Government Polytechnic, Jalgaon.
Department Of Information Technology
Paper presentation By IF5I Group No.3
4.Mayuri Aswar
20.Dnyaneshwari Khatiwada
24.Rakhi Mahajan
Abstract - Blockchain, the foundation of things like digital money (cryptocurrencies like
Bitcoin, has received extensive attentions Bitcoin), and it can also help make all sorts of
recently. Blockchain serves as an immutable
ledger which allows transactions take place things more secure and transparent, like tracking
in a decentralized manner. Blockchain-based products in a supply chain or ensuring fair
applications are springing up, covering elections.
numerous fields including financial services, Logically, a blockchain is a chain of blocks
reputation system and Internet of Things
(IoT), and so on. However, there are still which contain specific information (database),
many challenges of blockchain technology but in a secure and genuine way that is grouped
such as scalability and security problems together in a network (peer-to-peer). In other
waiting to be overcome. This paper presents words, blockchain is a combination of
a comprehensive overview on blockchain
technology. We provide an overview of computers linked to each other instead of a
blockchain architecture firstly and compare central server, meaning that the whole network
some typical consensus algorithms used in is decentralized.
different blockchains. Furthermore, technical
challenges and recent advances are briefly II.ARCHITECTURE
listed. We also lay out possible future trends
for blockchain.
I .INTRODUCTION
Blockchain technology was introduced in a
whitepaper titled "Bitcoin: A Peer-to-Peer
Electronic Cash System" by an anonymous
person or group using the pseudonym Satoshi
Nakamoto. This whitepaper was published on
October 31, 2008. The actual implementation of
blockchain technology came to life with the
launch of Bitcoin, the first cryptocurrency, in
January 2009 when Nakamoto mined the
genesis block of the Bitcoin blockchain.
Blockchain is like a special kind of digital All blockchain structures fall into three
ledger that stores records of transactions or categories:
information. Imagine it as a chain of blocks, Public blockchain architecture:
where each block holds a list of these records. A public blockchain architecture means that the
What's unique is that it's not controlled by a data and access to the system is available to
single person or company but is managed by a anyone who is willing to participate (e.g.
bunch of computers all over the place. This Bitcoin, Ethereum, and Litecoin blockchain
makes it really hard for anyone to cheat or systems are public).
change the information stored in it. Everyone on Private blockchain architecture:
the network can see what's happening, which As opposed to public blockchain architecture,
makes it trustworthy. People use blockchain for the private system is controlled only by users
from a specific organization or authorized users Once a block is filled with transactions, it
who have an invitation for participation. undergoes a validation process before being
Consortium blockchain architecture: added to the blockchain.
This blockchain structure can consist of a few
organizations. In a consortium, procedures are Chain:
set up and controlled by the preliminary A blockchain is composed of a sequence of
assigned users. blocks linked together in a specific order,
creating a chain.
III.WORKING The chronological order of blocks ensures the
integrity and immutability of the data on the
blockchain.
Each block contains a reference (hash) to the
previous block, forming a continuous chain of
blocks.
Miners:
Miners are specific nodes in the network
responsible for adding new blocks to the
blockchain.
They compete to solve complex mathematical
puzzles in a process known as proof-of-work
(PoW) or use other consensus mechanisms.
Once a miner successfully validates transactions
and creates a new block, it broadcasts it to the
Node: network for verification.
A node can be a user or a computer connected
to the blockchain network. Consensus (Consensus Protocol):
Each node maintains an independent and Consensus is a critical component that ensures
complete copy of the entire blockchain ledger. all nodes in the network agree on the validity of
Nodes participate in the validation and transactions and the order of blocks.
verification of transactions and blocks. Different blockchains use various consensus
protocols, such as PoW (used by Bitcoin),
Transaction: Proof-of-Stake (PoS), Delegated Proof-of-Stake
Transactions are the fundamental units of data (DPoS), and more.
in a blockchain. Consensus protocols define rules and
They represent various actions or exchanges of arrangements for how nodes reach agreement,
value (e.g., sending cryptocurrency, recording preventing double-spending and maintaining
information, or executing a smart contract). network security.
Transactions contain sender and receiver
addresses, the amount transferred, and a digital IV.FUNCTIONS
signature for security.
Transparency - Blockchain is secured by
Block: cryptography which increases its standard of
A block is a data structure used to group a set of transparency on data and information.
transactions together. Transparency is the most demanded approach in
Blocks store a fixed number of transactions and every sector where service, product and
additional data, including a reference to the consumer, and provider and producer
previous block (creating a chain) and a relationships are obtained.The major industries,
timestamp. which are adding Blockchain in their business
are healthcare, supply chain, and financial 2. Decentralization: Blockchain operates on a
institutions where data is the key asset for decentralized network of computers, known as
further development. nodes. This eliminates the need for a central
authority, reducing the risk of a single point of
Integrity - Data security is the priority of every failure and making the system more resilient to
company. Tempering, altering, and distributing attacks and downtime.
data without permission is illegal. It deters some 3. Cost Reduction: By eliminating
major companies, forcing them to look for other
intermediaries and automating processes,
options of data security. Blockchain with its
blockchain can reduce transaction costs. This is
decentralization option creates a transparent
look of data, where users can look for the particularly relevant in industries such as
information and track the changes. finance, where traditional financial institutions
To ensure the companies, these providers use can impose significant fees.
non-reversible signatures on data so that it 4. Data Privacy: Users have control over their
becomes more authentic and trustable. own data on the blockchain. They can choose
what information to share and with whom,
Cost-efficient - Companies are investing loads enhancing data privacy and ownership.
of money on record security and maintenance,
which is very costly and time-consuming. With
the help of Blockchain, records would be more VI.DISADVANTAGES
secure and easy to search whenever needed.
Decentralization also creates transparency While blockchain technology offers many
between companies, firms, and business advantages, it also has several disadvantages
partners so there are no obligations, and and challenges that need to be considered:-
everyone can look out for records information
individually. 1. Scalability Issues: Blockchain networks,
especially public ones like Bitcoin and
Time-efficient - Most financial institutions and Ethereum, can struggle to handle a large
companies are still moving with the old and number of transactions quickly. This can
manual paper process, where records are lead to slower processing times and
contained in registers, which are not secured for increased fees during times of high demand.
the long term. It is also difficult to find 2. Irreversible Transactions: While
information in these paper-based records. immutability is a strength, it can also be a
Blockchain makes records digital and easy to weakness. If a mistake is made or a
use in long term. fraudulent transaction occurs, it can be
challenging or impossible to reverse or
V.ADVANTAGES correct the error.
3. Complexity: Blockchain technology is
Blockchain technology offers several
complex, and understanding and
advantages, which have contributed to its
growing popularity and adoption across various implementing it correctly can be
industries. Here are some of the key advantages challenging. This complexity can deter
of blockchain technology:- some businesses from adopting it.
1. Security: Blockchain uses advanced 4. Human Error: As with any technology,
cryptographic techniques to secure data and human errors can occur when setting up or
transactions. Once information is recorded on managing blockchain systems. These errors
the blockchain, it becomes extremely difficult to can result in the loss of assets or security
alter or delete, providing a high level of data breaches.
integrity and protection against fraud.
VII.REAL LIFE USES VIII.CONCLUSION
Blockchain technology has a wide range of The Bitcoin is the first successful
real-life uses across various industries due implementation of blockchain. Blockchain,
to its unique features such as security, mostly known as the backbone technology
transparency, and immutability. Here are behind Bitcoin, is one of the most intriguing
some practical and real-life applications of technologies currently in the market. Similarly
blockchain technology: to the rising of the internet, blockchain has the
potential to truly disrupt the multiple industries
1. Cryptocurrencies: Beyond Bitcoin, and make startup companies, investors, global
many other cryptocurrencies and tokens organization and governments have all
have been created, each with its own use identified blockchain as a revolutionary
case. For example, Ethereum's technology. The purpose of the blockchain is
blockchain allows for the creation of to share information amongst all parties that
decentralized applications (dApps) and access it via an application. Blockchain
smart contracts, enabling a wide range of technology is still in its early stages of
financial and non-financial transactions. development, but it has the potential to
revolutionize many industries. As the
2. Supply Chain Management:
technology matures, we can expect to see even
Blockchain can be used to track and
more innovative and disruptive applications of
trace products through the entire supply blockchain.
chain. This is particularly valuable in
industries like food and pharmaceuticals, IX.REFERENCES
where transparency and provenance are
critical. • https://bernardmarr.com/35-amazing-
3. Voting Systems: Some countries and real-world-examples-of-how-
organizations are exploring blockchain blockchain-is-changing-our-world/
for secure and transparent voting
systems. It can help prevent fraud and • https://www.researchgate.net/publication
provide a verifiable record of votes. /318131748_An_Overview_of_Blockch
4. Healthcare: Blockchain can securely ain_Technology_Architecture_Consensu
store and manage patient records, s_and_Future_Trends
ensuring data accuracy, privacy, and
interoperability among healthcare • https://www.simplilearn.com/tutorials/bl
providers. ockchain-tutorial/blockchain-technology
5. Education: Academic credentials can be
stored on a blockchain, allowing for easy • https://r.search.yahoo.com/_ylt=Awr1Q
verification of diplomas and certificates. Xfd7gFl5QQWUxe7HAx.;_ylu=Y29sb
wNzZzMEcG9zAzQEdnRpZAMEc2Vj
6. Cyber security :Guard time - This A3Ny/RV=2/RE=1694654302/RO=10/R
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systems using blockchain which is fwiki%2fBlockchain/RK=2/RS=vfeYhhI
currently used to secure the health 2gktA0e9.tK3RsCjC0YY-
records of one million Estonian citizens.
