Introduction to Blockchain

Technology
 WHAT IS BLOCKCHAIN?

Blockchain is another class

of thing like the Internet.

It is for any form of assets registry, inventory, and

exchange, including every area of finance, economics,
and money.

Melanie Swan, Founder, Institute for Blockchain Studies.

 WHAT IS BLOCKCHAIN?

Blockchain technology is
secured with cryptographic
techniques.
making it near impossible for hackers to make changes to it.
The only way to make changes would be to hack more than
half of the nodes in the blockchain, which again, is why it is
more secure to have more nodes/computers running the
blockchain.
 WHAT IS BLOCKCHAIN?

The blockchain is a secured

protocol enabling peer- to-
pear exchanges

on a distributed network in a secured, public and non-

repudiable.
HOW DOES BLOCKCHAIN WORK?

• Blockchain keeps a record of

all data exchanges.

• It utilizes a distributed
system to verify each
transaction.
 CONCEPT OF KEYS

Public Key Public Key Digital

Signature

• Your public key is how others are able to identify you.

• Your private key gives you the power to digitally sign and authorize
different actions on behalf of this digital identity when used with your
public key.
 Each transaction in that ledger
will have the same data: a digital
signature, a public key, a
timestamp, and a unique ID.
The anonymity of cryptocurrencies

come from the fact that your public key is

just a randomized sequence of numbers

and letters.
KEY ADVANTAGES
 Simplifying Business

Most businesses use different

systems, so it is hard for them to
share a database with
another business.
 Trust & Transparency

Trust is an essential part of getting the

difficult
world of blockchain explained.
 Cost Effective

As the blockchain is a trusted peer-to-peer

network,
it removes the need for a central third
party.
 Unbreakable

Once a transaction is confirmed, it is

stored on the
ledger and protected using cryptography.
 Availability

Blockchain is a decentralized peer-to-peer

network
and there is no central point of failure.
 Decentralized

Decentralization is one of the core — and

most
important — advantages of blockchain
technology.
BITCOIN

Bitcoin is the first Blockchain

application.

Bitcoin is a virtual currency that

blossomed in public consciousness
after its price-per-coin rose above
$13,000 in early 2018.
 Cryptocurrency Defined

• Cryptocurrencies are lines

of computer code that hold
monetary value.
• Cryptocurrency is also
known as digital currency.
WHAT ARE BITCOIN?

• Bitcoin was the first popular

cryptocoin.
• A pseudonymous software
developer going by the name
of Satoshi Nakamoto
proposed bitcoin in 2008.
• Because bitcoin was the first major
cryptocurrency, all digital currencies created
since then are called altcoins, or alternative
coins.
• One of the advantages of bitcoin is that it can
be stored offline on a person's local
hardware.
• On the flip side, if a person loses access to
the hardware that contains the bitcoins, the
currency is gone forever.
 HOW BITCOINS
WORK?

• Bitcoins are completely virtual coins designed to be self-contained for their

value, with no need for banks to move and store the money.
• Bitcoins are traded from one personal wallet to another.
• Bitcoins are forgery-resistant.
ABUSE OF BITCOINS
• Technical weakness — time
delay in confirmation.
• Human dishonesty — pool
organizers taking unfair
share slices
• Human mismanagement
— online exchanges.
 THREE REASONS WHY BITCOINS ARE
SUCH A BIG DEAL
• Bitcoins are not created by any
central bank or regulated by any
government.
• Bitcoins completely bypass banks.
• Bitcoin transactions are
irreversible.
END

Presented by:
Meggan Cabalu x Nova Alintahan
Angel Hormillosa x Ridell Villanueva

BTVTED CP 1A