Blockchain - Copy

Group 4
Blockchain
Breakdown
Cryptocurrency
& Tokens
Introduction
to Blockchain
Blockchain Smart
Applications Contracts
Blockchain
Blockchain technology has revolutionized the way we
perceive data management and secure transactions in
the digital age
Blockchain is a distributed ledger technology that

enables secure, transparent, and decentralized
record-keeping of transactions across a network of
computers.
In simpler terms, it's like a digital ledger or

database that stores information (such as
transactions or records) in a series of blocks. Each
block contains a list of transactions, a timestamp,
and a reference to the previous block, forming a
chain of blocks—hence the name "blockchain."
How it works
Objectives
 Decentralization
 Transparency
 Security
 Efficiency
 Compability
 Immutable Record Keeping
 Financial Inclusion
Historical
Background
The historical background of
blockchain traces back to the
early 1990s when the concept of
a cryptographically secure
chain of blocks was first
proposed
Satoshi Nakamoto
- is the name used by the presumed
pseudonymous person or persons who
developed Bitcoin in 2009, authored the
bitcoin white paper, and created and
deployed bitcoin's original reference
implementation.
Since the initiation of Bitcoin and the subsequent
introduction of Ethereum, blockchain technology has
rapidly evolved, inspiring diverse cryptocurrencies
and projects, with applications spanning finance,
supply chain management, healthcare, real estate,
and more, leveraging its core features of
decentralization, transparency, security, and
immutability, although challenges like scalability,
regulation, and environmental impact persist,
prompting ongoing research and development to
maximize blockchain's potential.
Evolution of blochain
Bitcoin and Proof of Work (PoW):
Bitcoin introduced the concept of blockchain as a

decentralized ledger to record transactions.
Altcoins and Diversification:
Following Bitcoin's success, numerous alternative

cryptocurrencies (altcoins) emerged, each with its own
variations of blockchain technology. These altcoins
introduced new consensus mechanisms, such as Proof of
Stake (PoS), Delegated Proof of Stake
Smart Contracts and Ethereum:
Ethereum, launched in 2015, revolutionized blockchain

technology by introducing smart contracts, which are self-
executing contracts with the terms of the agreement
directly written into code. This enabled the development
of decentralized applications (DApps) and expanded
blockchain's use cases beyond simple transactions.
Enterprise Adoption and Permissioned Blockchains:
Enterprises recognized the potential of blockchain

technology for various applications, leading to the
development of permissioned or private blockchains.
Interoperability and Scalability Solutions:
As blockchain technology matured, interoperability and

scalability became pressing issues. Projects like Cosmos,
Polkadot, and interoperability protocols such as
Interledger aimed to facilitate communication and data
exchange between different blockchain networks.
Regulatory Developments:
Governments and regulatory bodies worldwide began to

address the legal and regulatory framework for blockchain
and cryptocurrencies.
Emerging Trends:
Recent trends in blockchain technology include the rise

of decentralized finance (DeFi), non-fungible tokens
(NFTs), and blockchain-based gaming.
Focus on Sustainability:
With growing concerns about the environmental impact of

blockchain networks, particularly those using Proof of
Work (PoW) consensus mechanisms, there has been an
increased focus on sustainability.
BLOCKCHAIN
APPLICATIONS &
USE CASES
Blockchain technology has been a matter of
discussion for quite a while now as it is
becoming more prevalent in industries of
almost every sector. This widespread use of
blockchain is due to its extraordinary features
that have the potential to resolve several
complications faced by industries during their
operations.
INDUSTRIES THAT
UTILIZES
BLOCKCHAIN
01
HEALTHCARE
"There are a number of potential use cases:
managing electronic medical record data,
protecting healthcare data, safeguarding
genomics information, and tracking disease
and outbreaks, to name some," said David
Brown, science and program director at
Qatar Precision Medicine Institute.
● One of the health sector’s major
issues is securing personal and
sensitive medical data and records.
692 large data breaches in the
healthcare sector were recorded
between July 2021 and June 2022.
The miscreants stole payment
information as well as health and
genomic records. For this reason,
many hospitals have shifted their
record systems to the blockchain.
Blockchain reduces the need for several
middlemen and authorities. This cuts
down costs charged by these agencies
and reduces human errors. Blockchain-
based records maintain patients’ privacy
as their data can be shared strictly with
authorized personnel.
02
FINANCE AND BANKING
Finance is another area where
blockchain is finding new
applications exponentially. Various
multinational companies are
continuously adopting
cryptocurrencies for financial
transactions.
Blockchain provides more security
and transparency than conventional
methods. Blockchain is a shared
ledger that is visible to everyone.
This ensures transparency among
the network members.
Every information added to the
ledger is modified by a maximum
number of participants. Also, one
can update or modify records
without the consensus of the
majority of the participants. This
ensures security, clarity, and
prevention of fraud.
The automation provided by
blockchain helps reduce costs and
time requirements. Banking systems
also use blockchain for client
onboarding, anti-money laundering,
and fraud protection.
Kapur said blockchain is already used in many
real-world banking applications, "including
contract management, real-time transparency,
calculations and reporting, inventory
management, procurement, funds traceability,
lending and borrowing, digitizing assets,
cryptocurrencies, reconciliation and settlements
[for securities and commodity trades], and
secure land registries."
03
SUPPLY CHAIN
MANAGEMENT
Blockchain technology is used to track
and trace products throughout their life
cycle. This reduces the odds of fraud
and corruption. The “trustless” nature of
blockchain helps resolve trust issues
between stakeholders in the supply
chain.
Blockchain can also be used to track
the conditions of the products, like
temperature. If a medicine or food
product is shipped at a particular
temperature, it can be monitored
throughout its journey to ensure the
consumer receives a safe and quality
product.
04
GOVERNMENT
The record-keeping power of
blockchain enables governments to
efficiently store identity information
like birth and death dates, marital
status or property transfers, etc., on
encrypted identity wallets, enabling
security, control, and streamlining
attestations.
05
AGRICULTURE
Blockchain technology is also highly significant for the
agriculture industry as it improves efficiency, trust, and
transparency. It can track and record information about
plants, seed quality, crop growth, and the entire supply
chain, enhancing transparency and eliminating concerns
related to illegal operations and unethical practices.
Blockchain also aids in tracking contamination and
facilitating recalls.
SPECIFIC EXAMPLES OF BLOCKCHAIN
IMPLEMENTATIONS IN DIFFERENT SECTORS
- Money Transfer
- Smart Contract
- Internet of Things (IoT)
- Personal identity security
- Healthcare
- Logistics
- Non-fungible tokens (NFTs)
- Government
ADVANTAGES OF BLOCKCHAIN
• Immutability - Blockchain supports
immutability, meaning it is impossible to erase
or replace recorded data. Therefore, the
blockchain prevents data tampering within the
network.
• Transparency - Blockchain is
decentralized, meaning any
network member can verify data
recorded into the blockchain.
Therefore, the public can trust the
network.
• Censorship - Blockchain technology is free from
censorship since it does not have control of any
single party. Therefore, no single authority
(including governments) can interrupt the operation
of the network.
• Traceability - Blockchain creates
an irreversible audit trail, allowing
easy tracing of changes on the
network.
DISADVANTAGES OF
BLOCKCHAIN
• Speed and performance - Blockchain is
considerably slower than the traditional database
because blockchain technology carries out more
operations. First, it performs signature
verification. Blockchain also relies on a
consensus mechanism to validate transactions.
Finally, there is redundancy, where the network
requires each node to play a crucial role in
verifying and storing each transaction.
• High implementation cost -
Blockchain is costlier compared to
a traditional database. Additionally,
businesses need proper planning
and execution to integrate
blockchain into their process.
• Data modification - Blockchain
technology does not allow easy
modification of data once recorded, and it
requires rewriting the codes in all of the
blocks, which is time-consuming and
expensive. The downside of this feature
is that it is hard to correct a mistake or
make any necessary adjustments.
Cryptocurrency
In the digital age, the emergence of
cryptocurrencies and tokens has transformed the
landscape of finance, ushering in a new era of
decentralized and digitized assets.
Cryptocurrency - as the name suggests, is a

digital or virtual form of currency secured by
cryptographic techniques and operated on
decentralized networks known as blockchains.
Unlike traditional fiat currencies issued by
governments, cryptocurrencies are not governed
by any central authority, relying instead on
distributed ledger technology to record
transactions and maintain transparency.
Tokens
Tokens - while often associated with
cryptocurrencies, represent a broader spectrum
of digital assets within the blockchain
ecosystem. Unlike cryptocurrencies, which
operate as standalone currencies, tokens are
created and distributed on existing blockchain
platforms, such as Ethereum or Binance Smart
Chain.
In summary, while cryptocurrencies operate
as digital currencies on their own
decentralized networks, tokens are digital
assets or representations of value that
are built on existing blockchains and can
have various use cases beyond being a
medium of exchange.
Differences between
Cryptocurrencies and
traditional currencies
Decentralization vs.
Centralization
Differences
Centralization
Traditional currencies
are centralized and
001
issued by governments or
central banks.
Decentralization
Cryptocurrencies are
decentralized, meaning they
operate on distributed networks
without a central authority like
a government or central bank
overseeing transactions.
Issuance and
Supply
Differences
Supply
Traditional currencies are issued by
central banks, which have the
authority to print or mint
002 additional currency as needed to

regulate the economy.
Issuance
Cryptocurrencies typically have a
predetermined issuance schedule and a
maximum supply cap, ensuring scarcity
and often deflationary characteristics.
For example, Bitcoin has a maximum
supply of 21 million coins.
Transaction
Speed and
Accessibility
Differences
Accessability
Traditional currency transactions
may involve intermediaries such as
banks or payment processors, which
003 can result in slower settlement

times and higher transaction fees,
particularly for international
Transaction Speed transfers.
Cryptocurrency transactions are

typically faster and can be
conducted globally with minimal
friction, enabling cross-border
transactions and financial
inclusion.
Anonymity
and
Privacy
Differences
Privacy
Traditional currency transactions are
often more transparent, with financial
institutions required to adhere to Know
004
Your Customer (KYC) and Anti-Money
Laundering (AML) regulations, which may
involve collecting and verifying personal
information.
Anonimity
Cryptocurrency transactions can
offer a higher degree of anonymity
and privacy, as participants are
identified by cryptographic
addresses rather than personal
information.
Security
And
Trust
Differences
Trust
Traditional currencies rely on
trust in government institutions
and financial intermediaries to
005 maintain stability and security,
although incidents of
counterfeiting and financial
Security fraud can still occur.
Cryptocurrencies rely on
cryptographic techniques and
decentralized consensus mechanisms
to ensure the security and
integrity of transactions, making
them resistant to censorship and
fraud.
How cryptocurrencies are
created, transacted, and
stored.'
Creation
Cryptocurrencies are typically created through a process
called mining, which involves participants (miners) solving
complex mathematical puzzles to validate and record
transactions on the blockchain. This process requires
computational power and consumes energy.
The first cryptocurrency, Bitcoin, introduced the concept of

mining, where miners compete to add new blocks of transactions
Creation to the blockchain in exchange for rewards in the form of newly
minted bitcoins and transaction fees.
Some cryptocurrencies, like Bitcoin, have a predetermined

issuance schedule with a maximum supply cap, ensuring scarcity
and often deflationary characteristics. Others may have
different issuance mechanisms, such as pre-mining or token
sales.
transaction
Cryptocurrency transactions are conducted peer-to-peer on
decentralized networks using digital signatures and
cryptographic keys to secure and authenticate transactions.
To initiate a transaction, a sender creates a digital wallet

and signs the transaction with their private key, which is a
secret cryptographic code known only to them. The transaction
is then broadcasted to the network.
Transaction
Miners or validators in the network verify the transaction and
add it to a block in the blockchain. Once confirmed, the
transaction is irreversible and becomes part of the immutable
blockchain ledger.
Cryptocurrency transactions can involve the transfer of value

(e.g., sending bitcoins to another user), executing smart
contracts (e.g., on Ethereum), or interacting with
decentralized applications (DApps).
Storage
Cryptocurrencies are stored in digital wallets, which can be
software-based, hardware-based, or even paper-based.
Software wallets, also known as hot wallets, are applications

or software programs that store cryptographic keys on a device
connected to the internet, such as a computer or smartphone.
Hardware wallets are physical devices that store cryptographic

keys offline, providing an additional layer of security
storage against hacking and malware. Examples include Ledger Nano S
and Trezor.
Paper wallets involve printing out the public and private keys
on a piece of paper, which can be physically stored in a
secure location. While paper wallets offer offline storage,
they require careful handling to prevent loss or damage.
It's essential to securely manage and backup cryptographic
keys, as losing access to the keys can result in the loss of
funds stored in the associated wallet.
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SMART
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CONTRACTS
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ランダム 00778 0000111 What is Smart Contracts

Smart contracts are essentially computer programs that run
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on a blockchain network. They automate the execution of

agreements according to predefined terms. 2
Think of them as vending machines for agreements: you

put in the conditions, and when those conditions are met,
the predetermined action happens automatically.
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Smart Contracts and their role in

Blockchain Technology
Imagine a digital agreement that automatically executes itself when certain
conditions are met. That's the essence of a smart contract on a blockchain.
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Smart Contracts: Self-executing programs stored on a blockchain that

enforce the terms of an agreement.
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Deeper Dive into Smart Contracts

Key Characteristics:
Self-executing: The code automatically executes the agreed-upon action

when specified conditions are met.
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Immutable: Once deployed on the blockchain, the code cannot be changed.

This ensures security and tamper-proof execution.
2
Transparent: Anyone on the blockchain network can view the contract's

terms and execution history.
How they work: Writing the contract: The agreement is coded in a specific
language like Solidity, outlining the terms and conditions
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“Solidity” is the dominant programming language used for creating smart contracts,
specifically those designed for the Ethereum blockchain. It's a high-level, object-
oriented language with influences from JavaScript, C++, and Python, making it
familiar to programmers with those backgrounds.
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Deployment: The code is uploaded to the blockchain network.

2
Execution: When the predetermined conditions are met (e.g., payment received), the
code automatically executes the corresponding action (e.g., transferring ownership of
a digital asset).
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Smart Contract Uses

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Smart contracts have the potential to disrupt and streamline a

wide range of industries by enabling secure and automated
agreements.
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Smart Contracts Uses:

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Supply Chain Management

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Imagine a scenario where a shipment of goods is being transported. A smart contract can
be coded to track the movement of the goods in real-time using sensors. Once the
shipment reaches its destination and the sensors confirm its arrival, the smart contract
automatically triggers the release of payment to the seller. This eliminates the need for
manual verification and paperwork, saving time and reducing fraud. DESIGNED BY JOYDEEP
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Smart Contract Uses:

1
ESCROW SERVICES
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In traditional transactions, an escrow service holds onto funds until certain

conditions are met. Smart contracts can automate this process. The buyer deposits
the funds into the smart contract, which then holds them securely until the buyer
receives the product or service as agreed. Once confirmed, the funds are
automatically released to the seller. This eliminates the risk of fraud for both
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Smart Contract Uses:

Decentralized Finance (DeFi)
DeFi is a rapidly growing sector that aims to create an open and accessible financial system
without traditional institutions like banks. Smart contracts play a crucial role in DeFi by
enabling functionalities like:
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Peer-to-peer lending and borrowing: Borrowers and lenders can connect directly through
smart contracts, eliminating the need for banks and associated fees. 2
Automated market making: Smart contracts can be used to create decentralized exchanges
where users can trade cryptocurrencies without relying on a central authority.
Voting Systems: Smart contracts can potentially revolutionize voting by enabling secure,
transparent, and verifiable elections. Votes can be cast and recorded on the blockchain,
ensuring immutability and preventing tampering. Additionally, smart contracts can automate
vote counting and result declaration, reducing the risk of human error and fraud.
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Benefits and
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Limitations
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Benefits
Efficiency and Automation: Smart contracts automate agreement

execution, streamlining processes and reducing manual intervention.
This saves time and minimizes errors compared to traditional paper-
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Security and Immutability: Stored on a

blockchain, smart contracts benefit from the
inherent security features of this technology. The
code is tamper-proof and cannot be altered once
deployed, ensuring the integrity of the agreement.
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Transparency and Trust: All participants on the blockchain network can

view the terms and execution of a smart contract. This transparency
fosters trust as everyone involved has a clear view of the agreement.
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Reduced Costs: By eliminating intermediaries like lawyers or escrow

services, smart contracts can potentially reduce transaction costs
associated with traditional agreements.
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Limitations
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Complexity and Coding Expertise: Writing secure and functional smart contracts
requires a high level of programming expertise in languages like Solidity. This can be a
barrier for wider adoption.
Limited Functionality: While constantly evolving, smart contracts may not be suitable
for highly complex agreements that require nuanced interpretations or dispute
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resolution mechanisms.
2
Errors and Vulnerabilities: Bugs or loopholes in the code can lead to unintended
consequences or even the loss of funds. Careful code audits are crucial to mitigate
these risks.
Irreversible Mistakes: Due to the immutable nature of blockchain, errors within a smart
contract can be permanent. Recovering from such mistakes can be complex or even
impossible.
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Group 4

Blockchain is a distributed ledger technology that

In simpler terms, it's like a digital ledger or

 Immutable Record Keeping

Bitcoin introduced the concept of blockchain as a

Following Bitcoin's success, numerous alternative

Ethereum, launched in 2015, revolutionized blockchain

Enterprises recognized the potential of blockchain

As blockchain technology matured, interoperability and

Governments and regulatory bodies worldwide began to

Recent trends in blockchain technology include the rise

With growing concerns about the environmental impact of

Cryptocurrency - as the name suggests, is a

002 additional currency as needed to

003 can result in slower settlement

Cryptocurrency transactions are

The first cryptocurrency, Bitcoin, introduced the concept of

Some cryptocurrencies, like Bitcoin, have a predetermined

To initiate a transaction, a sender creates a digital wallet

Cryptocurrency transactions can involve the transfer of value

Software wallets, also known as hot wallets, are applications

Hardware wallets are physical devices that store cryptographic

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

118777 892342 238432098

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

ランダム 00778 0000111 What is Smart Contracts

on a blockchain network. They automate the execution of

Think of them as vending machines for agreements: you

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

118777 892342 238432098

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

Smart Contracts and their role in

Smart Contracts: Self-executing programs stored on a blockchain that

JD.M DESIGN © 2077

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

118777 892342 238432098

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

Deeper Dive into Smart Contracts

Self-executing: The code automatically executes the agreed-upon action

Immutable: Once deployed on the blockchain, the code cannot be changed.

Transparent: Anyone on the blockchain network can view the contract's

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

118777 892342 238432098

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

Deployment: The code is uploaded to the blockchain network.

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

118777 892342 238432098

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

Smart Contract Uses

Smart contracts have the potential to disrupt and streamline a

JD.S DESIGN © 2077

ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

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ONLY CC35 CERTIFIED AND DHSF 5TH CLASS OFFICERS

Smart Contracts Uses:

Supply Chain Management

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Smart Contract Uses:

In traditional transactions, an escrow service holds onto funds until certain

JD.S DESIGN © 2077