Blockchain Training | Blockchain Tutorial for Beginners | Blockchain Technology | Edureka

Agenda Current Existing Monetary System What is Blockchain? How can Blockchain and Bitcoin help? Blockchain Concepts Bitcoin Transaction Blockchain Use Cases Blockchain Features Demo – Bitcoin Transaction

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Issues with current Banking Systems Blockchain Training Double Spending Bank transactions are prone to Double spending due to Fake Currencies and Digital Frauds

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Issues with current Banking Systems Standard Transaction Fees JPMorgan Chase, Bank of America and Wells Fargo alone earned more than $6 billion from ATM and overdraft fees in 2015 (SNL Financial and CNNMoney Report) Blockchain Training Trusted Third PartyChandler $100 $98 Joey

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Issues with current Banking Systems Transactions require a lot of time to be Verified and completed causing huge delays. Transaction Delays Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Issues with current Banking Systems US Federal Reserve Reserve Bank of India Banks have become synonymous with crises and crashes due to depression and fractional reserve banking Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. How can Blockchain and Bitcoin help? Following are the ways by which Blockchain and Bitcoins solves these Issues: Issues with centralized banks Blockchain Training Decentralized Power Public Ledger No Double Spending Immutable to Hacks

Copyright © 2017, edureka and/or its affiliates. All rights reserved. How can Blockchain and Bitcoin help? And the best part of using such a cryptocurrency is that the transaction fee is zero or very minimal in comparison with third parties such as banks and digital transfer systems. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain is the technology used in Bitcoin. It is a public distributed database holding encrypted ledgers. Blockchain Overview [ First Block Growing Blockchain Sample Blockchain New Blocks A block is the ‘current’ part of a blockchain which records some or all of the recent transactions, and once completed goes into the blockchain as permanent database. Each time a block gets completed, a new block is generated. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchains are built from 3 technologies: Blockchain Overview Blockchain uses Private Key Cryptography to secure identities and hash functions to make the blockchain immutable P2P machines on the network help in maintaining the consistency of the distributed ledger The program gives the blockchain its protocol based on the requirement Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Public Key Cryptography This approach involves two different keys  One key is purposely kept private, the other is provided to the other party(or often the public)  If you use private key to encrypt then the public key can decrypt  If you use the public key to encrypt then you use the private key to decrypt. This is called asymmetric encryption Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Peer to Peer Network Verified Verified Suppose A finds the transaction: Bobby (B) pays 5 coins to Cindy (C) Node A broadcasts to the peers B and C in the network If the transaction is verified, the peers (here, B & C) forward the transaction to their peers The transactions propagate rapidly across the network Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. P2P Network – Distributed Ledger 10$ 1$ 3$ Bobby Andy=10$ Andy->Bobby 10$ Bobby-> Derby 3$ Derby-> Cindy 1$ Cindy Andy=10$ Andy->Bobby 10$ Bobby-> Derby 3$ Derby-> Cindy 1$ Andy=10$ Andy->Bobby 10$ Bobby-> Derby 3$ Derby-> Cindy 1$ Andy=10$ Andy->Bobby 10$ Bobby-> Derby 3$ Derby-> Cindy 1$ Andy=10$ Andy->Bobby 10$ Bobby-> Derby 3$ Derby-> Cindy 1$ Andy Derby

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Program The Blockchain is the way of implementing any solution/ use case Blockchain is a concept and can be implemented by any language Solidity is the most preferred default for writing programs in Blockchain [ First Block Growing Blockchain Sample Blockchain Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. The first decentralized digital currency Ledger is produced by people using software that solves mathematical problems Created and held electronically in a peer to peer open ledger called the blockchain Uses cryptography to control its creation and management What is Bitcoin? 4 Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Bitcoin Transaction  Let us take a Bitcoin transaction where James wants to transfer 500 BTC to Kevin.  The transaction is a part of the new block that will be validated by miners Lisa and Robert. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Bitcoin Transaction [ First Block Growing Blockchain Sample Blockchain Account Number 1Pos4r9Eesbv8754b… Balance 19K4ejhJW94U0212… 37 1ZOL9470uier2UMb… 42.67 178errbZ81FePNr30… 1342 1Mr3UNPH8H4U24v… 12.005 563 1JoH83jfos03n2490i… 974.65 … … Ledger +500 - 500842 512.005  Every transaction holds details of the transfer of currency from one account to the another.  The balance of any account is not stored explicitly. It is always calculated by adding up all the blockchain transactions ever recorded. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Bitcoin Transaction  Lisa and Robert are miners who use they resources to validate the block containing the transaction. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Bitcoin Transaction  Once the block is validated, money is deducted from James’ account and is transferred to Kevin’s Bitcoin account.  This solves the problem of Double Spending. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Bitcoin Transaction  Finally, Lisa gets 12.5 BTC as incentive which becomes the first transaction for the next block.  The current block becomes a permanent part of the blockchain. 12.5 BTC Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain – Flow Diagram Someone requests a transaction The transaction is broadcast to the P2P network Validation The network of nodes validate the transaction Once verified, the transaction becomes a part of new block for the ledger The new block is then added to the existing blockchain The transaction is complete Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. In any blockchain: ▪ All transactions are logged including information on the time, date, participants and amount of every single transaction ▪ Each node in the network owns a full copy of the blockchain Blockchain Features Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Features Transactions are verified by the Miners after solving complex math puzzles and maintain the ledger The mathematical principle ensures that the nodes automatically and continuously agree to the current state of the ledger and every transaction in it. If anyone attempts to corrupt a transaction, the nodes will not arrive at a consensus and hence will refuse to incorporate the transaction in the blockchain. Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Types  Public: The ledgers are visible to everyone on the internet and anyone can verify and add a block of transactions to the block chain. Examples – Bitcoin, Ethereum, Dash, Factom  Private: All permissions are kept centralized to an organization. Only specific people in the organization to verify and add transaction blocks but everyone on the internet is generally allowed to view. Examples- Multichain, Blockstack  Consortium: Controlled by a consortium of members. Only predefined set of nodes have access to write the data or block. Examples- Ripple and R3 Blockchain Types Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Use Cases ▪ Monetary Aspect is just a tip of the iceberg of blockchain Technology ▪ Blockchain is a ground-breaking technology for which money is merely one of the possible applications Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Use Cases Blockchain Training • Settlements • Change of suppliers • Meter data • Real-time Capacity matching • EV Charging • Peer to peer trading • Demand-side management • Network services • Autonomous network configuration • Self serve maintenance • Asset and inventory tracking • Cross asset/industry data sharing • Eligibility for social tariffs • Safety authorization and permit to work • Fraud Detection • Loyalty Scheme

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Demo Problem Statement We will implement a digital Transaction between Different Bitcoin Wallets. The following needs to be achieved: 1. Setting a Desktop wallet using JAXX. 2. Setting an Online Bitcoin Wallet using Blockchain. 3. Initiate a Transaction between Blockchain and JAXX. 4. Verify the transaction Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Blockchain Demo – Bitcoin Transaction Specify the Private Key of the Receiver. 1 Specify the Bitcoins that need to be transferred. 2 Blockchain Training

Copyright © 2017, edureka and/or its affiliates. All rights reserved. Session In A Minute Current Banking System Blockchain Concepts The Bitcoin Story Blockchain Features Blockchain Use Cases Demo – Bitcoin Transaction Blockchain Training

Blockchain Training | Blockchain Tutorial for Beginners | Blockchain Technology | Edureka

Blockchain Training | Blockchain Tutorial for Beginners | Blockchain Technology | Edureka

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Blockchain Training | Blockchain Tutorial for Beginners | Blockchain Technology | Edureka