INTRODUCTION TO THE BLOCKCHAIN ERRIN ICT Working Group Meeting on Blockchain June 13, Javier Prieto IoT Digital Innovation Hub
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1 INTRODUCTION TO THE BLOCKCHAIN ERRIN ICT Working Group Meeting on Blockchain June 13, 2018
2 Content Bitcoin Beyond bitcoin
3 The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Don & Alex Tapscott A public ledger that provides information of all the participants and all digital transactions that have ever been executed.
4
5 Features Trustless exchange. Reliability and immutability. Transparency. Process integrity.
6 Bitcoin Unregulated, censorshipresistant shadow currency First blockchain application: Pioneer of blockchain technology Blockchain is not bitcoin
7 Bitcoin: Mining and consensus Verification of transactions Decentralizing the consensus: proof of work Mining pools Validating a new block
8 Bitcoin: Mining and consensus
9 Bitcoin: Block Structure Blockheader version info hash of the previous block Transactions Coinbase Transaction 1 Transaction 2... Transaction n time stamp bits nonce transactions count merkle tree root Merkle Tree Hash Proof of Work Hash
10 Bitcoin: blockchain construction
11 Bitcoin: Mining and Consensus Decentralizing the consensus: Proof of work (Hashcash) Proof of work Algorithm: SHA256(SHA256(Block Header)) Hello World Hello World! Hello world! da0dec1c790d6b6197d906cce98981d60a4dd8c8da430fc71961bafaf2a8891a 4163fb4ab9e1e0a51709a51bc7e13ab c722d2c1479caac42 675de8ebf07b0ca1ed92f3cdce825df28d36d8fdc d2c18b13c096edc
12 Bitcoin: Distribution of the blockchain among the nodes of the miners' network
13 Bitcoin: Mining and Consensus Mining pools Tens of thousands of ASIC chips. Miners collaborate to share the reward. Smaller reward Reduce uncertainty
14 Bitcoin: Wallets and capitalization Wallets Addresses Where to buy? Cryptocurrency Market Capitalizations
15 Bitcoin: Wallets
16 Bitcoin: Where to buy? Use an Exchange Examples: coinbase, kraken, Bitstamp Use a Bitcoin ATM (Automatic Teller Machine) Discover people selling Bitcoin in your community
17 Bitcoin: Cryptocurrency Market Capitalizations
18 Beyond bitcoin Smart Contracts Dapps Use cases
19 Beyond bitcoin Smart Contract Special protocol intended to contribute, verify or implement the negotiation or perfomance of the contract. Allows to perform credible transactions without third parties. These transactions are trackable and irreversible. Contains all the information about the contract terms and execute all envisaged actions automatically.
20 Smart contracts use all the beneficts of Blockchain technology: Security Economy and speed Standardization Descentralization Automatization Beyond bitcoin Smart contracts: What are the benefits of smart contracts?
21 Beyond bitcoin Descentralized applications (Dapps) Dapp is an open-source software platform implemented on descentralized blockchains. Are fueled using tokens. Using a protocol / algorithm.
22 Beyond bitcoin Descentralized applications (Dapps)
23 Beyond bitcoin Descentralized applications (Dapps)
24 Beyond bitcoin Use cases Logistics Bag tracking
25 Beyond bitcoin Use cases (I): Logistics Smart contracts Events Performing and transferring value Clearing
26 Beyond bitcoin Use cases (II): Bag tracking
27 IOT DIGITAL INNOVATION HUB
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