Introduction to blockchain and distributed ledger

1. BLOCKCHAIN TECHNOLOGY
PRESENTED BY :
DIVYA KAPOOR
181416
PGDM 18-20

2.  The story of blockchain is tightly coupled with the story of accounting.
 The single entry accounting system for the first time in human history allowed us to prove
ownership of the asset.
 In order to have trade, right, at the international level, we needed to have at least two
authorities.
 And so, we needed a new form of accounting, and that's where double entry accounting
came in.
 Blockchain is the very first implementation of triple entry accounting, where we have an
asset being recorded on the ledger in the context of a transaction.

3.  The third entry and triple entry accounting is cryptography, where we have a cryptographic account of
the transaction stored permanently on the ledger.
 The ledger is distributed. It's decentralized. So, there's a copy of the ledger that exists on every point
that exists on the network.
 The code that's stored on the blockchain is a smart contract.
 Again, a smart contract is a program that runs on the blockchain.

4. Blockchain Components
 Ledger: A distributed, immutable historical record
 Peer Network: Stores, updates, and maintains the ledger
 Smart Contract: Program that runs on the blockchain
 Wallet: Stores users' credentials
 Events: Notifications of updates and actions on the blockchain

5. HOW IT WORKS?
 When you attach a file, a Word document, an Excel sheet, a PDF to an email, you aren't sending an
original. You are actually sending the recipient a copy, and that's a great way to move information
around.
 But it's not so great when it comes to things like money, stocks and bonds, loyalty points, intellectual
property, tickets to a game or concert.
 Then, sending a copy is suddenly a very bad idea.
Let's look at an example:
 If I send you tickets to a concert, it's important that I don't send you a copy.
 You now own the original asset and I can no longer use or sell those tickets

6. How did we get here?
 It began when Satoshi Nakamoto, whose true identity is still unknown, released a white paper in
2008, introducing a purely peer-to-peer version of electronic cash known as Bitcoin.
 Even today people believe Bitcoin and blockchain are one and the same.
 Bitcoin, another alternative currency, utilize blockchain technology. Bitcoin is only one use case for
blockchain.
 Blockchain allows people to exchange assets and perform transactions without a third party.
 While traditionally we have needed central authorities to trust one another and fulfil contracts

7.  Assets are no longer stored in a central place, but distributed across a global ledger, using the
highest level of cryptography.
 These transactions are recorded as blocks.
 The act of embedding a previous block of information into the current block of information is called
chaining, hence, the name blockchain.
 In order to hack a blockchain network, someone would have to gain control of the majority of
computers in that network. This is extremely difficult to do.
 There is no longer a single point of failure, and this is what makes blockchain infinitely more secure
than what we have today.

8. TYPES OF BLOCKCHAINS
 A. PUBLIC BLOCKCHAIN:A public blockchain is equivalent to the Internet, complete with the its
own set of protocols, etc.
 A public blockchain network is completely open and anyone can join and participate in the
network.
 B. PRIVATE BLOCKCHAIN : Private blockchains are more synonymous with an intranet. On the
private blockchain, we have to control who can access your network.
 A private blockchain network requires an invitation, and must be validated by a set of rules.
Private blockchains are usually set up as permissioned networks

9. SUMMARY
 Blockchain is already being used in many industries. Some of them are :
 LifeID is using blockchain for a universal account associated with your identity.
 Cook County, (USA), is using blockchain to keep land records more secure than ever before.
 MedChain is using blockchain to change the way that medical records are kept, making it more
secure and universal.
 WALMART and IBM using blockchain for Supply chain, value chain relationships .
 Smart Dubai 2021.
There are so many possibilities with blockchain; yet to be discovered.

10. THANK YOU