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
BlockChain Applications Globally
Ethereum - What is Ethereum
Origin of Ethereum
Components within Ethereum
What makes it better
Concerns & Issues of BlockChain
Why should I Care?
Can I start a blockchain or own a cryptocurrency ?
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
9. Blockchain is the digital and
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
11. How does the BlockChain work?
2.Transaction is broadcasted over
the P2P Network encrypted.
3.Miners rush to validate
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
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
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.
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
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
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
- Fundraiser, EOS
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
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
27. Types of BlockChain
Access permissions are tightly
controlled, with rights to read or
modify the blockchain restricted to
Permission to read this blockchain
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
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
What’s the difference?
31. How many cryptocurrencies are out
Officially there more than 1,300 cryptocurrencies (but BitCoin is King)
Nearest challenger to the bitcoin’s technology and coin is Ethereum
32. Top CryptoCurrencies as at June 19, 2018
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
MedRec – An MIT project involving blockchain electronic medical records designed to manage
authentication, confidentiality and data sharing.
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.”
Loyyal – Powered by blockchain and smart contract technology, this loyalty and rewards platform
creates more customized programs that even allow for multi-branded rewards.
34. BlockChain Applications Globally - contd
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.
Transport and Tourism
Guts – A transparent ticketing ecosystem that uses blockchain technology to eliminate ticket fraud
and the secondary ticket market.
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.
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-
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
39. Components within Ethereum
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.
42. What are Smart
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
It is completely automated, verified by
many computers, and can be used to
complement or even replace a legal
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.
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
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
47. Blockchain Concerns
Ban - Some countries have outrightly banned the use of blockchain
Expensive - To run a blockchain or be part of it requires tremendous
amount of resources. Network, Power and Miners are required at a
Bubble Burst - The technology being overhyped and eventually ‘burst’.
Volatility - The currencies are highly volatile. Its not for the faint of
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
50. Top 20 fastest growing skills, Q1 , 2018
9.Microsoft Power BI
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
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
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