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Block Chain: Dr. Hufrish Majra

Blockchain is a distributed ledger technology that records transactions in a verifiable and permanent way by utilizing cryptography. It consists of blocks that hold sets of valid transactions and are linked together using cryptography. Miners use specialized software to find solutions to complex algorithms to mine new blocks and validate transactions. Nodes maintain copies of the blockchain and work together algorithmically to approve new blocks and updates in a decentralized manner. This creates transparency, trust and integrity without the need for centralized control.

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Simreen Hudda
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117 views

Block Chain: Dr. Hufrish Majra

Blockchain is a distributed ledger technology that records transactions in a verifiable and permanent way by utilizing cryptography. It consists of blocks that hold sets of valid transactions and are linked together using cryptography. Miners use specialized software to find solutions to complex algorithms to mine new blocks and validate transactions. Nodes maintain copies of the blockchain and work together algorithmically to approve new blocks and updates in a decentralized manner. This creates transparency, trust and integrity without the need for centralized control.

Uploaded by

Simreen Hudda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Block chain

Dr. Hufrish Majra


History of Blockchain

Although blockchain is a new technology, it already boasts a rich and interesting history. The following is a brief timeline of some
of the most important and notable events in the development of blockchain. 
2008
•Satoshi Nakamoto, a pseudonym for a person or group, publishes “Bitcoin: A Peer to Peer Electronic Cash System."
2009
•The first successful Bitcoin (BTC) transaction occurs between computer scientist Hal Finney and the mysterious Satoshi
Nakamoto.
2010
•Florida-based programmer Laszlo Hanycez completes the first ever purchase using Bitcoin — two Papa John’s pizzas. Hanycez
transferred 10,000 BTC’s, worth about $60 at the time. Today it's worth $80 million. 
•The market cap of Bitcoin officially exceeds $1 million.
2011
•1 BTC = $1USD, giving the cryptocurrency parity with the US dollar.
•Electronic Frontier Foundation, Wikileaks and other organizations start accepting Bitcoin as donations.
2012
•Blockchain and cryptocurrency are mentioned in popular television shows like The Good Wife, injecting blockchain into pop
culture.
•Bitcoin Magazine launched by early Bitcoin developer Vitalik Buterin.
2013
•BTC market cap surpassed $1 billion.
•Bitcoin reached $100/BTC for first time.
•Buterin publishes “Ethereum Project" paper suggesting that blockchain has other possibilities besides
Bitcoin (e.g., smart contracts).
2014
•Gaming company Zynga, The D Las Vegas Hotel and Overstock.com all start accepting Bitcoin as
payment.
•Buterin’s Ethereum Project is crowdfunded via an Initial Coin Offering (ICO) raising over $18
million in BTC and opening up new avenues for blockchain.
•R3, a group of over 200 blockchain firms, is formed to discover new ways blockchain can be
implemented in technology.
•PayPal announces Bitcoin integration.
2015
•Number of merchants accepting BTC exceeds 100,000.
•NASDAQ and San-Francisco blockchain company Chain team up to test the technology for trading
shares in private companies.
2016
•Tech giant IBM announces a blockchain strategy for cloud-based business solutions.
•Government of Japan recognizes the legitimacy of blockchain and cryptocurrencies.
2017
•Bitcoin reaches $1,000/BTC for first time.
•Cryptocurrency market cap reaches $150 billion.
•JP Morgan CEO Jamie Dimon says he believes in blockchain as a future technology, giving the
ledger system a vote-of-confidence from Wall Street.
•Bitcoin reaches its all-time high at $19,783.21/BTC.
•Dubai announces its government will be blockchain-powered by 2020.
2018
•Facebook commits to starting a blockchain group and also hints at the possibility of creating its
What is Block Chain?
• Blockchain, sometimes referred to as Distributed Ledger Technology
(DLT), makes the history of any digital asset unalterable and transparent
through the use of decentralization and cryptographic hashing.  
• A simple analogy for understanding blockchain technology is a Google
Doc. When we create a document and share it with a group of people,
the document is distributed instead of copied or transferred. 
• This creates a decentralized distribution chain that gives everyone
access to the document at the same time.
• No one is locked out awaiting changes from another party, while all
modifications to the doc are being recorded in real-time, making
changes completely transparent
BLOCKCHAIN EXPLAINED: A QUICK OVERVIEW

• Digital assets are distributed instead of copied or transferred.


• The asset is decentralized, allowing full real-time access.
• A transparent ledger of changes preserves integrity of the document,
which creates trust in the asset.
• Blockchain is an especially promising and revolutionary technology
because it helps reduce risk, stamps out fraud and brings
transparency in a scaleable way for myriad uses. 
Important concepts
• Blockchain consists of three important concepts: blocks, nodes and
miners.
• Blocks
• Every chain consists of multiple blocks and each block has three basic
elements:
• The data in the block.
• A 32-bit whole number called a nonce. The nonce is randomly
generated when a block is created, which then generates a block
header hash. 
• The hash is a 256-bit number wedded to the nonce. It must start with
a huge number of zeroes (i.e., be extremely small).
• When the first block of a chain is created, a nonce generates the
cryptographic hash. The data in the block is considered signed and
forever tied to the nonce and hash unless it is mined.  
Miners
• Miners create new blocks on the chain through a process called mining.

• In a blockchain every block has its own unique nonce and hash, but also references the hash of
the previous block in the chain, so mining a block isn't easy, especially on large chains.

• Miners use special software to solve the incredibly complex math problem of finding a nonce that
generates an accepted hash.

• Because the nonce is only 32 bits and the hash is 256, there are roughly four billion possible
nonce-hash combinations that must be mined before the right one is found.

• When that happens miners are said to have found the "golden nonce" and their block is added to
the chain. 

• Making a change to any block earlier in the chain requires re-mining not just the block with the
change, but all of the blocks that come after.

• This is why it's extremely difficult to manipulate blockchain technology.

• Think of it is as "safety in math" since finding golden nonces requires an enormous amount of time
and computing power.
• When a block is successfully mined, the change is accepted by all of the nodes on the network and
Nodes
• One of the most important concepts in blockchain technology is
decentralization. No one computer or organization can own the chain.
• Instead, it is a distributed ledger via the nodes connected to the chain.
• Nodes can be any kind of electronic device that maintains copies of the
blockchain and keeps the network functioning. 
• Every node has its own copy of the blockchain and the network must
algorithmically approve any newly mined block for the chain to be
updated, trusted and verified.
• Since blockchains are transparent, every action in the ledger can be
easily checked and viewed.
• Each participant is given a unique alphanumeric identification
number that shows their transactions.
• Combining public information with a system of checks-and-balances
helps the blockchain maintain integrity and creates trust among users.
• Essentially, blockchains can be thought of as the scaleability of trust
via technology
Thank
you

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