BLOCK CHAIN

CONTENT
◇ What is Blockchain? Pg.4
◇ Why we need Blockchain? Pg.7
◇ Key elements of Blockchain Pg.9
◇ How Blockchain works? Pg.11
◇ Bitcoin & Blockchain Pg.1
◇ Benefits of Blockchain 3
◇ Disadvantages of Blockchain Pg.15

Pg.1
9
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 “To understand the power of blockchain systems, and the
things they can do, it is important to distinguish between

“
three things that are commonly muddled up, namely the
bitcoin currency, the specific blockchain that underpins it
and the idea of blockchains in general”

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1 What is
Blockchain?
 Overview
Blockchain is a shared, immutable ledger that
facilitates the process of recording transactions
and tracking assets in a business network.
An asset can be tangible (a house, car, cash, land)
or intangible (intellectual property, patents,
copyrights, branding). Virtually anything of value
can be tracked and traded on a blockchain
network, reducing risk and cutting costs f o r all
involved.

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 ◇ Blockchain is the main technology behind the
cryptocurrency exchanges.
◇ Also referred as Bitcoin Block Explorer
service. It is a network of Decentralised
systems.
◇ In 1982, cryptographer David Chaum
introduced the idea of Blockchain
technology.
◇ Bitcoin’s backend underlined technology was
based on Blockchain.
◇ It uses Blocks of Data & Hash which are
connected to each other i.e. Hash of One
block is connected to its successive block.

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 Why we need
2 Blockchain?
 Business runs on information. The faster it’s received
and the more accurate it is, the better. Blockchain is ideal
f o r delivering that information because it provides
immediate, shared, and completely transparent
information stored on an immutable ledger that can be
accessed only by permissioned netw ork members. A
blockchain ne two rk can track orders, payments,
accounts, production, and much more. And because
members share a single view of the truth, you can see
all details of a transaction e n d - t o - end, giving you
greater confidence, as well as new efficiencies and
opportunities.

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 Key elements
3 of Blockchain
 Smart contracts
To speed transactions,
a set of rules – called a
Distributed Ledger smart contract – is
stored on the
Technology Immutable Records blockchain and
All network participants No participant can change executed automatically.
have access to the or tamper with a transaction A smart contract can
distributed ledger and its after it’s been recorded to define conditions for
immutable record of the shared ledger. If a corporate bond
transactions. With this transaction transfers, include terms
shared ledger, record includes an error, a for travel insurance to
transactions are new transaction must be be paid and much
recorded only once, added to reverse the error, more.
eliminating the and both transactions are
duplication of effort that’s then visible.
typical of traditional
10 business networks.
 How Blockchain
4 works?
 As each transaction Transactions are Each block is
occurs, it is recorded blocked together in an connected to the ones
as a ‘block’ of data. irreversible chain: a before and after it
Those transactions show blockchain These blocks form a
the movement of Each additional block chain of data, as the
an asset that can be strengthens the asset moves from
tangible (a product) or verification of the previous place- to-place or
intangible (intellectual). block and hence the ownership changes
The data block can entire blockchain. This hands. The blocks
renders the blockchain
record the information of confirm the exact time
tamper- evident,
your choice: who, what, and sequence of
delivering the key
when, where, how strength of immutability. transactions, and the
much, and even the This removes the blocks link securely
condition – such as the possibility of tampering by together to prevent any
temperature of a food a malicious actor – and block from being altered
shipment. builds a ledger of or a block being
transactions you and other inserted between two
network members can existing blocks.
trust.
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5 Bitcoin & Blockchain
 Bitcoin & Blockchain
◇ Bitcoin is a cryptocurrency, while blockchain
is a distributed database.
◇ Bitcoin is a currency and a system that uses a
blockchain as underlying data structure, which can be
used for many things, including cryptocurrencies.
◇ Bitcoin is powered by blockchain technology,
but blockchain has found many uses beyond Bitcoin.
◇ Bitcoin promotes anonymity, while blockchain is
about transparency. To be applied in certain sectors
(particularly banking), blockchain has to meet strict
Know Your Customer rules.
◇ Bitcoin transfers currency between users, while
blockchain can be used to transfer all sorts of
things, including information or property ownership
rights.
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6 Benefits of Blockchain
 ◇ Greater trust
With blockchain, as the member of a members-only
network, you can rest assured that you are receiving
accurate and timely data, and that your confidential
blockchain records will be shared only with network
members to whom you have specifically granted access.

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 ◇ Greater security
Consensus on data accuracy is required from all
network members, and all validated transactions are
immutable: permanently recorded. No one, not even a
system administrator, can delete a transaction.

◇ More efficiencies
With a distributed ledger that is shared among members of a
network, time-wasting record reconciliations are eliminated.
And to speed transactions, a set of rules – called a smart
contract – can be stored on the blockchain and executed
automatically.
 …other uses
 Real Estate  Online voting  Online Identity
Real Estate Since security is Using it online will
Information is reliable in show only
what isn't Blockchain specific identity
manipulated technology, and only, and for
very frequently it saves time storing this
hence and man power. online
blockchain information,
technology Blockchain can be
provides a a good option to
reliable platform consider.
to store these
information.
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 Disadvantages of
7 Blockchain
  Blockchain is not a Distributed Computing System
It is a network that relies on nodes to function properly.
The quality of the nodes determines the quality of the blockchain.

 Scalability Is An Issue.
Blockchains are not scalable as their counterpart centralized
system. In simple words, the more people or nodes join the
network,
the chances of slowing down is more!

 Some Blockchain Solutions Consume Too Much Energy.

Blockchain technology got introduced with Bitcoin. The miners are
incentivized to solve complex mathematical problems. The high energy
consumption is what makes these complex mathematical problems not
so
ideal for the real-world.

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  Blockchains are Sometimes Inefficient.
Right now, there are multiple blockchain technologies out
there. If you pick up the most popular ones including the
blockchain technology used by Bitcoin, you will find a lot of
inefficiencies within the system. This is one of the big
disadvantages of blockchain.

 Users Are Their Own Bank: Private Keys

To access the assets or the information stored by the user in
the blockchain, they need private keys. It is generated
during
the wallet creation process, So, if you as a user who forgets
its private key, are eventually logged out of their wallet and
no one can get it back. This is a serious drawback as not all
users are tech-savvy.

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 Thanks!
-Aman Thakur (20CSU336)

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