A SEMINAR REPORT

On
BLOCKCHAIN TECHNOLOGY

Submitted by

Fazla Maqsood
Uni. Roll Number: 1901012062
Department of Computer Science and Engineering

2022-2023
INTEGRAL UNIVERSITY, LUCKNOW (INDIA)

Submitted to

Mrs. Ankita Srivastava

Assistant Professor

Department of Computer Science and Engineering

INTEGRAL UNIVERSITY, LUCKKNOW (INDIA)
 BLOCKCHAIN TECHNOLOGY
DECLARATION

I, FAZLA MAQSOOD, Student of Bachelor of Technology (CSE) declare that the Seminar titled
“Blockchain Technology” which is submitted by me to the department of computer science and

engineering, INTEGRAL UNIVERSITY LUCKNOW.

Date: 17-05-23
Fazla Maqsood

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 BLOCKCHAIN TECHNOLOGY
CONTENTS
TOPIC Page No.

Declaration …………………………………………………………. 2
Contents ………………………………………………………… 3
Introduction ………………………………………………………… 4
Building Trust with Blockchain …………………………………….. 5
Blockchain Features …………………………………………………. 6-7
Working …………………………………………………. 8-10
Types of Blockchain ………………………………………………….. 11-13
Advantages …………………………………………………………… 14-15
Disadvantages ……………………………………………………… 16
Applications ……………………………………………………… 17-18
The Future of Blockchain …………………………………………... 19
Conclusion ………………………………………………… 20
Bibliography …………………………………………………... 21

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INTRODUCTION OF BLOCKCHAIN

The Blockchain is an encrypted, distributed database that records data, or in other words it is a
digital ledger of any transactions, contracts - that needs to be independently recorded. One of
the key features of Blockchain is that this digital ledger is accessible across several hundreds and
thousands of computer and is not bound to be kept in a single place. Blockchain chain has already
started disrupting the financial services sector, and it is this technology which underpins the digital
currency- bitcoin transaction.

Blockchain is an open and distributed ledger that can be used to record transactions between two
parties. This way of recording a transaction is both permanent as well as verifiable, which makes it
one of the best ways to keep transactions. Blockchains are built on the open-source platform.
So different

versions of these blockchains are possible, which are developed as per the needs of different
industries.

As blockchain is a distributed ledger, hence every transaction is stored on more than one
computer, which makes us sure that every transaction is going to be permanent without any fear of
loss. As blockchain is distributed, it can neither be owned nor be fully controlled by a single entity.
Transactions are between two parties, and no other parties are involved, this results in lower cost,
and once a transaction is performed, it cannot be changed under any circumstances.

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Building trust with Blockchain

Blockchain enhances trust across a business network. It’s not that you can’t trust those who you
conduct business with its that you don’t need to when operating on a Blockchain network.
Blockchain built trust through the following five attributes:

 Distributed: The distributed ledger is shared and updated with every incoming

transaction among the nodes connected to the Blockchain. All this is done in real-time
as there is no central server controlling the data.
 Secure: There is no unauthorized access to Blockchain made possible through
Permissions and Cryptography.
 Transparent: Because every node or participant in Blockchain has a copy of the
Blockchain data, they have access to all transaction data. They themselves can verify
the identities without the need for mediators.
 Consensus-based: All relevant network participants must agree that a transaction is
valid. This is achieved through the use of consensus algorithms.
 Flexible: Smart Contracts which are executed based on certain conditions can be
written into the platform. Blockchain Network can evolve in pace with business
processes.

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Blockchain Features

The following features make the revolutionary technology of blockchain stand out:

Decentralised
Blockchains are decentralized in nature meaning that no single person or group holds the authority of
the overall network. While everybody in the network has the copy of the distributed ledger with
them, no one can modify it on his or her own. This unique feature of blockchain allows transparency
and security while giving power to the users.

Peer-to-Peer Network
With the use of Blockchain, the interaction between two parties through a peer-to-peer model is
easily accomplished without the requirement of any third party. Blockchain uses P2P protocol which
allows all the network participants to hold an identical copy of transactions, enabling approval
through a machine
consensus. For example, if you wish to make any transaction from one part of the world to another,
you can do that with blockchain all by yourself within a few seconds. Moreover, any interruptions or
extra charges will not be deducted in the transfer.

Immutable
The immutability property of a blockchain refers to the fact that any data once written on the
blockchain cannot be changed. To understand immutability, consider sending email as an example.
Once you send an email to a bunch of people, you cannot take it back. In order to find a way around,
you’ll have to ask all the recipients to delete your email which is pretty tedious. This is how
immutability works.
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 BLOCKCHAIN TECHNOLOGY
Once the data has been processed, it cannot be altered or changed. In case of the blockchain, if you
try to change the data of one block, you’ll have to change the entire blockchain following it as each
block stores the hash of its preceding block. Change in one hash will lead to change in all the
following hashes. It is extremely complicated for someone to change all the hashes as it requires a lot
of computational power to do so. Hence, the data stored in a blockchain is non-susceptible to
alterations or hacker attacks due to immutability.

Tamper-Proof

With the property of immutability embedded in blockchains, it becomes easier to detect tampering of
any data. Blockchains are considered tamper-proof as any change in even one single block can be
detected and addressed smoothly. There are two key ways of detecting tampering namely, hashes and
blocks.
As described earlier, each hash function associated with a block is unique. You can consider it like a
fingerprint of a block. Any change in the data will lead to a change in the hash function. Since the
hash function of one block is linked to next block, in order for a hacker to make any changes, he/she
will have to change hashes of all the blocks after that block which is quite difficult to do.

2.1

COMPONENTS
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A Blockchain comprises of two

different components, as follows:
2.1.1. Transaction:
A transaction, in a Blockchain,
represents the action triggered by
the participant.
2.1.2. Block:
A block, in a Blockchain, is a
collection of data recording the
transaction and other associated
details such as the correct sequence,
timestamp of creation, etc.
The Blockchain can either be public
or private, depending on the scope
of its use. A public

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Blockchain enables all the users

with read and write permissions
such as in Bitcoin, access to it.
However, there are some public
Blockchains that limit the access to
only either to read or to write.
On the contrary, a private
Blockchain limits the access to
selected trusted participants only,
with
the aim to keep the users’ details
concealed. This is particularly
pertinent amongst governmental
institutions and allied sister
concerns or their subsidies thereof.
One of the major benefits of the

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Blockchain is that it and its

implementation technology is
public. Each participating entities
possesses an updated complete
record of the transactions and the
associated blocks. Thus the data
remains unaltered, as any changes
will be publicly verifiable.
However, the data in the blocks are
encrypted by a private key and
hence cannot be interpreted by
everyone.

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WORKING

1. Components : A Blockchain comprises of two different components, as follows:

a. Transaction: A transaction, in a Blockchain, represents the action triggered by the participant.

b. Block: A block, in a Blockchain, is a collection of data recording the transaction and other
associated details such as the correct sequence, timestamp of creation, etc. The Blockchain can either
be public or private, depending on the scope of its use. A public Blockchain enables all the users
with read and write permissions such as in Bitcoin, access to it. However, there are some public
Blockchains that limit the access to only either to read or to write. On the contrary, a private
Blockchain limits the access to selected trusted participants only, with the aim to keep the users’
details concealed. This is particularly pertinent amongst governmental institutions and allied sister
concerns or their subsidies thereof. One of the major benefits of the Blockchain is that it and its
implementation technology is public. Each participating entities possesses an updated complete
record of the transactions and the associated blocks. Thus the data remains unaltered, as any changes
will be publicly verifiable. However, the data in the blocks are encrypted by a private key and hence
cannot be interpreted by everyone.

2.Working:

The whole point of using a blockchain is to let people — in particular, people who don't trust one
another — share valuable data in a secure, tamperproof way Blockchain consists of three important
concepts: blocks, nodes and miners.

a. Blocks: Every chain consists of multiple blocks and each block has three basic elements:

• The data in the block.

• A 32-bit whole number called a nonce. The nonce is randomly generated when a block is created,
which then generates a block header hash

• The hash is a 256-bit number wedded to the nonce. It must start with a huge number of zeroes (i.e.,
be extremely small). When the first block of a chain is created, a nonce generates the cryptographic
hash. The data in the block is considered signed and forever tied to the nonce and hash unless it is
mined.

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2.2.2 Miners:
Miners create new blocks on the chain through a process called mining. In a blockchain every block
has its own unique nonce and hash, but also references the hash of the previous block
in the chain, so mining a block isn't easy, especially on large chains. Miners use special software
to solve the incredibly complex math problem of finding a nonce that generates an accepted hash.
Because the nonce is only 32 bits and the hash is 256, there are roughly four billion possible nonce-
hash combinations that must be mined before the right one is found. When that happens miners
are said to have found the "golden nonce" and their block is added to the chain.
Making a change to any block earlier in the chain requires re-mining not just the block with
the change, but all of the blocks that come after. This is why it's extremely difficult to manipulate
blockchain technology. Think of it is as "safety in math" since finding golden nonces requires an
enormous amount of time and computing power.
When a block is successfully mined, the change is accepted by all of the nodes on the network and
the miner is rewarded financially.
2.2.2 Miners:
Miners create new blocks on the chain through a process called mining. In a blockchain
every block has its own unique nonce and hash, but also references the hash of the previous block
in the chain, so mining a block isn't easy, especially on large chains. Miners use special software
to solve the incredibly complex math problem of finding a nonce that generates an accepted hash.
Because the nonce is only 32 bits and the hash is 256, there are roughly four billion possible nonce-
hash combinations that must be mined before the right one is found. When that happens miners
are said to have found the "golden nonce" and their block is added to the chain.
Making a change to any block earlier in the chain requires re-mining not just the block with
the change, but all of the blocks that come after. This is why it's extremely difficult to manipulate
blockchain technology. Think of it is as "safety in math" since finding golden nonces requires an
enormous amount of time and computing power.
When a block is successfully mined, the change is accepted by all of the nodes on the network and
the miner is rewarded financially.
b. Miners: Miners create new blocks on the chain through a process called mining. In a blockchain
every block has its own unique nonce and hash, but also references the hash of the previous block in
the chain, so mining a block isn't easy, especially on large chains. Miners use special software to
solve the incredibly complex math problem of finding a nonce that generates an accepted hash.
Because the nonce is only 32 bits and the hash is 256, there are roughly four billion possible nonce-
hash

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combinations that must be mined before the right one is found. When that happens miners are said to
have found the "golden nonce" and their block is added to the chain.

Making a change to any block earlier in the chain requires re-mining not just the block with the
change, but all of the blocks that come after. This is why it's extremely difficult to manipulate
blockchain technology. Think of it is as "safety in math" since finding golden nonces requires an
enormous amount of time and computing power. When a block is successfully mined, the change is
accepted by all of the nodes on the network and the miner is rewarded financially.

c. Nodes: One of the most important concepts in blockchain technology is decentralization. No one
computer or organization can own the chain. Instead, it is a distributed ledger via the nodes
connected to the chain. Nodes can be any kind of electronic device that maintains copies of the
blockchain and keeps the network functioning.

Every node has its own copy of the blockchain and the network must algorithmically
approve any newly mined block for the chain to be updated, trusted and verified. Since blockchains
are transparent, every action in the ledger can be easily checked and viewed. Each participant is
given a unique alphanumeric identification number that shows their transactions.

Combining public information with a system of checks-and-balances helps the blockchain maintain
integrity and creates trust among users. Essentially, blockchains can be thought of as the scalability
of trust via technology.

Another major advantage of the Blockchain technology is that it is decentralized. It is

decentralized in the sense that:

• There is no single device that stores the data (transactions and associated blocks), rather they are
distributed among the participants throughout the network supporting the Blockchain.

• The transactions are not subject to approval of any single authority or have to abide by a set of
specific rules, thus involving substantial trust as to reach a consensus.

• The overall security of a Blockchain eco-system is another advantage. The system only allows new
blocks to be appended. Since the previous blocks are public and distributed, they cannot be altered or
revised.

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TYPES OF BLOCKCHAINS

At a glance, there are four different major types of blockchain technologies. They include the
following.

• Public

• Private

• Hybrid

• Federated

1. PUBLIC BLOCKCHAIN: A public blockchain is one of the different types of blockchain

technology. A public blockchain is the permission-less distributed ledger technology where
anyone can join and do transactions. It is a non-restrictive version where each peer has a copy
of the ledger. This also means that anyone can access the public blockchain if they have an
internet connection.

One of the first public blockchains that were released to the public was the bitcoin public
blockchain. It enabled anyone connected to the internet to do transactions in a decentralized
manner.

2. The verification of the transactions is done through consensus methods such as Proof-of-
Work(POW), Proof-of-Stake(POS), and so on. At the cores, the participating nodes require to do
the heavy-lifting, including validating transactions to make the public blockchain work. If a
public blockchain doesn’t have the required peers participating in solving transactions,
then it will become non-functional. There are also different types of blockchain platforms
that use these various types of blockchain as the base of their project. However, each platform
introduces more features in its platform aside from the usual ones. Examples of public
blockchain: Bitcoin, Ethereum, Litecoin, NEO

Use Cases:
There are multiple use-cases of the public blockchain. To get a better idea, let’s list some of them
below.
• Voting: Governments can do voting through public blockchain employing transparency
and trust.
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• Fundraising: Companies or initiatives can make use of the public blockchain for
improving transparency and trust.

Use Cases: There are multiple use-cases of the public blockchain. To get a better idea, let’s list some
of them below. • Voting: Governments can do voting through public blockchain employing
transparency and trust. • Fundraising: Companies or initiatives can make use of the public blockchain

for improving transparency and trust.

3.CONSORTIUM BLOCKCHAIN: A consortium blockchain is one of the different types of

blockchain technology. A consortium blockchain (also known as Federated blockchains) is a creative
approach to solving organizations’ needs where there is a need for both public and private
blockchain features. In a consortium blockchain, some aspects of the organizations are made public,
while others remain private. The consensus procedures in a consortium blockchain are controlled by
the pre-set

nodes. More so, even though it’s not open to mass people, it still holds a decentralized nature. How?
Well, a consortium blockchain is managed by more than one organization. So, there is no one single
force of centralized outcome here. To ensure proper functionality, the consortium has a validator
node that can do two functions, validate transactions, and also initiate or receive transactions. In
comparison, the member node can receive or initiate transactions. In short, it offers all the features of
a private blockchain, including transparency, privacy, and efficiency, without one party having
consolidating power.

Examples of Consortium Blockchain: Marco Polo, Energy Web Foundation, IBM Food Trust.

Use Cases:
There are multiple use-cases of consortium blockchain. Some of them include the
following
• Banking and payments: A group of banks can work together and create a
consortium.
They can decide the nodes that will validate transactions.
• Research: A consortium blockchain can be used to share research data and
results.
• Food tracking: It is also great for food tracking.
Use Cases:

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There are multiple use-cases of consortium blockchain. Some of them include the following

• Banking and payments: A group of banks can work together and create a consortium. They can
decide the nodes that will validate transactions.

• Research: A consortium blockchain can be used to share research data and results.

• Food tracking: It is also great for food tracking.

4. HYBRID BLOCKCHAIN: Hybrid blockchain is one of the different types of blockchain

technology. More so, Hybrid blockchain is the last type of blockchain that we are going to discuss
here. More so, hybrid blockchain might sound like a consortium blockchain, but it is not. However,
there can be some similarities between them. Hybrid blockchain is best defined as a combination of a
private and public blockchain. It has use-cases in an organization that neither wants to deploy a
private

blockchain nor public blockchain and simply wants to deploy both worlds’ best. Example of Hybrid
Blockchain: Dragon chain, Xin Fin’s Hybrid blockchain.

Use Cases:
Some of the best use-cases of the Hybrid blockchain are as follows:
• Real estate: You can use hybrid networks for real-estate purposes where
real-estate
companies can use it to run their systems and use the public to show information
to the
public.
• Retail: Retail can also use the hybrid network to streamline their processes.
• Highly regulated markets: Hybrid blockchains are also ideal for highly
regulated
markets such as financial markets.
Use Cases: Some of the best use-cases of the Hybrid blockchain are as follows:

• Real estate: You can use hybrid networks for real-estate purposes where real-estate companies can
use it to run their systems and use the public to show information to the public.

• Retail: Retail can also use the hybrid network to streamline their processes.

• Highly regulated markets: Hybrid blockchains are also ideal for highly regulated markets such as
financial markets.

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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 the 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 designs in such a way that it can easily locate any
problem and correct if there is 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 in 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.

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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.

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DISADVANTAGES
Every system has both merits and drawbacks With some crucial advantages, Blockchain
Technology has some drawbacks too for an industry:

• Nascent Technology: With having 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: As 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 into 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 scale 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 because every time it produces a new node, it communicates with every node at
the same time.

Despite all these drawbacks, blockchain is one of the most advanced and secured technologies of the
decade. If you are struggling while deciding whether to adopt blockchain or not, shade-off your
doubts and integrate the blockchain technology into your business infrastructure. If you are finding it
difficult to get a blockchain development company that can help you create a highly functional and
feature-rich blockchain-enabled solution, then SARA could be a one-stop destination.

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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.

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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.

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Blockchain technology can be utilized in multiple industries including Financial Services,
Healthcare, Government, Travel and Hospitality, Retail and CPG

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 the 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 the overhead costs. With Blockchains, the healthcare records can be stored in
distributed data bases by encrypting it and implementing digital signatures to ensure privacy and
authenticity.

• Government: Blockchain technology holds the power to transform Government’s 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.

• CPG and Retail: There is a huge opportunity for Blockchain technology to be applied in the retail
sector . This includes everything from ensuring the authenticity of high value goods, preventing,
fraudulent transactions, locating stolen items, enabling virtual warranties, managing loyalty
points and streamlining supply chain operations.

• Travel and Hospitality: It can be applied in money transactions, storing important documents like
passports/ other identification cards, reservations and managing travel insurance, loyalty and
rewards.

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THE FUTURE OF BLOCKCHAIN

According to the Gartner Hype Cycle for Emerging Technologies 2017, shown in Figure 2, below,
Blockchain still remains in the region of “Peak of Inflated Expectation” with forecast to reach
plateau in “five to ten years”. However, this technology is shown going downhill into the region of

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the “Trough of Disillusionment”. Because of the wide adoption of the Blockchain in a wide range
of applications beyond cryptocurrency, the authors of this paper are forecasting a shift in
classification from “five to ten years” to “two to five years” to reach maturation. Blockchain
possesses a great potential in empowering the citizens of the developing countries if widely adopted
by e-governance applications for identity management, asset ownership transfer of precious
commodities such as gold, silver and diamond, healthcare and other commercial uses as well as in
financial inclusion. However, this will strongly depend on national political decisions.

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CONCLUSION

The blockchain technology uses decentralized network architecture to maintain its network. This
means that block chaining is not centrally controlled by any corporation or agency but is a
decentralized network, which makes it more secure. According to Block Chain Council, the term
“Blockchain Technology” usually refers to the transparent, thrustless, publicly accessible ledger that
allows us to securely and quickly transfer the ownership of units of value by means of public key
encryptions and proof of work methods. The purpose of blockchain is to establish and govern
minimum standards, to develop measurements and inform the public if an individual meets or exceeds
the minimum standard.

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BIBLOGRAPGY

o Blockchain Technology Explained: The Ultimate Beginner’s Guide About Blockchain

Wallet, Mining, Bitcoin, Ethereum, Smart Contracts.
o Blockchain: Blueprint for a New Economy, Melanie Swan
o https://builtin.com/blockchain
o https://www.youtube.com/watch?
v=6aF6p2VUORE&list=PLBL6oGEBfNubDobmaHfr69zyUoLwodytl &index=1&t=1412s
o https://www.computerworld.com/article/3191077/what-is-blockchain-the-complete-
guide.html
o http://graphics.reuters.com/TECHNOLOGY-BLOCKCHAIN/010070P11GN/index.html

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