Blockchain Technology: Theory and Applications

1. Blockchain Technology
Dr. Mohamed Torky
Assistant Professor of Computer Science
Culture & Science City - 6 October City
Arab Academy for Science Technology & Maritime
Transport (AASTMT) – Smart Village

2. Outline
1
• Introduction
2
• What is Blockchain Technology ?
3
• Mining-Based Blockchain (Blockchain 1.0)
4
• Smart Contract-Based Blockchain (Blockchain 2.0)
5
• Blockchain-based Industry Applications

3. Introduction
• Decentralized Authority
• P2P Architecture
• Immutable
• Data is transparent
• Data is Secure and encrypted
• Run as distributed ledger
• Data can be verified using smart contracts
• Centralized Authority
• Client Server Architecture
• Clouds are mutable
• Data can be visible or hidden (no transparency)
• Vulnerable against integrity and DoS attacks.
• Run on traditional database
• Managing cloud data is a big challenge
 Centralized Authority
 Client-Server Architecture
 Support CRUD data handling
 Vulnerable against integrity and SQL
injection attacks
 Are not transparent
1960s, Charles Bachman 1960s, Joseph Carl Robnett Licklider 1991, Stuart Haber and W. Scott Stornetta

4. Introduction
 Blockchain Market Size and Revenue
 The size of the global blockchain market is expected to grow from
$3 billion in 2020 to $39.7 billion by 2025. (Cision PR Newswire, 2020)
 0.5% of the world’s population (around 40 million people) is using
blockchain technology. Within the next 10 years, 80% of the population
will be involved with the blockchain technology in some form. (source:
TechJury.com)
 China is the country that will benefit the most from adopting blockchain
technologies. China is estimated to reap $440.4 billion or a boost of 1.7%
on their GDP in 2030. This is followed by the US, which expects a boost
of $407.2 billion, Germany at $95.3 billion, and the UK at $72.2 billion.
(PricewaterhouseCoopers, 2020)

5. Introduction
 Overall Adoption of Blockchain Technology
 in recent times, Blockchain was one of the most disruptive
technologies for 2020. (comes second to artificial
intelligence and machine learning as the most disruptive
technologies)
 Blockchain can reduce 30% of banks’ infrastructure costs,
and Financial companies can save up to $12 billion a year
from using blockchain. (source: TechJury.com)
 Worldwide spend on blockchain solutions is forecast to reach
$17.9 billion by 2024 and will grow at a compound annual
growth rate (CAGR) of 46.4%. (IDC, 2020)

6. Introduction
 A breif History of Blockchain
 1991: A cryptographically secured chain of time stamped
blocks is described for the first time by Stuart Haber and
W Scott Stornetta
 1998: Computer scientist Nick Szabo works on ‘bit gold’, a
decentralized digital currency. He wanted to extend the
functionality of electronic transaction methods, such as POS
(point of sale: monitor and record all transactions between a
buyer and a seller.), to the digital realm
 2000: Stefan Konst publishes his theory of cryptographic
secured chains, plus ideas for implementation

7. What is Blockchain Technology?

8. What is Blockchain?
 Blockchain is a system of recording
information in a way that makes it difficult
or impossible to change, hack, or cheat the
system.
 A Blockchain is essentially a digital ledger
of transactions that is duplicated and
distributed across a P2P network of
computer systems .

9. What is Blockchain?
 Technically, A Blockchain can be realized
as a growing list of records, called blocks,
which are linked using cryptography.
Each block contains a cryptographic
hash of the previous block, a timestamp,
and transaction data represented as Hash
Tree.

10. What is Blockchain?
Block components:
 Stored Data:
- Transaction date and time.
- Transaction details
- Sender and receiver details
 Block Hash: a reference code for
specifying block’s stamp in the
blockchain
 Block Hash Pointer: a reference
code for specifying the previous
block’s stamp in the blockchain

11. What is Blockchain?
Types of Blockchain

12. Mining-Based Blockchain
(Blockchain 1.0)

13. Mining-based Blockchain
Consensuses
 Bitcoin mining is the process by which bitcoin transactions
are validated digitally on the bitcoin network and added to
the blockchain ledger.
 It is done by solving complex cryptographic hash puzzles
to verify blocks of transactions that are updated on the
decentralized blockchain ledger.
 Solving these puzzles requires powerful computing power
and sophisticated Hardware devices. In return, miners are
rewarded with bitcoin, which is then released into
circulation hence the name is bitcoin mining.

14. How Does Blockchain Works?
A Node A Transaction A Block
A secure Chain
Miners
Consensus
Or
Protocol

15. How Does Blockchain Works?

16. Mining-based Blockchain
Consensuses
Blockchain Users
Puzzle
Y=F(X)
X= ?
X1 X3
X2
Block Signature
Valid Block Signature
Y=F(x1) wrong
Y=F(x2) correct
Y=F(x3) wrong
Send a ward
Valid Signature
Block of
Transactions
Blockchain
𝒀 = 𝑭(𝑿𝟐)
Proof of Work (PoW) Protocol
Transactions

17. Mining-based Blockchain
Consensuses
Energy Consumption
Transaction per Seconds
Transaction Fees
Structure
Cryptocurrency Example

18. Smart Contract-based Blockchain
(Blockchain 2.0)

19. Smart Contract-based Blockchain
 Smart contracts are simply programs
stored on a blockchain that run when
predetermined conditions are met.
 They typically are used to automate the
execution of an agreement so that all
participants can be immediately certain of
the outcome, without any intermediary's
involvement or time loss.

20. Smart Contract-based Blockchain
Smart contracts work by following
simple “if/when…then…” statements
that are written into code on a
blockchain. A network of computers
executes the actions when
predetermined conditions have been
met and verified.
 How Smart contracts Works?

21. Smart Contract-based Blockchain
 Benefits of smart contracts
Speed, efficiency and accuracy
Once a condition is met, the
contract is executed
immediately. Because smart
contracts are digital and
automated
Trust and transparency
Because there’s no third party
involved, and because encrypted
records of transactions are shared
across participants, there’s no need
to question whether information
has been altered for personal
benefit.
Security
Blockchain transaction records
are encrypted, hackers would
have to alter the entire chain
to change a single record.
Savings
Smart contracts remove the need for
intermediaries to handle transactions
and, by extension, their associated time
delays and fees.

22. Blockchain 2.0
and Industry
Applications

23. Aetsoft
Is a software development company helping businesses maximize the
potential with business automation and blockchain solutions. It Custom
blockchain and automation solution development for enterprises
Aetsoft

24. Blockchain
Development
for
Healthcare

25. Healthcare Industry
 Drug supply chain monitoring: Streamline
quantity and quality verification processes
across the pharmaceutical supply chain, based
on real-time updates to an encrypted,
decentralized ledger
 Blockchain solutions for Healthcare Systems
 Patient record access and control: Put
patients in control of which data they share
and with whom, eliminate bottlenecks and
blocking, and accelerate clinical access to
crucial patient data
 Medical IoT security: Manage a secure
medical IoT, including multiple medical
devices. Prevent loss, hacking, and data
tampering and ensure reliable functioning
across different device lifecycles..
 Research data verification and
exchange: Provided that stakeholders
gave their explicit permission, verified
clinical research data can be rapidly and
securely exchanged to provide more
accurate trial outcomes..

26. Blockchain & Healthcare Industry

27. Blockchain
Development
for
Pharmacology

28. Blockchain & Pharma
 Product verification: Product verification for
drugs can be achieved through tagging and
blockchain management, tracking products
throughout the supply chain and verifying them
when they are returned to it.
 Blockchain solutions for Pharma
 Auditability and security: Automatically
create auditable, secure, and tamper-proof
activity trails to demonstrate regulatory
compliance with the transparency inherent in
blockchain.
 Improved R&D: Build wider networks
of participants in the R&D process
without paperwork and transaction
friction; use trustless, permissioned
blockchain platforms for automated
incentivization and intellectual property
protection.
 Clinical trials administration: Track
patients, drugs, events, and actions on a
tamper-proof, distributed ledger; ensure
protocol adherence with smart contracts,
use tagging and biometric data sources to
monitor effects, and acquire highly-
granular data for analysis in real-time.

29. Blockchain & Pharma

30. Blockchain
Development
for
Education

31. Blockchain & Education
 Educational resources: Lecture videos, notes,
ebooks, films, music, chunks of code, and more
can be stored on the blockchain and securely
accessed from anywhere by students and staff
through permissioned accounts.
 Blockchain solutions for Education
 Persistent identity: Easily verify individuals
and their records across systems with persistent,
automatically-updated identities protected by
blockchain encryption.
 Automated administration: Records can
be transferred, amended, added, stored,
and accessed on immutable ledgers that
combine instant access with security and
auditability; the process can be automated
with smart contracts.
 Autonomous record verification:
Documents and records, resumes and
images can be automatically verified
using tamper-proof, blockchain-based
immutable storage and retrieval systems.

32. Blockchain & Education

33. Blockchain
Development
for
Agriculture

34. Blockchain & Agriculture
 Traceable provenance: Track each item from its
origins through warehousing and transport to the
shelf, and show consumers that information.
 Blockchain solutions for Agriculture
 Rapid payment processing: Tokenize
payments to ensure fast, secure, and cost-
effective operations by enabling multiparty
microtransactions with negligible fees.
 Supply chain transparency: Know where
each item has been stored, when and how it
has been moved, and under what conditions..
 Subsidy management: Blockchain can make
allocation, uptake, and usage of agricultural
subsidies more trusted by increasing
transparency and creating an immutable record
of activity.
 Inventory oversight: 34% of all food
waste occurs before food leaves the farm
(as per FAO). Manage farm inventory
efficiently with blockchain-enabled IoT
and automated record-keeping.
 Fraud prevention: Trace each item back to
its source through a verifiable chain of
processing and know for sure it’s what it
should be.

35. Blockchain & Agriculture

36. Blockchain
Development
for
Energy

37. Blockchain & Energy
 Direct purchases of energy: Reduce bills by
excluding intermediaries; with a blockchain-
enabled energy trading platform, you will allow
users to purchase energy directly from the grid.
 Blockchain solutions for Energy Systems
 Distributed energy: Establish peer-to-peer
energy trading via blockchain, where users can
buy and sell surplus solar energy and renewable
assets at mutually agreed prices.
 Energy traceability: Quickly and easily
verify output data of each asset by linking
them to encrypted digital IDs; trace assets
back to their source to provide
comprehensive certification throughout
delivery.
 Fast carbon asset development: Speed
up the development of carbon assets with
a distributed blockchain technology that
facilitates provenance tracking and
establishes fast, accurate, and autonomous
transfers

38. Blockchain & Energy

39. Blockchain
Development
for
Real Estate

40. Blockchain & Real Estate
 Transparent records: Immutable, auditable
records of transactions and entities establish
transparency and compliance, eliminating the
possibility of criminal activity.
 Blockchain solutions for Real Estate
 Tokenization and fractionalization:
Tokenization of the value of a real asset
allows it to be traded on the blockchain
through exchanges like any token, eliminating
barriers to entry
 Smart contracts for payments: Smart,
self-executing contracts can be chained
into workflows that automate payment of
stamp duties, taxes, and agents’ fees,
ensuring compliance and reducing
administrative load.
 Reliable proof of ownership: Land
ownership records kept on blockchain are
accessible and immutable. Only
authorized persons can change them, and
each change is recorded.

41. Blockchain & Real Estate

42. Blockchain
Development
for
Voting Systems

43. Blockchain & Voting Systems
 Transparent voting: Establish democracy in
voting through blockchain’s decentralized
mechanism; voters can influence policies
through consensus, transparently visible to the
whole network.
 Blockchain solutions for Voting Systems
 Distributed elections: Arrange distributed and
thus transparent elections with blockchain-
based e-voting platforms where every
participant can verify, process, and record
transactions in an encrypted ledger.
 Tamper-proof voting records: Prevent
fraud in voting records with an
incorruptible blockchain system; recorded
on a blockchain, every vote record is
encrypted and immutable, hence tamper-
proof.
 Instant identity validation: Check the
identity of each voter against eligibility to
cast votes autonomously with smart
contracts; those contain immutable rules for
voting and reject users who don’t comply.

44. Blockchain & Voting Systems

45. Blockchain
Development
for
Automotive

46. Blockchain &Automotive Industry
 Safe insights from smart vehicles: Integrated
with smart vehicles, blockchain could record
such data as average speed and mileage in a
permanent log for more meaningful analysis of
driver behavior
 Blockchain solutions for automotive
 Regulatory compliance: Smart contracts might
serve as universal health standards for car
manufacturing. Producers who don’t comply
with these could be automatically banned from
the car market
 Theft prevention: In addition to
authenticating parts, blockchain could
provide the same for entire vehicles,
storing the identities of their drivers in a
ledger to eliminate thefts.
 Driver rewards: Manufacturers could
reward drivers with digital assets and
loyalty points for better behavior on the
road, incentivizing them to drive safely
and responsibly.

47. Blockchain &Automotive Industry

48. Blockchain
Development
for
Travelling

49. Blockchain & Travelling
 Complete luggage tracking: Seamlessly track
luggage across locations and organizations,
using tagging to identify luggage items, with
blockchain-enabled transparent and auditable
monitoring of luggage transport.
 Blockchain solutions for Travelling
 Persistent identification: Verify passengers’
identities digitally and with no friction through
blockchain. Cut check-in times and let
customers move seamlessly through their
journeys without juggling travel documents.
 Rapid, effortless payments: Transfer
payments across national borders and
organizations instantly, with minimal
fees. Let customers pay in digital
currencies and process payments quickly
and transparently.
 Direct customer access: Build cohesive
infrastructures that let customers find, pay
for, and use travel services directly and
with lower prices, ensured by P2P,
intermediary-free blockchain networks.

50. Blockchain & Travelling

51. Blockchain and
the Coming
Metaverse
Technology

52. Blockchain Metaverse
Virtual Reality (VR)
Augmented Reality (AR)
Blockchain
Non-Fungible Tokens

53. Acknowledgment
Email:Mtorky86@gmail.com