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Block Chain

Blockchain technology uses cryptography to create a distributed ledger of immutable blocks of data. Each block contains a cryptographic hash of the previous block, linking them together in a chain. This makes it difficult to tamper with or backdate blocks in the chain. Blockchains use proof-of-work and distributed consensus across peer-to-peer networks to securely validate new blocks added to the chain. Smart contracts allow storing programs in blockchains to automatically execute parts of an agreement.

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Shubham Dhanetia
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83 views

Block Chain

Blockchain technology uses cryptography to create a distributed ledger of immutable blocks of data. Each block contains a cryptographic hash of the previous block, linking them together in a chain. This makes it difficult to tamper with or backdate blocks in the chain. Blockchains use proof-of-work and distributed consensus across peer-to-peer networks to securely validate new blocks added to the chain. Smart contracts allow storing programs in blockchains to automatically execute parts of an agreement.

Uploaded by

Shubham Dhanetia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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BLOCKCHAIN TECHNOLOGY

What is BlockChain ?
• A blockchain, originally block chain, is a continuously growing
list of records, called blocks, which are linked and secured
using cryptography.
• This technique was originally described in 1991 by a group of
researchers and was originally intended to timestamp digital
documents so that it’s not possible to backdate them or to
tamper with them.
• However it went by mostly unused until it was adapted by
Satoshi Nakamoto to create digital crypto-currency Bitcoin in
2009.
What is BlockChain ?
• A blockchain is a distributed ledger that is completely open to
anyone.
• It is having interesting quality that once some data has been
recorded inside a blockchain, it becomes very difficult to
change it.
How BlockChain Works?
• Each block contains some data, the hash of the block and the
hash of the previous block.
• The data that is stored inside a block depends on the type of
blockchain.
• The Hash in the block identifies a block and all of its contents
and it’s always unique, just as fingerprint.
• Once the block is created, it’s hash is being calculated.
Changing something inside the block will cause the hash to
change.
• So hashes are very useful when you want to detect changes to
block.
How BlockChain Works?
• So, if the fingerprint of a block changes, it is no longer the
same block.
• The third element inside each block is the hash of the
previous block. And this effectively creates a chain of blocks
and this technique makes a Blockchain so secure.
How BlockChain Works?

• The first block is known as Genesis block.


What is someone tampers any Block in the BlockChain ?

• Here, someone tampers with the second block. This causes the Hash of the block to change as well.
•In turn, that will make block 3 and all the following blocks invalid because they no longer store a valid
hash of the previous block.

•But using hashes is not enough to prevent tampering. Computers these days are very fast and can
calculate hundreds of thousands of hashes per second. You can effectively tamper with a block and
recalculate all the hashes of other blocks to make your blockchain valid again.

• So to overcome this, blockchains have something called proof-of-work.


Proof of Work
• It’s a mechanism that slows down the creation of new blocks.
• In Bitcoin case: it takes about 10 minutes to calculate the required proof-
of-work and add a new block to the chain.
• This mechanism makes it very hard to tamper with the blocks, because if
you temper with 1 block, you will need to recalculate the proof of work for
all the following blocks.
• So, the security of a blockchain comes from its creative use of hashing and
the proof-of-work
How BlockChains are secured?

• There is one more way that blockchains secure themselves


and that’s by being distributed.
• Instead of using a central entity to manage the chain,
blockchains use a peer-to-peer network and everyone is
allowed to join.
• When someone joins this network, he gets the full copy of the
blockchain.
• The node can use this to verify that everything is still in order.
How BlockChains are secured?

• When someone creates a new block, that block is send to


everyone on the network.
• Each node then verifies the block to make sure that it hasn’t
been tampered with.
• If everything checks out, each node adds this block to their
own blockchain.
• All the nodes in this network create consensus(consistency).
• They agree about what blocks are valid and which aren’t.
• Blocks that are tampered with will be rejected by other nodes
in the network.
BlockChain Process
Smart Contracts
• In simple terms: use a distributed ledger to
store contracts.
• A smart contract is actually a tiny computer
program that is stored inside a blockchain.

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