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History of Blockchain
• 1991-ConceptOrigtns· Stuart Haber & W ScottStometta proposed a
cryptographically secured chain of blocks to timestamp digital documents.
I • 2008- Bitcoin Whitepaper Satosh1 Nakamoto introduced blockchain as
the backbone of Bitcoin, solving the double-spending problem without
banks.
• 2015- Ethereum & Smart Contracts; Vrtalik Butenn launched Ethereum,
expanding blockchain beyond currency to programmable applications.
• 2017-Now-Web3 & Beyond· Rise of ICOs, DeFl, NFTs, enterprise
adoption, and government interest in CBDCs pushed blockchain into
mainstream innovation.
What is a blockchain?
A Blockchain represents a
• distributed ledge r of transactions.
• running in a pee r•to-peer n e t w o rk, where
those transactions once confirmed,
• cannot be deleted or modified
Decentralization I Ownership I Transparency
Indu stries actively using bloc kchain
Immutability I Interoperability Fashion, Healthcare, Finance, Education
PUNCH CARDS
ENIAC
TOKENS
J
Triple Entry Accou nt:~;
A's ledger B's ledger
Expenses dr S100 Cash dr $100
Cash er 5100 Income er $100
A sends Information B sends information
I
Public ledger (Digital receipt)
A out $100 Bin
J
Aud itor
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Components of a Blockchain
• Transaction-. Digital record of an exchange (value, data , or asset)
I<
I • Block-+ A container that groups verrfied transactions together
• Hashing-. Cryptographic fingerprint that secures a block's data and
links it to the previous block_
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SMART CONTRACT PROCESS
Smart Contracts
Self-executing digital agreements
I stored on a blockchain 1. WRITE 2. DEPLOY TO
CONTRACT BLOCKCHAIN
~
. '
3. EXECUTE 4. VERIFY &
ON DATA INPUT ENFORCE
Self-executing = Automated
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Liquidity Pools
I Crowdsourced pool of digital assets
locked in a smart contract; ensures
enou gh liquidity for trading digital
assets
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Popular Blockchains
• Ethereum- Smart contracts & decentralized
applications (dApps)
I • Polkadot- Interoperability through parachalns
• Hyperledger Fabric - Enterprise blockchain for
supply chains & business
• Cardano-Susta1nable, research-dnven
blockchatn (Proof of Stake)
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Elliptic Curve Cryptography
A form of publivkey cryptography based on the --
mathematics of elliptic curves over finrte fields
How it works?
• Each user has a private key (a random
number).
-4
• The corresponding public key is a point on the
emptic curve, generated from the private key . -4
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Zero-Knowledge Proof A cryptographic method
to prove something is true
without revearing the
underlying information.
A cryptographic method to prove something is true without
I revealing the underlying information.
Use Cases ~
• Identity verification (prove age with out sharing ID).
• Private blockcha1n transactions. .
. • Regulatory compliant cross border payments . Verifier
Anonymity I Verifiability Blockchaln eliminates
intermediary
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Traditional DAOs (Decentralized
Organizations Autonomous Organizations)
Run by code (smart contracts) and community
Run by a centralized authority
voting, no single point of control .
(board , CEO)
Traditional
Organizations
ru., by ~[Link]
o:vthon'fy
CEO
i l
~a
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Popular Consensus Mechanisms
_.-, VaMating and oddlng txn1l to lhn chain
t}Proof of Work (PoW) -+ Miners solve puzzJes, high energy use,
strong security (e .g., Bitco1n).
~ Proof of Stake (PoS)--+ Validators stake coins , energy-efficient,
scalable (e .g., Elhereum 2.0)
(1 o PracUcal Byzantin e Fau It Tolerance (PBFT) ___, Fast finality, great
for private/consomum blockchams, nmited scalability
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Oracles
A trusted source of Information
I
Chainlink
Decentralized oracle network that
connects smart contracts {YJh1ch run on
blockchatns)with real-world data. events,
and systems
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Major Challenges in Blockchain
• Thruughput & Sc3lab11ity ➔ Um1ted transachons per second
compared to· trad1honal systems (e g , Visa) Solution: L ;1 1 er 2
chains
I • Energy Co11 sumpt1on .. Hrgh power usage 1n Proof of Work
blockcharns.
• Regulatory Uncert,a1r1ty •► Lack of clear global laws for crypto .
tokens. and DeFl
• Secuntv & VuJner3b1httes , 51% attacks , smart contract bugs. and
/;
hacks