Understanding Block

chain technology
A presentation by:
Captain Bikash Rai

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What is a Blockchain? - A distributed database
It is a hash pointer linked list of blocks which can only be appended at the end of the chain

• Picture a spreadsheet that is duplicated thousands of times across a network of computers

• Then imagine that this network is designed to regularly update this spreadsheet and you have a basic
understanding of the blockchain.

• Information held on a blockchain exists as a shared — and continually reconciled — database. This is a way of
using the network that has obvious benefits.

• The blockchain database isn’t stored in any single location, meaning the records it keeps are truly public and easily
verifiable.

• No centralized version of this information exists for a hacker to corrupt. Hosted by millions of computers
simultaneously, its data is accessible to anyone on the internet.
SOME EXPERT VERBATIMS

“As revolutionary as it sounds, Blockchain truly is a mechanism to bring

“The blockchain is an incorruptible digital
everyone to the highest degree of accountability. No more missed
ledger of economic transactions that can be transactions, human or machine errors, or even an exchange that was not
programmed to record not just financial
done with the consent of the parties involved. Above anything else, the
transactions but virtually everything of
most critical area where Blockchain helps is to guarantee the validity of a
value.”
transaction by recording it not only on a main register but a connected
Don & Alex Tapscott, authors Blockchain distributed system of registers, all of which are connected through a
Revolution (2016 secure validation mechanism.”

Ian Khan, TEDx Speaker | Author | Technology Futurist

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Advantages of a Blockchain
Blockchain Durability and robustness Transparent and incorruptible

• Blockchain technology is like the internet in that it has a • The blockchain network lives in a state of consensus,
built-in robustness one that automatically checks in with itself every ten
minutes
• By storing blocks of information that are identical across its
network, the blockchain cannot: • A kind of self-auditing ecosystem of a digital value, the
• Be controlled by any single entity. network reconciles every transaction that happens in
• Has no single point of failure. ten-minute intervals

• Bitcoin was invented in 2008. Since that time, the Bitcoin • Each group of these transactions is referred to as a
blockchain has operated without significant disruption. (To “block”
date, any of problems associated with Bitcoin have been
due to hacking or mismanagement. In other words, these • Two important properties result from this:
problems come from bad intention and human error, not • Transparency data is embedded within the
flaws in the underlying concepts.) network as a whole, by definition it is public.
• It cannot be corrupted altering any unit of
• The internet itself has proven to be durable for almost 30 information on the blockchain would mean using a
years huge amount of computing power to override the
entire network.
• It’s a track record that bodes well for blockchain
technology as it continues to be developed
 HOW DOES IT WORK

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A network of computing “nodes” make up the blockchain

Node (computer connected to the blockchain network using a client that

performs the task of validating and relaying transactions) gets a copy of the
blockchain, which gets downloaded automatically upon joining the blockchain
network.

• Together they create a powerful second-level network, a wholly different vision for
how the internet can function.

• Every node is an “administrator” of the blockchain, and joins the network voluntarily
(in this sense, the network is decentralized)

• There are an estimated 700 Bitcoin-like cryptocurrencies (exchangeable value tokens)

already available. As well, a range of other potential adaptations of the original
blockchain concept are currently active, or in development.
Blockchain operates on a peer to peer basis and is decentralised
• By design, the blockchain is a decentralized technology.

• Anything that happens on it is a function of the network as a whole

• Some important implications stem from this.

• By creating a new way to verify transactions aspects of traditional
commerce could become unnecessary
• Stock market trades become almost simultaneous on the
blockchain, for instance — or it could make types of record
keeping, like a land registry, fully public. And decentralization is
already a reality.

• A global network of computers uses blockchain technology to jointly

manage the database that records Bitcoin transactions. That is, Bitcoin is
managed by its network, and not any one central authority

• Decentralization means the network operates on a user-to-user (or peer-

to-peer) basis. The forms of mass collaboration this makes possible are
just beginning to be investigated.

Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between
peers. Peers are equally privileged, equipotent participants in the application. They are said to form a peer-to-peer network of
nodes.
Types of networks
Let me give you an example
 FUNCTIONING IN DETAIL

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How does it work
Cryptocurrency
A verified
transaction can
A medium of exchange
involve
created and stored
cryptocurrency,
electronically in the
records,
blockchain using encryption
contracts or
techniques to control the
other
creation of monetary units
information
and to verify the transfer of
The requested funds
Validation
transaction is The network of nodes validates
Someone requests a broadcast to a P2P the transaction and the user’s
transaction network consisting of status using algorithm Has no intrinsic
nodes value

Has no physical
Once verified the form and exists
transaction is combined only in the
with other transactions network
to create a new block of
data for the ledger
The new block is then added to the existing
Not controlled by a
The transaction is blockchain, in a way that is permanent and
central bank and
complete unalterable
the network is
decentralized
 APPLICABILITY IN
INDIAN ARMY

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How will it help us

Governance Supply chain auditing

• By making the policies, regulations, employee • Distributed ledgers provide an easy way to certify
records fully transparent and accessible for army that the backstories of the things we buy are
men, distributed database technology to bring in genuine
more transparency to overall policies in the system • Transparency comes with blockchain based
 enhance trust in the system timestamping of a date and location- on ethical
diamonds for instance – that corresponds to a
• Any policy modification would be readily available product number
 Speed of transmission of information • The arms and equipment purchase record can be
maintained
How will it help us

Protection File storage

• Decentralizing file storage on the internet
• Smart contracts can protect copyright
brings clear benefits
and eliminate the risk of file copying and
redistribution
• Distributing confidential data protects files
from getting hacked or lost
• A decentralized system minimizes the
cyber threats and fear of losing the
important information
 THANK YOU

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