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    What Is Blockchain

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    marciocoutinho
    Blockchain is a distributed database that records transactions in digitally signed blocks linked together in a chain. It exists across multiple computers and does not rely on a central authority. A blockchain tracks digital assets on a peer-to-peer network, providing a decentralized record that is difficult to modify. Analogies compare it to a traditional ledger or book where each new page/block builds upon the previous ones in an immutable chain.

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    What Is Blockchain

    Uploaded by

    marciocoutinho
    27 views8 pages
    Blockchain is a distributed database that records transactions in digitally signed blocks linked together in a chain. It exists across multiple computers and does not rely on a central authority. A blockchain tracks digital assets on a peer-to-peer network, providing a decentralized record that is difficult to modify. Analogies compare it to a traditional ledger or book where each new page/block builds upon the previous ones in an immutable chain.

    Original Title

    02. What is Blockchain_

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    Blockchain is a distributed database that records transactions in digitally signed blocks linked together in a chain. It exists across multiple computers and does not rely on a central authority. A blockchain tracks digital assets on a peer-to-peer network, providing a decentralized record that is difficult to modify. Analogies compare it to a traditional ledger or book where each new page/block builds upon the previous ones in an immutable chain.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    27 views8 pages

    What Is Blockchain

    Uploaded by

    marciocoutinho
    Blockchain is a distributed database that records transactions in digitally signed blocks linked together in a chain. It exists across multiple computers and does not rely on a central authority. A blockchain tracks digital assets on a peer-to-peer network, providing a decentralized record that is difficult to modify. Analogies compare it to a traditional ledger or book where each new page/block builds upon the previous ones in an immutable chain.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    What is Blockchain?

    1
    What is Blockchain?
    ● Blockchain is a distributed database existing on various computers at the same time.
    ● A decentralized ledger tracking digital assets on P2P network.
    ● Some analogies for Blockchain.

    Any real life example?

    ❖ Records your sale & purchase of raw material


    ❖ Even your bank account statements
    ❖ An excel sheet tracking all hospital equipments
    ❖ Simply a large sized book

    2
    Book Analogy
    Imagine it as a traditional book based ledger, where each page refers to a block connected to the
    previous page through a page number
    Book = Blockchain, Page = Block, an entry in page = blockchain transaction
    Easy to detect if a page/block has been removed or deleted
    Easy to arrange the pages/blocks & identify suspicious activity. That’s why page numbers are important in
    a ledger.
    Since the pages/blocks are built tightly on top of each other it is impossible to tamper a previous entry in
    the ledger without someone noticing it.

    3
    Peek Inside Blockchain

    4
    More on Blockchain
    ● In case of a real Blockchain, each block is built on top of the new block using the previous block’s
    content/signature + Nonce (random string).
    ● Building a block & adding it in the Blockchain is a task of miner nodes (optional).
    ● In public Blockchain, it is made computationally difficult to add a block to prevent attacks.
    ● Miners try to guess a number (nonce) in such a way that if it gets crunched with the most recent
    block’s fingerprint, then it will create a new fingerprint for the Block.
    ● It takes time & computational power to add a Block in the Blockchain. Hence there is a reward (12.5
    BTC in case of Bitcoin Blockchain, 5 ETH in Ethereum)
    ● Private Blockchains can choose other methods to add a block as they can trust the miners using a
    contract etc.

    5
    Make you own Definition for Blockchain
    Let's build our definition
    ● It’s a decentralised database which stores information in the form of transactions
    ● It can be public or private
    ● Stored data is immutable
    ● Highly secure
    ● Data gets recorded via consensus-based algorithms
    ● Uses cryptography
    ● Generally, exists over a peer-to-peer network

    So here is our definition:


    “Blockchain is a consensus-based secure decentralised public/private database which stores
    information immutably over a peer-to-peer network”.

    6
    Summary
    ● It is a decentralised distributed ledger (data structure) where data is being stored inside blocks in the
    form of transactions.
    ● Removes the dependency on a trusted third party for recording the data in blocks.
    ● In public Blockchains, more complex algorithms are required to avoid malicious activities.
    ● Since each block is built on top of the previous block, the immutability has been achieved.
    ● Here immutability means, it is difficult to fake/alter a block & very easy to detect the tampering.
    ● This all exists in the memory of the computers and runs as a computer process.
    ● Every participant in Blockchain contains an almost same copy of the Blockchain ledger.

    7
    THANK YOU!
    Any questions?
    You can mail us at
    [email protected]

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