Blockchain technology allows for direct peer-to-peer transactions without intermediaries by maintaining an immutable distributed digital ledger. It solves issues like slow settlement, high costs, and lack of trust between transacting parties through automation and cryptography. Each participant holds an identical copy of the blockchain, which consists of blocks of validated transaction data linked together. A new block is only added when a majority of participants reach consensus, preventing hacking of the immutable record. Potential applications beyond digital currencies include land titles, micropayments, and electronic health records.

1. BLOCK CHAIN TECHNOLOGY
THE NEXT BIG THING AFTER INTERNET
Over 15+ years of industry experience in
integration technologies, API, SOA and
Cryptography. Exposed high end cryptographic
encryption technologies using following Quantum
Principles using Quantum Computing. Currently
working one of best Health Care Company in
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2. How Internet Works Internet is wire actually buried in the
ground. It might be fiber optics, copper
or sometime Satellite. So in simple term
Internet is a wire.
172.217.0.7
gmail.com
172.217.0.5
yahoo.com
ISP
Comcast
ISP
AT&T
Router
192.168.56.3
Router
192.168.56.3
172.217.0.6
facebook.com
Internet 172.217.1.4
172.217.1.1 172.217.1.2 172.217.1.3

3. Why Blockchain ?
To understand the need of Blockchain, lets take the best case study of Bitcoin which is first successful
implementation of Blockchain technology. Today when we (aka customer) go for a shopping in a retail store like
Walmart (aka provider) we typically use financial tools like credit card issued by a bank to complete the transaction.
Customer
Retail
Store
Financial
Institution
(e.g. Bank)
Provider
Here between customer and provider we have bank who mediates the transaction i.e takes the money from customer
and route the same money to the provider. And this process takes time as it goes through other clearing and
compliance. Now the question why do we need a mediator here? Why can’t customer directly send their money or
asset to provider directly. The answer is TRUST. Customer and provider do not trust each other. Provider wants to
make sure customer’s asset is legitimate and real. So it takes help of financial institution like Bank to mediate the
process and record the transaction.

4. Why Blockchain ? Continue…
This process really worked well over the last few centuries. However this process has some huge drawbacks
 It is slow because financial institution needs to make sure customer has money in their account. Then it
needs to move the same securely to provider’s account. This can not be done in real-time because
customer and provider account is maintain in two separate book or ledger maintained by two separate
entity.
 It does not support micro payment as Intermediaries like Bank impose a minimum fee on every
transaction.
 It is hackable or not secured. There is always a risk of fraud in this process and we need apply active
monitoring.
 Its is costly as it involves intermediaries, manual process requires active monitoring.
 It makes integration really difficult at global scale

5. Why Blockchain ? Continue…
Blockchain is a protocol that solves all these problem. It’s a technology which helps to maintain an immutable
distributed Digital Ledger in an Automated Fashion where no manual process involves. Through Automation it
established the trust and using Cryptography it makes sure security is full proof. As it is automated it is fast. As
there is no intermediaries, there is no minimum transaction fee which make micro payment a reality
Customer
Retail
Store
Bitcoin
Blockchain
Network
Provider

6. What is Blockchain
Blockchain at its core is a Data Structure implemented & automated through a network of computers or nodes.
Block 1
Immutable
Data Set 1
Block 2
Immutable
Data Set 2
Data
Set 1
+
New
Validated
Transaction
Block 3
Immutable
Data Set 3
Data
Set 2
+
New
Validated
Transaction
Block N
Immutable
Data Set N
Data
Set N
+
New
Validated
Transaction
Mining
Mining
Mining

7. What is Blockchain
Every block in the blockchain is maintained by all the participant of the Blockchain eco-systems. So when new transaction comes through a
participant, every other participant (General rule 51% of the participant) needs acknowledge and approve that transaction before it becomes
part of the block. Now as every block fundamentally designed to be immutable, a new block gets created with newly approved data set which
has reference to its previous block which forms a chain of block like a Linked List Stack where new block gets added on top always. The
immutability feature of Blockchain makes it secured. Every participant holds same immutable block and until more than 51% of participant
agrees a new will not be acceptable. This is makes whole system impossible to hack. This is biggest differentiating factor of Blockchain
technology.
Participant 1 Participant 2
Participant 3 Participant 4
Block N Block N
Block N Block N
Participant 5
Block N + New
Data
Block N
Validate & Approve
Validate & Approve

8. Potential Use Cases
In Bitcoin world Blockchain enabled transfer asset over IP. However blockchain as a technology has implication beyond
Digital Currency like Bitcoin. The same principal can be applied any use cases which needs to maintain history of records
through immutable data set for integrity and consistency of the overall system. Few other potential use cases
Digital Title Deeds
Micro Payment
EHR – Patient’s Electronic Health Records System