Section 8.77 Blockchain

Question 1

Blockchain

DDL

Answer 1

Blockchain is a distributed digital ledger that stores and shares transactional data across a network of decentralised computers (p2p)

A digital database that stores and records transactions in a chain of blocks. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data

In blockchain technology, a ledger is a list of transactions that records the movement of digital assets, like cryptocurrencies, across a decentralized network of computers.

Question 2

Block Structure

Answer 2

● Chain of blocks, each containing…

○ Previous block’s hash
○ Timestamp
○ Root transactions (hashes of individual transactions)

Blocks are linked together in a chronological order

Question 3

Public Ledger

Answer 3

A record keeping system that maintains participants identities in a secure and anonymous format

● Tracks cryptocurrency balances
● Records all genuine transactions in a network

huge p2p network which is decentralised and because of that Hashes are used to ensure everything is being recorded properly and nobody can change it without proper permissions so that everything is authenticated and stored through the blockchain

Question 4

Blockchain Applications

Smart Contracts

Answer 4

● Self-executing contracts with code-defined terms

● Execute actions automatically when conditions are met

● Transparent, tamper-proof, and trustworthy

Reduce the risk of fraud and the costs assosiated with the traditional contractual processes. in addition every contract execution is recorded on the blockchain so there is a clear record.

Question 5

Blockchain Applications

Commercial Uses

Answer 5

● Companies like IBM promote blockchain for commercial purposes

● Permissioned blockchain used for business transactions - promotes business transactions and levels of trust using imutable ledgers

e.g supplychain - Food - be nice to know when and where the food was grown and how it got to you (every step). Because its inside the imutable ledger nobody can modify it.

Question 6

Blockchain Applications

Supply Chain Management

Answer 6

● Transparency and traceability in the supply chain

● Immutable records of product origin, handling, and distribution

● Ensures compliance and quality control

Question 7

Broad Implications of Blockchain

Answer 7

■ Versatility
● Beyond finance and cryptocurrencies
● Applications across various industries
● Promises transparency, efficiency, and trust

■ Decentralization
● Key feature of blockchain
● Eliminates need for central authorities
● Empowers peer-to-peer networks

■ Digital Evolution
● Blockchain’s impact on technology and industries
● Potential to reshape traditional systems
● Offers transparency, efficiency, and trust in the digital era