bct unit - 2.pdfyfygeuuftruhsghdjdghgjhffj

22u45a0508 13 views 17 slides Aug 29, 2025
Slide 1
Slide 1 of 17
Slide 1
1
Slide 2
2
Slide 3
3
Slide 4
4
Slide 5
5
Slide 6
6
Slide 7
7
Slide 8
8
Slide 9
9
Slide 10
10
Slide 11
11
Slide 12
12
Slide 13
13
Slide 14
14
Slide 15
15
Slide 16
16
Slide 17
17

About This Presentation

Bct


Slide Content

### Hashing in Blockchain
**Hashing** is a crucial process in blockchain technology that ensures security, integrity, and efficiency.
It involves converting input data of any size into a fixed-length string of characters called a **hash
value** or **digest** using a mathematical function called a **hash function**.

### How Hashing Works in Blockchain
1. **Input Data**: Any transaction or data to be recorded on the blockchain.
2. **Hash Function**: The input is passed through a cryptographic hash function like **SHA-256**.
3. **Output (Hash Value)**: A fixed-length string is generated, regardless of the size of the input.
For example:
Input: "Hello, Blockchain!"
Hash (using SHA-256): `f0b9b38977565356da808672d2291c6a97225e928d4b0734e6be0d0a22628e57`

### Key Features of Hashing
1. **Deterministic**:
- The same input will always produce the same hash value.
2. **Fixed Length**:
- Regardless of input size, the output (hash) length is fixed (e.g., 256 bits for SHA-256).
3. **Irreversibility**:
- It’s impossible to reverse-engineer the input from the hash.
4. **Sensitivity to Changes**:
- Even a small change in input drastically changes the output hash.
5. **Fast Computation**:
- Hash functions are designed to compute quickly, ensuring efficiency.

### Role of Hashing in Blockchain

1. **Data Integrity**:
- Hashing ensures that once data is recorded, it cannot be altered. If someone tries to modify data in a
block, its hash value will change, making the tampering evident.
2. **Linking Blocks**:
- Each block in a blockchain contains:
- Its own hash.
- The hash of the previous block.
- This forms a chain, where altering one block breaks the entire chain, ensuring security.
3. **Proof of Work**:
- Hashing is used in mining to solve complex puzzles. Miners repeatedly hash data until they find a
hash that meets specific criteria (e.g., starting with a certain number of zeros).
4. **Efficient Search and Verification**:
- Hashing allows quick verification of data and transactions without storing the entire dataset.
### Hashing Example in Blockchain

1. **Transaction Data**:
- Alice sends 1 BTC to Bob.
2. **Hashing the Transaction**:
- Input: Transaction details.
- Output: A unique hash value.
3. **Block Creation**:
- The hash of the transaction is stored in the block.

4. **Linking Blocks**:
- The block also contains the hash of the previous block, creating a secure chain.

---

### Benefits of Hashing in Blockchain

1. **Tamper-Proof**: Prevents unauthorized modifications.
2. **Transparency**: Changes in any block are immediately detectable.
3. **Security**: Hashing algorithms like SHA-256 are highly secure and resistant to attacks.
4. **Efficiency**: Ensures quick processing and verification of data.

In summary, hashing is the backbone of blockchain technology, ensuring security, immutability, and
trustworthiness of the data recorded on the chain.


Public key cryptosystems (also known as **asymmetric cryptosystems**) are a way to secure
communication using two keys: a **public key** and a **private key**. These keys are related but not
the same. The **public key** is shared with everyone and is used to encrypt messages or verify digital
signatures, while the **private key** is kept secret and used to decrypt messages or create digital
signatures.

Public blockchains are a type of technology that allows transactions to be recorded across many
computers. This decentralized system makes the data secure, transparent, and permanent, with no
single person or company in charge.

### **Key Concepts**
- In **public key cryptosystems**:
- **Public Key**: Open to everyone, used for encryption or verification.
- **Private Key**: Kept secret, used for decryption or signing.

- **Asymmetric**: The keys are different for encryption and decryption.

- In **public blockchains**:
- **Open**: Anyone can join and view the data.
- **Decentralized**: No central authority controls it.
- **Consensus Mechanism**: Methods like Proof of Work (PoW) or Proof of Stake (PoS) ensure all
participants agree on transactions.

### **Examples and Uses**
1. **Public Key Cryptosystems**:
- **RSA**: Used to secure data by factoring large prime numbers.
- **ECC**: A more efficient system for secure communication with smaller keys.
- **Diffie-Hellman**: Helps securely share keys over a public network.
- **Uses**: Encrypting emails, securing websites (HTTPS), and verifying identities (digital signatures).

2. **Public Blockchains**:
- **Bitcoin**: A blockchain for cryptocurrency transactions.
- **Ethereum**: A blockchain that also supports smart contracts and apps.
- **Uses**: Cryptocurrencies, decentralized finance (DeFi), smart contracts, and tracking products in
supply chains.

### **Pros and Cons**
- **Public Key Cryptosystems**:
- **Pros**: No need to share private keys, making communication and authentication secure.
- **Cons**: Slower and more resource-intensive than symmetric encryption because of complex math.

- **Public Blockchains**:
- **Pros**: Transparent, secure, and hard to change once data is added. Great for trustless operations
like cryptocurrencies.
- **Cons**: Can be slow and expensive because of the large number of participants and complex
processes.

### **Private Blockchains**
A **private blockchain** is a closed network where only certain people or organizations are allowed to
participate. These blockchains are faster and more customizable but are usually controlled by a central
entity.

- **Key Features**:
- **Permissioned**: Only trusted participants can join.
- **Centralized Control**: One organization or group makes the decisions.
- **Efficient Consensus**: Faster than public blockchains because fewer participants are involved.

- **Examples and Uses**:
- **Hyperledger Fabric**: Used by businesses for things like supply chain tracking and finance.
- **R3 Corda**: Used by banks and financial institutions.
- **Uses**: Private networks for business transactions, healthcare data, and secure voting.

### **Choosing Between Public and Private Blockchains**
- **Public Blockchains** are good for projects that need openness, transparency, and no central control,
like cryptocurrencies and decentralized applications (dApps).
- **Private Blockchains** are better for businesses needing more control over who can join, faster
transactions, and privacy, like in supply chain management or finance.

In the end, whether you choose a public or private blockchain—or use a public key cryptosystem—
depends on the specific needs of your project, such as security, privacy, and efficiency.

### **Hash Puzzles**
A **hash puzzle** is a cryptographic challenge where participants must find an input that, when passed
through a hash function, produces a specific output or meets certain conditions. Hash puzzles are widely
used in **blockchain systems** and **cryptographic protocols** to ensure security and fairness.

---

### **How Hash Puzzles Work**
1. **Hash Function**: A hash function takes input data and generates a fixed-size output (a hash) that
looks random. Common hash functions include SHA-256 and SHA-3.
2. **Puzzle Goal**: The participant must find an input (or "solution") that generates a hash meeting
specific criteria, such as starting with a certain number of zeroes.
3. **Trial and Error**: Solving the puzzle requires trying many possible inputs until the desired hash is
produced.

---

### **Applications of Hash Puzzles**
1. **Proof of Work (PoW) in Blockchain**:
- Hash puzzles are fundamental to **Bitcoin** and other PoW blockchains.
- Miners solve hash puzzles by finding a **nonce** (a random number) that, when combined with
transaction data, produces a hash with a specific number of leading zeroes.
- This process secures the network, prevents spam, and adds new blocks to the blockchain.

2. **Data Security**:

- Hash puzzles can ensure that unauthorized users cannot quickly reverse-engineer sensitive data or
access systems without solving the puzzle.

3. **Rate Limiting and Spam Prevention**:
- Systems like **Hashcash** use hash puzzles to deter spam by requiring senders to solve a small
computational puzzle before sending emails.

---

### **Example of a Hash Puzzle**
Imagine a hash function (e.g., SHA-256) and a target condition that the resulting hash must start with
**"0000"**.

1. **Given Input**:
- Data to hash: `"block_data"`
- Starting nonce: `0`

2. **Solve the Puzzle**:
- Concatenate the data and nonce (e.g., `"block_data0"`, `"block_data1"`, etc.).
- Hash each combination until a hash starting with "0000" is found.

3. **Solution**:
- Suppose `"block_data12345"` produces the hash **"0000abcd1234..."**.
- The nonce `12345` is the solution.

---

### **Challenges with Hash Puzzles**
- **Computational Intensity**: Solving hash puzzles requires significant computational resources.
- **Energy Consumption**: PoW systems like Bitcoin consume large amounts of energy due to the high
computational demand.
- **Difficulty Adjustment**: To maintain network stability, blockchains adjust the difficulty of hash
puzzles based on the time it takes to solve them.

---

### **Advantages**
- Provides robust security by making solutions computationally expensive to find.
- Prevents spamming and denial-of-service attacks in certain applications.
- Ensures fairness in blockchain systems through decentralized mining.

### **Disadvantages**
- Energy-intensive in large-scale applications like blockchain.
- Requires specialized hardware (e.g., ASICs) for competitive performance in mining.

---

Hash puzzles are a cornerstone of modern cryptographic systems and decentralized networks, balancing
security and efficiency through computational challenges. If you’d like a deeper explanation or real-
world examples, feel free to ask!

### **What is Digital Identity Verification?**
Digital identity verification is the process of confirming that someone is who they claim to be using
digital technologies. It replaces traditional methods like showing a physical ID with modern, online tools
that are faster, more secure, and more convenient.

---

### **How Does Digital Identity Verification Work?**
The process usually involves the following steps:
1. **Collecting Information**: The user provides personal details like name, date of birth, and an ID
document (e.g., passport or driver’s license).
2. **Verification**: The system checks the information provided against trusted databases or by
analyzing the document using advanced technologies like AI or OCR (Optical Character Recognition).
3. **Biometric Checks**: Some systems also use facial recognition, fingerprint scans, or voice analysis to
ensure the person’s physical presence matches their ID.
4. **Approval**: If all checks are successful, the identity is verified.

---

### **Types of Digital Identity Verification Methods**
1. **Document Verification**:
- Scanning official documents like passports or driver’s licenses.
- The system checks for authenticity and compares it to stored records.

2. **Biometric Verification**:
- Matching the user’s face, fingerprints, or iris with pre-registered data.
- Example: Unlocking your phone using Face ID or a fingerprint.

3. **Database Checks**:
- Comparing provided details with government or private databases.
- Common for background checks.

4. **Two-Factor Authentication (2FA)**:
- Verifying identity using two separate factors, like a password and a one-time PIN sent to your phone.

---

### **Technologies Used in Digital Identity Verification**
1. **AI and Machine Learning**:
- Analyze and detect fraudulent documents or unusual behaviors.

2. **Blockchain**:
- Stores identity data securely and ensures transparency and tamper-proof records.

3. **Biometric Tools**:
- Facial recognition, fingerprint scanners, and voice recognition systems.

4. **Encryption**:
- Protects sensitive information during transmission and storage.

---

### **Benefits of Digital Identity Verification**
1. **Enhanced Security**: Reduces fraud by verifying identities more accurately.
2. **Convenience**: Users can verify their identity online, avoiding in-person visits.
3. **Speed**: Automated systems complete verification in seconds or minutes.

4. **Scalability**: Can handle large numbers of verifications quickly.

---

### **Common Use Cases**
1. **Banking and Finance**: Opening accounts, approving loans, or enabling online payments.
2. **E-commerce**: Preventing fraud in online purchases.
3. **Healthcare**: Verifying patient records and giving access to medical data.
4. **Travel and Hospitality**: Fast check-ins at hotels and airports.
5. **Government Services**: Issuing digital IDs or managing e-voting systems.

---

### **Challenges in Digital Identity Verification**
1. **Privacy Concerns**: Users worry about how their personal data is stored and used.
2. **Fraud**: Sophisticated hackers may try to bypass verification systems.
3. **Accessibility**: Not everyone has access to the technology required for digital verification.
4. **Cost**: Advanced verification systems can be expensive for businesses.

---

### **The Future of Digital Identity Verification**
As more services move online, digital identity verification will become even more important.
Technologies like blockchain and AI will make the process more secure, seamless, and user-friendly.
Biometric systems will also play a bigger role, making identity verification faster and more reliable.

### **What is Blockchain Neutrality?**
Blockchain neutrality refers to the principle that blockchain technology should remain impartial and
unbiased, allowing anyone to use, develop, and interact with it without favoritism or restrictions based
on factors like geography, identity, or use cases. The goal is to ensure that blockchain networks operate
as open, inclusive, and universally accessible systems.

---

### **Key Principles of Blockchain Neutrality**
1. **Decentralization**: No single entity controls the network, ensuring fair access for all participants.
2. **Permissionless Access**: Anyone can join the network, validate transactions, or develop
applications without needing approval from a central authority.
3. **Transparency**: All transactions and processes are visible to everyone, reducing the risk of hidden
agendas or manipulation.
4. **Impartiality**: The network does not favor any specific group, organization, or country.
5. **Interoperability**: Blockchain networks should be able to work with other systems and
technologies, fostering collaboration rather than competition.

---

### **Why is Blockchain Neutrality Important?**
1. **Global Adoption**: Neutrality ensures that blockchain can be adopted and trusted across different
regions and industries without being perceived as biased or exclusive.
2. **Innovation**: Open and neutral platforms encourage developers and organizations to experiment
and build new applications.
3. **Trust and Fairness**: A neutral blockchain inspires trust by treating all participants equally.
4. **Avoiding Centralization**: Neutrality prevents powerful entities from gaining control and turning a
decentralized system into a centralized one.

---

### **Challenges to Blockchain Neutrality**
1. **Government Regulations**: Certain countries may impose restrictions or bans on blockchain usage,
limiting its neutrality.
2. **Centralized Influence**: If a blockchain is dominated by a few powerful participants (e.g., miners or
validators), neutrality can be compromised.
3. **Technical Barriers**: High costs or technical complexity may unintentionally exclude participants.
4. **Censorship**: Some networks may face pressure to block certain transactions or users, violating
the neutrality principle.

---

### **How to Achieve Blockchain Neutrality?**
1. **Decentralized Governance**: Ensure decision-making power is distributed among all participants,
not concentrated in one group.
2. **Open Source Development**: Encourage transparency by making the blockchain code available for
public review and contributions.
3. **Cross-Platform Collaboration**: Develop standards and protocols that allow different blockchains
to work together seamlessly.
4. **Education and Accessibility**: Lower the entry barriers by making blockchain tools and knowledge
accessible to everyone.

---

### **Examples of Neutral Blockchains**
1. **Bitcoin**: Designed as a decentralized and permissionless network with no central authority.
2. **Ethereum**: A platform for building decentralized applications that encourages open participation.

3. **Polkadot**: Focuses on interoperability, allowing different blockchains to communicate and
collaborate.

---

### **The Future of Blockchain Neutrality**
Blockchain neutrality is critical for maintaining the original vision of decentralization and fairness. As the
technology evolves, ensuring that no single entity or agenda dominates will be essential to achieving
global trust, inclusivity, and innovation.

### **Digital Art and Blockchain**

Blockchain technology has revolutionized digital art by introducing a secure, decentralized way to
authenticate, trade, and own digital assets. This transformation is mainly driven by **Non-Fungible
Tokens (NFTs)**, which are unique digital assets stored on a blockchain.

---

### **What is Digital Art on Blockchain?**
Digital art on blockchain refers to artwork that is tokenized and represented as a unique, traceable, and
verifiable asset on a blockchain network. Unlike traditional digital files, which can be copied infinitely,
blockchain ensures the originality and ownership of digital art.

---

### **Key Features**
1. **Authenticity**: Blockchain verifies the originality and creator of the artwork.
2. **Ownership**: NFTs prove who owns a piece of digital art, even if it is shared or copied.

3. **Immutability**: Once recorded on the blockchain, ownership and transaction details cannot be
altered.
4. **Transparency**: Buyers and sellers can view the entire transaction history of the artwork.
5. **Royalties**: Artists can program automatic royalties for future sales.

---

### **How Does It Work?**
1. **Creation**: Artists create digital art and tokenize it by creating an NFT on a blockchain platform
(e.g., Ethereum, Solana).
2. **Tokenization**: The art is linked to an NFT, which includes metadata like the creator’s name,
creation date, and ownership details.
3. **Marketplace**: The NFT is listed for sale on platforms like OpenSea, Rarible, or Foundation.
4. **Ownership Transfer**: When someone buys the NFT, the ownership is transferred to their
blockchain wallet.

---

### **Benefits for Artists**
1. **Global Reach**: Artists can sell their work directly to a global audience without intermediaries.
2. **Royalties**: Smart contracts can ensure artists earn a percentage of resale profits.
3. **Protection**: Blockchain prevents unauthorized alterations or fake versions of the artwork.
4. **Community Building**: Artists can interact directly with collectors and fans.

---

### **Benefits for Collectors**

1. **Proof of Ownership**: Collectors can prove they own a specific piece of digital art.
2. **Investment Opportunity**: Digital art can appreciate in value over time.
3. **Ease of Transfer**: NFTs can be traded quickly and securely on blockchain platforms.
4. **Access to Exclusivity**: Collectors can own rare, limited-edition digital artworks.

---

### **Popular Platforms for Digital Art on Blockchain**
1. **OpenSea**: The largest marketplace for buying and selling NFTs.
2. **Rarible**: A community-owned platform for NFT creation and trading.
3. **Foundation**: Focused on high-quality, curated digital art.
4. **SuperRare**: Specializes in unique, single-edition digital artworks.

---

### **Challenges and Criticisms**
1. **Environmental Concerns**: Some blockchains, like Ethereum, consume significant energy, leading
to environmental concerns (though newer systems like Ethereum 2.0 address this).
2. **High Costs**: Gas fees for minting and trading NFTs can be expensive.
3. **Copyright Issues**: Ensuring that the person minting the NFT is the true creator can be challenging.
4. **Speculation**: The NFT market is often criticized for being driven by hype, leading to overvalued
assets.


### **Future of Digital Art on Blockchain**
- **Sustainability**: Transition to energy-efficient blockchains like Solana and Polygon.

- **Accessibility**: Lower costs and simpler tools for minting NFTs will enable more creators to
participate.
- **Integration**: NFTs may expand beyond art into gaming, virtual reality, and the metaverse.
- **Decentralized Curation**: More platforms may adopt community-driven curation for better quality
control.

Blockchain has opened up exciting new possibilities for digital artists and collectors, creating a dynamic
marketplace for creativity and innovation. As the technology evolves, it will likely continue to reshape
the digital art world.
Extensibility of Block chain concepts,
Charcstricts of block chain
Tags