concept | market | players | use cases
blockchain
distributed database technology
Version Author Date
Dibyajyoti Pal
1.0 23rd Nov, 2017
Lead Business Analyst
Gaps in the Business
1400s 1800s 1900s Today
Knowledge Gap Power Gap Distance Gap Trust Gap
Printing Press Engine Internet Blockchain
Trust Gap across the Supply Chain
What is Blockchain? Distributed ledgers – or decentralized databases – are systems that enable parties
who don t fully trust each other to form and maintain consensus about the existence,
status and evolution of a set of shared facts
- Richard Gendal Brown
A Blockchain is a Each block in the A Blockchain is distributed
distributed chain contains some among the Miners and Nodes.
database or ledger transactions or Miners are the ones that spend
that is fully shared pieces of data. Each data power on trying to figure
with a network of block also includes out the correct hash for a given
people. Each person a reference to its new block. Once one of them
in the network has a previous block, find the correct hash, they give
full copy of the making it a sort of a the block to the nodes.The
Blockchain database, and The Chain & reverse linked list. Distributed nodes are basically just the
Definition everyone helps Blocks Each block is Ledger maintainers of the network.
decide what goes encrypted with a They keep a full copy of the
into it, and what is particular blockchain, accept blocks and verify them, and
the correct state of algorithm, giving it passes information on to other nodes in the
the database. a unique hash. network.
Blockchain Characteristics Access to the shared ledger is Ledger access can be controlled so that only parties
permissioned that you want to access it can do so
The shared ledger is replicated and No single party controls the data. Every party can
distributed verify the records of its transaction partners directly
Users can choose to remain anonymous or provide
Transactions are encrypted
proof of their identity to others
Recording on the database is permanent, sequential,
Transactions are immutable
and available to all others on the network
Users can set up algorithms and rules that
Computational Logics
automatically trigger transactions between nodes
How Blockchain Works?
Requested transaction The networks of nodes
Someone requests a is broadcasted to the validates the
transaction 1
P2P network consisting 2 transactions and the 3
computers – Nodes user s status using
known algorithms
The new block is then Once verified, the
added to the existing transaction is combined
The transaction is blockchain – permanent with other transactions
complete 6 & unalterable. 5 4
to create a new block of
data for the ledger
Blockchain Advantages
Blockchain will encourage increased trust between business network participants; lubricating the frictions of doing business today and
allowing participants to free up working capital to re-deploy elsewhere.
Lower
Overall increased Reduced Fewer settlement
Reduced Reduced
transparency of time to disputes period
cost of messaging
information in the resolve between required to
resources complexity
business network disputes parties fulfil
contracts
Blockchain Limitations
All of these challenges are not as reasons to discard blockchain, but reasons to get together and work to solve them. The potential for
greatness is too big to ignore.
SCALING UX SPEED CODE ENERGY
On average it takes The mostly used
Heavy transactions Users don t
10 minutes to create Code is law. And algorithm today
are queued up and understand Private
a new block, there is no escaping (the one in Bitcoin)
slows down the and Public Keys
transaction waits your mistakes. uses a lot of energy:
network with poor UI
until then 100s of megawatts
Blockchain Major Applications
Decentralized Decentralized Decentralized Supply Chain
Currency
Apps Cloud Computing Cloud Storage History
Bitcoin Ethereum Golem Storj Provenance
