Blockchain Fundamentals For the Uninitiated Blockchain Most Confusing

Blockchain Fundamentals For the Uninitiated

Blockchain: Most Confusing of Emerging Tech

Blockchain for Dummies • A very popular book on the subject. Not to be mistaken for another similar book by IBM. All of 200 pages • This book explains the basics of blockchains, smart contracts, and cryptocurrencies. . • This book is a bit different than just about any other blockchain book on the market. It provides a survey of all the key blockchains in the public market, how they work, what they do, and something useful you can try with them today. • This book also covers the landscape of blockchain technology and points out some of the key things to be aware of for your own blockchain projects. Here, you find out how to install an Ethereum wallet, create and execute a smart contract, make entries into Bitcoin and Factom, and earn cryptocurrencies. • You don’t have to read the book cover to cover. Just flip to the subject that you’re interested in.

Blockchain for Dummies • This book is from IBM. Just over 40 pages • Blockchain For Dummies, 2 nd IBM Limited Edition, equips you with an understanding of what blockchain is, how it works, and how it can enhance your business and the industry in which it operates. You also discover the important difference between “blockchain” and “blockchain for business” • You find out about Hyperledger, and about IBM’s Hyperledger Fabric,

What is Blockchain • The blockchain is defined as an open ledger that offers decentralization to the parties. • In addition, it also offers transparency, immutability, and security. It has many features including being open, distributed, ledger, P 2 P and permanent. • Blockchain term was first introduced in the white paper of Bitcoin in 2009 by Satoshi Nakamoto. • The main reason behind its trustworthiness is how it stores and deals with data. • It uses cryptographic algorithms to ensure that the data is protected against any third party malicious actor. This means only the entity that owns the data will be able to access it. • Also, the data stores in the blockchain can be traced anytime which brings in transparency. • One more thing that makes blockchain trustworthy is the data integrity feature. Data cannot be changed after it is written. This is called immutability

An Example of Blockchain Use

Blockchain Advantages

Deliotte

Try it Out: Get a Feel • https: //blockchaindemo. io/ (Hands on Exercise) • https: //demo. recordskeeper. co/ (Publish a document you created to ensure you can prove it is your original work) • http: //blockchain. mit. edu/how-blockchainworks (Part-1) • https: //anders. com/blockchain/public-privatekeys/ (Part-2)

Blockchain Challenges Risks and Showstoppers Based on the best available research on the subject

PWC

The table shows the top five challenges that were of greatest concern in Hitachi’s discussions with over 50 blockchain user companies, including financial institutions and government agencies Source: https: //www. hitachi. com/rev/archive/2017/r 2017_01/104/index. html

Summary of Main Challenges for Blockchains-1 • Scalability: Both Bitcoin and Ethereum, the leading blockchain networks, have experienced slowed transaction speeds and higher fees charged per transaction as a result of a substantial increase in users. • The Criminal Connection: In a paper titled ‘A Survey on the Security of Blockchain Systems’ published through the Cornell University Library, a team of researchers found that cryptocurrencies are used by criminals to facilitate purchases of restricted materials on online marketplaces, as a tool for money laundering, as well as payment methods for ransomware. • Inefficient Technological Design: The Ethereum smart contract platform allows developers to deploy their own decentralized apps (DApps). However, a substantial number of smart contracts deployed on the platform have vulnerabilities due to their coding. Moreover, the Bitcoin network is designed to include a significant amount of data with each transaction. This makes the Bitcoin blockchain heavy and rather slow. Source: https: //blog. icoalert. com/7 -challenges-that-need-to-be-addressed-before-blockchain-mass-adoption-is-possible

Summary of Main Challenges for Blockchains-2 • Energy Consuming Consensus Mechanisms: It has been reported that the miners who work to validate transactions in the Bitcoin blockchain consume about 0. 2 percent of the global electricity total per year. This is equal to what the country of Bulgaria consumes. Moreover, going on the current trend it is being estimated that by 2020 the Bitcoin network will require more electricity than what the entire world currently uses. • Costs: because it is a relatively new innovation, it is difficult to integrate Blockchains with legacy systems. Such a process is an expensive affair. • Shortage: of blockchain engineers, developers who can make products and make it marketable. (Prof Banafa) Source: https: //blog. icoalert. com/7 -challenges-that-need-to-be-addressed-before-blockchain-mass-adoption-is-possible