Original subtitles

Hi there, welcome here, guys.

And I was like, we have done small changes in our applications.

Basically, we haven't just removed some of that GSX and you have these empty Helloworld application

and is likely to continue and I will start talking about blockchains.

This lecture will be marked as the lecture.

Is a means additional additional information.

The lecture, this kind of the lectures are completely optional.

They are capable.

If you feel like that, you understand a topic or you already have information about a topic, you are

afraid to skip a lecture us, I will be explaining only theoretical stuff.

I will be dropping on the board.

I'll be not doing any any coding.

OK, so this is one of the lectures, so feel free to skip it if you already have information about

the blockchains.

For those of us with our staying here, we can start talking about blockchains.

All right, so I will get to my drawing board and I will be Albi.

I will be drawing for us.

I will show the example of how the transactions work in a normal banking system, and then I will show

example how it would work with blockchains.

I am pretty sure you already heard about the term while the bitcoin.

I'm sure you have heard about the Ethereum bowl of this.

Yeah, that both of these names are related to the digital currencies, but also to the term of the

blockchain.

So let's first explain banking scenario, then integrate into the blockchain scenario.

OK, let's say we have a two persons.

They have Alice and Bob, all of these guys, all of these people wants to open a bank account in a

bank.

So they have this entity.

We have a bank entity that's governed in some specific state, in some specific country.

They have issue two.

They don't have a issue, but they have a they are allowed to borrow as their bank that they have.

They got this permission by the state or by the state, by the country where they are operating.

So yeah, at least they have.

And we have a bob and both of these people who wants to open their bank account so they will go to the

bank, they will provide the private details.

They brought their name, the place that they are living in some of the banks.

When they then, they are opening some specific bank account unique to also provide that that are Évora

keying, what is your income and all of this information.

So OK, so we have a bob.

Bob is opening an account and we have Alice and Alice is opening account in the in the bank.

So here I will mark that banking database.

So there should be there is some kind of a banking database, let's say it's called my bank.

And Bob opened a bank account.

Also, Alice Bob Deposit put a deposit of, let's say, three hundred dollars.

They're talking about the dollars and Alice plays the deposit, the initial deposit of $500.

So Bob has a three hundred aliases, a five hundred dollars on the bank account, and the bob wants

to send the money to the Alice has to call to the bank to create a transaction or he can use in nowadays.

You have applications in your files or you know that website of your bank where you can you can send

a transaction.

So Bob Vila, go to the mobile application.

So we have here Bob, and he will access his mobile application.

Let's say, oops, that's a very straight line.

So he will open.

Uh, let's say it looks like my bank application and he wants to send some dollars to Alice so he will

make transactions.

Every bank bank is keeping a ledger of the transaction, so let's say Bob wants to send two hundred

dollars to Alice.

OK, Bob Bennett transaction?

It's sending 200 dollars to Alice.

This tragic transaction is verified by bank, it's verified if Bob has enough of money to send $200.

Also, the identity of Bob is verified and also on all this stuff is verified.

So Bob, can I make a transaction of $200 to Alice?

If it's verified by the bank, by the central authority of a bank, it's verified that it can be sent

everything.

It is good.

It can be sent.

Transaction is confirmed and money are sent to Alice.

OK, so Alice has now +200 200 and the bob has minus two hundred dollars so that at the base in the

bank is updated, right?

Bob doesn't have any longer 300.

He is now 100 because he sent two hundred.

And Alice received these two hundred, so Alice doesn't have her any longer.

Five hundred.

But their other seven hundred dollars does it?

That's how it worked on a baseline level of it.

They're paying their opening account.

They are placing some money.

When you want to make a transactions, they are using applications that are out of the gate as they

use theirs, or they're going straight to the bank that we need to verify ourselves as the owners of

the account and then we can send the money.

In this case, $200 pop is sending to Alice, and these kept on somma on some ledger, right as we can.

My bank ledger.

OK, Bobby, sending transactions and the transactions went through because it's verified by the bank.

So but as I as I told you, bank is does a company.

They had a permission by the state to operate as the bank.

And also, they gave you a guarantee that the transactions will be rightfully rightfully confirmed and

that your money just don't disappear randomly and that you can make transactions with the money and

you have also the security that your money doesn't go away.

OK, so that's how it working with the filter bank.

OK, so.

Let's explain our example of.

How this would work with the blockchain?

OK.

So for me to answer the question, what is a blockchain?

All right.

So blockchain is simply a system platform in which computers are connected with each other.

They are following some specific rules.

We mentioned before that we have our bitcoin, we have Ethereum in this case, Avonworth and Etherium,

you don't have any problems to understand bitcoin, so I will be talking about Ethereum as well.

OK.

Theorem.

If cerium blockchain, it's my first drawing actually on the board.

So I'm sorry if there will be some mistakes.

OK.

Ethereum blockchain.

And if you're on blockchain, the digital currency has to be heavy.

The dollars euros, if you're on blockchain, is issuing ether or its currency.

So if you have a digital currency, we have ether or if Ether 8H Ether ADA has some value on the markets,

but we'll be talking about this stuff later.

OK, so we have Ethereum blockchain algo only, but we're talking about the basic stuff.

I will not be talking about the specific stuff.

I just want to get you some base model in your minds so we can talk about more specific stuff in there

in the next Electra.

So just some base level information doesn't have to be specifically right or specifically for truth

on that on this specific level.

But as the.

As this high viewer as this overall view information, it is information available, be giving you the

details how a blockchain vortex as the initial lecture.

OK, so you can imagine blockchain as it tells you it is working on the internet.

You have a connected computers together, so we have these blockchain.

You can imagine this as a computer's connectivity with each other.

So we have a computer.

This one computer?

All right.

The second computer connected with each other on the internet.

OK?

I doesn't like to hear these squares.

Is simply blockchain.

All right.

Or is not specifically that blockchain, but blockchain system, we'll be talking about why it's called

blockchain very shortly.

OK, so these computers are connected to each other.

But how they can be connected on on the internet?

Of course, they has to run some kind of software.

They have to run some program that it's connecting them with with each other.

And that's that's right.

They're running some software, but they want to connect to the blockchain network.

You need to run on your computer or some specific software.

Either you have this, they're called clients Gail Marketeer, clients of anyone to connect to blockchain,

you need to around some client, some application, some software on your computer.

You have many of these implementations of this software.

You have Jeff, for example, that's written in a goal language.

That's a goal language.

And then you have that, for example, part of also other ones, they have a lot of them.

All right.

And these surrounding these programs in the rust programming language, and they have also the other

other clients of any want to be as a computer, A.L.S. or notebook or your personal computer.

You can connect to theory on blockchain or and is that your theory of blockchain here?

OK, so you have to run this specific specific client?

OK, so mark, here you have to around the client to get this little bit client and all of these computers,

they are running these clients.

OK, and this guy and they are connecting with each other.

OK, and we'll be refer to them as a PC as they are and they are, of course, the computers here,

but don't refer to them as a species.

But in the terminology of the blockchains you or other.

Call these notes notes.

OK, notes.

Why not these other node and all of the all of this nodes are connected with each other?

Of course, also blockchain has to keep some kind of the database Wu has.

How much money?

All right.

So then I would like to be a part of the blockchain.

I would like to make a transactions on the blockchain, OK?

That's one of the things I didn't mention as the bank.

You can make a transactions, keep your money safe and so on.

You can do the same stuff on the blockchain.

You cannot keep the money in this case.

In the Ethereum blockchain, you can care about Ether, OK?

And you can also send the transactions to other other people.

OK, so blockchain has to have some kind of stay.

All right, so of course, there is some kind of a database.

All right, Starbase, let's let's let's go to that debate in this case, it will be we'll be talking

about the specific specifics of this database later, not really in database in true sense, but to

get your base level, let's say, database and the database will be maintained by everybody that's connected

on the atrium blockchain.

So all these nodes are keeping track of the database and the database is through for every note and

every node has to keep the same state of the database.

Because if the blockchain escaping it, a singleton state.

OK, so Ethereum blockchain is keeping single at on.

Single let on a single state.

OK, because one doesn't have any other state as the second, though.

OK, so this has to be a same for every, every note, all the day keeping track of the same database.

So Bob has some ether and all of the notes knows about it.

Of course, they don't know that, Bob, because I was in banking.

You have a bank banging number in the Imperium Blockchain.

You have an address.

Are be talking about each other as you can create later.

OK, so we have here I be just I'll be calling the AH participant in a blockchain as the Bob River Alice

and also other participants.

And of course, we don't have their true names when they are connected, when they are, when they are

on the blockchain.

OK, you have another.

As in a bank, you have this Becky number in the blockchain, you have an address and there is a 20

bytes and no OK in hexadecimal format.

Let's say one, two and so on.

And here is the zero x and four three and so on.

And you have you have too many of these bytes.

You have 20 bytes.

OK.

So here you got the base, and let's say Bob has, OK, let's talk about this later.

So let's say Bob has some EPA.

And also, Alice has some if okay, so Bob has four and allies that have five of if if.

OK, so but then Bob wants to make a transaction, let's say Bob is making transactions, Bob is sending

to Alice by the money when he's making these transactions.

Also, Bob has to be connected to the blockchain or he has to has to make very clear to some other computer.

And this other computer has to be connected to the blockchain about, let's say, the bob is connected

to the blockchain, and he's making these transactions of about if he wants to send Alan.

If these transactions will be sent to the nodes in the blockchain.

OK, so these transactions are going to go here and these all his notes.

This transaction will be.

Sent to all of that notes on there on the blockchain.

And asset transactions will be not yet.

There will be not a transfer to transfer to the Alis will not immediately receive if aboutis transactions

will be added to the pool of other transactions so that part of the blockchain is also pool of transactions.

So we have you can imagine also the blockchain there is some you can call it.

It's called Mempool.

Actually, we can pull off transactions.

You will refer to this as a ma'am, ma'am, ma'am, Paula.

All right.

These E!

Mental.

OK, and you have these transactions that Bob made is that this is the.

The transaction.

Transaction is to to Paul, OK, so there are these transactions amongst the other transactions.

OK.

A lots of transactions, there are thousands of transactions sent every day, so these other two, the

pool of these transactions.

So how actually Bob can transfer his eve to Alice?

OK, so in the transactions to be added into the blockchain and to this database that is maintained,

but ever no to that it can change that transaction has to be added into that block.

The block blockage has a structure that's keeping the that that's the structure of the verify that transactions,

actually.

Yeah, we'll be dropping it.

So.

Let me throw it here.

So the transaction has been committed and is transferred through the all of the notes and other to mempool

the every kind of a note is a different that you have different types of notes, but there are specific

notes called full notes, full notes keeping that keeping the entire database of the blockchain at and

also they can mine transactions.

They are a reference as the miner, as I'm sure you have heard about the mining.

So the miners are just simply computers, other computers in the blockchain.

I will refer to them as the miners.

OK.

And they are running full nodes and the types of nodes.

I will be talking later.

OK, so they are also connected to the other nodes in the chain.

And they are, of course, they have access to Mempool.

Every note has access to Apple, every full node has access to Mempool, and they can add transactions

into blockchain.

OK, how they can do it.

So they are running software and the software is doing actually it for for them.

But simply what they will get, they will get a specific number of the transactions and they will verify

them, OK, so they will get some transactions from the mempool.

They will.

They will get these transactions and they will order them so they will get the transactions.

They will order them and verify them first after they are verify transactions that are ordered.

They can add them into the block.

But in order to add them to the block, they need to solve some mathematical puzzle.

Actually, they have to find some specific number.

It's a very huge, it's very huge number and it takes some time to to find this number.

It takes some computational power of your computer to find these numbers because any Trentham algorithm

and this will take some computational resources from from your computer it takes.

I think now its average time on the Ethereum blockchain is 15 seconds to to find the answer.

OK, but yeah, actually, you can imagine this actually as the structure has as a draw here, but you

can imagine it as the rather as the as the block.

OK, so they are trying to create a block of transactions and they will order those transactions here,

and they are looking for some specific number above the details.

We'll be talking later.

OK, so they're looking actually for a number called nonce number.

Then they will find answers.

There are a lot of miners competing with each other to find the first answer, to find the answer.

OK, so there are orders on sections they you'll find a number and after they will find this number

they can other block into the blockchain.

So blockchain also keeping the track of all of the blocks that they have ever been added into the blockchain.

OK, so you have also.

All of the blogs that have ever been added to the blockchain and that's the name blockchain, because

their blocks are connected with each other.

OK, so there are blocks of transactions, both of the transactions.

They're collecting each other.

All right.

Transactions, transactions and then the minor will find the answer.

They'll get other he can add a block into the blockchain, so now they block this block and be out of

here so he can add that block in the blockchain.

Of course, the blocks it also verified by other participants in there in the blockchain.

But let's say this block is now valid and it's added into the blockchain.

And let's imagine the one of these transactions here by sending money to lease the transactions that

went initially to the mempool that the miner has mined and added to his block and the vendor that he

found the answer on the block can be added to the blockchain.

And this will also update a state of the Ethereum.

The database will be updated along with all of the other clients in the internet talking amongst older

nodes in the in the network.

OK, so this blog will be added to the blockchain.

These will be updated.

So Bob sent if soluble evil at three and always will have six if.

OK, Bob has three.

OK, so on a very, very, very, very base level, that's how it works.

We have Etherium, but for him, we have Etherium.

Blockchain is there is a network of connected computers.

We are calling nodes.

They're running some specific software to get on a curve or a parity.

And if this software, you can connect with all of the other nodes to this network, then we want to

send the transactions we need to meet the transactions into the network.

For example, they're sending money from the bob to Alice.

These will get be added on the mempool, on the on, on the blockchains.

So the notes that are participating in the network a day can get the transactions and they want.

They are trying to form their from the block so the block can be added into a blockchain essence.

That block is added to the blockchain and it's considered as a valid block then that all the transactions

also be done the changes to the state of the of the Imperium blockchain.

OK, so all of the accounts and the transactions that had been sending money that they will update at

this this singleton database of this will be Bob will have a trade if and allies will have a six eve.

And also this will be then synchronized through all of the other other clients.

So now you can see this difference.

The centralized bank and decentralized imperium of blockchain with the bank, we can send the money.

Also with the Etherium, we can send the money, but ether and we can also have it.

We can do other things.

I will be talking about this in the next election.

So with the bank, we need to provide our private details.

It's a centralized it's a it's a trusted by government, by state and also protected by by the states.

Your money are basically protected like this.

But in exchange of for these benefits, you are you are basically dependent on the bank on the changes

which are done in the state, on the bank because a state can.

It will happen.

But the state can say that now there are some new rules, or maybe there is some inflation that your

money is losing the value and so on and so on.

But I don't want to talk about these things.

I just want to I just want to get.

The main point is here are the bank is centralized structure comparing to Ethereum.

Blockchain is a decentralized because it's around on the thousands of thousands of clients and their

transactions are confirmed by other computers and this computers in order to get transactions to the

transactions valid.

And also the money can be sent that denote the personnel that will find the answer.

To some specific to some algorithm, it can add these transactions to the to the block and therefore

the transactions will be reflected in the state of the of the blockchain.

OK, so how can we trust this system?

We'll be talking in the next lectures.

This system, I need to tell you from the beginning is a very is very secure.

All the transactions are verified by the thousands of nodes.

And also, there are some protections, mathematical methods and crypto methods that are issuing.

This is.

Close to 100 percent secure.

So about all these details, we'll be talking an exotic holiday explaining here quite quite a long time.

I will drop some resources for you in the resources of the lecture, some videos.

You can you can watch something about that if you're in blockchain or about a blockchains.

Overall, what I would like to get to your mind is just a it's just as it does.

The software is just some platform and it's working thanks to the cooperation of the thousands of people

that are connected with each other, and they are creating this kind of network, if any questions ask

them.

Let's go to the next lecture, and I promise that not all of the lectures will be that long.

Thank you for staying here, and let's continue in the next one year.