Introduction
Crypto Coin Market Capitalizations
https://coinmarketcap.com/
Crypto Coin Market Capitalizations
https://coinmarketcap.com/
Overview of
Blockchain Technologies (1)
• Blockchain is a digital ledger in which transactions made in bitcoin or
another cryptocurrency are recorded chronologically and publicly
0 1 2 4 5
• A peer-to-peer infrastructure 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
• No central authority
• Decentralized trustless protocol
• Solves double spending problem
• Employs consensus algorithm for reaching consensus about the current
state of the blockchain
Overview of
Blockchain Technologies (2)
• Value/tokens/ownership can be tracked and
exchanged without requiring a central point of control
• Incentive driven ecosystem
• Nodes (miners) verify transactions. They perform proof
of work. In return, they win rewards and collect
transaction fees.
• Nodes are like witnesses
• 51% attack may occur
if 51% of hash power is
held by one party.
Each node maintains a ledger (blockchain)
Bitcoin in Merkle’s words …
(reference: http://merkle.com/papers/DAOdemocracyDraft.pdf )
• If nuclear war destroyed half of our planet, it would continue to live,
uncorrupted. It would continue to offer its services. It would continue to
pay people to keep it alive.
• The only way to shut it down is to kill every server that hosts it. Which is
hard, because a lot of servers host it, in a lot of countries, and a lot of
people want to use it.
• Realistically, the only way to kill it is to make the service it offers so useless
and obsolete that no one wants to use it. So obsolete that no one wants to
pay for it. No one wants to host it. Then it will have no money to pay
anyone. Then it will starve to death.
• But as long as there are people who want to use it, it’s very hard to kill, or
corrupt, or stop, or interrupt.
Blockchain
(at the crossroads of distributed systems, cryptography, governance, economics)
Source: https://twitter.com/josephkelly/status/924013397351583745
Size of Bitcoin Blockchain
https://blockchain.info/charts/blocks-size
Bitcoin Blockchain Explorer
https://blockchain.info/
Bitcoin Transaction Visualization
https://bitbonkers.com/
Bitcoin Nodes
https://bitnodes.21.co/
Bitcoin Nodes
https://coin.dance/nodes
Blockchain Model
• Trustless
• Pay to Play (no free lunch)
• No middle man
• Immutable
Traditional Centralized Models
provide services / goods
(users accounts/transaction data)
Company
user user user
Blockchain Model
(decentralized)
(users accounts /transaction data)
Blockchain
provide services / goods
user user user Company
Ethereum
https://www.ethereum.org/
(description source https://www.ethereum.org/)
Ethereum Nodes
https://ethernodes.org
A simple smart contract example
pragma solidity ^0.4.0; function assignhours(address addr,uint numhours)
public owneronly {
contract Machine { if (totalhours >= numhours ) {
totalhours = totalhours - numhours ;
address public owner; balances[addr] = balances[addr] + numhours ;
mapping (address => uint) public balances; }
uint public totalhours ; }
modifier owneronly { function getbalance(address addr) constant public
if (msg.sender != owner) { returns (uint retval) {
throw ; return(balances[addr]) ;
} }
_;
} function transfer(uint amount, address dest) public {
if (balances[msg.sender] >= amount ) {
// constructor balances[msg.sender]
function Machine() { = balances[msg.sender] - amount ;
owner = msg.sender ; balances[dest] = balances[dest] + amount ;
totalhours = 365*24 ; }
} }
}
Ethereum Blockchain Explorer
https://etherscan.io/
http://ebloc.org
(our own ethereum based blockchain infrastructure)
• course projects will be done on eBloc
Exercise on Bitcoin Testnet
• Create a wallet and bitcoin address at:
https://testnet.blockchain.info/
• Get some free bitcoins from
https://testnet.coinfaucet.eu/en/
• Wallet login address:
https://testnet.blockchain.info/wallet/#/login
• Write your bitcoin address here. Send bitcoins to
your friends in CMPE 483 class
https://goo.gl/AZeck2
