Blockchain

Anshul Arya 412CO15

Yash sharma 409CO15
Introduction
● Historically, when it comes to transacting money or anything of value, people and
businesses have relied heavily on intermediaries like banks and governments to ensure
trust and certainty.
● Is there any other way to do so? YES BLOCKCHAINS
Need for a Change : MANY WAYS A BANK TRANSACTION
COULD FAIL
Solution
● To solve these problems, the
concept of cryptocurrency came into
existence.
● Cryptocurrencies are a form of
digital or virtual currency.
● The technology behind digital
currency is known as
BLOCKCHAIN.
● “Blockchain is to Bitcoin, what the
internet is to email. A big electronic
system, on top of which you can
build applications. Currency is just
one.” -Sally Davies, FT Technology
Reporter.
How does BLOCKCHAIN work?
● Blockchain is known as “distributed ledger” technology. It is an incorruptible
digital ledger of economic transactions that can be programmed to record not just
financial transactions but virtually everything of value.
● Blockchain is a time-stamped series of immutable record of data, where instead of
being held all in one place, the information is atomized and spread over thousands of
nodes across a network, all locked together with clever cryptography.
● Example:
● The transaction detail is permanently inscribed in this block.
● These blocks hold the transaction details as well as the number of bitcoins each person has.
● The blocks are linked to each other as each one of them take reference from the previous
block.

LEDGER
● This ledger shared among all the friends which access a Public Distributed Ledger forms the basis of
blockchain technology.

PUBLIC DISTRIBUTION LEDGER

BENEFITS

● A hacker will not be able to alter the data in the Blockchain because:
1. Each user has a copy of the ledger.
2. The data within the blocks are encrypted by complex algorithms.

BLOCKCHAIN can be defined as

→ collection of records

→ linked with each other

→ strongly resistant to alteration

→ protected using cryptography

Contents of a block
How blocks are connected
Proof of work and mining

Proof of work is a requirement to define an expensive computer calculation, also called

mining, that needs to be performed in order to create a new group of blocks on a
distributed ledger.

Mining serves as two purposes:

1. To verify the legitimacy of a transaction;

2. To create new digital currencies by rewarding miners for performing the previous
task.
When you want to set a transaction this is what happens behind the scenes:

● Transactions are bundled together into what we call a block;

● Miners verify that transactions within each block are legitimate;
● To do so, miners should solve a mathematical puzzle known as
proof-of-work problem. Miners spend electricity in the form of
computational power by constantly changing the block composition
and hashing it until they find an eligible signature
● A reward is given to the first miner who solves each blocks problem;
● Verified transactions are stored in the public blockchain
More areas where blockchains can be implemented
1. Smart contracts: Smart contracts help you exchange money, property, shares,
or anything of value in a transparent, conflict-free way while avoiding the
services of a middleman, also define the rules and penalties around an
agreement and automatically enforce those obligations.
2. Sharing economy: By enabling peer-to-peer payments, the blockchain opens
the door to direct interaction between parties.
3. Supply chain : From conducting payment and audits to tracking inventory
and assets, blockchain technology will enable greater supply chain efficiency.
4. File storage: Decentralizing file storage on the internet brings clear benefits.
Distributing data throughout the network protects files from getting hacked
or lost.
5. Crowdfunding etc
References

● https://blockgeeks.com/guides/what-is-blockchain-technology/
● https://blockgeeks.com/guides/proof-of-work-vs-proof-of-stake/
● https://www.simplilearn.com/blockchain-certification-training?utm_campaign=What-is-
Blockchain-yubzJw0uiE4&utm_medium=Tutorials&utm_source=youtube
Thanks!