Introduction to Blockchain and Cryptocurrencies Technologies:

1. Tarek Mahran
TOGAF, PMP, ITIL, SCRUM, BPM and AZURE cloud certified
Co-founder www.pure-minds.net
IT Architect & Technology Advisor
Introduction to Blockchain and Cryptocurrencies

2. What is a Blockchain?
What is a Bitcoin?
History of Bitcoin and Simplified example.
History of Blockchain.
How does a Blockchain works?
How does a Blockchain get verified?
Types of Blockchain networks.
What is a Smart Contract?
Applications and use cases of Blockchain
technology.
Q & A
Agenda

3. What is Blockchain?
Distributed Secured Logfile (Ledger)
Technology used to transfer and track digital
assets(value/ownership) from one entity to
another.
• Digital Assets:
• Digital Money – Cryptocurrencies like
Bitcoin, Ether, Ripple and Litecoin

4. TheComponents
Applications
PoW/PoSSecurity
Business logics API & Interfaces
Incentives
Scalability SpeedPrivacy
IoT devices
Network
Ledger
Public or Private
Validators
Consensus
Block Size
technologymodel

5. Bitcoins = Blockchain?
Bitcoin = Cr ypto currency Secure ledger Transparent and anonymous

6. What is a Bitcoin?
Bitcoin
• Satoshi Nakamoto 2008/2009
• Cryptocurrency - Digital Money
• No Central entity governance or Control
• Maintained in Peer to peer nodes in a blockchain called Ledger
• Each node in the network had a copy of the ledger for validating
and verifying transfer digital money from entity to another.
• Today around 16.8M BTC Circulation. Total 21M BTC
• Nowadays 1 BTC = 18000$ ????
• You Can Buy or Generate (Mine) BTC
• Satoshi Nakamoto believed to have $4.7 billion
• Bitcoin Pizza day: On 22 may 2010 two pizza cost 10K BTC. Worth
$20M on 22 may 2017

7. History of Bitcoin

8. “Satoshi Nakamoto” created the reference implementation that began with a Genesis
Block of 50 coins
2008
August 18 Domain name "bitcoin.org" registered.
October 31 Bitcoin design paper published
November 09 Bitcoin project registered at SourceForge.net
2009
January 3 Genesis block established at 18:15:05 GMT
January 9 Bitcoin v0.1 released and announced on the
cryptography mailing list
January 12 First Bitcoin transaction, in block 170 from Satoshi to Hal
Finney
https://en.bitcoin.it/wiki/History
History of Bitcoin
Bitcoin

9. History of BitcoinBitcoin

10. Current Banking System
challenges
Omar wants to transfer 100 SAR to Adam
3 days + 20 SAR fees
Omar 100 SAR
Adam 80 SAR

11. Bitcoin Example

12. Bitcoin ExampleBitcoin Example

13. Bitcoin ExampleBitcoin Example

14. Bitcoin ExampleBitcoin Example

15. Digital Signature

16. Digital Signature

17. Altcoins

18. History of Bitcoin

20. 1998
Decentralized digital currency
2 0 0 8
Blockchain Concept
2 0 0 9
Bitcoin
2017
The race is on!
2014
Becoming a
mainstream term
The Brief History of Blockchain
1991
Cryptographically
secured chain of blocks

21. 1 Company A wants to transfer a value to Company B (i.e. digital
currently, a digital asset, a certificate, etc.).
2 Company A uses a digital app to transfer the value to Company B. The
app stamps the transaction with Company A digital signature, and now
needs to be verified by blockchain.
4 The block containing Company A transaction is then broadcast to the
entire network to be verified in each node.
5 After the verification process, Company B receives the value, and all
the transaction history remains permanent and transparent available
for all the blockchain participants.
How does it work?
Company A transaction is stored in the ledger as a block with other
transaction. The block has an unique ID, the transition time and the ID
of the previous block in the chain.
3

23. That decentralizes data in a trustless environment
Traditional System
Centralized system
with stored ledger
Blockchain System
Distributed system
with distributed ledger
▪ Traditional ledgers are centralized and use third parties and middlemen to approve and record transactions
▪ Blockchain safely distributes ledgers across the entire network and does not require any middleman
▪ The technology maintains multiple replicas like P2P torrent file sharing

24. Again What is
Blockchain?

25. Consortium
Woodgrove
Financial
Contoso
Bank
Northwind
Traders
Bank b
Insurance c
Investment
consortiumc
Bank A
Blockchain
Location1
Location2
Location3
Location4
Department
A
Department
B
Public
ConsortiumPrivate
• Many, unknown participants
• Writes by all participants
• Reads by all participants
• Consensus by Proof of Work
• Known participants from one organization
• Write permissions centralized
• Reads may be public or restricted
• Multiple algorithms for consensus
• Known participants from multiple
organizations
• Writes require consensus of several
participants
• Reads may be public or restricted
• Multiple algorithms for consensus
Public
blockchain
Persona
Woodgrove
Financial
Person B
Northwind
Traders
Bank6
Bank1
Consortium
6
Source: Ethereum blog by Vitalik Buterin https://blog.ethereum.org/author/vitalik-buterin/
Blockchain | Network Types

26. Blockchain | Mining (Consensus) Types

27. Blockchain Features
Peer-to-peer infrastructures (Bitcoin, Ethereum,..)
Decentralized trustless protocol
No need for central authority
Maintains a ledger (blockchain) of transactions among a distributed
network of computers
Based on cryptography which allows secure transactions to be
performed by the users
Solves double spending problem
Employs consensus algorithm for reaching consensus about the
current state of the blockchain
Value/tokens/ownership can be tracked and exchanged without
requiring a central point of control
Nodes (miners) verify transactions. They perform proof of work. In
return, they win rewards and collect transaction fees.
51% attack may occur if 51% of hash power is held by one party.

28. Smart Contracts are unable to access external data or events based on time or market conditions. Calling code or data
outside of a Smart Contract or blockchain breaks the general trust barrier and authenticity of transactions. Cryptlets
will allow the blockchain to access external data securely, while maintaining the integrity of the blockchain.
Evolution of Blockchain
Blockchain 3.0

29. Virtual products
Secure
inform ation
sharing
Certifications
Product lifecycleInternet of thingsDigital currencies
Usages for Blockchain

30. Blockchain
use cases

31. What is Smart
Contract?

32. PRODUCER
Food Processor
Milk producer supplies Milk to
Food Processing Company
IoT Enabled
SMART CONTRACT
The package has to be
maintained at :
Temperature < 10º C
Humidity < 65%
The terms of shipping are
registered using a smart
contract on the Blockchain
8ºC
60%
Origin
CARRIER 1
CARRIER 2
Retail Store
11ºC
64%
Store
At various points in the journey, the IoT device from the package sends the
Temperature & Humidity data which are recorded on the blockchain
SMART CONTRACT
UPDATED
Temperature 11ºC
Humidity 64%
The conditions of the
contract have been
violated.
Carrier 2 is liable for
penalty as the
temperature of the
package when it reached
the retail store was above
the prescribed limit
64% 64%
Warehouse Carrier 2
SHARED LEDGER
8ºC 9ºC
The milk product is sealed in an
IoT-enabled package for shipping
Temperature 8º C
Humidity 60%
Temperature 9º C
Humidity 64%
Warehouse
Temperature 8º C
Humidity 64%
Freight Transportation

34. Resources
Bitcoin: A Peer-to-Peer Electronic Cash System https://bitcoin.org/bitcoin.pdf
http://coinmarketcap.com
http://hashcash.org
IDCoins: A Web of Trust Blockchain for Identity and Reputation, David V
Duccini, http://bit.ly/idcoins
“Mastering Bitcoin”, Andreas M.Antonopoulos , O’Reilly Media
http://www.bitcoinsecurity.org/2012/07/22/what-is-bitcoin/
https://www.weusecoins.com

35. Contact Me
My Linkedin :
https://www.linkedin.com/in/tarek-mahran-togaf-pmp-itil-bpm-1144a112
My Email:
tarek.s.mahran@gmail.com
tmahran@pure-minds.net
Mobile:
+966599570399

36. Thank You
QA