CSE1006 - Blockchain and

Cryptocurrency Technologies
Introduction Session
Dr. Pramod Kumar Maurya
Assistant Professor
SCOPE
Course Objectives
The objective of the course is to
• Understanding the mechanism of Blockchain and Cryptocurrency
• Understanding the functionality of current implementation of
blockchain
• Understanding the necessary cryptographic background
• Exploring applications of Blockchain to cryptocurrencies and
Understanding limitations of current Blockchain
• Introduction to recent research.
Course Outcomes
• To Understand and apply the fundamentals of Cryptography in Cryptocurrency

• To gain knowledge about various operations associated with the life cycle of
Blockchain and Cryptocurrency

• To deal with the methods for verification and validation of Bitcoin transactions

• To demonstrate the general ecosystem of several Cryptocurrency

• To educate the principles, practices and policies associated Bitcoin business

Modules
1 - Introduction to Cryptography & Cryptocurrencies
Cryptographic Hash Functions, Hash Pointers and Data Structures,
Digital Signatures, Public Keys as Identities, A Simple Cryptocurrency.

2 - How Blockchain Achieves & How to Store and Use

Decentralization-Centralization vs. Decentralization-Distributed
consensus, Consensus without identity using a block chain, Incentives
and proof of work. Simple Local Storage, Hot and Cold Storage,
Splitting and Sharing Keys, Online Wallets and Exchanges, Payment
Services, Transaction Fees, Currency Exchange Markets.
Modules
3 - Mechanics of Bitcoin
Bitcoin transactions, Bitcoin Scripts, Applications of Bitcoin scripts,
Bitcoin blocks, The Bitcoin network, Limitations and improvements.

4 - Bitcoin Mining
The task of Bitcoin miners, Mining Hardware, Energy consumption
and ecology, Mining pools, Mining incentives and strategies.
Modules
5 - Bitcoin and Anonymity
Anonymity Basics, How to De-anonymize Bitcoin, Mixing, Decentralized
Mixing, Zerocoin and Zerocash.

6 - Community, Politics, and Regulation

Consensus in Bitcoin, Bitcoin Core Software, Stakeholders: Who's in Charge,
Roots of Bitcoin, Governments Notice on Bitcoin, Anti Money Laundering
Regulation, New York's BitLicense Proposal.
Bitcoin as a Platform :Bitcoin as an Append only Log, Bitcoins as “Smart
Property”, Secure Multi‐Party Lotteries in Bitcoin, Bitcoin as Public
Randomness, Source-Prediction Markets, and Real World Data Feeds.
Modules
7 - Altcoins and the Cryptocurrency Ecosystem
Altcoins: History and Motivation, A Few Altcoins in Detail, Relationship
Between Bitcoin and Altcoins, Merge Mining-Atomic Cross‐chain
Swaps-6 Bitcoin‐Backed Altcoins, “Side Chains”, Ethereum and Smart
Contracts.

8 - Recent Trends
Text & Reference Books
• Narayanan, A., Bonneau, J., Felten, E., Miller, A., & Goldfeder, S.
(2016). Bitcoin and cryptocurrency technologies: a comprehensive
introduction. Princeton University Press.

• Antonopoulos, A. M. (2014). Mastering Bitcoin: unlocking digital

cryptocurrencies. “O’Reilly Media, Inc.".
• Franco, P. (2014). Understanding Bitcoin: Cryptography, engineering
and economics. John Wiley & Sons.
Assessment Methods
CAT 1 – 15
CAT 2 – 15
Quiz 1 – 10
Digital Assignment 1 – 10
Quiz 2 – 10
FAT – 40
Banking System
Transaction Process
• Transferring money to a payee through internet banking or by check
• Bank takes the action according to your balance
• Who maintain the ledger?
• Bank frauds
a. Forge
b. Modify transfer amount
Voting system
• If you are casting a vote, how do you make sure that the person or
purpose, you voted, gets the vote.
• Do you have any proof?
Supply chain management
• Blockchain can improve traceability, transparency, and tradability and
have a massive impact on every sector that relies on the supply chain.
Right now, products can be hard to track due to the unavailability of
real-time tracing. Also, it will become impossible for malicious actors
to change goods in any form or factor.
What is a Blockchain
• Blockchain is a shared, immutable ledger that facilitates the process
of recording transactions and tracking assets in a business network
(IBM)
• Blockchain is a decentralized computation and information sharing
platform that enables multiple authoritative domains, who do not
trust each other, to cooperate, coordinate and collaborate in a
rational decision making process. (Nptel)

https://www.chakray.com/blockchain-iot-security/
Key elements of a blockchain

• Distributed ledger technology

All network participants have access to the distributed ledger and its
immutable record of transactions. 
• Immutable records
No participant can change or tamper with a transaction after it’s been
recorded to the shared ledger.
• Smart contracts
To speed transactions, a set of rules — called a smart contract — is
stored on the blockchain and executed automatically.
A very Simple look of the blockchain

https://nptel.ac.in/courses/106/105/106105184/