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Blockchain Tutorial For Beginners - 2 | Blockchain Technology | Blockchain Tutorial | Simplilearn
The document provides an in-depth overview of blockchain technology, covering concepts such as candidate blocks, Byzantine fault tolerance, forks (both soft and hard), and various use cases of blockchain, including its application in preventing voter fraud. It discusses the complexities of adding blocks simultaneously and how consensus is achieved in such scenarios. Additionally, it highlights the potential future of blockchain adoption, regulatory needs, and job opportunities in the field.
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Blockchain Tutorial For Beginners - 2 | Blockchain Technology | Blockchain Tutorial | Simplilearn
- 2. Hey, thanks forcoming back to explain how Blockchains work
- 3. No problem! Timeto jog your memory about everything we discussed the other day
- 4. You learnt aboutwhat a Blockchain is
- 6. You learnt aboutBitcoin and how it works
- 8. About the featuresof Blockchain
- 10. And finally…about how youcan implement Blockchain in the banking system
- 12. Now we’ll geta little deeper into Blockchain. Today we’ll talk about: Adding 2 blocks at the same time Soft Forks Hard Forks Forks Other areas where Blockchain is used The future of Blockchain Blockchain Jobs Use case: The Candidate Block Byzantine Fault Tolerance
- 13. Before a blockcan be mined, a miner has to make an important decision! Which transactions would he add to his block?
- 14. The Candidate Block Beforetransactions are added to the Blockchain, they are collected in a temporary container called a memory pool
- 15. The Candidate Block Theminers select transactions from this pool
- 16. The Candidate Block Thecandidate block is a temporary block which a miner hopes to add to a Blockchain
- 17. The Candidate Block Thecandidate block is a temporary block which a miner hopes to add to a Blockchain The candidate block holds transactions that the miner selects from the memory pool
- 18. The Candidate Block Thecandidate block is a temporary block which a miner hopes to add to a Blockchain The candidate block holds transactions that the miner selects from the memory pool The miner then tries to be the first person to find the nonce value that satisfies the hash requirements
- 19. I’ve been thinking… Ifsomeone in a Blockchain wanted to input the wrong data by spreading the wrong information around…
- 20. Would he/ shebe able to get away with it?
- 21. Ah, that’s where somethingknown as Byzantine Fault Tolerance comes in…
- 22. To understand this,you need to know what the Byzantine Generals’ problem is…
- 23. Byzantine Fault Tolerance Imaginea Byzantine General and 3 other lieutenants need to take over this town…
- 24. Byzantine Fault Tolerance However,they are at different places, and can’t directly communicate with each other
- 25.
- 26. Byzantine Fault Tolerance TheGeneral has to ensure that all lieutenants follow the same order he/ she gives them: To attack or retreat This has to be ensured, even if one of the lieutenants is a traitor
- 27. Byzantine Fault Tolerance Thisis the Byzantine Generals’ problem
- 28. Byzantine Fault Tolerance Inthis case, a traitor could ruin the unity of the group by sending different messages to different lieutenants
- 29.
- 30. Byzantine Fault Tolerance Herewe can see that general is giving all his lieutenants the command to attack. The traitor could ruin this, by sending every other lieutenant the command to retreat
- 31. Byzantine Fault Tolerance Inthis situation, the traitor would make the others believe that the General asked them to retreat
- 32.
- 33.
- 34. Byzantine Fault Tolerance Thiswould cause the lieutenants to retreat and the General’s attack to fail
- 35. Byzantine Fault Tolerance Theonly way an attack or a retreat will be successful, is by having a majority supporting that particular action
- 36. Byzantine Fault Tolerance Toachieve this, the lieutenants keep a tally of the orders they receive. So in this scenario…
- 37. Byzantine Fault Tolerance TheGeneral sends the attack order to each of his lieutenants
- 38.
- 39. Byzantine Fault Tolerance Thelieutenants in turn collect the order they receive and pass it on to the lieutenant near them
- 40.
- 41. Byzantine Fault Tolerance Thetraitor does this too, but sends the retreat order to the other lieutenants
- 42.
- 43. Byzantine Fault Tolerance However,this will not be successful because…
- 44. Byzantine Fault Tolerance Attack:2 Retreat: 1 Attack: 2 Retreat: 1 Attack: 2 Retreat: 1
- 45. Byzantine Fault Tolerance Thisshows that the majority of the lieutenants would follow the General’s command and the attack will be successful
- 46. Byzantine Fault Tolerance Thescenario I mentioned before, is Byzantine Fault Tolerant
- 47. Byzantine Fault Tolerance Thesame situation can be encountered in Blockchain as well The traitor would add invalid transactions into the Blockchain
- 48. Byzantine Fault Tolerance Thesame situation can be encountered in Blockchain as well The traitor would send inconsistent information to other nodes in a Blockchain The traitor would add invalid transactions into the Blockchain
- 49. Byzantine Fault Tolerance Thesame situation can be encountered in Blockchain as well The traitor would send inconsistent information to other nodes in a Blockchain This would effect the reliability of the Blockchain network The traitor would add invalid transactions into the Blockchain
- 50. Byzantine Fault Tolerance Itis effective because: The process of adding a block to a Blockchain is a work-intensive process which involves a hashing algorithm Blockchains are able to achieve Byzantine Fault Tolerance with the help of proof of work
- 51. Byzantine Fault Tolerance Theprocess is very hard because it is heavily reliant on values obtained from the existing Blockchain It is effective because: The process of adding a block to a Blockchain is a work-intensive process which involves a hashing algorithm Blockchains are able to achieve Byzantine Fault Tolerance with the help of proof of work
- 52. Byzantine Fault Tolerance Theprocess is very hard because it is heavily reliant on values obtained from the existing Blockchain It is effective because: The process of adding a block to a Blockchain is a work-intensive process which involves a hashing algorithm To have any meaningful impact, the hacker would have to take a lot of time producing sufficient proof of work Blockchains are able to achieve Byzantine Fault Tolerance with the help of proof of work
- 53. Interesting! Okay, so imagineif you and I were miners…
- 54. …and we bothadd a block to the Blockchain at the same time!
- 55. How do wehandle such a situation?
- 56. Although these don’t happenvery often, there is a way to decide whose block should be added to the Blockchain
- 57. In an idealscenario, you just need to be the first one to find the hash value…
- 58. Adding 2 blocksat the same time The hash value of the block only needs to be within the predetermined limit Hash Value Obtained Miner 1 varies nonce value If less than target If greater than target Value accepted! Value Denied! Block is added to the Blockchain Block is not added to the Blockchain
- 59. Adding 2 blocksat the same time But in this case, two people have obtained a satisfactory hash value at the same time Hash Value Obtained Miner 1 varies nonce value If less than target If greater than target Value accepted! Value Denied! Hash Value Obtained Miner 2 varies nonce value If less than target If greater than target Value accepted! Value Denied! Miner 1’s block is added to the Blockchain Miner 2’s block is added to the Blockchain
- 60. Adding 2 blocksat the same time 50% of the network has accepted Miner 1’s block and the rest has accepted Miner 2’s
- 61. Adding 2 blocksat the same time 50% of the network has accepted Miner 1’s block and the rest has accepted Miner 2’s This half of the network continues to work considering Miner 1’s block to be the right block
- 62. Adding 2 blocksat the same time 50% of the network has accepted Miner 1’s block and the rest has accepted Miner 2’s This half of the network continues to work considering Miner 1’s block to be the right block The other half of the network continues to work considering Miner 2’s block to be the right block
- 63. Adding 2 blocksat the same time The original Blockchain The Blockchain with Miner 1’s block The Blockchain with Miner 2’s block However, only one miner’s Blockchain can be allowed to remain
- 64. Adding 2 blocksat the same time This is achieved by selecting the sub-chain to which miners have first added a block Miner 3 adds a new block to Miner 1’s Blockchain
- 65. Adding 2 blocksat the same time This is achieved by selecting the sub-chain to which miners have first added a block It is then accepted as the dominant Blockchain and is used by everyone in the network This is verified by everyone in the network
- 66. Adding 2 blocksat the same time The other version of the Blockchain is completely discarded
- 67. Adding 2 blocksat the same time The other version of the Blockchain is completely discarded The entire network accepts Miner 1’s Blockchain
- 68. This situation isalso called an accidental fork
- 69. So, I heardabout a version of Bitcoin called Bitcoin Cash…what’s the difference between them?
- 70. There are otherkinds too! Like Bitcoin Gold and Bitcoin Private! These are outcomes of a ‘Fork’
- 71. Fork A fork issaid to have taken place when a Blockchain diverges into two potential paths A fork happens when the users of a network cannot come to an agreement with regards to: A network’s transaction details New rules to validate transactions
- 72. Fork A fork issaid to have taken place when a Blockchain diverges into two potential paths A fork happens when the users of a network cannot come to an agreement with regards to: A network’s transaction details New rules to validate transactions Fork Soft Fork Hard Fork There are two types of Forks:
- 73. Fork: Soft Fork Asoft fork occurs when a change in software protocol makes new blocks added to the blockchain (following the new rules) backward compatible
- 74. Fork: Soft Fork Italso requires a majority of the users to commit to that change to be successful A soft fork occurs when a change in software protocol makes new blocks added to the blockchain (following the new rules) backward compatible
- 75. Fork: Soft Fork Italso requires a majority of the users to commit to that change to be successful Tighter rules Cosmetic changes Adding functions Not affecting the structure A soft fork could be used for: A soft fork occurs when a change in software protocol makes new blocks added to the blockchain (following the new rules) backward compatible
- 76. Fork: Soft Fork Considerthe scenario, where the accepted block size is to be reduced from 1 MB to 100KB It is approved by a majority of the network
- 77. Fork: Soft Fork Considerthe scenario, where the accepted block size is to be reduced from 1 MB to 100KB It is approved by a majority of the network Old version (approves blocks less than 1 MB) New version (approves only blocks less than 100 KB) 1 MB
- 78. Fork: Soft Fork Considerthe scenario, where the accepted block size is to be reduced from 1 MB to 100KB It is approved by a majority of the network Old version (approves blocks less than 1 MB) New version (approves only blocks less than 100 KB) 1 MB APPROVED!
- 79. Fork: Soft Fork Considerthe scenario, where the accepted block size is to be reduced from 1 MB to 100KB It is approved by a majority of the network Old version (approves blocks less than 1 MB) New version (approves only blocks less than 100 KB) 1 MB REJECTED!
- 80. Fork: Soft Fork Considerthe scenario, where the accepted block size is to be reduced from 1 MB to 100KB It is approved by a majority of the network Old version (approves blocks less than 1 MB) New version (approves only blocks less than 100 KB) <100KB APPROVED!
- 81. Fork: Soft Fork Considerthe scenario, where the accepted block size is to be reduced from 1 MB to 100KB It is approved by a majority of the network Old version (approves blocks less than 1 MB) New version (approves only blocks less than 100 KB) APPROVED! <100KB
- 82. Over time, peoplefollowing the older version of the Blockchain would be forced to move to the new one, since none of their transactions would go through Fork: Soft Fork
- 83. Now, let’s talkabout Hard Forks Fork: Hard Fork
- 84. Fork: Hard Fork Ahard fork involves a change in software protocol so radical that it forces a new Blockchain to be created
- 85. Fork: Hard Fork Ahard fork involves a change in software protocol so radical that it forces a new Blockchain to be created Blockchain that hasn’t upgraded Blockchain that has upgraded according to software protocols
- 86. Fork: Hard Fork Ahard fork involves a change in software protocol so radical that it forces a new Blockchain to be created Blockchain that hasn’t upgraded Blockchain that has upgraded according to software protocols Both these Blockchains are considered valid and legitimate. The new path would follow new updated rules, while the other one keeps following the old path
- 87. Fork: Hard Fork Bitcoinperformed a hard fork on 1st August 2017, which created Bitcoin Cash
- 88. Fork: Hard Fork BitcoinCash was different from regular Bitcoin because: It increased the block size from 1 MB to 8 MB Transaction costs were significantly lesser than that of the original
- 89. Other than withBitcoin, where else is Blockchain used?
- 90. Other areas whereBlockchain is used Preventing voter fraud
- 91. Other areas whereBlockchain is used Preventing voter fraud Blockchain helps in the following ways: Ensuring there’s only one vote per person
- 92. Other areas whereBlockchain is used Preventing voter fraud Blockchain helps in the following ways: Ensuring there’s only one vote per person Ensuring that the data is not being tampered with
- 93. Other areas whereBlockchain is used Preventing voter fraud Blockchain helps in the following ways: Ensuring there’s only one vote per person Ensuring that the data is not being tampered with Creating an immutable ledger to record the votes as tallied
- 94. Other areas whereBlockchain is used Quality assurance
- 95. Other areas whereBlockchain is used Quality assurance Ensuring the products are of highest quality
- 96. Other areas whereBlockchain is used Quality assurance Ensuring the products are of highest quality Being able to identify problem areas easily
- 97. So where doyou think Blockchain’s going to go in the future?
- 98. The future ofBlockchain Increased adoption among organizations
- 99. The future ofBlockchain Increased adoption among organizations As of now, only 1% of all organizations have begun using Blockchain technologies. This percentage is expected to increase in the next 5 years or so…
- 100. The future ofBlockchain Increased adoption among organizations A need for Blockchain regulations
- 101. The future ofBlockchain Increased adoption among organizations A need for Blockchain regulations The rules and regulations surrounding Blockchain are not very clear for organizations to be comfortable using it
- 102. The future ofBlockchain Increased adoption among organizations A need for Blockchain regulations Removing the negative speculations surrounding Blockchain
- 103. The future ofBlockchain Increased adoption among organizations A need for Blockchain regulations Removing the negative speculations surrounding Blockchain Several industries fear that Blockchain will disrupt their normal functioning and believe that the adoption of a Blockchain system isn’t worth the effort
- 104. The future ofBlockchain Increased adoption among organizations A need for Blockchain regulations Removing the negative speculations surrounding Blockchain An increase in job opportunities for skilled personnel
- 105. The future ofBlockchain Increased adoption among organizations A need for Blockchain regulations Removing the negative speculations surrounding Blockchain An increase in job opportunities for skilled personnel As the technology matures, there would be a huge requirement for individuals who can understand and implement the concepts of Blockchain
- 106. What options dopeople have for jobs involving Blockchain at the moment?
- 107. Among the manyjob opportunities, the two most famous ones are Blockchain architect and Blockchain developer Blockchain Jobs
- 108. Blockchain jobs Blockchain DeveloperBlockchain Architect
- 109. Blockchain jobs Blockchain DeveloperBlockchain Architect A Blockchain developer: • Designs, implements and supports a distributed Blockchain network • Analyzes user requirements • Designs technology around a certain business model • To build and launch a Blockchain network
- 110. Blockchain jobs Blockchain DeveloperBlockchain Architect
- 111. Blockchain jobs Blockchain DeveloperBlockchain Architect A Blockchain architect: • Designs and architects Blockchain industry solutions • Creates Blockchain networks leveraging Blockchain technologies and platforms • Produces high quality code based on project requirements • Conceptualizes, designs and builds Blockchain frameworks and assets
- 112. Wow! Blockchain is amazing!Thanks for explaining these things to me!
- 113. I’m glad Icould help you! Now let’s go through everything I’ve taught you today:
- 114. Here’s what you’velearnt