Not about digital currencies BlockChain Not about digital currencies

Traditional Way of Transferring money B

Traditional Way of Transferring money 5$ B

Traditional Way of Transferring money 5$ B

Traditional Way of Transferring money 3rd Trusted party B

Traditional Way of Transferring money 5$ 3rd Trusted party B

Traditional Way of Transferring money 5$ 3rd Trusted party B

Traditional Way of Transferring money 5$ 4.9$ 3rd Trusted party B

Traditional Way of Transferring money 5$ 4.9$ 3rd Trusted party B 2-5 Days

BlockChain Aims to: Eliminate the middleman Eliminate double spending Do it faster More Secure Traceable history

Open Ledger A B A=5$ D C

Open Ledger 5$ A B A=5$ A->B, 5$ D C

Open Ledger 5$ A B A=5$ A->B, 5$ B->C, 3$ 3$ D C

Open Ledger 5$ A B A=5$ A->B, 5$ B->C, 3$ C->D, 2$ 3$ D C 2$

A B D C Open Ledger 5$ 3$ BlockChain 2$ A=5$ A->B, 5$ B->C, 3$ C->D, 2$ 3$ BlockChain D C 2$

A B D C Open Ledger 5$ 3$ 5$ BlockChain 2$ A=5$ A->B, 5$ B->C, 3$ C->D, 2$ 3$ 5$ BlockChain D C 2$

A B D C Open Ledger 5$ 3$ 5$ BlockChain 2$ A=5$ A->B, 5$ Centralized Ledger!!! Still a middleman 5$ A B A=5$ A->B, 5$ B->C, 3$ C->D, 2$ 3$ 5$ BlockChain D C 2$

A B D C Open Ledger 5$ 3$ 5$ BlockChain 2$ A=5$ A->B, 5$ B->C, 3$ C->D, 2$ 3$ 5$ BlockChain D C 2$

Distributed Open Ledger 5$ A B 3$ 5$ D C 2$

Distributed Open Ledger 5$ A B New Problems: All copies in the network must be synchronized All participants see the same copy of the chain 3$ D C 2$

Distributed Open Ledger 5$ A B 3$ 1$ D C 2$

Distributed Open Ledger 5$ A B Unconfirmed Transaction 3$ 1$ D C 2$

Distributed Open Ledger Miners 5$ A B Taken from coindesk.com Unconfirmed Transaction 3$ 1$ D C 2$

Distributed Open Ledger Miners 5$ A B Taken from coindesk.com Unconfirmed Transaction 3$ 1$ D C 2$

Miners Special nodes on the network that validate transactions and add it to the network Compete for confirming the transaction The first to confirm it and add it to the block gets the reward

Miners Tasks: Validate by checking the blockchain if B has enough money to send to D Try to guess a key for adding the new transaction to the blockchain Once win, broadcast it to the network Other miners will stop try to validate it and try to validate a new block

Summary BlockChain NOT Equal Cryptocurrency Based on Distributed Open Ledger Miners compete each other for validate transactions and add them to the network Miners that win the competition get a reward