Blockchain Technology: Structure, Applications, and Working Principles, Slides of Computer Science

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BlockChain Technology

Contents

• (^) Introduction
• (^) Structure of Blockchain Technology
• (^) Fundamental Building Blocks of Blockchain Technology
• (^) Working of Blockchain Model
• (^) Uses of Blockchain Technology

Structure of BlockChain

• (^) The blockchain data structure is explained as a back-linked record of blocks of transactions, which is ordered.
• (^) It can be saved as a file or in a plain database.
• (^) Each block can be recognized by a hash, created utilizing the SHA cryptographic hash algorithm on the header of the block.
• (^) Let us understand the terms of blockchain data structure
• (^) Index - This term symbolizes the location of the block inside the blockchain. The first block is indexed ‘0’, the next ‘1’, and so on.
• (^) Hash – Hash is the function which facilitates the rapid classification of data in the dataset

Continued…

• (^) Previous hash – Each and every block in blockchain data structure, is associated with its ancestors. This characteristic adds to its immutability as a variety in the order of blocks.
• (^) numTx – This wares a tally of the number of transaction enumerated in the block.
• (^) Timestamp – It saves the time aspects of when the block was built.
• (^) Nonce – It saves the integer (32 or 64bits) that are utilized in the mining method.
• (^) Transaction – This is a different track saved as arrays in the frame of the block. They save the specific version of a transaction executed so far in the block.

Pictorial Representation of Structure of

BlockChain

Fundamental Building Blocks of Blockchain Technology

a)Fingerprint for a block (Hash cryptography):

• (^) A hash (or cryptographic hash) is a fixed-size alphanumeric string

which acts as a digital fingerprint of any collection of data.

• (^) A hash function is a type of mathematical function which turns

data into a fingerprint called Hash.

• (^) It’s like an algorithm which takes the input data and turns it into an

output of a fixed length, which represents the fingerprint of the

data.

• (^) There are many types of hash functions, and a common robust one

is called SHA-256.

Continued…

c) Distributed p2p network:

• (^) In a P2P network, data is not stored in one centralized point, making it far less vulnerable to being hacked, exploited or lost.
• (^) No central point of storage means there is no need for a dominant authority, no single party can control, hence the user becomes the true owner of their personal data.
• (^) Each peer (a “peer” being a computer system on the network) is considered equal and are commonly referred to as nodes.
• (^) A peer makes a portion of computing resources such as disk storage, processing power or network bandwidth, directly available to other participants without the need for any central coordination by servers or stable hosts.

Continued…

d) Mining (proof of work):

• Mining is the process of adding transactions to the distributed public ledger.
• (^) It involves creating a hash of a block of transactions (by varying Nonce) that cannot be easily forged, protecting the integrity of the entire blockchain without the need for a central system.
• (^) Miners solve a difficult mathematical problem based on a cryptographic hash algorithm.
• (^) The solution found is called the Proof-Of-Work.
• (^) Miners receive a reward when they solve the complex mathematical problem.
• (^) There are two types of rewards: new coins or/and transaction fees.

Pictorial Representation of Building Blocks of

BlockChain Technology

Working of BlockChain

Blocks:

• (^) Every chain consists of multiple blocks and each block has three basic elements: 1)The data in the block. 2)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. 3)The hash is a 256-bit number wedded to the nonce. It must start with a huge number of zeroes.

Continued…

Miners

• (^) Miners create new blocks on the chain through a process called

mining.

• (^) 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.

Pictorial Representation of Working of

BlockChain

Thank You