Bockchain

Blockchain

Siddhi Dode ,Siddhi Charapale

Siddhidode2446@gmail.com

HOD-S.A.Lakade.

Guide-G.A.Ghodake

Ashokrao Mane Polytechnic, Vathar Tarf Vadgaon

Department of Computer Engineering

Abstract: Blockchain, the foundation of Bitcoin, has received extensive attentions recently.
Blockchain serves as an immutable ledger which allows transactions take place in a
decentralized manner. Blockchain-based applications are springing up, covering numerous
fields including financial services, reputation system and Internet of Things (IoT), and so on.
However, there are still many challenges of blockchain technology such as scalability and
security problems waiting to be overcome. This paper presents a comprehensive overview on
blockchain technology. We provide an overview of blockchain architechture firstly and
compare some typical consensus algorithms used in different blockchains. Furthermore,
technical challenges and recent advances are briefly listed. We also lay out possible future
trends for blockchain.
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tracking orders, payments, accounts, and

1.Introduction
other transactions. The system has built-in
1.1 What is blockchain technology? mechanisms that prevent unauthorized
transaction entries and create consistency in
Blockchain technology is an advanced the shared view of these transactions.
database mechanism that allows transparent
information sharing within a business
network. A blockchain database stores data in
1.2 Why is blockchain important?
blocks that are linked together in a chain. The
data is chronologically consistent because
Traditional database technologies present
you cannot delete or modify the chain
several challenges for recording financial
without consensus from the network. As a
transactions. For instance, consider the sale
result, you can use blockchain technology to
of a property. Once the money is exchanged,
create an unalterable or immutable ledger for

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Bockchain
ownership of the property is transferred to the
buyer. Individually, both the buyer and the
seller can record the monetary transactions,
but neither source can be trusted. The seller
can easily claim they have not received the
money even though they have, and the buyer
can equally argue that they have paid the
money even if they haven’t.
To avoid potential legal issues, a trusted third
party has to supervise and validate
transactions. The presence of this central
authority not only complicates the transaction
but also creates a single point of
vulnerability. If the central database was
compromised, both parties could suffer.
Blockchain mitigates such issues by creating
a decentralized, tamper-proof system to
record transactions. In the property
transaction scenario, blockchain creates one
ledger each for the buyer and the seller. All
transactions must be approved by both parties
and are automatically updated in both of their
ledgers in real time. Any corruption in
historical transactions will corrupt the entire
ledger. These properties of blockchain
technology have led to its use in various
sectors, including the creation of digital
currency like Bitcoin.
2.key components of blockchain
technology
Blockchain architecture has the following
main components:
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A distributed ledger:-
A distributed ledger is the shared database in
the blockchain network that stores the
transactions, such as a shared file that
everyone in the team can edit. In most shared
text editors, anyone with editing rights can
delete the entire file. However, distributed
ledger technologies have strict rules about
who can edit and how to edit. You cannot
delete entries once they have been recorded.
Smart contracts:-
Companies use smart contracts to self-
manage business contracts without the need
for an assisting third party. They are
programs stored on the blockchain system
that run automatically when predetermined
conditions are met. They run if-then checks
so that transactions can be completed
confidently. For example, a logistics
company can have a smart contract that
automatically makes payment once goods
have arrived at the port.
Public key cryptography:-
Public key cryptography is a security feature
to uniquely identify participants in the
blockchain network. This mechanism
generates two sets of keys for network
members. One key is a public key that is
Bockchain
common to everyone in the network. The
other is a private key that is unique to every
member. The private and public keys work
together to unlock the data in the ledger.
For example, John and Jill are two members
of the network. John records a transaction
that is encrypted with his private key. Jill can
decrypt it with her public key. This way, Jill
is confident that John made the transaction.
Jill's public key wouldn't have worked if
John's private key had been tampered with.
3.Blockchain Working
While underlying blockchain mechanisms are
complex, we give a brief overview in the
following steps. Blockchain software can
automate most of these steps:
Step 1 – Record the transaction
Step 2 – Gain consensus
Step 3 – Link the blocks
Step 4 - Share the ledger
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4. Types of blockchain networks
There are four main types of decentralized or
distributed networks in the blockchain:
 Public BlockChain : A public
blockchain is a non-restrictive,
permission-less distributed ledger
system. A node or user which is a part
of the public blockchain is authorized
to access current and past records,
verify transactions or do proof-of-
work for an incoming block and do
mining.
 Private BlockChain : A private
blockchain is a restrictive or
permission blockchain operative only
in a closed network. Private
blockchains are usually used within
an organization or enterprises where
only selected members are
participants of a blockchain network.
The level of security, authorizations,
permissions, accessibility is in the
hands of the controlling organization.
Thus, private blockchains are similar
in use as a public blockchain but have
a small and restrictive network.
 Consortium BlockChain :A
consortium blockchain is a semi-
decentralized type where more than
one organization manages a
blockchain network. More than one
organization can act as a node in this
type of blockchain and exchange
information or do mining.
 Hybrid BlockChain : A hybrid
blockchain is a combination of the private
and public blockchain. It uses the features of
both types of blockchains that is one can
have a private permission-based system as
well as a public permission-less system. With
such a hybrid network, users can control who
gets access to which data stored in the
Bockchain

blockchain. Only a selected section of data or
records from the blockchain can be allowed
to go public keeping the rest as confidential
in the private network. The hybrid system of
blockchain is flexible so that users can easily
join a private blockchain with multiple public
blockchains. A transaction in a private
network of a hybrid blockchain is usually
verified within that network.
there are several challenges to overcome,
such as scalability and security, blockchain
technology has the potential to revolutionize
the way we transfer and store value. As the
technology continues to evolve, we can
expect to see more innovative use cases for
blockchain and digital assets.
8.References

5. Advantages:-
1. Bellare, Mihir; and Rogaway, Phillip.
(September 21, 2005). “Introduction.”
A public network operates on an actuate In Introduction to Modern Cryptography (p.
scheme that encourages new persons to join 10). web.cs.ucdavis.edu/~rogaway/classes/22
and keep the network better. 7/spring05/book/main.pdf.
2. hackernoon.com/stablecoins-designing-a-price-
stable-cryptocurrency-6bf24e2689e5
There is no agreement in the public 3. medium.com/@argongroup/stablecoins-
blockchain. explained-206466da5e61
4. medium.com/coinmonks/asset-tokenization-on-
blockchain-explained-in-plain-english-
This means that a public blockchain network f4e4b5e26a6d
is immutable. 5. www.nasdaq.com/article/how-tokenization-is-
putting-real-world-assets-on-blockchains-
cm767952
It has Rapid transactions. 6. www.investopedia.com/terms/f/fungibility.asp
7. www.w3.org/Protocols/Design/Interevol.html

6. Disadvantages:-

Public blockchain can be costly in some

manner.

The person need not give identity, that’s why

there is a possibility of corruption of the
block if it is in under attack.

Processing speed is sometimes slow.

It has Integration issues.

7. Conclusion
Blockchain technology is the backbone of
digital assets. It provides a secure and
transparent way to transfer digital assets
without the need for intermediaries. While

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