Blockchain A blockchain is a database or a ledger that stores information in a data structure called blocks. It is based on {iiSMiDINCU Ned seneeNHOIOEy which can be used between parties that don't trust each other with data. It is because when you add anything onto the blockchain, it requires verification from all other users available on the network.Whatis distributed ledger technology? ‘Distt NERLEAREEHAGIOEPIOLT) refers specifically to the technological infvastucture and protocols that allow the simultaneous access, validation and updating of records that characterizes distributed ledgers. It works on a computer network spread over multiple entities or locations. DLT uses cryptography to securely store data, cryptographic signatures and keys to allow access only t0 authorized users.The technology also creates an immutable database, which means information, once stored, cannot be deleted and any updates are permanently recorded for posterity Distributed ledger technology » & a, yf - B &i ®@ & f——2& Design Primitives: Protocols, Security, Consensus,Permissions, Privacy ‘The blockchain has Design Primitives such as Protocols, Security, Consensus, Permissions, Privacy. The most widely used blockchain protocolsKey primitive - Merkle tree (1979) a + Meee tre summarizing all transactions in a biock to produce a dal fingerprint ofthe entire set of transactions, thereby enabling 2 user to verity whether a transaction is included ina block -risimage expt conceal te, wichiraey piv wd sca blo, Key Primitive Merle Tre (1979) “Aner we, io known sa hash, da stature sed in computer cence appetons is Met wee ey nocurcnie Wena est nd sci verison of re a sts 1, Tramentions(T9: ee ofthe Mee eit tsi nth exam Bese ae iad Fost, De 2gand To 2. Hashing Transactions: sa tno isha pradcesuiqe ash abe Foren oa) Dinka Diana) Kew) 2. Combining Hates: ne acre athe gee orm he next ee of Henge) 4, Merkle Ro: Ale Racin i singh, kw ashe Mee, bind ibecne te Mane oot 6) Se ee Purpose ond Bone Dig Finger: emul temas in bck pie + Vee: cue lows west vest wher easton inlining ar ery ck Tar fice nc of onde 2 SOD em hig ny tina sah he Mal wl iting Mee wes ccna ini taney wine fn an Byutiing Mr oe ee ancl ath operon an scat xkhin ‘nog paDigital Signature in Blockehain blockehain. Digital signatures can be considered as the digital counterparts of stamped seals or handwritten signatures, However, they are capable of Digital signatures The keys include a private key and a public key. The importance of a digital signature in blockchain largely revolves around two primary objectives such as, 1. Digital signatures ensure that the message received by a recipient has come from the sender claiming to have sent the information. The property is known as non-repudiation. 2, Digital signatures also provide assurance to recipients about the fact that messages have not been through any modifications in transit. As a result, infrastructures can find better safeguards against malicious intermediaries or unintentional modifications.Hash chain to Block chain A hash chain is similar to a wocded as they both utilize a cryptographic hash function for creating a link between two nodes. Hower, a blockchain (as used by Bitcoin and related systems) is generally intended to support distributed consensus around a public ledger (data), and incorporates a set of rules for encapsulation of data and associated data permissions.Basic consensus mechanisms. ‘A consensus mechanism is a system that cryptocurrencies like bitcoin and ethereum use to validate the authenticity of transactions and maintain the security of the underlying blockchain. © There are different types of consensus mechanisms with various benefits and drawbacks. © Acconsensus mechanism enables trust and security in a blockchain network.‘Types of Consensus Mechanisms While proof-of-work powers the largest cryptocurrency —bitcoin— it’s not the only way to run a eryptocurrency network. The most important of the types of consensus mechanisms used today fall into a few main types: © Proof-of-Work: With proof-of-work, miners compete against each other to validate the next transaction block and eam a reward. This is a highly energy-intensive conscnsus mechanism but brings a high degree of trust. © Proof-of-Stake: Proof-of-stake (PoS) is a consensus mechanism wherein those with the largest holding of the network’s currency validate new blocks. This enables faster and lower-cost transactions. It rewards those with the biggest stake in the network for continued participation. © Proof-of-Authority: Proof-of-authority is not as common but has a unique form. It is used mainly by private companies or organizations that use blocks created by vetted sources who have special permissions to access the network. Assurances are based on reputation and authority rather than public consensus as with other mechanisms. ‘© Delegated Proof-of-Stake: Delegated proof-of-stake is a variation of PoS in which users who stake their coins can vote on the number of delegates to create new blocks. ‘e Proof-of-Capacity: Proof-of-capacity currencies rely on a computer's available hard drive storage space for a decentralized block verification and generation process. ‘e Proof-of-Aetivity: The proof-of-activity consensus mechanism is a hybrid of proof-of- stake and proof-of-work in which the miner seeks to utilize the best of both systems. © Proof-of-Elapsed Time: Proof-of-clapsed time uses a random timer that operates independently at every node to randomly assign the block verification to a miner. o prootof-Bum: With proof-of-bum, consensus is driven by miners periodically buming coins, a process of permanently deleting or eliminating that specific coin from circulation This validates new transactions while preventing inflation.