2. It is a technology, which combines the cryptography and
distributed ledger.
Satoshi nakamoto is the person who developed “bitcoin” and
also they devised the first blockchain database.
He developed he network model in which the network of
computers collaborate the shared and secure database.
In simple way, we can describe the blockchain technology as a
suite of distributed ledger technologies that are programmed to
record and track anything of existing data.
Before moving into blockchain, we need to have an idea about :
1.Cryptography
2.Distributed ledger
CRPTOGRAPHY:
Cryptography involves creating written or
generated codes that allow information to be
kept secret. Cryptography converts data into a
format that is unreadable for an unauthorized
user
DISTRIBUTED LEDGER:
IT IS A DATABASE THAT IS SHARED,
SYNCHRONISED AMONG THE MEMBER OF THE
NETWORK.
3. Ledger :
It is a database, where confirmed transactions are
recorded.
Why Blockchain ?
•The way it stores the data like no creates trust and
data.
•It doesn’t require any middle person.
•Blockchain stores information in the form of blocks.
The way it tracks & stores data is reliable.
•These blocks are linked together in chronological
order for a continues line.
STRUCTURE OF BLOCK
5. Blocks contains
•Data.
•Hash.
•Previous hash.
Data :
The value or content stored into the block by the user.
In This Way Blocks Are Connected With
Each Other.
Hash:
Hash is the function that converts one value to
another.
Previous hash:
The hash code acquired to the block with previous
block’s.
6. •Blockchain is a p2p network.
•In this scenario data transmits from one place to another
place only.
•There will be no intermediate agent to access the data in
between transmission.
•There will be a direct data transmission between two
persons throughout the world.
• The data is stored in blocks. Before receiving the data into blocks,
data will compare with hashing code. After verifying the hash code,
the data is stored into blocks.
• If you want to make changes to data in the blocks, it doesn’t
rewrite the existing data. Instead of that, a new block is created in
the chain with the time stamp.
• After changes in data, it will be recorded with the owner name,
date & time of changes.
7. For example :
In the day to day scenario, let us consider two persons A & B.
Person A wants to send a secret mail to person B. While
transferring the data directly to person B, there is a chance
to authorize the secret mail by an external person.
In this case, the external person may misuse the secret mail.
Perso
n A
Perso
n B
Secr
et
mail
Perso
n A
Perso
n B
Secr
et
mail
Exter
nal
perso
n
8. •To overcome this case, the data should be sent through encrypted file.
•The encrypted file can be accessed by person B by their private key.
•Hence the data cannot be accessed by the external person without entering the private key.
•It will be more secure.
•In this way the data will be secured.
Person
A
Person
B
Secret
mail
Data in encrypted
form
9. Types of Blockchain ?
There are three types of blockchain networks we are using now.
Blockchain Networks
Public Blockchain Private Blockchain
Consortium or Federated
Blockchain
10. Public Blockchain :
•Its an open network.
•Anyone can be the part of the Blockchain network.
•You can have your node to maintain blockchain network.
•You are able to join the public network.
•Read and write to the data is accepted.
Examples :
•Bitcoin
•Ethereum
•Monero
•Dash
•Litecoin
NODE :
•A Node is a device in a blockchain
network, it can any active electronice
device including a computer, phone
etc
•Nodes are the individual parts of the
blockchain network.
11. Private Blockchain :
•This network is for only single organizations or
company.
•Members in that organizations or company can access
this network.
•The data can be read and write is restricted in this
network.
•Edit permissions are kept centralised.
Benefits of private blockchain :
•Financial transactions
•Security
Example :
•Bankchain.
12. Consortium or Federated blockchain:
•It is a partly private network. It differs slightly from a fully private network.
•In this network, group of people/companies will be present.
•Only a known entity can access the network.
•This type of network is faster and provides higher transaction privacy.
•This platform is great for collaborations at the organizations level.
Example :
r3 is the organization works with this type of blockchain.
EWF ( Energry Web Foundation) also works with this type of blockhain.
13. Reasons why blockchain ?
•The way it tracks the data and store the data.
•Trust
•No intermediate factors.
International law
Governance
Economics
Security
• It is a non-destructive way of tracking
data changes over time.