Blockchain

Conceptualization and
Applications of Blockchain
Stuart Haber W. Scott
Stornetta
What is Blockchain?
• Blockchain is a distributed
immutable ledger which is
completely transparent.
What is Blockchain?

Ledger Book Block

A B

C
Blockchain defined: Blockchain is a shared, immutable
ledger that facilitates the process of recording transactions
and tracking assets in a business network.
or
Blockchain is a distributed immutable ledger which is
completely transparent

An asset can be tangible (a house, car, cash, land) or

intangible (intellectual property, patents, copyrights,
branding).

Virtually anything of value can be tracked and traded on a

blockchain network, reducing risk and cutting costs for all
involved.
• A blockchain is a growing list of records, called blocks, that are linked using 
cryptography.[ Each block contains a cryptographic hash of the previous block, a 
timestamp, and transaction data 
• A blockchain is essentially a digital ledger of transactions that is duplicated and
distributed across the entire network of computer systems on the blockchain. Each
block in the chain contains a number of transactions, and every time a new
transaction occurs on the blockchain, a record of that transaction is added to every
participant’s ledger.
• Once a transaction is stored in the ledger, It cannot be changed by anyone later. i.e.
Records are unalterable.

• Blockchain provide a solution for organisations (peoples), who wants to work

together to run their businesses efficiently, but do not trust each other.
How Blockchain is useful
• Alice wants to share some document with Bob, She writes the content and share with Bob, Bob update
content and share with Alice.
• In this architecture style there will be multiple disadvantages –
• 1 – Both are not able to access data simultaneously.
• Next move to the Centralized architecture style – (like
Google doc)

• Now both can access the data simultaneously, but still

environment is centralized. It can have single point of
failure problem.
• Centralized Architecture – There is a centralized coordinator system, if any node wants to convey some information to
some other node, first it pass it to central coordinator, then from central coordinator it goes to recipient node.
• So if this centralized coordinator stops working there will be no other ways to communicate for other nodes.
• So we move to Decentralized System architecture.
• Decentralized Architecture – Here we have few
coordinators and these coordinator cooperate with
each other and individual nodes connected to these
coordinators.
• If any coordinator fails, individual nodes can connect
to other coordinator.(b/c of cooperation among
coordinators).
• So in this architecture we can tolerate some
coordinator failure, until n/w failure. If n/w fails, lets
say n/w gets partition then these node will not be
able to coordinate with each other.
• To solve this problem we move to the Distributes
architecture.
• Distributed Architecture – All nodes participate in information
sharing or computation process.
• Blockchain is a technology that enables you to use Distributed
architecture style to share the information among different
participants in your business process.
• So the ideal solution to share information b/w Bob and Alice
will be –
Applications of
Blockchain
Applications of Blockchain

Product Tracking Healthcare System

Smart Contracts International Wire

Transfer
• 1. Money transfers

• Money transfers using blockchain can be less expensive and

faster than using existing money transfer services. This is
especially true of cross-border transactions, which are often
slow and expensive. Even in the modern U.S. financial system,
money transfers between accounts can take days, while a
blockchain transaction takes minutes.
• 2. Asset Management
• Blockchain plays a big part in the financial world and it is no different
in asset management. In general terms, asset management involves the
handling and exchange of different assets that an individual may own
such as fixed income, real estate, equity, mutual funds, commodities,
and other alternative investments. Normal trading processes in asset
management can be very expensive, especially if the trading involves
multiple countries and cross border payments. In such situations,
Blockchain can be a big help as it removes the needs for any
intermediaries such as the broker, custodians, brokers, settlement
managers, etc. Instead, the blockchain ledge provides a simple and
transparent process that removes the chances of error.
• 3. Healthcare
• Blockchain can have a big impact on healthcare using smart contracts.
These smart contacts mean that a contract is made between 2 parties
without needing any intermediary. All the parties involved in the
contract know the contract details and the contract is implemented
automatically when the contract conditions are met. This can be very
useful in healthcare wearing personal health records can be encoded
via Blockchain so they are only accessible to primary healthcare
providers with a key.
4. Copyright and Royalties
• Copyright and royalties are a big issue in creative sectors like music,
films, etc. These are artistic mediums and it doesn’t sound like they
have any link with Blockchain. But this technology is quite important
in ensuring security and transparency in the creative industries. There
are many instances where music, films, art, etc. is plagiarized and due
credit is not given to the original artists. This can be rectified using
Blockchain which has a detailed ledger of artist rights. Blockchain is
also transparent and can provide a secure record of artist royalties and
deals with big production companies. The payment of royalties can
also be managed using digital currencies like Bitcoin
• Logistics and supply chain tracking
• Using blockchain technology to track items as they move
through a logistics or supply chain network can provide several
advantages. First of all, it provides greater ease of
communication between partners since data is available on a
secure public ledger. Second, it provides greater security and
data integrity since the data on the blockchain can't be altered.
That means logistics and supply chain partners can work
together more easily with greater trust that the data they're
provided is accurate and up to date.
•  Real estate
• Real estate transactions require a ton of paperwork to verify
financial information and ownership and then transfer deeds
and titles to new owners. Using blockchain technology to record
real estate transactions can provide a more secure and
accessible means of verifying and transferring ownership. That
can speed up transactions, reduce paperwork, and save money.