Introduction to Blockchain and Cryptocurrency (Bitcoin, Ethereum) | Shaik Naushad | Skillshare

Introduction to Blockchain and Cryptocurrency (Bitcoin, Ethereum)

Shaik Naushad, Programming from 10 years

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16 Lessons (37m)
    • 1. 0 Intro Video

      1:07
    • 2. 1 What is Blockchain ?

      2:35
    • 3. 2 Centralized Vs Decentralized Vs Distributed systems

      3:18
    • 4. 3 Structure of Block

      3:34
    • 5. 4 What is Hashing ?

      4:09
    • 6. 5 Merkle Tree

      1:07
    • 7. 6 What is a Ledger ?

      1:44
    • 8. 7 Why use Blockchain ?

      1:31
    • 9. 8 What are cryptocurrencies ?

      2:12
    • 10. 9 What is Bitcoin

      1:54
    • 11. 10 Advantages and Disadvantages compared to Fiat Currency

      3:43
    • 12. 11 What is Mining ?

      3:01
    • 13. 12 Bitcoin Wallet and bitcoin: cryptocurrency exchange

      1:25
    • 14. 13 How is the price of bitcoin : cryptocurrency determined ?

      1:32
    • 15. 14 how to use bitcoin ?

      1:39
    • 16. 15 What is Ethereum  and how doest it differ to bitcoin

      2:30

About This Class

This is the blockchain and cryptocurrency series . This course will provide you everything you need to know about blockchain and cryptocurrency.

Blockchain and Cryptocurrencies are taking all markets and industries by storm. This course will ensure you are not left behind in what is the greatest revolution and evolution in technology and economics of our time and maybe even of all time.

I created this course for anyone interested in starting a career and wanted to learn more about blockchain and its implementations such as the immensely popular and large market of bitcoin, and etherium and other various cryptocurrencies.   As we cover everything you need to know from the blocks to the cryptography aspects to actually using it and the future of it in the world. also this course is great for anybody looking to refresh their finance and cryptocurrency skills. 


The ideal student for this course is anyone with a passion for learning more about the crypto market and the technology that power it. I look forward to seeing you in my course. 

The class will cover :

1. Basics of Blockchain ?

2. What are Centralized, Decentralized and Distributed systems 

3. How blockchain works, how it is structured and why to use it ?

4. What is hashing and what hashing algorithms are used to make blockchain more secure. 

5. What is a Merkle tree, ledger and their purposes in blockchain 

6. What are cryptocurrencies ?

7. What is a Bitocin, Ethereum and how they differ ?

8. Advantages and disadvantages of cryptocurrencies over Fiat currencies

9. What is Mining and how to mine more crytocurrencies ?

10. What is cryptocurrency wallet and cryptocurrency exchange ?

11. How the price of a cryptocurrency is determined 

12. How to use Bitcoin ?

Transcripts

1. 0 Intro Video: This is the Blockchain and Cryptocurrency Siri's. This course will provide you everything you need to know. My name is no shot on. I will be leading you through this course. I'm a software programmer on our serial entrepreneur. I created this course for anyone interested in starting a carrier and wanted to learn more about Blockchain. And it's implementations such as the immensely popular and large market off Bitcoin on a tedium and other videos. Cryptocurrencies. As we cover everything you need to know from the blocks to the cryptography aspect, Stow actually using it on the future off it in the world. Also, this course is great for anybody looking to refresh the finance and Cryptocurrency skills. The ideal students for this course is anyone with a passion for learning more about the crypto market and the technology that our wade I look forward to seeing you in this course 2. 1 What is Blockchain ?: blocky. Why did simplest school is really no more than or distributed? There are obvious you might be thinking that it a basis have bean around for a very long time. That's true. We do have data basis for very long time. But these Judah basis have bean centralized and want That essentially means is one party kundi data basis. They were trusted authority for maintaining and updating well, as the Blockchain uses a distributed system which is decentralized. What is essentially means is no one entity have control or with the transactions, and therefore it helps radios the put in show or hacking or fraud I created on ball. Other radio covering word distributed and decentralized blank forms are and how different they are compared to the centralized platforms now think unfit as a large worldwide computer where everyone can securely access data and execute transactional cord. All transactions are stored in blocks off data. These blocks are made in a way that makes them very hard to manipulate or fake. Once there stood toe the Blockchain due to the nature off Blockchain, you can say that it gives you are trustworthy way to store the data in scenarios where there are no trusts. This could be a monetary transaction between anonymous strangers on the Internet or the ability to securely store your medical information that can only be accessed by those new Allah. It is also would mentioning that Blockchain is generally not off place to store large amounts off data for each transaction. For example, you could generally notes toe images on Blockchain, but you might store information to validate if a image is Stanford or not. Most data stored on Blockchain focused on transactions and states off objects rather than actual objects themselves. 3. 2 Centralized Vs Decentralized Vs Distributed systems: Blockchain uses for distributed system, which is decentralized. It is both isn't balanced and distributed, sister, but it isn't will centralize to sister in this. Listen, I'm gonna explain difference between Central as the sister are decentralized system and are distributed sister now, starting with centralized sister. But centralized system essentially has a single A quality. It would be an individual. It would be a governor man for a company or an organization that controls the transactions off, processing off everything example. Your Internet provider is a great example off centralized system. If they want to choose to take the service off line or 80 offline for breaking terms and conditions, then you will lose access. Speaking about the desert front pages in a centralized system. If a company shuts down, the uses will be left in back and on the other side. Yet age off centralized system is. But because there is one central organization, they can sit one settle truths if the rules are fair and that is good. So now let's think about it. Synchronized sister. A decentralized system is one which requires multiple are is who may the own independent decisions. This is how decentralized system looks like on the main nodes. Let us call. Ah, superb. What a connector! If one super Norge Costa and they were all systems still functions, this super note will essentially a neck with this other network and these notes milk panic . But this super note. So the advent age off such a decentralized system is there is no single centralized a party that makes a decision on the HoJo. All the parties now finally speaking about distributed system, are distributed system. In its most simplest definition is a group off computers working together as toe appear as a single computer in the end user. These missions have a shared state or bread congruent Lee and can feel independently without affecting the school systems up. A distributed system looks similar to the structure in this network, not one single place. It's processing the pillar. This is also similar. Tokyo Tokyo one is a lance is if one note goes down and all the other users will have our off fire and guess up. Not Jane, it is both is centralized and distributed. There is there is no single a priority on draws and no single place process. The information 4. 3 Structure of Block: in this lesson, we will be covering the structure off block, but end up this Listen, you will have an understanding on why it is called Blockchain. The basic structure off the block in Blockchain has full sections. The first section is the block size which is the size or block in bites. And then we have look header. This actually is formed off six feels which we will be covering in a moment. The third section is transaction counter which shows how many plants actions are in this block and finally we have transactions, which is all the transactions that are being processed in this global Blockchain. And as it said, block header is formed off six feels which includes first real is the Bush wishing in general is the temple toe tracked the software political updates. Second, we have previous block hash. This is just ah hash out an entire PBS block. We'll discuss more on this in a moment and then we have a local drew hash. A more Uncle Drew is the hash off the route off a Merkel treat. Which tree will cover another video on how exactly a marquetry books next? Next we have our I'm stopped. This is just an approximate on creation off the block. Next we have a difficulty. Park it. It is a through ball work algorithm. Difficulty target for this block. Finally, we have not. It is a fundamental concept in cryptography. Nonce is generally our random number or a counter which helps to prove the Al Qaeda How multiple blocks are linked together. Imagine if we have four blocks, the number of blocks doesn't actually matter. In these blocks, we are gonna have four sections. This is just a simplification off. What you have seen about the thing we are concerned about is the previous hash. The band stack the random neurons on the route hash and linked to this we have all our Blockchain transactions and debate. The link together is that the hash off a previous block forms the previous hash off the next block with these blocks are chained together. That's how a Blockchain gets its name. Ah, Blockchain. So now would about the first lock in a Blockchain. Where does it gets its previous hash front? The first block is called Genesis Block and this is practically created just as the starting point. This block has everything similar toe the rest off the blocks except previous hash and the transactions. So the baby is hash is left black, and the transaction is not existence. It is this big Genesis block which is hashed and forms the previous hash for second block. This is how the structure block induction looks. 5. 4 What is Hashing ?: the goal off any blocking recites in concept off hashing hashing is basically to execute a mathematical al Qaida that gives a result off given land, regardless off the output given has she is one day function where it's a is to take some data as input and gives an output that does not resembles its personal form on it is not reversible. The data that is given as an input can be any text, image, video or any other digital country. And the only input is always gonna be same for that particular digital content. The common former for hash is X Elizabeth. It could be something else, but hex a dismal is the most common format they must be used. Hashing algorithm are generally available to the public. Hashing algorithm are generally created to execute fast. The very common al corrida used with Blockchain is a such A 256. It is one on the several hashing algorithms that produce long next strains. As a result, it is signed by the American National Security Agency on it is made available to the public . The essential is the family off hashing algorithms. The number following the name is the complexity Off or Garda. Let me show you an example off how the next looks like when it runs through the city, a 256 bel body that we get a long string. As you see here as it is a common uses off hashing algorithms. The first commonly use can be, ah, spend it as storing password. A very common use off hashing is during once password in database. If you stop passwords in clear text in your database, you're users might be a risk if you're database is happy. How very well. If the password is hashed, the hacker will have a very hard time to crank the password on. The second common use off hashing algorithm is to verify consistency. Hashing algorithms always gives same outward for the same input on. Always give a fix lint off result. They're also idea to verify the consistency off large amount off data. If you put an time Wikipedia red side and then into hashing algorithm and save the result in hash, you can easily figure out if someone had changed anything in the reps that even a single OMA would result in a different hash result. So when comparing two hashes, it is easy to figure out if two hashes match or not. In the match, nothing has changed and if they do not match, someone had made alteration through the orginal. And the third common use off hashing algorithm is security. Hashing algorithms are used in accomplice areas off modern security. For example, in secure communications with time stamps are exchanged, the three main requirements off hashing algorithms are they should be reasonably better, but not too fast. If the algorithm is too quick, it raises security concepts. If you change even bun bit, the end hashing should change and the third requirement for hashing algorithm is that hashing algorithm must be unique inner toe driven hash collisions. 6. 5 Merkle Tree: since we discussed hashing. Now let's quickly look at her related topic, called Morkel Tree Americal Tree is hash off hashes, which makes it quick and rather easy to confirm. Large amount off data and transactions. Let's say we have fourth sets or data the simplify. I'm using one word here, but it does it, but this could easily be transactions. In real life. These words produced four different hashes in a Markle tree group for thes hashes are hashed together appropriate hash off hashes. These hashes are then hashed together as well, creating what we call a route hash in order to figure out if something has changed anyway. In the Merkel tree, you only need to see if the Drood hash has changed and then you can follow down the tree to see where the changes stuff. 7. 6 What is a Ledger ?: in General Finance Ledger is a book but holds transactions in case off Blockchain. Let's talk about it's one off the most popular implementation, the bit one. It is essentially a database, a big one. Leijer is nothing more than a database, and this database stores all the transactions that have ever occurred in that sister on top of bad. It is public, so anyone can go and live it. Blockchain dot info is the great website, too. Do it. It is distributed and decentralized so no one person can take it down. That's what makes Blockchain and it's implementations so good the ledger might look like the following table. You might have an idea column, Ascender Qala a reasonable amount and our time stopped cooler. There is more information than this, but this is simplification. Let's say the ledger are the moment has three transactions here, Bob's and something for told. Don't send something to send, and Sam sent something to flap Bob since half a bit going toe Thomson's 5000 Bitcoins to send Samson's zero point Siegel 01 toe book The time stamp. We can see Thief 1st January 2018 and then off after Herbal 2018. It is public database that had occurred, or Bill aka and it is Frito Access on Blockchain dot info. 8. 7 Why use Blockchain ?: Why use Blockchain? There are plenty off use cases. One on the main reasons why you want to use Blockchain is it is not controlled by a single entity such as a government or big corporations and individuals. On the second point could be it being more secure, and the reason it being more secure is because it is not being controlled by one single entity. So it has no one point or failure, and the third reason you want to use it is Blockchain is open on free to use, and the foot point could be. It provides an audit trail like that you have never seen before. Whether that is in small or large kids scenarios, it is great to tackle money launching. Another great thing about Blockchain issue can crowd source processing power, and the 60 use case is that it provides more accurate for for intellectual property and finally, but autonomous applications. In case off autonomous applications, you can have something like Airbnb uber and have it fully automated. Analysts have done the research. They pretty much show that it can work 9. 8 What are cryptocurrencies ?: want our crypto currencies big going. It's helium and light. One are some off the main examples off script occurrences. The are additional assert, used as a medium off exchange or formally referred toe as commodities or currencies. Behind the scenes, they use something called cryptography here way the park crypto comes from in Cryptocurrencies, so they used cryptography to and showed the security and validate e off transactions using mathematics and algorithms. If you are not sure off cryptography, don't worry about that. We will cover about it in another video in detail. There's a lot of cryptocurrencies and some of them a bit one ethereum and lightweight rip pic, one being the largest one in terms off market popularity and biggest in the world, as are creating this video on other Peschel. Thing about Cryptocurrency is that there no back by a central authority such as the government, which would get the mind expanding. The value is actually did the mind promotional toe the interest in, said Cryptocurrency Andi work behind mining. Welcome on mining and more kept in separate video mining is eventually the process off, confirming the validity and security off transaction using mathematical al corridors and users are rewarded in part off Cryptocurrency and itself. More cryptic trances is created or issued not by single authority but through the process, going mining. It is as an Shelley our district form off mining for gold Bhutto, which have a finite amount with Bitcoin having roughly or total amount off 21 million. Roughly all Bitcoins will be mined by don't do 1 40 that is the current estimation. 10. 9 What is Bitcoin: What is Bitcoin? Big corn is a Cryptocurrency, which is essentially or destroy a currency, and they're not backed by a single authority, namely the government. Pure critically of fear like currency, which is essentially a dollar, could be backed by government. That sound of Bitcoin differs from a conventional currency. On other difference, off Bitcoin, the feared currency is it is decentralized and distributed. More details about decentralized and distributed recover in our previous videos. Another difference is it is not issue with traditional currency. The government will release more currency if they needed. Eventually are leading toe deflation were asked to currency are created with the process called mining. You can find more details about mining in our previous videos. It is the process off verifying transactions, validating maximum number off. Bitcoins will be around 21 million and based on difficulty off mining and the way the creation rate is automatically hard, it is estimated that all Bitcoins will be Children, aided by 2140. Another key feature about Bitcoin is it's public ledger. The public ledger stores all transactions and shakes with users on the network. The final piece off Bitcoin is exchanges and wallets exchanges essentially facilitates sending and receiving NorthPoint's and wallet essentially stores the big points. More details about exchanges and bullets are discussed in our next videos. 11. 10 Advantages and Disadvantages compared to Fiat Currency: in this lesson, we will be going through. How does a crypto currency like Bitcoin differs from up dimensional feared currency? Fiat currency when off the biggest features off feared currency is that it is issued by the government. So it is the central authority value is to the mind by the central authority or government . It is not very divisible if you have a $10 you exchange before and $1 notes acquaints. But there is a limitation for smaller denomination. But Big War is lot more divisible and not get a mind by government. It is easy to transect, but not the reason is being around for very long. On a lot off vendors able and organizations accepted and trust, so it is heavily used. It is not scared so more can be issued I the central authority. But that can lead to other economic catchers. But it is not scared. They can still issue more if they want to. The security is good, but can and is don't defeated so reasonable security but could be a lot better. It is widely accepted as a medium off exchange. It can easily be transacted or exchanged to any other currency. It can be used in real life. It means we can hold the currency with us in our hands. It does not get affected if the Internet is down. Example. If I want to transfer money to my friend, I can give just physical notes to him, which I have. Obviously, you can't do it with one as it depends on the Internet. So that's overall features that make field currency. Now in Gesell Bitcoin first thing it is decentralized. I'm distributed and control by network or uses. It is also highly visible. One big one can actually be divisible into 0.1 on a big one. So that is the lowest denominations. There are eight business. So you do have lot off versatility coming to Bitcoin and other cryptocurrencies. It is also a very secure because a single authority is not confirming the ballad it your transactions. It is a network off users that are using a majority off computers, thousands of computers all over the world, so it is very, very, very difficult. Tohave on other feature is it is easy to transact one of the downsides is not. Many vendors accept illiquid. This is changing number off users and vendors using it is growing because they have been around nine years on. Whereas Fiat currencies have been here for thousands off years, the value is didn't mind by the community and not by any single authority. It is using mining on speculations. It is free to use where you can eliminate transaction fee. Unlike forget currency. Itwas an Internet connection. No, in real life presents. 12. 11 What is Mining ?: in this lesson, we are going to learn about mining, whether it is Bitcoin money or other Cryptocurrency mining. As discussed. Bitcoin is a peer to peer network, and it is not controlled by a single authority with convention paper money. A central authority decides rent, toe print or equally, issue more money. And guess off Bitcoin as it is decentralized and distributed. There is another method for more coins to be issued. People use specials or red to solve math problems. These problems accord miners. Miners are rewarded with it. Kwan for solving the mathematical problems. These mathematical problems are solved for verification and approve mint off Bitcoin transactions. So you I would send five Bitcoins to a friend. That transaction should be ratified. Toby alleged transaction so minus work together to verify its validity. Incentives attract more, minus more minus. Make the system work robust and secure because they're obviously checking the validity, which ultimately leads to more adoption by the public, and this essentially has a feedback loop. The Bitcoin network automatically changes difficult off the maths problems. Miners are solid, so it depends on how fast the problems are being solved. The estimate is by 2140 all 21 million Bitcoins will be issued. One last thing is, Can you tweet? Yes. Fortunately, normal CPU were sufficient for mining. They could easily solve in mining mathematical algorithms. Then difficulty increases automatically in the network minus realized. Graphic parts were faster at solving the problems. Only problem with that is they became very hard and used a lot off electricity. In many cases, the actually cost off mining or they re boards. We're out breached with the actual cost of electricity. So ultimately, this leads to something called S I C card, which is abbreviated form or application specific. Integrated circular chips generally processes that are designed just for process off money . These are very fast compared toa processors on board even faster than GP use and are very electricity efficient. The range from a few $100 toe $1000 obviously more expensive. One provides you with more processing power 13. 12 Bitcoin Wallet and bitcoin: cryptocurrency exchange: What is Bitcoin wallet? It is essentially the equal in Paul of bank account. It is a collection off tribal case that facilitates descending, receiving or storing off. Bitcoins are quienes in case off other cryptocurrencies. There are two main types off wallets. In Cryptocurrency, there is a software online wallet such as QUIEN based on the physical hardware wallet with stores. The private case on a physical device such as a USB stick. The majority off wallets are our software wallets, as it is more safe to carry in case off physical devices like US mystics, you have threat off losing it and thereby losing only walker occurrences. Many software online wallets. I love the storage off different cryptocurrencies in case off coin base, the olive you to store Bitcoin materia and light point Bitcoin exchange. Ah, wanted, like coin base also allows you to exchange Cryptocurrency an exchange A loves the conversion off one currency to other example are US dollar to Bitcoin or a Bitcoin toe? Great Britain a pound or Ethereum Bitcoin 14. 13 How is the price of bitcoin : cryptocurrency determined ?: if it is not controlled by central authority, then who is? Did the mining van live off a Bitcoin at the moment? Three main things, if the mind its value. One. It's supply and demand. And then it's technology advancements. And finally, a pretty simple one. Perception, supply and demand is simple. No people wanted higher devalue if there is less people that wanted lower developed and in terms or the supply side more supply than Phil. How your demands and then second thing that commands the bandit is technology advancements regarding technology advancements and how it works if it becomes small secu in Prince off exchange if it becomes faster, if it is smoove widespread, so anything that improves the underlay pick will increase its value. And finally, perception. Reception is simply what people think off it. If people like value will be higher if they don't like, then value will balloon. This tree are the main things that you have to think about how to deter, mined the price off, are decentralized and distributed currency that is a Cryptocurrency 15. 14 how to use bitcoin ?: How do you use Bitcoin? First thing you want to do is to opiate on exchange account that will also act as a wallet aspect. There you want opiate or retrieve your public address, and you can think off this public countries like on email address. That is the unique I. D. If you want somebody to send you a Bitcoin, you should share you a public address victor, and then they can send big quints to you so you need a public address so that you can use it with other uses on the Net book. Next, you need toe by some big ones or crypt occurrences using normal feared currency. You can do this where exchange that could facilitate exchanging feared currency with Bitcoin or other CRYPTOCURRENCIES. The next thing you can do issue can apply for a Bitcoin debit card, just like pants. There are a lot of services that provide you with a Bitcoin debit accounts. These services have the one transactional see features and benefits. You can get a Bitcoin debit card, which allows you toe use your Bitcoin debit card at any outlets or online that accepts our regular David Carr. There are plenty of places to use your debit cards around the world from an actual date to the standpoint, you could actually replace you appear currency. Clearly, with Cryptocurrency, there are plenty of services that can help you to a play for David Cut. 16. 15 What is Ethereum  and how doest it differ to bitcoin: What is the Chilean and how does it differ? Toe Bitcoin Peter is the Cryptocurrency Andi. Materia is deep Blockchain implementation it is built on. As of 2018 it is the second largest Cryptocurrency, next to Bitcoin. It is also decentralized and distributed. Like it quiet and also uses on open ledger could use this mining as well. You can mind more people. Quartz. One of the main things that make it Syria great is a smart contract, which is essentially automated with no intermediate. A smart contract allows facilitation off various other phones. Imagine A B and B and oboe without a central authority. All automated doesn't require some sort off central, accordingly tracking it. So this is one of the main differences for people. Area blocks off transactions can be created faster. It is faster to use as Tom Pedro Bitcoin. Another difference. Is it a loves for computer applications, not just currencies to run on the network? This is probably most fundamental difference. We're not the example be like a cloud storage like Dropbox storing. You will find on several different computers on or distributed decentralized network, but without a central authority where they could potentially go down due to a hack. Or maybe financially they could go down because they made in operating so well. So in the end, you could lose your fans so you could use the tedium for cloud storage. Andi, you could use for storing messages because there were several cases where social it worlds have gone down. As a result, the actual message and content gets deleted. Imagine if it is stored on our decentralized system. Even if the company no longer exists, you are content will still be there. How big is the tedium? Or five million wallets capable off storing interior? And it is the second most valuable Cryptocurrency, uh, it gets off market next to Bitcoin.