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Blockchain Technology (Distributed Ledger Technology)

Blockchain technology involves storing encrypted transaction data in distributed blocks that are chained together chronologically. It provides a secure, decentralized record of transactions. Key elements include blocks that bundle transactions, miners who verify transactions, and nodes that maintain copies of the blockchain. Blockchain offers advantages like improved accuracy, reduced costs, and security without centralized control. However, it also faces limitations regarding awareness, technical talent, immutability, key management, scalability, and achieving consensus across the decentralized network.

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Vivek Kavta
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292 views

Blockchain Technology (Distributed Ledger Technology)

Blockchain technology involves storing encrypted transaction data in distributed blocks that are chained together chronologically. It provides a secure, decentralized record of transactions. Key elements include blocks that bundle transactions, miners who verify transactions, and nodes that maintain copies of the blockchain. Blockchain offers advantages like improved accuracy, reduced costs, and security without centralized control. However, it also faces limitations regarding awareness, technical talent, immutability, key management, scalability, and achieving consensus across the decentralized network.

Uploaded by

Vivek Kavta
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 TECHNOLOGY (DISTRIBUTED LEDGER TECHNOLOGY)

 A Blockchain is a database that stores encrypted blocks of data then chains them
together to form a chronological single-source-of-truth for the data.
 Blockchain is a type of distributed ledger for maintaining a permanent and tamper-proof
record of transactional data.
 Blockchain is a peer-to-peer decentralized network built on the basis of the internet. A
secure, shared, distributed and decentralized ledger used to execute transactions.

BLOCK CHAIN TERMINOLGIES

 BLOCKS
 Bundle of Transactions.
 All blocks are linked using their hash.
 Data can’t be changed in one block without breaking the chain.
 In a Blockchain every block has its own unique nonce and hash.

 MINERS
 Mining is the process by which transactions are verified and added to a blockchain.

 NODES
 A node is a client, which owns the block.
 Nodes can be any kind of electronic device that maintains copies of the blockchain and
keeps the network functioning. 

ADVANTAGES AND DISADVANTAGES OF BLOCK CHAIN


 ADVANTAGES
 Improved accuracy by removing human involvement in verification
 Cost reductions by eliminating third-party verification
 Once a transaction is confirmed, it is stored on the ledger and protected using
cryptography.
 Decentralization makes it harder to tamper with
 Transactions are secure, private, and efficient
 Transparent technology
 No Government Interference
 Faster transaction settlements
 DISADVANTAGES
 Significant technology cost associated with mining bitcoin
 Low transactions per second
 History of use in illicit activities
 Regulation
 Power use
 It opens up possibilities for money laundering 

WHY WE NEED BLOCKCHAIN


 Bring Trust: To establish trust between ourselves, we depend on individual third parties
such as banks, land registries, government etc.
 Decentralization: Chances of error, mistakes and corruption can happen in centralized
control systems.
 Remove Middle Man: They always comes with somewhat risk and cost.
INDUSTRY APPLICATION AND USE OF BLOCKCHAIN
 BANKING AND FINANCE
 By integrating blockchain into banks, consumers can see their transactions
processed in as little as 10 minutes.
 With blockchain, banks also have the opportunity to exchange funds between
institutions more quickly and securely.
 Blockchain technology also stands to eliminate expensive intermediary fees that
have burdened both individuals and businesses, especially when it comes to
remittances.

 CURRENCY
 The U.S. dollar is controlled by the Federal Reserve (Central Authority System). If
a user’s bank is hacked, the client’s private information is at risk. 
 Blockchain allows Bitcoin and other cryptocurrencies to operate without the
need for a central authority.
 This not only reduces risk but also eliminates many of the processing and
transaction fees.

 HEALTHCARE
 Health care providers can leverage blockchain to store their patients’ medical
records. 
 These personal health records could be encoded and stored on the blockchain
with a private key, so that they are only accessible by certain individuals, thereby
ensuring privacy.

 SUPPLY CHAIN MANAGEMENT


 In the IBM Food Trust, suppliers can use blockchain to record the origins of
materials that they have purchased. This would allow companies to verify the
authenticity of their products.
 Blockchain allows for real-time tracking and viewing accurate, tamper-proof data
automatically tracked by GPS and IoT devices. 

 REAL ESTATE
 If property ownership is stored and verified on the blockchain, owners can trust
that their deed is accurate and permanently recorded.
 Real Estate can benefit from blockchain solutions by enabling purchase of
property via digital currency. 
 VOTING
 Block chain could be used to facilitate a modern voting system that eliminate
election fraud and boost voter turnout.

 GOVERNMENT & E-GOVERNANCE


 Blockchain software can help in creating full scale eGovernance ecosystems by
providing verified IDs registered on the network.
 Such systems could help citizens vote, pay taxes and perform other government-
related transactions with increased privacy and security.

LIMITATION OF BLOCKCHAIN TECHNOLOGY


 LACK OF AWARENESS
How people could implement it in different situations.

 LIMITED AVAILABILITY OF TECHNICAL TALENT


There are not so many developers available who have specialized expertise in
blockchain technology. 

 IMMUTABLE
In immutable, we cannot make any modifications to any of the records.

 KEY MANAGEMENT
As we know, block chain is built on cryptography, which implies that there are
different keys, such as public keys and private keys.

 SCALABILITY
 Bitcoin was not developed to do the large scale volumes of transactions.
 Currently, Bitcoin can process a maximum of seven transactions per second.

 CONSENSUS MECHANISM
 In the block chain, we know that a block can be created in every 10 minutes.
 It is because every transaction made must ensure that every block in the block
chain network must reach a common consensus. 

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