Blockchain is one of the most important technical invention in the recent years. Blockchain is a transparent money exchange system that has transformed the way a business is conducted. Companies and tech giants have started investing significantly in the blockchain market and it is expected to be net worth of more than 3 trillion dollars in next 5 years. It has become growing popular because of its irrefutable security and ability to provide complete solution to digital identity issues. It is a digital ledger in a peer to peer network. This presentation provides a background on Blockchain technology, history, it’s architecture, how it works, advantages and disadvantages and its application in different industries.

1. The Blockchain
- The Technology behind Bitcoin
Asim Rais Siddiqui

2.  Blockchain Technology Overview
 Participant Exposure
 The Technology Behind Bitcoin
 4 Key Concepts of Blockchain
 How Blockchain works
 Blockchain and Mining Principles
 Miners Rewards
 Wallet
Agenda

3. • A blockchain is a distributed database that
maintains a continuously- growing list of
records called blocks secured from
tampering and revision
• The blockchain is a secured protocol
enabling peer-to-peer exchanges on a
distributed network in a secured, public
and non-repudiable way.
Blockchain Overview

4. How many of you:
•Have heard of bitcoins?
•Own cryptocurrency?
•Feel you understand the underlying blockchain
technology?
•Feel you can summarize for us the benefits of the
“trust economy”?
•Are involved in projects that involve blockchain
technology implementation or related activities?
Participant Exposure

5. Where It All Started
Blockchain technology was first introduced in a whitepaper
entitled: “Bitcoin: A Peer-to-Peer Electronic Cash System,” by
Satoshi Nakamoto in 2008.
• No reliance on trust
• Digital signatures
• Peer-to-peer network
• Proof-of-work
• Public history of transactions
• Honest, independent nodes control majority of CPU computing
power
• Rules and incentives enforced through consensus mechanism
https://bitcoin.org/bitcoin.pdf

6. The Technology Behind Bitcoin
• Think of Bitcoin as an electronic asset (as well as a digital
currency)
• A network of computers keeps track of Bitcoin payments, and
adds them to an ever-growing list of all the Bitcoin payments
that have been made, called “The Bitcoin Blockchain”
• The file that contains data about all the Bitcoin transactions is
often called a “ledger”
• Bitcoin value is created through transaction processing,
referred to as “mining,” which is performed by distributed
processors called “nodes” of the peer-to-peer network
A Gentle Introduction to Bitcoin by Antony Lewis, https://bravenewcoin.com/assets/Reference-Papers/A-
Gentle-Introduction/A-Gentle-Introduction-To-Bitcoin-WEB.pdf

7. The Usual Situation

8. • The financial system is opaque and lacks transparency and fairness.
• All these intermediates are no volunteers. They work for money and get paid for their
services.
- The transaction costs money to both the buyer and the seller.
- There are interest rates, fees, surcharges, etc.
- EFTs in Europe can cost 25 euros.
- Credit transactions can cost several percent of the transaction.
• All these exchanges are error prone.
- Credit card informations are often stolen.
- Banks make mistakes.
• An account holder is eventually not even the actual owner of his account.
- The bank really owns the account.
- Funds can be garnished, even frozen completely.
- Banks and other payment processors like PayPal, Visa, and Mastercard may refuse to
process payments for certain legal entities.
• Financial exchanges are slow.
- Checking and low cost wire services take days to complete. The problems with this
model
The problem with this model

11. Distributed Ledger instead of Centralized Ledger

12. • The blockchain network is a peer-to-peer network of
independent nodes communicating together by
message broadcasting.
• A node is not necessarily connected to every other
node, but at least some of them.

13. How Blockchain works

14. Blockchain overview

15. 4 Key Concepts of Blockchain

16. Blockchain principle

17. The Mining Principle

18. Miner’s Reward

19. • A wallet is basically the Bitcoin equivalent of a bank account. It allows you
to receive bitcoins, store them, and then send them to others.
- The name "Bitcoin wallet" is a bit of a misnomer. Bitcoin wallets don't hold
actual Bitcoins, those are essentially stored on the blockchain.
- Instead, Bitcoin wallets hold the private keys that give users the right to use
those coins.
- Each Bitcoin wallet comes with at least two keys : one public, and one private.
• A Bitcoin address, or simply address, is an identifier of 26-35
alphanumeric characters, beginning with the number 1 or 3, that
represents a possible destination for a bitcoin payment.
- Addresses can be generated at no cost by any user of Bitcoin.
Bitcoin Wallet

20. • Purchase custom mining hardware
• Obtain a bitcoin wallet
• Secure your wallet
• Decide between joining a pool or going alone
• Download a mining program
• Keep an eye on temperatures
• Check your profitability.
How to Mine Bitcoins

21. Value of blockchain technology

22. • Bitcoin is a form of digital currency.
• No one controls it, it is a decentralized currency,
which means that no
• big bank or institution can get a hold of your
money.
• It is the very first form of a growing category of
money called cryptocurrency, created in 2009.
Bitcoin, what is it?

23. Value of Bitcoin since its creation (2009-2017)

24. • Questions?
Thankyou!