Fundamentals of Block chain Technology
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This document provides an overview of block-chain technology and how it works. It explains that block-chain was originally created for Bitcoin as a digital ledger that distributes transaction data across a network of computers. Each computer holds a copy of the ledger and transactions are verified through consensus protocols. This makes the records more secure and transparent than a centralized system by preventing fraudulent transactions. The document also discusses how block-chain could improve online transactions by lowering security risks and errors through its distributed structure.
Fundamentals of Block chain Technology
- 1. Concept of Block-Chain technology Mob- 9090949732 Mail- sspritamrath93@gmail.com · Linked in :- www.linkedin.com/in/subham-preetam-97b2b0148 Researchgate ID:- https://www.researchgate.net/profile/Subham_Preetam2
- 2. OMPRAKASH PAHI TAPAN KU. DAKUA SUBHAM PREETAM Dear all This slide are created in gathering different journals, for basic fundamentals about how block chain helps in day-today life and in the field of crypto currency production. For any information contact us. Thanks SOA University SOA UniversityUtkal University
- 3. Ingenious invention of a person known as Satoshi Nakamoto. Originally devised for the digital currency, Bitcoin. A spreadsheet that is duplicated thousands of times across a network of computers which is regularly updated. Information held on a blockchain exists as a shared — and continually reconciled — database
- 4. What is Block-Chain technology • Cryptocurrencies work on the block-chain technology, and this technology is being seen as the way of the future transactions. • Block-chain technology is simply a digital ledger created for transactions. • It was originally written for Bitcoin. • This technology distributes transactional data transparently through a series of interconnected systems or computers.
- 5. How does this technology works • Instead of relying on a third party controller, transactions in this technology are mediated by participants using a consensus protocol on ledger content (pre-agreed rules). • They transaction integrity is maintained by using cryptographic hashes and digital signatures. • The shared ledgers here are identical, based on the established consensus, which lowers the risk of fraudulent transactions.
- 6. Why use Blockchain technology • There are two big changes this technology promises to bring in the online transactions avenue. – Firstly, it lowers the risk of information theft or misuse, owing to its structure of the peer-to-peer network. – Secondly, in case of an error in a certain transaction, the remaining computers in the network can easily overrule the faulty one preventing the probability of fraudulent transactions considerably. • Unlike traditional technologies, where a central server manages or stores all the data, becoming highly vulnerable to security attacks, block-chain technology actually distributes the data using cryptography, which in turn secures sensitive information. • Hence, with block-chain technology, all the data is being stored on a series or a network of computers connected to each other, rather than on a single central server. • So if one computer from the whole network is corrupted or attacked, a timestamp stored on another computer in the chain or network can counteract its effect. • Beyond security benefits, this technology also offers a more democratic and transparent, data distribution method across supply chains.
- 7. Current Monetary System EVOLUTION OF MONETARY SYSTEM
- 9. Issues with the current System • Double Spending • Fake digital certificates are used to initiate fake transactions without enough balance • Standard Transaction Fees • Transaction Delays
- 13. A block records some or all if the recent transactions and completed ones are added in to the blockchain as permanent database and a new block is generated.
- 15. Public Key Cryptography is used for encryption Sender + Receiver + amount of Bitcoins to be send > hashed to particular hash value Apart from this there is a Digital Signature ( Hashed value of private Key and amount of bitcoins ) Decrypt these values and compared to ensure the data is secure
- 16. Peer to Peer Network Node is anyone associated with the block Chain system Full Node – Complete block chain and ledger Minor Node – People who validate transaction and builds new node
- 19. What is BITCOIN NEWMODE OF TRANSACTION
- 20. First Decentralized Cryptocurrency Uses cryptography to control its creation and management Various cryptography technologies and mathematical algorithms for creating Bitcoins are very complicated Total Bitcoins are limited to 21 Million Last bitcoin will be mined only by 2040
- 22. Thank You