Chapter-07 Blockchain Technology PDF

Chapter-07 Blockchain Technology: A Revolution in Trust  What is Blockchain? How Does Blockchain Work? Key Concepts in Blockchain Types of Blockchain Benefits of Block chain Challenges Limitations Real-world Applications Future of Blockchain What is block chain In shor...

Chapter-07 Blockchain Technology: A Revolution in Trust  What is Blockchain? How Does Blockchain Work? Key Concepts in Blockchain Types of Blockchain Benefits of Block chain Challenges Limitations Real-world Applications Future of Blockchain What is block chain In short words, blockchain is a decentralized, distributed ledger that records a digital asset. It is transparent and cannot be altered due to decentralization and cryptographic hashing. Blocks of information can merely be added to the existing information, forming a chain. This is how this technology got the name 'blockchain'. The owner's digital signature authorizes every transaction made on a blockchain. It validates the transaction and secures it against corruption. This makes all the information on a blockchain very secure.  Think of blockchain as a shared Google Doc. The document does not get copied or distributed to each user when it is shared among multiple users. Instead, it creates a decentralized distribution chain that allows many parties to access it simultaneously. However, blockchain differs from a Google Doc because while everyone can see the information and add to it, no one can change or modify any existing information. Through this example, can understand three features of blockchain technology. Digital assets are distributed instead of getting copied or transferred The asset is decentralized and allows real-time access to all relevant information A transparent ledger containing all changes maintains the integrity of the document, making the digital asset trustworthy. Types of block chain Public Blockchain These blockchains fully embrace the concept of decentralization. There are no restrictions; anyone with a computer and internet can join the network. As this blockchain is public, it is open to everyone and is not owned by anyone. Anyone with internet access and a computer with good hardware can participate in this public blockchain. 2. Private Blockchain The blockchains described are not as decentralized as public blockchains because only selected nodes are permitted to participate in the process, which makes them more secure than others. Unlike public blockchains, these are not fully open; they allow access only to authorized users. Additionally, these blockchains 3. Hybrid Blockchain It is a combination of private and public blockchain components, where some parts are controlled by specific organizations while others remain accessible on the public blockchain. It is a combination of public and private blockchains. Both permission-based and permissionless systems are utilized.. Consortium Blockchain It is a creative solution that addresses the organization's needs. This blockchain not only validates transactions but also initiates and receives them.This is an innovative method to solve the organization’s needs  Comparative Analysis of Blockchain Types Consortium Feature Public Blockchain Private Blockchain Hybrid Blockchain Blockchain Access Open to everyone Restricted to specific Limited to a group of Combination of public Control participants organizations and private Governanc Decentralized Centralized Semi-decentralized Mixed governance e structure Transparen High transparency Low transparency Moderate Variable transparency cy transparency High scalability Scalability Limited scalability High scalability Moderate scalability potential High due to Lower due to Security decentralization centralization Moderate security Variable security Slower due to Transaction consensus Faster transactions Faster than public, Variable speed Speed mechanisms slower than private