Blockchain – Distributed and decentralized system .

Each node can communicate to and from it.

Nodes have their own memory and processor..
Nodes can be honest,faulty,malicious.

Unexpected behavior or malicious behavior of the node is called

byzantine.

Two things can fundamentally happen with nodes ..

Either they crash a genuine crash

Malicious / mischievous or arbitrary behavior- Difficult to detect
the intentions.

What is byzantine general problem ?

Imaginary Experiment – Where generals of byzantine army need to

decide wether to attack a city or retreat .. The only method is a
mesanger . There could be traitor general. The attack needs to
happen at the same time.

From PBFT – ( Practical byzantine fault tolerance -> PoW ( Proof

of work) comes .

https://cryptoinsider.com/byzantine-fault-tolerance-blockchain-
systems/

Important things to understand :

Fault tolerance is achieved using Replication. – Method of

replication is important.

Consistency is achieved using consensus algorithm- Choice of

algorithm is very important.

In other words what blockchain needs is

Cryptography- hashing
Consensus mechanism
Replication Mode
Peer to Peer Network.

Network Architecture of BLOCKCHAIN

Offering Architecture of BLOCKCHAIN

Business Architecture of BLOCKCHAIN
Reference Architecture of BLOCKCHAIN ( Domain Specific)

Depends on the industry and use-case .. This may be industry

specific
For Eg oil and gas , Pharma , Supply chain , Container Shipping.

Internet Vs BLOCKCHAINs :

Internet is “Thin” protocol (tcp/ip, http) and “Thick”

Application.
Massive monetization happened at the Application level bcos
value is the applications – web or otherwise .

It’s reverse for BLOCKCHAIN . Monetization will happen or

happening at the Network/Protocol level.
To understand BLOCKHAIN deeply . there are 2 things –
“Network effects” and “Network ownership effects”

Network effects are email. Skype, Whatsapp..-

Participation does not require ownership in “network effects” ,

Network ownership effects are “Crypto-tokens”. Tokens are

assigned and therefor ownership in “ network ownership” effects..
therefore the value of the token goes up which means the
monetization happens at the network level.