Blockchain Technology - The Complete Course for Beginners including Blockchain Architecture | Jitesh Khurkhuriya | Skillshare

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Blockchain Technology - The Complete Course for Beginners including Blockchain Architecture

teacher avatar Jitesh Khurkhuriya

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

27 Lessons (2h 24m)
    • 1. Course Introduction

    • 2. Basics - Understanding the Blocks in a Blockchain

    • 3. Basics - What is a Blockchain?

    • 4. Basics - What is a Distributed Ledger?

    • 5. Basics - Difference between Database and Blockchain.

    • 6. Basics - Permissionless and Permissioned Blockchain

    • 7. Basics - What is Immutability of Data?

    • 8. Cryptography - What is Cryptography?

    • 9. Cryptography - Cryptographic Hash function

    • 10. Cryptography - Merkle Tree and Merkle Root in a Block

    • 11. Cryptography - Symmetric and Asymmetric Encryption

    • 12. Consensus Algorithm - Peer to Peer Network

    • 13. Consensus Algorithm - What is Consensus Algorithm?

    • 14. Consensus Algorithm - Proof of Work

    • 15. Consensus Algorithm - Proof of Work Hash Generator in Python

    • 16. Digital Currency - Bitcoin

    • 17. Digital Currency - How Bitcoin Works?

    • 18. Digital Currency - Introduction to Smart Contract

    • 19. Digital Currency - Decentralised Applications

    • 20. Technology Platform - Distributed Ledger Technologies

    • 21. Technology Platform - Ethereum Architecture

    • 22. Technology Platform - Hyperledger - Linux Foundation project

    • 23. Technology Platform - Corda - R3 Reference Architecture

    • 24. Blockchain in Business - Supply Chain and Provenance

    • 25. Blockchain in Business - Finance

    • 26. Conclusion - Blockchain Challenges

    • 27. Conclusion - Evaluate Blockchain

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About This Class

Learn, from Blockchain Technology Fundamentals to advance architecture of Smart Contracts, Ethereum, Hyperledger & Corda.

Blockchain is said to be the new internet. So how and where do you get the right mix of fundamentals, advance topics and technology behind Blockchain? This course on Blockchain will prepare you for a solid foundation from where you can launch your journey in the world of Blockchain. You will get to understand everything about Blockchain and related technologies such as Smart Contract, Ethereum as well as Blockchain applications in real world.

The course will help you learn,

  1. Blockchain Basics

  2. Distributed Ledger Technology and how it is applied in Blockchain

  3. Difference between Database and Blockchain

  4. Cryptography and Cryptographic Hash Functions in Blockchain

  5. How Consensus Algorithm and Block mining of a Blockchain works using - Peer-to-Peer network, Proof-Of-Work Algorithm

  6. Sample code to understand how Hashing works

  7. How Cryptocurrency works?

  8. What is a Smart Contract and how it works in a Blockchain environment?

  9. How to choose Blockchain over traditional systems?

  10. Architecture of Ethereum, Hyperledger and Corda; three leading Blockchain technology platforms

  11. Which Blockchain platforms among Ethereum, Hyperledger or Corda will be effective for you?

  12. How Blockchain will revolutionize various industries including Supply Chain, Finance, Provenance?

You will also be able to differentiate between traditional systems, Blockchain as well as make critical business decisions on whether to use Blockchain in a given scenario.

This course starts with basics and fundamentals of Blockchain and then moves on to explain the architecture of some of the leading Blockchain Platforms. This course of Basics of Blockchain has 29 lectures spread over 2.5 hours. So it is more than just basics. This course prepares you by creating the solid foundation on various concepts of Blockchain such as Cryptographic Hash Functions, Smart Contracts, Encryption, Consensus Algorithms, Distributed Ledger as well as mining, We then move on to learn the Ethereum, Hyperledger and Corda along with the business uses of Blockchain in Finance and Supply Chain.

This course is for you, if you are looking for answers to following questions,

  • Do you want to get deep understanding of various concepts of Blockchain and the technology behind it?

  • Do you wish to get a quick overview with enough details to build a solid foundation on this most disruptive technology of Blockchain since the invention of internet?

  • Do you want to learn various Blockchain technology platforms that you can propose and implement in your organisation?

  • Wondering what is Blockchain smart contract and digital currency?

  • Do you want to get architectural overview and Business implementations of Blockchain Platforms of IBM Hyperledger, Ethereum and Corda?

  • Get enough understanding of how Blockchain powers cryptocurrency and how it works?

Top 3 Reasons why you should learn Blockchain,

1. High Demand for Blockchain 

Blockchain and related jobs have seen a growth of more than 200% year on year. Blockchain is also among the top 5 skills in demand. Companies such as IBM, Mastercard, JP Morgan Chase have started working on Blockchain technology and creating pioneering solutions.

2. Futuristic Outlook

The adoption of Blockchain is unlocking many new capabilities in the areas of Finance, Supply chain, Manufacturing, Healthcare as well as identity management. It is said that all those applications that can be decentalised using Blockchain technology, will be decentralised. So by going through and learning concepts of Blockchain from this course, you will be ready for any disruption that will be caused.

3. Complete disruption of ecosystems

Bitcoin is one example of the implementation of Blockchain technology. It completely disrupted the payment ecosystem across the world. All industries are beginning to realise the potential of Blockchain and have started adopting Blockchain technologies in all processes. So when the change comes which is inevitable, you will be ready with the right skills.

So get enrolled and I will see you inside the course... 

Meet Your Teacher

I have over 20 years of technology experience and worked as programmer, Product Head as well as the Data Scientist. 

I have worked with various fortune 500 companies and governments across the world during my career.

As the Data Scientist and Anti-Fraud Expert, I was the member of the high-profile team to suggest tax reforms and amendments in VAT, Customs and Income Tax based on fraud pattern analysis, countrywide data mining and analysis, business process security analysis. This not only contributed to a revolutionary change in the tax processes but also reduced the tax and customs frauds. 

As a seasoned leader in Digital Transformation, Jitesh has developed and executed strategies that generated high top and bottom line revenue streams.

See full profile

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1. Course Introduction: Hello and welcome to this course. This course aims to create a solid foundation before you embark on your future journey in Blockchain technology. Unlike a long list off lectures, this course has been divided into multiple sections for structured understanding off the Blockchain technology. We will slowly go from the basics all the way up toe discussing the technology architecture off some of the leading platforms. In the second section, we will cower basics off what is a block on the Blockchain as well as various components off it. We will also look at the concepts off distributed ledger using the example off your course for chase. Moving further, I will try to clear how Blockchain on databases are different as well as various types off block change. In the section off cryptography, we will see various properties off cryptography. What is encryption? The explanation off Markle Tree and Markle route as well as different types off encryptions , using very simple examples off safe and keys. We will then move on to some of the advanced topics off peer to peer network on how it is different from traditional networks. We will also see what is consensus algorithm using Byzantine Generals concept. During proof off work, I will actually generate some proof off work on its hashes and show how the essential to 56 ash works by section five. You would be ready to understand how the Bitcoin works. We will also see what is a smart contract using the example off buying a house as well as what is a decentralized application along with the process to create one. We are going to look into the reference architectures off Terry um Golda on hyper leisure On some of the building blocks off these distributed technologies, I have added two case studies off how the Blockchain can be used in supply chin on provenance, using diamond trade as well as in the financial services domain. Finally, we will end the course by giving you some practical advice off. What are the challenges on how to evaluate Blockchain technologies for any off your projects? So what are we waiting for? Let's get started 2. Basics - Understanding the Blocks in a Blockchain: Hi. We heard a lot of our d block shin on what? All things it can do. But before we deep dive into the Blockchain on, see how it works in various scenarios, along with the technology behind it, Let's first try to understand what is a block in a block chin. It's very important to understand what goes in a block and what items are included in a block. In essence, every block in a Blockchain content three primary items. It contains some data, the hash off the block and the hash of the previous broke. Well, the data can be a set off transactions. It can be some contractual information, or it could be a payment transaction. It will typically have details such as who is the initiator of the transaction or by whom the transaction has been created. Then it will also have who is the beneficiary or the recipient off the transaction, as well as the details off that particular transaction. In case off a crypto currency like Bitcoin, it could be the number off Bitcoins and the purpose off it in case off a Blockchain for property. It could be the property details as well as the transaction details such as mortgage or rent payment. It's a truck, remember, Blockchain is not Bitcoin and Blockchain is not Cryptocurrency. We will get into the details off each of these in just a few lectures. Always right, So the next is the hash of the block. So what is a hash? The hash is usually generated using some cryptographic techniques. We will go to the photography in the next few lectures. But for now, please remember that the hash is nothing but the unique identity off that particular block we have identities such as our Social Security numbers are the retina scan our our fingerprints, which are unique to us. Similarly, the cryptographic hash is the unique identity fire for a particle block. The hash will change if we try to update any information within the bloc. And using this, we make sure that the data inside is tamper proof. All right. However, in this example, we have simply taken the next later in the alphabetical series and formed new words soul. Someone who does not understand how it has been formed will never know what it means. This is a very basic example on Blockchain technologies uses very advance cryptography, which is almost impossible to break in a given time frame. The next element in a block is the previous hash off the block. It acts as the reference All pointers, which then creates a chain on. Hence, the name is blocked in. So if we try to change any content of the block, it will cause the hash to change, which means the block will no longer view valid. Why? Because we will have to change all these subsequent logs on their hashes, which is going to be time consuming on impossible for one, nor or one computer to do it. This is how it makes it impossible to tamper the data in a Blockchain. We will look into some of these aspect in more details as we go through the course in the next lecture. Let's see, what are the different characteristics off a Blockchain 3. Basics - What is a Blockchain?: hi. In the previous lecture, we learned about what's inside a block. We now know three primary items that is data hash of the block on the previous hash. In this lecture, we are going to cover What is, Ah, Blockchain on? What are its properties? As you must have seen on the social media or any such platform where money is not involved , the transactions flow directly from one person to another. It does not have any geographical boundaries. So your Facebook post is almost instantly visible to your French Perez. When we need to send money or for transactions which have monetary values, it's not so simple. We almost always have 1/3 party, such as bangs on multiple bangs on some international organizations, which acts as a frustrate party. This is also known as the centralized system. The problem with this approach is that if one off the parties does not function as desired , it can lead to the collapse or huge disruption within the system. Blockchain Act aims to change this and brings the transparency that is required for such transactions. So what is a black shen and how can you do this as we have seen in the previous lecture. It is a sequential chain off blocks. It's nothing but a continuously growing list, off records or a leisure, which are organized as blocks on they are linked to using cryptographic as we have seen in the previous lecture. Each block typically has a cryptic pointer to the previous block, which has some transactions included in it and also has a time stop. Auction has typical characteristics, which makes it very secure, unusable in a distributed environment. In a sense, it's a former for distributed leisure. Unlike these centralized leisure system we saw when we are transferring the money from abroad, the transaction copies are distributed across the network. The participants in the Blockchain can validate the information without any centralized authority. So even if one nor are participant in the Blockchain feels the remaining nodes will ensure that there is no disruption, what so ever we will look into the distributed ledger in the next lecture. The second property that it has to have is it's in the digital form and updated in in Israel time that reduces huge paperwork for such contracts as we have seen block sh in our cities or blocks which contain transaction records. The's connected blocks are updated in near real time. On this forms a chronological chain that provides a trail off all the transactions so no transaction gets lost. Next. The rocks are cryptographic lee sealed, making it very difficult to tamper with the data, which means you have greater trust and robust neighs in the data that is stored well. Blockchain is also a right only form off a system that means you can only write the records and not delete it. This means that the transaction, once created, cannot be reversed. Also, as it maintains the trail, it becomes very easy to do an order it on Blockchain based system. All right, In peace of a Blockchain, you don't need to trust one single party to execute transaction. The consensus, based on multiple unknown participants, helps build trust list Sister. It also means that we require fewer parties for transaction to execute. Now this further reduces the transaction costs to execute a trade or contract. Each of these points ARCA word in more detail in these subsequent lectures off the course. So in this lecture, we learned about what is a Blockchain on what are its various characteristics. In the next lecture, we will go through the distributed ledger and understand how it works. Thank you for joining and have a great time. 4. Basics - What is a Distributed Ledger?: Hello. In the previous lecture, we learned about what is a Blockchain and its various correct restricts. In this lecture, let's try to understand the core concert off distributed leisure. Let's try to understand the V current payment system works by going through how you have purchased this course on how many parties were involved. When you click on the buy button, you were prompted to enter the credit card or similar payment instrument. Details which were provided to you by your bankers on the banker in this case is also called as sure in the payment language you re. Me, on the other hand, also has a banker, which is also known as an acquirer. The payment details are typically entered on passed through the payment gateways. You and your enemy are both interacting with this payment gateway for the transaction. The payment gateways in tone are also connected to assure acquirers as well as the payment network or the payment service providers such as Visa Diners or MasterCard. Once the transaction has passed all the steps, a confirmation is provided so that you could purchase the course. In this case, it was only your bank, which stores all the transactions there. Summaries balances at sutra for your card. This form off a system or leisure is called as centralized leisure. Let me also tell you that you re me typically gets this payment after maybe one toe five days, depending on the type off payment instrument that you have used all the other parties in this entire payment network act as the frustrate toward parties that facilitated the execution off for transaction Veras. In case off a distributed leisure, all parties store all the transactions. So there is no one central repository every nor has a copy off the transactions and nor can be visualized here as the participant. Very loosely speaking, these copies are built based upon the shared and synchronized data that has been built on consensus. It's, however, requires a peer to peer network as well as a consensus algorithm to ensure the replication off data on the single version off. Truth exists across multiple sides. We have a dedicated lecture to understand how the consensus works. In the next lecture, we will see how ah Blockchain is different from a database. Thank you so much for joining me in this one. And I hope you have understood now what the distributed leisure means. Enjoy your time 5. Basics - Difference between Database and Blockchain.: high. In the previous lecture, we saw various components off a block. Because Blockchain also stores records, it's very easy to get it confused with a data storage like relational databases I've ever Blockchain. Technology has some key differences with the database. Technology databases mostly stores the data. In one central repository, you can have multiple copies off the database, but essentially they are controlled by one authority, such as a database administrators. Anybody else has access to data based on the permission levels. Also, you can always modify our even deleted the data in a database. If you have the required permission, that's not the case with Blockchain. Blockchain is a right only data structure. You can only create new entries off. The records on modification is read in relation to the transaction history. Every new block that is created is appended or change with the previous block by means off hash, as we have seen in the previous lectures. Also, there is no single administrator that can modify or delete the data. I hope that clears the differences between a database on Blockchain technology. You can pause the video here on go through these points on this slide toe Recap. The key differences between database on Blockchain So far we have learned what is a block in a Blockchain. What is a Blockchain on its key characteristics? And we also learned the key differences between database on Block Shin in this lecture. In the next lecture, let's learn about different types of block chains such as permission, permission less and so on. Thank you so much for joining me in this lecture and have a great time. 6. Basics - Permissionless and Permissioned Blockchain: hi. In this shark lectures, we are going to cover the two types of block chains, namely permission. I'm permission list blocked. So what do we mean by permissions and what kind of permissions we're talking about? Well, permission Elise Bloch chains are an open house. Don't need anybody's permission to join the network. It's also known as public collection. Bitcoin ethereum are some of the examples off a public Blockchain. Because anyone can join, there is no question off knowing the participants beforehand hands. There is absolutely no trust, however. Trust gets established by means off consensus on reward for being honest. So, in a sense, it's a trust less system. On the other hand, a permission Blockchain requires pre verification off the participants. The participants are usually known to each other and play a rule in establishing some sort off order, our application or a system. One such example could be that off supply chain, where multiple global parties transact with each other on some other examples, could be off property registration buying as villas selling. We will go through a concept off smart contract where many of these examples, as well as the terms, will be toward in depth. That's all we have in the shock lecture. Off types, off auction. Thank you so much for joining me. And I will see you in the next lecture. Enjoy your time. 7. Basics - What is Immutability of Data?: hello. Blockchain has always been lauded for its data in mutability. This is one of the most powerful and convincing reason why Blockchain deployment is on the rise across industries and industries such as financial services, identity management and so on. Where data mutability is very, very important. In this lecture, we are going to loan why data cannot be manipulated in Blockchain on how it ensures the data integrity on in mutability. Let's first try to understand the data image ability with a simple email example. You can send an email to multiple participants as long as you have their email i D. But once it has been received by them, you don't have any control on the data. Within the email, you cannot modify our alter, the content of the email. That's why the email can be said to have the muted ley de from mortification even by the center. So now let's say one off the participants, while forwarding the email, might modify the content of the email while sending it to boot. However, if Bill decides to verify it, he can do so from any off the other participants, such as Alice, Bob or even you who also have a copy off that email. So when we see Blockchain is immutable, we don't mean that the data can be changed. We simply mean that it's extremely hard to change, but very easy to detect our verify, for example, to break a combination off a lock. It might take a long time, but once you have the right combination, it's very easy to verify whether the lock will open with that combination or not. Let's try to understand that with a Blockchain in this Blockchain, if someone tries to modify any content or transaction off this block, it will change the hash off the block that makes the subsequent blocks previous hash as invalid on those hashes also need to be changed in order for them to be valued on. It requires a great deal of energy on processing power. To calculate the hashes on this is the most prohibitive factor on. Hence, it is saying that block chains are immutable on the data cannot be tampered without being detected easily. That concludes this lecture on mutability off data in the Blockchain. In this section, we have learned what is the block on a Blockchain, along with the characteristics off a Blockchain. We also learned what is a distributed leisure differences between database and Blockchain as well as types of Blockchain such as permission less or public auction Was the permission Blockchain Lastly, in this lecture weaker word how Blockchain and shows in mutability off the data Thank you so much for joining me in this one and I will see you in the next section. Very learn about the details off cryptography. Until then, enjoy Blockchain learning. 8. Cryptography - What is Cryptography?: Hello one. Welcome to the new section off Cryptographic Cryptography is Theis Sense of Blockchain Andi Cryptocurrencies. Let's try to understand cryptography with an example. Let's say we have Bill working on some business deal on. Julia needs to communicate a bill about what should be the correct price for a particle tracks. However, she's afraid that there are other people, maybe competent teachers who are interested in this information on. She does not want to send it as it ease. So if she sends the information as they are, text it might leak it to the competitors on may even have a risk off losing the deal. So what she does in speed is she scrambles the information on instant off. Let's say 2300 is the correct price, she adds the next later in the cities on, then sends it this way. She has ensured that some amount off security off the message is guaranteed. Now any adversary will have to do an extra step off, decoding the message before they can read it. Well, if you apply a sophisticated technique, the effort off the according this message increases substantially. Now the question is, how should well, understand it. Well, Julian, both have already decided that whenever they send a particular information, this is the decoding logic on hens. Bill will have no trouble in decoding on understanding the message. This practice on study off techniques for secure communication in the presence off third parties is nothing but cryptography. Now let's also go through some of the terms that we used here. The input message is called as the cord, which, after applying the safer techniques becomes encrypted on, is called as cipher text. And when the reverse off the predetermined logic is applied, it becomes a decrypted message. I hope that explains in a brief, What is cryptography on What is encryption Throughout this section, we've alone about various terms related to cryptography on encryption. We will also go through the symmetric and asymmetric encryption before we end this section . Thank you so much for joining me in this lecture and enjoy your time learning Blockchain 9. Cryptography - Cryptographic Hash function: Hello and welcome. In the previous lecture, we learned about the cryptography aunt, how it works in this lecture. Let's try to understand what is a cryptographic hash function? Well, it's a function that takes any messages. Input on will produce an output off fixed size. Some of the examples are MD five Andi S H A to 56 or sharp to 56. Schottel 56 is designed by the NSS. Let's see Shot off 56 in action. Go to your browser. Andi type chart 256 ash generators click on this first link here. Andi, this should open the sharp 256 hash generators. Let's try a few off them. As I'm recording this. The sky is very beautiful in this month of February. So let me try that. So I die. The sky is beautiful. As you can see, it has generated a cryptographic hash from which you cannot say what was the input text. I want us to compare different strings. So let me check this box here so that we can compare them in one scream. All right, let me copy and paste the same string as you can see. It As you noted, the same hash. The amount of time it is taking is less than a second almost real time. So you might say, What's the big deal? But that is one of the properties that a cryptographic hash function should have. The hash function is supposed to generate the same hash for a given string, no matter how many times we create that hash, or how many times we provide that. Now, let me change the uppercase off sky to a lower case s on. Let's see what changes here. Well, as you can see, the hash is completely changed, so you cannot rely on simple trial and error. Andi gets the input message with a few of those. A good cryptographic hash function will change the hash completely, even for a small change on. As you can see, it generates the fixed length hash. No matter what the input string is, such as jellyfish are John. All right, let me close this so that we can discuss the properties off cryptographic hash function, every hash function, need to comply with certain principles or properties. Or you can say they should possess some off the basic properties for them toe qualify as cryptographic hash function. First and foremost, they should be computational e very efficient, which means the output should be produced in a reasonable on acceptable timeframe on should not require huge computation power. What's the point to produce and hash that takes hours when you actually want to send the message in the next few seconds? All right, the second property that a cryptographic hash function should have is the collegian resistance. What it means is, ideally, it should be very difficult to produce the same hash for two different messages we are using. The word difficult on not unique are impossible because there is always a possibility off producing the same hash, though the probability off the same is very, very minimal. Difficulty here simply means beyond the reach often adversary, another application off this property ease. We can simply remember the hash rather than comparing the entire data or files. Because if hashes off X and Y are same, then X is same as why this allows us to compare the two sets off data or files by simply comparing them with their hashes than comparing the entire file all data. The 3rd 1 is that it should be completely invisible to generate the same message from its hash value. We also call this as a hiding property. The next property that a cryptographic hash function should have is that it should be deterministic. So it basically means that no matter how many times you apply ah, hash function on an input message, it will always produce the same hash. We saw that in case off our input message, and the last property is that a small change in input can produce a significant change in the output. So in a message like this, when we change even the case off a single later, it should produce completely different and non correlated output else. It might be easy to figure out the message with few trial and error. I hope that makes it clear what hashing is and what the cryptographic hash function is supposed to do. In this lecture, we learned about what is a hash function and what are its properties. Thank you so much for joining me, Joe, your time learning Blockchain 10. Cryptography - Merkle Tree and Merkle Root in a Block: hi. In one of the previous lectures, we saw Ah, high level view off the block and its structure. However, there are few more terms that we should be family away. When we talk about the block structure, we know that a block stores its own hash as well as the actual the previous block does. It forms a chain. The bloc also has the timestamp off. Then it was created. The block height is nothing, but the position of the block in the Blockchain and the knowns is nothing but an arbitrary number that can only be used once during ah cryptographic communication. We will see it in action during the Proof off work lecture and I will actually show you and give you some examples off the nonce. And how the proof or for works. Let's get to the main topic of this lecture, which is the Merkel tree on its definition. Ah, hash tree or a marco tree is a tree off hashes off the data blocks or defies or set off files which may contain multiple transactions within that block. All right, the Markle route is the top most hash off all the transactions on their respective hashes. It has been invented and patented by Rolls Markel. It allows very efficient and secure verification off the content within a large data structure such as a block. Let's try to understand that by visualizing how the Markle Treat is formed, let's say you have these eight transactions even until D eight, which are going to be part of the Blockchain. First, we create the hashes off this transaction. Let's say that you want to catch it. Next, we create the hash off. These two hash is such that the resultant hash is hash 12 for hash off, one on hash off to on we go on creating a binary tree until we find the hash. 123456 and seven, which is nothing but the Markle route off this particular binary tree, and this route is what gets stored inside the block. So now if someone wants to change a particular transaction within a particular block, that will cause the Merkel route off that block to change. This will also change the block hash. There's Marcal Route acts as the double security for the data, as well as the transactions within the Blockchain It also preserves the integrity off thousands off transactions within that block ends. It's such an important element within a block. Shame that's all for this lecture on Marco Tree on. Thank you so much for joining me and your your time. 11. Cryptography - Symmetric and Asymmetric Encryption: Hi. In this last lecture off the section on cryptography, let's try to understand the symmetric and asymmetric encryption. So what is encryption in the first place? Well, as we have seen, encryption is the process off encoding a message. Our information in such a V that only authorized parties can access it on those who were not authorized cannot. There are broadly two types off encryptions that we're going to cover in this particular lecture, symmetric on a symmetric encryption. Let's take a look at the symmetric encryption forced. It can be understood by using the analogy off the safe. Let's say Alice wants to store some information or documents or cash in a safe. Andi only warns John Toe, have access to those documents and cash This way. She has secure the cash on documents from the unauthorized people who otherwise may have gained access to it very easily. Now John, who has got the access to the key or the number combinations off the safe, can get hold of the documents and cash whenever he wants to. While this mechanism does secure the information, it creates another problem, which is how does Alice pass on the key to John. Either she hands it over to John or may tell the number combination on the phone. But that means she might expose the risk off key getting into the wrong hands. So the transfer off key also needs a secure channel in case off symmetric encryption and some of the examples off symmetric encryption R A, S, D, E, S and R C four. All right, moving on to the symmetric information. All symmetric information requires two sets off keys public on the private key. Let's take a look at an email as an example. When you send an email on an email, I d. There is no restriction. You can send the email as long as you have the email idea off the other person. Many people can send the email to that particular email i D. But only the legitimate owner who has got the password for that email Ivy can open and read those emails so you can easily say that public keys are essentially on identity. Let's say the two individuals, Jon and Boo, I want to exchange some confidential information over the Internet, but they are worried about the security and wants to use encrypted information for exchange . In this case, John will have his set off. Private and public keys on Bill will also have his set off private and public ease the boat , then exchange there, set off public ease with each other so that now both John as well as both can encrypt the data using each other's public keys. However, John, who could use bills public E cannot decrypt the same message. It can only be done using bills. Private key. All right. Similarly, when Bill encrypts the data using John's public Key, it can only be opened using John's private keys. So, in a sense, it's requires a combination off private on public keys to encrypt or decrypt the information. These are some of the examples that you may often see. We almost always see the https for many off the Vape photos where you need to transact securely Bitcoin on a sausage are the other two examples off a symmetric encryption. It's all I have for this lecture on the symmetric on symmetric encryption. I hope it's clear now off what is symmetric on what is a symmetric encryption. Thank you so much for joining me. Enjoy your time 12. Consensus Algorithm - Peer to Peer Network: Hi. In this lecture, let's look at one of the core concept off peer to peer network on which the public Blockchain, Zoff, Bitcoin and Ethereum are based. Traditionally, most of the applications have a single version or copy off the data on application as well . This application on data is typically accessed or some form off media such as Internet, But these applications typically cause single points off failure. What if the link is broken? What if the central application are the database is hacked our crashed. In order to protect these systems from such failures, the idea off a decentralized system was introduced in traditional sense. What it means is you have multiple copies off database on application on it is spread across the globe, which can be accessed from anywhere. It also means that even if one off the server goes down, you typically have other servers are nodes working? But even in this case, the application and sharing is managed by a central authority. A true peer to peer network does not have essential authority on still maintains the exact same data on application across the network off pier notes Dorine download is one such peer to be a network which the governments are finding so hard to bring down due to the same reason explained above. In Blockchain, you have different piers, also known as nodes, which store the ledger information in a distributed form every nor has an exact copy off the distributed leisure within the network. This not only prevents the Blockchain from any attack, but also helps increase the data in mutability by bringing in the consensus among the nodes . Let's talk more about the consensus in the next lecture. Thank you so much for joining me in this one. 13. Consensus Algorithm - What is Consensus Algorithm?: hi. In this lake church, we are going to cover one off the most important concepts off distributed consensus and mining, as you have seen in the past lectures. In case off a centralized system, there is only one party, such as a bank, which acts as the trusted party on. We all concur with what it says, so it's very easy to achieve consensus in a centralized system. However, when we are dealing with a distributed system where the piers or the Nords have conflicting interests on, do not necessarily trust each other, it becomes difficult to reach the consensus. So how do we build on meant in the consensus in such a system? Off distrust? Before we deep dive into how the consensus is achieved? Let's first look at what do we mean by consensus decision making? While it may be common sense based on the family or worlds, but it's worth a while to go through it and arrive at a common understanding. As per the definition on Wikipedia, it's a group decision making process in which group members develop on agree to support our decision in the best interest off the wall. It further defines consensus as the acceptable resolution one that can be supported even if not the favorite, off every individual. Some may or may not agree with the decision, but the majority works for it. But that also means is the participants also need to agree on how the process off decision making will work. This process is nothing but the consensus regarding them in case of computer systems. This is also known as a bison Tynes Generals Problem described by Leslie Lamport, Robert shows back on Marshall Peas and their 1982 paper. Let's try to understand what the problem is on Why or consensus algorithm is important in this case, a group of generals commanding a portion off when centimes army and circles a city. The plan is to attack the city for capturing or retreat. These generals may have different opinions off whether toe attack or retreat. However, they all agree that they will go with the majority. Are common opinion as an uncoordinated attack could be disastrous. They also need to deal with the problem off traitors. A traitor general may send misleading messages to other generals on may even kill the messenger who is sending the information So if he received the message toe attack from the previous general, he may even kill the messenger on Send a message off. Retreat to other generals. The computer system analogy here is jungles are notes in the peer to peer network. On the city is the data that we are trying to validate it on. There could be traitors off malicious Lord which are trying to manipulate this system. Let's say, for example, the Trettel nor within the system sends a message toe one set off piers that it has transferred 10 Bitcoins to John and 10 Bitcoins to Bob Veras. It actually had only 10 Bitcoins on. He's trying to double spend it. Bitcoin solve this problem by assigning a proof off work based consensus algorithm. So the no which is trying to create a block, needs to provide some proof which everyone in the network will agree on reach. A consensus on there are various algorithms on the main purpose off the consensus algorithm is to achieve the agreement among the network participants or lords within our distributed system. Consensus algorithm also helps us maintain the correct speed off. The later on can help prevent attack to manipulate the data as the Attackers might need more power than the majority to manipulate the data. The different types off consensus algorithm, which are currently in use, are proof off work proof off stake proof off Elapsed time Simply filed Byzantine fault. Tolerance on proof off authority. Let's go through the proof off work in the next lecture, so see you soon. And that's all I have for this lecture. Thank you very much for joining me. 14. Consensus Algorithm - Proof of Work: hello. In this lecture, we are going to cover a very, very important concept. Off proof off work consensus are regarded them. Let's see a brief off the history off proof off work I got to them. Hash Cash is one of the oldest proof off work algorithm that was used for spam email detection. The original idea was proposed in 1992 which was letter proposed as hash cash in 1997. This algorithm adds ah hash cast tam to the email header, which requires some amount of computation ranging from few milliseconds up to a particular second depending upon the processing power. However, what ensures is one cannot send millions off emails from a small server, which is where the spammers try to do. Whether coming back to the proof off work in a block shin environment. As this is the consensus mechanism used in Bitcoin, we will be talking Maurin terms off Bitcoin on Bitcoin mining process in this particular lecture. Now let's assume that all nodes in the Blockchain are allowed to create a block at the same time that would lead to chaos, as we would not know which block and which transactions are the authentic ones that may also lead to double spending. So then how do we choose the Nord that is allowed to add a block to the Blockchain? Satoshi solved this problem by using the Proof Off work algorithm as part of block creation . The unspent transactions are recorded in a block, but before any, nor is allowed to create that block on a sign few Bitcoins to him. It is presented with some cryptographic puzzle on. Once this puzzle is revealed, a race begins on the one who solves the puzzle gets to create the block in the block shin. They can also add a new transaction that will award new Bitcoins to them. This process is also called as mining as it creates new Bitcoins Onda. Once the miner nor solves the puzzle it broadcasts it to its peers would invalidates the solution to the puzzle as well as the transactions within the bloc. On if it is indeed the correct answer, on upon 51% rallied et the miner nor gets to our that block in the block chip. So what is this puzzle on how it works? Let's try to understand that using a simple Dies. Example. The puzzle here is to come up with a combination off two Dies, which will sum up to seven. You may throw the dice, and it could be two plus three. That's five and not equal to seven. You may try it again on May Come up with eight as an answer. Maybe in the third attempt, you will get a combination off four and three, which is the correct answer. Now imagine a scenario where there are multiple participants who are competing to come up with the answer to this puzzle. Then whoever gets the right combination off the dies post become Zilina. The real world hashing puzzle is not so simple, though. In case or Bitcoin, every new block will have the hash off the previous block. Few transactions included in that block on it also has something called as the knowns. This is a random number that gets added or con coordinated to the transactions that the nor wants to add to the block. The mining Nord is then asked to find the norms in such a manner that the resultant hash off this combined string is less than a particular value. What that means is it will have some leading zeros smaller, this value or more. The number off leading zeros higher will be the difficult level to solve the hash puzzle. There is actually no definite answers to how many attempts it might take to solve it. Due to the randomness off this puzzle by the Terry off probability, even a small computer may have a chance to find the lawns, though it will have a very, very low. Probably I have actually created a few nuances on provided you the degree of difficulty to find them. All right. What I have here is, let's say agitation on some con captain ated string off numbers which together represent the block content. The task here is now to find a number such that it will have a September off leading zeros . As you can see, it took me seven attempts to come up with this hash for a difficulty. Level off one leading zero as the number of leading zeros increased. The number off attempts also increased exponentially from 7 to 438 to 6134 and finally reaching 2.79 million for five, leading zeros. This has taken closed toe a minute for my laptop computer with eight leading zeros. It might take hundreds off millions off attempt to find out the lawns number. Though it is so competition Aly intensive to come up with the right nonce number, It is actually very easy to verify. Let's say the mining Nord has produced all these hashes and claims that this is the nonce value for this particular hash. Now let's go to the high generator and see whether it tallies with this particular value or not, we now know how to search and go to chart 256 hash generators. Andi Here I am. Let's simply copy and fast the number that will show the hash generated with this nonce value. Let's add the number one well, it does not produce the hash with one leading zero, so we increased to nothing happens then 23 Still, we don't have the specified leading zeros for this hash with this string, so it has taken me 2.8 million attempts on one minute off computing time to find out the correct Nam's. It will hardly take a second to very fight. So what I do is I simply best the string on the exact number, which is 2790560 at the end of it on, There you go. It has produced a hash, which is with five leading zeros. With this, you can very fight easily whether the North, which claims to have solved the puzzle, is telling as the truth or not. The rial Nords used the same shot 256 algorithm to generate the hash on Very Fight. I hope that makes it clear on how the proof off work in the context off Bitcoin works to summarize it. The process off proof off work is known as mining in case off Bitcoin. The proof is hard to create but easy to verify. It's like a combination lock. It's very difficult to get the combination, but once you know it, it simply takes one. Try to find out if the lock opens with that combination or not. As more and more notes joined the network, they bring in more computational powers. That's increasing. The difficulty level on has become competition. Aly very, very intensive, I need not say, but it is acceptable to 51% attack, as it will take Nords with 51% computational power to verify even a wrong puzzle that concludes the lecture on proof or for consensus, unguarded them. I hope you have enjoyed learning this very, very challenging topic in the block shape. Thank you so much for joining me in this lecture. And I will see you in the next one. Until then, enjoy your time. 15. Consensus Algorithm - Proof of Work Hash Generator in Python: Hi. In the previous lecture, we learned about the proof or fork aunt, how the miners compete for it to win the reward by adding the block to the block shin. We then learned about the nonce number. Let's see. What do we mean by the difficulty level of the knowns on how the increasing number of zeros increases the total number off attempts required to find the hash. So let's go to the actual code. So here I am in the bite on environment. Andi, Uh, I have this small little function which is going to use the library for hashed from hash leap. We are going to accept certain inputs here, which is nothing but some sort off input string on and the total number off leading zeros. We want Andreae, then Ah, I've just added some numbers. Some random number here just strike toe a pain that they will be certain dashes also upended after the data stream on DA. Then we try to find out particular hash on. Finally, we print it in terms off. What was the proof off? Look, what was the start and the end time and what was the duration for that on the time and has taken to gaze that particular nonce. So let's get started on this. I'm simply going to run this. It is asking me to enter and put string Andi. All I'm going to do is simply type my name and it is asking me to enter the number off leading zeros. Let's say to begin with, I simply interfere one leading zero on. There you go. It was pretty quick. So this was the proof off work that was given on DA The very first hash for that that I will go to them came up with Waas. This so on. The number off attempted has taken is 17 on the time to give the nonce waas less than few milliseconds. So what I'm going to do is I'm going going to run that program again. Andi lets me just crawl down of it. So I give the same data. On this time I'm going to give to leading zeros and I play center. So as you can see, it has taken 372 attempts for it to come up with. The two leading zeros are hash Witter to leading zeros on the time it has taken is if I'm not mistaken. This is ah, two millisecond. Let me increase the difficulty level of it on. Let's see what happens then. So my data remains constant. The number off leading zeros that I want this time is three. Okay, As you can see, the number off attempts has increased from 3 72 to 12,673 on the amount of time it has taken has also increased. So, as you can see as we are increasing the number off leading zeros the number of attempts to find out a nonce that will basically prove this work is increasing on to let me run it again on Let me actually this time instead of three. Let me straightaway jumped through. Maybe five leading zeros. Andi, Let's see what happens. It's running. It's still running. Wow. So it has taken close to five seconds to come up with the nonce which has got five leading zeros. Remember, the my data is British. On some random numbers. All I wanted was get a hash for this data with five leading zeros. The number off attempts it has taken is 1.3321251 point three million are teams it has taken Andi. It has taken close to 4.87 That's almost five seconds, is what it has taken, I guess on hash, with five leading zeros. Let's do it again on this time. Probably I will have to pause the video because it is going to take maybe a minute or two. I'm going to add six leading zeros now, and let's see how many attempts it takes on the amount off time that it takes to get the nuance it's running. I'm going to pause the video on Come back ones. It has successfully guest the nonce on there you go by simply adding one leading zero from 5 to 6. The proof off work has taken 22 million attempts, and it has taken almost one minute on 15 2nd to finish this particular task. As you can see, it has increased exponentially compared to the previous one. All right, so if I add another one, it's probably going to take 10 minutes. Andi, if I add, let's say, nine leading or 10 leading zeros, it can be hundreds off millions. I won't be surprised even if it is close to a 1,000,000,000 attempt that it will take. I do not want to try it. I'm not going to do that as it might just run overnight. So I'm going to stop here. But as you can see, it has taken for this particular string. It has taken me one minute, 15 seconds to get the nuns on. The number off attempts were 22 million on 36,000 649. But now let's go to our has generators on. See how easy these to verify that I have found a correct nonce. So here we are, in our sharp to 56 hash generators. All I'm going to do is I have already copied and pasted some of these proof off work that we checked. This one is for one leading zero. This one is for 12345 Leading zeros on this one is for six leading zeros. So let's go on check. Well, I'm going to do is copy and best all of these on. I'm going to check this check box because I want to verify all of them in one attempt Andi . Then I'm going to post this one as well on the Funnel One or we're here. All right. No, This one has, as we know, has taken a 17 at times. Sure, if I just do so, as we have seen are we typically just are the ones at the end and check whether we find something. Okay. I haven't found anything. I haven't found anything here. Not with three with seven attempts. No, we said 17 attempts. So with 17 attempts, I am able to find announce with one leading zero. With this, it was even more difficult because we had 13321 to 513321 to five. So, as you can see, it then generated a hash with five leading zeros. Minimum five leading zeros. So this is with six leading zeros. Then when I mentioned minimum six, this is the number that it generated. I'm simply going to copy and paste it years. Ah, Now I need to remove these Carmos on. As you can see, it has generated a hash with six leading zeros. So even though it has taken me close to a minute or more than a minute for this particular proof off work. Or rather, I would say this particular proof off work to come up with a nonce, which is this bigger number almost close to a minute. Verification off it is very, very easy. It will take me the same amount of time, even if I want to verify our hash with, let's, say, 20 leading zeros, whereas to produce or come up with a nonce with 20 leading zeros on this laptop, computers would probably require these on. It's definitely not recommended to try something like that on a laptop computers. You would definitely requires specialized machines to come up with that kind of a nonce in a quick time, which, in case off Bitcoin is usually 10 minutes. All right, I hope this explains how the proof off work increases the difficulty level for the same computational power with additional leading zeros. That is precisely what the Bitcoin tries to do in case of Bitcoins. It has reached almost 35 40 leading zeros, and that's why takes close to 10 minutes, even for specialized machines. But as we add more and more computing power, this time is going to be they used. All right. I hope you have now understood how the hash are. Such a to 56 hash. Makes it difficult with every addition off leading zeros. Thank you so much for joining me in this one. Enjoy your time. 16. Digital Currency - Bitcoin: hello and welcome. In this lecture, we are going to learn a brief overview off what is Bitcoin or digital currency. But before we do that, it's very important to understand some basic principles off money. So what is money? Is this really the money? Well, it's just another form off money, which is cash are. As Jeremy Irons said in the movie margin call money is nothing but pieces off paper with pictures on it, so that we don't have to kill each other just to get something to eat. Is that so? Well, that might sound cool for a Hollywood movie, but not the reality. For something to be categorized as money, it has to satisfy some properties off money on what are those? Well, the 1st 1 is it's a medium off exchange. You buy things using money, whether it is in the form off cash or card or a wallet. That does not matter. The second property off money is it's ah, unit off a count or measure off value, which basically means it needs to be divisible. You should be able to buy items off different values using the bill. You may have and get the change for the remaining amount. It should also be transport table. You can simply put it in your pocket on carried with you. We should also be able to transfer it to someone else, either by handing them over. The cash are into their accounts and the last but not the least. It should be hard to counterfeit another property off money. It acts as this store off value similar to gold or any such store off value in many countries, the amount of cash a country Kenshin rate is directly linked to the amount of gold the central bank off that country has now. With that in mind, the Cryptocurrency needs to satisfy these conditions before we can call it money. So what is Cryptocurrency? Well, it's the digital money that can be used for an Internet based Miriam off exchange on stored in a digital form, instead off a paper based cash for But as is the case with so many currencies which have amount of gold as the base, cryptocurrencies use cryptography to regulate the generation off currency as well as transfer of funds. It derives its properties from mathematical properties on not physical or chemical properties such as Gold. Bitcoin is one such digital currency, or Cryptocurrency. Bitcoin is essentially a global decentralized payment network, which uses Bitcoin with a small be as D currency. It has a completely distributed on publicly owned infrastructure we have seen in the previous sections what a distributed ledger or system looks like. It's also a permission list system on as we have seen during the Blockchain lecture, it simply means that anyone can join the network. We also know that the transactions are verified by network nodes using proof off work mechanism, which involves cryptographic puzzles. In the next lecture, we look into how the Bitcoin works. Thank you so much for joining me in this one. Enjoy your time. 17. Digital Currency - How Bitcoin Works?: Hi. In this lecture we will see how the Bitcoin works. In a very simple and easy to understand terminology. The first step is to create a Bitcoin wallet. There are various types off wallets that you can create. You can create a test of wallet, which is among the first wallets created. The security off. Such wallets could be an issue as it is dependent on the security on your there stop or laptop mobile wallet. Well, as the name suggests, is stored on the smartphone on the most popular one. You can also open a wallet on. Store it on 1/3 party, sir. War. This is nothing but the A bullet. It could be a problem if you store a large amount of Bitcoins on the third party servers because off security reasons the hardware wallets are physical Special Purpose Harbor devices which operate a Bitcoin wallet. They can only be accessed using USB are our browsers. They are considered to be very secured compared to other types. Off all its the paper wallet is nothing but the keys printed on a piece off paper. These keys control the Bitcoin transactions. It can be a very secured means off keeping it offline. However, there is a risk off losing the paper on Gus. Losing all the Bitcoins with it you may have ah, hot are cold wallet now. Hot wallet is the one connected to the Internet. Vile. The cold ones are offline. You may want to keep a small amount in the hot wallet, while the majority of the funds in the cold wallet on away from the Internet. There are many website which allows you to create different types off wallets. You can go to Bitcoin dot org or coin based G Dax etcetera. On. We do not recommend any particular website. Andi, I request you to do your due diligence before you open an account. Now, once you have devolved, created, can use them for either buying a Bitcoin on storing them in the wallet. Or you can receive or transfer Bitcoins similar to an account transfer are you can pay for the goods or services using the Bitcoins. These transactions take place using certain keys and addresses. It typically involves a pair off public and private keys. Public key is something like a bank account, whereas the private key can be considered as Lee been for the account, which only the account holder has access to Bitcoin addresses can be multiple for an account. It's similar to a check book that is issued to an account holder. Aunt has a check number for every leaf off the book. The addresses are usually created from the public key. The Bitcoin address is the recipient address where the Bitcoins need to be transferred. All such transactions are secured using a cryptographic hash on, they become part of the bloc in the Blockchain, as we have seen in the previous lectures. These blocks then get mind by the minor nodes. The transactions are verified. Any fees for the transaction is also rejected on the transaction is said to be complete when the recipient receives the Bitcoins. In the process, the miner gets to create an additional transaction for mined Bitcoins. I hope that explains in Archer how the Bitcoin works. Thank you so much for attending this lecture. 18. Digital Currency - Introduction to Smart Contract: hi. Among the many applications of Blockchain we learned about the Bitcoins and how it works in the previous lectures. Another such application of the Blockchain, which is going to have a far reaching impact, is smart contract. So what is a smart contract? Well, it was first proposed by Necks Abu in 1994. Nick is a computer scientist legal scholar on her cryptography expert. He proposed that the real contracts can actually be put into a computer protocol that can execute the terms of the contract. So there is actually no difference between a smart contract on a physical contract. It's just that there are no third parties on the contract. Terms get executed automatically. Once a set off conditions are met, it can be visualized as a computer program inside a block shin. Well, let's try to understand what is a smart contract on how it works. Using the example off buying a house. Typically we will search for a house using various requirements we have. Then we finalize the one on. We knew she ate the price as well as the terms and conditions off the purchase agreement with the particular house owners. This is then also followed by various checks with the property registry to determine the true ownership as well as the history off that particular property. The new agreement will also be registered with the government registry. This involves lots of paperwork on There is always an element off fraud that many people have encountered. Now imagine if we have the property records created on a Blockchain. There is no need to go through the registry because the Blockchain by ex principal can very easily verify the true ownership off the property. If the details have already been added to the Blockchain all right now, once the ownership as well as other details off the property are very fired using Blockchain, A smart contract which is nothing but a set off rules created in the digital form, gets applied. It will then trigger the automatic execution off payments sequences to be paid at different intervals. Any change in the ownership sequence, either in percentage with multiple owners, are a single 100%. Membership will also be triggered Andi. If the buyer has taken a loan from the bank, it can also are the mortgage secrets or transaction details to this smart contract such a contract then becomes part off the block chain. Upon verification. Beyond this, as a set off condition is met, it triggers the matching action associated with the rules or conditions mentioned in the smart contract. Andi as it becomes part of the Blockchain it's will derive the Blockchain properties off data mutability Andi will be part off are distributed ledger. That means nobody can tamper with your data on. Everybody can also see the contract execution. This will ensure create amount off transparency in any terms or contract that we are going to execute. So in a sense, it's a simple computer program which has got a set off executable actions based on if this , then do that type off statements. It's also a language for modification off leisure transactions. In doing so, it's also fascinated the exchange off values such as property are shares for are some off money. We execute multiple contracts on a daily basis, such as buying a property buying shares. Multiple parties collaborate to cool here an item from one country to another. The insurance policy repurchased is also a contract which say's you are going to pay the premium on a fixed date. But if there is an accident, you will be paid the claim amount. Smart contracts could change the way we prepared negotiate on execute contracts in the near future. That's all I have for this lecture on smart contract. See you soon. And I hope you have enjoyed learning smart contracts. 19. Digital Currency - Decentralised Applications: hi. Among many of the applications of Blockchain de app are decentralized applications are one of the most powerful and with far reaching consequences. Before we try to understand the D. APs, let's go back and look at how traditional application is deployed on Executed at a very high level. In a traditional application, you have a client which communicates to the back end through an interface or set off logic . This application can be hosted on one server or on multiple servers, but essentially they are controlled by one entity in case off a decentralized app. They are Software programs that run on a peer to peer network on are not controlled by single entity. However, a Blockchain animal decentralized application shares some characteristics off Blockchain, which makes them unique. They are basically decentralized applications installed on peer to peer network. We know that the second most important characteristic is that they are based on decentralized but consensus based network and as it is backed by Blockchain, it guarantees the mutability off source scored. So no single nor can tamper with the application so scored on there is no censorship. Also the D APS running on public P two P Network such as it Terry um, where the nodes are spread all over the globe. It can never be shut down on There is literally no downtime. Let's also try to bring together the D APS and smart contracts as they are very easy to be confused with. The ABS are not smart contract as these applications are run on p two p network and can be accessed using Internet. Let's say they are. Reporters are Web application on Let's see how they are different than traditional portals or websites. In case off a traditional website, you have a front end returning HTML or other scripting languages, such as Java script it connects to the date of is through some sort off an interface. The ABS are very much similar to traditional applications. There is no difference in the front end, however. Instead, off traditional interface, the front end communicates with the block chain using smart contracts. The interface also has all the necessary logic that requires the D up to function as desired. The D App does developed has to meet certain criteria before we can call it a block. India. It has to be completely open. Source only then the source scored can be managed. Using consensus based protocol, it must use cryptography for storing data as well as for communication protocol. Andi, as the Blockchain notes, compete for rewards in the form off new tokens or transaction fee. Every block Chandi app must use a cryptographic token, Andi for it to use tokens. It should also generate tokens in some way or the other de app off for multiple benefits over traditional applications. As we discussed earlier, it provides a mutability off application source scored on. No third party can tamper with the court on its own as it is distributed globally. It's can't be shut down. So you have washed your zero downtime. The skill ability is never an issue with D. Abbs, as they are built to scale with thousands off Nords on appear to be a network with the use off cryptography. On Blockchain, we get an added security over the application as well as the underlying data. All right, so you may wonder, what's the process off building such a DEA? Well, it's not so simple as building a normal application. You first need to publish a white paper for the DEA you need to highlight the problems your D app is going to solve. How do you plan to develop it? What are your plans to generate and distribute tokens as well as the consensus mechanism? Don't forget to mention all the pros and cons associated with the proposed the APP. You may want to begin developing a prototype along with few years on. Once enough momentum has been gained. You can then decide to launch an initial coin offering. It's nothing but, ah, fundraising event similar to start up investments. We see this is typically followed with the development, our implementation off the app on, then the final launch off the DEA. And as the MD off dear friend stays, everything that can be decentralized will be decentralized. So the future of its us in a decentralized form. Thank you all for joining me in this lecture on the APS. See you soon in the next one 20. Technology Platform - Distributed Ledger Technologies: Hello and welcome to the new section. As you know, by now that a decentralized system has geographically separated hardware but shared ownership off application on data. The distributed ledger technologies are D lt's an Evel OBL action or are distributed ledger into our decentralized application. Well, it's pretty straightforward there. Let's now look at the basic component off any DLT are distributed ledger technology. It has to have some sort off data model that will capture the current state of the later on store it for future retrieval. Secondly, it has to provide a language off transaction, the language off transaction simply animals that changes to the Leijer state. It's nothing but set off instructions in some language that can create new transactions heard on. One of the most important is that any DLT has to propose some sort of consensus mechanism or protocol for participants to agree. Last but not the least. It has to have cryptographic security mechanism for application on data security. All right, in this section, we are going to cover some of the major distributed ledger technologies. We'll go through the Terry, um, hyper Leisure and Korda in the subsequent lecture. I'm specifically using the word dlt because not necessarily all of these technologies will result in a block shin. More on these in the next lecture. See you soon. 21. Technology Platform - Ethereum Architecture: Hi. We learned so much about the Blockchain Andi. Each principles so far in this section leads learns off the technologies that can power the distributed ledgers on block shins. And I'm so excited to walk you through some of these technologies. The first among the distributed ledger technologies that we will learn today is the Terry. Um, so what is Italian? First and foremost, it's not Bitcoin or Cryptocurrency. It differs significantly with Bitcoin and its poor pulls on what it can do. Bitcoin is simply one off the applications off Blockchain technology. It's simply appear to be a network off electronic payments. It Terry um, was first proposed by Metallic battalion in 2013. I hope I'm pronouncing the name correctly. It's an open source software development platform based on Blockchain technology. At allows developers to build decentralized application using scripts or what we know now as smart contracts. Andi, as seen in the previous lectures, a smart contract is nothing but a computer court that self operates on executes when certain conditions are met. Similar to Bitcoin, Italian uses eater as its Cryptocurrency with the miners mind on is also used as a reward or compensation to various types off participants. It arian based smart contracts can potentially decentralized almost every centralized application such as property porches and registry insurance. Supply chain on many, many more without spending much time. Let's jump to the Ethereum technology ecosystem. Well, well, well, though there are too many boxes around. Don't get overwhelmed by it, as I'm going to explain every single block over here. The aim are all of this lecture is to provide an overview off all the major components at an architectural level. Let's see, What are those building blocks off Terry Um, architecture. Get is the official client software provided by Italian Foundation. It acts as a north on can download and copy the entire Blockchain. It's a complete nor in the sense that it has the ability to mind the blocks as well as our transactions to the Blockchain. It also communicates continuously with other notes which could be get or something else. We will see those in just a few seconds. Get is return in the co programming language. It also comes with its own graphical user interface. Known as missed browser. It is used to communicate with the get north, similar to get. You have an unofficial client software called Parity, which comes with its own parity browser. Aunt has more or less the same functionality as get it's written in the rest programming language. You can also use JavaScript Library Web Three Gorges to connect on a contract with the North. You can build their applications using Web Tree. Metta Mosque is another client software that can be used to connect with the North. It's essentially a crumb plug in that contract with the Italian North. The key difference here is you don't host the North at your end. The North is hosted and owned by Metta Mask. All you need to do is download and install the mental mosque software on you are ready to communicate. Apart from these two leading Italian clients, there are multiple such clients. Return for different language, supports CPP. Terry, Um is the Terry um C plus plus language client, while the buy it APP is the +14 fightin similarly that are Terry um J for Java. Ruby Terry, um, for the Ruby language on so on. That's in a nutshell are different Nords and clients offers, which are available for Ethereum development. The next component off the Terry M ecosystem is the Italian virtual machine. I don't see this as a separate item or block. It's nothing but a software which acts as the runtime environment for smart contracts. It runs on every Italian nor in the network. These virtual machines have been implemented in various languages. Such a jiao R C plus plus go ruby grassed, etcetera. One important piece of this puzzle is also the E. N s or Italian naming system. It's very family or to the DNS or domain naming system. In case off Deanna's, we simply map the i p address with a human understandable world. Similarly, and Ian s can redirect you to a particular the so in an Italian browser if you type property contract dot e t etch as looming. This is the name of the APP. It will open the respective applications. All right, at the bottom. Here we see these two blocks which appear like some sort off appear to be a network. Well, indeed they are. Let's look at what swarm is. The swarm network is a decentralized storage and distribution service. And why do we need that? Well, Blockchain is good to store some small information. But what if we want to store and also make it publicly available? Then the Blockchain won't be sufficient on may even be very, very expensive to do so. Swarm is the solution for this. It's a network off large number of computers over the Internet unit to run a swarm Nord toe connect to this particular network. All right, The I P fs are interplanetary file system that you see here is very similar to swarm. It's also are distributed file storage system. However, swarm is an Italian specific project there, as I PFS is not, but it has close ties with Terry. Um, typically, you will store the hash off a large file which will point toe either storm or IBF s for storage or retriever. When more technology piece in this puzzle is Vesper, this part is simply our communication protocol for the APS to communicate among each other . I hope by now you have the high level architecture off how the Ethereum network works on how the front end the Nords as well as the storage on distribution in the Terri. Um, works. That's all we have for this lecture. See you soon in the next one with another Blockchain technology. Enjoy your time 22. Technology Platform - Hyperledger - Linux Foundation project: hi. In this series off lectures, we are going to cover some very important technologies that power the distributed ledger or block chains. We saw how detail Yin works with a high level architecture. In this lecture, we are going to cover another technology start called Hyper Leisure. I'm calling it US Technology Stack as it has multiple technologies and models that makes this umbrella project unique, with the existing block chains and in particular the permission less block chains. There are numerous issues. They are predominantly designed for cryptocurrencies, and there is almost always a crypto token or currency that is required to make it work. Another issue is the slower transaction confirmations On very limited, true put Visa process is 1700 transactions per second, whereas papal does 115 per second. Now. Compare that with Ethereum at 20 transactions per second on Bitcoin at seven. Transaction specific in. They have a lot to catch of with the fact that anyone can join the permission list. Blockchain, the processor are the participants are literally unknown on. There is a possibility off. Malaysia's actors trying to sniff are still the data that basically means there is absolutely no privacy off your data. If, for example, would you want to make public all your credit card transactions are, for that matter, any such financial information as payroll leader? Let's say this gets magnified by the fact that there is literally poor or no governance over these systems. It can get very tricky if things such as identities are stored on public Blockchain. All these problems make it difficult for a private enterprise to make use off public or permission. Elise Bloch Shin's hyper leisure promises to solve some of these problems with a different set off technologies. Hyper Ledger is an umbrella project started Violin Knox Foundation in 2015. On is a collection off various open source Blockchain and related technologies. It's a global collaboration among the leaders in various industries, such as finance I T Manufacturing and so on. It has got 18 premium members on 100 and 43 general members at the time off recording off this video. These are all leading organizations in their own domain. So what, exactly it is? Well, it offers a plug able on modular solutions. That means there are different requirements for every industry on one size or one type of solution cannot solve the problems off. Every industry ends, different frameworks and modules are created. I will tell you what these are, but before that, let's try to understand the fundamental reference architectures off the the hyper major. It basically composed off to measure building blocks the top most here, being the AP eyes on as decays, which the developers on enterprises can use to connect our develop application using hyper leisure technologies, while the hyper leisure frameworks provide some basic services required for these applications to run in a distributed leisure manners as the hyper leisure is a permission architecture, the participants need to get membership to access the hyper leisure on hands. You also have membership services such as registration, managing identity as well as the audit ability off the members. Apart from that, the rules and responsibilities off every note is controlled on hands. There is a greater need for membership services. Secondly, the Blockchain services, which basically comprises off services related to Blockchain on transactions within it, as we have seen some of the key principles that need to be managed for a Blockchain, are that it runs on a P two p network on. Hence, we need a service that go ones. Dp to be protocol aunt. How dp to be communication will happen Consensus among the peers is one of the court requirements for the Blockchain, the consensus manager. Service within hyper leisure deals with the consensus protocol on how it will be achieved. Needless to say that we are talking about the distributed ledger technology, which will require the services that can enable the leisure storage in a distributed manner . Gen cords are nothing but the smart contracts, so essentially they are computer programs written in go programming language. They are executed in a secured container on is isolated from the other processes. Thus they help in managing the state off the ledger every nor can and tracked with the leisure only through the chain cords, hands every nor our peer need to have Jenn cord and start great. That's a bit exhaustive on It's beyond the scope of this lecture to cover the architectural in depth. But I hope this helps you and understanding how the architectural building blocks off hyper leisure fit together. All right, let's now go back to some of the projects that are running. Under this collaboration, it essentially has four frameworks. Fabric, which is aimed at mostly integration projects on, is contributed by IBM and digital assets. Iroda, on the other hand, focuses mostly on mobile applications. This has been contributed by a startup serum Itsu under the Gardens off Hitachi and NTT Data. Another framework is the sort Oot, which is contributed by Intel on it, uses off proof off elapsed time as the consensus mechanism. It has been used to burl some assets settlement on supplies and applications. Baro is the Blockchain client that has been contributed by a company called More Lax on Inter. On it has got four modules are tool kits. Composer, which is a tool contributed by IBM, is a rapid prototyping to you can easily manage the data on Blockchain various participants on smart contracts. Using the same Explorer is the analytical tool for hyper leisure. While Celo is attempting to bring the as a service model toe Blockchain, it could be a D app as a service software as a service and so on. Lastly, indie, which is still under incubation, is specifically being built for the centralized identity management. Many bangs and fortune 500 companies are working towards creating new applications using hyper leisure. All right, so now we know in brief what's under the hood off hyper leisure. That's all I have for this lecture. We will go through another Blockchain technology in the next lecture. That one is Golda Artery. Until then, enjoy your time. 23. Technology Platform - Corda - R3 Reference Architecture: hello. So far we have seen the reference architecture off it atrium on hyper ledger while it, Terry um, is a permission less Blockchain based software development platform. Hyper ledger is similar, but permission The third that we are going to see is not a Blockchain technology, but an abstract worsen off Blockchain. What I mean by that is it derives all the useful features on principles that the Blockchain is made up off. Aunt has built a new technology platform called Border. This is a slightly longer lecture on. I want you to pay a special attention as many off the concepts Onda we called our works are slightly different than our traditional Blockchain Colder has been developed by a consortium led by our tree on 80 off world's largest financial organizations. This is what the Lipsyte off our three say's about Korda. All right, we have seen some of the issues associated with permission less or public Blockchain. While permission Blockchain might resolve some off these issues, colder goes one step further. Aunt has built a system that takes the best of Blockchain on molded it into the business off finance some of the key features that Golda has are, of course, it's a distributed leisure. No need to tell us that. But apart from that, there is no global sharing off the data among participants. So only those who need to know will know that is. Only the parties involved in the transaction will know the transaction information. The key philosophy is, if you and me agree, why do we need an unknown party to know the details in Colder? The consensus is at the individual level on not at the system level. And like every other Blockchain, the key concept is that the financial agreements among the forms need to be respected. So at the time off, writing a contract or a smart contract, it allows us to define which parties will participate in consensus. These two the consensus on the data sharing, are the primary points on Ridge. Older is radically different than the Orthodox Block Jane Systems. One more concerned in case off Blockchain has always bean about regulation and supervision . Golda has boat default Nords for regulatory on supervisory roles on like hyper leisure. It also does not have a native currency for token. Great. I hope that gives you an overview off what border ease and how it is different with that coward. Let's go through the reference architecture off Cora. This is where it gets slightly technical, all right. It's very comprehensive on Allow me to walk you through the different building blocks off this architectures. This middle green box that you see is nothing but the North off the board, our system. It's basically a JV M or Java virtual machine running various components off the corner software. Let's see, what are these things surrounding this particular Nor or we can call them or elements within the architecture Well, it interacts with other nodes through the network layer off Korda. The database off SQL DB here is for storage services as well as for words. We will see that in just a few seconds. The owner off the node, which could be let's say, an intermediary can interact with the North and it services through the RPC, or remote procedure, calls Friend book. The North owner can fire various qualities, such as finding out the existing state or transactions about the network as well as the North specific information. The North owner as well as the order APS, a short form for bold are decentralized application. Communicate with various North services through this service, huh? The court APS would be any functionality, such as a payments, always digital wallet or any other commerce service. Now let's go inside the North. Let's go through some of the services that discord on North offers. The first among them is the world. The vault is a database, very. It drags all the current on historic states. States are nothing but the information about the facts. It has a reference to the contract the participants on the properties, such as who pays to from then on? How much so there might not be any state. In the beginning, however, Let's say details borrows $10 from John. That creates a new state that say's judicial those $10 to John by a particular date. It may even have various clauses off penalty our interests on, Let's say, after a week. Gee, Tish pays half off the amount, which is $5 to John Now that changes the state to the new one that records this transaction on makes the earlier state historic one. Walt actually stores all of these historic on current states inside the north. Remember, the states are information about facts on current state is something that's not changed on . It also has the reference to contracts and its details devolved. Stores only. The states, which are 11 to its own note storage. On the other hand, stores actual transactions, such as key value, pair on any attachment documents, etcetera, which are related to the states in the fall. The flow here automate the processes that needs to be executed among various nodes and participants, as we have discussed earlier. Older does not broadcast every information to the entire network. It in speed shares the information from point to point our party to party, the flow framework and shores this communication between various parties. The flow can be visualized as the process functional flow chart or a business process diagram such as this, you may want to pause the video on have a closer look at it. Identities on key management represent the legal or service identities. Legal identity is used by the party in a transaction, whereas service identity is used by those providing services within the North, such as a notary. Each identity is assigned a certificate on a key which is then very fighter by the North Network map is something like a directory, which provides information about all the nodes within a network, which you can quickly. No trees actually signed the transaction on preventing double spent. So essentially no tree services are similar to mining nodes, which have their own consensus mechanism, so a notarized transaction is considered as legitimate and final on. Then, finally, we have the messaging service, which is used to communicate with the other nodes within the network. On Before we finish this lecture, let's see what exactly happens when we are interacting with the Korda. I'm only going to explain some of the core functions without going march into the details off every component or service. Let's say this Korda up deals with payments on the request is initiated as an http request , we can imagine from the previous example that jellyfish is going to pay $5 from the 10 that he borrowed from John. This payment request then triggers the flu related toe this quarter up. As the flow starts, you may require to fetch some additional details, such as previous state. The earlier transaction details off how much money was old and so on, such as interest, penalty and all of that. We will then build on very fine the transaction. This is what the requester would do now. Once the transaction has been built, you would require the other party or the counter party which in this case is John to verify on signed the transaction. Now that the requester has initiated, Andi Responder has responded positively. The transaction is said to be complete but not yet finalized. To finalize the transaction, we need to send it to the notary on get it notarized after successful completion Off this tape, the transaction gets recorded as well as stored in the SQL Devi Wald will now have a different state that is sent as the response through the FBI colder that's uses various principles off Blockchain and has combined them with the business of banking and finance to bring us a unique technology. This could become a transformative technology platform in the near future. With that, we end this lecture. Thank you so much for listening to this long lecture on court our technologies. In this lecture we got an overview of colder. We also looked at the architectures on various components as well as services that forms the Korda Nord. We finally saw how the transaction is completed using flow on notary. Thank you so much for joining me. And I hope you learned a little bit about corner. Thanks a lot and enjoy your time. 24. Blockchain in Business - Supply Chain and Provenance : hi Blockchain, as we know, is a revolutionary technology that is transforming many industries. In this lecture, let's see how it can help solve problems as well as optimize some of the processes in supply. Chin on. Help us build the provenance through the same. Let's first try and understand how the supply Jin works with an example off one of the most expensive items in the trade that is diamond. The diamond mines are concentrated in certain countries such as Australia, South Africa, Russia on not America. Cutting and polishing off the raw diamond happen in countries such as India, China, Belgium and Russia. Veras, digitally manufacturers as well as the retailer's off diamonds might be from a completely different country. Let's see different steps involved from diamond mining to the retail buyer. The raw diamond from the minds is traded on, then sent to cutting and polishing units, which then goes to diamond margin trading houses. These diamonds are then sold to diamond retailers, where you can buy them as God diamonds or maybe to Julie manufacturing units. These units then manufacturer various jewelries such as rings or necklaces, are such the manufacturing units sells them to the dealers and finally to the retailer's. As we have seen, most of these activities are spread across the globe. The diamond industry max use off various means off transport, including airfreight, secure vans, etcetera. To move these diamonds from one step to another. At all of these steps, it's important to make sure that the correct quality and the quantity is maintained as well as the process is followed Trust. Transparency on the workflow tracking becomes very essential in case off such a high value trade as diamond on any fault in any off, these can be a very costly mistake. The block chain can record all the transactions on a public leisure from mining to retail in an impeachable fashion. Numerous paper intensive processes can be transformed into a distributed ledger. It also ensures transparency as all the participants in such a Blockchain will be able to get a complete history off the diamond, right from the mining source to the hands off the end customers. The Blockchain technology, when used for diamond trade, can significantly enhance the efficiency on security off the supply chain. Also, consumers can buy with confidence. In fact, every ledger is one such company which has so far digitally stored over 1.6 million diamonds. DBS has recently announced the development off a diamond Blockchain for the entire industry . Though I have explained this using the example of diamond trade, it can be applied in almost all kinds off supply chains, whether it is Unilever, which wants to use Blockchain to manage de supply from Malawi, a small country in Africa, or the Walmart, which tested the Blockchain for food safety. Oh, or even a major partnership between IBM and Mosque, which plans to create a Blockchain for the global supply chain. Blockchain is making inroads in all forms off supply gin. It sounds great and very overwhelming. Blockchain in supply chain, however, solves one more problem, which is Providence. Providence is nothing but the chronology or record off the ownership custody our location off a historical object. It has been used mostly in the context off rear items such as riel, artifacts, paintings, historical documents or acts, as well as some really rare wines. How we watch we all are very much concerned with the authenticity off the product that we use are consumed. We might be interested to know how a particular farm produce has been served on our dining table, though it might sound like a far fetched idea. I want to remind you off the spinach outbreak in the United States in 2006. It started in September 2006. On within a month, there were 1 99 people who were infected. Three died on 30 Once afford kidney failure off a particular type, it took the FDA two weeks to trace to a farm in California. Now, if we can use Blockchain for this Providence, we can trees products in matter off sections on take action, which can save lives. The ever leisure are the Blockchain db EOS may help us prevent the blood diamonds coming into the trade innocents. Blockchain not only improves visibility off the product across the supply chain, but also managers work flows better. It can lead to optimize, invent tree on finance. It also guarantees greater trust on then assure quality. I hope that explains how blocked in can be used across the supply chain as well as for Providence. That's all for this lecture. See you soon in the next one. Until then, enjoy your time 25. Blockchain in Business - Finance: hi we have seen so far how the Blockchain is set to transform the supply chain on Provident . We also saw how the property market can be ready till changed using block shin when we started smart contracts. Well, finance is one such field which touches our lives directly. How can it remains immune to Blockchain? In fact, Bitcoin is an example off how it radically changed the payment systems. Let's go back to the example off how you purchase this cause we now know how the transaction was routed through the multiple authorities. They acted as trusted parties in their own right. But it does lead to duplication off. Effort on is pretty expensive. Overall, due to third party fees, add is not very secure. We have seen so many hacks where the credit card data has been stolen from these central authorities. Also, typically it takes anywhere between 1 to 3 days for you, to me to receive this money in their account which means it's not fast enough is deep. If we had to pay using a Cryptocurrency like Bitcoin, all we needed to do Waas simply send Bitcoins to the your enemies recipient address through the Blockchain off course. This would have attracted some fees from the minor nodes, but that would have been very lays compared to the fees charged by the trusted parties in the traditional payment system. Let's take a slightly more complex example off how the block shin as a whole can transform the international treat. The international trade involves almost all types off financial services, such as payments guarantees insurance on Sean. In this case, we have an important on an exporter on they are trading certain goods. These goods are shipped across the ocean by a shipper or cargo company like let's say, for example, more risk. Usually, the exporter will always have a banker in his home country, and similarly, the importers will be dealing with a bank in its own country. The exporters will certainly sign a contract with the shipper to ship the goods the shipper needs to get the confirmation from the important on pass it on to the exporter once the goods are delivered. The exporter also typically has an insurance agreement with an insurer for the goods in transit, as well as any non payment risks that he may see. The important may provide a bank guarantee off payment to the exporters. The exporter then submits this to his bankers. The two banks will now have to deal with an agreement which they have entered into with their respective customers, which are exporter on Important. At the same time, every party needs to keep a record off the agreement they entered into along with their rights and obligations. Certainly we now have a long list off agreements that need to be kept track off for one single shipment in this digital world, even though the delivery off messages might happen very quickly. Various verifications in the manual on paper form, I cross this network could delay the payment from important toe exporter. It could even be couple off months at times on. Believe me, this does happen almost every time off. New shipment is to be delivered. A Blockchain with a smart contract can solve this problem with much ease. The smart contract can lives down. All the parties are participants, along with their duties and obligations. This will form a long list off if then else statements. So when the exporters shipped the goods, he can add the transaction details for the same As the cargo company shapes the goods, it can add the transactions at every stage until it finally reaches the importer. While this is happening on as the exporter gets into the insurance agreement, the premium do will automatically be part off these smart contract shipment aunt on a pre defined condition, which could be when the goods are packed on moved to cargo facility, the banks will automatically pay the insurance company the premium that is due on behalf off the customers. The importer, upon receiving the goods, updates these transactions, which then triggers the payment due to the exporters. The exporter's bank can now demand the payment for the goods. The borders bank will promptly detect that amount from the importance account on send it to the exporter's bank or the Blockchain. Address the mutability off the data. I'm the ability to change the state by the respective parties will ensure the legitimacy off the transactions. The Blockchain can change the international trade finance from ah high cost on long turnaround time to a low cost and short, or should I say very short turnaround time in case off financial services and banking, the Blockchain can be very effective in case off identity management so that we don't have to go through the same registration on verification processes. With every institute for also storing the digital assets on various financial contracts, the Blockchain can be very, very useful. It can also be used in lending transfers and payments for X on investments in case off lending the verified identity as well as stored personal data can be enough to grant are reject alone. Even after this Bussmann, the smart contract between the bank and the data can make sure that the repayment off the loan happens. As per the terms, Blockchain offers huge benefits in terms off reduced disputes in payments. As the smart contract can go on. The entire agreement with the built in consensus mechanism so nobody can believe and to making a particular payment are even delay our dishonor, a payment that is due to you as introduces various third parties, it significantly reduces the transaction fees on, hence the overall cost off transaction. The really used turnaround time. Our that means the reduced cost off delayed payment. It could be used in terms off interest costs. It also brings in huge efficiency into the system. I hope you have no understood how blocked and can be used in finance. In a nutshell. I hope you have enjoyed understanding all these applications on how Blockchain can transform the financial world as we see today. That's all I have for this lecture. See you in the next one. Until then, enjoy your time. 26. Conclusion - Blockchain Challenges: hi. We learned about the high level architecture off the three leading block shin or distributed leisure technologies off it. Terry um, hyper leisure on Korda. We also know that there is huge potential off blocked in technology, and there are many Fortune 500 companies that are building proof of concept our projects. However, at the time off evaluating the Blockchain technology in your organization, it's better to keep our emotions crown did on. Consider the challenges that blocked in technologies currently fees. It will help you make an informed decision. They are mostly related to standards security, privacy, regulation, scalability on skills shortages. Let's go through them one by one. Currently, there is a lack off one global standard that can be used for blocks and application development. Blockchain has become popular at a rapid pace. However, the standards for development has not kept pace with. This may result in a non interoperable systems being implemented, which could be a bigger problem and future. Also, a lack off clarity on how a smart contract will work in real life poses a beer danger. There needs to be a common protocol that will define how the terms off the contract will be developed and executed across the board. There are plans by the British standards institution on the eyes so but there is still some time before those standards can be adopted. I S O T C 307 plans to deal with the standardisation off Blockchain on distributed Ledger technologies. However, it's under development at the time off recording this video. The second issue is that off security, the security off data is one of the biggest challenges that Block Shin will have to deal with. Here. The security is more in terms off the leakage of information from the Blockchain to the other applications. Secondly, the sentry search in quantum computers may mean that the cryptographic security may not be adequate. Quantum computers are able to do tasks. Those are even beyond the reach off traditional supercomputers. Lastly, the integrity off the data stored at the Nord level good in itself posed various security concerns. The next big challenge that blocked unit to deal with these related to privacy. Though you can have an anonymous identity in block shin behind a public E, it's only until you decide to transact with another person that it will be revealed after that. The nature of public Blockchain makes it completely transparent to everyone you dealt with . That also means there is no privacy off transactions. All the monetary or non monetary transactions will be visible to others. Similarly, let's say we built a Blockchain in the health care dome in a public Blockchain off. That sort may expose critical health related data toe every participant on could be a huge privacy issue. They can be many such sensitive information that we may not want to share with the rest of the world. The 4th 1 on this is the one that can make our break. The Blockchain applications is the regulatory support. One key area is the technology governance Beyond standards. This one deals with various operational protocols, such as setting up off rules for leisure governance. What will happen if the keys are lost or stolen? Who takes the responsibility on is held accountable for such machines? The second point is about what will happen to various audit on regulatory filings. That is no clarity on the same, particularly when it comes to corporate on financial. Later, that will go on the block. Another key regulatory issue is the support from various regulators across the world. What will happen if the smart contract terms are not honored or there are disputes arising out off smart contract execution? Currently, we can go to various regulators and chords in case off a bridge. That's not the case with Blockchain based smart contracts. It also means that we need to find out a way such that traditional contracts and smart contracts co exist and sort of dependencies across these contracts. We will be foolish to assume that over a short period, all contracts will be smart contracts. There are multiple issues that need to be resolved to make Blockchain a scalable solution. It's very expensive to deploy a Blockchain solution, so on enterprise grade global application might not be cost effective in terms off our why it can generate. Also, as we have seen during the lecture on hyper leisure, the current throughput off the Blockchain application is very low and has very slow transaction processing speed. That can really be a big problem for large scale mission critical applications, as every note need to store the entire Blockchain and because the Blockchain is right, only it could lead to an endless storage on transfer off information that may require huge bandwidth on competition powers. It may also lead to a reverse from decentralized to centralized applications because the under point only the large players will be able to afford the kind off storage on computational power that will be required. Last but definitely not the least. Is the skills shortage off Blockchain technology. Though we would be able to get around with most of the challenges mentioned earlier, Getting a skilled and experienced resource is a bigger problem. That means it will be risky to adopt the technology a bit early. For smaller players, how they work, these kind of challenges are always faced by a revolutionary technologies such as Blockchain. Remember the early days off Internet it did evolve on? We do have various regulations, technology standards on government support for it. Let's hope that Blockchain community, which you're also part by now will be able to resolve majority off these challenges. That brings us to the end of this lecture on Blockchain challenges. Thank you so much for joining me on. Have a great time ahead 27. Conclusion - Evaluate Blockchain: Hi. So by now you have understood what is a Blockchain how it works. Various technology platforms on also the challenges associated with the Blockchain. Now, if you need to evaluate and consider whether you should use the Blockchain in your organization on on some new initiatives, how will you do it? Well, I will try to provide you with a simple guide that could be useful in making this decision . Well, it's just a guide on a rule off Tom in many other educational courses and contains you might have seen some decision flow chart for Blockchain evaluation our village. I like to keep it slightly different on weigh them on their marriage than simply yes, no type off answers. So what other factors that could be the deciding factor to choose the auction. I have divided them in the favourable. I'm not favorable decision points. Well, if you're using a shared and common date of its, you should consider using Blockchain every word. That's just one point. You should also check if they are going to be multiple participants or writers to the system. In this case, I'm actually referring to those writers which could be beyond your control, such as vendors or any third party. That basically means participants could be unknown to you on. You cannot always trust them are the participants would have conflicting interests. You may need to consider Blockchain if you have already established the need for cryptography for some other security purpose. It's also advisable to use the Blockchain if the business process to Manu played. The data has long turnaround time. Lastly, though the current systems maintained order trail, it is very easy to manipulate the same as Block Shen is a right only technology. Audie Trail is built into it hands. If there is a need to do the audit trails objectively, Blockchain is always recommended. Now let's see the decision. Factors which could prevent you from using Blockchain if you are using confidential data such as Social Security numbers or health record or such a public Blockchain is definitely not recommended are in case when you are going to store the data. With some third party, you may want to explore permission Blockchain, while making sure that you comply with the existing regulations and laws related to confidential information. Blockchain is used, particularly when the data is continuously changing its spade for mostly studying data, Blockchain is on over co. And hence not recommended. If the rules within the system require continuous changes depending upon the business and warm in, it's not recommended to use Blockchain. As the smart contract that is governing the rules would require frequent changes on it will be very difficult to keep track off. Many times there are simpler alternatives available. There is no need to be emotional or married to a particular technology. If a simpler solution is available, we should always implement the same. Even this checklist is not a yes, no checklist. I would rather suggest that you provide different wage to these points, depending upon what's more important in a given situation or business operating environment based on the same. If the weighted score is more than 70% for the Blockchain only, then go for it. All right. I hope by now you have learned enough to make a wise decision on whether to use the block shin or not. And if you need to, you're also aware off various technology options that are available with a fair degree off architectural understanding That brings us to the end of this lecture. Thank you so much for joining me here. Have a great time ahead