Who wants to be a millionaire? A class in creating … · Who wants to be a millionaire? A class in...

Who wants to be a millionaire? A class in creating your own cryptocurrency

Tom Davies, Sr. Manager, DevNet Sandbox

Vallard Benincosa, Software Engineer

DEVNET-3626

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Public

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© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Public 4

Disclaimer!

This isn’t just an introductory session.

We’re going to rattle through the fundamentals pretty quickly…

…So we can get on to the code. We love us some code.

DEVNET-3626

• Blockchain - Technical Fundamentals

• Becoming a millionaire – Creating Your Own Currency

• Blockchain@Cisco

Agenda

Technical Fundamentals

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Public 7

What is a blockchain?

Everyone has a full copy | No one entity controls it or the transactions | Cryptographically secure - ‘trustless’

A transactional database!

Transactions –> Blocks -> Chain

DEVNET-3626


Alice

Bitcoin Balance:

3 BTC ~ $30,0001AHw1E7L2tNxj29wtEATPEMc1Mj77F22Yt

Coffee Shop

Bitcoin Address: 1KfDuF4g5k8oTbvamp9BYzPLKrYbnpyT3m

Alice has a public and

private key

A transaction to send 0.00025 bitcoins

is signed with Alice’s private key and

the coffee shop’s public key Coffee shop advertises

public key

DEVNET-3626 8© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Public


Transaction is broadcast to bockchain network

Alice

Bitcoin Address: 1AHw1E7L2tNxj29wtEATPEMc1Mj77F22Yt

Coffee Shop

Bitcoin Address: 1KfDuF4g5k8oTbvamp9BYzPLKrYbnpyT3m

0.00051 BTC

DEVNET-3626 9


1AHw1E7L2tNxj29wtEATPEMc1Mj77F22Yt TPEMc1Mj77F22YtwtEA HudeW7OoXane3zeeaeyoh3Laayei6Bi

ephahS9GeJohyej1oyeec1He5seam3Quitub1EizoMo7eebieiePohcu7mei0ohGhahsee9EePohb1bohcoa2bi2GIez

ei3sozaiThoo9tod4dahSIazahf3ixei3MaibRoutei9uchahT0juIoch2GahPetie0ahgahiex2VAiph7yohca0Ain6

uquoosh2UUu5Xah0oOhp0ahNaDie8li2vXo2taiquiekeeMa2ohK3eewicoGhe9ieooy5vo7JUyei9airAo8mufohIeg

aib3aeefe4ieXdiuF7EiLUijeiPe9eegh4ohPIog1daihAhf1lu0zgieD2zoowobaeTh4ieH9iecaiuch4Eedeavei3e

NSeihae3vShaefae9ai9uzooNIej7ohyeque9TaifseeFie3nau2EiroueeV0kiChahc7Dahszu4fee0AeiXee0TuAWa

iv5siiqu0Queieasee4XooowoSh6OohngaeH5eexahZ7ijoo3io3Hquaiqu4EfiWoo7neaseuCh1AARoh0weelavaes3

ExeePei9nEeyahp7Jve4yeBaeEeCaF2aeaXiF9feunooN0oshvaK1Cahnthohg1BoaiF4ahG6EiXi6CeinahX6oofxe6

Ti0ovxah5QuaeUo5Thei6Bea8ahshaiQuiG6Areiw5jiYPhahxoo7aiGh0chiDie0iQuaIuk1eiphKiiphe4eeeCa3ka

ereh2Jai6Xuvai1huohz6EeciahDe8oa7shohCor6Pon1roo7Ietho6AeChoa8ou6Chais6ieCe0VuoyeEer6nie3Noo

7seePGeuph2ivAis4xeivjooM5wooteeN3xooov4thaeJOodah3uuob4In1oceiL9QuebohM7Jah1deJoo1WoDun3se8

oKae7eeXahaDu9eiLzuoFi8ohiew8EsopohN3ahquphe1Xaetsu9AthieoubeeS8UAwu0zeejAhvie1lovahNgai8xae

7FieGthu4aTh7Phahkae9sifu9Niprae1Coofmohh1eeSzuNgoh3yEeGh1aj4Choh2iLuEighae2aEij3kohhEezou6E

ieisee3WooD8iuH3xphe9PaecUp4duvieNeera0kout1EipiaJoh3iet7ohd9Bophgoop5EewEechah6lWohpoh5aooT

Blocks are simply a ledger of transactions

0.00051 BTC

A block is a list of transactions that are collected by the peer 2 peer network

Alice’s Account

Coffee Shop

Account

DEVNET-3626 10


How do you stop abuse & double spend?

• Race to create the next block in a blockchain

• New bitcoin block is created every 10 minutes

Miners!

DEVNET-3626 11


Proof of Work

• A Hash is a one way function

• Nearly impossible to guess

• Easy to verify

• Header Hash must be less than a specified target value (e.g.: begins with x amount of 0’s.)

• Nonce is only part that can change to get value.

• Must iterate to find value

1AHw1E7L2tNxj29wtEATPEMc1Mj77F22Yt TPEMc1Mj77F22YtwtEA HudeW7OoXane3zeeaeyoh3Laayei6Bi

ephahS9GeJohyej1oyeec1He5seam3Quitub1EizoMo7eebieiePohcu7mei0ohGhahsee9EePohb1bohcoa2b

i2GIezei3sozaiThoo9tod4dahSIazahf3ixei3MaibRoutei9uchahT0juIoch2GahPetie0ahgahiex2VAip

h7yohca0Ain6uquoosh2UUu5Xah0oOhp0ahNaDie8li2vXo2taiquiekeeMa2ohK3eewicoGhe9ieooy5vo7JU

yei9airAo8mufohIegaib3aeefe4ieXdiuF7EiLUijeiPe9eegh4ohPIog1daihAhf1lu0zgieD2zoowobaeTh

4ieH9iecaiuch4Eedeavei3eNSeihae3vShaefae9ai9uzooNIej7ohyeque9TaifseeFie3nau2EiroueeV0k

iChahc7Dahszu4fee0AeiXee0TuAWaiv5siiqu0Queieasee4XooowoSh6OohngaeH5eexahZ7ijoo3io3Hqua

iqu4EfiWoo7neaseuCh1AARoh0weelavaes3ExeePei9nEeyahp7Jve4yeBaeEeCaF2aeaXiF9feunooN0oshv

aK1Cahnthohg1BoaiF4ahG6EiXi6CeinahX6oofxe6Ti0ovxah5QuaeUo5Thei6Bea8ahshaiQuiG6Areiw5ji

YPhahxoo7aiGh0chiDie0iQuaIuk1eiphKiiphe4eeeCa3kaereh2Jai6Xuvai1huohz6EeciahDe8oa7shohC

or6Pon1roo7Ietho6AeChoa8ou6Chais6ieCe0VuoyeEer6nie3Noo7seePGeuph2ivAis4xeivjooM5wootee

N3xooov4thaeJOodah3uuob4In1oceiL9QuebohM7Jah1deJoo1WoDun3se8oKae7eeXahaDu9eiLzuoFi8ohi

ew8EsopohN3ahquphe1Xaetsu9AthieoubeeS8UAwu0zeejAhvie1lovahNgai8xae7FieGthu4aTh7Phahkae

9sifu9Niprae1Coofmohh1eeSzuNgoh3yEeGh1aj4Choh2iLuEighae2aEij3kohhEezou6Eieisee3WooD8iu

H3xphe9PaecUp4duvieNeera0kout1EipiaJoh3iet7ohd9Bophgoop5EewEechah6lWohpoh5aooT

Block Header ( 80 bytes )

Block Body

• 32 bytes of previous block hash

• 32 bytes of Merkle root hash

• Timestamp

• Nonce

DEVNET-3626 12


Block is broadcast to Bitcoin P2P network

DEVNET-3626 13


BlockchainBlockchain means that each block header refers back to the previous block.

• Consensus comes by the longest block chain

• Only one winner – encourages hashing pools

• Works as long as 51% of network arrives to consensus

• Encourages compute resources to be honest

• In Bitcoin only 21 million coins will ever be created. 75% of all coins that will ever be created have

already been mined. Last coin estimated in 2140.

DEVNET-3626 14


• Bitcoin allows scripting but not Turing complete

• Ethereum adds ability to run code in blockchain

• Smart contracts create a state machine

• Large ecosystem of tools and projects

Ethereum

There’s more than just the bitcoin blockchain!

DEVNET-3626 15

© 2018 Cisco and/or its affiliates. All rights reserved. Cisco Public 16DEVNET-3626

How do blockchains work?Smart Contracts

Triggers


• Stored Procedures

• Can cause massive problems! DOA lost 3.6 million ether!

• Tooling is rapidly developing.

• Many platforms to run on

• How expensive is it to run on Ethereum?

• Anyone can make their own currency!

Smart Contracts

DEVNET-3626 17


Distributed Applications (DApps)Architecture

Application UI

Smart Contracts

(Application Logic)

Database

(Decentralised Compute / Storage)


A Note On Blockchain Types

Public Private Community

PermissionedNon-Permissioned

Becoming a Crypto Millionaire


Lots of

Crypto

currencies!

https://coinmarketcap.com/DEVNET-3626 22

https://coinmarketcap.com/


Let’s create our own token

The DevNet ICO!

(Initial Coin Offering)

DEVNET-3626 23


Let’s create our own token

ICO Details

Val Tom

20 Million

5 Million 5 Million

You Guys

10 Million

1 ETH = 100 DevCoin

Does this sound like a good ICO? YES…if you’re Val or Tom.

ERC20 Standard – Our Symbol: VXT *

https://theethereum.wiki/w/index.php/ERC20_Token_Standard*DEVNET-3626 24

https://theethereum.wiki/w/index.php/ERC20_Token_Standard


Tools to use to become millionairesEthereum Ecosystem

Deploying Contracts /

Buying & Sending Ether

IDEs for writing our Smart Contracts

Blockchains for testing and finally releasing our

contracts

Writing

Deploying

Platform

Contracts

DEVNET-3626 25


Toolchains: IDE, Deployment Tool, Test Network

Test Network

(Ethereum Based)

contract

Contract

Deployment

Inspect

Funds / Deployment

Contract ID

Solidity IDE Test Network

(Ethereum Based)

contract

Contract

Deployment

Inspect

Funds / Deployment

Contract ID

Solidity IDE

Command

Line

UI Based

DEVNET-3626 26


Smart Contract Language - Solidity

http://solidity.readthedocs.io/en/develop/contracts.html

The Ethereum Contract Programming Language

• Used to write Smart Contracts – Contract Orientated

• Used on other blockchains as well as Ethereum

Fun Fact: Contracts can create new contracts!

DEVNET-3626 27

http://solidity.readthedocs.io/en/develop/contracts.html

Show me a Solidity Contract Val…


Toolchain: IDE, Deployment Tool, Test Network


(Ethereum Based)

contract

Contract

Deployment

Inspect

Funds / Deployment

Contract ID

DEVNET-3626 29


Why use a blockchain test network?

Ether, used to pay for executing code, is expensive: €878 -> 1ETH

Instead:

• Chose a test network to experiment• Kovan: https://github.com/kovan-testnet/proposal

• Rinkeby: https://gist.github.com/cryptogoth/10a98e8078cfd69f7ca892ddbdcf26bc

• Create Account / Address• Use https://www.MyEtherWallet.com or Metamask Browser plugin

• Select correct network

• Visit Faucet addresses to get Ether in your account• Kovan: https://gitter.im/kovan-testnet/faucet

• Rinkeby: https://faucet.rinkeby.io/

• Get funded with test ether!

DEVNET-3626 32

https://github.com/kovan-testnet/proposal

https://gist.github.com/cryptogoth/10a98e8078cfd69f7ca892ddbdcf26bc

https://gitter.im/kovan-testnet/faucet

https://faucet.rinkeby.io/

Show me a Deploying a Contract Val…




(Ethereum Based)

contract

Contract

Deployment

Inspect

Funds / Deployment

Contract ID

DEVNET-3626 34


Contract Observability

DEVNET-3626 35

Show me how to inspect the blockchain Val…




(Ethereum Based)

contract

Contract

Deployment

Inspect

Funds / Deployment

Contract ID

DevNet Coin is Live!

www.DevNetCoin.comDEVNET-3626 37

Show US ALL how to buy some, Val!


Get Tokens - Example

• Create account with Metamask / MyEtherWallet on KOVAN network

• Copy address into https://gitter.im/kovan-testnet/faucet

Don’t be greedy

DEVNET-3626 39

https://gitter.im/kovan-testnet/faucet


Buy DevNetCoin!

DevNetCoin Contract Address ------->

DEVNET-3626 40

Try it out! Buy some DevNet Coin!

Okay, okay. That was cool.

But how do you really create value?


Coins / Tokens – Creating ‘Value’

Exchanges Platform Utility Coin ICO

https://www.icoalert.com/

DEVNET-3626 43

Blockchain@Cisco


Cisco@Blockchain

DEVNET-3626 45


DevNet Sandboxdeveloper.cisco.com/sandbox

DEVNET-3626 47

• Blockchain - Technical Fundamentals

• Becoming a millionaire – Creating Your Own Currency

• Blockchain@Cisco

What did we cover?


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1. Find this session in the Cisco Live Mobile App

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• Related sessions

DEVNET-3626 51

Thank you

Who wants to be a millionaire? A class in creating … · Who wants to be a millionaire? A class in...

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