Blockchain Technology

Dr. Kaushal Shah

Assistant Professor
Computer Engineering
PDEU
The compilation of the PPTs is from the source:
All the different articles and research papers available on internet and NPTEL
 Outline for Today
• Types of Consensus
 Consensus basic Types
• Value (market value – outside the blockchain
dynamics – based on the market)
• State (Consensus achieved by the blockchain
itself on the state of the ledger)
• Rules (Rules of the blockchain – hard/soft
forks when rules are changed)
Security Value Cycle
 51% Attacker Can
• Steal coins from existing address? No
• Suppress some transactions?
– From the block chain Yes
– From the P2P network No
• Change the block reward? No
• Destroy confidence in Bitcoin? Yes
 Few Questions?
• How do we get from consensus to currency?
• What else can we do with consensus?
 Bitcoin Consensus
• An Append‐only ledger of transactions
• Decentralized consensus with probabilistic
guarantee
• Miners incentivized to validate transactions
 Miner Currency Relation
• To incentivize miners within the blockchain we
need the blockchain to have a currency
• Blockchains that do not generate currency
cannot have miners
An Account Based Ledger
A transaction‐based ledger
Merging
Multiple Payments
Questions???