BLOCKCHAI

N
• SYED ABDULLAH (21L-5311)
• SAFWAN AKBAR (21L-7556)
• UMER HABIB (21L-5199)
• FATIMA SALMAN (21L-7587)
 INTRODUCTION
A blockchain is essentially a digital ledger of transactions that is
duplicated and distributed across the entire network of computer
systems
Every time a new transaction occurs on the blockchain, a record of
that transaction is added to a participant’s ledger

Blockchain records information in a way that makes it difficult or

impossible to change, hack, or cheat the system

The decentralised database managed by multiple participants is

known as Distributed Ledger Technology (DLT)

There have been many
attempts to create digital
money in the past, but they
have always failed.
REASON FOR
SO MUCH Bitcoin was designed to solve
HYPE this problem by using a
specific type of database called
a blockchain.
AROUND
BLOCKCHAIN
Blockchain is different because
nobody is in charge; it’s run by
the people who use it.
If someone creates a new
currency called the X dollar,
how can we trust that they
won't give themselves a
million X dollars, or steal your
X dollars for themselves?
Most normal databases have
someone in charge who can
change the entries (e.g. giving
themselves a million X
dollars).
Bitcoins can’t be faked, hacked
or double spent – so people
that own this money can trust
that it has some value.
HOW BLOCKCHAIN
WORKS
 EACH
TRANSACTION
RECORDED AS
BLOCK OF DATA

TRANSACTIONS
DATA BLOCK
FORMED TOGETHER
RECORDS
TO FORM AN
INFORMATION OF
IRREVERSIBLE
YOUR CHOICE
CHAIN

EACH BLOCK
BLOCKS CONFIRM
CONNECTED TO
EXACT SEQUENCE
THE ONES BEFORE
OF TRANSACTIONS
AND AFTER IT
USES OF BLOCKCHAIN

DISTRIBUTED IMMUTABLE SMART CONTRACTS

LEDGER RECORDS
TECHNOLOGY
 USES EXPLAINED
DISTRIBUTED LEDGER
TECHNOLOGY
• All network participants
have access to the
distributed ledger.
• With this shared ledger,
transactions are recorded
only once.
• This eliminates the
duplication of effort that is
typical of traditional
business networks.
IMMUTABLE RECORDS
• No participant can change
or tamper with a
transaction after it’s been
recorded to the shared
ledger.
• If a transaction record
includes an error, a new
transaction must be added
to reverse the error, and
both transactions are then
visible.
SMART CONTRACTS
• To speed transactions, a set
of rules is stored on the
blockchain and executed
automatically.
• Set of rules called a smart
contract
• This defines conditions for
corporate bond transfers,
include terms for travel
insurance to be paid and
much more.
BENEFITS
OF
BLOCKCHAI
N

As a member of a
GREATER members-only network,
you can rest assured that
TRUST you are receiving
accurate and timely data
Your confidential
blockchain records will
be shared only with
network members to
whom you have
specifically
granted access

Consensus on data
accuracy is required from No one, not even a
GREATER all network members, and
all validated transactions
system administrator, can
delete a transaction, and
SECURITY are immutable because
they are recorded
chances of hacking are
reduced
permanently

MORE With a distributed ledger

that is shared among
To speed transactions, a
smart contract can be
EFFICIENC members of a network,
time-wasting record
stored on the blockchain
and executed
reconciliations are
IES eliminated
automatically
 Business runs
Provides
on information.
immediate,
The faster it’s
shared and
received and
IMPORTAN the more
accurate it is,
completely
transparent

CE OF
information
the better

BLOCKCH Tracks orders,

payments,
Allows to
watch all

AIN accounts,
production and
much more
details of a
transaction end
to end
INTRODUCTIO
N TO
BLOCKCHAIN
SECURITY
 BLOCKCHAIN SECURITY

In most blockchains or DLTs, Each new block connects to all

Based on principles of
Blockchain technology the data is structured into the blocks before it in a
cryptography, decentralization
produces a structure of data blocks and each block contains cryptographic chain in such a
and consensus, which ensure
with inherent security qualities a transaction or bundle of way that it's nearly impossible
trust in transactions
transactions to tamper with

All transactions within the

Blockchain technology enables There is no single point of
blocks are validated and agreed
decentralization through the failure and a single user cannot
upon by a consensus
participation of members across change the record of
mechanism, ensuring that each
a distributed network transactions
transaction is true and correct
TYPE PUBLIC
BLOCKCH
PRIVATE
BLOCKCH
S AIN AIN
 Allows anyone
to join and for Uses identity to
participants to confirm
remain membership and
anonymous access privileges

Uses internet- Achieves

PUBLI PRIVA
connected consensus
computers to through
validate "selective
transactions endorsement"

C TE
Only members
Bitcoin well-
with special
known example;
access and
achieves
permissions can
consensus through
maintain the
"bitcoin mining"
transaction ledger
THREATS
TO
BLOCKCH
AIN
• PHISHING ATTACKS:
Phishing is a scamming attempt to attain a user's credentials. Fraudsters send wallet key owners emails designed to look as
though they're coming from a legitimate source. The emails ask users for their credentials using fake hyperlinks. Having
access to a user's credentials and other sensitive information can result in losses for the user and the blockchain network.

• ROUTING ATTACKS:

Blockchains rely on real-time, large data transfers. Hackers can intercept data as it's transferring to internet service providers. In a routing
attack, blockchain participants typically can't see the threat, so everything looks normal. However, behind the scenes, fraudsters have
extracted confidential data or currencies.

• SYBIL ATTACKS:

In a Sybil attack, hackers create and use many false network identities to flood the network and crash the system. Sybil refers to a famous
book character diagnosed with a multiple identity disorder.

• 51% ATTACKS:

Mining requires a vast amount of computing power, especially for large-scale public blockchains. But if a miner, or a group of miners, could
rally enough resources, they could attain more than 50% of a blockchain network's mining power. Having more than 50% of the power means
having control over the ledger and the ability to manipulate it.
CYBERATTACKS TAKEN PLACE
CODE EXPLOITATION
The Decentralized Autonomous
Organization (DAO), a venture capital
fund operating through a
decentralized blockchain, inspired by
Bitcoin, was robbed of more than
USD 60 million worth of ether digital
currency (about a third of its value)
through code exploitation
STOLEN KEYS
A theft of nearly USD 73 million worth
of customers' bitcoins from one of the
world's largest cryptocurrency
exchanges, Hong-Kong-based
Bitfinex, demonstrated that the
currency is still a big risk. The likely
cause was stolen private keys, which
are personal digital signatures
 THANK YOU!
WE HOPE WE SUCCEEDED IN ENLIGHTENING YOU ABOUT
BLOCKCHAIN