BLOCKCHAIN TECHNOLOGY

A TECHINAL SEMINAR
By

HARIHARAN 215081109
MASTER OF CAD
DEPARTMENT OF MECHANICAL ENGINEERING,
MAHENDRA ENGINEERING COLLEGE (AUTONOMOUS),
WHAT IS BLOCKCHAIN

Blockchain is a system of recording information in a way that makes it

difficult or impossible to change, hack, or cheat the system. A blockchain is
essentially a digital ledger of transactions that is duplicated and distributed
across the entire network of computer systems on the blockchain.
WHAT IS BITCOIN

Bitcoin is a cryptocurrency, a digital asset that uses cryptography to control its creation and
management, rather than relying on central authorities. Originally designed as a medium of
exchange, Bitcoin is now primarily regarded as a store of value. The history of bitcoin started
with its invention and implementation by Satoshi Nakamoto, who integrated many existing
ideas from the cryptography community. Over the course of bitcoin's history, it has undergone
rapid growth to become a significant store of value both on- and offline. From the mid-2010s,
some businesses began accepting bitcoin in addition to traditional currencies
THE HISTORY OF BITCOIN

2008 2009 2010 2011

Idea was published Start of the Bitcoin Fist cryptocurrency One Bitcoin equals one
under the pseudonym Network stock exchange is USD
Satoshi Nakamoto launched
THE HISTORY OF BITCOIN

2013 2014 2017

1 Bitcoin equals Microsoft accepts 1 Bitcoin equals

100 USD Bitcoin 10,000 USD
THE HISTORY OF BITCOIN
BITCOIN ≠ BLOCKCHAIN
Is an application of Is the underlying datastructure,
blockchain technology which can be used for many
things, including cryptocurrencies
WHAT IS A BLOCKCHAIN?
A blockchain is a growing list of data blocks that are linked together.

Data Data Data

Reference Reference Reference

BLOCK CHAIN

Block chain is a datastructure, which is the growing list of

data blocks
The data blocks are linked together , such that old blocks
cannot be removed or altered
BITCOIN ECOSYSTEM

A public network in which anyone, including a

malicious participant, can participate without
restriction.

Even though it is not organized by a central

authority, it works!
BITCOIN ECOSYSTEM

The Bitcoin ecosystem is self-stabilizing. The more participants the

system has, the more difficult manipulations become. And the more
difficult manipulations become and the more participants there are, the
greater the demand for Bitcoins. This results in a price increase, which
in turn attracts new participants.
BITCOIN ECOSYSTEM

More Security

More
Participants

Increased
Bitcoin Value
CUTTING THE MIDDLEMAN

E.g. direct transfer of Bitcoins

CUTTING THE MIDDLEMAN

Blockchain technology makes middlemen (so-called trusted third

parties) obsolete in many applications. Bitcoin can serve as an example
here. Bitcoins are not routed via a central instance, e.g. a bank, but can
be transferred directly between the parties.
BUILDING CONSENSUS

After a finite time, all

participants agree on a single
state.

E.g. on who owns how many

Bitcoin.
BUILDING CONSENSUS

Blockchain technology has a wide range of applications for consensus

building. In a finite timeframe, all participants of the blockchain agree
on a proposal, which was worked out by a benign participant. At
Bitcoin, for example, all participants agree on who owns how many
bitcoins. But many applications are also conceivable in industry.
CREATING WITNESSES

If something is published on a
public blockchain, all
participants become witnesses.

This is used, for example, by

OriginStamp to create a secure
timestamp for documents.
KEY FEATURES

Write-only, immutable, Resistant against malicious

transparent data storage participants

Decentralized, no need for Open to everyone

intermediaries

Consistent state across all

participants
CHALLENGES

Energy consumption

Scalability

Money laundering

Personal responsibility
THANK YOU