The new digital era is knocking our doors, and these are arguably the most exciting times post invention of internet itself. Open your doors to the new advanced digital world, which promises to simplify and automate a lot of things around. In the list of remarkable technologies that promise to change the world, is Blockchain. Conceived in 2008, this concept is generating a lot of buzz. This presentation discusses about this technology, working mechanism in case of Bitcoin, and its use cases beyond crypto-curreinces.

1. The Curious Case of
Blockchain
- Sugnyan Bettadapura
- Ritesh Mehrotra
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2. WHAT WE’LL BE TALKING ABOUT
01 Blockchain basics
02 Blockchain in Cryptocurrency ecosystem
03 Blockchain in Government services
04 Blockchain in Supply Chain Management
05 Blockchain for Fraud control
06 Blockchain for Internet of Things (IoT)
END
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3. What is Blockchain? …. Common themes discussed in the context of Blockchain
Stores transactions
Replication across a number of systems
Decentralized/
Distributed Ledger
Peer to Peer replication
Enforce read/write access rights
to prove identity, authenticity
Cryptography and
Digital Signatures
Difficult to change Historical records
Easy to detect attempts to modify
records
Longest chain
Proof of Work
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4. Decentralized ledger ….How different are they ??
Traditional Centralized Ledger
› Trusted Counterparties
› Proprietary: Licencing
requirements
› Gate Keepers Extract Tolls
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5. Decentralized ledger ….Central authority eliminated
Decentralized Ledger
› Peer 2 Peer
› Cryptographically secure
› Open Source
› Blockchain protocol is
available to any asset
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6. How Blockchain relationships work (Process view)?
A transaction is reported
Broadcasted to a P2P network
Validation of the transaction & user’s status using known
algorithms by the network of nodes
1
2
3
4
5
6
7
Transaction marked as Verified
Post verification, the transaction is combined with other
transactions to create a new Block of data for the ledger
Add new block to the existing Blockchain
The transaction is marked complete
Transaction reported
Transaction Authorized
Transaction Recorded
Transaction Executed
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7. Transactions – How they look?
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Reference:
https://bitcoin.org/bitcoin.pdf

8. Building Blocks
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Blocks – How are they structured?

9. Validating Transactions - Proof of Work
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10. Hash function {
Root
Hash
Previous
Block
Hash
Nonce
Hashed
Transactions
A+B
Hash
C+D
Hash
Transaction
A
Transaction
B
Transaction
C
Transaction
D
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Arbitrary value
incremented for each
check
Each potential block needs to
generate a hash value such that it
has a series of pre-defined zero bits.
The hash is generated with these
inputs
• Previous block’s hash address
• Hash of hashes: All transactions
in a potential block are hashed to
a Merkle Tree to generate a Root
Hash
• A randomly generated arbitrary
value
The nonce is incremented and
applied and hash function till the
zero bits condition is met
How it works?

11. © TeckTalks, 2016
Generated with 20 zero
bits
References to previous
and next blocks
Root Hash of
transactions in a block
Try it out here
• http://www.xorbin.com/tools/sha256-hash-calculator
• Live Blockchain Transactions: https://blockchain.info/
Sample Block

12. How should conflicts be resolved?
Consensus achieved by using
Longest Chain rule
If there are multiple competing valid
chains, believe the one with more blocks.
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13. What’s in it for me ?? … Incentives
Block Rewards
Block Makers
Block
Data storage
Transaction
validators © TeckTalks, 2016

14. Upgrades?
Blockchain Improvement Proposal (BIP)
Submit
New features
Suggestions Design changes
Build consensus
within the community
Document dissenting
opinions
Responsibilities of BIP author
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15. Case study: Blockchain in Cryptocurrency ecosystem
Code’s resistance to counterfeiting
Network’s ability to prevent double
spending
Network security and transaction
verification
Embedded Incentives to miners
Personal data security enabled by
public-private key cryptography
Dedicated core team of developers and
miners who support & improve the code
Electronic currency that uses cryptography for security, mostly anonymous and not issued by any central authority
600+ Cryptocurrencies exist today
Differences between various cryptocurrencies
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16. Case study: Blockchain in Government Services
Reduce risk of
manual errors
Create Secure process for
transferring documents
Verify identity of users
Registering and recording land titles
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17. Case study: Blockchain in Supply Chain Management
Letter of Credit management
Improve security by
reducing errors
Predictable working
capital for companies
Simplify transaction
processing
Bring Transparency in
transactions
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18. Case study: Blockchain in Internet of Things (IoT)
Distributed Transaction ledger for IoT transactions Peer-to-peer messaging
Distributed file sharing
Autonomous device
coordination
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19. Case study: Blockchain in Healthcare
Electronic Medical Record (EMR)
Pseudonymous
(Personal health record
encoded as digital asset)
Private Key
(Only permissioned
personnel can access)
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20. © TeckTalks, 2016