Chapter 01 Note

Block Chain Foundation
Agenda
 What is Blockchain
 Cryptocurrency and Blockchain
 Why Use Blockchain?
 Decentralized Networks and Ledgers
 Types of Blockchain
 How Blocks Are Created
 Cryptography and Hashing
 Mining a Block
 Types of Consensus
 Blockchain 2.0 and Ethereum
 Blockchain Use Cases
 Blockchain Adoption
What is Blockchain?
blockchain is an immutable record, or ledger
the ledger is often used to track and manage asset
ownership, however blockchain can be a simple record
keeping device for any and all kinds of data – whether
that data relates to asset ownership or not.
Key Components of Block Chain
 Ledgers:a ledger, a record keeping device which allows the keepers of a ledger to
tell a story. This story usually revolves around the ownership and history of
ownership of assets, although ledgers can be used to record just about any type of
data imaginable
 Cryptography:the study of how to pass information back and forth in the
presence of adversaries, bad actors, or simply audiences with no need to know.
 As long as there have been two or more people on Earth who wished to keep a
secret from someone else, there has been cryptography.
 In blockchain we use cryptography to protect anonymity, to provide ledger
immutability, and to validate claims that people make against assets tracked and
managed on the blockchain.
 peer-to peer network architectures:a peer-to-peer (P2P) network architectures
in the mix increases redundancy and fault tolerance by removing single points of
failure commonly found in typical client / server network architectures.
 Group Consensus:A consensus algorithm is a procedure through which all the
peers of the Blockchain network reach a common agreement about the
present state of the distributed ledger
 Immutability ; Blockchains provide a digital immutable ledger that is widely
distributed and peer-validated. It is critically important to note that a Blockchain
does not require currency to function properly and most enterpriselevel Blockchain
applications require no special currency, coin, or token.
 Trustlessness:Blockchains are important because they provide a safe and secure
way for people to make any type of transaction without having to trust the other
party. This concept in blockchain is known as “trustlessness”. as long as each
participant in a transaction can trust in the accuracy and integrity of the ledger
there is no additional requirement for trust between them
 Event tracking system:Blockchain can also be used as an event tracking system
where announcements mark the occurrence of significant events and those events
can be made actionable through the use of Smart Contracts/ Chaincode; software
programmed to respond to certain types of these events
Assets and Blockchain
Assets are
 key component:Assets are a key component of any
blockchain solution
 Items:Assets are simply the items that we’re keeping
records about, the items that ‘matter’ in the context of a
given solution or use case.
 record of ownership:Assets can be defined as anything
that requires a record of ownership. This can be
monetary, non-monetary, or just information, like
health records, tickets to an event, an auto title, or a
patent.
Blockchain History
 The story of blockchain begins with a whitepaper published by an
anonymous author a decade ago. Blockchain began as an idea
documented by Satoshi Nakamoto. The ideas outlined in this whitepaper
lead to the world's first and largest Blockchain – Bitcoin
 2009 - First Bitcoin Block Created.

 2010 - Satoshi Disappears in December – Date of last public post.
 2015 - Ethereum and Hyperledger both go live.
 2018 – Demand for blockchain increases, 14 Open Jobs for every
blockchain developer.
 2019 - Walmart requires produce suppliers to be using a blockchain
solution.
 2021 - Dubai hosts all government operations and record-keeping
operations on blockchain as part of the Smart Dubai 2021 initiative.
Cryptocurrency
Bitcoin is a cryptocurrency that keeps its users highly
anonymous through public key cryptography and
cryptographic hashing.
Types of cryptography
Public key cryptography: In public key cryptography
users store their bitcoin in a digital wallet. This wallet
contains the account’s private key which is used to sign
all transactions from that account. Any transactions
presented by that account will be verified by the network
using the corresponding public key for the account.
Cryptographic hashing:A cryptographic hash is a
digest or digital fingerprints of a certain amount of
data. In cryptographic hash functions, the transactions
are taken as an input and run through a hashing
algorithm which gives an output of a fixed size.

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Block Chain Foundation

 2009 - First Bitcoin Block Created.

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