Blockchain for Beginners

1. Blockchain Introduction

2. What is Blockchain
 It is a Open source platform for distributed database.
 It is a digital ledger its communication horizontal scaling(peer to peer network).
 The data are high secured and it has a built-in robustness.
 It is storing blocks of information that are identical across its network.
Transparency:
If any transaction comes from a node, the transaction will be visible across all other
nodes with in the network.
Immutability:
Each transaction will be identified with a unique hashcode, any modification done to
the existing transaction results in a new transaction block.
Geneious Block:
It contain Credentials and amount of the transaction.
Data Dir : It contain all the transaction details.
 Example:
 Blockchain Technology is like the Internet.
 Ethereum, Hyperledger , R3 Corda Platform are likes Facebook, Google etc…

3.  There are two Types of Blockchain
 Public Blockchain.
 Private Blockchain.
 Public Blockchain:
 A public Blockchain network or permission less Blockchain network is completely open-ended and anyone willing to
participate in this kind of network can participate without any permission. This is the major and only difference between
public and private Blockchain network
 All the list of transactions are able to see in blockchain network.
 It is made computationally difficult to add a block to prevent attacks.
 More secured as compared to Private Network , but Low privacy.
Example : Bitcoin, is the most famous example of Public Network.
 Private Blockchain :
 A Private Blockchain Network requires an invitation to participate in the network. The invitation must be validated either
by network starter or by the rules/conditions placed by the network starter.
 It will work based on our consensus algorithm is in smart contract or chaincode.
 It can choose other methods to add blocks as they can trust the miners using contract etc..
 Increased privacy and Less secured as compared to public network.
Example : Hyperledger Fabric is an example of a permissioned network

4. List of Platform used in Blockchain
 Bitcoin
 Ethereum
 Hyperledger
 R3 Corda
 Eris
 Ripple Consensus Network
 Bigchain DB
 Symbiont Distributed ledger
 The detail explained in the slide number to .

5. How it is working
 It is form a peer to peer network .
 In Bunch of data’s is form as block and its named as unique SIGNATURE called as
signature that will connect with next block.
 Each block is build on top of the recent block and use its previous block’s content as
signature.
 Each block have its own signature that is greater then the previous block and it will be
validate by Miners.
Block 0
SIGNATURE1
SIGNATURE 1
Block 1
SIGNATURE 2
SIGNATURE N-1
Block N
SIGNATURE N

7. Key Features
 Permission and Permission less ledger.
 High secured data and robust.
 Based on the consensus construct the transaction.
 Avoid Third party system.
 Support Bit coin and Cryptocurrency.
 High quality data are Stored in Block.
 Transparency and immutability.
 Avoid third Party system and transaction costs is low.
 Horizontal scaling methodology.

8. Benefits for Blockchian
 Disintermediation & trustless exchange
Two parties are able to make an exchange without the oversight or intermediation of
a third party, strongly reducing or even eliminating counterparty risk.
 Empowered users
Users are in control of all their information and transactions.
 High quality data
Blockchain data is complete, consistent, timely, accurate, and widely available.
 Durability, reliability, and longevity
Due to the decentralized networks, blockchain does not have a central point of
failure and is better able to withstand malicious attacks.
 Process integrity
Users can trust that transactions will be executed exactly as the protocol commands
removing the need for a trusted third party.
 Transparency and immutability
Changes to public blockchains are publicly viewable by all parties creating
transparency, and all transactions are immutable, meaning they cannot be altered or
deleted.

9.  Ecosystem simplification
With all transactions being added to a single public ledger, it reduces the clutter and
complications of multiple ledgers.
 Faster transactions
Interbank transactions can potentially take days for clearing and final settlement,
especially outside of working hours. Blockchain transactions can reduce transaction
times to minutes and are processed 24/7.
 Lower transaction costs
By eliminating third party intermediaries and overhead costs for exchanging assets,
blockchains have the potential to greatly reduce transaction fees.

10. Where we will use Blockchain
 We can use both Financial Industry and Non Financial Industry the details as
below.
 Financial Industry:
 Asset Management: Trade Processing and Settlement.
 Insurance: Claims processing.
 Payments: Cross-Border Payments.
 Supply Chain Management.
 Syndicate Lending.

12.  Non Financial Industry:
 Public value/ community
 Medical
 Transport and Vehicle
 Supply Chain Management.
 Birth, wedding, Passports and death certificates
 Personal Identification.

13. Bitcoin
 The starting of the bitcoin dates back to November 2008, when a thesis had been
posted by Nakamoto on a US mailing list where the cryptographers share or exchange
information. The thesis titled “Bitcoin: A peer-to-peer electronic cash system”, presented
the following characteristics of this protocol:
 Enables transaction directly with no need of any trusted third party
 Enables the non-reversible transactions
 Decreases credit cost in minor casual transactions
 Decreases transaction fees
 Prevents double-spending
 Bitcoins are virtual currency, also called cryptocurrency. These are distributed while
exploring the value in the data managed by software. The start of 2016 witnessed the
issuance of around 15.26 million BTC, equivalent to around 7 billion US Dollars. Major
technologies that make Bitcoin include hash, digital signature, public-key cryptography,
P2P and Proof of Work. This blend has developed a mechanism that prevents duplication
of payments and data falsification, additionally a mechanism that prevents malicious
users, which are critical for the operating system like the one for the electronic money,
having no central authority.

14. Ethereum
 Ethereum is a public, open-source and block chain oriented distributed
computing protocol that features smart contracts (scripting) functionality.
The protocol has provided a decentralized virtual machine called the
Ethereum Virtual Machine (EVM), which carried out Turning-complete
scripts by using a global network of public nodes and the token called
ether, also referred to as gas. Gas is used for preventing the spam on
networks and allocating the resources in proportion to the incentive
provided by the request. Bloomberg explains Ethereum as shared software
that is used by all; however, is tamperproof. Ethereum is also used as a
protocol for decentralized applications, smart contracts and decentralized
autonomous organizations, with a number of functioning applications
developed on it by March 2016, New York Times says.

15. Hyperledger
 Hyperledger is the open source blockchain platform, began in 2015 by the
Linux Foundation, in an effort to support the blockchain-based distributed
ledgers. The protocol focuses ledgers developed to support international
business transactions, catering leading financial, technological and supply
chain businesses, with the objective of improving a lot of performance and
reliability aspects. The project emphasizes on making collaborative efforts
for making open standards and protocols, by offering a modular framework
that backs various components for diverse uses, including a range of
blockchains having their own storage and consensus models, and the
services for access control, contracts and identity.

16. R3 Corda
 Corda by the Company R3 is the distributed ledger protocol that has been
developed from the ground up for recording, supervising and synchronizing
the financial agreements among regulated financial institutions. It is, by
great deal, stimulated by, and captures the advantages of blockchain
systems, with no design choices that turn blockchains unsuitable for a lot of
banking scenarios. Corda’s design came up as a result of heavy analysis
and prototyping with team members. It is now an open sourced protocol
since the code matured further.

17. Eris
 A software that allows anyone to create their own secure, low-cost and run
anywhere application using Blockchain and smart contract technology.
Communities, government and anybody else can use smart contracts to
automate their business with Eris.
 Eris is free software that allows anyone to build their own secure, low-cost, run-
anywhere applications using blockchain and smart contract technology.
Features
 Services: Things that you turn on and off
 Chains: Develop permissioned chains
 Contracts: There is a smart contract tool chain in Eris
 Actions: Every action is step by step.
For more detail : erisindustries.com

18. Ripple Consensus Network
 The Ripple Transaction Protocol (RTXP), issued in 2012, has been developed
upon an open-source distributed consensus ledger, Internet protocol, and
native currency termed as XRP (ripples). Ripple enables instant, safe and
almost free global financial transactions of any scale without any
chargeback. The protocol is embraced being able to support tokens
presenting cryptocurrency, fiat currency, commodity and any other value
unit like mobile minutes, frequent flier miles etc. By the end of 2017, Ripple is
expected to be the third-biggest cryptocurrency in terms of market
capitalization, after the bitcoin and ethereum.

19. BigchainDB
 BigchainDB is attempting to do for databases what Bitcoin's blockchain did for
ledgers, enabling both developers and enterprise to deploy blockchain proof-of-
concepts, platforms and applications using the scalable blockchain database it
has developed. This database is capable of one million writes per second
throughput, storing petabytes of data and sub-second latency.
 Bruce Pon, Founder/CEO BigchainDB and ascribe.io, said: ‘BigchainDB was built on
top of an enterprise-grade distributed DB, from which BigchainDB inherits high
throughput, high capacity, a full-featured NoSQL query language, efficient
querying, and pre-missioning. Nodes can be added to increase throughput and
capacity.’
 To date, it has raised a total of $5.6 million in two rounds from three investors, with
the most recent raising $3.37m.

20. Symbiont Distributed ledger
 This protocol was announced in October 2016 as a software development
kit for the Assembly, which is the permitted distributed ledger part of
Symbiont’s smart contracts system. Assembly is considered as the first
distributed ledger suitable for institutional finance. It is a greatly secure, high
performing Byzantine fault-tolerant distributed ledger, which can process a
sustained 80,000 transactions every second in a local multi-node network.
As stated by Co-founder of Symbiont, decentralized systems should no
longer be slow and with Assembly, it has been fulfilled.

21. Reference
 Ethereum: http://www.ethdocs.org/en/latest/
 Hyperledger Fabric : https://hyperledger-fabric.readthedocs.io/en/latest/
 R3 Corda : https://www.corda.net/
 Eris : https://erisindustries.com and https://docs.corda.net/
 BigchainDB : https://www.bigchaindb.com
 For More details : Join the slack and form for the blockchain open source
platform.