TBBUG - Deep Dive (Part 1) - 2022Nov29.pdf
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This document provides an overview and introduction to key concepts in the current blockchain ecosystem. It discusses perspectives on what blockchains are, including as immutable distributed ledgers, trustless systems, and multi-party accounting systems. It also outlines what blockchains can do, such as powering coins, tokens, smart contracts for applications like DeFi, and limitations around scaling. The document discusses consensus mechanisms, public vs private blockchains, and challenges around oracles. It recommends a focus on core concepts, secure coding, and ignoring hype around prices and events when working with blockchain technology.
TBBUG - Deep Dive (Part 1) - 2022Nov29.pdf
- 1. Deep dive into current Blockchain ecosystem components (Part 1) Toronto Blockchain Builders and Users Group (TBBUG) Paresh Yadav http://www.linkedin.com/in/pareshyadav @yparesh
- 2. Agenda: ● Introduction to what we are going to cover ● What are Blockchains (or what they are not!) ● What can Blockchains do (and can not do as of now!) ● A Practical first step to working with Blockchain ● What to Focus and Ignore as Tech Builder/User ● Q & A
- 3. What we are going to cover ● Tech and only tech and application of tech ● At times we will simplify with analogies to get the concept across, No analogies are perfect ● Not going to cover “business” and Legal side ○ Tokenomics ○ The legal standing of tokens as “security” or not! ○ Investment advice (Else I would have been SBF :))
- 4. Beyond the usual - What is Blockchain ● Baseline Perspective - Blockchain is… blah, blah, blah, Yes it is a ○ Immutable, distributed ledger… ○ Trustless/Distributed Trust provider ● Perspective 1 - Blockchain or Network? ● Perspective 2 - Blockchain is these participants … ● Perspective 3 - Blockchain is triple/multi entry “accounting” system ○ Supply chains needs multi party ledger ○ E-commerce needs multi party ledger ○ Sovereign identity, SSO needs multi party ledger ● Perspective 4 - Global supercomputer = Blockchains with “VM” ○ Ethereum with turing complete EVM ○ Bitcoin without turing complete (stack based) scripting language
- 5. Beyond the usual - What is Blockchain ● Baseline Perspective - Blockchain is… blah, blah, blah, Yes it is a ○ Immutable, distributed ledger… ○ Trustless/Distributed Trust provider ● Perspective 1 - Blockchain or Network? ● Perspective 2 - Blockchain is these participants … ● Perspective 3 - Blockchain is triple/multi entry “accounting” system ○ Supply chains needs multi party ledger ○ E-commerce needs multi party ledger ○ Sovereign identity, SSO needs multi party ledger ● Perspective 4 - Global supercomputer = Blockchains with “VM” ○ Ethereum with turing complete EVM ○ Bitcoin without turing complete (stack based) scripting language
- 7. Beyond the usual - What is Blockchain ● Blockchain is… blah, blah, blah, Yes it is a ○ Immutable, distributed ledger… ○ Trustless/Distributed Trust provider ● Perspective 1 - Blockchain or Network? ● Perspective 2 - Blockchain is these participants … ● Perspective 3 - Blockchain is triple/multi entry “accounting” system ○ Supply chains needs multi party ledger ○ E-commerce needs multi party ledger ○ Sovereign identity, SSO needs multi party ledger ● Perspective 4 - Global supercomputer = Blockchains with “VM” ○ Ethereum with turing complete EVM ○ Bitcoin without turing complete (stack based) scripting language
- 10. Beyond the usual - What is Blockchain ● Baseline Perspective - Blockchain is… blah, blah, blah, Yes it is a ○ Immutable, distributed ledger… ○ Trustless/Distributed Trust provider ● Perspective 1 - Blockchain or Network? ● Perspective 2 - Blockchain is these participants … ● Perspective 3 - Blockchain is triple/multi entry “accounting” system ○ Supply chains needs multi party ledger ○ E-commerce needs multi party ledger ○ Sovereign identity, SSO needs multi party ledger ● Perspective 4 - Global supercomputer = Blockchains with “VM” ○ Ethereum with turing complete EVM ○ Bitcoin without turing complete (stack based) scripting language
- 11. Beyond the usual - What is Blockchain ● Baseline Perspective - Blockchain is… blah, blah, blah, Yes it is a ○ Immutable, distributed ledger… ○ Trustless/Distributed Trust provider ● Perspective 1 - Blockchain or Network? ● Perspective 2 - Blockchain is these participants … ● Perspective 3 - Blockchain is triple/multi entry “accounting” system ○ Supply chains needs multi party ledger ○ E-commerce needs multi party ledger ○ Sovereign identity, SSO needs multi party ledger ● Perspective 4 - Global supercomputer = Blockchains with “VM” ○ Ethereum with turing complete EVM ○ Bitcoin without turing complete (stack based) scripting language
- 12. Perspective X, Y, Z?
- 13. Blockchain tidbits ● POW, POS, POA ● Consensus ● Private and public blockchain, permission-based and permission less ● Blockchain Data Models ○ Physical data model ○ Logical data model ■ Unspent Transaction Output model (UTXO) (Bitcoin) ■ Account Model (Ethereum, Polygon etc.) ● Analytics on/of blockchain data
- 16. Blockchain Transactions “Network” Model
- 17. Blockchain Logical Data Model / Data structures ? Examples https://www.covalenthq.com/blog/bsp-launch-announcement/ https://demo.chainalysis.com/request-a-demo/
- 18. Merkle Trees
- 19. Blockchain is not… ● They are NOT ○ SQL DBs ○ NOSQL DBs ○ Whitepaper and Protocols! ○ Coffee maker (yet) :)
- 20. ● Blockchain and Network ● Layer 1 Blockchains (Bitcoin and Ethereum) ● Layer 2 Blockchains (Polygon, Solana etc.) ● Bridge (L1 to L2 eg Avalanche Bridge) ● Testnet (For Ethereum = Görli, Kovan, Deprecated Rinkeby) ● Airdrops ● Bug Bounty programs ● Hardfork, softfork and rollbacks! ● Bitcoin :), Ethereum, Polygon, Solana, Avalanche, Cosmos, Polkadot, Cardano, Arbitrum, Optimism, Elrond, Algorand and other 100s if not, 1000s Some things you should know
- 21. What can Blockchains do (and can not do as of now!) ● Blockchains Can ○ Coins and Tokens and Stable coins ○ Store and transfer of value with speed and minimal transaction fees ○ Smart contracts ■ DeFi, DAO, GameFi, Flash loans, NFT, Ledger for Metaverse, Mixers, Web3, Mixers, IPFS ● Blockchains Limitations (as of now, WIP) ○ Missing matured ecosystem ○ Can not scale to compete with TradFi (hold your rotten tomatoes and eggs :)) ○ Dapps have vulnerabilities due to lack of talent (hold your rotten tomatoes and eggs :)) ○ Decentralized and scalable at the same time (CAP theorem) ○ Blockchain Trilemma (decentralized, secure, and scalable, choose two out of three) ○ Can’t make you coffee yet :)
- 22. Blockchain CAP Theorem Blockchain Trilemma
- 23. Dapp for dummies version
- 24. Solutions to address limitations ● privacy, programmable privacy (ZKP) ● Scaling ○ Side channels, Lightning protocol ○ Rollups ■ Optimistic ■ ZK Rollup ● Securing ○ Protection against MEV attacks ○ Automated auditing ● Scaling the ecosystem ○ Education and training
- 25. Side Chains / Channels / Rollups (Assume 1 $ = 1 MCN Coin) 100 100 Jane John Bank ($) Side Chain (MCN) Bank ($) Side Chain (MCN) 100 100 Peter Pamela +10 -10 +10 -10 Bianca Ben +20 -20 +20 -20 Camila Ken -15 +15 -15 +15 Total 115 85 115 85 Main Chain 15
- 27. Other Challenges ● Blockchain apps depends on “Oracles” to provide off-chain information
- 28. What to Focus and Ignore as a Tech Builder/User ● Focus on ○ Core concepts ○ How to write good maintainable code! Duh ○ How to write secure code ○ How to write scalable code ● Ignore (ignore as in ignore the hype or crash yoyo from financial view point) ○ Price of Coins, token/s and NFTs (Bitcoin included) ○ Collapse of FTX, Terra(?) ● Can you ignore? ○ Crypto winter? ○ Job market? ○ Hacks? ○ Scams?
- 29. References and Resources for further reading ● Book “Move Over Brokers Here Comes The Blockchain”, Author: Keir Finlow-Bates ● https://ethereum.org/en/whitepaper/ ● https://www.coding-bootcamps.com/blog/ethereum-architecture-and-components.html ● https://subscription.packtpub.com/book/application-development/9781788831383/1/ch01lvl1sec15/blockchain-a nd-ethereum-architecture ● https://ethereum.org/en/developers/docs/transactions/ ● https://hackernoon.com/bitcoin-utxo-vs-ethereums-account-based-blockchain-transactions-explained-simply-16 4x37f5 ● https://www.zastrin.com/courses/ethereum-primer/lessons/1-5 ● https://medium.com/heartbanklab/a-complete-mental-model-for-ethereum-dapp-development-5ce08598ed0a ● https://hackernoon.com/bitcoin-utxo-vs-ethereums-account-based-blockchain-transactions-explained-simply-16 4x37f5 ● https://ethereum.org/en/developers/docs/standards/tokens/#:~:text=Here%20are%20some%20of%20the,for%2 0artwork%20or%20a%20song ● https://101blockchains.com/blockchain-bridges/#:~:text=The%20use%20of%20best%20blockchain,scalability% 20while%20reducing%20transaction%20fees ●
- 30. Contd… References and Resources for further reading ● https://www.minima.global/post/cap-theorem-and-blockchain ● https://101blockchains.com/optimistic-rollups-vs-zk-rollups/ ● https://www.minima.global/post/cap-theorem-and-blockchain ● Example rollup transaction - https://etherscan.io/tx/0x9102bfce17c58b5fc1c974c24b6bb7a924fb5fbd7c4cd 2f675911c27422a5591/advanced ● https://hackenproof.com/programs ● https://ethereum.org/en/developers/docs/scaling/zk-rollups/ ●
- 31. Q & A Thank you!