BlockChain

It is a shared immutable ledger that facilitates the process of transactions and tracking sets
across a business network.

Purpose

1. Blockchain's Is it share info amongst all parties that access via an application

Application

1. Voting
2. Healthcare
3. Finance

Types of BlockChain

a)Public Blockchain

b)Private Blockchain

c)Consortium Blockchain

d)Hybrid Blockchain

Public Blockchain:
Concept: Open to anyone. Anyone can join, participate, and access the data.

Examples: Bitcoin, Ethereum.

Advantages: Transparency and security due to a large number of participants.

Disadvantages: Slower and requires more computational power.

Private Blockchain:

Concept: Restricted access. Only specific users can join and participate.

Examples: Internal networks for organizations.

Advantages: More control, faster transactions, and privacy.

Disadvantages: Limited transparency and security rely on fewer participants.

Consortium Blockchain:
Concept: Semi-private. Controlled by a group of organizations rather than a single entity.

Examples: Supply chain networks, banking consortia.

Advantages: Shared control, better security than private blockchains, and faster than public
blockchains.

Disadvantages: Less transparent than public blockchains and requires collaboration among
organizations.

Hybrid Blockchain:
Concept: Combines features of both public and private blockchains.

Examples: Supply chain transparency for customers (public) while protecting sensitive data
(private).

Advantages: Flexibility, control, and balance between transparency and privacy.

Disadvantages: Complexity in design and implementation.

DIFFERENCE BETWEEN BLOCKCHAIN AND HYBRID BLOCKCHAIN

Consortium Blockchain:

1.​ Control: Managed by a group of organizations rather than a single entity.

2.​ Access: Only authorized participants can join and participate.
3.​ Use Cases: Often used in industries where multiple organizations need to collaborate,
such as banking, supply chain, and healthcare.
4.​ Governance: Governed by the consortium members who set rules and policies.

Hybrid Blockchain:

1.​ Control: Combines elements of both public and private blockchains.

2.​ Access: Some parts are open to the public, while others are restricted to authorized
participants.
3.​ Use Cases: Suitable for scenarios where transparency is needed for certain data while
keeping other data private, such as government systems, supply chains, and enterprise
solutions.
4.​ Governance: Offers flexibility with both public and private governance depending on the
section of the blockchain.

Properties of blockchain is -
1. Decentralized - enhances trust , transparency and credibility .
2. Security - With help of Hash Codes
3. Immutability because of consensus algo

{
​ Sure, let's break these down into simple terms:

### Proof of Work (PoW):

- Concept: Miners (computers) compete to solve complex puzzles.
- Process: The first to solve the puzzle gets to add a new block to the blockchain.
- Security: It’s very secure but requires a lot of energy and computational power.
- Example: Bitcoin uses PoW.

### Proof of Stake (PoS):

- Concept: Validators (owners of the cryptocurrency) are chosen to add new blocks based on
their stake (the amount they own).
- Process: The more coins you hold, the higher your chances of being selected.
- Security: It’s more energy-efficient than PoW but can be less secure if not well-implemented.
- Example: Ethereum is transitioning to PoS.
{

Imagine you have a big jar of marbles, and everyone in a group wants to have a turn at adding a
new marble to the jar. Instead of everyone trying to grab the jar at once (like in Proof of Work),
they take turns based on how many marbles they already have. The more marbles you have,
the more likely you are to get a turn.

or

Imagine a group of friends who take turns guarding a treasure chest. They decide who gets to
guard it based on how much treasure each friend has already put into the chest. The more
treasure you have inside, the more likely you are to be chosen as the guard.

In Proof of Stake (PoS):

●​ Stake: The marbles represent the amount of cryptocurrency you own and are willing to
"lock up" or "stake" as collateral.
●​ Validators: People with more marbles (higher stake) have a higher chance of being
chosen to add the next marble (create a new block).
●​ Rewards: If you get a turn, you get rewarded with more marbles (cryptocurrency), but if
you cheat, you might lose some of your staked marbles.

}
### Hybrid Consensus Mechanisms:
- Concept: Combines elements of both PoW and PoS.
- Process: Utilizes the security of PoW and the efficiency of PoS.
- Security: Aims to balance energy consumption and security.
- Example: Decred uses a hybrid model.

If you need more details on any of these, feel free to ask!

}

4. Ledger based - It stores every previous operations on the blockchain / ledger [like log files]

Bitcoin

​ A type of digital currency in which a record of transactions is maintained , and new unit
of currency are generated ​ by the computational solutions of mathematical problems and
which operates independently of central bank

Advantages:

1.​ Decentralization: No central authority controls Bitcoin, reducing the risk of government
interference.
2.​ Security: Strong cryptographic techniques ensure secure transactions.
3.​ Transparency: Transactions are recorded on a public ledger (blockchain) accessible to
anyone.
4.​ Lower Fees: Typically lower transaction fees compared to traditional banking systems.
5.​ Accessibility: Enables financial services for people without access to traditional
banking.

Disadvantages:

1.​ Volatility: Bitcoin prices can be highly volatile, leading to significant financial risk.
2.​ Scalability: Limited transaction processing speed, leading to potential delays.
3.​ Energy Consumption: Mining requires significant computational power, leading to high
energy consumption.
4.​ Regulation Issues: Unclear regulatory status in many countries, creating uncertainty.
5.​ Irreversibility: Transactions cannot be reversed once confirmed, which can be
problematic in cases of fraud or mistakes.
Type of blockchain

Public Blockchain

​ Public blockchains are generally designed to be immutable, meaning that once data is
recorded, it cannot be altered ​ or deleted. However, the concept of mutability in
blockchains has been discussed, particularly in the context of ​ addressing issues like the
right to be forgotten, removing improper content, or correcting errors.

Public Blockchain Ledger

​ A public accessible ledger in blockchain is a decentralized digital database that records

transactions and data in a ​ transparent and secure manner.

​ *It is accessible to anyone and owned by no one*,

​ *allowing for open and unrestricted read access to any node in the blockchain network.

​ *This ledger is replicated across all nodes worldwide, making it difficult to tamper with or
hack.

​ Each transaction must be verified by all nodes, which can be time-consuming and
require high processing capacity due ​ to the complete decentralization of the system.

​ *However, this decentralized verification process also makes public ledgers highly
secure, as once transactions are ​ verified and recorded in the blocks, they cannot be
changed or modified.

Distributed Consensus

It is a protocol , that allows a network of nodes to agree on a single data set Even when there
are conflicts.
This Mechanism is essential for processing the transactions and maintaining the security of
blockchain.

How does it works?

1. A consensus mechanism ensures that all nodes in a blockchain network are synchronized
and agree on transactions .
2. It acts as a verification standard for each transaction ensuring that only legitimate
transactions are added to the blockchain.
3. It replaces the need for human verifiers and auditors which can be slower and accurate or
trustworthy.

// SPDX-License-Identifier: MIT
pragma solidity ^0.8.16;

contract Append
{
string public name = "Adas";

function Concate (string memory _a, string memory _b) public pure returns ( string memory
result )

{
return string(abi.encodePacked(_a,'',_b));
}
}

COMPILE AND DEPLOY

1. Stuart 2.Little
result : StuartLittle

1.​ Hash Pointer

A hash pointer is like a regular pointer (a reference to where some data is stored), but it also
includes a hash of the data. This means that a hash pointer not only tells you where to find the
data but also helps verify that the data hasn't been tampered with.

How it works:

1.​ Pointer: It tells you where the data is located.

2.​ Hash: It provides a fingerprint of the data, ensuring its integrity.

In the context of blockchain, hash pointers are used to link blocks together securely, ensuring
that any change in a block will invalidate the subsequent blocks, maintaining the blockchain's
security and integrity.
2. Smart Contract:

A smart contract is a self-executing contract with the terms of the agreement directly written into
code. Here's a simple explanation:

How it Works:

●​ Code: The contract's terms are written in code and exist on the blockchain.
●​ Automated: It automatically executes and enforces the terms when conditions are met.
●​ Trustless: No need for intermediaries (like a lawyer or notary), as the contract itself
ensures compliance.
●​ Transparent: Since it's on the blockchain, all parties can see the contract's terms and
execution.

Benefits:

●​ Efficiency: Automates processes, reducing time and costs.

●​ Security: Data is encrypted and immutable, making it highly secure.
●​ Accuracy: Eliminates human error in contract execution.

Use Cases:

●​ Finance: Automating payments, loans, and insurance claims.

●​ Supply Chain: Tracking goods and verifying transactions.
●​ Legal: Enforcing terms in agreements like wills and property transfers.

Smart contracts are a key feature of blockchain technology, offering new ways to
automate and secure various processes.

3. Merkle Trees:

●​ Concept: A tree-like structure where each leaf node is a hash of a data block, and each
non-leaf node is a hash of its child nodes.
 ●​ Purpose: Ensures data integrity and efficient verification.
●​ How it Works:
○​ Leaf Nodes: Contain the hash of individual data blocks.
○​ Non-Leaf Nodes: Contain the hash of their child nodes.
○​ Merkle Root: The topmost node, representing the entire dataset.

Benefits:

●​ Efficiency: Quick verification of data integrity.

●​ Security: Any change in data will alter the hash, making tampering evident.
●​ Scalability: Handles large datasets efficiently.

Merkle Trees are fundamental in blockchain technology, ensuring that data remains
secure and verifiable.

Cryptography
Cryptography plays a crucial role in blockchain technology, ensuring security, integrity, and
privacy of data. Here's a breakdown:

Types of Cryptography in Blockchain:

1.​ Hash Functions:

○​ Purpose: Creates a unique, fixed-size hash from variable-sized data.
○​ Examples: SHA-256, used in Bitcoin.
○​ How it Works: Takes an input and produces a fixed-length hash. Any change in
the input changes the hash.
2.​ Public Key Cryptography:
○​ Purpose: Allows secure transactions and user identification.
○​ Examples: RSA, ECDSA (Elliptic Curve Digital Signature Algorithm).
○​ How it Works: Uses a pair of keys (public and private). The public key encrypts
data, and the private key decrypts it.
3.​ Digital Signatures:
○​ Purpose: Verifies the authenticity and integrity of a message or transaction.
○​ Examples: ECDSA.
○​ How it Works: A user signs a transaction with their private key, and others can
verify it using the user's public key.

(RSA: Rivest–Shamir–Adleman , ECDSA: Elliptic Curve Digital Signature Algorithm)

Components of Cryptographic Systems in Blockchain:

1.​ Hash Functions:

○​ Input Data: The original data to be hashed.
○​ Hash Value: The output hash, a fixed-size string unique to the input data.
2.​ Public and Private Keys:
○​ Public Key: Shared openly, used to encrypt data or verify signatures.
○​ Private Key: Kept secret, used to decrypt data or create signatures.
3.​ Digital Signatures:
○​ Message: The original transaction or data.
○​ Signature: Generated using the private key, attached to the message.
○​ Verification: Checking the signature using the public key.

How It Works:

1.​ Transaction Creation:

 ○​ A user creates a transaction and signs it with their private key, generating a
digital signature.
○​ The transaction is broadcast to the network.
2.​ Transaction Verification:
○​ Nodes in the network verify the transaction by checking the digital signature
using the user's public key.
○​ If the signature is valid, the transaction is considered authentic.
3.​ Block Formation:
○​ Verified transactions are grouped into a block.
○​ The block header includes a hash of the previous block, ensuring the chain's
integrity.
4.​ Consensus Mechanism:
○​ Miners or validators agree on the validity of the block (using PoW, PoS, etc.).
○​ Once consensus is reached, the block is added to the blockchain.

Cryptography ensures that blockchain remains secure, transparent, and tamper-proof.

Permissioned blockchain:
permissioned blockchain is a type of blockchain where access to the network is restricted to
authorized participants. Here's a simple explanation:

Key Features:

●​ Controlled Access: Only users with permission can join and participate.
●​ Security: Enhanced security through access control and identity verification.
●​ Efficiency: Faster transaction processing and scalability.
How It Works:

1.​ Access Control: Participants need permission or credentials to join the network.
2.​ Validation: A group of trusted entities maintains and validates transactions.
3.​ Governance: Rules and governance are managed by a consortium of participants.

Benefits:

●​ Privacy: Enhanced privacy and confidentiality.

●​ Speed: Faster transaction processing.
●​ Control: Greater control over the network.

Example:

●​ Ripple: A cryptocurrency that supports permission-based roles for network participants.

Permissioned blockchains are often used by enterprises and organizations that require security,
privacy, and control over their blockchain activities