ANSWER 2:

A block chain is a distributed ledger that is open to anyone. Once some data has been recorded
inside a block chain, it becomes very difficult to change it. Each block contains some
information, the hash of the block and the hash of the previous block. The data that is recorded
in the block depends on the type of block chain. For Example: The Bitcoin block chain stores the
details about a transaction, such as the sender, receiver and amount of coins. A block also has a
hash. It identifies a block and all of it contents, and it’s always unique like a fingerprint. After a
block is created, hash is being calculated. Altering something inside the block will cause the
hash to change. Hashes are very useful for detecting changes in blocks. If the hash of the block
changes, it is no longer the same block. The third element each block have is the hash of
previous year This technique makes a block chain so secure. Changes in one block will make all
following blocks invalid. But using hash is not enough to prevent alterations. One could
effectively make changes with a block and recalculate all the hashes of other blocks to make
block chain valid again. So to prevent this block chains have something called proof of work.
This mechanism makes it very hard to tamper with the blocks, because if you temper with one
block you need to recalculate the proof of the work for all the following blocks. So the security
of a block chain comes from its creative use of hashing and the proof of work mechanism. But
there is one more way that block chain secure themselves by being distributed. These contracts
are simple programs that are stored on the block chain and can be used to automatically
exchange coins based on certain conditions.
ANSWER 5:
Blockchain has the potential to remediate the inefficiency of the financial system.
It improves transparency of the financial system since activities are performed on large scale,
globally. This transparency can expose frauds.
Blockchain adds more security because money, equities, bonds, titles, deeds, contracts, and
virtually all other kinds of assets can be moved and stored privately and securely, from person
to person, because trust is established by network consensus, cryptography algorithm,
collaboration, and clever code. The risk of fraud can be significantly reduced with a
combination of blockchain technology to monitor and manage risks with a high degree of
precision.
For the first time in history, two or more parties, be they businesses or individuals who may not
even know each other, can forge agreements, make transactions, and build value without
relying on intermediaries to verify their identities, establish trust, or perform the critical
business logic making payments and money transfers faster and more traceable than in
traditional banking.
By reducing transaction costs in the economy, blockchain supports models of peer-to-peer mass
collaboration making many of existing organizational forms redundant. Blockchain could disrupt
a number of complex intermediary functions in the industry: identity and reputation, value
transfer (payments and remittances), storing value (savings), lending and borrowing (credit),
insurance and risk management, trading value (marketplaces like stock exchanges) and audit
and tax functions.
The financial systems that adopt blockchain technology will be able to streamline the internal
processes and provide their customers with costing lower financial services, effectively beating
their competitors on cost to capture a larger portion of the market.