1. Introduction to
Blockchains
An innovative distributed ledger technology that securely records
digital transactions.
https://www.youtube.com/watch?v=SSo_EIwHSd4
2. Basic concepts of blockchains
A blockchain is a decentralized, distributed ledger that records transactions across multiple
computers. It's transparent, secure, and immutable due to cryptographic techniques. Each block
contains a hash of the previous block, creating a chain of blocks. Transactions are validated by
consensus algorithms.
3. How Blockchains Work
1 Data Encryption
Information is encrypted into blocks using complex mathematical
algorithms for security.
2 Distributed Ledger
Blocks are added to a decentralized ledger, ensuring transparency and
immutability.
3 Consensus Mechanism
Nodes in the network participate in reaching consensus to validate and
add new blocks.
Proof of Work: https://www.youtube.com/watch?v=M3EFi_POhps
4. Key components of a blockchain
Decentralization
Blockchain operates on a
decentralized network,
eliminating the need for a
central authority.
Each node in the network
holds a copy of the entire
blockchain, ensuring
transparency and security.
Consensus Mechanism
Blockchains use consensus
algorithms such as Proof of
Work or Proof of Stake to
validate transactions.
This ensures agreement and
authenticity without the
need for trust between
parties.
Immutability
Once data is recorded on
the blockchain, it cannot be
altered or deleted,
providing a tamper-proof
record.
Smart contracts and
cryptographic hashing
contribute to this crucial
feature.
5. Benefits of using blockchains
Security
Blockchains offer high levels of security
through cryptographic techniques,
making data tamper-resistant and
ensuring transparency.
Transparency
Transactions are visible to all participants,
promoting trust and accountability in the
system.
Decentralization
Decentralized nature eliminates the need
for intermediaries, reducing costs and
single points of failure.
Efficiency
Streamlines processes, reduces
settlement times, and minimizes
dependencies on manual reconciliation.
6. Use cases of blockchains in various
industries
Digital Identity
Verification
Blockchain technology is
utilized for secure digital
identity verification in
industries such as finance
and healthcare.
Transparent Supply
Chain Tracking
Blockchain ensures
transparency in supply chain
tracking, reducing fraud and
ensuring authenticity of
products.
Decentralized Energy
Trading
Blockchain enables
decentralized energy trading
networks, promoting
efficiency and sustainability
in the energy sector.
7. Challenges and Limitations of Blockchains
Scalability
Blockchains face challenges with
processing a high number of transactions
per second, limiting their scalability.
Security Concerns
Vulnerabilities in smart contracts and
potential privacy issues pose security
challenges for blockchains.
Regulatory Uncertainty
The evolving regulatory landscape presents
uncertainty for blockchain adoption across
different jurisdictions.
Interoperability
Integration with existing systems and
cross-chain communication remains a
major challenge for blockchain networks.
8. Comparison of Blockchains with
Traditional Databases
• Security: Blockchain offers enhanced security through consensus mechanisms and
immutability, while traditional databases are more vulnerable to unauthorized access.
• Decentralization: Blockchains operate in a decentralized manner, eliminating the need for a
central authority to manage data, unlike traditional databases.
• Transparency: Blockchain provides a transparent and tamper-resistant ledger, whereas
traditional databases may lack transparency and be subject to manipulation.
9. Tools and Technologies Used in
Blockchain Development
Cryptographic
Hash Functions
Essential for securing data integrity and
creating digital signatures.
Different blockchains use different
cryptography algorithms. The Bitcoin
blockchain uses the SHA256 algorithm, which
produces a 32-byte hash. Dogecoin and
Litecoin both use Scrypt, which is one of the
faster and lighter cryptography algorithms.
Smart Contracts
Self-executing
contracts with the
terms directly
written into code.
https://
www.youtube.com/
watch?v=ZE2HxTmxfrI
Consensus
Algorithms
Mechanisms for
achieving agreement
on a single data
value.
Distributed
Ledger
Technology
Decentralized and
transparent records
across multiple
nodes.
10. Resources for further learning about
blockchains
To continue learning about blockchains, consider using a combination of online courses, academic
journals, and industry-specific publications. Look for reputable educational platforms offering
courses in blockchain technology, and explore research papers and articles that delve into the
latest advancements and challenges in the field.
