Documentation: -
Blockchain Technology
1.
Introduction: -
-What is Blockchain Technology?
A blockchain is a public ledger of all bitcoin transactions that have ever been executed. A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database.
A blockchain is a public ledger of all bitcoin transactions that have ever been executed. A block is the “current” part of a blockchain which records some or all of the recent transactions, and once completed, goes into the blockchain as permanent database.
-What is a “Bitcoin”?
Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds.
Bitcoin is a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds.
“Blockchain technology continues to redefine not
only how the exchange sector operates, but the global financial economy as a
whole.” – Bob Greifeld, Chief Executive of NASDAQ“
In financial markets there’s always a mechanism to correct an attack. In a blockchain there is no mechanism to correct it — people have to accept it.”-
In financial markets there’s always a mechanism to correct an attack. In a blockchain there is no mechanism to correct it — people have to accept it.”-
-What is “Block”?
Transaction data is permanently recorded in files called blocks. They can be thought of as the individual pages of a city recorder's record book (where changes to title to real estate are recorded) or a stock transaction ledger. Blocks are organized into a linear sequence over time. New transactions are constantly being processes by miners into new blocks which are added to the end of the chain and can never be changed or removed once accepted by the network. A block has an average life cycle of 10 minutes.
Transaction data is permanently recorded in files called blocks. They can be thought of as the individual pages of a city recorder's record book (where changes to title to real estate are recorded) or a stock transaction ledger. Blocks are organized into a linear sequence over time. New transactions are constantly being processes by miners into new blocks which are added to the end of the chain and can never be changed or removed once accepted by the network. A block has an average life cycle of 10 minutes.
-Who are
“miners”?
Miners are the competitors, who try to solve the mathematical problem and try to win bitcoin in the form of rewad.
Miners are the competitors, who try to solve the mathematical problem and try to win bitcoin in the form of rewad.
LET’S TAKE AN EXAMPLE OF THIS CASE:-
SUPPOSE
“A” wants to give 5 bitcoin to “B” AND “C” ,“D” are the two minors who will try to solve
the mathematical problem between A-B who
so ever do the or solve the problem first they will be rewarded by bitcoin, here
suppose C solve the problem first then C will be rewarded in the form of
bitcoin and C will immediately publish this on net ,this will be known as the
key of the problem , now once the key is published (solution of the problem) it
can’t be copied by any other and thud there will be no chance of hacking or
any mishappening.
-What is
“Bitcoin mining”?
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
Bitcoin mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place.
1.
As a public ledger
system, blockchain records and validate each and every transaction made, which
makes it secure and reliable.
2.
All the transactions
made are authorized by miners, which makes the transactions immutable and
prevent it from the threat of hacking.
3.
Blockchain technology
discards the need of any third-party or central authority for
peer to peer transactions.
peer to peer transactions.
4.
Decentralization of the
technology.
3. How blockchain is easier cheaper and faster
than any other transaction?
Blockchain technology allows everyone to hold and make transactions as strangers but in a completely transparent manner. There is no mediator in between two people making the transaction, and the entire process becomes easier and cheaper. This concept can be applied to the entire digital world, making any kind of exchange/transactions secure.
The major focus is on non-financial use cases of blockchain. The non-financial use cases of blockchain have been hot in the recent past with more than 50+ startups coming up in this space. Blockchain Capital (formerly known as Crypto Currency Partners) very recently managed to raise US$7 million towards their second investment fund for bitcoin and blockchain-related ventures specifically focusing on non-financial use cases.
The current non-financial uses cases developed by startups in the sector mainly focus on asset servicing, the Internet of Things, identity management and documentary trade. It will be quite fascinating to see how these use cases are being adopted by governments and the public sector alike to streamline processes, thereby improving the life of the masses
Apart from startups, banks also have been actively investing in this decentralized system as we have shown in a timeline. Various banks have shown interest and started experimenting with the blockchain.
By:-
Anmol Saxena
Robin Mittal
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