Section 8.77 Blockchain Flashcards
Objectives 1.4 Explain the importance of using appropriate cryptographic solutions. Objectives 2.3 Explain various types of vulnerabilities. Objectives 2.4 Given a scenario, you must be able to analyse indicators of malicious activity.
Blockchain
A shared immutable ledger for recording transactions, tracking assets and building trust
A blockchain is a really long series of information with each block containing information inside of it you are going to have the previous hash for the block before it.
Block Structure
● Chain of blocks, each containing…
○ Previous block’s hash
○ Timestamp
○ Root transactions (hashes of individual transactions)
Blocks are linked together in a chronological order
Public Ledger
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 sot hat everything is authenticated and stored through the blockchain
Blockchain Applications
Smart Contracts
● 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.
Commercial Uses
● 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). ecause its inside the imutable ledger nobody can modify it.
Supply Chain Management
● Transparency and traceability in the supply chain
● Immutable records of product origin, handling, and distribution
● Ensures compliance and quality control
Broad Implications of Blockchain
■ 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
