Introduction to blockchain
- 1. BLOCKCHAIN TECHNOLOGY PRESENTED BY : DIVYA KAPOOR 181416 PGDM 18-20
- 2. ๏ด The story of blockchain is tightly coupled with the story of accounting. ๏ด The single entry accounting system for the first time in human history allowed us to prove ownership of the asset. ๏ด In order to have trade, right, at the international level, we needed to have at least two authorities. ๏ด And so, we needed a new form of accounting, and that's where double entry accounting came in. ๏ด Blockchain is the very first implementation of triple entry accounting, where we have an asset being recorded on the ledger in the context of a transaction.
- 3. ๏ด The third entry and triple entry accounting is cryptography, where we have a cryptographic account of the transaction stored permanently on the ledger. ๏ด The ledger is distributed. It's decentralized. So, there's a copy of the ledger that exists on every point that exists on the network. ๏ด The code that's stored on the blockchain is a smart contract. ๏ด Again, a smart contract is a program that runs on the blockchain.
- 4. Blockchain Components ๏ด Ledger: A distributed, immutable historical record ๏ด Peer Network: Stores, updates, and maintains the ledger ๏ด Smart Contract: Program that runs on the blockchain ๏ด Wallet: Stores users' credentials ๏ด Events: Notifications of updates and actions on the blockchain
- 5. HOW IT WORKS? ๏ด When you attach a file, a Word document, an Excel sheet, a PDF to an email, you aren't sending an original. You are actually sending the recipient a copy, and that's a great way to move information around. ๏ด But it's not so great when it comes to things like money, stocks and bonds, loyalty points, intellectual property, tickets to a game or concert. ๏ด Then, sending a copy is suddenly a very bad idea. Let's look at an example: ๏ด If I send you tickets to a concert, it's important that I don't send you a copy. ๏ด You now own the original asset and I can no longer use or sell those tickets
- 6. How did we get here? ๏ด It began when Satoshi Nakamoto, whose true identity is still unknown, released a white paper in 2008, introducing a purely peer-to-peer version of electronic cash known as Bitcoin. ๏ด Even today people believe Bitcoin and blockchain are one and the same. ๏ด Bitcoin, another alternative currency, utilize blockchain technology. Bitcoin is only one use case for blockchain. ๏ด Blockchain allows people to exchange assets and perform transactions without a third party. ๏ด While traditionally we have needed central authorities to trust one another and fulfil contracts
- 7. ๏ด Assets are no longer stored in a central place, but distributed across a global ledger, using the highest level of cryptography. ๏ด These transactions are recorded as blocks. ๏ด The act of embedding a previous block of information into the current block of information is called chaining, hence, the name blockchain. ๏ด In order to hack a blockchain network, someone would have to gain control of the majority of computers in that network. This is extremely difficult to do. ๏ด There is no longer a single point of failure, and this is what makes blockchain infinitely more secure than what we have today.
- 8. TYPES OF BLOCKCHAINS ๏ด A. PUBLIC BLOCKCHAIN:A public blockchain is equivalent to the Internet, complete with the its own set of protocols, etc. ๏ด A public blockchain network is completely open and anyone can join and participate in the network. ๏ด B. PRIVATE BLOCKCHAIN : Private blockchains are more synonymous with an intranet. On the private blockchain, we have to control who can access your network. ๏ด A private blockchain network requires an invitation, and must be validated by a set of rules. Private blockchains are usually set up as permissioned networks
- 9. SUMMARY ๏ด Blockchain is already being used in many industries. Some of them are : ๏ด LifeID is using blockchain for a universal account associated with your identity. ๏ด Cook County, (USA), is using blockchain to keep land records more secure than ever before. ๏ด MedChain is using blockchain to change the way that medical records are kept, making it more secure and universal. ๏ด WALMART and IBM using blockchain for Supply chain, value chain relationships . ๏ด Smart Dubai 2021. There are so many possibilities with blockchain; yet to be discovered.
- 10. THANK YOU