Introduction to Blockchain

Technology

Blockchain technology is a decentralized and distributed ledger system that

securely records transactions across multiple computers. It offers transparency,
security, and efficiency.

by Eren Yeager ff
What is a Cryptocurrency?
1 Digital Currency
Cryptocurrencies are digital or virtual
currencies that use cryptography for
secure and anonymous transactions.
2 Decentralized
They operate independently of a central
bank and use blockchain technology to
maintain integrity.

3 Highly Volatile
Cryptocurrency values can fluctuate dramatically, presenting both investment opportunities
and risks.
How Does Blockchain Work?
Decentralization
Blockchain stores data across a
network of computers, reducing
the risk of centralized control
and single point of failure.
Consensus Protocol
Nodes within the network must
agree on the validity of
transactions before they are
recorded, ensuring trust and
security.
Immutability
Once data is recorded on the
blockchain, it cannot be altered
or deleted, providing a high level
of data integrity.
Benefits of Blockchain and Cryptocurrencies

Transparency Financial Inclusion Cost Savings

Blockchain offers transparent,
tamper-proof records of
transactions and cryptocurrency
balances.
Cryptocurrencies enable access
to financial services for
individuals and businesses
worldwide, including the
unbanked.
Blockchain eliminates
intermediaries, reducing
transaction fees and operational
costs for various industries.
Use Cases of Blockchain Technology
Supply Chain Smart Contracts Identity Verification
Management
Automates and secures Blockchain-based identity
Blockchain enhances contract execution, reducing solutions offer secure and
traceability and transparency reliance on intermediaries and tamper-proof digital identity
in supply chains, reducing enhancing trust and verification.
fraud and ensuring product efficiency.
authenticity.
Challenges and Limitations of
Blockchain
1 Scalability
Blockchain faces challenges in handling
a large number of transactions, often
resulting in slower processing times.
2 Regulatory Uncertainty
Legal and regulatory landscapes may
impact the adoption and use of
blockchain and cryptocurrencies.

3 Energy Consumption
Proof-of-Work consensus mechanisms used in some blockchains require significant energy
resources.
Future Trends in Blockchain and
Cryptocurrencies
1 Scalable Solutions
New consensus algorithms and layer 2 solutions aim to address scalability and
enhance transaction throughput.

2 Interoperability
Efforts to enhance communication and data exchange between different blockchains
are gaining traction.

3 Regulatory Clarity
Increased regulatory frameworks and guidance are anticipated to bring more certainty
to the industry.
Conclusion and Key Takeaways

3 24/7 $300B
Decentralization Global Accessibility Market Capitalization
Blockchain's decentralized nature Cryptocurrencies provide Cryptocurrency market cap
challenges traditional centralized unrestricted access to financial continues to grow, signaling
systems. services and investments. increasing adoption and
investment interest.