LUCKY INSTITUTE OF PROFESSIONAL STUDIES

AFFILIATED TO
JAI NARAIN VYAS UNIVERSITY,JODHPUR

FACULTY OF INFORMATION TECHNOLOGY

LUCKY INSTITUTE OF PROFESSIONAL STUDIES
JODHPUR
PRESENTATION TOPIC – BLOCKCHAIN

PRESENTED BY – SUHIRT MUKHERJEE

WHAT IS BLOCKCHAIN?

• BLOCKCHAIN ≠ BITCOIN
• BLOCKCHAIN IS THE TECHNOLOGY BEHIND THE BITCOIN.
• BITCOIN IS THE DIGITAL TOKEN AND BLOCKCHAIN IS THE
LEDGER THAT KEEPS THE RECORD OF WHO OWNS THE DIGITAL
TOKENS.
• YOU CAN’T HAVE BITCOIN WITHOUT BLOCKCHAIN, BUT YOU
CAN HAVE BLOCKCHAIN WITHOUT BITCOIN.
• A BLOCKCHAIN HAS THE TECHNICAL, BUSINESS AND LEGAL
DEFINITIONS.
DEFINITION OF BLOCKCHAIN
1. TECHNICALLY, THE BLOCKCHAIN IS A BACK-END DATABASE
THAT MAINTAINS A DISTURBED LEDGER THAT CAN BE
INSPECTED OPENLY.
2. BUSINESS-WISE, THE BLOCKCHAIN IS AN EXCHANGE
NETWORK FOR MOVING TRANSACTIONS, VALUE, ASSETS
BETWEEN PEERS, WITHOUT THE ASSISTANCE OF
INTERMEDIARIES.
3. LEGALLY SPEAKING, THE BLOCKCHAINS VALIDATES
TRANSACTIONS, REPLACING PREVIOUSLY TRUSTED ENTITIES.
BLOCKCHAIN
BITCOIN IS BASED ON A DISTRIBUTED LEDGER – OR RATHER A
SPECIFIC KIND OF DISTRIBUTED LEDGER: A BLOCKCHAIN.
BLOCKCHAIN CONTINUES.....

PEOPLE USE THE TERM BLOCKCHAIN TECHNOLOGY TO MEAN THE

DIFFERENT THINGS, AND IT CAN BE CONFUSING. SOMETIMES
THEY ARE TALKING ABOUT THE BITCOIN BLOCKCHAIN,
SOMETIMES IT’S THE ETHEREAL BLOCKCHAIN. MOST OF THE TIME
THOUGH THEY ARE TALKING ABOUT DISTRIBUTED LEDGERS, I.E. A
LIST OF TRANSACTIONS THAT IS REPLICATED ACROSS A NUMBER
OF COMPUTERS, RATHER THAN BEING STORED ON A CENTRAL
SERVER.
HOW A BLOCKCHAIN WORKS?
ELEMENTS OF BLOCKCHAIN

NODES
MINERS
LEDGER (BLOCK/BLOCKCHAIN)
PROOF OF WORK
NETWORK CONSENSUS
DIFFICULTY LEVEL
• DOUBLE SPENDING PROBLEM
WORKING :

A BLOCKCHAIN IS A TYPE OF DIARY OR SPREADSHEET

CONTAINING INFORMATION ABOUT TRANSACTIONS.
• EACH TRANSACTION GENERATES A HASH.
• A HASH IS A STRING OF NUMBERS AND LETTERS.
• TRANSACTIONS ARE ENTERED IN AN ORDER IN WHICH THEY
ARE OCCURRED. ORDER IS VERY IMPORTANT.
THE HASH DEPENDS NOT ONLY ON TRANSACTION BUT THE
PREVIOUS TRANSACTION’S HASH.
EVEN A SMALL CHANGE IN TRANSACTION CREATES A
COMPLETELY NEW HASH.
• THE NODES CHECK TO MAKE SURE A TRANSACTION HAS NOT
BEEN CHANGED BY INSPECTING THE HASH.
• EACH BLOCK REFERS TO A PREVIOUS BLOCK AND TOGETHER
MAKE THE BLOCKCHAIN.
• A BLOCKCHAIN IS EFFECTIVE AS IT IS SPREAD OVER MANY
COMPUTERS, EACH OF WHICH HAVE A COPY OF BLOCKCHAIN.
• THESE COMPUTERS ARE CALLED NODES.
• THE BLOCKCHAIN UPDATES ITSELF EVERY 10 MINUTES.
 TYPES OF BLOCKCHAIN
A BLOCKCHAIN HAS
1. Private Blockchain: 2. Public Blockchain:
TWO TYPES:
The private blockchains are: The public blockchains
1. PRIVATE are:
• Faster
BLOCKCHAIN
• Always Managed Upkeep
2. PUBLIC • Have private membership • Are slower
BLOCKCHAIN • Are trusted • Has Public Ownership
• And are Legal • Are open and
transparent
• Are Trust-Free
• And are Illegal
APPLICATIONS OF BLOCKCHAIN

1. SMART CONTRACTS:
THIS PROJECT IS A DECENTRALIZED PLATFORM THAT RUNS SMART
CONTRACTS: APPLICATIONS THAT RUNS EXACTLY AS
PROGRAMMED WITHOUT ANY POSSIBILITY OF DOWNTIME, FRAUD
OR THIRD-PARTY OWNERSHIP.
2. CLOUD STORAGE:
SIMPLY USING ACCESS HARD DRIVE SPACE, USERS COULD STORE
THE TRADITIONAL CLOUD 300 TIMES OVER.
3. PAYING EMPLOYEES:
PAYMENTS MADE VIA BITCOINS CAN SAVE BOTH MONEY AND
TIME FOR EMPLOYERS AND EMPLOYEES.
4. ELECTRONIC VOTING:
DELEGATED PROOF OF STAKE (DPOS), IS A FASTEST, MOST
EFFICIENT, MOST DECENTRALIZED, AND MOST FLEXIBLE
CONSENSUS MODEL AVAILABLE.
5. SUPPLY-CHAIN COMMUNICATION:
MOST IF THE THING WE BUY AREN’T MADE BY A SINGLE
ENTITY, BUT BY A CHAIN OF SUPPLIERS WHO SELL THEIR
COMPONENTS.
ADVANTAGES OF BLOCKCHAIN
• TRANSPARENCY:
USERS OR DEVELOPERS HAVE THE OPPORTUNITY TO MODIFY
IT AS THEY FIT. THIS MAKES BLOCKCHAIN A PARTICULARLY
SAFE TECHNOLOGY.

• REDUCED TRANSACTION COSTS:

BLOCKCHAIN ALLOWS PEER TO PEER AND BUSINESS TO
BUSINESS TRANSACTIONS TO BE COMPLETED WITHOUT THE
NEED FOR THE THIRD PARTY. IT MEANS THEY CAN ACTUALLY
REDUCE COSTS TO THE BUSINESS OR USER OVER TIME.
• FASTER TRANSACTION SETTLEMENTS:
BLOCKCHAIN TECHNOLOGY IS WORKING 24 HOURS A DAY, 7
DAYS A WEEK, MEANING BLOCKCHAIN BASED TRANSACTIONS
PROCESS MORE QUICKLY.

• DECENTRALIZATION:
BLOCKCHAIN ACTUALLY ALLOWS INDIVIDUAL TRANSACTIONS
TO HAVE THEIR OWN PROOF OF VALIDITY AND TGE
AUTHORITY TO ENFORCE THOSE CONSTRAINTS.

• USER CONTROLLED NETWORKS:

RATHER THAN HAVING THIRD PARTY RUN THE SHOW, USERS
AND DEVELOPERS ARE THE ONE WHO GET TO CALL THE
SHOTS.
WHY BLOCKCHAIN IS IMPORTANT?
CONCLUSION

BLOCKCHAIN IS A SHARED REPLICATED LEDGER.

• IBM SPORTS AN OPEN-STANDARDS, OPEN SOURCE, OPEN
GOVERNANCE BLOCKCHAIN.
• BLOCKCHAIN CAN OPEN UP BUSINESS NETWORKS BY TAKING
OUT COSTS, IMPROVING EFFICIENCIES AND INCREASE
ACCESSIBILITY.
• BLOCKCHAIN ADDRESSES AN EXCITING AND TOPICAL SET OF
BUSINESS CHALLENGES, WHICH CROSS EVERY INDUSTRY.