my mother my father my friends they say
what are you even doing what is
blockchain or what is Bitcoin about is
cryptocurrencies so I have started
traveling the country to explain to
people who are not aware of this to the
rest of us what is a blockchain like if
this is such a complicated thing please
let us please explain it to me so this
is what I do to start with what is
blockchain let’s understand the problem
first so imagine my friend is on a
vacation and he calls me and says hey
Maya
I have run out of money I need some
money can you transfer the money to me
and I’ll say okay cool I’ll do that so I
immediately call him a bank manager and
say hey please transfer this money to my
friend and the bank manager goes and
makes this entry in there is in the
register he says from you to Joe from my
account to Joe’s account goes $1,000
that’s it that’s 108 he makes and my
$1000 now belongs to Joe what just
happened my bank manager didn’t take
money and went on to Joe and deposit in
the money he just made an entry so I’ll
go back and say to Joe hey bro I have
sent the money so you can withdraw it
and he’ll he’ll he he’ll have that money
with him so the thing is money is just
an entry in the database money is
nothing a lot of interesting things are
the more important things in our life
are just the entry in the database so
now the Weizmann started asking if money
all these important things are just an
entry in the databases why do we need
banks or someone else to manage to keep
track of this database can we do it
among ourselves if Joe and I have to
transact with it with each other is
there a way that we do not have to go
through the third party because what if
the bank manager misheard me when I was
said I want to transfer $1000
he could have misheard me or he he could
have heard me right but miss wrote while
making the entry or he was just a the
best friend of my friend so what would
happen then he deliberately was
dishonest and tryin try to steal money
from me when you give the power to
someone else he can do all these three
things
so these three things can they be
avoided for centuries now we have been
putting all our eggs in just one basket
and that to someone else’s so this is
the problem that blockchain solves
Chane is nothing but just a way to
maintain the same database that our bank
does but without the banks so here’s how
it works so this is the situation
imagine they’re 10 people these 20 then
these 10 guys say we want to manage this
database among ourselves without the
banks here’s the situation
each of these have an empty file folder
with them enter a blank page and append
with them so what will happen some
they’ll write something on the pin on
these pages
they’ll put away the page in the file
folder they’ll bring bring out a new
page and this process will keep on going
and this file folder will keep we’ll
have a lot of pages in it eventually
making the same database that our bank
has so here’s how how it will work
whenever an important announcement
whenever an important event happens in
the network they an announcement is made
for example if number two wants to send
$10 to number nine she’ll make an
announcement loud and clear hey I am
number two I want to send my $10 to
number nine
everyone will check if number two has
enough money to send to number nine and
if she has everyone make will make an
entry in their own blank pages that they
have something like this from number two
to number nine goes ten dollars very
similar-looking entry that the bank does
but in their own pages so everyone has
their own pages now this process keeps
on going and another transaction another
announcement another entry this probes
this process keeps on going until all of
them run our sons out of the space on
the page now the current page is over
you cannot make more entries on the
current page so you’ll have to file this
page in the file folder bring out a new
page today I repeat the whole process
again and this goes on forever
but here’s the cool crux of blocks in
comes in how do you file the page in the
file folder there has to be two
conditions that has to be met one when
filing the page in the file folder we
have to make sure that every one all of
these ten people had the same contents
on their page because the three things
someone might have misheard someone
might have missed out or someone was
trying to just be plain dishonest so we
have to make sure that everyone has the
same content on their pages and number
two when the page is filed in the file
folder
it cannot be modified ever like ever not
tomorrow not next week not next month
not now
next year not next decade ever so how do
we do it this is the whole magic of
blockchain this is completed by
something we call a hash function
mathematically but to understand for
this session we’ll just call it a magic
machine so this is a mathematical
function but here’s the properties of
this machine it takes some input on the
left-hand side
and it gives some output on the
right-hand side here’s how input and not
looks like if you give a very sensible
looking input on the left-hand side say
the number 4 you will get a very
gibberish looking word say dcba on the
right-hand side it doesn’t make any
sense how 4 goes to dcba
it doesn’t make any sense but every time
you will pass for you will get D CB ei
so if you pass 26 just 22 more number +
4 + when you do but you will get
entitled different looking number which
is like 9 for C 80 this word on the
right hand side can also include numbers
as you can see so you pass some
meaningful data and you will get some
gibberish looking data on the on the in
the output side but it won’t make any
sense how do these three things are
related so we’ll use this pro machine so
the property of this machine is there
two properties one every time you will
pass the same number say the number 426
you will get the same data every time
today tomorrow next decade always this
is the property number one property
number two if I give you the output if I
say I’ll give you 9 4 c8 E and you have
to calculate the input there’s no
reverse magic machine where you can just
pass in 9 for CA T and you will get 26
in the as the output so here’s how we’ll
use this magic machine to seal the
contents of the page and to make sure
that everyone has the same condense on
their pages so this is the puzzle that
we’ll have to solve so the if I will ask
you if I give you this puzzle where you
have to find the input such that on the
right hand side you get a word that
starts with 3 leading zeros how do you
do that
there is no reverse magic machine you
cannot just feed 0 0 0 on there as the
input and get the word and the input
said it and they required input so the
only way to do it is guess you keep
guessing numbers until you reach 2 over
that until until you reach to a number
that when fed to this magic machine
yields a world that that starts with 3
leading zeros here’s how this this
solving this puzzle will help us seal
the contents of the page
so here’s here’s the matter so you start
with 217 then 9,000 something then would
need 18,000 something 11000 something
eventually we’ll find a word that will
some mutually like seven 2533 which
we’ve been passed in this matching
machine will yield zero zero zero see
that’s how you solve this puzzle and
this is this puzzle will help us solve
the problems of the money with the banks
so now if I have to see the content the
content that I want to see suppose there
is a page on which there’s a large one
number written which is two zero eight
nine three just one number and I and I
have to seal this page how do I do it
and I this is the problem that I’ll
solve I’ll say now this time you have
two inputs on one side I’m giving you
the content that I want to see and the
second input is you have to calculate a
random number when we add these two
numbers and feed it to feed in this
matching machine you must get a word
that starts with three leading zeros how
do you do it again you guess so probably
you’ll find a number like 2 1 1 9 1 when
you add in 2 2 0 8 9 3 and fill it to
this magic machine you will get 0 0 0 7
8 so this is how you see in the page so
you have this big number written on the
page so you just put a seal on this page
2 1 1 9 1 if ever I have to check if the
contents of the page are modified the
only thing that I have to do is I say
after 10 years I will just quickly add
these two numbers up fit it in the
matching machine and see if it yields 0
0 0 something and then something if it
does the contents of the page are still
ok are not changed are not modified
Anakin and I can trust the contents of
the page if it doesn’t give 0 0 0 and
then something else I can be sure that
the contents of the page were
compromised if they were modified and I
then they are useless to me and I will
just throw them away so in our case the
first input looks like the contents of
the page which is the list of
transactions so I’ll take the list of
transactions as the first input and I’ll
have to find the one random number which
when appended to this list of
transactions will yield a word that
starts with 0 0 0 so here’s the same
situation when we ran out when everyone
ran out of the space on the page every
once started solving this puzzle every
time my page got over I started finding
this random number he such that when we
append this random random number to the
page and we pass into this magic machine
should give zero zero zero and then
something else
suppose the number five guy was the
person who found the who found the
number and he said hey guys listen I
have found the ceiling number and it is
and it is nine one two five seven four
he announces it to the whole network and
everyone quickly verifies everyone
quickly takes their content of the page
append nine one two five seven four and
feed it tune this feed in this matching
machine to see if it gives zero zero
zero and then something else if it does
it means everyone has the same contents
of the page
everyone has same content because
everyone this number is solving the
problem of everyone now what if someone
doesn’t have someone doesn’t get the
zero zero zero on the right hand side
suppose number eight says listen guys I
see that you go.you all of our getting
the same number but somehow it is not
working out for me so again three things
could have happened either number eight
misheard some transaction when misheard
some announcement or number two he heard
it right but he missed throat while
making the record of the transaction or
number three he was just trying to give
a favor to someone and he was just
trying to be plain dishonest either of
these three cases all of the network
will say – number eight hey listen we
don’t care if you were dishonest or if
it was a mistake we’ll give you benefit
of doubt so you have two ways to do it
either you don’t do anything you just be
in your own world and we’ll stop
acknowledging your presence in the
network and we’ll stop acknowledging
your announcements from here on or you
throw up your page because you also
believe it is something that is that not
the entire network agrees upon you throw
up your page copy the contents from
someone else’s page who’s the pro whose
page gives the three leading zeros and
then then file it in a file folder away
so every time this is the process
announcements are made everyone writes
someone everyone tries to solve the this
cryptographic puzzle everyone tries to
find this random number whoever finds it
he announces it to the entire network
and everyone then sinks everyone says
this is working for me this is not
working for me if this is working for me
well if it is
working for me I’ll copy from someone
else’s to the contents of someone else’s
page and then I will put away the file
folder the entire thing is at the end of
every page it is guaranteed that
everyone will have the same contents on
the page and because the behavior of how
the ceiling number works the contents of
the page can never be changed so slowly
over a period of time this stack of
pages of one after another after another
after another will eventually form this
database that we have with the banks so
this page that I am barb that that I am
again again and again calling the page
is actually called a block and the chain
of blocks eventually eventually performs
the blockchain as we know it and this is
like the general thing that you that
that is in the idle scenario but in real
scenario a blockchain looks something
like this where these green pages and
blue pages are the disagreements in the
network when I say hey this is not
working out for me but I still do not
trust the rest of you so I’ll be on my
own way and I will keep finding my own
numbers so in any blockchain system
there are multiple branches forking off
their multiple chains forking off but
the best chain the honest chain is the
chain which is the longest chain because
the longest chain has the most effort
done towards it if I am the just one guy
in the network of ten people I’ll be
able to only build two or three pages
while the entire network will be able to
build 20 or 30 pages together
so the longest chain is always the
honest chain and that then that is what
the blockchain is in very simple terms
it’s just announcing a recording sealing
filing away announcing recording sealing
and filing away that’s why it’s kind of
a big deal because when I say my name is
Moorhead how can I say my name is
Moorhead because somewhere it is written
that this guy’s name who was born on 2nd
of November has the name Moorhead when I
say this is my home how do I know this
is my home because in some database the
8 is written that this land this
coordinates belong to this particular
guy whose name is Morris so all of the
important things in our life are just
the entries in the databases just that
but then why do we need these people to
maintain a data databases can we trust
these strangers and blockchain gave
makes it possible in the
entire humanity this time with
blockchain we can trust the strangers
more than someone familiar so that’s
what a block chains are and thank you [Applause]
what are you even doing what is
blockchain or what is Bitcoin about is
cryptocurrencies so I have started
traveling the country to explain to
people who are not aware of this to the
rest of us what is a blockchain like if
this is such a complicated thing please
let us please explain it to me so this
is what I do to start with what is
blockchain let’s understand the problem
first so imagine my friend is on a
vacation and he calls me and says hey
Maya
I have run out of money I need some
money can you transfer the money to me
and I’ll say okay cool I’ll do that so I
immediately call him a bank manager and
say hey please transfer this money to my
friend and the bank manager goes and
makes this entry in there is in the
register he says from you to Joe from my
account to Joe’s account goes $1,000
that’s it that’s 108 he makes and my
$1000 now belongs to Joe what just
happened my bank manager didn’t take
money and went on to Joe and deposit in
the money he just made an entry so I’ll
go back and say to Joe hey bro I have
sent the money so you can withdraw it
and he’ll he’ll he he’ll have that money
with him so the thing is money is just
an entry in the database money is
nothing a lot of interesting things are
the more important things in our life
are just the entry in the database so
now the Weizmann started asking if money
all these important things are just an
entry in the databases why do we need
banks or someone else to manage to keep
track of this database can we do it
among ourselves if Joe and I have to
transact with it with each other is
there a way that we do not have to go
through the third party because what if
the bank manager misheard me when I was
said I want to transfer $1000
he could have misheard me or he he could
have heard me right but miss wrote while
making the entry or he was just a the
best friend of my friend so what would
happen then he deliberately was
dishonest and tryin try to steal money
from me when you give the power to
someone else he can do all these three
things
so these three things can they be
avoided for centuries now we have been
putting all our eggs in just one basket
and that to someone else’s so this is
the problem that blockchain solves
Chane is nothing but just a way to
maintain the same database that our bank
does but without the banks so here’s how
it works so this is the situation
imagine they’re 10 people these 20 then
these 10 guys say we want to manage this
database among ourselves without the
banks here’s the situation
each of these have an empty file folder
with them enter a blank page and append
with them so what will happen some
they’ll write something on the pin on
these pages
they’ll put away the page in the file
folder they’ll bring bring out a new
page and this process will keep on going
and this file folder will keep we’ll
have a lot of pages in it eventually
making the same database that our bank
has so here’s how how it will work
whenever an important announcement
whenever an important event happens in
the network they an announcement is made
for example if number two wants to send
$10 to number nine she’ll make an
announcement loud and clear hey I am
number two I want to send my $10 to
number nine
everyone will check if number two has
enough money to send to number nine and
if she has everyone make will make an
entry in their own blank pages that they
have something like this from number two
to number nine goes ten dollars very
similar-looking entry that the bank does
but in their own pages so everyone has
their own pages now this process keeps
on going and another transaction another
announcement another entry this probes
this process keeps on going until all of
them run our sons out of the space on
the page now the current page is over
you cannot make more entries on the
current page so you’ll have to file this
page in the file folder bring out a new
page today I repeat the whole process
again and this goes on forever
but here’s the cool crux of blocks in
comes in how do you file the page in the
file folder there has to be two
conditions that has to be met one when
filing the page in the file folder we
have to make sure that every one all of
these ten people had the same contents
on their page because the three things
someone might have misheard someone
might have missed out or someone was
trying to just be plain dishonest so we
have to make sure that everyone has the
same content on their pages and number
two when the page is filed in the file
folder
it cannot be modified ever like ever not
tomorrow not next week not next month
not now
next year not next decade ever so how do
we do it this is the whole magic of
blockchain this is completed by
something we call a hash function
mathematically but to understand for
this session we’ll just call it a magic
machine so this is a mathematical
function but here’s the properties of
this machine it takes some input on the
left-hand side
and it gives some output on the
right-hand side here’s how input and not
looks like if you give a very sensible
looking input on the left-hand side say
the number 4 you will get a very
gibberish looking word say dcba on the
right-hand side it doesn’t make any
sense how 4 goes to dcba
it doesn’t make any sense but every time
you will pass for you will get D CB ei
so if you pass 26 just 22 more number +
4 + when you do but you will get
entitled different looking number which
is like 9 for C 80 this word on the
right hand side can also include numbers
as you can see so you pass some
meaningful data and you will get some
gibberish looking data on the on the in
the output side but it won’t make any
sense how do these three things are
related so we’ll use this pro machine so
the property of this machine is there
two properties one every time you will
pass the same number say the number 426
you will get the same data every time
today tomorrow next decade always this
is the property number one property
number two if I give you the output if I
say I’ll give you 9 4 c8 E and you have
to calculate the input there’s no
reverse magic machine where you can just
pass in 9 for CA T and you will get 26
in the as the output so here’s how we’ll
use this magic machine to seal the
contents of the page and to make sure
that everyone has the same condense on
their pages so this is the puzzle that
we’ll have to solve so the if I will ask
you if I give you this puzzle where you
have to find the input such that on the
right hand side you get a word that
starts with 3 leading zeros how do you
do that
there is no reverse magic machine you
cannot just feed 0 0 0 on there as the
input and get the word and the input
said it and they required input so the
only way to do it is guess you keep
guessing numbers until you reach 2 over
that until until you reach to a number
that when fed to this magic machine
yields a world that that starts with 3
leading zeros here’s how this this
solving this puzzle will help us seal
the contents of the page
so here’s here’s the matter so you start
with 217 then 9,000 something then would
need 18,000 something 11000 something
eventually we’ll find a word that will
some mutually like seven 2533 which
we’ve been passed in this matching
machine will yield zero zero zero see
that’s how you solve this puzzle and
this is this puzzle will help us solve
the problems of the money with the banks
so now if I have to see the content the
content that I want to see suppose there
is a page on which there’s a large one
number written which is two zero eight
nine three just one number and I and I
have to seal this page how do I do it
and I this is the problem that I’ll
solve I’ll say now this time you have
two inputs on one side I’m giving you
the content that I want to see and the
second input is you have to calculate a
random number when we add these two
numbers and feed it to feed in this
matching machine you must get a word
that starts with three leading zeros how
do you do it again you guess so probably
you’ll find a number like 2 1 1 9 1 when
you add in 2 2 0 8 9 3 and fill it to
this magic machine you will get 0 0 0 7
8 so this is how you see in the page so
you have this big number written on the
page so you just put a seal on this page
2 1 1 9 1 if ever I have to check if the
contents of the page are modified the
only thing that I have to do is I say
after 10 years I will just quickly add
these two numbers up fit it in the
matching machine and see if it yields 0
0 0 something and then something if it
does the contents of the page are still
ok are not changed are not modified
Anakin and I can trust the contents of
the page if it doesn’t give 0 0 0 and
then something else I can be sure that
the contents of the page were
compromised if they were modified and I
then they are useless to me and I will
just throw them away so in our case the
first input looks like the contents of
the page which is the list of
transactions so I’ll take the list of
transactions as the first input and I’ll
have to find the one random number which
when appended to this list of
transactions will yield a word that
starts with 0 0 0 so here’s the same
situation when we ran out when everyone
ran out of the space on the page every
once started solving this puzzle every
time my page got over I started finding
this random number he such that when we
append this random random number to the
page and we pass into this magic machine
should give zero zero zero and then
something else
suppose the number five guy was the
person who found the who found the
number and he said hey guys listen I
have found the ceiling number and it is
and it is nine one two five seven four
he announces it to the whole network and
everyone quickly verifies everyone
quickly takes their content of the page
append nine one two five seven four and
feed it tune this feed in this matching
machine to see if it gives zero zero
zero and then something else if it does
it means everyone has the same contents
of the page
everyone has same content because
everyone this number is solving the
problem of everyone now what if someone
doesn’t have someone doesn’t get the
zero zero zero on the right hand side
suppose number eight says listen guys I
see that you go.you all of our getting
the same number but somehow it is not
working out for me so again three things
could have happened either number eight
misheard some transaction when misheard
some announcement or number two he heard
it right but he missed throat while
making the record of the transaction or
number three he was just trying to give
a favor to someone and he was just
trying to be plain dishonest either of
these three cases all of the network
will say – number eight hey listen we
don’t care if you were dishonest or if
it was a mistake we’ll give you benefit
of doubt so you have two ways to do it
either you don’t do anything you just be
in your own world and we’ll stop
acknowledging your presence in the
network and we’ll stop acknowledging
your announcements from here on or you
throw up your page because you also
believe it is something that is that not
the entire network agrees upon you throw
up your page copy the contents from
someone else’s page who’s the pro whose
page gives the three leading zeros and
then then file it in a file folder away
so every time this is the process
announcements are made everyone writes
someone everyone tries to solve the this
cryptographic puzzle everyone tries to
find this random number whoever finds it
he announces it to the entire network
and everyone then sinks everyone says
this is working for me this is not
working for me if this is working for me
well if it is
working for me I’ll copy from someone
else’s to the contents of someone else’s
page and then I will put away the file
folder the entire thing is at the end of
every page it is guaranteed that
everyone will have the same contents on
the page and because the behavior of how
the ceiling number works the contents of
the page can never be changed so slowly
over a period of time this stack of
pages of one after another after another
after another will eventually form this
database that we have with the banks so
this page that I am barb that that I am
again again and again calling the page
is actually called a block and the chain
of blocks eventually eventually performs
the blockchain as we know it and this is
like the general thing that you that
that is in the idle scenario but in real
scenario a blockchain looks something
like this where these green pages and
blue pages are the disagreements in the
network when I say hey this is not
working out for me but I still do not
trust the rest of you so I’ll be on my
own way and I will keep finding my own
numbers so in any blockchain system
there are multiple branches forking off
their multiple chains forking off but
the best chain the honest chain is the
chain which is the longest chain because
the longest chain has the most effort
done towards it if I am the just one guy
in the network of ten people I’ll be
able to only build two or three pages
while the entire network will be able to
build 20 or 30 pages together
so the longest chain is always the
honest chain and that then that is what
the blockchain is in very simple terms
it’s just announcing a recording sealing
filing away announcing recording sealing
and filing away that’s why it’s kind of
a big deal because when I say my name is
Moorhead how can I say my name is
Moorhead because somewhere it is written
that this guy’s name who was born on 2nd
of November has the name Moorhead when I
say this is my home how do I know this
is my home because in some database the
8 is written that this land this
coordinates belong to this particular
guy whose name is Morris so all of the
important things in our life are just
the entries in the databases just that
but then why do we need these people to
maintain a data databases can we trust
these strangers and blockchain gave
makes it possible in the
entire humanity this time with
blockchain we can trust the strangers
more than someone familiar so that’s
what a block chains are and thank you [Applause]
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