can take hours in
some cases due to their complexity , encrypted and distributed nature
Vested Interest - The more establish financial institutions may not buy
into it.
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49. Why should I care

50. Top 20 fastest growing skills, Q1 , 2018
1.Blockchain
2.Tensorflow
3.Amazon DynamoDB
4.Voice over
5.Subtitling
6.Art direction
7.Content strategy
8.Computer vision
9.Microsoft Power BI
10.Augmented reality
11. Chatbot development
12. React native
13. Media buying
14. Go development
15. Information security
16. Scala development
17. Instagram API
18. Adobe Premiere
19. Machine learning
20. AngularJS development
From a Developers’ Point of View

51. From a Business Point of View
More Solutions are being built around it
Gradual Acceptance World wide

52. Can I start a blockchain
Technology or own a currency?

53. YES!!!

54. Blockchain/Currency To Dos
Learn CryptoCurrency/BlockChain Programming
Use Community to Nurture Currency
Code for the Long Run
Get Miners OnBoard
Know your Merchants
Global Acceptance is Key
Use AltCoin
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55. “PayPal had these goals of creating a new currency. We failed at that,
and we just created a new payment system. I think Bitcoin has
succeeded on the level of a new currency, but the payment system is
somewhat lacking. It’s very hard to use, and that’s the big challenge
on the Bitcoin side.”
- Peter Thiel, Co-Founder, Paypal
Copyright 2018 Andela
“Had you asked me five years ago, I would just say it was impossible.
Bitcoin and cryptocurrencies solved this problem of coming to a
consensus globally where you don’t trust anybody else.”
- Richard Brown, Executive Architect, IBM
“Bitcoin may be the TCP/IP of money..”
- Paul Buchheim, Creator of GMail, Google

56. Thank You

57. Questions