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Block Chain

Blockchain is a decentralized, distributed digital ledger that records transactions across multiple computers. It allows transactions to be recorded and verified without a central authority. Blockchains store transaction data in blocks that are linked using cryptography. Each new block contains a cryptographic hash of the previous block, forming a chain. This makes it difficult or impossible to alter past transactions without also altering all subsequent blocks.

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29 views

Block Chain

Blockchain is a decentralized, distributed digital ledger that records transactions across multiple computers. It allows transactions to be recorded and verified without a central authority. Blockchains store transaction data in blocks that are linked using cryptography. Each new block contains a cryptographic hash of the previous block, forming a chain. This makes it difficult or impossible to alter past transactions without also altering all subsequent blocks.

Uploaded by

Vidura Prasad
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 PDF, TXT or read online on Scribd
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BLOCK CHAIN

TECHNOLOGY
A blockchain is a decentralized, distributed and public digital ledger that is used to record transactions
across many computers so that the record cannot be altered retroactively without the alteration of all
subsequent blocks and the consensus of the network.
INSIDE
• What is a Blockchain
• Blockchain History
• What Are the Types of Blockchain
• Blockchain Transaction Process
• Why blockchain is important
• Benefits of blockchain
• Centralized, Decentralized & Distributed
• Peer-to-peer networks
• The cryptographic hash function SHA-256
• Top 5 Blockchain Platforms
• Blockchain Security
WHAT IS A BLOCKCHAIN
▪ A blockchain is a Decentralized, Distributed database or ledger
shared among a computer network's nodes. They are best known for
their crucial role in cryptocurrency systems for maintaining a secure and
decentralized record of transactions.

▪ Blockchain is a type of shared database that differs from a typical


database in the way it stores information; blockchains store data in
blocks linked together via cryptography.

▪ Different types of information can be stored on a blockchain, but the


most common use for transactions has been as a ledger.
BLOCKCHAIN HISTORY
▪ 2000
Stefan Konst published his theory of cryptographic secured chains

▪ 2004
Cryptographic activist Hal Finney introduced “Reusable Proof of Work”.

▪ 2009
Satoshi Nakamoto conceptualized the concept of “Distributed Blockchain” in his white
paper: ”A Peer to Peer Electronic Cash System ”.James Howells was an IT worker in
the United Kingdom, who starts mining bitcoin.
Satoshi Nakamoto Releases Bitcoin White Paper.

▪ 2015
Ethereum Blockchain Is Funded By Crowdsale, Ethereum Frontier Network was
launched
WHAT ARE THE TYPES OF BLOCKCHAIN
Private Blockchains
• Private blockchain networks require an invitation.
• Users must be validated by either the network’s central administrator.
• Businesses that use private blockchains typically set up a permissioned network.
• Private blockchains typically use a “Proof-of-Authority” (PoA)

Public Blockchains
• Public blockchains focus on participation and transparency.
• Meaning anyone can participate in validating network transactions.
• Software code is open-source and available to the public (e.g., Bitcoin and Ethereum).

Consortium Blockchains
• When discussing blockchains, public and private blockchains are the only ones mentioned.
• There is a third option consortium blockchains.
• Consortium blockchains consist of known participants preapproved by a central authority. (XRP)
BLOCKCHAIN TRANSACTION PROCESS
▪ In Bitcoin, transaction is sent
to a memory pool, where it is
stored and queued until a
miner or validator picks it up.
Once it is entered into a block
and the block fills up with
transactions, it is closed and
encrypted using an
encryption algorithm. Then,
the mining begins.
WHY BLOCKCHAIN IS IMPORTANT:
✓Distributed ledger technology
All network participants have access to the distributed ledger and its immutable record of
transactions.

✓Immutable records (Unchanged Data)


No participant can change or tamper with a transaction after it’s been recorded to the
shared ledger.

✓Smart contracts
To speed transactions, a set of rules — called a smart contract — is stored on the
blockchain and executed automatically. A smart contract can define conditions for
corporate bond transfers.
BENEFITS OF BLOCKCHAIN
▪ Greater trust –
With blockchain, as a 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.

▪ Greater security –
Consensus on data accuracy is required from all network members, and all
validated transactions are immutable because they are recorded
permanently. No one, not even a system administrator, can delete a
transaction.
CENTRALIZED, DECENTRALIZED &
DISTRIBUTED
CENTRALIZED BLOCKCHAIN
▪ Centralized cryptocurrency exchanges are online platforms used
to buy and sell cryptocurrencies. They are the most common
means investors use to buy and sell cryptocurrency holdings. For
most digital currency investors, the centralized cryptocurrency
exchange is one of the most important method for transacting.

▪ Some investors may find the concept of a "centralized" exchange


somewhat misleading, as digital currencies are often billed as
"decentralized." Here's what it means for an exchange of this
type to be "centralized" and why these exchanges are so crucial
for the success of the cryptocurrency industry as a whole.

▪ All Stable Coin Centralized (USDT/BUSD/TUSD)


DECENTRALIZED BLOCKCHAIN
▪ In blockchain, decentralization refers to the transfer of control and
decision-making from a centralized entity (individual, organization, or
group thereof) to a distributed network. Decentralized networks strive to
reduce the level of trust that participants must place in one another, and
deter their ability to exert authority or control over one another in ways
that degrade the functionality of the network.

▪ Benefits of decentralization
▪ Provides a trustless environment
▪ Improves data reconciliation
▪ Reduces points of weakness
▪ Optimizes resource distribution
DISTRIBUTED (HYBRID) BLOCKCHAIN
▪ Distributed ledgers use independent nodes to
record, share, and synchronize transactions in their
respective electronic ledgers instead of keeping
them in one centralized server.

▪ Distributed Blockchain Technology (DBT) is centered


around an encoded and distributed database where
records regarding transactions are stored.
distributed ledger is a database that is spread cross
various computers, nodes, institutions, or countries
accessible by multiple people around the globe.

▪ Exchange Developed Coin (BNB/TWT/KAS)


PEER-TO-PEER NETWORKS
▪ To implement distributed storage, the blockchain
uses Peer-to-peer (P2P) networks.

▪ In this type of network, no node assumes the role of


central server.

▪ On the contrary, in a P2P network each node


assumes the role respectively of client and server
when appropriate.

▪ In peer to peer network protocol


OKX / BINANCE / KuCOIN / PAYBIS / HUOBI / PAXFUL
SHA-256 BLOCK FUNCTION
▪ General description
▪ SHA-256 (secure hash algorithm, FIPS 182-2) is a cryptographic hash function
with digest length of 256 bits. It is a keyless hash function; that is, an MDC
(Manipulation Detection Code). A message is processed by blocks of 256 = 8 ×
32 bits, each block requiring 64 rounds.

▪ The algorithm uses the functions:


Ch(X, Y,Z) = (X ^ Y ) (X ^ Z),
Maj(X, Y,Z) = (X ^ Y ) (X ^ Z) (Y ^ Z),
0(X) = RotR(X, 2) RotR(X, 13) RotR(X, 22),
▪ Nod 0 Transfer
1(X) = RotR(X, 6) RotR(X, 11) RotR(X, 25),
0(X) = RotR(X, 7) RotR(X, 18) ShR(X, 3),
▪ Nod 0 Transfer
1(X) = RotR(X, 17) RotR(X, 19) ShR(X, 10),
TOP 3 BLOCKCHAIN PLATFORMS (POS)
▪ Ethermine - Introduced in 2013, Ethereum is one of the oldest and most established
blockchain platforms. It provides a truly decentralized blockchain that is comparable to
the Bitcoin blockchain network. is that it enables true decentralization with support for
smart contracts.

▪ AWS Blockchain - AWS Blockchain is a public, decentralized blockchain network that has
been the most successful with enterprise clients who are less risk-averse, the biggest
opportunities in using it to link into enterprise p2p technologies more seamlessly than is
possible in other decentralized networks.

▪ Hyperledger – Hyperledger is a set of tools that helps create blockchain applications.


Championed by the Linux Foundation, it was built from the ground up with enterprise
distributed ledger uses in mind.
BLOCKCHAIN SECURITY
▪ Blockchain security is a complete risk management system for
blockchain networks, incorporating assurance services, cybersecurity
frameworks, and best practices to mitigate the risks of fraud and
cyber-attacks.

▪ Blockchain technology's data structures have inherent security


qualities because they are based on consensus, cryptography, and
decentralization principles. Each new block of information connects to
all the previous blocks in a way that it's nearly impossible to tamper
with. In addition, all transactions in a block get validated and agreed
on by a consensus mechanism (authorized users)
THANK YOU

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