International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Volume: 05 Issue: 03 | Mar-2018 www.irjet.net p-ISSN: 2395-0072

Blockchain Technology
Mrs. Vrushali Khandare

Lecturer, Dept. of Computer Engineering, V.P.M’s Polytechnic, Thane, Maharashtra

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Abstract - Blockchain is a rising innovation for decentralized 2. BLOCKCHAIN TECHNOLOGY
and value-based information sharing over a vast system of
untrusted members This paper talks about to create an Blockchain (BC) is a distributed database that maintains a
understanding of the blockchain technology and how it is growing list of blocks that are chained to each other. BC was
different from the currently used centralized transactions first proposed by Satoshi Nakamoto as the underlying
systems. It additionally talks about how blockchain technology behind Bitcoin. BC has been shown to possess a
innovation can be utilized as a part of some business forms in number of salient features including security, immutability
the retail area to profit the clients and the retailers as it were. and privacy and could thus be a useful technology to
The paper also describes the advantages of block chain and address the aforementioned challenges.
various evaluation techniques.
The structure of BC is shown in Figure 1. BC is managed
Key Words: Blockchain technology, Bit Coin, Block distributedly by a peer to peer network. Each node is
Chain Evaluation, Decentralised Ledger, data mining. identified using a Public Key (PK). All communications
between nodes, known as transactions, are encrypted using
1. INTRODUCTION PKs and broadcast to the entire network. Every node can
verify a transaction, by validating the signature of the
The interest in Block chain technology has been increasing, transaction generator against their PK. This ensures that BC
since the idea was coined in 2008. A blockchain is a can achieve trustless consensus, meaning that an agreement
decentralized ledger of all transactions in a network. Using between nodes can be achieved without a central trust
blockchain technology, participants in the network can broker, e.g. Certificate Authority (CA). A node will
confirm transactions without the need for a trusted third periodically collect multiple transactions from its pool of
party intermediary. Powerful applications include fund pending transactions to form a block, which is broadcast to
transfers, voting, and many other uses. A blockchain is the entire network. The block is appended to the local copy
defined as a public space including all Bitcoin transactions of the BC stored at a node if all constituent transactions are
that have been made until the current transaction or the last valid. A consensus algorithm such as Proof of Work (PoW),
transaction. As finished blocks are enclosed to it as and which involves solving a hard to-solve easy-to-verify puzzle,
when the transactions are complete, the blockchain is is employed to control which nodes can participate in the
becoming bigger and bigger. These blocks are coming into BC. Once a block is appended, it (or the constituent
the blockchain following a chronological order, in a linear transactions) cannot be modified, since the hash of each
way. The computers which are part of the Bitcoin network block is contained in the subsequent block in the chain,
are called nodes. All of these nodes receive a copy of the which ensures immutability. A node can change its PK (i.e.
blockchain, this taking place automatically when a client identity) after each transaction to ensure anonymity and
joins the Bitcoin network. There is a lot of information privacy.
included in the blockchain, for example the addresses and
their balances from the beginning until the newest Blockchain is of two kinds, permissioned and
completed block unpermissioned.
.
1.1 Bitcoin concept Permissioned ones work the very same way, yet are fit for
limiting who in the system can approve the exchanges. A
blockchain encourages secured online exchanges using
Bitcoin is a Peer-To-Peer Electronic Cash System . Bitcoin is
cryptography by making cryptographic key combine with a
digital money that is not issued or controlled by anyone. It is
wallet programming.
used to securely store and transfer any amount of value
anywhere in the world. It is used to buy goods and services,
Unpermissioned one uses open dispersed record innovation
store wealth, or send value to anyone without the permission
that implies the data isn't claimed by any one individual or
a cryptocurrency and worldwide payment system. The word
database, rather it is shared crosswise over different PCs in
cryptocurrency is the label that is used to define all
the system. Anybody can join the system and view those
networks and mediums of exchange, uses cryptography to
exchange records. Once an exchange is recorded, the
secure transactions; against those systems where the
information put away is time stamped, with the goal that it
transactions are channeled through a centralized trusted
can't be erased or refreshed further. The ensuing
organization or entity.
augmentations to the record or new records are followed

© 2018, IRJET | Impact Factor value: 6.171 | ISO 9001:2008 Certified Journal | Page 1781
 International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056
Volume: 05 Issue: 03 | Mar-2018 www.irjet.net p-ISSN: 2395-0072

and refreshed continuously for everybody with the and quantitative data about blockchains. BTCJam offers
entrance. Because of its circulated nature blockchain is hard loans based on bitcoins.. All kinds of financial institutions
to hack as every one of the duplicates are situated at better are interested more and more in the blockchain technology
places. and only Santander Bank has found around 25 cases to be
used with this technology. This bank made an ample
research and found that using blockchain by banks might
reduce costs in infrastructure by up to $20 billion a year.
UBS Bank have organized a research lab around blockchain
in London. Goldman Sachs developed an investment in
Circle, which is a Bitcoin startup. Also, NASDAQ does
thorough research regarding this technology. This
technology is most important because it allows people to
perform transactions even if they’re strangers, but in a fully
transparent way. No mediator exists between the two
entities of a transaction and in this way the whole process is
performed not only easier, but also cheaper. This type of
concept can be used in digital applications in the world,
making transactions and exchanges secure.

4. CONCLUSIONS

It is a decentralized environment for transactions, where all

the transactions are recorded to a public ledger, which will
be visible to everyone. BlockChain helps by removing the
involvement of third parties in any transaction. It can be
Fig -1 : Working of blockchain implemented in the financial sector to avoid fraudulent
activities. Blockchain technology runs the Bitcoin
3. BLOCK CHAIN IN FINANCIAL SERVICES cryptocurrency. The goal of Blockchain is to provide
anonymity, security, privacy, and transparency to all its
Blockchain technology enables people to perform users. Despite, these attributes set up a lot of technical
transactions in a fully transparent way. No one mediates this challenges and limitations that need to be addressed.
transaction and therefore this entire technology makes
things easier and much cheaper. There are numerous 5. REFERENCES
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