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Bitcoin Transparency Using Blockchain.pptx

  1. Bitcoin Transparency Using Blockchain GROUP 1
  2. Blockchain A blockchain is a shared distributed database or ledger between computer network. A blockchain serves as an electronic database for storing data in digital form which can access by anyone. The most well-known use of blockchain technology is for preserving a secure and decentralized record of transactions in cryptocurrency systems like Bitcoin. The innovation of a blockchain is that it fosters confidence without the necessity for a reliable third party by ensuring the fidelity and security of a record of data.
  3. History of Blockchain A person name Satoshi Nakamoto first introduced the ideas of bitcoin and blockchain in 2008, outlining how cryptography and an open distributed ledger could be used to create a digital currency application (Nakamoto 2008). At initially, bitcoin's development was somewhat constrained by its unusually high volatility and the views of many nations against its complexity, but the benefits of blockchain. The distributed ledger, decentralization, information transparency, tamper-proof design, and openness of blockchain are some of its benefits. Blockchain development has progressed over time. According to the applications they support, blockchain is now divided into three versions: 1.0, 2.0, and 3.0. we go into further information about the three blockchain generations.
  4. Blockchain version Blockchain 1.0 : Blockchain technology was first applied in relation to virtual currencies like bitcoin, which was not only the first and most popular digital money but also the subject of blockchain 1.0. (Mainelli and Smith 2015) Blockchain 2.0 : Decentralized applications (Dapps), decentralised autonomous organizations (DAOs), and decentralized autonomous corporations (DACs) are all broadly referred to as part of Blockchain 2.0. (Swan 2015)
  5. Blockchain version Blockchain 3.0 : This is the use of blockchain in industries other than currency and banking, such as government, health, science, culture, and the arts, according to "Blockchain: Blueprint for a New Economy“. Blockchain 3.0, which focuses on the governance and regulation of the technology's decentralization in society, wants to popularize the technology. Blockchain technology is a shifting target, according to the breadth of this kind of blockchain and its prospective uses Blockchain 3.0 envisions a more sophisticated type of "smart contracts" to create a distributed organizational unit with a high degree of autonomy and the ability to make and be subject to its own laws
  6. Bitcoin A cryptocurrency, such as Bitcoin (BTC), eliminates the need for a third party to be involved in financial transactions by acting as money and a means of payment independent of any one person, group, or entity. It is available for purchase on numerous platforms and is given to blockchain miners as compensation for their efforts in verifying transactions. Bitcoin is booming in these days and having a lot other coin which are being used in cryptocurrency.
  7. Working of Bitcoin Using Blockchain Bitcoin is based on a distributed digital ledger known as a blockchain. Blockchain, as the name implies, is a linked body of data made up of units called blocks that contain information about each transaction, such as date and time, total value, buyer and seller, and a unique identifying code for each exchange. When a some amount of bitcoin is transferred the bitcoin basically use blockchain technology and the Blockchain store two important type of data 1st the transactional information from where the bitcoin come and where it has to go. The 2nd important point is that to store the Hash value in order to make a unique transaction each block of Blockchain has a unique Hash-value.
  8. Public and private keys You need both the public and private keys for the amount of bitcoin you wish to send in order to transmit it. When we refer to a person as "owning" bitcoins, what we mean is that they have access to a "key pair" made up of: Public key: a public key (an address) to which a certain quantity of bitcoin has previously been transmitted Private key: A unique private key (a password) that allows the bitcoin that has already been sent to the public key (address) mentioned above to be sent somewhere else.
  9. Public and private keys Public keys, also known as bitcoin addresses, are alphanumeric strings of characters that are produced at random and serve a similar purpose to an email address or a username on a social media platform. Since they are public, as their name suggests, sharing them with others is safe.
  10. Steps of Bitcoin transaction STEP 1: Transaction creation and signing A transaction can be created by anyone using the three requirements. the input, output, and quantity. Let's take the scenario where Hamza and Faiz are trading bitcoin for dollars. Hamza must tell Faiz her public bitcoin address before Faiz can start sending the bitcoin to Hamza. Faiz then creates the transaction and signs it using his private key.
  11. Steps of Bitcoin transaction STEP 2: Broadcasting The closest bitcoin network node receives the transaction after it is created. It's important to know that the transaction need not be transmitted immediately after creation. It might be transmitted many years after its creation “ just need to be sure that you have enough bitcoins in the wallet when you decide to send it”.
  12. Steps of Bitcoin transaction STEP 3: Propagation and verification The transaction is broadcast throughout the network and confirmed once it reaches the nearest node. When a block passes verification, it enters the "Mempool" (short for Memory Pool) and waits patiently for a miner to pick it up and add it to the following block.
  13. Steps of Bitcoin transaction STEP 4: Validation As soon as a transaction is on the Mempool, miners begin to collect it (first those who paid a higher transaction fee) and group it into blocks. As of May 2017, each block can only be 1 MB in size (the community is debating changing this limit), and depending on the size of each transaction, it can include anywhere between 2000 and 3000 transactions. The network then agrees on the valid block, and consequently the transactions, on average every 10 minutes using the Proof-of-Work Consensus Algorithm.
  14. Future project directions for blockchain? There are no of ideas come in mind after the success of Blockchain 1. Fake Product Identification 2. Crowdfunding 3. Data storage and sharing 4. Smart trading 5. Food tracking 6. Hospital Management for tracking record