Blockchain by Aman Thakur.pptx
- 1. BLOCK CHAIN
- 2. CONTENT 2 ◇ 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.13 ◇ Benefits of Blockchain Pg.15 ◇ Disadvantages of Blockchain Pg.19
- 3. “ “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” 3
- 5. Overview 5 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 for all involved.
- 6. ◇ 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. 6
- 8. 8 Business runs on information. The faster it’s received and the more accurate it is, the better. Blockchain is ideal for delivering that information because it provides immediate, shared, and completely transparent information stored on an immutable ledger that can be accessed only by permissioned network members. A blockchain network 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 end-to- end, giving you greater confidence, as well as new efficiencies and opportunities.
- 10. 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. 10
- 12. 12 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. Each block is connected to the ones before and after it These blocks form a chain of data, as the 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. 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.
- 14. 13 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.
- 16. 16 ◇ 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.
- 17. ◇ 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.
- 18. …other uses Online voting Since security is reliable in Blockchain technology, and it saves time and man power. Real Estate Real Estate Information is what isn't manipulated very frequently hence blockchain technology provides a reliable platform to store these information. Online Identity Using it online will show only specific identity only, and for storing this online information, Blockchain can be a good option to consider. 18
- 20. 20 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.
- 21. 21 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.