Blockchain_is good for engineering INTRO.pptx

Block chain introduction is good for students

1. Blockchain Masterclass

2. Cryptographer David Chaum  first proposed a blockchain-like protocol in his 1982 dissertation "Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups. The first decentralized blockchain was conceptualized by a person (or group of people) known as  Satoshi Nakamoto  in 2008.

3. BLOCKCHAIN

4. BLOCKCHAIN Block (A Transaction or a list of transactions) + chain (Transaction got listed in an immutable ledger). In Brief, Blockchain is a shared (distributed) database which is immutable (Read, write can’t update) that is shared among the nodes of a computer network. The nodes will be responsible for verifying the incoming transaction and add it to the ledger which will be updated on all the other nodes in the network. 4

5. WHY blockchain? 5 Blockchain  facilitates the verification and traceability of multistep transactions that require verification and traceability . It can ensure secure transactions, lower compliance expenses, and accelerate data transfer processing. Blockchain technology can aid in contract administration and product auditing

6. TYPES OF BLOCKCHAIN

7. Types of Blockchain: 7 Public blockchain Private blockchain Consortium blockchain There are some types of blockchain based on the usage, authority, authenticity, privacy and Security.

8. Publi c Blockchain: 8 A nyone can participate in the network and do the transaction and can have the access for the data available in network. The people are the one who control the network. E .g., E thereum, Bitcoin, All cryptocurrency networks

9. private Blockchain: 9 O nly the people in an organization can participate and have the access to the data in the network. Only the organization can control the network. E .g., Hyperledger fabric, Ripple

10. consortium Blockchain: 10 I t consists of more than one organization and only controlled by preliminary assigned users. E .g., H yperledger fabric, Multichain

11. Its scope includes a wide range of applications in various industries, including finance, healthcare, supply chain management, and more. The importance of blockchain lies in its ability to provide security, transparency, and efficiency in digital transactions, while eliminating the need for intermediaries. It can improve trust, reduce costs, and streamline processes, leading to increased productivity and better outcomes for businesses and individuals alike. Additionally, blockchain technology has the potential to enable new business models and disrupt traditional industries. 11 Scope and importance of technology

12. Future Opportunities of blockchain: Decentralized finance (DeFi): blockchain enables secure and transparent peer-to-peer transactions without the need for intermediaries like banks or financial institutions. Supply chain management: blockchain can provide a transparent and immutable ledger of every transaction in a supply chain, reducing fraud and increasing efficiency. Digital identity: blockchain-based solutions can provide secure and tamper-proof digital identity verification, which could revolutionize the way we authenticate individuals and access services. 12

13. Future Opportunities of blockchain: Voting and governance: blockchain can provide a secure and transparent system for voting and decision-making, improving the integrity of democratic processes. Energy trading and management: blockchain can enable peer-to-peer energy trading, enabling individuals and organizations to buy and sell energy directly from each other, reducing costs and increasing efficiency. 13

14. Blockchain platforms  There are many blockchain platforms, each with its own unique features and use cases. Some of the most well-known blockchain platforms include Bitcoin, Ethereum, Ripple, Litecoin, and Stellar. Other notable blockchain platforms include EOS, Cardano, Tron, and Binance Smart Chain. Each of these platforms has its own unique consensus mechanisms, programming languages, and smart contract capabilities, making them suited for different types of decentralized applications and use cases. 14

15. Crypto mining is the process of validating transactions and adding new blocks to a blockchain by solving complex mathematical problems using specialized computer hardware. In a Proof-of-Work (PoW) blockchain, such as Bitcoin or Ethereum, miners compete to solve the mathematical problem and the first one to solve it and validate the block is rewarded with new cryptocurrency units. The validation process ensures the integrity of the transactions and the security of the blockchain network. 15 Mining Miners (THE NONCE AND THE CRYPTOGRAPHIC PUZZLE) 

16. CONSENSUS PROTOCOL

17. ( A general agreement) (Gossip verification) 17 While doing the validation of a block, the other nodes will try to find out that the verified transaction is valid or not. If a particular no. of. nodes agrees on the verification the transaction, it will be accepted by the other nodes. If a node is trying to change its local copy of data and trying to submit the data to the network, the other nodes will compare the data that having itself and with few more nodes. If it is found out that is not a valid data, the nodes ignores it. Consensus protocol

18. Consensus protocol 18 This often requires coordinating the transactions to reach  consensus or agree on some data value that is needed during computation. Example applications of consensus include agreeing on what transactions to commit to a database. Every correct process must be agreed on the same value by all nodes in the network.

19. Proof-of-work 19 POW (proof of work) is a consensus mechanism used in some blockchain networks to verify transactions and add new blocks to the chain.  In a POW system, miners compete to solve complex mathematical puzzles, which requires significant computational power, and the first one to solve the puzzle is rewarded with newly minted cryptocurrency.  The solved puzzle serves as proof that the miner has done the necessary work to validate transactions and add a new block to the chain. the difficulty of the puzzle is adjusted periodically to ensure that new blocks are added to the chain at a consistent rate.

20. Proof-of-Stake 20 POS (Proof of Stake) is a consensus mechanism used in some blockchain networks as an alternative to the more energy-intensive Proof of Work (POW) mechanism.  In a POS system, validators (or "forgers") are selected to validate transactions and create new blocks based on the amount of cryptocurrency they hold and "stake" as collateral. Validators are chosen at random or through a selection process that takes into account their stake, and they are incentivized to act honestly through rewards and penalties.  The process is designed to require less computational power and energy consumption compared to POW, making it a more environmentally friendly alternative.

21. Drawbacks of Consensus Algorithm: 21 Consensus algorithms can be easily compromised by using 51% attack. If the attacker owns the 51% of the nodes and wants to make any change in the blocks, he can do it.

22. FAULT TOLERANCE MECHANISM

23. Redundancy : Multiple nodes in the network keep a copy of the same blockchain ledger, which can help to prevent data loss in the event of a single node failure. Consensus algorithms : These mechanisms ensure that all nodes in the network agree on the state of the blockchain, even if some nodes may be faulty or malicious. This helps to prevent double-spending, fraud, and other attacks. Cryptographic techniques : Blockchain networks use various cryptographic methods, such as digital signatures, hash functions, and encryption, to ensure data integrity, privacy, and security. Automatic error correction : Some blockchain networks use automatic error correction mechanisms that can detect and correct errors or discrepancies in the blockchain without the need for human intervention. 23

24. A Block in blockchain consists of: 24 Block no Nonce Data Hash of the previous block Hash of the current block A timestamp

25. 25

26. DISTRIBUTED LEDGER

27. Distributed ledger Distributed Ledger means nothing but a database which will be shared with everyone in the network. It is an immutable (only read but can’t update). Once a transaction is recorded in a ledger and synced with all the Ledger in the network. There is no central authority for control the Ledger. Anyone could have a copy if they took place in the network. 27

28. THANK YOU