Blockchain&Crypto.pptx

PRESENTEDBY:
1) Qasim Hafeez
2) Ahmad Kamran
3) Shayan Ahmad
4) Abdul Rafay

WHAT IS BLOCK
CHAIN
Blockchain is a digital ledger technology that
allows secure and transparent recording of
transactions or data in a decentralized and
immutable way. It was originally developed to
support the cryptocurrency, Bitcoin, but has
since expanded to other applications.
In a blockchain, data is stored in blocks that
are connected to each other in a chain-like
structure. Each block contains a cryptographic
hash of the previous block, which ensures the
integrity and immutability of the data stored in
the chain. The use of cryptographic hashes
and distributed consensus mechanisms, such
as Proof-of-Work or Proof-of-Stake, make it
virtually impossible to alter or tamper with the
data recorded in the chain.
Blockchains can be used for a wide range of
applications beyond cryptocurrencies, including
supply chain management, voting systems,
and decentralized finance. The decentralized
and transparent nature of blockchain
technology has the potential to increase
transparency, security, and efficiency in many
industries.

• Blockchain is a digital ledger technology that allows for the secure and transparent tracking of transactions. It was
first introduced in 2008 by an anonymous person or group known as Satoshi Nakamoto, who created the
cryptocurrency Bitcoin. Since then, blockchain has expanded beyond just cryptocurrencies and has become a
popular tool in various industries, including finance, healthcare, and logistics.
• The basic idea behind blockchain is to create a decentralized database that is maintained by a network of
computers, rather than a single centralized authority. Each computer on the network, or node, contains a copy of
the ledger and participates in verifying and validating transactions. Once a transaction is validated, it is added to
the blockchain as a new block, which is linked to the previous blocks in the chain, creating an immutable and
transparent record of all transactions.
• One of the key features of blockchain is its security. Each block in the chain is secured through cryptographic
hashing, which makes it virtually impossible to alter or tamper with the data. Additionally, because the ledger is
decentralized, there is no single point of failure or vulnerability that can be exploited by hackers or other
malicious actors.
• Another important feature of blockchain is its transparency. Because every transaction is recorded on the
blockchain and visible to all nodes on the network, there is a high degree of transparency and
accountability. This makes it particularly useful for industries such as finance, where trust and transparency are
critical.
• Blockchain also has the potential to reduce transaction costs and increase efficiency by eliminating
intermediaries and streamlining processes. For example, in the finance industry, blockchain can be used to
facilitate cross-border payments without the need for intermediaries such as banks or payment processors.
• In summary, blockchain is a decentralized digital ledger technology that provides security, transparency, and
history, and features of blockchain

Blockchain is a distributed ledger technology that comprises several processes that work together to enable
secure and transparent transactions. The first process is block creation, where a group of transactions is validated
and added to the blockchain as a block. The next process is ledger maintenance, where the blockchain ledger is
updated with the new block of transactions. The distribution process ensures that all nodes on the network receive
a copy of the updated ledger. Transactions are processed through a consensus mechanism, which includes
confirmation by network nodes that validate the transaction's authenticity. Proof of work is a computational puzzle-
solving process that enables a node to add a new block to the chain, incentivizing miners with cryptocurrency
rewards. Finally, the result is the immutable record of all transactions that have occurred on the blockchain,
forming a secure and transparent record that cannot be altered or deleted.

WHAT IS A BLOCK???
In blockchain technology, a block is a
fundamental unit of data that contains a set
of verified and validated transactions. It is a
digital record that contains information such
as the transaction data, a timestamp, and a
reference to the previous block in the chain.
When a transaction is initiated on a
blockchain network, it is first verified by
multiple nodes on the network. Once the
transaction is validated, it is grouped
together with other validated transactions to
form a block. The block is then broadcast to
all nodes on the network, and each node
verifies the block's contents before adding it
to their local copy of the blockchain ledger.
By design, the block in a blockchain is
designed to be resistant to modification
once it has been added to the chain. Each
block contains a unique cryptographic hash
that is based on the block's contents and
the hash of the previous block in the chain,
creating a chain of blocks that are
connected and secured using cryptographic
techniques.

WHAT IS LEDGER???
In the context of blockchain technology, a
ledger is a digital record of transactions that
is maintained across a distributed network of
computers. This ledger is used to keep track
of all the transactions that occur on the
network, and it is designed to be secure,
transparent, and tamper-proof.
The ledger is composed of a series of
blocks, and each block contains a set of
transactions that have been verified and
added to the blockchain by network
participants known as "miners." Each block
is linked to the previous block in the chain,
creating a chronological and immutable
record of all the transactions that have
occurred on the network.
The ledger is maintained by a consensus
mechanism, which ensures that all network
participants agree on the state of the ledger
at any given time. This consensus
mechanism can vary depending on the
specific blockchain protocol being used, but
it typically involves some form of proof-of-

WHAT IS DISTRIBUTION AND
TRANSACTION?
Distribution in blockchain refers to the
fact that the ledger is decentralized,
meaning that it exists on multiple
nodes or computers that are
connected to the network. This
ensures that the ledger is transparent
and tamper-proof, as any attempt to
alter the data would need to be done
on multiple nodes simultaneously.
Transactions in blockchain refer to the
exchange of digital assets or
information between two parties.
Transactions are recorded on the
blockchain and can be viewed by
anyone with access to the network.
Transactions are validated by nodes
on the network, which use complex
algorithms to ensure that the
transaction is legitimate and that the
parties involved have the necessary
funds or assets to complete the
transaction.

CONFIRMATION &
PROOF OF WORK
Confirmation in blockchain refers to the process of
validating a transaction by nodes on the network.
When a transaction is broadcast to the network,
nodes compete to validate and add it to the
blockchain. Once a node successfully validates a
transaction, it broadcasts the confirmation to the
rest of the network, and the transaction becomes a
permanent part of the blockchain.
Proof of work (PoW) is a consensus algorithm
used in some blockchains, such as Bitcoin. PoW
requires nodes on the network to solve a complex
mathematical puzzle in order to validate a block of
transactions and add it to the blockchain. The first
node to solve the puzzle is rewarded with new
coins or tokens, a process known as mining. PoW
ensures that the blockchain is secure and resistant
to tampering, as it would be prohibitively difficult
for a malicious actor to alter the blockchain without
solving the puzzles for every block in the chain.
However, PoW is energy-intensive and can lead to
centralization of mining power in the hands of a
few large players, leading some blockchains to
adopt alternative consensus algorithms, such as
proof of stake (PoS).

REWARD
After a proof of work (PoW) is completed on a
blockchain, the miner who successfully
completed the PoW broadcasts the new block
to the network. The other nodes on the network
then validate the block to ensure that the PoW
was completed correctly and that the
transactions in the block are valid. Once the
block is validated by the network, it is added to
the blockchain.
Adding a new block to the blockchain also
involves updating the state of the ledger. The
ledger keeps track of the ownership and
balances of all the assets on the blockchain.
When a new block is added, the ledger is
updated to reflect the changes in ownership and
balances resulting from the transactions in the
new block.
Once the block is added to the blockchain, the
miner who completed the PoW is rewarded with
a certain amount of cryptocurrency. This serves
as an incentive for miners to continue to
participate in the network and to complete
PoWs.
Overall, the PoW consensus mechanism helps
to secure the blockchain by making it difficult for
any individual or group to alter the ledger or

WHAT IS HALVING?
Halving is a term used in the cryptocurrency world to
describe an event that occurs in the mining process
of certain cryptocurrencies, such as Bitcoin. It refers
to the reduction of the block reward that miners
receive for adding new blocks to the blockchain.
In the case of Bitcoin, the block reward is halved
every 210,000 blocks, which is roughly every four
years. Initially, when Bitcoin was launched in 2009,
the block reward was 50 BTC per block, but after the
first halving in 2012, it was reduced to 25 BTC per
block. After the second halving in 2016, the reward
was reduced to 12.5 BTC per block, and after the
third halving in 2020, the reward was further
reduced to 6.25 BTC per block.
The purpose of halving is to control the supply of
new coins and to ensure that the total supply of the
cryptocurrency remains limited. By reducing the rate
at which new coins are created, halving helps to
maintain the scarcity of the cryptocurrency, which
can have an impact on its price. This is because,
with a limited supply, the demand for the
cryptocurrency can increase, which can drive up its
price.
Halving is an important event for the cryptocurrency
community as it affects the economics of mining and
trading in cryptocurrencies. It also represents a
significant milestone in the history of a

PUBLIC VS PRIVATE BLOCKCHAINS
Public blockchain networks, such as Bitcoin and
Ethereum, are open and accessible to anyone. They
are decentralized, meaning that no single entity or
group has control over the network. Transactions on
the public blockchain are transparent and visible to
anyone, and they are verified and processed by a
network of users known as nodes. Public blockchains
are often used for cryptocurrencies, but they can also
be used for other purposes such as smart contracts
and decentralized applications (dApps).
On the other hand, private blockchain networks are
permissioned, meaning that only authorized parties
can participate in the network. These networks are
typically used by organizations or groups that require
more control over their data and transactions. Private
blockchains are often faster and more efficient than
public blockchains, as they have a smaller network of
nodes to process transactions. They can also offer
greater privacy and security, as they are not open to
the public.
In summary, public blockchains are open,
decentralized, and accessible to anyone, while private
blockchains are permissioned, centralized, and
accessible only to authorized parties. The choice
between public and private blockchain networks
depends on the specific use case and the needs of

SMART CONTRACTS & THEIR TYPES:
Smart contracts are self-executing contracts that
use computer code to automate the execution of
contractual terms. They are built on blockchain
technology and allow for the creation of trustless,
tamper-proof agreements between parties.
1.Financial Smart Contracts: These are the most
common type of smart contracts and are used in
the financial industry for a wide range of activities
such as loan agreements, insurance policies, and
investment management.
2.Supply Chain Smart Contracts: These are used
to automate the process of tracking goods from
the point of origin to the point of delivery, helping
to ensure transparency and efficiency throughout
the supply chain.
3.Real Estate Smart Contracts: These are used
to streamline the process of buying and selling
property, by automating the execution of property
contracts and facilitating secure and efficient
transfer of property ownership.
4.Legal Smart Contracts: These are used to
automate legal agreements and enforce the
terms of the agreement using blockchain
technology. They can be used in a wide range of
legal agreements such as rental agreements,
employment contracts, and service agreements.
5.Identity Smart Contracts: These are used to
manage identity verification and authentication in
a secure and decentralized manner, without
relying on third-party intermediaries.

TRANSFORMATION OF BLOCKCHAIN IN DIFFERENT
SECTORS AND INDUSTRIES
Blockchain technology has the potential to
revolutionize various sectors and industries,
including finance, supply chain
management, healthcare, real estate, and
government. Its key benefits include
improved security, transparency, and
efficiency, which can lead to cost savings
and increased trust between stakeholders.
Blockchain technology has already
disrupted the finance and banking industry
through the introduction of cryptocurrencies
like Bitcoin and Ethereum. It can improve
supply chain transparency, traceability, and
accountability, streamline the real estate
industry, and help governments provide
transparent and secure services to citizens.
Despite the hype surrounding blockchain
technology, it is still in its early stages, and
widespread adoption and implementation
will require further development and
integration with existing systems.

MYTHS ABOUT BLOCKCHAIN
1.Myth: Blockchain and Cryptocurrencies are only used for illegal activities.
Reality: While some illegal activities have taken place on the blockchain and
cryptocurrencies, they are also used for many legitimate purposes such as secure records
and peer-to-peer transactions.
2.Myth: Blockchain and Cryptocurrencies are overhyped.
Reality: There is a lot of hype, but the underlying technology has the potential to
revolutionize various industries, and there have already been many successful
applications.
3.Myth: Blockchain and Cryptocurrencies are too complex to understand.
Reality: While there is a learning curve, there are many resources available online that can
help individuals understand the basics of these technologies.
4.Myth: Blockchain and Cryptocurrencies are not scalable or sustainable.
Reality: While there have been some scalability and energy consumption issues,
developers are working on solutions, and there are different types of blockchains that are
more scalable than others. Additionally, efforts are being made to make cryptocurrencies
more energy-efficient.

WHAT IS CRYPTOCURRENCY?
Cryptocurrencies are digital or virtual
currencies that use cryptography to
secure and verify transactions and to
control the creation of new units.
Cryptocurrencies operate independently
of a central bank and use a decentralized
system for recording transactions on a
public ledger called a blockchain.
Cryptocurrencies such as Bitcoin,
Ethereum, and Litecoin are examples of
cryptocurrencies that have gained
popularity in recent years. They are
typically decentralized, meaning that they
are not controlled by any government or
financial institution, and they offer a level
of anonymity and security that traditional
financial systems do not.

MARKET CAP AND
NUMBER OF CRYPTOS
According to one source, there are
currently more than 9,900
cryptocurrencies in the world as of
February 2023. However, this
number may vary depending on the
definition and criteria of what
constitutes a cryptocurrency. The
global crypto market cap is $1.16
trillion as of December 17th, 2021,
which makes it the eighth largest
economy in the world, if you’re
calculating based on gross domestic
product. The top 10 cryptocurrencies
make up 88% of the total market
value3, with Bitcoin being the most
dominant one with a market cap of
$541 billion and a market share of
46.6%.

TOP CRYPTOCURRENCIES
1.Bitcoin (BTC)
2.Ethereum (ETH)
3.Binance Coin
(BNB)
4.Cardano (ADA)
5.XRP (XRP)
6.Solana (SOL)
7.Polkadot (DOT)
8.Dogecoin
(DOGE)
9.USD Coin
(USDC)
10.Terra (LUNA)

TOP EXCHANGE WALLETS
1.Coinbase
2.Binance
3.Kraken
4.Bitfinex
5.Huobi
6.Gemini
7.KuCoin
8.Bitstamp
9.Bittrex
10.Poloniex

WHAT IS CRYPTOGRAPHY
Cryptography is the practice of
securing information by converting it
into a code or cipher that can only be
read by someone who has the key or
password to decode it. The goal of
cryptography is to ensure the
confidentiality, integrity, and
authenticity of data or messages being
transmitted or stored.
There are many techniques and
algorithms used in cryptography,
including symmetric-key encryption,
where the same key is used for both
encryption and decryption, and
asymmetric-key encryption, where
different keys are used for encryption
and decryption. Cryptography is used
in various fields, including computer
science, finance, military, and
government, to protect sensitive data
and communications from

VOLATILITY AND SCALABILITY
Volatility refers to the rapid changes in value
that cryptocurrencies experience. The prices of
cryptocurrencies can fluctuate significantly,
often within a short period, due to various
factors such as market demand, supply, and
speculation. Such volatility makes it
challenging for people to use cryptocurrencies
as a reliable store of value or a medium of
exchange.
Scalability refers to the ability of a
cryptocurrency network to handle a large
number of transactions quickly and efficiently.
Some cryptocurrencies such as Bitcoin and
Ethereum have faced scalability issues due to
their limited processing power, resulting in
slow transaction times and higher fees.
Regulation is another challenge that
cryptocurrencies face, as many countries are
yet to develop clear regulatory frameworks for
cryptocurrencies. This lack of regulation makes
it difficult for businesses to operate in the
cryptocurrency space, leading to uncertainty
and reduced adoption.

PUBLIC & PRIVATE KEYS
Public and private keys are a pair of
cryptographic keys that are used to secure
digital communication, such as encrypting
and decrypting data, verifying digital
signatures, and providing secure access to
online resources.
A public key is available to everyone and can
be used to encrypt data or verify digital
signatures, but cannot be used to decrypt
data. It is often used to establish secure
communication channels, such as in email
encryption or website authentication.
On the other hand, a private key is kept
secret and is used to decrypt data or create
digital signatures. It is typically used to
provide secure access to online resources,
such as online banking or secure file storage.
Public and private keys are often used
together in a process called asymmetric
encryption, where the public key is used to
encrypt data and the private key is used to
decrypt it. This process ensures that data can
be securely transmitted without the risk of
interception or tampering by unauthorized

HOW DO I BUY CRYPTO?
1.Cryptocurrency Exchanges: One of the
most popular ways to buy cryptocurrencies is
through a cryptocurrency exchange. Some
popular cryptocurrency exchanges are
Coinbase, Binance, Kraken, and Bitfinex. You
can sign up for an account and link it to your
bank account or credit card to purchase
cryptocurrencies.
2.Peer-to-Peer (P2P) Platforms: P2P
platforms allow you to buy cryptocurrencies
directly from other people without going
through an exchange. Examples of P2P
platforms include LocalBitcoins and Paxful.
3.Bitcoin ATMs: Bitcoin ATMs allow you to
buy cryptocurrencies using cash. They can
be found in various locations and you can
use them to buy Bitcoin or other
cryptocurrencies.
4.Crypto Debit Cards: Some companies offer
crypto debit cards that allow you to spend
cryptocurrencies like you would with a regular
debit card. These cards can be linked to your
cryptocurrency wallet and can be used at
merchants that accept debit cards.

Crypto mining is the process of verifying transactions on a blockchain network and adding them to the blockchain
ledger, for which miners are rewarded with cryptocurrency. Here are some advantages and disadvantages of crypto
mining:
Advantages:
1.Potential for high profits: Mining can be profitable, particularly when the value of the cryptocurrency being mined
is high.
2.Decentralized system: Cryptocurrency mining is decentralized, meaning that no central authority controls the
process, making it more secure and resistant to hacking.
3.Liquidity: Many cryptocurrencies are easily tradable on exchanges, making it easy to convert earned coins into
other currencies.
4.Supporting the network: By mining, miners help to maintain the blockchain network, which benefits the whole
cryptocurrency community.
Disadvantages:
1.High costs: The initial investment in mining hardware, electricity bills, and maintenance can be high.
2.Energy consumption: The energy required for mining can be substantial and may have a negative impact on the
environment.
3.Technically challenging: Mining can be complicated, and requires technical knowledge and expertise to set up
and operate the necessary equipment.
4.Volatility: The value of cryptocurrencies is notoriously volatile and can change rapidly, which can impact the
profitability of mining.
5.Increasing difficulty: As more people start mining, the competition increases, and the difficulty of the mining
advantages and disadvantages of
crypto mining

In general, most scholars consider cryptocurrency to be halal if it fulfills certain criteria:
• It must not be used for activities prohibited by Islamic law, such as gambling, fraud, money
laundering, or financing terrorism.
• It must not be based on interest, riba, or usury.
• It must not be backed by any haram assets or commodities, such as alcohol, pork, or gold.
• It must have a clear and transparent mechanism for creation, distribution, and verification.
• It must have a stable and reasonable value that is not subject to excessive speculation or
manipulation.
However, some scholars argue that cryptocurrency is haram because:
• It is volatile, risky, and unpredictable, which may lead to gambling and speculation.
• It has no intrinsic value or physical existence, which may contradict the concept of money in Islam.
• It is not regulated or supervised by any authority or government, which may pose legal and ethical
issues.
• It may harm the environment due to its high energy consumption and carbon footprint.
is crypto halal or haram

In conclusion, blockchain and cryptocurrency have
emerged as revolutionary technologies with the potential to
transform various industries and disrupt traditional financial
systems. Blockchain technology, as a decentralized and
immutable ledger, provides a secure and transparent way
to store and transfer data and assets. Cryptocurrency, on
the other hand, allows for borderless and permissionless
transactions without the need for intermediaries.
While blockchain and cryptocurrency are still in their early
stages, their adoption and use cases continue to grow.
They have already demonstrated their potential in
industries such as finance, supply chain management, and
healthcare, among others.
However, as with any new technology, there are challenges
that need to be addressed, such as scalability, regulatory
compliance, and security. As these challenges are
overcome, we can expect to see even more widespread
adoption and innovation in the blockchain and
cryptocurrency space.
Overall, blockchain and cryptocurrency have the potential
to revolutionize the way we conduct transactions and
interact with digital assets, and their impact will only
Conclusion

Blockchain&Crypto.pptx

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