Brief description on Blockchain, new kid on the block for FinTech. Diving in deep to ensure layman can understand the inside out of technology. Presented at CSI IT 2020 Conference, Mumbai on 14th Oct 2016

1. CSI IT2020 Conference
Blockchain Technology
Joel Divekar
Mumbai
14th Oct 2016

2. What is Blockchain ? (1/2)
Originally called block chain,
is a
distributed transaction database.

3. What is Blockchain ? (2/2)
Secured public ledger,
which maintains every transaction
ever executed in Bitcoin.
With this historical information one can
derive how much value belonged to
each Bitcoin address at any point in
history.

4. What is Bitcoin Address ? (1/2)
A Bitcoin address or address is an
identifier of 26-35 alphanumeric
characters, beginning with 1 or 3.
Two address formats are
P2PKH begins with 1,
1AwCNTFZtuXfurUGo5Bv4n4HGg7xJaOVN3
Newer P2SH begins with 3,
3K98u1WpEZ73CNmQvifcrnyiXrnqRhWNMz

5. What is Bitcoin Address ? (2/2)
Address is like your email address and
to receive payment, you need to share
your address with the payer

6. What are Blocks in Blockchain ? (1/2)
Blocks hold list of valid transactions
Each block includes the hash of previous
block
It is like a chain of blocks from the
genesis block to the current block

7. What are Blocks in Blockchain ? (2/2)
Blockchain is constantly growing as new
completed blocks are added with new
set of recordings
Blocks are added in a linear,
chronological order
It is impossible to modify a block once it
is part of the chain for a while

8. Blockchain can only store Bitcoins
NO ...
A verified transaction can be for
cryptocurrency, contracts, records or
other information

9. The Genesis Block (1/2)
The Genesis block is the first block of
the blockchain
It is a special, as it does not reference
the previous block

10. The Genesis Block (2/2)
The Times 03/Jan/2009 Chancellor on brink of second bailout for banks
GetHash() = 0x000000000019d6689c085ae165831e934ff763ae46a2a6c172b3f1b60a8ce26f
hashMerkleRoot = 0x4a5e1e4baab89f3a32518a88c31bc87f618f76673e2cc77ab2127b7afdeda33b
txNew.vin[0].scriptSig = 486604799 4
0x736B6E616220726F662074756F6C69616220646E6F63657320666F206B6E697262206E6F20726F6C6C65636E61684320393030322F
6E614A2F33302073656D695420656854
txNew.vout[0].nValue = 5000000000
txNew.vout[0].scriptPubKey =
0x5F1DF16B2B704C8A578D0BBAF74D385CDE12C11EE50455F3C438EF4C3FBCF649B6DE611FEAE06279A60939E028A8D65C10B7
3071A6F16719274855FEB0FD8A6704 OP_CHECKSIG
block.nVersion = 1
block.nTime = 1231006505
block.nBits = 0x1d00ffff
block.nNonce = 2083236893
CBlock(hash=000000000019d6, ver=1, hashPrevBlock=00000000000000, hashMerkleRoot=4a5e1e, nTime=1231006505, nBits=1d00ffff,
nNonce=2083236893, vtx=1)
CTransaction(hash=4a5e1e, ver=1, vin.size=1, vout.size=1, nLockTime=0)
CTxIn(COutPoint(000000, -1), coinbase
04ffff001d0104455468652054696d65732030332f4a616e2f32303039204368616e63656c6c6f72206f6e206272696e6b206f66207365636f6e
64206261696c6f757420666f722062616e6b73)
CTxOut(nValue=50.00000000, scriptPubKey=0x5F1DF16B2B704C8A578D0B)
vMerkleTree: 4a5e1e

11. Bitcoin Mining (1/2)
Bitcoin Mining is a process by which
transactions are verified and added to
blockchain and new Bitcoins are
rewarded
Mining process involves compiling
recent transactions into blocks and
solving computationally difficult puzzle

12. Bitcoin Mining (2/2)
First mining participant to solve the
puzzle gets the reward
The block reward is halved every
2,10,000 blocks i.e roughly every 4
years
Currently it is 25 BTC

13. Blockchain flow
Request is made for a transaction
Requested transaction is broadcasted over p2p
network consisting of computers known as nodes
Nodes validates the transaction
Once verified, the transaction is combined with
other transaction to create a new block
New block is then added to the blockchain

14. Advantages of Blockchain
No central authority
Buyer and seller do not need
intermedairy to confidently and securely
transfer value
Maintains Open and Transparent Ledger

15. Fundamental problems solved by Blockchain
Every node maintains updated identical
copy of database and no centralised
database
Distributed peer to peer replicated
database
No single point of failure
Robust database environment

16. Blockchain Projects – Private
Etherem
Hyperledger
Chain
MultiChain
OpenChain

17. Blockchain Projects – What do they mean
Centralise authority, write is controlled
Read access is restricted
No proof of ownership
Technical improvement
- write speed
- access control
- data encryption

18. Thanks
Joel Divekar
Mumbai, India
+91 9920208223
joeldivekar.blogspot.com
www.linkedin.com/in/joeldivekar
www.slideshare.net/JoelDivekar
Consulting / DevOps / Software Development / Training