BLOCKCHAIN

TECHNOLOGY
 CONTENTS

• What is Blockchain?
• Features of Blockchain
• Components of blockchain
• How does it works?
• Types of Blockchain
• Advantage and disadvantage
What is Blockchain ?

• Blockchain technology is an advanced database mechanism

that allows transparent information sharing within a business
network.
• A blockchain database stores data in blocks that are linked
together in a chain. 
• The data is chronologically consistent because you cannot
delete or modify the chain without consensus from the
network.
• The first blockchain technology was invented in 2008 by the unknown
persons behind the online cash currency bitcoin, under the pseudonym
of Satoshi Nakamoto.

• But blockchain is not only for cryptocurrency.  Virtually anything of value

or assets can be tracked and traded on a blockchain network, reducing
risk and cutting costs for all involved.
•  An asset can be tangible (a house, car, cash, land) or intangible
(intellectual property, patents, copyrights, branding).
Important features of blockchain

• Decentralization
Decentralization in blockchain refers to transferring control and
decision making from a centralized entity (individual, organization, or
group) to a distributed network.
• Immutability
Immutability means something cannot be changed or altered. No one
can delete or modify an existing block from a blockchain.  
If a transaction record includes an error, you must add a new
transaction to reverse the mistake, and both transactions are visible to
the network.
• Consensus
A blockchain system establishes rules about participant consent for
recording transactions. You can record new transactions only when the
majority of participants in the network give their consent.
Component of Blockchain

o Distributed ledger
o Blocks
o Peer to peer network (p2p)
o Nodes
o Cryptographic key
 Private key &
 Public key
o Hash
o Smart contract
Types of blockchain
There are four type of blockchain technology.
• Public blockchain networks
Public blockchains are permissionless and allow everyone to join them. All
members of the blockchain have equal rights to read, and validate the blockchain.
People primarily use public blockchains to exchange and mine cryptocurrencies
like Bitcoin, Ethereum, and Litecoin. 
• Private blockchain networks
A single organization controls private blockchains, also called managed
blockchains. The authority determines who can be a member and what rights they
have in the network.
Private blockchains are only partially decentralized because they have access
restrictions.
• Hybrid blockchain networks
Hybrid blockchains combine elements from both private and public
networks. Companies can set up private, permission-based systems
alongside a public system.
In this way, they control access to specific data stored in the
blockchain while keeping the rest of the data public. 

• Consortium blockchain network

This type of blockchain is owned and managed by a group of
individuals, coworkers, or organizations and acts as a centralized system.
It follows a hybrid method of decentralization along with a managing
authority.
Advantage of Blockchain

• Advanced security : no one can change a validated transaction. No

single point of failure
• Transparency : transactions are visible to every one
• No intermediaries : no need of third parties like bank or government
• Trust less : no need to trust any one
• Speed : with no third parities transaction will be fast
• Reduced cost : almost zero transaction fee
Down side of blockchain

• High energy consumption

• Scalability
• Thorough knowledge
• Users are their own bank: Private Keys
• Privacy issue
• Cryptos are volatile
• Most companies don’t accept transaction through crypto