Let’s Understand Blockchains – The Technology behind Bitcoins

Introduction to Blockchains

Blockchains are secure databases by design.  The concept was introduced in 2008 by Satoshi Nakamoto, and then implemented for the first time in 2009 as part of the digital bitcoin currency; the blockchain serves as the public ledger for all bitcoin transactions.

Business networks today are often inefficient because each participant in the network keeps the record of all transactions between all the parties that business interacts with. This is expensive because of duplication of efforts and adds costs for their services.

One solution to above problem is Block Chain which provides a shared ledger technology that allows any participant in the network to see the one system of record. It provides efficient transfer of goods and services.

Requirements for BlockChain for business:
  • Shared Ledger: Append-only distributed system of the record shared across the business network.
  • Smart Contract: Business terms embedded in the transaction database and embedded with transactions.
  • Privacy: Ensuring appropriate visibility, transactions are secured, authenticated, and verifiable.
  • Trust: Transactions are endorsed by relevant participants.
Benefits of BlockChain:
  • Saves Time: Transaction time is reduced
  • Removes Cost: Overheads and cost intermdiaries are reduced
  • Reduces Risk: Tampering, fraud and cyber crimes are reduced
  • Increases Trust: Through Shared processes and record keeping, trust is increased.
About the Speaker
Abhinav Ramesh– CEO, Wandx presented a webinar on Blockchain, the technology behind bitcoins.

Wandx an Ethereum Token Market Place. We’ve built a decentralized exchange enabling Ether for ERC20 as well as ERC20 for ERC20 Token swaps. We’ve also designed a protocol for trading in ERC20 Token baskets that drastically reduces transaction time.

Wandx is hiring for various positions. Apply with your resume to careerhunt.net@gmail.com

 What is blockchain – Blockchain is a technology that enables Bitcoins.

Technologies to learn to become bitcoin/blockchain developer
Data structures

Linked Lists : Basic knowledge of linked lists
Trees: Basic knowledge of trees, different kinds of trees. Concentrate more on binary trees and later on what merkle trees are
Stacks: How stacks work and some basic implementations of the same

Networking

Basic knowledge of networking like IP, broadcasting/multicasting, P2P networks (torrents) would suffice

Mathematics

Mathematics and Computer Science are closely related.For a Blockchain developement,Probability,Permutations and Combinations are very much needed.

Probability: Basic probability theory for understanding the calculations about the probabilities of deriving private keys using brute force.
Permutations and Combinations: Basic knowledge to calculate the numbers involved in finding the probabilities.
Byzantine General’s Problem:

Cryptography

Cryptographic hash functions (SHA-2, RIPEMD160):
Digital Signatures:

Video courses

After getting a good grasp on the above topics you can continue with the book you have mentioned, or if you want videos, then there is a playlist on youtube by Princeton University on Bitcoin and cryptocurrencies, the first three lectures would be enough for you to start programming and getting your hands dirty with the Bitcoin Core software

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