Overview-of-Blockchain-Technology-and-Ethereum.pptx

Overview of Blockchain
Technology and
Ethereum
Blockchain technology is a decentralized and immutable ledger that
allows for secure and transparent transactions. Ethereum is a leading
blockchain platform known for its smart contracts and decentralized
applications.
by EZEKIEL SAMUEL

What is Blockchain
Technology?
Blockchain technology is a distributed and decentralized ledger that
records digital transactions in a secure and transparent manner. It
eliminates the need for intermediaries and ensures immutability of
data.

Blockchain technology is a distributed
database that is shared among the nodes of
a computer network. As a database, a
blockchain stores information electronically
in digital format. Blockchains are best
known for their crucial role in
cryptocurrency systems, such as Bitcoin, for
maintaining a secure and decentralized
record of transactions. The innovation with a
blockchain is that it guarantees the fidelity
and security of a record of data and
generates trust without the need for a
trusted third party.

How Does Blockchain Work?
1 Transaction Creation
Participants create and digitally sign
transactions using cryptographic
keys.
2
Transaction Verification
Transactions are broadcasted to the
network and verified by miners
using consensus algorithms. 3 Block Formation
Verified transactions are added to a
block, which is linked to previous
blocks through cryptographic
hashes.
4
Blockchain Consensus
Miners compete to solve a complex
mathematical puzzle to add the
block to the blockchain and earn
rewards.
5 Blockchain Verification
The blockchain is continuously
verified and updated by network
nodes to maintain its integrity.

Applications of Blockchain Technology
Finance
Blockchain enables secure and efficient
digital payments, cross-border
transactions, and smart contracts.
Supply Chain
Blockchain ensures transparency,
traceability, and authenticity of products
throughout the supply chain.
Healthcare
Blockchain can securely store and share
patient data, streamline medical record
management, and enhance research
capabilities.
Real Estate
Blockchain simplifies property
transactions, reduces fraud, and provides
transparent and tamper-proof title records.

Advantages and Disadvantages of
Blockchain Technology
Advantages
• Enhanced security and transparency
• Elimination of intermediaries
• Faster and more efficient transactions
• Improved traceability and accountability
Disadvantages
• Scalability challenges
• Energy-intensive mining processes
• Regulatory uncertainties
• Complexity of implementation

Exploring Blockchain Technologies
Blockchain is a revolutionary technology that combines three essential components: cryptographic
keys, a peer-to-peer network with a shared ledger, and a computing infrastructure for storing
transactions and records. Cryptography keys ensure secure digital identity references, allowing for
authorized and controlled transactions. These digital signatures are integrated into the peer-to-
peer network, where a consensus is reached through mathematical verifications. This enables
secure and successful interactions among network-connected parties.

Exploring Blockchain Layers
Blockchain layers are built on top of each other, with each layer
having its own consensus mechanism, rules, and functionality. This
allows for greater scalability, as transactions can be processed in
parallel across different layers. Second layer solutions like the
Lightning Network can provide faster and cheaper transactions by
creating payment channels between users.

Understanding Blockchain
Blocks
Blocks are the building blocks of a blockchain. They consist of a
header, data section, and a hash. The header contains metadata, such
as a timestamp and previous block's hash. The data section contains
actual information like transactions and smart contracts. Lastly, the
hash is a unique cryptographic value used for verification purposes.

Understanding Different
Types of Blockchain
Blockchain technology has given rise to various types of blockchains.
Private blockchains are used by private businesses to customize
network parameters and security options. Public blockchains, the
origin of cryptocurrencies, offer a decentralized network for peer-to-
peer transactions. Permissioned blockchains allow authorized access
to a private network and offer better structure for assigning
participation in transactions. Consortium blockchains, managed by
multiple organizations, offer better security for collaboration. Hybrid
blockchains combine public and private components for a balance
between transparency and privacy.

Understanding Blockchain
Protocols
Blockchain protocols are used to validate transactions and add them
to the blockchain. Bitcoin was the first blockchain protocol and is still
the most widely used. Ripple is similar to Bitcoin and is the second
largest cryptocurrency by market capitalization. Ethereum is a more
general platform that includes a scripting language for application
development.

Here are the fundamental concepts of
blockchain technology:
Decentralization: A blockchain is decentralized, meaning that it is not controlled by any single
entity. Instead, it is maintained by a network of computers around the world. This makes it very
resistant to hacking and censorship. Immutability: Once data is added to a blockchain, it is very
difficult to alter or delete. This is because each block in the chain contains a hash of the previous
block, as well as a hash of its own contents. If any data in a block is changed, the hash of the block
will also change, and the entire chain will become invalid. Transparency: All transactions on a
blockchain are publicly visible. This means that anyone can audit the blockchain to verify that
transactions are valid and that the ledger has not been tampered with. Other key concepts:
Cryptography: Blockchain technology uses cryptography to secure data and transactions.
Cryptography is a branch of mathematics that deals with the encryption and decryption of
information. Consensus mechanism: A consensus mechanism is a way for the nodes in a
blockchain network to agree on the state of the ledger. There are a number of different consensus
mechanisms, such as proof-of-work and proof-of-stake. Smart contracts: Smart contracts are self-
executing contracts that are stored on a blockchain. They can be used to automate a wide variety
of transactions, such as financial agreements, supply chain management, and voting. Blockchain
technology has the potential to revolutionize many industries and applications. It can be used to
create more secure, transparent, and efficient systems for everything from financial transactions to
supply chain management to voting.

Decentralization:
Decentralization is the key feature of blockchain technology. In a decentralized blockchain, there is
no single central authority that can control the network. In decentralization,the decision-making
power is distributed among a network of nodes that collectively validate and agree on the
transactions to be added to the blockchain. This decentralized nature of blockchain technology
helps to promote transparency, trust, and security. It also reduces the risk to rely on a single point
of failure and minimizes the risks of data manipulation

Here are some examples of how
blockchain technology is being used
today:
Cryptocurrencies: Bitcoin and other cryptocurrencies use blockchain technology to record and
secure transactions. Financial services: Blockchain technology is being used to develop new
financial products and services, such as decentralized exchanges and smart contracts. Supply chain
management: Blockchain technology can be used to track the movement of goods through a
supply chain, from raw materials to finished products. Voting: Blockchain technology can be used
to create more secure and transparent voting systems.

Future of Blockchain Technology and
Ethereum
Mass Adoption
Blockchain technology is
expected to see wider
adoption across various
industries, revolutionizing
processes and enhancing
security.
Interoperability
Efforts are being made to
enable interoperability
between different blockchain
networks, boosting the
scalability and usability of
Ethereum.
Smart Cities and IoT
Blockchain can play a crucial
role in building smarter cities
by enabling secure and
efficient management of IoT
devices and data.

Introduction to Ethereum
Ethereum is a decentralized blockchain platform that enables the development of smart contracts
and decentralized applications (DApps). It uses its cryptocurrency called Ether (ETH) for
transactions and gas fees within the network.

Smart Contracts and DApps
Smart Contracts
Smart contracts are self-
executing agreements
with the terms of the
agreement directly
written into lines of code.
They automatically
enforce the contract
terms and eliminate the
need for intermediaries.
Decentralized
Applications (DApps)
DApps are applications
that run on a
decentralized network,
utilizing the benefits of
blockchain technology.
They are open-source,
transparent, and resistant
to censorship.
Ethereum Virtual
Machine (EVM)
The EVM is a runtime
environment that
executes smart contracts
on the Ethereum
network. It ensures
consistency and provides
security through its
sandboxed execution
environment.

The Ethereum Virtual Machine (EVM) is the
runtime environment for smart contracts on
Ethereum. Smart contracts are the executable
programs that run on the Ethereum blockchain.
Smart contracts are written using specific
programming languages that compile to EVM
bytecode (low-level machine instructions called
opcodes).

Unlocking the Full Potential
of Smart Contracts on
Ethereum
Smart contracts are more than just open source libraries - they're
open API services that run constantly and can't be shut down. With
public functions that anyone can use, smart contracts enable users
and dapps to interact with the Ethereum blockchain without needing
permission. And with the ability to deploy new contracts, developers
can create custom solutions to meet their specific needs. The
possibilities are endless.

Ethereum accounts
An Ethereum account is an entity with an ether (ETH) balance that can send transactions on
Ethereum. Accounts can be user-controlled or deployed as smart contracts.
There are two types of Ethereum accounts:
Externally owned accounts (EOAs): EOAs are controlled by a private key. They can send transactions
and interact with smart contracts. Contract accounts: Contract accounts are created when a smart
contract is deployed to the Ethereum network. They can only send transactions in response to
receiving a transaction. Ethereum transactions

An Ethereum transaction is a message
sent from one account to another on
the Ethereum blockchain. Transactions
can be used to send ETH, deploy smart
contracts, or interact with existing
smart contracts.
A transaction typically contains the following information:
From: The address of the account sending the transaction. To: The address of the account
receiving the transaction. Value: The amount of ETH being sent (or zero if the transaction is
deploying a smart contract or interacting with an existing smart contract). Gas: The amount of gas
that the transaction is willing to pay. Gas is a unit of account used to measure the amount of
computational work required to execute a transaction. Data: The data that the transaction is
sending to the recipient account. This data can be used to execute a function on a smart contract
or to send a message to another account. How Ethereum transactions work
When a user wants to send a transaction, they first need to sign the transaction with their private
key. This ensures that the transaction is authentic and that it cannot be modified by anyone else.
Once the transaction is signed, it is broadcast to the Ethereum network. All nodes on the network
then verify the transaction and execute it if it is valid.
Once a transaction is executed, it cannot be reversed. This is because all transactions are stored on
the Ethereum blockchain, which is a public and immutable ledger.

Examples of Ethereum
transactions
Here are some examples of Ethereum transactions:
Sending ETH from one account to another Deploying a smart contract
Interacting with a smart contract, such as buying a token or executing
a function

The Ethereum blockchain is a
decentralized platform that enables
developers to build and deploy
decentralized applications (DApps). It is
the second-largest cryptocurrency by
market capitalization, after Bitcoin.
The Ethereum blockchain is powered by a cryptocurrency called Ether (ETH). ETH is used to pay for
the computational resources required to execute smart contracts on the Ethereum network.
Smart contracts are self-executing contracts that are stored on the blockchain. They can be used to
automate a wide variety of transactions, such as financial agreements, supply chain management,
and voting.
The Ethereum blockchain is decentralized, meaning that it is not controlled by any single entity.
Instead, it is maintained by a network of computers around the world. This makes it very resistant
to hacking and censorship.

Here is a simplified overview of how the
Ethereum blockchain works:
A user submits a transaction to the Ethereum network. The transaction contains the smart contract
code that the user wants to execute, as well as the data that the smart contract needs to execute.
The transaction is broadcast to all nodes on the Ethereum network. Each node on the network
verifies the transaction and executes the smart contract code. The nodes then agree on the state of
the Ethereum blockchain and update their copy of the blockchain. The Ethereum blockchain is still
in its early stages of development, but it has the potential to revolutionize many industries and
applications. It can be used to create more secure, transparent, and efficient systems for
everything from financial transactions to supply chain management to voting.

Here are some of the
benefits of the Ethereum
blockchain:
Decentralization: The Ethereum blockchain is decentralized, meaning
that it is not controlled by any single entity. This makes it very
resistant to hacking and censorship. Security: The Ethereum
blockchain is very secure, thanks to its use of cryptography and
consensus mechanisms. Flexibility: The Ethereum blockchain is very
flexible and can be used to develop a wide variety of decentralized
applications. The Ethereum blockchain is a powerful tool for
developing decentralized applications. It is decentralized, secure, and
flexible. If you are interested in developing decentralized applications,
then you should learn more about the Ethereum blockchain.

Gas in Ethereum is a unit of account
that is used to measure the amount of
computational work required to
execute a transaction. The higher the
gas price, the more likely a miner is to
pick up your transaction and process it.
Gas is paid in ETH, and the amount of gas required to execute a transaction varies depending on
the complexity of the transaction. For example, a simple transaction that sends ETH from one
account to another will require less gas than a complex transaction that deploys a smart contract
or interacts with an existing smart contract.

Nodes
Nodes are computers that run the Ethereum software and are connected to the Ethereum
network. They play a vital role in the network by:
Relaying transactions between other nodes Validating transactions and blocks Storing a copy of
the Ethereum blockchain Nodes are essential for the security and decentralization of the
Ethereum network. Without nodes, there would be no way to relay transactions or validate blocks.
There are two main types of nodes:
Full nodes: Full nodes download and store a complete copy of the Ethereum blockchain. This
makes them the most secure and reliable nodes, but they also require more storage space and
processing power. Light nodes: Light nodes only download and store a subset of the Ethereum
blockchain. This makes them less secure and reliable than full nodes, but they also require less
storage space and processing power. Miners
Miners are nodes that participate in the Ethereum consensus mechanism. They are responsible for
validating transactions and adding them to the Ethereum blockchain in order to earn rewards.
Miners use a process called proof-of-work to validate transactions. In proof-of-work, miners
compete to solve a complex mathematical puzzle. The first miner to solve the puzzle gets to add
the next block to the blockchain and earn a reward.
Miners play an important role in the Ethereum network by securing it and ensuring that the
blockchain is accurate. Without miners, there would be no way to validate transactions or add

To create a transaction, the sender
must specify the following information:
Recipient: The address of the account that the transaction is being sent to. Amount: The amount
of ETH being sent (or zero if the transaction is deploying a smart contract or interacting with an
existing smart contract). Gas price: The amount of ETH that the sender is willing to pay per unit of
gas. Gas limit: The maximum amount of ETH that the sender is willing to spend on gas for the
transaction. Data: The data that the transaction is sending to the recipient account. This data can
be used to execute a function on a smart contract or to send a message to another account. Once
the transaction is created, the sender must sign it with their private key. This ensures that the
transaction is authentic and that it cannot be modified by anyone else.
Once the transaction is signed, it is broadcast to the Ethereum network. All nodes on the network
then verify the transaction and execute it if it is valid.
Once a transaction is executed, it cannot be reversed. This is because all transactions are stored on
the Ethereum blockchain, which is a public and immutable ledger.
Here is a high-level overview of how Ethereum transactions are created, signed, and executed:
The sender creates a transaction and specifies the recipient, amount, gas price, gas limit, and
data. The sender signs the transaction with their private key. The sender broadcasts the signed
transaction to the Ethereum network. All nodes on the network verify the transaction and execute
it if it is valid. Once a transaction is executed, it cannot be reverse

Overview-of-Blockchain-Technology-and-Ethereum.pptx

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