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ETI Microproject

Blockchain is a decentralized, immutable ledger technology that enhances transaction security and accountability, while cryptocurrency serves as a digital medium of exchange. The technology has potential applications in various sectors including smart contracts, supply chain management, and personal identification, offering advantages like transparency and cost reduction. However, challenges such as scalability and regulatory uncertainty must be addressed for broader adoption.

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33 views4 pages

ETI Microproject

Blockchain is a decentralized, immutable ledger technology that enhances transaction security and accountability, while cryptocurrency serves as a digital medium of exchange. The technology has potential applications in various sectors including smart contracts, supply chain management, and personal identification, offering advantages like transparency and cost reduction. However, challenges such as scalability and regulatory uncertainty must be addressed for broader adoption.

Uploaded by

samruddhi.santosh.gaikwad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Blockchain Application

Using cryptocurrency

 Introduction:

What is Blockchain?
Blockchain is a shared immutable ledger that facilitates the process of recording
transactions and tracking assets across a business network. Anything of value can
be tracked and traded on the Blockchain network. A Blockchain is a distributed
database, which is shared over a computer network. Blockchain stores information
electronically in a digital format to make transactions secure.Blockchain is a new
technology, which is known as Distributed Ledger Technology (DLT). With the help
of Blockchain technology, currency as well as anything can be converted into digital
format and stored. Actually it is an exchange process, which works on data blocks.
In this, one block is connected to another block. These blocks cannot be hacked.
Blockchain technology aims to keep documents digitally secure. You can take
Google Doc as an example to understand Blockchain technology. When we create a
document and share it with a group of people, the document is distributed instead
of copied or transferred. But, Blockchain is more complex than Google Doc. Simply
put, Blockchain is known as Distributed Ledger Technology, which makes any digital
asset immutable and transparent through the use of decentralization.

What is cryptocurrency?
Cryptocurrency serves as a medium of exchange, a store of value, and a unit of measure. While
cryptocurrencies have little inherent value, they are used to price the value of other assets.
Bitcoin is a cryptocurrency (means of payment) but it can bee seen as a speculative
commodity (how much is it trading for), it was launched in 2009 and it is widely considered the
first digital asset. Digital assets, also known as crypto assets, are digital representations of
value made possible by cryptography and blockchain. Their original intent was to serve as a
vehicle for transferring value without the use of a bank or other trusted third-party entity.
Cryptoassets (digital assets) are categorized into three main types: cryptocurrencies, crypto
commodities, and crypto tokens. One emerging discussion is the concept of stablecoins,
cryptocurrencies pegged to a stable asset like the U.S. dollar and may become a critical
component in decentralized finance (DeFi).

 Need of Blockchain Technology:


The blockchain is a mechanism to bring everyone to the highest degree of accountability. No
more missed transactions, human or machine errors, or an exchange that was not done with the
consent of the parties involved.The most critical area where Blockchain helps is to guarantee
the validity of a transaction by recording it not only on the main register but a connected
distributed system of registers, all of which are connected through a secure validation
mechanism.

Blockchain technology can find applications in the following areas in the future:

 Smart contracts – Any industry heavily reliant on contracts, such as insurance, financial
institutions, real estate, construction, entertainment, and law, would benefit from
blockchain’s indisputable way of updating, managing, tracking, and securing contracts.
Smart contracts, those that are embedded with if/then statements and are executed
without the involvement of an intermediary, also use blockchain technology.
 Supply chain management – Whenever value changes hands or the status of an asset
changes, blockchain is ideally suited for managing the process.
 Asset protection – Whether you’re a musician who wants to ensure you get royalties
when your music gets played or a property owner, blockchain technology can help you
protect your assets by creating an indisputable record of real-time ownership.
 Personal Identification – Governments manage vast amounts of personal data from
birth and death records to marriage certificates, passports, and census data. Blockchain
technology offers a streamlined solution for managing all of it securely.
 Payment processing – Blockchain has the potential to be highly transformative to any
company that processes payments. It can eliminate the need for intermediaries that are
common in payment processing today.
 Crowdfunding – As with traditional crowdfunding, a blockchain-
powered crowdfunding campaign seeks to secure investment for a new project from an
interested community. But in this instance, funding is most likely to come in the form of
bitcoin or other cryptocurrencies.
 Applications:

1. Real Estate
2. Internet of things
3. Healthcare
4. Decentralization
5. Capital markets
6. Finance
7. Voting
8. Insurance
9. Media
10. Government

 Advantages:

1. Decentralization
2. Transparency
3. Faster Transaction
4. Cost Reduction
5. Security

 Disadvantages:

1. Limited Space
2. Scalability
3. Volatility
4. Energy Consumption
5. Private Keys

 Conclusion:

The integration of blockchain technology cryptocurrency has revolutionized the financial


landscape, offering decentralized, transparent, and secure alternatives to traditional systems.
Blockchain provides a tamper-proof ledger, ensuring the integrity of transactions, while
cryptocurrencies, such as Bitcoin and Ethereum, offer a digital means of exchange free from
central authority control. This combination not only facilitates peer-to-peer transactions but
also creates opportunities for new business models and financial innovations.However,
challenges such as regulatory uncertainty, scalability issues, and energy consumption must be
addressed for blockchain and cryptocurrency to reach their full potential. Despite these
obstacles, ongoing advancements in blockchain technology, including improvements in
consensus mechanisms and interoperability, are likely to pave the way for broader adoption
in various sectors.

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