Blockchain Technology

Gudla.Shiridi venkata sai

16A51A0555 0

CSE-A
Agenda
• Issues with current banking systems
• How bitcoin solves this problem
• What is blockchain
• About blockhain
• Generations of blockchain
• Cryptocurrency
• Smart contracts
• Blockchain wallet
• Blockchain developers
• Blockchain development
• Blockchain use cases
• Hyper ledger
• Future blockchain
• conclusion 1
Issues with current banking systems
• In present banking system they take the transaction fee.
• And double spending is more problem.
banking system blockchain system

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What is blockchain
•Blockchain is distributed database that maintains a list of records.Each
is called block, and each block contains the history of every block that
came before it. These blocks are linked together using cryptography.
•A blockchain is,”a decentralized public ledger”.Essentially, this means
it is a database that is continually being shared and synchronized
network.
•We can’t manipulate the block data.
•There are more types of blockchain.The most famous blockchain is
bitcoin blockchain.
•It is important to bitcoin and blockchain are not same.

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About blockchain
History :
 in 1991,the first blockchain introduced by scott and haber.
 In 2009,the satoshi nakamoto introduced bitcoin.
 In 2015,the vitalik buterin introduced ethereum.
 In 2017,the IBM introduced hyperledger.
About block:
 Each block contain the history of every block.
 Each block has three characteristics:
1-data
2- hash
3-hash of previous block

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Cont…
• Data: Stores the each and every data in block.It is never
erased and we cannot change.
• Hash: we can treat it is unique. Types: MD5, SHA1, SHA256
• For example, the MD5 hashes of ‘abc’ compared to abC
abc:0bee89b07a248e27c83fc3d5951213c1
abC: 2217c53a2f88ebadd9b3c1a79cde2638
• For protection the blockchain stores the previous hash.it avoid
tamparing of data.

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• If any one want tamper the data in blockchain.

Transactions in blockchain:

Example:

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• Blockchain-flow diagram:

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• Blockchain are built from three technologies

Blockchain uses private key cryptography to Secure

identities and hash functions to make immutable.
P2P machines on network help in maintaining the
Consistency of distributed ledger.
The program gives the blockchain its protocol based
On the requirement.

• In blockchain the hash function and cryptography are major parts in

blockchain and make most secure .

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Cont..
Cryptography:
• Blockchain uses private key cryptography, it involves two different keys,
public and private.
• One key is purposely kept private, the other is provide to other.
• If you use private key to encrypt then public key can decrypt and vice versa.
• This is called asymmetric encryption. The most popular algorithm is
• RSA algorithm.

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P2P(peer to peer):
A p2p network is a very important part of how blockchain works
and why it is so solid and secure.
• In a p2p network, the users utilizes and provides the
foundation of network at same time.
• Each peer is considered as nodes.
• P2p network is different
from traditional client server.

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Cont…
• How digital signature works:

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Crypto mining:
• Crypto mining is peer to peer computer process used to secure and
verify the transactions. Each group of transactions called blocks.
• Blocks are secured by miners.
There are mining protocols . The main protocols are POW and POS
POW(proof of work):
users compete to be first the solutions for math problems. This
reduce the denial of service attacks. Bitcoin use this protocol.
POS(proof of stake):
users mine or validate blocks and are rewarded according to how
many coins they already hold. This mining protocol uses Qtum.

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Cont..
Types of blockchain:
• Public: In this blockchain have ledger visible to everyone on the
internet and anyone can verify and add a block chain.
• Private: private blockchain allow only specific people in the
organization to verify and add transaction blocks but everyone on the
internet is generally allowed to view.
• Consortium: Here, only a group of organization can verify and add
transaction but the ledger can open
or restricted to select groups.

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Generations of blockchain
First generation:
The first blockchain application was for money. It’s amazing
invention where two parties can exchange money quickly, without
third party. The money used in blockchain is cryptocurrency.
Ex: Bitcoin
Second generation:
Second generation blockchain bought the use cases of assets in
general to be maintained by blockchain.
Ex: Ethereum
Third generation:
third generation blockchain are useful for when it comes to
agreement and flow of information.
Ex: Cardano
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Cryptocurrency:

• A cryptocurrency is a digital currency designed to work as

medium of exchange.
• It is uses cryptography to secure the transactions
• They are 1500+ cryptocurrencies are available.
• These are blockchain tokens.
• The most popular cryptos are:
Bitcoin, eather, Ripple, Dash
litcoins ..etc

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Smart contracts:
• Smart contracts are executable that
runs on blockchain network.
These are like notaries in blockchain.
• Smart contracts are developed by
Nick Szabo.
It removes the third parties
For contracts or anything.
Once you create it never be
erased.
It is help to exchange money.
It has properties like:
immutable distributed
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How it works:

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Blockchain wallet:
• A wallet is basically the blockchain
equivalent of bank account.
Features:

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Types:
1)based on location of private keys

2)based on devices& clients

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Desktop wallet physical wallet

Bitcoin clients Hardware wallets

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Blockchain developer
• A developer responsible for developing and optimizing blockchain
protocols, crafting the architecture of block chain systems.
Types of developers:

Core blockchain developers handles Blockchain s/w developer use this

the design architecture of blockchain architecture to create blockchain
applications

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Roles of blockchain core developer

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Roles of blockchain core developer

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Block chain development
• Blockchain profiles in market
blockchain consultant, Blockchain architect, blockchain
developer
Requirements in Blockchain development:

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Cont..
• Blockchain development platforms:

Which language is used to develop blockchain ?

 solidity
 Java scripts ..etc
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Blockchain use cases:

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Hyper ledger:
• Hyper ledger is not a:
cryptocurrency
blockchain
company
• Hyper ledger family of Linux:

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Cont..
What is hyper ledger:

Birth of hyper ledger:

It is started as small project
in 2015.

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How it works:

Projects:

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• How it differs from others

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Future technologies with blockchain
• With Artificial intelligence

• With IOT:

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Cont..

• With virtual reality:

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Conclusion:

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