1 – Blockchain Foundations

Consensys developer program
academy.consensys.net/developer

History of blockchain
1990s Stuart Haber / Scott Stornetta
How to keep the past data secure and keep digital information safe and resistant to tampering

  • 1991 – First paper outlined the use of a chain of cryptographically secured blocks to preserve the integrity of past information and protect it.
  • 1993 – Spam countermeasures
  • 2008 – Bitcoin is born
    Satoshi Nakamoto
    Released whitepaper:
    “Bitcoin: A Peer-to-Peer Electornic Cash System”
  • 2014 – Ethereum
    Currency transactions and can run computations.
    Distributed world computer running on a blockchain.
    “Ethereum Virtual Machine” (EVM)
  • 2015-2017 – Financial interest in Bitcoin / Blockchain

From Bitcoin white paper
“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.”

Triple Entry Accounting
In addition to standard entries in both books of transaction credit / transaction debit it includes additional entry of recording a transaction on distributed blockchain (similar to auditing).

Ledgers
Book of transactions
If you want to confirm that transaction took place you have to look into books of 2 businesses – credit to one and debit to another. Here comes the concept of double entry accounting.

Distributed Ledgers
Keeping copies of ledgers across the internet with specific rules to manipulate them.
Consensus: Consensus mechanisms ensure that the distributed ledgers of a blockchain stay synchronized.

Blockchain
Is a set of linearly connected information-containing blocks secured with cryptography.

Nodes: the computers that run the blockchain software.

Ethereum – free to download blockchain, can be programmed. These applications run across al the nodes of the blockchain – these applications are DApps – Decentralized Applications.

Tokenization – provides a set of instructions for creating digital representation of everything from physical objects to ideas.

Ether (ETH) is the token for Ethereum. Ether allows a user to pay for transactions on the Ethereum blockchain.

Majd Arbash

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