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"Think about the last time you made a digital
transaction, whether it was sending money,
sharing data, or even liking a post on social
media. Can you recall any challenges or concerns
you faced regarding the security and
transparency of that transaction?"
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"Many of us have experienced issues like data
breaches, fraud, or even doubts about the
integrity of the information exchanged. Today,
we'll explore a revolutionary technology called
blockchain that addresses these challenges and
offers solutions to ensure secure and
transparent digital transactions."
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Blockchain Technology
By
M Shehzad Tufail
Time : 50 Min
MS (Information Security)
Air University, Islamabad
Sequence
Aim & DLOs
Blockchain technology
Types of Blockchains
Decentralized Nature of Blockchain
Use Beyond Cryptocurrencies
How Blockchain Works ?
Benefits and Challenges of Implementing Blockchain
Conclusion
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Aim
The aim of this lecture is to provide a comprehensive
understanding of the fundamental concepts, working
principles, and potential applications of blockchain.
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Desired Learning Outcomes
1. Understand the Core Concepts of Blockchain.
2. Understand the types of Blockchain.
3. Evaluate the Benefits and Limitations of Blockchain
Implementation.
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Blockchain technology
Blockchain technology is a decentralized and distributed
digital ledger system that records transactions across
multiple computers in a way that ensures security,
transparency, and immutability.
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Blockchain technology
Contd’
Decentralized: Unlike traditional databases controlled by a single entity,
blockchain operates on a network of computers (nodes), ensuring transparency
and security.
Distributed Digital Ledger: It's a digital record of transactions spread across
multiple computers.
Security, Transparency, and Immutability: Transactions are highly secure
due to cryptographic techniques. They are transparent because all participants
can view the transactions. Once recorded, it's nearly impossible to alter them.
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Types of Blockchains
1. Public Blockchains
2. Private Blockchains
3. Consortium Blockchains
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Types of Blockchains
Public Blockchains:
Accessible to anyone and everyone.
Transactions are transparent, and anyone can
participate.
Examples include Bitcoin and Ethereum.
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Types of Blockchains
Contd’
Private Blockchains:
Restricted access, typically used within organizations.
They maintain some decentralization but are controlled
by a defined group.
Example: Hyperledger Fabric.
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Types of Blockchains
Contd’
Consortium Blockchains:
Semi-decentralized, controlled by a group of
organizations.
They balance public and private features.
Example: R3 Corda.
R3 Corda is an open-source blockchain platform designed
specifically for financial services.
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Decentralized Nature of Blockchain
Decentralized Nature of Blockchain
Traditional databases are centralized, controlled by a single
entity. In contrast, blockchain operates on a network of
computers (nodes) where each node has a copy of the entire
ledger. This decentralization ensures transparency and security.
Example: Bitcoin operates on a decentralized blockchain. Every
transaction is verified by multiple nodes, making it resistant to
fraud or manipulation.
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Use Beyond Cryptocurrencies
Blockchain has applications far beyond
cryptocurrencies. It can be used for supply chain
management, healthcare, voting systems, and more.
Real-world Example: Walmart uses blockchain to
track the origin of its produce. In case of a food safety
issue, they can quickly trace the source.
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How Blockchain Works ?
Transactions are grouped together into a "block."
Each block contains a cryptographic hash of the previous block,
creating a chain. This makes altering any information in a block
practically impossible.
Real-world Example: In Bitcoin, each block contains a set of
transactions. The blocks are linked together by including the
previous block's hash.
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Benefits of
Implementing Blockchain
Benefits:
Security: Data is stored across a network of
computers, making it highly secure.
Transparency: All transactions are visible to
network participants.
Immutability: Once recorded, it's extremely
difficult to alter information.
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Challenges of
Implementing Blockchain
Challenges:
Scalability: Current blockchain networks face challenges in handling large
transaction volumes.
Regulation: Legal frameworks around blockchain and cryptocurrencies are
still evolving.
Energy Consumption: Proof-of-Work blockchains
(like Bitcoin) consumes lot of energy.
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Conclusion
Blockchain technology represents a paradigm shift in how we handle
data and transactions. Its decentralized and trust-based nature opens
up a world of possibilities across various industries.
As we move forward, it's essential to carefully navigate the challenges
and harness the immense potential that blockchain offers.
This technology is not just about cryptocurrencies, it's about reshaping
the way we do business, manage information, and build trust in the
digital age.
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Any Questions
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Thank You
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