Blockchain Technologies and Applications

Lecture #3

By
Engr. Aamir Baloch
Consultation Hours: 11:00AM to 2:00 PM
Contact via WhatsApp
 Reflection
• Elements of Blockchain
• Types of Blockchain
• Benefits of using Blockchain

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 Run Down of Lecture
• Architecture of Blockchain
• Assignment 01.

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 Architecture of Blockchain
If we talk about the architecture of blockchain it
comprises of following portions:
• Block
• Transaction
• Nonce
• Timestamp

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 Block
• A Blockchain is made up of blocks which contain the
transactions that occurred within the network.
• In simple words a block is the basic unit of blockchain.
• The transaction information stored in blocks.
• In blockchain we structured the information by
means of blocks.
• Each block consist of three important entities.
• Which are: Data, Hash, AND Hash of the previous
block.
 Continued…
• Data or information we put into the block.
• Each block has its own fingerprint that is called
hash. It is a way to uniquely identify a block
from other blocks.
• Hash determines the authenticity of a block
whether it should be attached to the current
chain or not
• Each block stores the fingerprint or hash value
of previous blocks.
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 Continued…
• Most importantly if you want to temper the
data in any block, so its fingerprint (hash
value) will alter.
• If the hash of one block altered it will cause
alteration/changing in hashes of rest of blocks
too.
• So whole blockchain will get damaged.
• Therefore tempering in the data is next to
impossible in blockchain.
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 Continued…
• Once a block in the block is defined it can not
altered/changed.
• The blocks are chained together as like the
linked list.
• The first block in the chain is known as “Genesis
block”. Because it does not has any preceding
block.
• Each block consist of two sections.
• The body and header sections.
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 Continued…
• The body section contains the transaction
information while the header contains the IDs
of the previous block.
 Transaction
• A transaction refers to a contract, agreement,
transfer, or exchange of assets between two or
more parties. The asset is typically cash or
property.
• Likewise, a blockchain transaction is nothing
but data transmission across the network of
computers in a blockchain system.

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 Continued…
• All the transactions in a block have a separate
transaction id and this transaction id is called
the cryptographic hash of the transaction.
• The transaction IDs are hashed together in
pairs and a hash tree is built within the block.
• This tree is so called as root of Markle tree.
• The Markle tree will help in the verification of
transaction and stored in the header of block.

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 Nonce
• A nonce is an abbreviation for "number only
used once.”
• It is a one time code, the server generates a
nonce and sends it to the client/user. The user
uses the code.
• The nonce is used only once and once.

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 Timestamp
• It is a small sized data which is present in the
block header as a unique serial. It determines
the moment at which the block has mined and
validated by the network.
• A timestamp can also refer to a moment in
time when a transaction was encrypted.
 Assignment 01
The information present in the block is
decentralized everyone (node) can see it, and
the copy of the blockchain is present on each
computer, so the information remain no more
private everyone can see it. What about the
privacy.
Justify your answer regarding this.
Note: Assignment should be handwritten, and
maximum 3-5 pages.
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