BASAVESHWAR ENGINEERING COLLEGE (AUTONOMOUS),
BAGALKOT
DEPARTMENT OF INFORMATION SCIENCE AND ENGINEERING
SEMINAR (UIS807S)
On
Blockchain in Crypto-Currency
Submitted by: Amogh Gudi
USN:2BA18IS009
Under the Guidance: Prof. R B Math
Academic Year 2021-22
BASAVESHWAR ENGINEERING COLLEGE (AUTONOMOUS),
BAGALKOT
DEPARTMENT OF INFORMATION SCIENCE AND ENGINEERING
CERTIFICATE
This is to certify that Mr. Amogh Gudi bearing USN:2BA18IS009 has
satisfactorily completed the course Seminar (UIS807S) on the topic
“Blockchain in Crypto-Currency” as prescribed for 8th semester B.E.,
during the academic year 2021-22.
Guide: Head of Department
Prof R B Math Dr. S. R. Patil
Examiners: 1. _________________
2. _________________
3.__________________
Acknowledgment
I would like to express my gratitude to Dr. S S Injaganeri for providing us with
the infrastructure to carry out this seminar. I am extremely grateful and remain
indebted to my guide Prof. R B Math for being a source of inspiration and for
her constant support in the information gathering, preparation of documents,
editing, and report making of this seminar. She has been very cooperative
throughout this seminar process. Through this column, it would be my pleasure
to express a warm thankfulness for her encouragement, cooperation, and consent
without which I might not be able to accomplish this seminar on the topic
"Blockchain in Crypto-Currency".
I would like to thank our beloved HOD Dr. Shobha R Patil for providing us an
opportunity to learn new technologies and Seminar Co-Ordinator Dr. S P
Bangarashetti for all the cooperation, instructions, and guidance in making this
seminar presentation smooth and knowledgeable.
Lastly, I would extend my gratitude to everyone who has directly or indirectly
been involved in helping and guiding me to research and learn about this seminar
and making it successful.
Abstract
Blockchain is a technology that is developed using a combination of various
techniques such as mathematics, algorithms, cryptography, economic models,
and so on. Blockchain is a public ledger of all cryptocurrency transactions that
are digitized and decentralized. All the transactions of cryptocurrencies are stored
in chronological order to help users in tracking the transactions without
maintaining any central record of the transactions. Application prospects of
blockchain are promising and have been delivering the result since its inception.
Contents/Index
• Introduction 1
• History of Bitcoin 2
• Working of Blockchain 3
• Advantages 5
• Disadvantages 6
• Applications 7
• Conclusion 8
• References 9
1. Introduction
A blockchain is essentially a distributed database of records or public
ledger of all transactions or digital events that have been executed and
shared among participating parties. Each transaction in the public
ledger is verified by the consensus of a majority of the participants in
the system. And, once entered, information can never be erased. The
blockchain contains a certain and verifiable record of every single
transaction ever made. To use a basic analogy, it is easy to steal a
cookie from a cookie jar, kept in a secluded place than to steal the
cookie from a cookie jar kept in a marketplace, which is observed by
thousands of people.
Bitcoin is the most popular example that is intrinsically tied to
blockchain technology. It is also the most controversial one since it
helps to enable a multibillion-dollar global market of anonymous
transactions without any governmental control. Hence it has to deal
with a number of regulatory issues involving national governments
and financial institutions.
However, Blockchain technology itself is non-controversial and has
worked flawlessly over the years and is being successfully applied to
both financial and non-financial world applications. Last year, Marc
Andreessen, the doyen of Silicon Valley’s capitalists, listed the
blockchain distributed consensus model as the most important
invention since the Internet itself. Johann Palychata from BNP
Paribas wrote in the Quintessence magazine that bitcoin’s blockchain,
the software that allows the digital currency to function should be
considered as an invention like the steam or combustion engine that
has the potential to transform the world of finance and beyond.
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2. History of Bitcoin
In the year 2008, an individual or group writing under the name of
Satoshi Nakamoto published a paper entitled “Bitcoin: A Peer-To-
Peer Electronic Cash System”. This paper described a peer-to-peer
version of the electronic cash that would allow online payments to be
sent directly from one party to another without going through a
financial institution. Bitcoin was the first realization of this concept.
Now word cryptocurrencies are the label that is used to describe all
networks and mediums of exchange that uses cryptography to secure
transactions-as against those systems where the transactions are
channeled through a centralized trusted entity.
The author of the first paper wanted to remain anonymous and hence
no one knows Satoshi Nakamoto to this day. A few months later, an
open-source program implementing the new protocol was released
that began with the Genesis block of 50 coins. Anyone can install this
open-source program and become part of the bitcoin peer-to-peer
network. It has grown in popularity since then.
– 2008
• August 18 Domain name "bitcoin.org" registered
• October 31 Bitcoin design paper published
• November 09 Bitcoin project registered at SourceForge.net
– 2009
• January 3 Genesis block established at 18:15:05 GMT
• January 9 Bitcoin v0.1 released and announced on the
cryptography by the Mailing list.
2
3. Working of Block-chain
When we investigate the DNA of blockchain architecture for a better
understanding, we need to analyze several aspects that contribute to
this disruptive technological marvel. How does blockchain work?
These aspects include the blockchain platform, nodes, transactions
that make up blocks, security implementations, and the process of
adding new blocks to the chain. The blockchain architecture is
undoubtedly complex, but once you get a hold of it you will get
acquainted with the same.
Fig 3.1
With blocks being connected with each other through their respective
hash codes, the whole blockchain ecosystem becomes a Fort Knox
technically. Whenever a blockchain transaction flag is raised, a
blockchain consensus needs to be achieved to update the same in the
blockchain. Instead of relying on a third party to mediate transactions,
member nodes in the blockchain network stick to a blockchain
consensus protocol to agree on the ledger content and cryptographic
hashes and digital signatures to ensure the integrity of transactions.
3
Once authenticated, these blockchain transactions are considered
successful and irreversible. Transactions rely a lot on hash values and
hash functions. These hash functions are mathematical processes that
take input data of any size, perform required operations on it, and
return the output data of a fixed size. These functions can be used to
take a string of any length as input and return a sequence of letters of
a fixed length. This functionality of hash functions makes them apt
for transaction processing. Regardless of the size of transactions, the
final output will always be fixed and untampered.
Transaction in Crypto-Currency
Fig 3.2
4
4. Advantages
The crucial advantages of implementing Blockchain Technology for
the industry are:
Decentralization: This is one of the primary benefits of this
technology because, in a Blockchain-powered system, the need
for third-party or intermediaries is eliminated by its working
mechanism that manages the process of validating, verifying,
and clearing the various transactions.
Process Integrity: Due to security reasons, this program was
made in such a way that any block or even a transaction that
adds to the chain cannot be edited which ultimately provides a
very high range of security.
Traceability: The format of Blockchain is designed in such a
way that it can easily locate any problem and correct if there are
any. It also creates an irreversible audit trail.
Trustworthy: A distributed ledger in blockchain technology
records all crucial transactions in such a manner that they are
readily available to all the blockchain members. as now the
ledgers are being shared publicly, this brings more transparency
and trust to the entire system.
Simplification: Present working model in various organizations,
in whichever sector like an automobile, healthcare, banking, etc.
every department is maintaining their own databases Blockchain
technology serves a single shared ledger that makes data sharing
fast and simpler involving all departments.
Faster Trades: Any kind of trade or contract has to pass
through various verification processes before reaching its final
destination. Blockchain technology can assist in saving time
here by offering a single ledger to all the associated parties by
providing faster settlement of trades.
5
5. Disadvantages
Of course, every system has both merits and drawbacks with some
crucial advantages, Blockchain Technology has some drawbacks too
for an industry:
Nascent Technology: With several benefits of Blockchain
Technology, the primary disadvantage of this cutting-edge
technology is that there are some nasty challenges like
transaction speed, the verification process, and data limits that
should be resolved before making blockchain widely applicable.
Uncertain: Most of the modern currencies of today have been
created and regulated by national governments, financial
institutions, etc. Blockchain or bitcoin faces a hurdle in
widespread adoption as their financial transactions would be
restricted because not authorized by the government institutions
and as a result remain unsettled.
Higher Costs: Developing a Blockchain in your organization is
not an easy task, it involves massive energy consumption, a
decent amount, colossal capital cost, etc. that might be not
possible for medium-scale as well as low-call businesses. It is a
fact that it offers tremendous savings in transaction costs, but at
the same time, its implementation cost is too high
Power Use: The consumption of power in the implementation
of Blockchain Technology is comparatively high. Keeping a
real-time ledger is one of the underlying reasons for this higher
consumption became every time it produces a new node, it
communicates with every node at the same time.
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6. Applications
Blockchain has a nearly endless amount of applications across almost
every industry. The ledger technology can be applied to track fraud in
finance, securely share patient medical records between healthcare
professionals, and even acts as a better way to track intellectual
property in business and music rights for artists.
Financial Services: In the financial services sector, Blockchain
technology has already been implemented in many innovative
ways. Blockchain technology simplifies and streamlines the
entire process associated with asset management and payments
by providing an automated trade lifecycle where all participants
would have access to the exact same data about a transaction.
This removes the need for brokers or intermediaries and ensures
transparency and effective management of transactional data
Healthcare: Blockchain can play a key role in the healthcare
sector by increasing privacy. security and interoperability of the
healthcare data. It holds the potential to address many
interoperability challenges in the sector and enable secure
sharing of healthcare data among the various entities and people
involved in the process. It eliminates the interference of a third
party and also avoids overhead costs. With Blockchains, the
healthcare records can be stored in distributed databases by
encrypting them and implementing digital signatures to ensure
privacy and authenticity.
Government: Blockchain technology holds the power to
transform Government operations and services. It can play a key
role in improving the data transactional challenges in the
Government sector, which works in siloes currently. The proper
linking and sharing of data with Blockchain enable better
management of data between multiple departments. It improves
the transparency and provides a better way to monitor and audit
the transactions
7
7.Conclusion
The application of the Blockchain concept and technology has grown
beyond its use for Bitcoin generation and transactions. The properties
of its security, privacy, traceability, inherent data provenance, and
time-stamping have seen its adoption beyond its initial application
areas. The Blockchain itself and its variants are now used to secure
any type of transaction, whether it be human-to-human
communications or machine-to-machine. Its adoption appears to be
secure, especially with the global emergence of the Internet-of-
Things. Its decentralized application across the already established
global Internet is also very appealing in terms of ensuring data
redundancy and hence survivability. Thus, the invention of the
Blockchain can be seen to be a vital and much-needed additional
component of the Internet that was lacking in security and trat before
BC Technology still has not reached its maturity with a prediction of
five years as novel applications continue to be implemented globally.
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8. References
Blockchain Technology Explained: The Ultimate Beginner's
Guide About Blockchain Wallet, Mining Bitcoin, Ethereum,
Litecoin, Zcash, Monero, Ripple, Dash, IOTA and Smart
Contracts, Alan T. Norman
Blockchain: Blueprint for a New Economy, Melanie Swan
https://builtin.com/blockchain
https://www.computerworld.com/article/3191077/what-is-
blockchain-the-complete guide.html
http://graphics.reuters.com/TECHNOLOGY-
BLOCKCHAIN/010070P11GN/index.html
