SlideShare ist ein Scribd-Unternehmen logo
1 von 31
Blockchain: Bitcoin and Beyond:
Move from Centralized to
Decentralized Trusted Framework
Sanjeev Verma
BREAKTHROUGH
25 years ago a breakthrough
technology that connected people
Connected people around the world,
foundation for modern growth.
Today the Internet gives a new
breakthrough-BLOCKCHAIN
Changes the way economy & businesses
work
Distributed Consensus without a
centralized Trust Entity.
BNP Paribas: Blockchain is a Disruptive Invention
‘Like The Steam or Combustion Engine’
Problem: Dependency on a Single
Trusted Entity
• Trust in Digital Economy is Broken:
– We depend on Email Server ( like GMAIL) for
secure delivery of our emails.
– Social network like Facebook to broadcast our life
events to our loved ones.
– CA for our Digital Certificates...
• We are living our life precariously by relying
on a Third Party for the security and privacy of
our digital assets.
Solution: Move Towards Decentralized
Trusted Framework
• Solution:
– Decentralized Trusted Framework instead of a Single
Trusted Entity.
• Bitcoin is the first Cryptocurrency that gave a Trusted
solution using Blockchain ( based on 2009 paper).
What is Money?
• Money is means for exchanging goods and
services & has 4 properties
– Divisible, Durable, Fungible and Verifiable.
• Bitcoin like other Fiat Currency like US $ is
based on trust.
• Bitcoin unlike US $ is deflationary since there
can be a maximum of 21 Millions Bitcoins in
Bitcoin network ( by year 2140).
Requirements of a Trusted
Cryptocurrency system
• Requirements of a Trusted Cryptocurrency
network:
– Verification of the entity initiating transaction.
– Trusted Ownership changes.
– Transaction ordering to prevent fraud ( double
spend).
Note
SignatureTo
From Amount
From Signature To Amount
RFloxXpoYC z0D8Pm9ITT z4ZFAMEl0i 300
z4ZFAMEl0i 04GNav84TI CHRouGK9WN 50
z4ZFAMEl0i fBC5cV0edM MlAClZmSX6 100
CHRouGK9WN mG6VnlKrQL MlAClZmSX6 200
... ... ... ...
#1 Signature Verification
#2 Trusted Ownership Changes
This pics taken from iponderablethings.com
#3 Transactions Ordering to prevent Double Spend
Double Spend problem
• Alice ( consumer) sends
cryptocurrency to Bob (
merchant to buy a product.
• Alice Waits for Bob to ship the
product.
• Alice conducts another
transaction referring the same
input to himself/herself.
• Due to propagation delay,
second transaction go
through. Bob ships the
product and does not get his
money too!
Bitcoin was the first cryptocurrency to address this problem using a
mechanism—now popularly known as Blockchain.
What is Blockchain?
• Blockchain is a decentralized public ledger
– Public Key is your A/C #
– Private Key your key to get access
– Entries verified by distributed computing entities
(called miners)
This pics taken from financialexpress.com
Miners work on unconfirmed transactions
and packages them into a Block.
This pics taken from iponderablethings.com
Nonce is just a solution to a puzzle
e.g. Pick a number such that the hash of all the blocks
content has 5 leading zeros.
Last Block
Nonce
Metadata
Signature
Amount
To
From
Tx Id
Block Id
10^8 Gig hashes to solve a single Block.
How a Block is Generated?
Blockchain Blocks
Blocks are cryptographically linked together: A Block can’t be solved
until previous block is solved
Occasionally there could be more than one block solved at a time:
In Bitcoin Network it takes on average 10 minutes to solve a Block.
Bitcoin Network finally stabilizes to a single
chain that is trusted by everyone in the
network.
How Blockchain addresses the issue of double spending?
Mathematical Race starts
This pics taken from iponderablethings.com
You need 50 % of the Computing Power to Break the System!
Blockchain Advantages
• Two Main Characteristics
– Distributed Consensus
• Past and Present events involving digital assets can be
verified by anyone by looking at Blockchain at any time.
– Anonymity
• Use of public cryptography ensures privacy of the
digital assets.
Applications of Blockchain
• Monetary Aspect is the tip of the iceberg-
Blockchain is ground breaking technology:
– Financial Applications
• Stock Exchange, Insurance,
– Non-Financial Applications
• Notary, Proof of Existence of Legal Documents, IoT,
Distributed Storage,
• Escrow Service
What is Smart Contract?
• Computer Programs that enforce the terms of
a contact:
– Self Enforceable
– Transparent
– Faster
– Cheaper
Smart Contract Example
Example:
Smart Contract Betting
Escrow Service
BET
49 ERS Wins
2
11
Bob bets
on
Alice bets
on 3
Smart Property
• Smart Property is a physical property whose
owner is controlled by Blockchain using Smart
Contracts
– It also includes non-physical properties such as
shares in a company or access to a remote
computer.
– Examples include Cars, Houses, Diamonds etc.
Blockchain based AirBnB service
• Smart Property can be used to implement a Blockchain-based AirBnB service- From
Brokerage Service to Escrow service
Some Other Applications
• Decentralized Proof of Existence of Legal Documents:
– Cryptographic Hash or fingerprint of legal documents can
be stored in the Blockchain.
• Decentralized IoT
– Current implementation is based on a centralized hub or
broker.
– IBM’s ADEPT uses Blockchain as a general ledger to keep
secure messages exchanged between IoT devices.
– Filament a start-up provides a decentralized Software stack
that stores the digital identities of the IoT devices in a
Blockchain.
Blockchain based Peer-to-Peer Implementations of IoT
Conclusion
• Blockchain is a disruptive technology
– Distributed Consensus and Anonymity are its two
main characteristics.
– Finding newer applications in both Financial and Non-
Financial space.
– A new term Fintech has been coined to describe its
applications in financial space.
• Still has challenges in terms of scalability, govt
regulations and behavioral change in trade
without involving third party.
• https://www.youtube.com/watch?v=YIVAluSL9SU
The Emerging Technology Hype Cycle-2015
BlockchainIntro.com

Weitere ähnliche Inhalte

Was ist angesagt?

170321 cebit blockchain summit frank bolten
170321 cebit blockchain summit frank bolten170321 cebit blockchain summit frank bolten
170321 cebit blockchain summit frank boltenFrank Bolten
 
Blockchain, smart contracts and use cases for the Legal Hackers
Blockchain, smart contracts and use cases for the Legal HackersBlockchain, smart contracts and use cases for the Legal Hackers
Blockchain, smart contracts and use cases for the Legal HackersKoen Vingerhoets
 
20170620 MEETUP intro to blockchain and smart contracts (1)
20170620 MEETUP intro to blockchain and smart contracts (1)20170620 MEETUP intro to blockchain and smart contracts (1)
20170620 MEETUP intro to blockchain and smart contracts (1)Brussels Legal Hackers
 
Blockchain and crypto presentation
Blockchain and crypto presentationBlockchain and crypto presentation
Blockchain and crypto presentationwwilliams2010
 
Blockchain for Land Records and Real Estate
Blockchain for Land Records and Real EstateBlockchain for Land Records and Real Estate
Blockchain for Land Records and Real EstateJohn Mirkovic
 
Dgw birch eris_presentation
Dgw birch eris_presentationDgw birch eris_presentation
Dgw birch eris_presentationPreston J. Byrne
 
Bitcoin Sharing session @ Stanford CEO
Bitcoin Sharing session @ Stanford CEOBitcoin Sharing session @ Stanford CEO
Bitcoin Sharing session @ Stanford CEOTom Ding
 
Hiberus Experience - Fundamentos de Blockchain
Hiberus Experience - Fundamentos de BlockchainHiberus Experience - Fundamentos de Blockchain
Hiberus Experience - Fundamentos de BlockchainHiberus Tecnología
 
Demystifying Blockchains
Demystifying BlockchainsDemystifying Blockchains
Demystifying Blockchains_hd
 
The Studio On Air : blockchain & AI
The Studio On Air : blockchain & AIThe Studio On Air : blockchain & AI
The Studio On Air : blockchain & AIKoen Vingerhoets
 
Blockchain and Financial Services: Everything could be different - APEC
Blockchain and Financial Services:Everything could be different - APECBlockchain and Financial Services:Everything could be different - APEC
Blockchain and Financial Services: Everything could be different - APECMark Mueller-Eberstein
 
Blockchain and the Real Estate Life Cycle
Blockchain and the Real Estate Life CycleBlockchain and the Real Estate Life Cycle
Blockchain and the Real Estate Life CycleAchim Jedelsky
 
the age of cryptocurrency at Devoxx Morocco
the age of cryptocurrency at Devoxx  Moroccothe age of cryptocurrency at Devoxx  Morocco
the age of cryptocurrency at Devoxx MoroccoBellaj Badr
 
Blockchain Finance
Blockchain FinanceBlockchain Finance
Blockchain Financermsams
 
Eris Industries - American Banker presentation deck.
Eris Industries - American Banker presentation deck. Eris Industries - American Banker presentation deck.
Eris Industries - American Banker presentation deck. Preston Byrne
 
Exploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging TrendsExploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging TrendsAmazon Web Services
 
Blockchain and Accounting-Auditing v1
Blockchain and Accounting-Auditing v1Blockchain and Accounting-Auditing v1
Blockchain and Accounting-Auditing v1Jaiveer Singh
 
Introduction to Blockchain
Introduction to BlockchainIntroduction to Blockchain
Introduction to BlockchainJordan Harris
 
Blockchain Essentials - Harnessing the Technology for Banking Industry
Blockchain Essentials - Harnessing the Technology for Banking IndustryBlockchain Essentials - Harnessing the Technology for Banking Industry
Blockchain Essentials - Harnessing the Technology for Banking IndustryGoutama Bachtiar
 

Was ist angesagt? (20)

170321 cebit blockchain summit frank bolten
170321 cebit blockchain summit frank bolten170321 cebit blockchain summit frank bolten
170321 cebit blockchain summit frank bolten
 
Blockchain, smart contracts and use cases for the Legal Hackers
Blockchain, smart contracts and use cases for the Legal HackersBlockchain, smart contracts and use cases for the Legal Hackers
Blockchain, smart contracts and use cases for the Legal Hackers
 
20170620 MEETUP intro to blockchain and smart contracts (1)
20170620 MEETUP intro to blockchain and smart contracts (1)20170620 MEETUP intro to blockchain and smart contracts (1)
20170620 MEETUP intro to blockchain and smart contracts (1)
 
Blockchain and crypto presentation
Blockchain and crypto presentationBlockchain and crypto presentation
Blockchain and crypto presentation
 
Blockchain for Land Records and Real Estate
Blockchain for Land Records and Real EstateBlockchain for Land Records and Real Estate
Blockchain for Land Records and Real Estate
 
Dgw birch eris_presentation
Dgw birch eris_presentationDgw birch eris_presentation
Dgw birch eris_presentation
 
Bitcoin Sharing session @ Stanford CEO
Bitcoin Sharing session @ Stanford CEOBitcoin Sharing session @ Stanford CEO
Bitcoin Sharing session @ Stanford CEO
 
Hiberus Experience - Fundamentos de Blockchain
Hiberus Experience - Fundamentos de BlockchainHiberus Experience - Fundamentos de Blockchain
Hiberus Experience - Fundamentos de Blockchain
 
Demystifying Blockchains
Demystifying BlockchainsDemystifying Blockchains
Demystifying Blockchains
 
The Studio On Air : blockchain & AI
The Studio On Air : blockchain & AIThe Studio On Air : blockchain & AI
The Studio On Air : blockchain & AI
 
Blockchain and Financial Services: Everything could be different - APEC
Blockchain and Financial Services:Everything could be different - APECBlockchain and Financial Services:Everything could be different - APEC
Blockchain and Financial Services: Everything could be different - APEC
 
Blockchain and the Real Estate Life Cycle
Blockchain and the Real Estate Life CycleBlockchain and the Real Estate Life Cycle
Blockchain and the Real Estate Life Cycle
 
the age of cryptocurrency at Devoxx Morocco
the age of cryptocurrency at Devoxx  Moroccothe age of cryptocurrency at Devoxx  Morocco
the age of cryptocurrency at Devoxx Morocco
 
Blockchain Finance
Blockchain FinanceBlockchain Finance
Blockchain Finance
 
Eris Industries - American Banker presentation deck.
Eris Industries - American Banker presentation deck. Eris Industries - American Banker presentation deck.
Eris Industries - American Banker presentation deck.
 
Exploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging TrendsExploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging Trends
 
Blockchain and Accounting-Auditing v1
Blockchain and Accounting-Auditing v1Blockchain and Accounting-Auditing v1
Blockchain and Accounting-Auditing v1
 
Introduction to Blockchain
Introduction to BlockchainIntroduction to Blockchain
Introduction to Blockchain
 
Blockchain Essentials - Harnessing the Technology for Banking Industry
Blockchain Essentials - Harnessing the Technology for Banking IndustryBlockchain Essentials - Harnessing the Technology for Banking Industry
Blockchain Essentials - Harnessing the Technology for Banking Industry
 
Blockchain and Real Estate
Blockchain and Real EstateBlockchain and Real Estate
Blockchain and Real Estate
 

Andere mochten auch

GlobalPlatform_Premium_Content_WhitePaper2015
GlobalPlatform_Premium_Content_WhitePaper2015GlobalPlatform_Premium_Content_WhitePaper2015
GlobalPlatform_Premium_Content_WhitePaper2015Sanjeev Verma, PhD
 
Bitcoin as an Emerging Technology Written Report
Bitcoin as an Emerging Technology Written ReportBitcoin as an Emerging Technology Written Report
Bitcoin as an Emerging Technology Written ReportShane Hickey
 
Elastos Intro
Elastos IntroElastos Intro
Elastos IntroRong Chen
 
Omni chain presentation - DBS Blockchain Hackathon
Omni chain presentation - DBS Blockchain HackathonOmni chain presentation - DBS Blockchain Hackathon
Omni chain presentation - DBS Blockchain HackathonTaulant Ramabaja
 
The Rational Behind Implementing an Open Source OS for Universal Apps
The Rational Behind Implementing an Open Source OS for Universal AppsThe Rational Behind Implementing an Open Source OS for Universal Apps
The Rational Behind Implementing an Open Source OS for Universal AppsRong Chen
 
How blockchain will defend iot
How blockchain will defend iotHow blockchain will defend iot
How blockchain will defend iotHitesh Malviya
 
Blockchain As An Enabler_16 July 2016_David Lee_Final
Blockchain As An Enabler_16 July 2016_David Lee_FinalBlockchain As An Enabler_16 July 2016_David Lee_Final
Blockchain As An Enabler_16 July 2016_David Lee_FinalDavid Lee Kuo Chuen 李国权
 
Logic of blockchain and quantum computing on ibm cloud platform
Logic of blockchain and quantum computing on ibm cloud platformLogic of blockchain and quantum computing on ibm cloud platform
Logic of blockchain and quantum computing on ibm cloud platformTsuyoshi Hirayama
 
IoT+Blockchain & Decentralized Apps
IoT+Blockchain & Decentralized AppsIoT+Blockchain & Decentralized Apps
IoT+Blockchain & Decentralized AppsRong Chen
 
IoT Panel- Cisco and Intel
IoT Panel- Cisco and Intel IoT Panel- Cisco and Intel
IoT Panel- Cisco and Intel Bessie Wang
 
Watson iot blockchain api concept 20160728
Watson iot blockchain api concept 20160728Watson iot blockchain api concept 20160728
Watson iot blockchain api concept 20160728Tsuyoshi Hirayama
 
Security Issues of IoT with Fog
Security Issues of IoT with FogSecurity Issues of IoT with Fog
Security Issues of IoT with FogAchu Anna
 
Drones and Fog Computing - New Frontiers of IoT and Digital Transformation -...
Drones and Fog Computing  - New Frontiers of IoT and Digital Transformation -...Drones and Fog Computing  - New Frontiers of IoT and Digital Transformation -...
Drones and Fog Computing - New Frontiers of IoT and Digital Transformation -...Biren Gandhi
 

Andere mochten auch (20)

BlockchainPaper
BlockchainPaperBlockchainPaper
BlockchainPaper
 
Basics of the Web Platform
Basics of the Web PlatformBasics of the Web Platform
Basics of the Web Platform
 
GlobalPlatform_Premium_Content_WhitePaper2015
GlobalPlatform_Premium_Content_WhitePaper2015GlobalPlatform_Premium_Content_WhitePaper2015
GlobalPlatform_Premium_Content_WhitePaper2015
 
FIDOAlliance
FIDOAllianceFIDOAlliance
FIDOAlliance
 
Bitcoin as an Emerging Technology Written Report
Bitcoin as an Emerging Technology Written ReportBitcoin as an Emerging Technology Written Report
Bitcoin as an Emerging Technology Written Report
 
Elastos Intro
Elastos IntroElastos Intro
Elastos Intro
 
Omni chain presentation - DBS Blockchain Hackathon
Omni chain presentation - DBS Blockchain HackathonOmni chain presentation - DBS Blockchain Hackathon
Omni chain presentation - DBS Blockchain Hackathon
 
The Rational Behind Implementing an Open Source OS for Universal Apps
The Rational Behind Implementing an Open Source OS for Universal AppsThe Rational Behind Implementing an Open Source OS for Universal Apps
The Rational Behind Implementing an Open Source OS for Universal Apps
 
Pub/Sub Messaging
Pub/Sub MessagingPub/Sub Messaging
Pub/Sub Messaging
 
How blockchain will defend iot
How blockchain will defend iotHow blockchain will defend iot
How blockchain will defend iot
 
Blockchain As An Enabler_16 July 2016_David Lee_Final
Blockchain As An Enabler_16 July 2016_David Lee_FinalBlockchain As An Enabler_16 July 2016_David Lee_Final
Blockchain As An Enabler_16 July 2016_David Lee_Final
 
Logic of blockchain and quantum computing on ibm cloud platform
Logic of blockchain and quantum computing on ibm cloud platformLogic of blockchain and quantum computing on ibm cloud platform
Logic of blockchain and quantum computing on ibm cloud platform
 
IoT Key Elements
IoT Key ElementsIoT Key Elements
IoT Key Elements
 
IoT+Blockchain & Decentralized Apps
IoT+Blockchain & Decentralized AppsIoT+Blockchain & Decentralized Apps
IoT+Blockchain & Decentralized Apps
 
IoT Panel- Cisco and Intel
IoT Panel- Cisco and Intel IoT Panel- Cisco and Intel
IoT Panel- Cisco and Intel
 
Watson iot blockchain api concept 20160728
Watson iot blockchain api concept 20160728Watson iot blockchain api concept 20160728
Watson iot blockchain api concept 20160728
 
Security Issues of IoT with Fog
Security Issues of IoT with FogSecurity Issues of IoT with Fog
Security Issues of IoT with Fog
 
Open banking
Open bankingOpen banking
Open banking
 
Drones and Fog Computing - New Frontiers of IoT and Digital Transformation -...
Drones and Fog Computing  - New Frontiers of IoT and Digital Transformation -...Drones and Fog Computing  - New Frontiers of IoT and Digital Transformation -...
Drones and Fog Computing - New Frontiers of IoT and Digital Transformation -...
 
Blockchains in agriculture
Blockchains in agricultureBlockchains in agriculture
Blockchains in agriculture
 

Ähnlich wie BlockchainIntro.com

Blockchain as a new cyber strategy for your business
Blockchain as a new cyber strategy for your businessBlockchain as a new cyber strategy for your business
Blockchain as a new cyber strategy for your businessDavid Joao Vieira Carvalho
 
Blockchain - The truth is in there @ Odisee Alumni event
Blockchain - The truth is in there @ Odisee Alumni eventBlockchain - The truth is in there @ Odisee Alumni event
Blockchain - The truth is in there @ Odisee Alumni eventKoen Vingerhoets
 
Blockchain and Bitcoin
Blockchain and BitcoinBlockchain and Bitcoin
Blockchain and BitcoinM Shamim Iqbal
 
A Primer on Blockchain and its Potential, with a Focus on the GCC
A Primer on Blockchain and its Potential, with a Focus on the GCCA Primer on Blockchain and its Potential, with a Focus on the GCC
A Primer on Blockchain and its Potential, with a Focus on the GCCZeyad T. Al Mudhaf
 
Blockchain & crypto
Blockchain & cryptoBlockchain & crypto
Blockchain & cryptoAtul Mangat
 
An in depth presentation of Cryptocurrency.
An in depth presentation of Cryptocurrency.An in depth presentation of Cryptocurrency.
An in depth presentation of Cryptocurrency.SanjeebSamanta1
 
NYS Forum - Blockchain
NYS Forum - BlockchainNYS Forum - Blockchain
NYS Forum - BlockchainJoel Binn
 
Blockchain-based shared ownership of City Platform Cooperatives
Blockchain-based shared ownership of City Platform CooperativesBlockchain-based shared ownership of City Platform Cooperatives
Blockchain-based shared ownership of City Platform CooperativesDigitalTown, Inc
 
Bitcoin and blockchain basics
Bitcoin and blockchain basicsBitcoin and blockchain basics
Bitcoin and blockchain basicsMichele Pace
 
BlockChain Technology By Deep Akabari.pptx
BlockChain Technology By Deep Akabari.pptxBlockChain Technology By Deep Akabari.pptx
BlockChain Technology By Deep Akabari.pptxDeepAkabari
 
Blockchain Introduction - Canada Nov 2017.pptx
Blockchain Introduction - Canada Nov 2017.pptxBlockchain Introduction - Canada Nov 2017.pptx
Blockchain Introduction - Canada Nov 2017.pptxAntony Welfare
 
Introduction to the World of Cryptocurrency (Summary)
Introduction to the World of Cryptocurrency (Summary)Introduction to the World of Cryptocurrency (Summary)
Introduction to the World of Cryptocurrency (Summary)Syeirabani Hatta
 

Ähnlich wie BlockchainIntro.com (20)

Blockchain as a new cyber strategy for your business
Blockchain as a new cyber strategy for your businessBlockchain as a new cyber strategy for your business
Blockchain as a new cyber strategy for your business
 
Blockchain - The truth is in there @ Odisee Alumni event
Blockchain - The truth is in there @ Odisee Alumni eventBlockchain - The truth is in there @ Odisee Alumni event
Blockchain - The truth is in there @ Odisee Alumni event
 
BLOCKCHAIN
 BLOCKCHAIN BLOCKCHAIN
BLOCKCHAIN
 
Understanding Blockchain
Understanding BlockchainUnderstanding Blockchain
Understanding Blockchain
 
Bitcoin data mining
Bitcoin data miningBitcoin data mining
Bitcoin data mining
 
Blockchain and Bitcoin
Blockchain and BitcoinBlockchain and Bitcoin
Blockchain and Bitcoin
 
A Primer on Blockchain and its Potential, with a Focus on the GCC
A Primer on Blockchain and its Potential, with a Focus on the GCCA Primer on Blockchain and its Potential, with a Focus on the GCC
A Primer on Blockchain and its Potential, with a Focus on the GCC
 
Blockchain & crypto
Blockchain & cryptoBlockchain & crypto
Blockchain & crypto
 
An in depth presentation of Cryptocurrency.
An in depth presentation of Cryptocurrency.An in depth presentation of Cryptocurrency.
An in depth presentation of Cryptocurrency.
 
NYS Forum - Blockchain
NYS Forum - BlockchainNYS Forum - Blockchain
NYS Forum - Blockchain
 
Blockchain-based shared ownership of City Platform Cooperatives
Blockchain-based shared ownership of City Platform CooperativesBlockchain-based shared ownership of City Platform Cooperatives
Blockchain-based shared ownership of City Platform Cooperatives
 
Bitcoin 2.0
Bitcoin 2.0 Bitcoin 2.0
Bitcoin 2.0
 
Bitcoin
BitcoinBitcoin
Bitcoin
 
Blockchain External.pdf
Blockchain External.pdfBlockchain External.pdf
Blockchain External.pdf
 
Bitcoin and blockchain basics
Bitcoin and blockchain basicsBitcoin and blockchain basics
Bitcoin and blockchain basics
 
BlockChain Technology By Deep Akabari.pptx
BlockChain Technology By Deep Akabari.pptxBlockChain Technology By Deep Akabari.pptx
BlockChain Technology By Deep Akabari.pptx
 
Blockchain 101
Blockchain 101Blockchain 101
Blockchain 101
 
Blockchain.pptx
Blockchain.pptxBlockchain.pptx
Blockchain.pptx
 
Blockchain Introduction - Canada Nov 2017.pptx
Blockchain Introduction - Canada Nov 2017.pptxBlockchain Introduction - Canada Nov 2017.pptx
Blockchain Introduction - Canada Nov 2017.pptx
 
Introduction to the World of Cryptocurrency (Summary)
Introduction to the World of Cryptocurrency (Summary)Introduction to the World of Cryptocurrency (Summary)
Introduction to the World of Cryptocurrency (Summary)
 

Mehr von Sanjeev Verma, PhD

Blockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and ApplicationsBlockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and ApplicationsSanjeev Verma, PhD
 
Blockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and ApplicationsBlockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and ApplicationsSanjeev Verma, PhD
 
Evolution Of The Web Platform & Browser Security
Evolution Of The Web Platform & Browser SecurityEvolution Of The Web Platform & Browser Security
Evolution Of The Web Platform & Browser SecuritySanjeev Verma, PhD
 
Blockchain: Bitcoin and Beyond
Blockchain: Bitcoin and BeyondBlockchain: Bitcoin and Beyond
Blockchain: Bitcoin and BeyondSanjeev Verma, PhD
 

Mehr von Sanjeev Verma, PhD (7)

Blockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and ApplicationsBlockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and Applications
 
Blockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and ApplicationsBlockchain Technology: Adoption Challenges, Platform and Applications
Blockchain Technology: Adoption Challenges, Platform and Applications
 
Evolution Of The Web Platform & Browser Security
Evolution Of The Web Platform & Browser SecurityEvolution Of The Web Platform & Browser Security
Evolution Of The Web Platform & Browser Security
 
Blockchain: Bitcoin and Beyond
Blockchain: Bitcoin and BeyondBlockchain: Bitcoin and Beyond
Blockchain: Bitcoin and Beyond
 
12 - Sanjeev Verma_mod2
12 - Sanjeev Verma_mod212 - Sanjeev Verma_mod2
12 - Sanjeev Verma_mod2
 
FinalBlockchainPaper_mod
FinalBlockchainPaper_modFinalBlockchainPaper_mod
FinalBlockchainPaper_mod
 
DRM_Interoperability_Final
DRM_Interoperability_FinalDRM_Interoperability_Final
DRM_Interoperability_Final
 

BlockchainIntro.com

  • 1. Blockchain: Bitcoin and Beyond: Move from Centralized to Decentralized Trusted Framework Sanjeev Verma
  • 2. BREAKTHROUGH 25 years ago a breakthrough technology that connected people Connected people around the world, foundation for modern growth. Today the Internet gives a new breakthrough-BLOCKCHAIN Changes the way economy & businesses work Distributed Consensus without a centralized Trust Entity.
  • 3. BNP Paribas: Blockchain is a Disruptive Invention ‘Like The Steam or Combustion Engine’
  • 4. Problem: Dependency on a Single Trusted Entity • Trust in Digital Economy is Broken: – We depend on Email Server ( like GMAIL) for secure delivery of our emails. – Social network like Facebook to broadcast our life events to our loved ones. – CA for our Digital Certificates... • We are living our life precariously by relying on a Third Party for the security and privacy of our digital assets.
  • 5. Solution: Move Towards Decentralized Trusted Framework • Solution: – Decentralized Trusted Framework instead of a Single Trusted Entity. • Bitcoin is the first Cryptocurrency that gave a Trusted solution using Blockchain ( based on 2009 paper).
  • 6. What is Money? • Money is means for exchanging goods and services & has 4 properties – Divisible, Durable, Fungible and Verifiable. • Bitcoin like other Fiat Currency like US $ is based on trust. • Bitcoin unlike US $ is deflationary since there can be a maximum of 21 Millions Bitcoins in Bitcoin network ( by year 2140).
  • 7. Requirements of a Trusted Cryptocurrency system • Requirements of a Trusted Cryptocurrency network: – Verification of the entity initiating transaction. – Trusted Ownership changes. – Transaction ordering to prevent fraud ( double spend).
  • 8. Note SignatureTo From Amount From Signature To Amount RFloxXpoYC z0D8Pm9ITT z4ZFAMEl0i 300 z4ZFAMEl0i 04GNav84TI CHRouGK9WN 50 z4ZFAMEl0i fBC5cV0edM MlAClZmSX6 100 CHRouGK9WN mG6VnlKrQL MlAClZmSX6 200 ... ... ... ... #1 Signature Verification
  • 9. #2 Trusted Ownership Changes This pics taken from iponderablethings.com
  • 10. #3 Transactions Ordering to prevent Double Spend Double Spend problem • Alice ( consumer) sends cryptocurrency to Bob ( merchant to buy a product. • Alice Waits for Bob to ship the product. • Alice conducts another transaction referring the same input to himself/herself. • Due to propagation delay, second transaction go through. Bob ships the product and does not get his money too! Bitcoin was the first cryptocurrency to address this problem using a mechanism—now popularly known as Blockchain.
  • 11. What is Blockchain? • Blockchain is a decentralized public ledger – Public Key is your A/C # – Private Key your key to get access – Entries verified by distributed computing entities (called miners)
  • 12. This pics taken from financialexpress.com
  • 13. Miners work on unconfirmed transactions and packages them into a Block. This pics taken from iponderablethings.com
  • 14. Nonce is just a solution to a puzzle e.g. Pick a number such that the hash of all the blocks content has 5 leading zeros. Last Block Nonce Metadata Signature Amount To From Tx Id Block Id 10^8 Gig hashes to solve a single Block. How a Block is Generated?
  • 15. Blockchain Blocks Blocks are cryptographically linked together: A Block can’t be solved until previous block is solved
  • 16. Occasionally there could be more than one block solved at a time: In Bitcoin Network it takes on average 10 minutes to solve a Block. Bitcoin Network finally stabilizes to a single chain that is trusted by everyone in the network.
  • 17. How Blockchain addresses the issue of double spending? Mathematical Race starts This pics taken from iponderablethings.com
  • 18. You need 50 % of the Computing Power to Break the System!
  • 19. Blockchain Advantages • Two Main Characteristics – Distributed Consensus • Past and Present events involving digital assets can be verified by anyone by looking at Blockchain at any time. – Anonymity • Use of public cryptography ensures privacy of the digital assets.
  • 20. Applications of Blockchain • Monetary Aspect is the tip of the iceberg- Blockchain is ground breaking technology: – Financial Applications • Stock Exchange, Insurance, – Non-Financial Applications • Notary, Proof of Existence of Legal Documents, IoT, Distributed Storage, • Escrow Service
  • 21.
  • 22. What is Smart Contract? • Computer Programs that enforce the terms of a contact: – Self Enforceable – Transparent – Faster – Cheaper
  • 24. Example: Smart Contract Betting Escrow Service BET 49 ERS Wins 2 11 Bob bets on Alice bets on 3
  • 25. Smart Property • Smart Property is a physical property whose owner is controlled by Blockchain using Smart Contracts – It also includes non-physical properties such as shares in a company or access to a remote computer. – Examples include Cars, Houses, Diamonds etc.
  • 26. Blockchain based AirBnB service • Smart Property can be used to implement a Blockchain-based AirBnB service- From Brokerage Service to Escrow service
  • 27. Some Other Applications • Decentralized Proof of Existence of Legal Documents: – Cryptographic Hash or fingerprint of legal documents can be stored in the Blockchain. • Decentralized IoT – Current implementation is based on a centralized hub or broker. – IBM’s ADEPT uses Blockchain as a general ledger to keep secure messages exchanged between IoT devices. – Filament a start-up provides a decentralized Software stack that stores the digital identities of the IoT devices in a Blockchain.
  • 28. Blockchain based Peer-to-Peer Implementations of IoT
  • 29. Conclusion • Blockchain is a disruptive technology – Distributed Consensus and Anonymity are its two main characteristics. – Finding newer applications in both Financial and Non- Financial space. – A new term Fintech has been coined to describe its applications in financial space. • Still has challenges in terms of scalability, govt regulations and behavioral change in trade without involving third party. • https://www.youtube.com/watch?v=YIVAluSL9SU
  • 30. The Emerging Technology Hype Cycle-2015