Presented by
Ayushi gaur
TOPIC
What is a blockchain
Why is Blockchain Popular?
History of blockchain ?
Types of blockchain networks ?
?
What is Cryptocurrency and how does it work
?
Why do we need different blockchains?
India to propose cryptocurrency ban ?
Disadvantage ?
What is a blockchain
?
A blockchain is a structure that store transactional record.also known as block
of public (database) The data blocks are linked together.
Why is Blockchain Popular?
Suppose you are transferring money to your family or friends from your bank account. You
would log in to online banking and transfer the amount to the other person using their
account number. When the transaction is done, your bank updates the transaction
records. It seems simple enough, right? There is a potential issue which most of us neglec
Technologically, Blockchain is a digital ledger that is gaining a lot of attention and traction
recently. But why has it become so popular? Well, let’s dig into it to fathom the whole
concept.
Record keeping of data and transactions are a crucial part of the business. Often, this
information is handled in house or passed through a third party like brokers, bankers, or
lawyers increasing time, cost, or both on the business. Fortunately, Blockchain avoids this
long process and facilitates the faster movement of the transaction, thereby saving both
time and money.
What is Cryptocurrency and how does it work?
Cryptocurrency is a form of payment that can be exchanged online for goods and
services. ... Cryptocurrencies work using a technology called blockchain. Blockchain is a
decentralized technology spread across many computers that manages and records
transactions. Part of the appeal of this technology is its security.
Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of
people using the name Satoshi Nakamoto.
Blockchain and Bitcoin
Most people assume
Block chain and Bitcoin can be used interchangeably, but in
reality, that’s not the case. Blockchain is the technology capable
of supporting various applications related to multiple industries
like finance, supply chain, manufacturing, etc., but Bitcoin is a
currency that relies on Blockchain technology to be secure.
History of blockchain
A brief history of blockchain:
1991 A cryptographically secured chain of blocks is described for the first time by Stuart Haber
and W Scott Stornetta
1998 Computer scientist Nick Szabo works on ‘bit gold’, a decentralised digital currency
2008 Developer(s) working under the Satoshi Nakamoto release a establishing model
for a blockchain.
Why do we need different blockchains
The most basic need or application of a blockchain is to carry out transactions
or exchange of information through a secure network. But the way people use
blockchain and distributed ledger technology or network vary from case to
case. For instance, if we talk about Bitcoin, which is how blockchain got
introduced in the mainstream. Bitcoin is a digital cryptocurrency which gets
transacted through the blockchain and DLT technologies. This type of
blockchain network is a public network because people from all over the world
can become a node, verify other node and trade bitcoins.
Types of blockchain networks
Public blockchain networks
Private blockchain networks
Public Blockchain
A public blockchain is a non-restrictive, permission-less distributed ledger system.
Anyone who has access to the internet can sign in on a blockchain platform to become
an authorized node and be a part of the blockchain network. A node or user which is a
part of the public blockchain is authorized to access current and past records, verify
transactions or do proof-of-work for an incoming block, and do mining. The most basic
use of public blockchains is for mining and exchanging cryptocurrencies. Thus, the most
common public blockchains are Bitcoin and Litecoin blockchains. Public blockchains are
mostly secure if the users strictly follow security rules and methods. However, it is only
risky when the participants don’t follow the security protocols sincerely.
Example: Bitcoin, Ethereum, Litecoin
. Private Blockchain
A private blockchain is a restrictive or permission blockchain operative only in a closed
network. Private blockchains are usually used within an organization or enterprises where
only selected members are participants of a blockchain network. The level of security,
authorizations, permissions, accessibility is in the hands of the controlling organization.
Thus, private blockchains are similar in use as a public blockchain but have a small and
restrictive network. Private blockchain networks are deployed for voting, supply chain
management, digital identity, asset ownership, etc.
Examples of private blockchains are; Multichain and Hyperledger projects (Fabric,
Sawtooth), Corda, etc.
Private or Public Blockchain, which one is better?
Well, before passing a final verdict, we have thoroughly studied two main types of
blockchains i.e. private and public blockchains. Both of them have certain distinctions
from one another. However, the main differences lie in terms of security, scalability, and
transparency. On one hand, where a private network might not seem very trustworthy,
you can completely rely on a public network for its intact consensus (proof-of-work)
system.So, in a nutshell, every instance or case of a successful blockchain use that we
have seen till date is of a public blockchain. Public blockchain guarantees security as
hacking the entire network is almost impossible. In addition to this, it offers data
transparency as every node has equal access to the record stored in the blockchain. One
of the very successful examples of a public blockchain is the Bitcoin system.
How Does Blockchain Work
Blockchain consists of three important concepts: blocks, nodes and miners.
Blocks The data in the block.
A 32-bit whole number called a nonce. The nonce is randomly generated when a block is
created, which then generates a block header hash.
The hash is a 256-bit number wedded to the nonce. It must start with a huge number of
zeroes (i.e., be extremely small).
When the first block of a chain is created, a nonce generates the cryptographic hash. The
data in the block is considered signed and forever tied to the nonce and hash unless it is
mined.
India to propose cryptocurrency ban
NEW DELHI/MUMBAI (Reuters) - India will propose a law banning cryptocurrencies,
fining anyone trading in the country or even holding such digital assets, a senior
government official told Reuters in a potential blow to millions of investors piling into
the red-hot asset class.
Aim of india to ban private virtual currency like bitcoin and replace them with digital
offical cryptocurrency even they give time period of six month two cryptocurrency
holder otherwise they will be penalizing charge.even 2019 law has been decided for those
holder using cryptocurrency will be jail for 10 years
Is bitcoin legal
Yes its is legal in india.people is thinking government are banning cryptocurrency but
fact is india is making its own bitcoin.
Disadvantage
i. Power Use
The consumption of power in the Blockchain is comparatively high as in a particular year
the power consumption of Bitcoin miners was alone more than the per capita power
consumption of 159 individual countries. Keeping a real-time ledger is one of the reasons
for this consumption because every time it creates a new node, it communicates with
each and every other node at the same time.
ii. Cost
As per the studies as an average cost of the Bitcoin transaction is $75-$160 and most of
this cost cover by the energy consumption. There are very fewer chances that this issue
we can resolve by the advancement in the technology. As the other factor that is the
storage problem might be covered by the energy issues cannot be resolved.
iii. Uncertain regulatory status
In each and every part of world modern money has been created and controlled by the
central government. It becomes a hurdle for Bitcoin to get accepted by the preexisting
financial institutions.