A

Seminar Report

On

BLOCKCHAIN TECHNOLOGY
Submitted By

<<B.JYOTHIRMAI>>
(Regd. No: <<16E91A1207>>)

Under the Esteemed Guidance of

<<D.Ashok>>
(Designation ), CSE
To
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA,
In partial fulfillment of the requirements for award of degree of

BACHELOR OF TECHNOLOGY
IN
COMPUTER SCIENCE & ENGINEERING
2016 – 2020

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

CHIRALA ENGINEERING COLLEGE, CHIRALA (CECC-E9)

Ramapuram Beach Road, Chirala, PRAKASHAM (DIST) Andhra Pradesh, -523157
(Affiliated to JNTU, Kakinada)
 DECLARATION

We hereby declare that the project entitled “<<BLOCKCHAIN TECHNOLOGY>>” submitted to

CHIRALA ENGINEERING COLLEGE, CHIRALA (CECC-E9), affiliated to Jawaharlal Nehru

Technological University Kakinada (JNTUK) for the award of the degree of Bachelor of Technology in

Computer Science & Engineering is a result of original done by me.

It is further declared that the project report or any part thereof has not been previously submitted to any

University or Institute for the award of degree or diploma.

<<B.JYOTHIRMAI>> --(<<16E91A1207>>
 DEPARTMENT OF COMPUTER SCIENCE AND
ENGINEERING

CERTIFICATE

This is to certify that this is the bonafide record of the Seminar Title “<<blockchain technology>>“is
submitted by <b.jyothirmai>> <<16E91A1207>> of B.Tech in the partial fulfillment of the requirements
for the degree of Bachelor of Technology in Computer Science and Engineering, Dept. of Computer
Science & Engineering and this has not been submitted for the award of any other degree of this institution.

INTERNAL GUIDE PRINCIPAL

PROJECT COORDINATOR HOD

INTERNAL EXAMINER EXTERNAL EXAMINER

 ACKNOWLEDGEMENT

First and foremost, I am grateful to the Principal <<principal name>>, for providing me with all the
resources in the college to make my technical seminar success. I thank him for his valuable suggestions at
the time of seminars which encouraged me to give my best in the technical seminar.

I would like to express my gratitude to <<>HOD name>, Head of the Department, Department of
Computer Science and Engineering for his support and valuable suggestions during the dissertation work.

I offer my sincere gratitude to my project coordinator <name of the project coordinator >>and internal
guide <name of the guide>>Assistant Professor of Computer Science and Engineering department who
has supported me throughout this technical seminar with their patience and valuable suggestions.

I would also like to thank all the supporting staff of the Dept. of CSE and all other departments who have
been helpful directly or indirectly in making the technical seminar success.

I am extremely grateful to my parents for their blessings and prayers for my completion of technical
seminar that gave me strength to do technical seminar.

<<ur name>>
S.NO TOPICS PAGE NO
Abstract
This report focuses on explaining the blockchain technology and its application fields.
We distinguish between multiple types of blockchains and explain the two biggest
platforms, namely Bitcoin and Ethereum. While introducing those two platforms we
explain the most important technology and algorithms used such as proof of work
concept. Some of the security issues and solutions are also covered. We conclude with
some concrete Ethereum based applications that demonstrate the usage of blockchain
technology beyond cryptocurrency and illustrate current developments in this field.
INTRODUCTION:
A blockchain is essentially a distributed database of records or public ledger of all
transactions ordigital events that have been executed and shared among
participating parties. Each transaction in thepublic ledger is verified by consensus
of a majority of the participants in the system. And, once entered,information can
never be erased. The blockchain contains a certain and verifiable record of
everysingle transaction ever made. To use a basic analogy, it is easy to steal a
cookie from a cookie jar, keptin a secluded place than stealing the cookie from a
cookie jar kept in a market place, being observed bythousands of people.

Bitcoin is the most popular example that is intrinsically tied to blockchain

technology. It is also themost controversial one since it helps to enable a
multibillion-dollar global market of anonymoustransactions without any
governmental control. Hence it has to deal with a number of regulatoryissues
involving national governments and financial institutions.

However, Blockchain technology itself is non-controversial and has worked

flawlessly over the yearsand is being successfully applied to both financial and
non-financial world applications. Last year, MarcAndreessen, the doyen of Silicon
Valley’s capitalists, listed the blockchain distributed consensusmodel as the most
important invention since the Internet itself. Johann Palychata from BNP
Paribaswrote in the Quintessence magazine that bitcoin’s blockchain, the software
that allows the digitalcurrency to function should be considered as an invention like
the steam or combustion engine thathas the potential to transform the world of
finance and beyond.

Current digital economy is based on the reliance on a certain trusted authority. Our
all onlinetransactions rely on trusting someone to tell us the truth—it can be an
email service provider telling usthat our email has been delivered; it can be a
certification authority telling us that a certain digitalcertificate is trustworthy; or it can
be a social network such as Facebook telling us that our postsregarding our life
events have been shared only with our friends or it can be a bank telling us that
ourmoney has been delivered reliably to our dear ones in a remote country. The
fact is that we live our lifeprecariously in the digital world by relying on a third entity
for the security and privacy of our digitalassets. The fact remains that these third
party sources can be hacked, manipulated or compromised .

This is where the blockchain technology comes handy. It has the potential to
revolutionize the digitalworld by enabling a distributed consensus where each and
every online transaction, past andpresent, involving digital assets can be verified at
any time in the future. It does this withoutcompromising the privacy of the digital
assets and parties involved. The distributed consensus andanonymity are two
important characteristics of blockchain technology.
The advantages of Blockchain technology outweigh the regulatory issues and

technical challenges. Onekey emerging use case of blockchain technology involves

“smart contracts”. Smart contracts arebasically computer programs that can

automatically execute the terms of a contract. When apre-configured condition in a

smart contract among participating entities is met then the partiesinvolved in a

contractual agreement can be automatically made payments as per the contract in

atransparent manner.

Smart Property is another related concept which is regarding controlling the

ownership of a propertyor asset via blockchain using Smart Contracts. The

property can be physical such as car, house,smartphone etc. or it can be non-

physical such as shares of a company. It should be noted here thateven Bitcoin is

not really a currency--Bitcoin is all about controlling the ownership of money.

Blockchain technology is finding applications in wide range of areas—both financial

andnon-financial.

Financial institutions and banks no longer see blockchain technology as threat to

traditional businessmodels. The world’s biggest banks are in fact looking for

opportunities in this area by doing researchon innovative blockchain applications.

In a recent interview Rain Lohmus of Estonia’s LHV bank toldthat they found

Blockchain to be the most tested and secure for some banking and finance

relatedapplications.

Non-Financial applications opportunities are also endless. We can envision

putting proof of existenceof all legal documents, health records, and loyalty

payments in the music industry, notary, privatesecurities and marriage licenses in

the blockchain. By storing the fingerprint of the digital asset insteadof storing the

digital asset itself, the anonymity or privacy objective can be achieved.

In this report, we focus on the disruption that every industry in today’s digital

economy is facing todaydue to the emergence of blockchain technology.

Blockchain technology has potential to become thenew engine of growth in digital

economy where we are increasingly using Internet to conduct digitalcommerce and

share our personal data and life events.

There are tremendous opportunities in this space and the revolution in this space

has just begun. Inthis report we focus on few key applications of Blockchain

technology in the area of Notary, Insurance,private securities and few other

interesting non-financial applications. We begin by first describingsome history and

the technology itself.

HISTORY:
an individual or group writing under the name of Satoshi Nakamoto published
apaper entitled “Bitcoin: A Peer-To-Peer Electronic Cash System”. This paper
described apeer-to-peer version of the electronic cash that would allow online
payments to be sent directly from one party to another without going through
a financial institution. Bitcoin was the first realization of this concept. Now
word cryptocurrencies is the label that is used to describe all networks and
mediums of exchange that uses cryptography to secure transactions-as
against those systems where the transactions are channeled through a
centralized trusted entity.
The author of the first paper wanted to remain anonymous and hence no one
knows Satoshi Nakamoto to this day. A few months later, an open source
program implementing the new protocol was released that began with the
Genesis block of 50 coins. Anyone can install this open source program and
become part of the bitcoin peer-to-peer network. It has grown in popularity
since then.
–2008

•August 18 Domain name "bitcoin.org" registered

•October 31 Bitcoin design paper published

•November 09 Bitcoin project registered at SourceForge.net

–2009

•January 3 Genesis block established at 18:15:05 GMT

•January 9 Bitcoin v0.1 released and announced on the cryptography mailing list

•January 12 First Bitcoin transaction, in block 170 from Satoshi to Hal Finney

The popularity of the Bitcoin has never ceased to increase since then. The
underlying Block Chain technology is now finding new range of applications
beyond finance.
What is block chain technology ?
Blockchain is the digital and decentralized ledger that records all transactions. Every
time someone buys digital coins on a decentralized exchange, sells coins, transfers coins,
or buys a good or service with virtual coins, a ledger records that transaction, often in an
encrypted fashion, to protect it from cybercriminals. These transactions are also recorded
and processed without a third-party provider, which is usually a bank.

By allowing digital information to be distributed but not copied, block chain technology
created the backbone of a new type of internet. Originally devised for the digital currency,
Bitcoin, (Buy Bitcoin) the tech community has now found other potential uses for the
technology.

In this guide, we are going to explain to you what the block chain technology is, and what
its properties are what make it so unique. So, we hope you enjoy this, What Is Block chain
Guide. And if you already know what block chain is and want to become a block chain and
create your very first block chain.

“The blockchain is an incorruptible digital ledger of economic transactions that can be

programmed to record not just financial transactions but virtually everything of value.” –
Don & Alex Tapscott, authors Blockchain Revolution (2016).”

A blockchain is, in the simplest of terms, a time-stamped series of immutable records of

data that is managed by a cluster of computers not owned by any single entity. Each of
these blocks of data (i.e. block) is secured and bound to each other using cryptographic
principles (i.e. chain).

The blockchain network has no central authority — it is the very definition of a

democratized system. Since it is a shared and immutable ledger, the information in it is
open for anyone and everyone to see. Hence, anything that is built on the blockchain is by
its very nature transparent and everyone involved is accountable for their actions.
The Three Pillars of Blockchain Technology
The three main properties of Blockchain Technology which have helped it gain widespread
acclaim are as follows:

 Decentralization
 Transparency
 Immutability

Pillar #1: Decentralization

Before Bitcoin and BitTorrent came along, we were more used to centralized services. The
idea is very simple. You have a centralized entity that stored all the data and you’d have to
interact solely with this entity to get whatever information you required.

Another example of a centralized system is the banks. They store all your money, and the
only way that you can pay someone is by going through the bank.

The traditional client-server model is a perfect example of this:

When you google search for something, you send a query to the server who then gets back
at you with the relevant information. That is a simple client-server.

Now, centralized systems have treated us well for many years, however, they have several
vulnerabilities.

 Firstly, because they are centralized, all the data is stored in one spot. This makes
them easy target spots for potential hackers.
 If the centralized system were to go through a software upgrade, it would halt the
entire system
 What if the centralized entity somehow shuts down for whatever reason? That way
nobody will be able to access the information that it possesses
 Worst case scenario, what if this entity gets corrupted and malicious? If that happens
then all the data that is inside the blockchain will be compromised.

So, what happens if we just take this centralized entity away?

In a decentralized system, the information is not stored by one single entity. In fact,
everyone in the network owns the information.

In a decentralized network, if you wanted to interact with your friend then you can do so
directly without going through a third party. That was the main ideology behind Bitcoins.
You and only you alone are in charge of your money. You can send your money to anyone
you want without having to go through a bank.
Pillar #2: Transparency

One of the most interesting and misunderstood concepts in blockchain technology is

“transparency.” Some people say that blockchain gives you privacy while some say that it is
transparent. Why do you think that happens?

Well… a person’s identity is hidden via complex cryptography and represented only by
their public address. So, if you were to look up a person’s transaction history, you will not
see “Bob sent 1 BTC” instead you will see “1MF1bhsFLkBzzz9vpFYEmvwT2TbyCt7NZJ
sent 1 BTC”.

The following snapshot of Ethereum transactions will show you what we mean:

So, while the person’s real identity is secure, you will still see all the transactions that were
done by their public address. This level of transparency has never existed before within a
financial system. It adds that extra, and much needed, level of accountability which is
required by some of these biggest institutions.

Speaking purely from the point of view of crypto currency, if you know the public address
of one of these big companies, you can simply pop it in an explorer and look at all the
transactions that they have engaged in. This forces them to be honest, something that they
have never had to deal with before.

However, that’s not the best use-case. We are pretty sure that most of these companies
won’t transact using cryp tocurrencies, and even if they do, they won’t do ALL their
transactions using crypto currencies. However, what if the block chain technology was
integrated…say in their supply chain?

Pillar #3: Immutability

Immutability, in the context of the block chain, means that once something has been entered
into the block chain, it cannot be tampered with.

Can you imagine how valuable this will be for financial institutes?

Imagine how many embezzlement cases can be nipped in the bud if people know that they
can’t “work the books” and fiddle around with company accounts.

The reason why the block chain gets this property is that of the cryptographic hash
function.
In simple terms, hashing means taking an input string of any length and giving out an
output of a fixed length. In the context of cryptocurrencies like bitcoin, the transactions are
taken as input and run through a hashing algorithm (Bitcoin uses SHA-256) which gives an
output of a fixed length.

Let’s see how the hashing process works. We are going to put in certain inputs. For this
exercise, we are going to use the SHA-256 (Secure Hashing Algorithm 256).

As you can see, in the case of SHA-256, no matter how big or small your input is, the
output will always have a fixed 256-bits length. This becomes critical when you are dealing
with a huge amount of data and transactions. So basically, instead of remembering the input
data which could be huge, you can just remember the hash and keep track.

A cryptographic hash function is a special class of hash functions that has various properties
making it ideal for cryptography. There are certain properties that a cryptographic hash
function needs to have in order to be considered secure. You can read about those in detail
in our guide on hashing.

There is just one property that we want you to focus on today. It is called the “Avalanche
Effect.”

What does that mean?

Even if you make a small change in your input, the changes that will be reflected in the
hash will be huge. Let’s test it out using SHA-256:

Do you see that? Even though you just changed the case of the first alphabet of the input,
look at how much that has affected the output hash. Now, let’s go back to our previous
point when we were looking at block chain architecture. What we said was:
The block chain is a linked list that contains data and a hash pointer that points to its
previous block, hence creating the chain. What is a hash pointer? A hash pointer is similar
to a pointer, but instead of just containing the address of the previous block it also contains
the hash of the data inside the previous block.

. The use of networks and nodes in cryptocurrencies.

The peer-to-peer network structure in cryptocurrencies is structured according to the

consensus mechanism that they are utilizing. For cryptos like Bitcoin and Ethereum which
uses a normal proof-of-work consensus mechanism (Ethereum will eventually move on to
Proof of Stake), all the nodes have the same privilege. The idea is to create an egalitarian
network. The nodes are not given any special privileges, however, their functions and
degree of participation may differ. There is no centralized server/entity, nor is there any
hierarchy. It is a flat topology.

These decentralized cryptocurrencies are structured like that is because of a simple reason,
to stay true to their philosophy. The idea is to have a currency system, where everyone is
treated as an equal and there is no governing body, which can determine the value of the
currency based on a whim. This is true for both bitcoin and Ethereum.

Now, if there is no central system, how would everyone in the system get to know that a
certain transaction has happened? The network follows the gossip protocol. Think of how
gossip spreads. Suppose Alice sent 3 ETH to Bob. The nodes nearest to her will get to know
of this, and then they will tell the nodes closest to them, and then they will tell their
neighbors, and this will keep on spreading out until everyone knows. Nodes are basically
your nosy, annoying relatives.

So, what is a node in the context of Ethereum? A node is simply a computer that
participates in the Ethereum network. This participation can be in three ways

 By keeping a shallow-copy of the blockchain aka a Light Client

 By keeping a full copy of the blockchain aka a Full Node
 By verifying the transactions aka Mining

However, the problem with this design is that it is not really that scalable. Which is why a
lot of new generation cryptocurrencies adopt a leader-based consensus mechanism. In EOS,
Cardano, Neo, etc. the nodes elect leader nodes or “supernodes” who are in charge of the
consensus and overall network health. These cryptos are a lot faster but they are not the
most decentralized of systems.
Who Will Use The Blockchain?
As a web infrastructure, you don’t need to know about the block chain for it to
be useful in your life.

Currently, finance offers the strongest use cases for the technology. Inter
national remittances, for instance. The World Bank estimates that over $430
billion US in money transfers were sent in 2015. And at the moment there is a
high demand for blockchain developers.

The block chain potentially cuts out the middleman for these types of
transactions. Personal computing became accessible to the general public with
the invention of the Graphical User Interface (GUI), which took the form of a
“desktop”. Similarly, the most common GUI devised for the block chain are the
so-called “wallet” applications, which people use to buy things with Bitcoin,
and store it along with other crypto currencies.

Transactions online are closely connected to the processes of identity

verification. It is easy to imagine that wallet apps will transform in the coming
years to include other types of identity management.

HOW BLOCKCHAIN WORKS?

Picture a spreadsheet that is duplicated thousands of times across a network of computers.

Then imagine that this network is designed to regularly update this spreadsheet and you
have a basic understanding of the blockchain.

Information held on a blockchain exists as a shared — and continually reconciled —

database. This is a way of using the network that has obvious benefits. The blockchain
database isn’t stored in any single location, meaning the records it keeps are truly public
and easily verifiable. No centralized version of this information exists for a hacker to
corrupt. Hosted by millions of computers simultaneously, its data is accessible to anyone on
the internet.

To go in deeper with the Google spreadsheet analogy, I would like you to read this piece
from a blockchain specialist.

“The traditional way of sharing documents with collaboration is to send a Microsoft Word
document to another recipient and ask them to make revisions to it. The problem with that
scenario is that you need to wait until receiving a return copy before you can see or make
other changes because you are locked out of editing it until the other person is done with it.
That’s how databases work today. Two owners can’t be messing with the same record at
once. That’s how banks maintain money balances and transfers; they briefly lock access (or
decrease the balance) while they make a transfer, then update the other side, then re-open
access (or update again). With Google Docs (or Google Sheets), both parties have access to
the same document at the same time, and the single version of that document is always
visible to both of them. It is like a shared ledger, but it is a shared document. The
distributed part comes into play when sharing involves a number of people.

Imagine the number of legal documents that should be used that way. Instead of passing
them to each other, losing track of versions, and not being in sync with the other version,
why can’t *all* business documents become shared instead of transferred back and forth?
So many types of legal contracts would be ideal for that kind of workflow. You don’t need a
blockchain to share documents, but the shared documents analogy is a powerful one.” –
William Mougayar, Venture advisor, 4x entrepreneur, marketer, strategist, and blockchain
specialist

The reason why the blockchain has gained so much admiration is that:

 It is not owned by a single entity, hence it is decentralized

 The data is cryptographically stored inside
 The blockchain is immutable, so no one can tamper with the data that is inside the
blockchain
 The blockchain is transparent so one can track the dat a if they
What are the benefits of the block chain technology ?
The block chain technology promises to revolutionize finance and business. Here are some
of the advantages of block chain:

 Minimize cost: Since block chain establishes peer- to peer network within one
system, it cuts out the time and expenses of intermediaries such as the middleman.
 Fast and Convenient: The complexity of using block chain disparate ledgers and
processes throughout the lifecycle of a transaction, for instance, a stock purchase
transacted in a block chain settles in a minute. There will be no need for another
entity to process the transaction
 Secure: Each and every transaction is stored in a block that links to the ones before
and after it with amps in security. And although nothing is hackproof, the blockchain
is considerably more secure than anything else today.


The blockchain technology can be categorized into two sections:

Payment Gateway serves a bridge between an eCommerce website and the bank that processes a
customer’s credit/debit card payment. The principal function of the payment gateway is to securely
transmit the consumer’s confidential credit/debit card and bank account data to the issuing bank and get a
response from it concerning whether the transaction is succeeded or failed.
1. Public Blockchain:

A public Blockchain network or permissionless Blockchain network is completely open-ended and anyone
willing to participate in this kind of network can participate without any permission. This is the major and
only difference between public and private Blockchain network. Anyone can participate in the
permissionless network, execute the consensus protocol and maintain the shared open public ledger.

Advantages of Public Blockchain

 More secure than private network.

Disadvantages of Public Blockchain

 Low Privacy.
 Huge computational power and energy is required, less eco-friendly.

2. Private Blockchain

A Private Blockchain Network requires an invitation to participate in the network. The invitation must be
validated either by network starter or by the rules/conditions placed by the network starter. Permissioned
Blockchain Network puts restriction to the entry of participant and allows only the kind of participant that
is required in the network.

Advantages of Public Blockchain

 Increased privacy
 Environment-friendly as less computational power is required to achieve the consensus.(as in the
case of Public Network).

Disadvantages of Private Blockchain

 Less secure as compared to public network.

Blockchain Architecture
Let's study the Blockchain architecture by understanding its various components:

What is a Block?

A Blockchain is a chain of blocks which contain information. The data which is stored inside a block
depends on the type of blockchain.

For Example, A Bitcoin Block contains information about the Sender, Receiver, number of bitcoins to be
transferred.
The first block in the chain is called the Genesis block. Each new block in the chain is linked to the
previous block.

Understanding SHA256 - Hash

A block also has a hash. A can be understood as a fingerprint which is unique to each block. It identifies a
block and all of its contents, and it's always unique, just like a fingerprint. So once a block is created, any
change inside the block will cause the hash to change.
Therefore, the hash is very useful when you want to detect changes to intersections. If the fingerprint of a
block changes, it does not remain the same block.

Each Block has

1. Data
2. Hash
3. Hash of the previous block

Consider following example, where we have a chain of 3 blocks. The 1st block has no predecessor. Hence,
it does not contain has the previous block. Block 2 contains a hash of block 1. While block 3 contains Hash
of block 2.

Hence, all blocks are containing hashes of previous blocks. This is the technique that makes a blockchain
so secure. Let's see how it works -
Assume an attacker is able to change the data present in the Block 2. Correspondingly, the Hash of the
Block also changes. But, Block 3 still contains the old Hash of the Block 2. This makes Block 3, and all
succeeding blocks invalid as they do not have correct hash the previous block.

Therefore, changing a single block can quickly make all following blocks invalid.

Proof of Work

Hashes are an excellent mechanism to prevent tempering but computers these days are high-speed and can
calculate hundreds of thousands of hashes per second. In a matter of few minutes, an attacker can tamper
with a block, and then recalculate all the hashes of other blocks to make the blockchain valid again.

To avoid the issue, blockchains use the concept of Proof-of-Work. It is a mechanism which slows down the
creation of the new blocks.

A proof-of-work is a computational problem that takes certain to effort to solve. But the time required to
verify the results of the computational problem is very less compared to the effort it takes to solve the
computational problem itself.

In case of Bitcoin, it takes almost 10 minutes to calculate the required proof-of-work to add a new block to
the chain. Considering our example, if a hacker would to change data in Block 2, he would need to perform
proof of work (which would take 10 minutes) and only then make changes in Block 3 and all the
succeeding blocks.
This kind of mechanism makes it quite tough to tamper with the blocks so even if you tamper with even a
single block, you will need to recalculate the proof-of-work for all the following blocks. Thus, hashing and
proof-of-work mechanism make a blockchain secure.

Distributed P2P Network

However, there is one more method which is used by blockchains to secure themselves, and that's by being
distributed. Instead of using a central entity to manage the chain, Blockchains use a distributed peer-peer
network, and everyone is allowed to join. When someone enters this network, he will get the full copy of
the blockchain. Each computer is called a node.

Let's see what happens when any user creates a new

block. This new block is sent to all the users on the network. Each node needs to verify the block to make
sure that it hasn't been altered. After complete checking, each node adds this block to their blockchain.
All these nodes in this network create a consensus. They agree about what blocks are valid and which are
not. Nodes in the network will reject blocks that are tampered with.

So, to successfully tamper with a blockchain

1. You will need to tamper with all blocks on the chain

2. Redo the proof-of-work for each block
3. Take control of greater than 50% of the peer-to-peer network.

After doing all these, your tampered block become accepted by everyone else. This is next to impossible
task. Hence, Blockchains are so secure.

Why do we need Blockchain?

Here, are some reasons why Blockchain technology has become so popular.

Resilience: Blockchains is often replicated architecture. The chain is still

operated by most nodes in the event of a massive attack against the system.

Time reduction: In the financial industry, blockchain can play a vital role by
allowing the quicker settlement of trades as it does not need a lengthy process of
verification, settlement, and clearance because a single version of agreed-upon
data of the share ledger is available between all stack holders.

Reliability: Blockchain certifies and verifies the identities of the interested

parties. This removes double records, reducing rates and accelerates
transactions.

Unchangeable transactions: By registering transactions in chronological order,

Blockchain certifies the unalterability, of all operations which means when any
new block has been added to the chain of ledgers, it cannot be removed or
modified.
Fraud prevention: The concepts of shared information and consensus prevent
possible losses due to fraud or embezzlement. In logistics-based industries,
blockchain as a monitoring mechanism act to reduce costs.

Security: Attacking a traditional database is the bringing down of a specific

target. With the help of Distributed Ledger Technology, each party holds a copy
of the original chain, so the system remains operative, even the large number of
other nodes fall.

Transparency: Changes to public blockchains are publicly viewable to

everyone. This offers greater transparency, and all transactions are immutable.

Collaboration – Allows parties to transact directly with each other without the
need for mediating third parties.

Decentralized: There are standards rules on how every node exchanges the
blockchain information. This method ensures that all transactions are validated,
and all valid transactions are added one by one.

APPLICATIONS OF BLOCK CHAIN TECHNOLOGY:

1. Supply chain management

Blockchains increase the overall efficiency of supply chains. It provides accurate
identification of the location of items on the supply chain. It thus removes the need for
paper-based trails. It helps prevent losses and monitor the quality of products while in
production.

2. Digital IDs
With an estimated 1 billion people worldwide not having an identity, Microsoft is working
on creating ids to empower impoverished people and refugees. This would help in linking
them with the formal financial sector. It aims to do this through its Authenticator app. The
authenticator doesn’t just use a password. It uses an extra layer of protection that uses a
code or a token to identify a returning user or a device. It is an ideal way for users to control
their digital identities.

3. Healthcare
The patient, being the central point of the healthcare ecosystem, has the right to accurate
information. It can also be looked into as a matter of life and death. Privacy and security of
health data are very important. It helps in tracking the serials and batch numbers of
prescription drugs. Hospitals have moved away from paper for recordkeeping and they use
blockchain technology to store patient data, which is kept confidential. The patient would
be given a number key to access these records, thereby keeping him in control of who can
view that data. Patient diagnoses can also be stored, so as to track the patient’s health
history.
4. Wills or inheritances
Paper wills or inheritances can now be replaced with digital ones which can be created and
stored using the blockchain network. It must be used along with smart contracts as it would
make your document both legally binding and crystal clear as to who should receive which
assets when you pass away. This puts your end-of-life concerns to rest.

5. Food safety
Intriguing use of blockchain in food safety is the ability to trace your food from its origin to
your plate. Using the immutable nature of blockchain, the transport of food products from
their origin to the supermarket can be traced. In the case of food-borne illnesses, the source
of the contaminant can be traced quickly and accurately.

6. Digital voting
Voter fraud has always been a great concern. It will not be anymore. You can make your
vote truly count with the immutable nature of the blockchain. It will make voting
transparent and any changes made to the network would be noticed by the regulators. The
token-based system created using blockchain technology will ensure the system of ‘one
unchangeable vote per person.’

7. Real estate
Ownership and title details are stored on the blockchain, thereby making it easier to transfer
ownership and trace ownership. Eliminating paper from the equation, it offers a crystal-
clear picture of legal ownership. Titles are stored on the blockchain network and can be
viewed, altered, and updated whenever required.

8. Data sharing
Introduced by IOTA, a distributed ledger technology developed by the IOTA Foundation, it
involves using the blockchain to share or sell unused data. The unused data bundles of
enterprises could be routed to places that need it the most. Blockchain can be used as a
marketplace to store data which can be used to improve a host of industries.

9. Weapons tracking
Blockchain technology would enable the federal government and law enforcement to track
weapon or gun ownership. It will act as an unchanging and transparent registry which will
also aid in keeping a record of weapons sold privately.

10. Copyright and royalty protection

Copyright and ownership laws on music, videos, blogs, and other online content are a must
in today’s day and age. These laws can be made secure through blockchain technology.
Digital content downloads would be a good option as it ensures that the artist or the creator
of the content also gets their fair share. Blockchain would also provide real-time and
authentic royalty distribution data to content creators and musicians.

Blockchain technology is an innovation which has been embraced by a majority of people.

Though the functionalities of blockchain are commendable, one needs to remember that it is
not the solution to every problem and that different blockchains will suit a variety of needs
and circumstances. The applications of blockchain will widely vary from one industry to the
other.

CONCLUSION :
 A Blockchain is a chain of blocks that contain information
 The blockchain is not Bitcoin, but it is the technology behind Bitcoin
 Every block contains hash.
 Each block has a hash of the previous block
 Blockchain require Proof of Work before a new block is added
 The blockchain database is disturbed amongst multiple peers and is not centralized.
 Block chain technology is Resilience, Decentralize, Time reducing, reliable and its
offers unalterable transitions
 Three versions of Blockchain are Blockchain 1.0: Currency, Blockchain 2.0: Smart
Contracts and Blockchain 3.0: DApps
 The blockchain is Available in three different variants 1) Public 2) Private 3)
Consortium
 Higher cost, slower transactions, small ledger, the risk of error are some disadvantage
of using this technology
 Dubai- The Smart City, Incent Customer retention, and Blockchain for Humanitarian
Aid are the real-life use cases of Blockchain.

References
1. Bellare, Mihir; and Rogaway, Phillip. (September 21, 2005). “Introduction.” In Introduction to
Modern Cryptography (p. 10). web.cs.ucdavis.edu/~rogaway/classes/227/spring05/book/main.pdf.
2. hackernoon.com/stablecoins-designing-a-price-stable-cryptocurrency-6bf24e2689e5
3. medium.com/@argongroup/stablecoins-explained-206466da5e61
4. medium.com/coinmonks/asset-tokenization-on-blockchain-explained-in-plain-english-
f4e4b5e26a6d
5. www.nasdaq.com/article/how-tokenization-is-putting-real-world-assets-on-blockchains-cm767952
6. www.investopedia.com/terms/f/fungibility.asp
7. www.w3.org/Protocols/Design/Interevol.html