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Blockchain: Presented By: Zara Bashir - 2264

This document provides an overview of blockchain technology. It discusses that blockchain is a distributed database or digital ledger of transactions that is duplicated and shared across a network of computers. The key components of blockchain include nodes, transactions, blocks, and chains. It also describes the working of blockchain, including how transactions are validated and added to the chain through hashing and mining processes. Advantages include decentralization, immutability, and no double spending, while disadvantages include complexity, speed limitations, resource usage, and privacy issues. Applications discussed include healthcare records, documents like passports, and personal identification.

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zara bashir
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58 views31 pages

Blockchain: Presented By: Zara Bashir - 2264

This document provides an overview of blockchain technology. It discusses that blockchain is a distributed database or digital ledger of transactions that is duplicated and shared across a network of computers. The key components of blockchain include nodes, transactions, blocks, and chains. It also describes the working of blockchain, including how transactions are validated and added to the chain through hashing and mining processes. Advantages include decentralization, immutability, and no double spending, while disadvantages include complexity, speed limitations, resource usage, and privacy issues. Applications discussed include healthcare records, documents like passports, and personal identification.

Uploaded by

zara bashir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 31

BLOCKCHAIN

Presented by: Zara Bashir || 2264.


AGENDA

• Introduction
• Objective of Blockchain
• Types of Blockchain
• Components of Blockchain
• Architecture of Blockchain
• Working of Blockchain
• Hashing
• Miners
AGENDA

• Consensus
• Proof of Work
• Merkle Tree
• Why Blockchain?
• Hacking of Blockchain
• Advantages of Blockchain
• Disadvantages of Blockchain
• Applications
INTRODUCTION
• Discovered in 1991, by a group of researchers.

• Became famous in 2008 when Satoshi Nakamoto used it to serve as the public
transaction ledger of the cryptocurrency bitcoin.

• Blockchain is basically a database. It solve issues based on data.

• Different blockchains have different set of data.

• Blockchain is essentially a chain consisting of many blocks .


OBJECTIVE OF BLOCKCHAIN
 No third party.
 Data should remain untampered.

TRANSACTIONS RECORD
TYPES OF BLOCKCHAIN
• There are 4 types of Blockchain that are Public Blockchain, Private Blockchain,
Consortium Blockchain and Hybrid Blockchain. But most commonly discussed
are:
COMPONENTS OF BLOCKCHAIN

 Core components of Blockchain are:


1. Node.
2. Transaction.
3. Block (data, previous hash, current hash).
4. Chain.
COMPONENTS OF BLOCKCHAIN
• Node:
1. User or Computer within Blockchain.
2. It has 2 types; Full node and Partial node.
3. Full node: Verify block and store the blockchain.
4. Partial node: Application in mobile phone and use for wallet purpose.
COMPONENTS OF BLOCKCHAIN
• Block:
It is used for keeping a set of transactions which is distributed to all nodes in the
network.
Block contains:
Data; which has 3 parts; From, To and Money info.
Block header; to differentiate between each block.
COMPONENTS OF BLOCKCHAIN
• Transaction: Smallest building block of Blockchain system.

• Chain: A sequence of blocks in specific manner.


ARCHITECTURE OF BLOCKCHAIN
ARCHITECTURE OF BLOCKCHAIN
• Each blockchain contains its own data.
• Each block is cryptographically linked to its neighbors using hash values.
• Cryptographical links make it impossible to change data in blocks.
• Small change in one block requires change in all other blocks which is not
possible.
WORKING OF BLOCKCHAIN
• Someone will request a transaction of some kind of data exchange.

• Request is shared on peer-to-peer network made up of multiple nodes.

• The network of participating nodes validates the transaction using the


algorithm.

• After the transaction has been verified by the network, a new digital block of
data is created.
WORKING OF BLOCKCHAIN
• A digital block is build on digital ledger.

• That’s how transaction completed and data has been transferred to its new
owner and stored on blockchain.
WORKING OF BLOCKCHAIN
HASHING
• Hash function takes input of arbitrary length and convert it into fixed length.
Output length changes are based on algorithm used. Example: SHA-256.
• If certain algorithm is used, hash value is same for same input.
• A certain change in input can change the hash value.
• Reverse is not possible; can’t get back data from hash value.
• Hashing is not encryption.
MINERS
• Miners validate new transactions and record them on the global ledger.

• Miners compete to solve a difficult mathematical problem based on a


cryptographic hash algorithm.

• The solution found is called the Proof-Of-Work.


CONSENSUS
• Using consensus algorithm we can actually agree on one particular state of
blockchain in entire network. There are several consensus algorithms POW,
POS, POD etc.

1
(node 4)
PROOF OF WORK (POW)

• Original consensus algorithm.

• It is used to confirm transactions and produce new blocks to the chain.

• With PoW, miners compete against each other to complete transactions on


the network and get rewarded.
MERKLE TREE

Block Block Block Block


Hash value Hash value Hash value Hash value

Transactions Transactions Transactions Transactions


Transaction1 Transaction1 Transaction1 Transaction1
Transaction2 Transaction2 Transaction2 Transaction2
. . . .
. . . .
. . . .
. . . .
Transaction n Transaction n Transaction n Transaction n
MERKLE TREE
MERKLE TREE
• Example: Block having 10 transactions
WHY Blockchain ?
BLOCKCHAIN IS FAMOUS
BECAUSE OF:
• Decentralized power
• Public ledger
• Immutable to hacks
• No double spending
BLOCKCHAIN CAN BE
HACKED OR NOT?
MULTIPLE COPIES OF LEDGER
• There is no master and salve in blockchain.
• All nodes have same copies of ledgers.
MULTIPLE COPIES OF LEDGER
• Let one more transaction takes place.

1234
MULTIPLE COPIES OF LEDGER
• Now you can see the hash value of third one is changed.

• Now what blockchain can do is, It can consider it as faulty transaction.


Cancel whole chain.

• It can copy the one or third chain in place of second one.

• That’s how it provides security.


ADVANTAGES OF BLOCKCHAIN
• The blockchain technology allows for verification without having to be
dependent on third-parties.
• The data structure in a blockchain is append-only. So, the data cannot be
altered or deleted.
• It uses protected cryptography to secure the data ledgers.
• The transactions are recorded in chronological order. Thus, all the blocks in
the blockchain are time stamped.
• Immutable to hacks.
• Various consensus protocols are needed to validate the entry, it removes the
risk of duplicate entry or fraud.
DRAWBACKS OF BLOCKCHAIN
 Four major drawbacks are:
1. Blockchain is complex. We must know about a lot of mechanisms and
terminologies to understand it.
2. Blockchain is slow. This technology promises that they will replace banks
but VISA do almost 1000/transactions per second but bitcoin hardly do 7 to
8 transactions per second.
3. Wastage of Resources. In it a lot of miners are solving a same problem.
4. Privacy. Let’s talk about bitcoin, the blockchain is available for everyone.
Let I am sending 10 bitcoins to my sister. They don’t see our names as they
only see the address and amount but let if you are storing some confidential
data of company in this case everyone can view your data.
APPLICATIONS
 Few applications are,
 Blockchain Healthcare
 Passports
 Birth, wedding, and death certificates
 Personal Identification
 Public value/ community

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