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The Truth About Blockchain
The Truth About Blockchain
The Truth About Blockchain
Blockchain
BY MARCO IANSITI AND KARIM R. LAKHANI
What is Blockchain
◈ Originally block chain, is a continuously ◈ Blockchain is a sequence of blocks, which
growing list of records, calling blocks. It is holds a complete list of transaction
using cryptography to link and secure. records like conventional public ledger
which is illustrated in the diagram
◈ By design, block chain is inherently resistant
shown.
to modification of the data.
◈ This makes Blockchain potentially suitable for ◈ Think of Blockchain as an operating
system, such as Microsoft Windows and
the recording of events, medical records, and
bitcoin (like word or excel) as only one of
other records management activities, such as
the many applications that can be run on
identity management, transaction processing,
that operating system.
documenting provenance, food traceability or
voting.
Understanding how a Blockchain works
In case of difficulty in watching the video use the url given below
https://www.youtube.com/watch?v=SSo_EIwHSd4
Transaction processing with blockchain
1 2 3
6 5 4
The transaction is complete The new block is then added to Once verified, this transaction is
the existing Blockchain. represented as a new block.
Key characteristics of Blockchain
In conventional Transactions can Each user can Bitcoin
centralized be validated interact with the blockchain stores
transaction quickly and blockchain with a data about user
systems, each invalid generated balances based
transaction needs transactions address, which on the Unspent
Persistency:
Anonymity:
Auditability:
Decentralization:
Furthermore, we listed some challenges and problems that would hinder Blockchain
development and summarized some existing approaches for solving these problems.
Blockchain Applications
◈ Currently most blockchains
are used in the financial
domain, more and more
applications for different
fields are appearing.
◈ Traditional industries could
take blockchain into
consideration and apply
blockchain into their fields to
enhance their systems.