A SeminarReport On

TITLE
Submitted by
Name& Roll No: B 61

In partial fulfillment for the award of the degree of Bachelor

of Technology

IN
Computer Science and Engineering

Pradnya Niketan Education Society, Pune.

NAGESHKARAJAGIORCHIDCOLLEGEOF

ENGGINEERING &TECHNOLOGY
SOLAPUR.
2023-2024

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 PradnyaNiketanEducationSociety,Pune.
NAGESHKARAJAGIORCHIDCOLLEGEOFENGG.&TECH., SOLAPUR.

GutNo.16,Solapur-TuljapurRoad,TaleHipparaga,Solapur–413002 Phone:
(0217) 2735001/02, Fax. (0217) 2735004

Certificate

This is to certify that Mr/MS.._____________________________________ of

class SY RollNo._ Has satisfactorily completed the

Seminar work entitled _________ as prescribed by Dr.Babasaheb Ambedkar

Technological University Lonere, Maharashtra, India in the academic year 2023-24.

Date of Submission:

Seminar Guide Head of Department

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 ABSTRACT

Block chain technology has been described as the biggest technical revolutions in
the Internet. The technology–which is the basis for the cryptocurrency Bitcoin, but
which can be used for much more – enables digital transactions without the use of
intermediaries, which are much faster and also more secure than has previously been
possible. Blockchain technology is expected to change a wide range of business sectors
fundamentally, such as banks and finance, consumer goods, supply chain, automotive,
energy, legal services, etc.

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 TABLE OF CONTENTS

SR. CONTENTS PAGE

NO. NO.
1 INTRODUCTION 6
2 LITERATUREREVIEW 7
3 TECHNOLOGY: 8

 3.1WHYWENEEDBLOCKCHAINTECHNOLOGY?
 3.2WHATISBLOCKCHAINTECHNOLOGY?
 3.3WHYBLOCKCHAINTECHNOLOGYISPOPULAR?
 3.4STRUCTUREANDDESIGNOFBLOCKCHAIN
 3.5HOWDOESBLOCKCHAIN TECHNOLOGYWORK?
 3.6TYPESOFBLOCKCHAIN

4 ADAVANTAGES 15
5 DISADVANTAGES 16
6 APPLICATION 17
7 FUTURESCOPE 18
8 CONCLUSION 19
9 REFERENCES 20

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 ACKNOWLEDGMENT

We are rather infused by the kind guidance of Prof. T.A.Kumasgi who put us in
the Cradle of engineering studies and evaluated us to this end and mean of our project
without her Guidance, we are sure to be an orphan in the vast ocean of the subject.
Ultimately no words could describe the deep sense of cooperation and ready nature to
help us even in minute details of our write-up to this project report.

It is our proud privilege to express deep sense of gratitude to, Dr. B K Sonage,
Principal of N K ORCHID college of Engineering and Technology Solapur. for his
comments and kind permission to complete this project. We remain indebted to Dr.
V.V. Bag, H.O.D., Department of Computer Science and engineering for their timely
suggestion and valuable guidance.

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 INTRODUCTION

Over the past few years, you have consistently heard the term ‘blockchain
technology,’ probably regarding cryptocurrencies, like Bitcoin. In fact, you may be
asking yourself, “what is blockchain technology?” It seems like blockchain is a platitude
but in a hypothetical sense, as there is no real meaning that the layman can understand
easily. It is imperative to answer “what is blockchain technology, “including the
technology that is used, how it works, and how it’s becoming vital in the digital world.

Asblockchain continues to grow and become more user-friendly, the onus is on you
to learn this evolving technology to prepare for the future. If you are new to blockchain,
then this is the right platform to gain solid foundational knowledge. In this article, you
learn how to answer the question, “what is blockchain technology?” You’ll also learn
how blockchain works, why it’s important, and how you can use this field to advance
your career.

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 LITERATUREREVIEW

Blockchain is a new technology with strong implications for the future of how we
exchange information and currency as a globally networked society. It is so new that
there is relatively little academic work done on it, but this is changing quickly. For this
literature review, we have begun by collecting a sample of primarily peer-reviewed
sources, as well as an informative overview of articles from various other channels. Our
selection of articles allows us to provide a representative view of three primary topics.
First, some of the primary current topics being discussed in regard to blockchain
technology. Second, the representative categories of said topics. Third, the potential
future of blockchain development along with its impact on society and technology.

Keywords:Blockchain,Cryptocurrency,Bitcoin

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 TECHNOLOGY

WHY WE NEED BLOCKCHAIN TECHNOLOGY?

Blockchain helps in the verification and traceability of multistep transactions

needing verification and traceability. It can provide secure transactions, reduce
compliance costs, and speed up data transfer processing. Block chain technology can
help contract management and audit the origin of a product.

EX.:-

Imagine A and B Living far away and want to transfer money each other, to

Order to transfer the money they need a Third Party is required(i.e. Banking).

POSSIBLERESULTSAFTERTRANSACTIONTHROUGHTHIRDPARTY

 HighTransactionFee
 NetFrauds
 PoorData Recovery
 TransferLimit

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 WHATISBLOCKCHAINTECHNOLOGY?

Blockchain is a method of recording information that makes it impossible ordifficult

for the system to be changed, hacked, or manipulated. A blockchain is a distributed
ledger that duplicates and distributes transactions across the network of computers
participating in the blockchain.

Blockchain technology is astructure that stores transactional records, also known

as the block, of the public in several databases, known as the “chain,” in a network
connected through peer-to-peer nodes. Typically, this storage is referred to as a ‘digital
ledger.’

Every transaction in this ledger is authorized by the digital signature of the owner,
which authenticates the transaction and safeguards it from tampering. Hence, the
information the digital ledger contains is highly secure.

In simpler words, the digital ledger is like a Google spreadsheet shared among
numerouscomputersinanetwork, in which,the transactional recordsare storedbased on
actual purchases. The fascinating angle is that anybody can see the data, but they can’t
corrupt it.

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 WHYBLOCKCHAINTECHNOLOGYISPOPULAR?

Suppose you are transferring money to your family or friends from your bank
account. You would log in to online banking and transfer the amount to the other
person using their account number. When the transaction is done, your bank updates
the transaction records. It seems simple enough, right? There is a potential issue which
most of us neglect.

These types of transactions can be tampered with very quickly. People who are
familiar with this truth are often wary of using these types of transactions, hence the
evolution of third-party payment applications in recent years.But this vulnerability is
essentially why Blockchain technology was created.

Technologically, Blockchain is a digital ledger that is gaining a lot of attention and

traction recently. But why has it become so popular? Well, let’s dig into it to fathom the
whole concept.

Record keeping of data and transactions are a crucial part of the business. Often,
this information ishandled in house or passed through a third party like brokers,
bankers, or lawyers increasing time, cost, or both on the business. Fortunately,
Blockchain avoids this long process and facilitates the faster movement of the
transaction, thereby saving both time and money.

Most people assume Blockchain and Bitcoin can be used interchangeably, but in
reality, that’s not the case. Blockchain is the technology capable of supporting various
applications related to multiple industries like finance, supply chain, manufacturing,
etc., but Bitcoin is a currency that relies on Blockchain technology to be secure.

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 STRUCTUREANDDESIGNOFBLOCKCHAIN

Ablockchainisadistributed,immutable,anddecentralizedledgeratitscore thatconsists of a
chain of blocks and each block contains a set of data. The blocks are linked together using
cryptographic techniques and form a chronological chain of information. The structure of a
blockchainisdesignedtoensure thesecurityofdatathroughitsconsensus mechanismwhichhas a
network of nodes that agree on the validity of transactions before adding them to the blockchain.

Blocks:
Ablockinablockchainis acombinationofthree main components:

1. Theheadercontainsmetadatasuchasatimestamp whichhasarandomnumberusedin the mining

process and the previous block's hash.

2. Thedatasectioncontainsthemainandactualinformationliketransactionsandsmart contracts
which are stored in the block.

3. Lastly,thehashis auniquecryptographicvaluethatworksasarepresentativeoftheentire block

which is used for verification purposes.

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BlockTime:
Block time refers to the time taken to generate a new block in a blockchain. Different
blockchainshave differentblocktimes,whichcanvaryfromafewsecondstominutesormaybe in hours
too. Shorter block times can give faster transaction confirmations but the result has higher
chances of conflicts but the longer block times may increase the timing for transaction
confirmations but reduce the chances of conflicts.
HardForks:
A hard fork in a blockchain refers to a permanent divergence in the blockchain's history
that results in two separate chains. It can happen due to a fundamental change in the protocol ofa
blockchain and all nodes do not agree on the update. Hard forks can create new cryptocurrencies
or the splitting of existing ones and It requires consensus among the network participants to
resolve.
Decentralization:
Decentralization is the key feature of blockchain technology. In a decentralized
blockchain, there is no single central authority that can control the network. In
decentralization,the decision-making power is distributed among a network of nodes that
collectively validate and agree on the transactions to be added to the blockchain. This
decentralized natureof blockchain technology helps topromotetransparency, trust,and security. It
also reduces the risk to rely on a single point of failure and minimizes the risks of data
manipulation.
Finality:
Finalityreferstotheirreversibleconfirmationoftransactionsinablockchain.If andwhen a
transaction is added to a block and the block is confirmed by the network, it becomes immutable
and cannot be reversed. This feature ensures the integrity of the data and prevents double
spending, providing a high level of security and trust in Blockchain Types &Sustainability
Openness:
Opennessinblockchaintechnologymakestheblockchainaccessibletoanyonewhointends to
participate in the network. This implies that it is open for all and anyone can join the network,
validate transactions, and can add new blocks to the blockchain, so long as they know the
consensus rules. Openness promotes inclusivity, transparency,and innovation, as it allowsfor
participation from various stakeholders.
PublicBlockchain:

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 HOWDOESBLOCKCHAINTECHNOLOGY WORK?

In recent years, you may have noticed many businesses around the world integrating
Blockchain technology. But how exactly does Blockchain technology work? Is this a significant
change or a simple addition? The advancements of Blockchain are still young and have the
potential to be revolutionary in the future; so, let’s begin demystifying this technology.

Blockchainisacombinationofthree leadingtechnologies:

Cryptographickeys:

A peer-to-peer network containing a shared ledger means of computing, to store the

transactions and records of the network. Cryptography keys consist of two keys – Private
keyandPublickey. Thesekeys helpinperformingsuccessfultransactionsbetweentwoparties.Each
individualhas these two keys, which they use to produce a secure digital identityreference. This
secured identity is the most important aspect of Blockchain technology. In the world of
cryptocurrency, this identity is referred to as ‘digital signature’ and is used for authorizing and
controlling transactions.
The digital signature is merged with the peer-to-peer network; a large number of individuals
who act as authorities use the digital signature in order to reach a consensus on transactions,
among other issues. When they authorize a deal, it is certified by a mathematical verification,
which results in a successful secured transaction between the two network-connected parties. So
to sum it up, Blockchain users employ cryptography keys to perform different types of digital
interactions over the peer-to-peer network.

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 TYPESOFBLOCKCHAIN

Therearedifferenttypesofblockchains.Theyareasfollows:

PrivateBlockchainNetworks
Private blockchains operate on closed networks, and tend to work well for private
businesses and organizations. Companies can use private blockchains to customize their
accessibility and authorization preferences, parameters to the network, and other important
security options. Only one authority manages a private blockchain network.

PublicBlockchainNetworks
Bitcoin and other cryptocurrencies originated from public blockchains, which also playeda
role in popularizing distributed ledger technology (DLT). Public blockchains also help to
eliminate certain challenges and issues, such as security flaws and centralization. With DLT,data
is distributed across a peer-to-peer network, rather than being stored in a single location. A
consensus algorithm is used for verifying information authenticity; proof of stake (PoS) and
proof of work (PoW) are two frequently used consensus methods.

PermissionedBlockchainNetworks
Also sometimes known as hybrid blockchains, permissioned blockchain networks are
private blockchains that allow special access for authorized individuals. Organizations typically
set up these types of blockchains to get the best of both worlds, and it enables better structure
when assigning who can participate in the network and in what transactions.

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 ADVANTAGES

HighlySecure
It uses a digital signature feature to conduct fraud-free transactions making it
impossibletocorruptorchangethedataofanindividualbytheotherusers withoutaspecific
digital signature.

DecentralizedSystem
Conventionally, you need the approval of regulatory authorities like a government or
bank for transactions; however, with Blockchain, transactions are done with the mutual
consensus of users resulting in smoother, safer, and faster transactions.

AutomationCapability
It is programmable and can generate systematic actions, events, and payments
automatically when the criteria of the trigger are met.

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 DISADVANTAGES

1. Private keys
The blockchain network maintains its high level of security through private keys. It comes
inhandywhenyouvalidateablockchainaddress.Moreover,whenyouopenacryptowallet,you get a
private key. It is a password that allows you to withdraw funds from your wallet.

2. Possibilityofdisruptionofnetworksecurity
Blockchain technology is known worldwide for its top-notch security. However, there is a
chink in its armour that you should know of. The validation process in a blockchain is done
through miners having a lot of computing power. If you are a miner with enough computing
power tocontrolmorethan50%of ablockchain'smininghashrate,youcanlauncha51%attack.

3. Highcostsofimplementation
It costs a lot of money to implement blockchain in a company. This capital-intensive
investment deters most companies from adopting this technology.

4. Inefficientminingprocess
Each block in a blockchain is mined through a mechanism called Proof-of-Work. Each
miner needs a high-powered computer to compete in the mining process. Many miners may
compete to mine a block; only one gets the block rewards. There is a massive waste of energy
and resources.

5. Environmentalimpacts
Mining, minting and validating transactions require high-powered systems to run 24/7.
Apart from heavy investments, these processes require a lot of power. This can lead to serious
environmental consequences.
Due to disproportionate environmental impacts,China has banned blockchain mining inits
Inner Mongolia region.

6. Storageproblems
Onablockchain,alltheinformationissharedacrossdifferentnodesonthenetwork.In this respect,
all the data on a particular blockchain is stored on the hard drive of a miner's system.

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 APPLICATIONS

BlockchainSecurity
According to AARP, Americans lost up to $8.8 billion due to investment scams and fraudin
2022. Fraud on this scale can occur via everything from forged documents to hacking into
personal files.

By keeping social security numbers, birth certificates, birth dates and other sensitive
information on a decentralized blockchain ledger, the government could see a drastic drop in
identity theft claims. Here are a few blockchain-based enterprises at the forefront of identity
security.

BlockchainandIoT
The Internet of Things (IoT) is the next logical boom in blockchain applications. IoT has
millions of applications and many safety concerns, and an increase in IoT products means better
chances for hackers to steal your data on everything from an Amazon Alexa to a smart
thermostat.

Blockchain-infusedIoTaddsahigherlevelofsecuritytopreventdata breachesbyutilizing
transparency and virtual incorruptibility of the technology to keep things “smart.” Below are a
few companies using blockchain to make the Internet of Things safer and smarter.

Google
Google provides solutions for Web3 businesses and ecosystems such as its Blockchain
Node Engine, which can streamline smart contracts and reduce blockchain DevOps needs.
Blockchain Node Engine allows users to fully manage blockchain nodes, quickly relay
transactions and deploy smart contracts under support of the Google Cloud network.

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 FUTURESCOPE

Blockchain technology has become a buzzword in recent times. At the core of

cryptocurrency lies the blockchain technology. Today, various industries leverage
technology for diverse purposes. Are you still wondering what blockchain is? Well, it is
an immutable and secure digital ledger that records transactions permanently and
verifiably.

The global market size of blockchain was USD 4.67 billion in 2021. It is expectedto
reach USD 163.83 billion by the year 2029. That shows the rapid growth of the
technology over the years. In this article, you will get to know about the blockchain
future and its future market. Let us dive in!

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 CONCLUSION

Blockchain technology is revolutionary. It will make life simpler and safer,

changing the way personal information is stored and how transactions for good and
services are made. Blockchain technology creates a permanent and immutable record
of every transaction. This impenetrable digital ledger makes fraud, hacking, data theft,
and information loss impossible. The technology will affect every industry in the world,
including manufacturing, retail, transportation, healthcare, and real estate Companies
as Google, IBM, Microsoft, American Express, Walmart, Nestle, Chase, Intel, Hitachi, and
Dole are all working to become early adopters of blockchain. Nearly $400 trillion across
various industries is set to be transformed by blockchain.

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 REFERENCES

Rijmenam (2018) Why blockchain is quickly becoming the gold standard for supply
chain.November21.RetrievedApril18,2019,fromhttps://vanrijmenam.nl/blockchain-
becoming-gold-standard-supply-chains/?
utm_source=datafloq&utm_medium=ref&utm_campaign=datafloq

SIMPLILEARN

https://www.simplilearn.com/?
utm_source=google&utm_medium=cpc&utm_term=simplilearn&utm_content=8029
77548-41114892706-467574577811&utm_device=c&utm_campaign=Search-Brand-
Exact-IN-AllDevice-adgroup-Brand-
simplilearn&gad_source=1&gclid=CjwKCAiAgeeqBhBAEiwAoDDhnx5L60EFxVKaciYoJg
UhnHtqLcO7bgjov2mFJRfd4iwX5JBcIkwTEBoCv5QQAvD_BwE

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