SRI MANAKULA VINAYAGAR ENGINEERING COLLEGE

(An Autonomous Institution)

MADAGADIPET, PUDUCHERRY-605 107

DEPARTMENT OF INFORMATION TECHNOLOGY

BONAFIDE CERTIFICATE

This is to certify that the work entitled “BLOCK CHAIN TECHNOLOGY” is a bonafide
Seminar Report of work done by HARISH.R [REGISTER NO: 15TH0230], for the
award of B.Tech Degree in Information Technology during the academic year 2022-2023.

FACULTY INCHARGE HEAD OF THE DEPARTMENT

 EVALUATION REPORT

Marks
S. No Evaluation Criteria Marks
Allotted
Presentation was well organized with logical
1 30
flow of ideas
2 Technical Content 20
3 Communication skill 10
4 Body Language 10
5 Seminar Report 20
6 Attendance 10
Total 100

FACULTY INCHARGE

TABLE OF CONTENTS

Sl.No Contents Page No

1. 1. Introduction
 2. 2. History

3. 3. Structure

4. 4. Types

5. 5. Uses

6. 6. Disadvantages

7. 7. Conclusion

8. 8. Presentation Handouts

INTRODUCTION

INTRODUCTION TO BLOCKCHAIN
A blockchain,originally block chain is a growing list of records, called blocks, which
are linked using cryptography.

Each block contains a cryptographic hash of the previous block, a timestamp, and
transaction data (generally represented as a merkle tree root hash).
By design, a blockchain is resistant to modification of the data. It is "an open, distributed
ledger that can record transactions between two parties efficiently and in a verifiable and
permanent way".

For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network

collectively adhering to a protocol for inter-node communication and validating new
blocks.

Once recorded, the data in any given block cannot be altered retroactively without
alteration of all subsequent blocks, which requires consensus of the network majority.

Although blockchain records are not unalterable, blockchains may be considered secure by
design and exemplify a distributed computing system with high Byzantine fault tolerance.

Decentralized consensus has therefore been claimed with a blockchain. Blockchain was
invented by Satoshi Nakamoto in 2008 to serve as the public transaction ledger of the
cryptocurrencybitcoin.

The invention of the blockchain for bitcoin made it the first digital currency to solve the
double-spending problem without the need of a trusted authority or central server.

The bitcoin design has inspired other applications, and blockchains which are readable by
the public are widely used by cryptocurrencies. Private blockchains have been proposed for
business use.

Sources such as the Computerworld called the marketing of such blockchains without a
proper security model "snake oil".

HISTORY
The first work on a cryptographically secured chain of blocks was described in 1991
by Stuart Haber and W. Scott Stornetta.

They wanted to implement a system where document timestamps could not be tampered
with. In 1992, Bayer, Haber and Stornetta incorporated Merkle trees to the design, which
improved its efficiency by allowing several document certificates to be collected into one
block.

The words block and chain were used separately in Satoshi Nakamoto's original paper, but
were eventually popularized as a single word, blockchain, by 2016.
The term blockchain 2.0 refers to new applications of the distributed blockchain database,
first emerging in 2014.

The Economist described one implementation of this second-generation programmable

blockchain as coming with "a programming language that allows users to write more
sophisticated smart contracts, thus creating invoices that pay themselves when a shipment
arrives or share certificates which automatically send their owners dividends if profits reach
a certain level."

As of 2016, blockchain 2.0 implementations continue to require an off-chain oracle to

access any "external data or events based on time or market conditions to interact with the
blockchain."

IBM opened a blockchain innovation research center in Singapore in July 2016. A working
group for the World Economic Forum met in November 2016 to discuss the development of
governance models related to blockchain.

According to Accenture, an application of the diffusion of innovations theory suggests that

blockchains attained a 13.5% adoption rate within financial services in 2016, therefore
reaching the early adopters phase.

Industry trade groups joined to create the Global Blockchain Forum in 2016, an initiative of
the Chamber of Digital Commerce.

In May 2018, Gartner found that only 1% of CIOs indicated any kind of blockchain
adoption within their organisations, and only 8% of CIOs were in the short-term ‘planning
or [looking at active experimentation with blockchain’.

STRUCTURE
A blockchain is a decentralized, distributed and public digital ledger that is used to
record transactions across many computers so that the record cannot be altered retroactively
without the alteration of all subsequent blocks and the consensus of the network.

This allows the participants to verify and audit transactions inexpensively. A blockchain
database is managed autonomously using a peer-to-peer network and a distributed
timestamping server.

They are authenticated by mass collaboration powered by collective self-interests.The result

is a robust workflow where participants' uncertainty regarding data security is marginal.

Blocks
Blocks hold batches of valid transactions that are hashed and encoded into a Merkle tree.
Each block includes the cryptographic hash of the prior block in the blockchain, linking the
two. The linked blocks form a chain.

This iterative process confirms the integrity of the previous block, all the way back to the
original genesis block.

Block time

The block time is the average time it takes for the network to generate one extra block in
the blockchain.Someblockchains create a new block as frequently as every five seconds. By
the time of block completion, the included data becomes verifiable.

In cryptocurrency, this is practically when the transaction takes place, so a shorter block
time means faster transactions. The block time for Ethereum is set to between 14 and 15
seconds, while for bitcoin it is 10 minutes.

Hard forks

A hard fork is a rule change such that the software validating according to the old rules will
see the blocks produced according to the new rules as invalid.

In case of a hard fork, all nodes meant to work in accordance with the new rules need to
upgrade their software.

Decentralization

By storing data across its peer-to-peer network, the blockchain eliminates a number of
risks that come with data being held centrally.

The decentralized blockchain may use ad-hoc message passing and distributed networking.

Peer-to-peer blockchain networks lack centralized points of vulnerability that computer

crackers can exploit; likewise, it has no central point of failure. Blockchain security
methods include the use of public-key cryptography.

A public key (a long, random-looking string of numbers) is an address on the blockchain.

Value tokens sent across the network are recorded as belonging to that address.

A private key is like a password that gives its owner access to their digital assets or the
means to otherwise interact with the various capabilities that blockchains now support.

Data stored on the blockchain is generally considered incorruptible.

Openness

Open blockchains are more user-friendly than some traditional ownership records,
which, while open to the public, still require physical access to view.

Because all early blockchains were permissionless, controversy has arisen over the
blockchain definition. An issue in this ongoing debate is whether a private system with
verifiers tasked and authorized (permissioned) by a central authority should be considered
ablockchain.

Proponents of permissioned or private chains argue that the term "blockchain" may be
applied to any data structure that batches data into time-stamped blocks.

These blockchains serve as a distributed version of multiversion concurrency control

(MVCC) in databases.

Permissionless

The great advantage to an open, permissionless, or public, blockchain network is that

guarding against bad actors is not required and no access control is needed.

This means that applications can be added to the network without the approval or trust of
others, using the blockchain as a transport layer.
 TYPES OF BLOCKCHAINS
Currently, there are three types of blockchain networks – Public blockchains, private
blockchains and consortium blockchains.

Public blockchains

A public blockchain has absolutely no access restrictions. Anyone with an internet

connection can send transactions[disambiguation needed] to it as well as become a
validator (i.e., participate in the execution of a consensus protocol.Usually, such networks
offer economic incentives for those who secure them and utilize some type of a Proof of
Stake or Proof of Work algorithm.

Some of the largest, most known public blockchains are Bitcoin and Ethereum.

Private blockchains

A private blockchain is permissioned.[46] One cannot join it unless invited by the network
administrators. Participant and validator access is restricted.

This type of blockchains can be considered a middle-ground for companies that are
interested in the blockchain technology in general but are not comfortable with a level of
control offered by public networks.

Typically, they seek to incorporate blockchain into their accounting and record-keeping
procedures without sacrificing autonomy and running the risk of exposing sensitive data to
the public internet.

Consortium blockchains

A consortium blockchain is often said to be semi-decentralized. It, too, is permissioned but

instead of a single organization controlling it, a number of companies might each operate a
node on such a network. The administrators of a consortium chain restrict users' reading
rights as they see fit and only allow a limited set of trusted nodes to execute a consensus
protocol.

USES
Blockchain technology can be integrated into multiple areas. The primary use of
blockchains today is as a distributed ledger for cryptocurrencies, most notably bitcoin.
There are a few operational products maturing from proof of concept by late 2016.

As of 2016, some observers remain skeptical. Steve Wilson, of Constellation Research,

believes the technology has been hyped with unrealistic claims. To mitigate risk, businesses
are reluctant to place blockchain at the core of the business structure.

1. Cryptocurrencies

Most cryptocurrencies use blockchain technology to record transactions. For example, the
bitcoin network and Ethereum network are blockchain-based.

2. Banks
Major portions of the financial industry are implementing distributed ledgers for use in
banking, and according to a September 2016 IBM study, this is occurring faster than
expected.

Banks are interested in this technology because it has potential to speed up back office
settlement systems.

Banks such as UBS are opening new research labs dedicated to blockchain technology in
order to explore how blockchain can be used in financial services to increase efficiency and
reduce costs.

Berenberg, a German bank, believes that blockchain is an "overhyped technology" that has
had a large number of "proofs of concept", but still has major challenges, and very few
success stories.

3. to create a permanent, public, transparent ledger system for compiling data on

sales

DISADVANTAGES
Nikolai Hampton pointed out in Computerworld that "There is also no need for a '51
percent' attack on a private blockchain, as the private blockchain (most likely) already
controls 100 percent of all block creation resources.

If you could attack or damage the blockchain creation tools on a private corporate server,
you could effectively control 100 percent of their network and alter transactions however
you wished.

This has a set of particularly profound adverse implications during a financial crisis or debt
crisis like the financial crisis of 2007–08, where politically powerful actors may make
decisions that favor some groups at the expense of others,and "the bitcoinblockchain is
protected by the massive group mining effort. It's unlikely that any private blockchain will
try to protect records using gigawatts of computing power—it's time consuming and
expensive.

He also said, "Within a private blockchain there is also no 'race'; there's no incentive to use
more power or discover blocks faster than competitors. This means that many in-house
blockchain solutions will be nothing more than cumbersome databases.

CONCLUSION
The recent emergent of blockchain technology has paved the way for lots of safe security
issues in various domains.
This technology when combined with various other technology will do wonder in various
domains.

Big players and companies who need to stay on top of the latest development are not likely
to sacrifice performance and control.

Because of the high secured resources people all over the domain world are going through
the Block chain technology that soon going to be the ruling factor in the upcoming Digital
world.

Thus the block chain will definitely be the changing gears of the industry revolution with
high secured services.
PRESENTATION HANDOUTS