CSI3013 Blockchain

Technologies
Dr.M.Selvi
 General Ledger
• A general ledger contains accounts covering the assets and
liabilities that make up a business's activities.
• Typically, the accounts of the general ledger are sorted into
five categories within a chart of accounts.
• These five categories are
1. assets( property owned by a person),
2. liabilities(dept or something that is owed to somebody else),
3. owner's equity (amount that belongs to the business
owners),
4. revenue ( the money generated from normal business
operatios), and
5. expenses( cost or charge).
General Ledger
 Distributed Ledger
• Ledgers have been at the heart of commerce since
ancient times and they are still used to record many
things, most commonly assets such as money and
property.
• But the technological innovation and digitization of
records have enabled the collaborative creation of a
new system of digital recording system
called distributed ledger which goes way beyond the
traditional paper-based ledgers.
• Unlike the traditional payment schemes, distributed
ledgers do not have a centralized database or a central
data storage; the ledger is, in fact, distributed among
many different nodes in a peer-to-peer network.
 Blockchain
• The first practical implementation of a digital currency was started
in 2009 called Bitcoin.
• Later the term cryptocurrency emerged.
• In 2008, a paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash
System” was written on the topic of digital currency under the
pseudonym Satoshi Nakamoto.
• It first introduced the term chain of blocks. Nobody knows the
actual identity of Satoshi Nakamoto, the person who developed
and released the world’s first cryptocurrency, and created the first
database on which the digital currency was deployed.
• He later handed over Bitcoin development to its core developers
and simply disappeared.
• The term chain of blocks evolved over the years into the word
Blockchain.
• Each block represents a digital record of a batch of validated
bitcoin transactions.
 Blockchain Definition by IBM
• Blockchain defined: 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).
• An immutable ledger in blockchain refers to any
records that can remain unchanged. It cannot be
altered, so the data cannot be easily changed.
 How blockchain works?
• As each transaction occurs, it is recorded as a
“block” of data
• Those transactions show the movement of an
asset that can be tangible (a product) or
intangible (intellectual).
• The data block can record the information of
your choice: who, what, when, where, how
much and even the condition — such as the
temperature of a food shipment.
 How blockchain works?
• Each block is connected to the ones before and after
it
• These blocks form a chain of data as an asset moves
from place to place or ownership changes hands.
• The blocks confirm the exact time and sequence of
transactions, and
• the blocks link securely together to prevent any
block from being altered or a block being inserted
between two existing blocks.
 How blockchain works?
• Transactions are blocked together in an irreversible
chain: a blockchain
• Each additional block strengthens the verification of
the previous block and hence the entire blockchain.
• This renders the blockchain tamper-evident,
delivering the key strength of immutability.
• This removes the possibility of tampering by a
malicious actor — and builds a ledger of transactions
you and other network members can trust.
 Key elements of a blockchain
Distributed ledger technology
– All network participants have access to the distributed ledger and its
immutable record of transactions.
– With this shared ledger, transactions are recorded only once,
eliminating the duplication of effort that’s typical of traditional
business networks.
Immutable records
– No participant can change or tamper with a transaction after it’s been
recorded to the shared ledger.
– If a transaction record includes an error, a new transaction must be
added to reverse the error, and both transactions are then visible.
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,
include terms for travel insurance to be paid and much more.
 Distributed ledger technology
• Distributed ledger technology (DLT) is a
digital system for recording the transaction of
assets in which the transactions and their
details are recorded in multiple places at the
same time.
• Unlike traditional databases, distributed
ledgers have no central data store or
administration functionality.
 Distributed ledger technology
• Distributed ledger technology (DLT) refers specifically
to the technological infrastructure and protocols that
allow the simultaneous access, validation and updating
of records that characterizes distributed ledgers.
• It works on a computer network spread over multiple
entities or locations.
• DLT uses cryptography to securely store data,
cryptographic signatures and keys to allow access only
to authorized users.
• The technology also creates an immutable database,
which means information, once stored, cannot be
deleted and any updates are permanently recorded for
posterity.
Distributed ledger

Figure 1: Aircraft parts blockchain

Figure 1 Different types of networks/systems depicting decentralization from a modern
perspective
Centralized Vs Decentralized
• https://www.ibm.com/topics/benefits-of-
blockchain#:~:text=Blockchain%20increases
%20trust%2C%20security%2C
%20transparency,cost%20savings%20with
%20new%20efficiencies.&text=Blockchain
%20for%20business%20uses%20a,accessed
%20by%20members%20with%20permission.