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Blockchain technology is a decentralized, distributed ledger system that allows secure and transparent transactions among network nodes using consensus mechanisms and cryptography. It has applications in cryptocurrencies, smart contracts, supply chain management, Web3, and decentralized finance (DeFi). The technology is transforming industries by enhancing data integrity, security, and efficiency in transactions.

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3 views

Prototyping presentation

Blockchain technology is a decentralized, distributed ledger system that allows secure and transparent transactions among network nodes using consensus mechanisms and cryptography. It has applications in cryptocurrencies, smart contracts, supply chain management, Web3, and decentralized finance (DeFi). The technology is transforming industries by enhancing data integrity, security, and efficiency in transactions.

Uploaded by

voltomart
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Blockchain

Technology
Overview of Blockchain Technology

Blockchain is a distributed database of ledger that is shared among


“Nodes” of computer network

Allows transactions to be gathered into blocks and allows the resulting


database / ledger to be accessed by different servers

Users use consensus mechanisms (e.g., Proof of Work, Proof of Stake) that
ensure agreement among the nodes regarding the validity of transactions

It uses “cryptography” to chain / align blocks in a chronological order


Centralized Ledger vs Distributed Ledger

● There are multiple ledgers, but Bank holds the ● There is one ledger. All Nodes have some level of access
“main record” to that ledger.
● Client must reconcile its own ledger against that of ● All Nodes agree to a protocol that determines the “true
Bank, and must convince Bank of the “true state” state” of the ledger at any point in time. The application
of the Bank ledger if discrepancies arise of this protocol is sometimes called “achieving
consensus.”
Where is cryptography used in Blockchain

● Digital Signatures
Initiation and Broadcasting used to prove ownership of a particular transaction or data by an
individual or entity
of Transaction ● Private/Public Keys
encrypt and decrypt data, and to create and verify blockchain
addresses

● Proof of Work and certain alternatives


Validation of Transaction validate hashes

● Hash Function
Chaining Blocks “a mathematical algorithm that converts a plaintext message of any
length into a fixed-length string of numbers”
How does a Distributed Ledger work
Power of Blockchain
Decentralized Platform
Unlike traditional databases, which are controlled by a single entity, blockchain operates on a
decentralized network

Transparency
Transactions on a blockchain are visible to all participants in the network. This transparency helps
build trust among users and allows for better tracking of assets and transactions.

Security
Blockchain uses cryptographic techniques to secure data, making it nearly impossible to alter or
tamper with information. This enhances data integrity and security.

Tokenization
Blockchain allows for the representation of real-world assets as digital tokens, making it easier to
trade, transfer, and invest in assets like real estate, art, and more.
Uses of Blockchain
Cryptocurrencies
The most well-known use of blockchain is as the underlying technology for cryptocurrencies like
Bitcoin and Ethereum, enabling secure peer-to-peer transactions without intermediaries.

Smart Contracts
These are self-executing contracts with the terms of the agreement directly written into code. They
automatically enforce and execute the terms of a contract when conditions are met, streamlining
processes and reducing the need for intermediaries.

Supply Chain Management


Blockchain can track the entire lifecycle of products from production to delivery. This improves
transparency, reduces fraud, and enhances traceability in supply chains

Web3
Referred to as the decentralized web, it refers to applications and services built on blockchain
technology. Unlike Web 2.0, which is characterized by centralized platforms and services controlled
by a few major corporations. Web3 aims to create a more decentralized, user-centric, and trustless
internet.

Decentralized Finance DeFi


DeFi platforms like Uniswap and Aave use blockchain to provide decentralized lending, borrowing,
and trading services without intermediaries.
Conclusion

Blockchain technology is revolutionizing various industries by providing a


secure, transparent, and efficient way to conduct transactions and share data.
Its decentralized nature and robust security features make it a promising
solution for numerous applications, paving the way for innovation and new
business models in the digital age.

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