UNIT II BITCOIN AND CRYPTOCURRENCY

What is Bitcoin, The Bitcoin Network, The Bitcoin Mining Process, Mining
Developments, Bitcoin Wallets, Decentralization and Hard Forks, Ethereum Virtual
Machine (EVM), Merkle Tree, Double- Spend Problem, Blockchain and Digital
Currency, Transactional Blocks, Impact of Blockchain Technology on Cryptocurrency.

2.1Bitcoin
Bitcoin (BTC) is a cryptocurrency, a virtual currency designed to act as money
and a form of payment outside the control of any one person, group, or entity, thus
removing the need for third-party involvement in financial transactions. It is rewarded to
blockchain miners for the work done to verify transactions and can be purchased on
several exchanges.
“Satoshi Nakamoto” is presumed to be the pen name for the person or people
who designed the original bitcoin. Bitcoin was first introduced in the year 2009 as a
medium of exchange. Bitcoin then started as a peer-to-peer network to generate a
system for electronic transactions. Since then, there has been a rapid growth in the
usage as well as the value of bitcoin which is a popular system of digital currency.

There are 3 ways you can get a bitcoin in your electronic storage:
1. Trade Money For Bitcoin: Say that the value of a bitcoin is 1 lakh rupees, so if
you want a bitcoin, you can trade a bitcoin in place of 1 lakh rupees. This Bitcoin
will further be stored in your electronic storage media which you can further use.
2. Trade Goods For Bitcoin: Say that the value of a bitcoin is 1 lakh rupees and you
have a commodity that has its value as 1 lakh rupees, so you can trade that
commodity in place of a bitcoin, and the bitcoin will be stored in your electronic
storage media.
3. Mine Bitcoins: Other than trading, you can also mine bitcoins. Since it is a
decentralized currency, there is no authority that brings bitcoins into the market.
Bitcoins only come into the market by mining them.

2.1.1 Features:
 Distributed: All bitcoin transactions are recorded in a public ledger known as
the blockchain. There are nodes in the network that maintain copies of the ledger
and contribute to the correct propagation of the transactions following the rules of
the protocols making it impossible for the network to suffer downtime.
 Decentralized: There is no third party or no CEO who controls the bitcoin network.
The network consists of willing participants who agree to the rules of a protocol
and changes to the protocol are done by the consensus of its users. This makes
bitcoin a quasi-political system.
 Transparent: The addition of new transactions to the blockchain ledger and the
state of the bitcoin network is arrived upon by consensus in a transparent manner
according to the rules of the protocol.
 Peer-to-peer: In Bitcoin transactions, the payments go straight from one party to
another party so there is no need for any third party to act as an intermediary.
 Censorship resistant: As bitcoin transactions are pseudo-anonymous and users
possess the keys to their bitcoin holdings, so it is difficult for the authorities to ban
users from using their assets. This provides economic freedom to the users.
 Public: All bitcoin transactions are available publicly for everyone to see. All the
transactions are recorded, which eliminates the possibility of fraudulent
transactions.
 Permissionless: Bitcoin is completely open access and ready to use for everyone,
there are no complicated rules of entry. Any transaction that follows the set
algorithm will be processed with certainty.
 Pseudo-anonymous: Bitcoin transactions are tied to addresses that take the form
of randomly generated alphanumeric strings.

2.1.2 Bitcoin transactions are authorized in a peer-to-peer network.

• Each node stores the history of the chain of blocks, containing validated
transactions

• Counterfeiting is impossible because if one node’s history is

corrupted the others stay the same, and no central authority
(i.e. bank) needs to confirm; this is called decentralization

• Unlike previous P2P network models, members of the Bitcoin network are
incentivized to participate through cryptocurrency.

• Specifically, the incentive is for the people who mint (create) Bitcoin,
called miners.
2.1.3 Benefits of Bitcoin

The following are some of the advantages of using bitcoins:

 User anonymity: Bitcoin users can have multiple public keys and are identified by
numerical codes. This ensures that the transactions cannot be traced back to the
user. Even if the wallet address becomes public, the user can generate a new
wallet address to keep information safe.
 Transparency: Bitcoin transactions are recorded on the public ledger blockchain.
The transactions are permanently viewable, which gives transparency to the
system but they are secure and fraud-resistant at the same time due to blockchain
technology.
 Accessibility: Bitcoin is a very versatile and accessible currency. It takes a few
minutes to transfer bitcoins to another user, so it can be used to buy goods and
services from a variety of places accepting bitcoins. This makes spending bitcoin
easy in another country with little or no fees applied.
 Independence from central authority: Bitcoin is a decentralized currency, which
means there is no dependence on any single governing authority for verifying
transactions. This means that the authorities are not likely to freeze or demand
back the bitcoins.
 Low transaction fees: Standard wire transfers involve transaction fees and
exchange costs. Since bitcoin transactions do not involve any government
authority so the transaction fees are very low compared to bank transfers.
2.1.4 Drawbacks of Bitcoin

The following are some of the cons of using bitcoin:

 Volatility: There are various factors that contribute to the bitcoin’s volatility like
uncertainty about its future value, security breaches, headline-making news, and
one of the most important reasons is the scarcity of bitcoins. It is known that there
is a limit of 21 million bitcoins that could ever exist which is why some regard
bitcoin as a scarce resource. This scarcity makes bitcoin’s price variable.
 No government regulations: Unlike the investments that are done through central
banks, bitcoins transactions are not regulated by any central authority due to a
decentralized framework. This means that bitcoin’s transactions don’t come with
legal protection and are irreversible which makes them susceptible to crimes.
 No buyer protection: If the goods are bought using bitcoins and the seller does
not send the promised goods then nothing can be done to reverse the transactions
and since there is no central authority so no legal protection can be provided in this
case.
 Not widely accepted: Bitcoins are still only accepted by a small group of online
merchants. This makes it unfeasible to rely completely on bitcoin as a currency and
replace it with traditional bank transactions.
 Irreversible: There is a lack of security in bitcoin transactions due to the
anonymous and non-regulated nature of the bitcoin transactions. If the wrong
amount is sent or the amount is sent to the wrong recipient then nothing can be
done to reverse the transactions.

2.2 Bitcoin Network and Transactions

• A full node is basically an electronic bookkeeper, and anybody in

the world can set up and run one.

• Each node has a complete copy of the public ledger –

 that’s a record of every Bitcoin transaction

2.2.1 Sample Transaction

• Every transaction has a set of inputs and a set of outputs.

• The inputs identify which bitcoins are being spent, and the
outputs assign those bitcoins to their new owners.

• Each input is just a digitally signed reference to some output from a previous
transaction.

• Once an output is spent by a subsequent input, no other transaction can

spend that output again.

• Each unspent output represents some amount of bitcoin that is currently in

someone’s possession.

• Note that nobody’s real name appears anywhere within a transaction. That’s
why Bitcoin is often said to be pseudonymous.

• Instead of real names, bitcoins are assigned to addresses such as

1PreshX6QrHmsWbSs8pHpz6kLRcj9kdPy6.
2.2.2 Where Do Addresses Come From?

Obviously, if you want to receive bitcoins, you need to have a Bitcoin address. Your
wallet can generate addresses for you.

In order to generate an address, your wallet first generates a private key. A private key
is nothing but a large number roughly between 1 and 2256.

To make such numbers shorter to write, it’s customary to encode them as sequence of
numbers and letters.

Bitcoin Address

 Next, your wallet converts that private key to a Bitcoin address using a well-
known function. This function is very straightforward for a computer to perform.

 It uses elliptic curve cryptography to generate Bitcoin addresses

 If anyone knows your private key, they could easily convert it to a Bitcoin
address, too.

 If someone knows only your Bitcoin address, it’s virtually impossible

to figure out what the private key was.

2.2.3 How Are Transactions Authorized

 In Bitcoin, a valid digital signature serves as proof that the transaction was
authorized by the address’s owner.

 Just as a private key was required to generate that address, the same private key
 is required, once again, to generate a valid digital signature.

• A digital signature is only valid if a specific equation is satisfied by the

address, the previous output and the signature.

2.2.4 The Bitcoin lifecycle

• Sender wants to send 1 Bitcoin to Receiver. This is what is going to

happen:
 1. Sender creates a transaction.
2. Sender's bitcoin wallet validates the transaction.

3. The transaction is sent to Mempool.

4. Miners get the transaction from Mempool and start

mining the block using a consensus algorithm.

5. After the block is fully mined, it is added to the network.

6. The chain validates the new block and every peer

in the network will get the blockchain with the new
block added.

7. Finally, the Receiver get your BTCs

Mempool

 The Mempool (Shortcut for Memory Pool) is where the transactions stay until the
miner is ready to get them.

 In the bitcoin's blockchain, the miner prioritize the biggest transactions over the
smallest ones.

 This happens because here is where the miner makes money.

 Miner "mine" the block through the consensus algorithm.

2.3 Bitcoin Mining Process
Bitcoin Mining is the process of verifying bitcoin transactions and storing them
in a blockchain(ledger). It is a process similar to gold mining but instead, it is a
computer process that creates new bitcoin in addition to tracking Bitcoin transactions.
Let’s further study bitcoin and the various concepts related to it.

2.3.1 What is Bitcoin Mining?

Bitcoin mining is a computation-intensive process that uses complicated computer

code to generate a secure cryptographic system. The bitcoin miner is the person who
solves mathematical puzzles(also called proof of work) to validate the transaction.
Anyone with mining hardware and computing power can take part in this. Numerous
miners take part simultaneously to solve the complex mathematical puzzle, the one
who solves it first, wins 6.25 bitcoin as a part of the reward. Miner verifies the
transactions(after solving the puzzle) and then adds the block to the blockchain when
confirmed. The blockchain contains the history of every transaction that has taken
place in the blockchain network. Once the minor adds the block to the blockchain,
bitcoins are then transferred which were associated with the transaction.
For the miners to earn rewards from verifying the bitcoin Transactions, two things
must be ensured:
1. The miners must verify the one-megabyte size of the transaction.
2. For the addition of a new block of transaction in the blockchain, miners must have
the ability to solve complex computational maths problems called proof for work by
finding a 64-bit hexadecimal hash value.
2.3.2 Why Do Bitcoin Needs To Be Mined?
Bitcoin is a digital currency where there are chances of copying, counterfeiting, or
double-spending the same coin more than once. Mining solves these problems by
making the above illicit activities extremely expensive and resource-intensive. Thus, it
can be concluded that it is more beneficial and cost-effective to join the network as a
miner than to try to undermine it.
2.3.3 Why Does Bitcoin Needs Miners?
Bitcoin miners are very essential for the smooth functioning of the bitcoin network for
the following reasons:
 Miners’ job is just like auditors i.e. to verify the legitimacy of the bitcoin
transactions.
 Miners help to prevent the double-spending problem.
 Miners are minting the currency. In the absence of miners, Bitcoin as the network
would still exist and be usable but there would be no additional bitcoin.
2.3.4 Why Mine Bitcoins?
There are several pros of mining a bitcoin:
 Mining bitcoin helps support the Bitcoin ecosystem.
 Bitcoin mining helps miners to earn rewards in form of bitcoins.
 It is the only way to release new cryptocurrencies into circulation.
 It is used to check counterfeiting and double spending.

2.3.5 How Does Bitcoin Mining Work?

The nodes of the blockchain network are based on the concept that no one in the
network can be trusted. Proof of work is accepted by nodes to validate any
transaction. Proof of work involves doing hefty calculations to find a 32-bit hash value
called nonce to solve the mathematical puzzle. The miners create new blocks by
abiding by the fact that the transaction volume must be less than 21 million. 21 million
is the total number of bitcoins that can be generated. The verified transaction gets a
unique identification code and is linked with the previous verified transaction.
Let’s understand this with the help of an example-
 Suppose Alice wants to transfer 10 BTC to Bob.
 Now the transaction data of A is shared with the miners from the memory pool. A
memory pool is a place where an unconfirmed or unverified transaction waits for its
confirmation.
 Miners start competing with themselves to solve the mathematical riddle in order to
validate and verify the transaction using proof of work.
 The miner who solves the problem first shares his result with other nodes(miners).
 Once maximum nodes agree with the solution, the transaction block is verified and
is then added to the blockchain.
 At the same time, the miner who solved the puzzle gets a reward of 6.25 bitcoins.
 Now, after the addition of the transaction block, the 10 BTC associated with the
transaction data is transferred to Bob from Alice.
2.3.6 How to Start Mining Bitcoin?

The following steps display the ways to mine bitcoins:

1. Profit calculation: One must, first of all, calculate the profit by taking hardware
costs, electricity costs, and bitcoin costs into consideration.
2. Buying the Mining Hardware: After ensuring the feasibility of mining bitcoins, the
user must purchase mining hardware like ASICs.
3. Mining Software: For proper access to bitcoin, mining software provides a
pathway to join the Blockchain network. There are lots of free mining software
available online.
4. Installing Bitcoin Wallet: After the user receives bitcoins as a reward for mining,
the bitcoins are to be kept in the bitcoin wallet.
5. Joining a Mining Pool: This increases the possibility of mining bitcoins efficiently.

2.4 Bitcoin wallet

Bitcoin is a virtual currency made up of 0s and 1s. They are collected and stored in a
software portfolio called a wallet. A wallet identifies amount of cryptocurrency with
unique addresses that are used to send and receive money.
A wallet is a combination of public address and private key.

A cryptocurrency wallet is a digital wallet that is used to store and transact in different
cryptocurrencies. The crypto wallet doesn't exactly "store" the currency as real-world
wallets do. Instead, it stores public and private keys which help in sending and
receiving money. Bitcoin owners save bitcoins in either an online wallet or a paper
wallet which are similar to a physical wallet. Wallet holds keys to each bitcoin, securing
them and preventing any fraud.
A wallet is used to −
 Send and receive money as cryptocurrency
 Collect and store coins created by the miner
 Synchronize blockchain with all nodes of the network
Opening a wallet is fairly simple; one can download free and paid bitcoin wallets from
internet. Some deal only in bitcoins while others handle multiple cryptocurrencies.
A Bitcoin wallet is simply an app, software, website, or device that manages Bitcoin
private keys for you.
2.4.1Desktop Wallet

Desktop wallets are installable software packs that are available for most
desktop operating systems such as Mac, Windows, and Linux. For example,
Electrum, Exodus.

Desktop wallets are programs that store and manage the private key for your Bitcoins on
your computer’s hard drive.

2.4.2 Mobile wallets

Mobile wallets are the fourth most secure way to store your cryptocurrencies
because they are always connected to the internet (hot wallets) and can be
flawed by the development community itself. It is available on both IOS and
Android. For example, Jaxx, and Breadwallet.
 • A mobile wallet is a virtual wallet that stores payment card information on
a mobile device.

• They are quite convenient as it uses QR codes for transactions

• Some mobile wallets are Coinomi and Mycelium

2.4.3 Paper Wallets

A paper wallet is a piece of paper on which the public address and private address are
printed, usually in the form of QR code. Public address is used to receive bitcoins, and
the private address is used to send or transfer the bitcoins stored at that address. The
paper wallet should be used securely and not revealed or lost. The paper wallet can be
generated by using services like Bitcoinpaperwallet or Bitaddress, and then can be
printed out.
• It is a physically printed QR coded form wallet.

• Some wallets allow downloading the code to generate new addresses

offline.
2.4.4 Hot Wallets
Hot wallets are Bitcoin wallets that run on internet connected devices like a computer,
mobile phone, or tablet. Private keys are secret codes that hot wallets generate on an
internet connected device. As such we cannot say these private keys are completely
secure.
Hot wallets are like your physical wallets which you use to store some cash, but not
your life savings. Hot wallets are useful if you make frequent and small payments, but
are not suitable to store a large amount of bitcoins.
Software wallets allow us to send and receive bitcoins and are mostly free. There are
some paid software wallets which provide some extra value-added services.

2.4.5 Web Wallets

Web wallets are hot wallets that are always connected to the internet and can be
accessed through different browsers such as Google Chrome, Firefox, and
Internet Explorer. For example, Coinbase, and Binance.

• These wallets are accessed by internet browsers.

• They are the least secure wallets.

• They are not the same as hot wallets.

• They are ideal for small investments and allow quick transactions.

• Some of these are MetaMask and Coinbase.

2.4.6 Hardware wallets

 Most popular hardware wallets are Ledger Nano S and Trezor, KeepKey.

• Hardware wallets are hardware devices that individually handle public addresses
and keys.
• It looks like a USB with OLED screen and side buttons.
• when you open a wallet (in the hardware wallet or software wallet) you are
provided with 2 pair of keys (sometimes more).
 Public key and the private key.

• public key is used to generate the public cryptocurrency address you can use
to receive the cryptocurrency, the private key is used to sign the transactions
confirming your ownership over it.

2.5 Decentralization and Hard Forks

The decentralized nature of public blockchains (for example, Bitcoin and Ethereum)
means that participants on the network must be able to come to an agreement as to
the shared state of the blockchain(shared public ledger and blocks and the blockchain
protocol). Unanimous consensus amongst the network nodes results in a single
blockchain that contains verified data(transactions) that the network asserts to be
correct. However, many times, the nodes in the network can’t come in a unanimous
consensus regarding the future state of the blockchain. This event leads to forks (like
a tuning fork used in experimental science), meaning that point in which the ideal
‘single’ chain of blocks is split into two or more chains which are all valid.
2.5.1 FORKS IN BLOCKCHAIN:
In simple terms, Forks in blockchain means copying the code and modifying it to
create a new software or product. In open-source projects Forks are very common and
used widely. So, cryptocurrencies like Ethereum and Bitcoin are decentralized and
open software so that anyone can contribute. As they are open-sources they rely on
their communities to make the software more secure and reliable. Also open source
with the help of fork can make user interface more interactive and look good, helping
in gaining more users worldwide. In open source the code is visible to everyone,
anyone can modify, edit, access there is no copyright claims for such actions.
For example: Tor browser is an open source software, Linux one of the most widely
use Operating system is an open source system, in similar way Bitcoin and Ethereum
protocol are also open sourced.

2.5.2 TYPES OF FORKS

Basically forks are divided into two categories i.e. Codebase Fork and Live
Blockchain Fork. And then Live Blockchain Fork is divided into further two parts
i.e. Intentional Fork and Accidental Fork, as you can see in the above mentioned
figure the Intentional fork is then further divided into two parts i.e. Soft Fork and Hard
Fork.
CODEBASE FORK: In codebase blockchain fork you can copy the entire code of a
particular software. Let us take BITCOIN as an example, so suppose you copied the
whole blockchain code and modified it according to your need, say that you decreased
the block creation time, made some crucial changes and created a faster software
than BITCOIN and publish / launch it has a new whole software named against you,
by completing the whole white paper work process. So in these way a new
BLOCKCHAIN will be created from an empty blank ledger. It’s a fact that many of
these ALT COINS which are now running on the blockchain are been made in these
way only by using the codebase fork i.e. they have made little up and down changes
in the code of BITCOIN and created their whole new ALT COIN.
LIVE BLOCKCHAIN FORK: Live Blockchain fork means a running blockchain is been
divided further into two parts or two ways. So in live blockchain at a specific page the
software is same and from that specific point the chain is divided into two parts. So in
context to this fork the Live Blockchain Fork can occur because of two reasons :
 ACCIDENTAL FORK / TEMPORARY FORK: When multiple miners mine a new
block at nearly the same time, the entire network may not agree on the choice of
the new block. Some can accept the block mined by one party, leading to a
different chain of blocks from that point onward while others can agree on the other
alternatives (of blocks) available. Such a situation arises because it takes some
finite time for the information to propagate in the entire blockchain network and
hence conflicted opinions can exist regarding the chronological order of events. In
this fork, two or more blocks have the same block height. Temporary forks resolve
themselves eventually when one of the chain dies out (gets orphaned) because
majority of the full nodes choose the other chain to add new blocks to and sync
with. Example (TEMPORARY FORK / ACCIDENTAL FORK): Temporary forks
happen more often than not and a usual event that triggers this fork is mining of a
block by more than one party at nearly the same time.
 INTENTIONAL FORK: In intentional fork the rules of the blockchain are been
changed, knowing the code of the software and by modifying it intentionally. This
gives rise to two types of forks which can occur based on the backwards-
compatibility of the blockchain protocol and the time instant at which a new block is
mined. So Intentional fork can be of two types:
SOFT FORK: When the blockchain protocol is altered in a backwards-compatible way.
In soft fork you tend to add new rules such that they do not clash with the old rules.
That means there is no connection between the old rules and new rules. Rules in soft
fork are tightened. When there is a change in the software that runs on the nodes
(better called as ‘full nodes’) to function as a network participant, the change is such
that the new blocks mined on the basis of new rules (in the Blockchain protocol) are
also considered valid by the old version of the software. This feature is also called as
backwards-compatibility. Example (SOFT FORK): The Bitcoin network’s SegWit
update added a new class of addresses (Bech32). However, this didn’t invalidate the
existing P2SH addresses. A full node with a P2SH type address could do a valid
transaction with a node of Bech32 type address.

HARD FORK: When the blockchain protocol is altered in a non backwards-compatible

way. Hard fork is opposite of Soft fork, here the rules are loosened. When there is a
change in the software that runs on the full nodes to function as a network participant,
the change is such that the new blocks mined on the basis of new rules (in the
Blockchain protocol) are not considered valid by the old version of the software. When
hard forks occur, new currency come into existence (with valid original currency) like
in the case of Ethereum (original : Ethereum, new : Ethereum Classic) and Bitcoin
(original : Bitcoin, new : Bitcoin cash). Equivalent quantity of currency is distributed to
the full nodes who choose to upgrade their software so that no material loss occurs.
Such hard forks are often contentious (generating conflicts in the community). The
final decision to join a particular chain rests with the full node. If chosen to join the new
chain, the software has to be upgraded to make newer transactions valid while the
nodes who do not choose to upgrade their software continue working the
same. Example (HARD FORK): The new Casper update in the Ethereum Blockchain
in which the consensus protocol will change from a type of Proof of Work (PoS) to a
type of Proof of Stake (PoS). The nodes which install the Casper update will use the
new consensus protocol. Full nodes that do not choose to install the Casper update
will become incompatible with the full nodes that do.
Reasons for the occurrence of a blockchain fork:
 Add new functionality: The Blockchain code is upgraded regularly. Since most
public blockchains are open source, it is developed by people from around the
world. The improvements, issues are created, resolved and new versions are
released when the time is suitable.
 Fix security issues: Blockchain (and cryptocurrency on top of it) is a relatively
new technology as compared to the traditional currency (notes, coins, cheque),
research is still underway to fully understand it. So, versions are bumped and
updates are released to fix the security issues that arise in the way.
 Reverse transactions: The community can actually void all the transaction of a
specific period if they are found to be breached and malicious.

2.6 Ethereum Virtual Machine (EVM)

Introduction to Ethereum Virtual Machine (EVM)?

Ethereum Virtual Machine (EVM) is designed as the runtime environment for smart
contracts in Ethereum. It is sandboxed and isolated from the other parts of the system.
This means that any operation on EVM should not affect your data or programs in any
way, no matter how many times you call a particular function on it.
 An EVM is the runtime environment that executes Ethereum smart contracts.
 Ethereum contains its own Turing-complete scripting language, called Solidity, and
with this comes a need to execute this code.
 A program called the Ethereum Virtual Machine (EVM) can do this task.
 It runs on top of the Ethereum network, meaning that all nodes reach a consensus
about what code should be executed at every given time.
2.6.1 Purpose of EVM

The Ethereum Virtual Machine (EVM) is a Turing complete programmable machine,

which can execute scripts to produce arbitrary outcomes. It has been built with the
purpose of being a “world computer” and has immense power.
 It is the computer that stores data on blockchain, like bitcoin, but it also executes
code in smart contracts on the Ethereum network.
 The machine is made to be able to run any kind of Crypto-contract that can be built
on Ethereum’s blockchain. It does this by using a programming language called
Solidity, which is compiled into the EVM for execution.
 The intention behind writing code on the Ethereum network is to create smart
contracts and programs that automatically execute things when certain conditions
are met. If a terms or condition is not met, the system can execute it in an “exit”
function as well.
 For example, if an account has been hacked, the hacker cannot steal money from
the system, because they don’t have the budget or authority to do so.

2.6.2 How Does EVM Works?

Ethereum Virtual Machine (EVM) is a program which executes scripts used to

implement certain operations usually in Ethereum blockchain.
The Ethereum Virtual Machine makes the process of creating new tokens on
Ethereum Blockchain easy. Here, script means a set of instructions or an algorithm
which tells the computer what it needs to do in order for something to work properly.
The EVM requires that one has access over any network node so as to be able to
execute the desired commands and create new tokens on the blockchain without any
difficulties.
 In Ethereum, there is something called a smart contract. These contracts have
some computer code which facilitates the exchange of money and information.
 These contracts are predefined by the creator of the smart contract, in order to
ensure that a certain outcome will happen based on either what happens or
doesn’t happen.
 Ethereum Virtual Machine provides Turing complete environment for execution of
scripts and smart contracts. This means that anything that can be implemented
with a computer can be run on EVM.
In the Ethereum ecosystem, EVM plays a vital role by providing a platform for
decentralized applications (DApps) to be built on top of it.
Ethereum Virtual Machine ensures that all transactions and smart contracts made on
the Ethereum blockchain are executed in correct and expected manner as desired by
the smart contract code. It serves as a platform for applications to be executed on.
In simple words, it can be said that Ethereum Virtual Machine facilitates DApp creation
and execution on the blockchain.
2.6.3 Ethereum Virtual Machine (EVM) has two parts:
 EVM (the part that runs solidity source code): The EVM is written in C++ and
uses LLVM as its compiler. It is a full-featured virtual machine with all the features
that you would want in a general purpose Smart Contract Virtual Machine, such as
support for multiple programming languages, security features, runtime
environments and more. It also allows you to write custom EVM bytecode .
 Uncles: These are small pieces of smart contracts or data stored on the
blockchain. This is a useful feature because it allows for you to store metadata
about your program. EVM Assembly: This is the bytecode of EVM, which you can
use as your programming language.
These are small pieces of smart contracts or data stored on the blockchain. This is a
useful feature because it allows one to store metadata about the program.
 Actions: These are basic operations that one can perform on assets stored in
memory (and not on the blockchain), such as multiplication, addition, and so on.
 Balance: This is the amount of Ether that one have at any time. So, if there is a
balance of 100 Ether and spend 10 Ether, the balance would be 90 Ether. Note
that this is not actually a variable, it’s just a part of memory where EVM stores the
data. This means that whenone tries to modify or read from it, it will return
execution with an error.
 Block: This is an immutable storage for all actions and transactions related to
Ethereum in its lifetime up until this block in particular. These blocks can be only
65,000 so this is not going to change.
 Blockhash: This is a hash of the block in question. So, if you are looking at stored
on the blockchain under another name, this would be a hash of the data stored
there.
 Block Number: This is a number indicating which block this particular blockhash
belongs to. It always starts from zero and increases every time there’s a new block
added to the chain. Note that blocks have timestamps associated with them so you
can tell how much time passed between two blocks.
 Code: This is code executed in EVM that determines what action is going to be
taken when an input happens (such as transferring money).
 CodeHash: This is a hash of the code itself. If one looks at a contract on
Etherscan, the CodeHash is what one will see. When functions are executed on
EVM, this number changes because the code itself changes based on the input.
 CodeSize: This is the actual size of the code in bytes.
 GasLimit: This is a part of EVM that allows for users to specify how much gas they
are willing to spend in order to execute something. If this number is zero, then
nothing will happen (this rarely happens).

2.6.4 How Does Gas RelateTo Performance Of EVM?

 Gas is a measure of computational power. It determines how much time each

transaction and contract takes to execute.
 Because there is so much code already in the system, it uses a limited amount of
Gas to run all of this code. It sets the default gas limit to 250,000 gas units.
 In general, the more complicated your transaction, the more gas it takes to
execute.

2.6.5 Benefits of EVM

 Execute untrusted code without risking data: One can execute untrusted code
without putting the data at risk. EVM guarantees that its computations will not
interfere with anything else happening in the system or with the personal files.
 Can run complex smart contracts: One can run complex smart contracts in EVM
without worrying about how they interact with each other. One can write them once
and then run them on multiple platforms, which allows for the creation of a single
contract that runs on multiple computing environments.
 Deterministic processing: Smart contracts written on EVM have access to all of
Ethereum’s states at any given time, allowing for processing to happen in a
deterministic way and giving more guarantees about their correctness. For
example, one cannot make an infinite loop in EVM by calling the same function
twice. It would stop executing and return a finite value.
 Distributed consensus: One of the potential applications of Ethereum is to allow
for distributed consensus where everyone is running the same program but from
their own computers.
 Robust against failure: This is a complex process because the network needs to
be able to come to a consensus at any given time. This way, the system becomes
more robust against failures of individual nodes and you can update several nodes
simultaneously without worrying that they might end up disagreeing with each other
because of how code was written.
 Easy to write stateful contracts: From a developer perspective, EVM is designed
for writing smart contracts as well as for creating DApps (decentralized
applications), which are programs running on distributed networks in a way that
ensures all of them are seeing the same version. It also makes it incredibly easy to
write stateful contracts, which need access to some kind of persistent storage.

2.6.6 Downsides of EVM

 High cost of storing data: First is gas, which is what you need to use in order to
pay the fee to run a smart contract, and the other is the high cost of storing data on
the blockchain, which could take up more than 3TB
 High gas cost: In Ethereum, all transactions require a fee to execute. These fees
are called “gas”, and are paid in ETH tokens. Gas is priced at the moment of
execution, and depends on the complexity of executing a transaction. The more
difficult the computation for a transaction, the higher its gas cost will be.
 High gas price during network congestion: During times when there is high
network congestion due to many transactions being pushed onto the blockchain,
gas prices rise because there are fewer transactions that can go through (the same
amount of computational power has to service more transactions).
 Technical expertise required: Writing smart contracts and using EVM requires
technical expertise. It’s a Turing-complete system, which allows programmers to
write scripts in any programming language they wish. This can be excellent or
disastrous, depending on the intention behind the code being written. Programming
languages are not inherently good or bad in their nature; it all depends on who is
using them and for what purpose. The downside of this technology is that it could
create a lot of complicated problems because with more power comes more
responsibility for the writer of code.

2.7 Blockchain Merkle Tree

Merkle tree is a fundamental part of blockchain technology. It is a mathematical data

structure composed of hashes of different blocks of data, and which serves as a
summary of all the transactions in a block. It also allows for efficient and secure
verification of content in a large body of data. It also helps to verify the consistency and
content of the data. Both Bitcoin and Ethereum use Merkle Trees structure. Merkle Tree
is also known as Hash Tree.

The concept of Merkle Tree is named after Ralph Merkle, who patented the idea
in 1979. Fundamentally, it is a data structure tree in which every leaf node labelled with
the hash of a data block, and the non-leaf node labelled with the cryptographic hash of
the labels of its child nodes. The leaf nodes are the lowest node in the tree.

How do Merkle trees work?

A Merkle tree stores all the transactions in a block by producing a digital fingerprint of
the entire set of transactions. It allows the user to verify whether a transaction can be
included in a block or not..2M

Merkle trees are created by repeatedly calculating hashing pairs of nodes until there is
only one hash left. This hash is called the Merkle Root, or the Root Hash. The Merkle
Trees are constructed in a bottom-up approach.

Every leaf node is a hash of transactional data, and the non-leaf node is a hash of its
previous hashes. Merkle trees are in a binary tree, so it requires an even number of leaf
nodes. If there is an odd number of transactions, the last hash will be duplicated once to
create an even number of leaf nodes.

 Root node: The root of the Merkle tree is known as the Merkle root and this
Merkle root is stored in the header of the block.
 Leaf node: The leaf nodes contain the hash values of transaction data. Each
transaction in the block has its data hashed and then this hash value (also known
as transaction ID) is stored in leaf nodes.
 Non-leaf node: The non-leaf nodes contain the hash value of their respective
children. These are also called intermediate nodes because they contain the
intermediate hash values and the hash process continues till the root of the tree.
4. Bitcoin uses the SHA-256 hash function to hash transaction data continuously till
the Merkle root is obtained.

5. Further, a Merkle tree is binary in nature. This means that the number of leaf
nodes needs to be even for the Merkle tree to be constructed properly. In case there
is an odd number of leaf nodes, the tree duplicates the last hash and makes the
number of leaf nodes even.

Merkle Root is stored in the block header. The block header is the part of the bitcoin
block which gets hash in the process of mining. It contains the hash of the last block, a
Nonce, and the Root Hash of all the transactions in the current block in a Merkle Tree.
So having the Merkle root in block header makes the transaction tamper-proof. As this
Root Hash includes the hashes of all the transactions within the block, these
transactions may result in saving the disk space.

The blockchain is a hash-based linked list of blocks, where each block consists of a
header and transactions. The transactions are arranged in a tree-like fashion, known
as the Merkle tree.
2.7.1 Example: Consider a block having 4 transactions- T1, T2, T3, T4. These four
transactions have to be stored in the Merkle tree and this is done by the following
steps-
Step 1: The hash of each transaction is computed.
H1 = Hash(T1).
Step 2: The hashes computed are stored in leaf nodes of the Merkle tree.
Step 3: Now non-leaf nodes will be formed. In order to form these nodes, leaf nodes
will be paired together from left to right, and the hash of these pairs will be calculated.
Firstly hash of H1 and H2 will be computed to form H12. Similarly, H34 is computed.
Values H12 and H34 are parent nodes of H1, H2, and H3, H4 respectively. These are
non-leaf nodes.
H12 = Hash(H1 + H2)
H34 = Hash(H3 + H4)
Step 4: Finally H1234 is computed by pairing H12 and H34. H1234 is the only hash
remaining. This means we have reached the root node and therefore H1234 is the
Merkle root.
H1234 = Hash(H12 + H34)
Merkle tree works by hashing child nodes again and again till only one hash remains.

The above example is the most common and simple form of a Merkle tree, i.e., Binary
Merkle Tree. There are four transactions in a block: T1, T2, T3, and T4. Here you can
see, there is a top hash which is the hash of the entire tree, known as the Root Hash,
or the Merkle Root. Each of these is repeatedly hashed, and stored in each leaf node,
resulting in Hash 1, 2, 3, and 4. Consecutive pairs of leaf nodes are then summarized in
a parent node by hashing Hash1 and Hash2, resulting in Hash12, and separately
hashing Hash3 and Hash4, resulting in Hash34. The two hashes
(Hash12 and Hash34) are then hashed again to produce the Root Hash or the Merkle
Root.

2.7.2 Advantages of Merkle Tree

1. Efficient verification: Merkle trees offer efficient verification of integrity and

validity of data and significantly reduce the amount of memory required for
verification. The proof of verification does not require a huge amount of data to be
transmitted across the blockchain network. Enable trustless transfer of
cryptocurrency in the peer-to-peer, distributed system by the quick verification of
transactions.
2. No delay: There is no delay in the transfer of data across the network. Merkle
trees are extensively used in computations that maintain the functioning of
cryptocurrencies.
3. Less disk space: Merkle trees occupy less disk space when compared to other
data structures.
4. Unaltered transfer of data: Merkle root helps in making sure that the blocks sent
across the network are whole and unaltered.
5. Tampering Detection: Merkle tree gives an amazing advantage to miners to
check whether any transactions have been tampered with.
 Since the transactions are stored in a Merkle tree which stores the hash of each
node in the upper parent node, any changes in the details of the transaction
such as the amount to be debited or the address to whom the payment must be
made, then the change will propagate to the hashes in upper levels and finally
to the Merkle root.
 The miner can compare the Merkle root in the header with the Merkle root
stored in the data part of a block and can easily detect this tampering.
6. Time Complexity: Merkle tree is the best solution if a comparison is done
between the time complexity of searching a transaction in a block as a Merkle tree
and another block that has transactions arranged in a linked list, then-
 Merkle Tree search: O(logn), where n is the number of transactions in a block.
 Linked List search: O(n), where n is the number of transactions in a block.

2.8 Blockchain Double Spending

Double spending means spending the same money twice. As we know, any transaction
can be processed only in two ways. One is offline, and another is online.

Offline: A transaction which involves physical currency or cash is known as an offline

transaction.

Online: A transaction which involves digital cash is known as an online transaction.

2.8.1 Understanding Double Spending

Although Blockchain is secured, still it has some loopholes. Hackers or malicious

users take advantage of these loopholes to perform their activities.
 Double spending means the expenditure of the same digital currency twice or more
to avail the multiple services. It is a technical flaw that allows users to duplicate
money.
 Since digital currencies are nothing but files, a malicious user can create multiple
copies of the same currency file and can use it in multiple places.
 This issue can also occur if there is an alteration in the network or copies of the
currency are only used and not the original one.
 There are also double spends that allow hackers to reverse transactions so that
transaction happens two times.
 By doing this, the user loses money two times one for the fake block created by the
hacker and for the original block as well.
 The hacker gets incentives as well for the fake blocks that have been mined and
confirmed.
2.8.2 How Does Double Spending Happen?

Double spending can never arise physically. It can happen in online transactions. This
mostly occurs when there is no authority to verify the transaction. It can also happen if
the user’s wallet is not secured. Suppose a user wants to avail of services from
Merchant ‘A’ and Merchant ‘B’.
 The user first made a digital transaction with Merchant ‘A’.
 The copy of the cryptocurrency is stored on the user’s computer.
 So the user uses the same cryptocurrency to pay Merchant ‘B’
 Now both the merchants have the illusion that the money has been credited since
the transactions were not confirmed by the miners.
 Let us consider this example:
 You go to Restaurants and order a cappuccino worth $5. You pay in cash. The
service provider at Restaurants instantly confirmed that you have paid, and you
received your coffee in exchange for the money. Now is it possible to spend the
same $5 somewhere else to make another purchase? The answer is NO. But
what if the answer is YES? It means the same person can use the same cash
more than one times. This type of problem is known as Double Spending
Problem.


 In a physical currency, the double-spending problem can never arise. But in
digital cash-like bitcoin, the double-spending problem can arise. Hence, bitcoin
transactions have a possibility of being copied and rebroadcasted. It opens up
the possibility that the same BTC could be spent twice by its owner.

2.8.3 How Bitcoin handles the Double Spending Problem?

Bitcoin handles the double-spending problem by implementing a confirmation

mechanism and maintaining a universal ledger called blockchain.

Let us suppose you have 1 BTC and try to spend it twice. You made the 1 BTC
transaction to Alice. Again, you sign and send the same 1 BTC transaction to Bob. Both
transactions go into the pool of unconfirmed transactions where many unconfirmed
transactions are stored already. The unconfirmed transactions are transactions which
do not pick by anyone. Now, whichever transaction first got confirmations and was
verified by miners, will be valid. Another transaction which could not get enough
confirmations will be pulled out from the network. In this example, transaction T1 is
valid, and Alice will receive the bitcoin.

To tackle these double-spending issues, some security measures are taken. They are:
 Validation: Validation of transactions by a maximum number of nodes in the
network. Once a block is created, it is added to a list of pending transactions.
Users send validation for the block. If the verifications are done then only the block
is added to the blockchain.
 Timestamp: The confirmed transactions are timestamped, therefore they are
irreversible. If a transaction is involved with a bitcoin it is verified and done. But in
the future, if other transactions are made with the same bitcoin, the transactions
will be canceled.
 Block Confirmations: Merchants get block confirmations so that they are assured
that there was no case of double spending. In bitcoin, a minimum of 6
confirmations are done.
 Saving copies: A copy of each transaction is kept at each node so in case of
network failure the whole network does not go down.

2.8.4 What happened if both the transactions are taken simultaneously by the
miners?

Suppose two different miners will pick both transactions at the same time and start
creating a block. Now, when the block is confirmed, both Alice and Bob will wait for
confirmation on their transaction. Whichever transaction first got confirmations will be
validated first, and another transaction will be pulled out from the network.

Now suppose if both Alice and Bob received the first confirmation at the same time,
then there is a race will be started between Alice and Bob. So, whichever transaction
gets the maximum number of confirmations from the network will be included in the
blockchain, and the other one will be discarded.

2.8.5 Types Of Double Spending Attacks

There are different types of Double Spending attacks:

 Finney Attack: Finney Attack is a type of Double spending Attack. In this, a
merchant accepts an unauthorized transaction. The original block is eclipsed by
the hacker using an eclipse attack. The transaction is performed on an
unauthorized one. After that, the real block shows up and again the transaction is
done automatically for the real block. Thus the merchant loses money two times.
 Race attack: is an attack in which there is a ‘race’ between two transactions. The
attacker sends the same money using different machines to two different
merchants. The merchants send their goods but transactions get invalid.
 51% Attack: This type of attack is prevalent in small blockchains. Hackers usually
take over 51% of the mining power of blockchain and therefore can do anything of
their own will.

2.8.6 Disadvantages of Blockchain Concerning Double Spending

There are many disadvantages of blockchain concerning Double Spending:

 Control of the blockchain: The biggest disadvantage is if the hackers manage to
take control of 51% computation power, they can do any transaction of their own
will and can steal other users’ money. Therefore there is a threat to security as
millions and millions of money are involved in transactions.
 Alteration of information: Transaction information can also be altered by
hackers. They can mine blocks and hide the original blocks using attacks like
Eclipse attack, Finney Attack, etc.
 No authority: The third major problem is no central authority is present to verify
the transactions. But these problems will be eliminated if companies take proper
security measures and users are also aware of the measures.

2.9 BlockChain and Digital Currency

Blockchain and cryptocurrencies are two terms often used interchangeably. However,
there is a big difference between the two. Cryptocurrencies are digital currencies that
use blockchain as a ledger for storing records of crypto transactions. However,
blockchains have many uses beyond cryptocurrencies, including storing and accessing
medical data, supply chain and logistics information, and financial records.
What is Blockchain?

A blockchain is a collection of records or an electronic database, like a spreadsheet. A

blockchain holds larger amounts of information, such as cryptocurrency transaction
records, stored in “blocks” or groups, unlike a regular spreadsheet.
These blocks are distributed across multiple computers or a “distributed ledger.” Once
each block reaches its storage limit, it is “chained” to a block filled previously, and a new
block comes into use.

What is Cryptocurrency?

Cryptocurrency is digital money with market value like other currencies.

Cryptocurrencies can also be used as a store of value like gold. The first cryptocurrency
was Bitcoin which pioneered blockchain technology.

2.9.1 Similarities Between Blockchain and Cryptocurrency

Intangible
Both blockchain and cryptocurrencies are intangible. Cryptocurrencies are intangible
digital tokens, which you cannot hold physically like the US dollar or the Indian rupee.
The blockchains used for storing cryptocurrencies do not exist in a single place or one
physical data centre.
Advanced
Both blockchain and cryptocurrencies are technological advancements. Blockchain is
the underlying technology behind cryptocurrencies. Blockchain is much more advanced
and secure than traditional databases. Cryptocurrencies are technologically advanced
than physical or paper-based currencies.
Interdependent
Blockchain came into existence to record transactions of bitcoin, the world’s first
cryptocurrency. All major cryptocurrencies have blockchains for recording transactions.
If someone buys a new bitcoin, it is recorded in a bitcoin blockchain.
2.9.2 Differences Between Blockchain and Cryptocurrency

Inherent Nature
Blockchain is a storage technology used for saving data on decentralized
networks. Cryptocurrency is a medium of exchange like the US dollar. A blockchain can
be used for storing different types of information beyond cryptocurrency transaction
records.
Monetary Value
All cryptocurrencies have a monetary value. You must have heard of Bitcoin hitting a
high of 65,000 dollars (around 48 lac rupees) or Ether reaching 4,000 dollars (about 3
lac rupees). A blockchain does not have any monetary value.
Usage
Blockchain technology has uses beyond cryptocurrencies. Blockchain can be used for
recording transactions in banking, healthcare, supply chain, and retail. Cryptocurrency
is digital money, which can be used for buying goods and services and for investment.
Mobility
Blockchain technology is decentralized and distributed all over the world. There is no
single location where all records of a blockchain are stored. Cryptocurrencies, although
held in blockchains, can be accessed via mobile wallets. If you have a bitcoin wallet,
you can use it anywhere for transacting with parties accepting bitcoins.
Transparency
Blockchain, being a public ledger, is highly transparent. Anyone can join a blockchain
network and view the information available. On the other hand, cryptocurrencies offer
anonymity. So, while anyone can see the source/destination of a bitcoin transaction, no
one can know who is behind the transaction.
2.10 Transactional Blocks

Blockchain technology is mostly about the transactions that we make digitally for
ourselves. Eventually, these transactions make their way to the various blocks that
become part of the Blockchain later on. So, it is important to understand
the transaction life cycle in Blockchain technology.
This lifecycle follows the journey of a single transaction as it makes its way through
each stage in the process of joining the blockchain. Transaction in simple words is the
process of sending money by the sender and the receiver receiving it. The Blockchain
transaction is also quite similar, but it is made digitally.
Let us understand the various stages in a blockchain transaction life cycle with the
help of an example.
Sourav and Suraj are two Bitcoin users. Sourav wants to send 1 bitcoin to Suraj.
1. First, Sourav gets Suraj’s wallet address (a wallet in the blockchain is a digital
wallet that allows users to manage their transactions). Using this information, he
creates a new transaction for 1 bitcoins from his wallet and includes a transaction
fee of 0.003 bitcoin.
2. Next, he verifies the information and sends the transaction. Each transaction that is
initiated is signed by a digital signature of the sender that is basically the private
key of the sender. This is done in order to make the transaction more secure and
to prevent any fraud.
3. Sourav’s wallet then starts the transaction signing algorithm which signs his
transaction using his private key.
4. The transaction is now broadcasted to the memory pool within the network.
5. This transaction is eventually accepted by the miners. These miners, group this
transaction into a block, find the Proof of Work, and assign this block a hash
value to be mapped into the blockchain.
6. This block is now placed on the Blockchain.
7. As this block gains confirmation, it is accepted as a valid transaction in the
network.
8. Once this transaction is accepted, Suraj finally gets his bitcoin.
The below diagram is a pictorial representation of the various stages in a transaction
life cycle as discussed above.
2.11 Impact of Blockchain Technology on Cryptocurrency

2.11.1 Impact of Blockchain Technology in Cryptocurrency Industry

 The first and best-known cryptocurrency is based on blockchain technology. It

serves as a public record of transactions. Toshi envisioned peer-verified
electronic cash that would enable transfers of money between two parties without
a third party such as a bank.
 Blockchains consist of a series of cryptographically connected records or blocks.
Blocks contain transaction data (like date, time, and amount) and
cryptographically secure unique electronic addresses for each party. The league
is also uniquely identified by a code called a “hash”. Everyone has a copy of the
entire transaction history on Bitcoin’s blockchain. As a result of hashes linking
each block in the chain to the previous and following blocks, the transaction is
public and unalterable. Transaction details and parties to the transaction are
private.
 As a result of a complex mathematical problem, every computer in the blockchain
network is tasked with verifying a transaction between two parties. A block can
only be added to the chain once the verification is complete. This is one reason
blockchain eliminates an intermediary when performing monetary transactions.
 One application of blockchain technology is as a foundation for electronic
currencies.

2.11.2 Impact of Blockchain Technology in Finance Industry

 Financial services adopt blockchain technology, which has revolutionised the global
financial system, making it safer and more efficient. International financial services are
gaining many benefits from blockchain technology. “Cross-border settlements” are the
main benefit of blockchain, which involves the creation of a global network using
blockchain that is highly cost-effective and potentially transparent at the same time. The
service seekers are provided with additional value and undercutting costs through it.

 Quicker settlement in stock markets

 Asset Management

 Efficient Payments

 Improved compliance processes

 Fair and fraud-free claim management in insurance
2.11.3 Impact of Blockchain Technology in Banking Industry
Through the advent of Internet finance, Yu ‘ebao, P2P and third-party payment
platforms, the financial disintermediation process has been accelerated. As a result of
this asset-light and service-heavy model, Commercial Banks’ traditional financial
business has been negatively impacted, and a reform of the traditional banking industry
is imminent. As a result of user demand and market competition, conventional banks
offer Internet finance. However, the results are not optimal. Traditional banks are also
looking for new technologies and ways to speed up the Internet.

2.11.4 Impact of Blockchain Technology in Manufacturing Industry

 Consumers can identify which products are made by a particular brand, reducing

counterfeits and ensuring authenticity.

 An organisation becomes more responsive and transparent as a result.

 Asset tracking is possible with it for manufacturing companies.

 Assuring quality is made easier through it.

 Compliance with regulatory requirements is improved.

 An organisation can trace contamination to its source quickly with this technology.

2.11.5Impact Of Blockchain Technology On Supply Chain

Blockchain Technology On forward-thinking Supply chains have already realised the

benefits of blockchain and are implementing it into their processes.
 Below are just a few ways that show the use of Blockchain in supply chain
management:
 Transparent resource movement
 Tracking goods and connecting tracking methods
 Blockchain for Supply chain information is shared between relevant parties

2.11.6 Impact of Blockchain Technology in Healthcare

Blockchain is a relatively new and emerging technology that has been used successfully
in healthcare for many years. All prominent members of the network and healthcare
providers participate in smooth, efficient data sharing and delivery, which contributes to
the development of economical therapies and sophisticated treatments for various
diseases. In the coming years, the growth in healthcare will accelerate. A recent report
shows that Blockchain technology offers advantages to the logistics sector and the
healthcare sector.
 A patient’s information is stored.
 Analyse whether a particular procedure had an effect
 Valuation
 Ensure safety and transparency
 Maintaining health records
 The clinical trial

2.11.7 Impact of Blockchain Technology in the Food Industry

The food industry can use blockchain in various ways. Blockchain has several lucrative
uses, which you will see.

 Improving Food Traceability

 Ensuring Food Safety
 Food Industry Supplier Selection
 Meeting Operational Demands
 Improved Inventory Management
 Prevents Price Coercion
 Eliminating Counterfeit Products
 Reducing Food Waste
 Provide Food Supply Chain Provenance
 Proving Label Claims