REVOLUTIONIZING THE WORLD WITH BLOCKCHAIN TECHNOLOGY

What is Blockchain technology?

A distributed database

Picture a spreadsheet that is duplicated across a network of

computers. Then imagine that this network is designed to
regularly update this spreadsheet. This is the basic idea behind
blockchains.

Allows a network to become decentralized, meaning that there is

no main server or computer that the network is hosted on.
How does Blockchain technology work?
What are the benefits of Blockchain?
Immutability
A third party cannot make any changes to the data on the
blockchain.
Computers on the network work together to verify
transactions/exchanges being added to the blockchain. (a.k.a.
Mining)
Hackers cannot falsify transactions because the transactions are
verified by many computers on the network each running the same
updated copy of the blockchain.

Cannot be corrupted
Altering any unit of information on the blockchain would require an
enormous amount of computing power to override the entire
network.
There is no central point of failure (such as a database server)
Blockchain benefits (continued)

Highly reliable
With no central point of failure, even if a computer is compromised,
the blockchain network will remain untouched
Because millions of computers on the network verify with each other all
the data going through the network.

Cost-effective
There is no central database center of which must use resources to
keep the blockchain network alive
What is Ethereum?

In simple terms, Ethereum is an open software platform based on

blockchain technology that enables developers to build and deploy
decentralized applications.

Ethereum provides a decentralized application layer and

programming language for DApps (decentralized apps) to be
developed.

Think of Ethereum as a web browser and the browser extensions

are the DApps.
Those extensions are built for that browser, but there's many different
extensions which can do many different things.
What is Ethereum? (continued)

Blockchains are a way for many different people or computers to

agree on something even though they dont know or trust each
other

Ethereum use the same idea, but instead of just keeping track of
payments (ex. Bitcoin), you keep track of computer programs.
These computer programs can still be used to track money, but they
can also be use for many other things as well
(Web Browser Extensions analogy)
What is Ether?

Ether is a type of crypto token that fuels the Ethereum

blockchain network. Essentially, its the gas for the car
(Ethereum).

Ether is used by application developers to pay for the transaction

fees and services on the Ethereum network.
Application running on the Ethereum network are required to pay
ether for every operation they perform.

Ether is also given as a reward to those who contribute their

resources to the decentralized network.
What are Smart Contracts?

Digital contracts used to exchange money, property, shares, or anything of value

in a transparent, conflict-free way, while avoiding the services of a middleman
(ex. A bank or lawyer).

Suppose you rent an apartment from me. You can do this through the blockchain
by paying incryptocurrency. You get a receipt which is held in our virtual
contract; I give you the digital entry key which comes to you by a specified date.
If the key doesnt come on time, the blockchain releases a refund. If I send the
key before the rental date, the function holds it releasing both the fee and key to
you and me respectively when the date arrives. The system works on the If-Then
premise and is witnessed by hundreds of people, so you can expect a faultless
delivery. If I give you the key, Im sure to be paid. If you send a certain amount in
bitcoins, you receive the key. The document is automatically cancelled after the
time, and the code cannot be interfered by either of us without the other
knowing, since all participants are simultaneously alerted.
Uses for Smart Contracts
Financial derivatives
Breach contracts
Property law
Credit enforcement
Financial Services
Legal Processes
Crowd funding agreements
Voting systems
And many more things
Companies that use smart
contracts save time and money
by avoiding loads of paperwork
for transactions and deals.
Smart contracts take out the need
for trust in a deal, because smart
contracts are naturally secured.
Smart contracts cut out the
middlemen, saving time and
money.
Ethereum Smart Contracts

Smart contracts on the Ethereum network are run in the EVM (Ethereum
Virtual Machine)

Every single operation that is executed inside the EVM is actually

simultaneously executed by every node in the network
This is why Ether (the fuel) exists
Each of these operations have a cost measured in Ether
This price is deducted from the Ethereum account sending the transaction

Transactions have a limit on how much fuel (Ether) is consumed

This is a safe-guard against programming errors that could deplete an
accounts funds.
The Basics of Cryptocurrency
The Basics of Cryptocurrency
(continued)

Miners in the network are awarded (ex. Bitcoin) for mining a

block
A block = a ledger of transaction data
Each block requires computing power to perform the mathematical
equations

The currency cannot be faked

Each Bitcoin is created by solving a difficult math problem. The
computer that solves it is awarded a Bitcoin. There is no way to fake
the answer its either right or its not.
Ethereum vs. Bitcoin

Bitcoin is just a decentralized digital currency payment system

Ethereum is a platform for decentralized applications

A payment system like Bitcoin can be made on the Ethereum
network

Bitcoin is like an app on the app store. Ethereum is the app store.

Ethereum has faster transaction times

Sources

https://medium.com/zeppelin-blog/the-hitchhikers-guide-to-smar
t-contracts-in-ethereum-848f08001f05
https://blockgeeks.com/guides/what-is-blockchain-technology/
https://bitcoinmagazine.com/articles/how-decentralized-applicati
ons-could-bring-the-blockchain-to-new-industries-1455324259/
https://ethereum.stackexchange.com/questions/45/how-would-i-ex
plain-ethereum-to-a-non-technical-friend
https://blockgeeks.com/guides/what-is-ethereum/