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Intro to Blockchain

coloradokim edited this page Apr 26, 2018 · 4 revisions

Introduction to Blockchain

HBR: The Truth About Blockchain

  • Blockchain ledgers can create a permenant record of veriable transactions
  • Because the ledger is distributed, no one can tamper with or delete the information
  • Blockchain is not a disruptive technology, it is a foundational technology. It cannot simply replace the current financial and contract systems
  • Bitcoin was the first implementation of blockchain

How Blockchain Works

5 Principles from HBR: The Truth About Blockchain

  1. A Distributed Database
  • The data is viewable by anyone
  • No one person can make a change
  1. Peer-to-Peer Transmition
  • There is no central node, or computer

    1.Transparency with Pseudonymity

  • Every user has an address (30 alphanumeric characters)

  1. Irreversibility of Records
  • Every record is linked to the record before it, so the transactions cannot be changed
  1. Can be Programmed
  • It is 'easy' to create code for automated transactions

How Foundational Technologies Take Hold

  • x axis is degree of novelty

  • y axix is the amount of complexity and coordination

  • The more novel, more effort is needed to educate customers about what problem the technology solves

Distributed Ledgers

  • Blockchain is a type of distributed ledger

  • "A distributed ledger is a type of database that is shared, replicated, and synchronized among the members of a network." - IBM

  • A distributed ledger

    • There is consensus that a transaction has a occured
    • There is no central data store
    • There is no administrator (like a bank)
    • Requires a peer-to-peer network connection
    • Governed by consensus
    • Every transaction has a timestamp and cryptographic signature
  • A ledger is...

Wikipedia- Distributed Ledger

Blockchain

  • Blockchain is a shared digital-ledger that records transactions in a peer-to-peer network

  • Blocks: The history of asset exchanges that take place among peers in the network

    • Blocks are recorded in sequential order
    • Blocks are linked when the transaction is confirmed and validated

IBM: Blockchain Basics

Peer to Peer Network

Smart Contracts

What is Ether and Ethereum?

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