Emerging
Information Systems
Technologies
Module 2: Section 2
Prof. Jyoti P. Das
Block chain
Technology
Module 2.4
29-08-2025
Prof. Jyoti P. Das
Block chain technology… what is it?
Blockchain technology is a
decentralized, distributed, and
immutable digital ledger enabling
the recording of transactions and
the tracking of assets within a
business network and providing a
single source of truth.
Data is stored in blocks,
cryptographically linked together
to form a chain, and distributed to
all participants (nodes) in the
network.
Because all participants must
agree (reach consensus) to
validate and add new blocks, and
data cannot be altered once
added, the system is highly
secure, transparent, and
trustworthy, eliminating the need A blockchain consists of programs called scripts that conduct the tasks you usually would in
for a central authority. a database: entering and accessing information, and saving and storing it somewhere
Prof. Jyoti P. Das
Block chain technology… what is it?
You might be familiar with spreadsheets or databases. A blockchain is
somewhat similar because it is a database where information is entered
and stored.
The key difference between a traditional database or spreadsheet and a
blockchain is how the data is structured and accessed.
Blockchain operates as a decentralized distributed database, with data
stored across multiple computers, making it resistant to tampering.
Transactions are validated through a consensus mechanism, ensuring
agreement across the network.
In blockchain technology, each transaction is grouped into blocks, which
are then linked together, forming a secure and transparent chain.
This structure guarantees data integrity and provides a tamper-proof
record, making blockchain ideal for applications like cryptocurrencies and
supply chain management
The key benefit of blockchain lies in its ability to provide security,
transparency and trust without relying on traditional intermediaries, such
as banks or other third parties.
Its design reduces the risk of fraud and errors, making it especially
valuable in industries where secure transactions are critical, including
finance and healthcare.
In addition, blockchain helps businesses improve efficiency and reduce
costs by streamlining processes and enhancing accountability.
Prof. Jyoti P. Das
Block chain technology… the
evolution history
Year Event Description
1991 Blockchain Concept Introduction Proposal of a cryptographically secure chain of blocks to timestamp digital documents.
1998 B-Money Proposal Introduction of "b-money," an early digital currency concept.
2004 Hashcash Implementation Adam Back's proof-of-work system is used to combat spam and DDoS attacks.
Satoshi Nakamoto publishes the Bitcoin whitepaper, outlining a decentralized digital
2008 Bitcoin Whitepaper
currency.
2009 Bitcoin Launch Launch of the Bitcoin network and the mining of the first block.
2011 First Altcoins The emergence of alternative cryptocurrencies like Namecoin and Litecoin.
2013 Ethereum Proposal Vitalik Buterin proposes Ethereum, enabling smart contracts and DApps.
2015 Ethereum Launch Official launch of Ethereum, expanding blockchain applications beyond Bitcoin.
Hack of the Decentralized Autonomous Organization (DAO), leading to an Ethereum hard
2016 DAO Hack
fork.
2017 ICO Boom The surge in Initial Coin Offerings (ICOs) for blockchain-based projects.
2018 Rise of DeFi Growth of Decentralized Finance (DeFi) platforms offering financial services.
2020 NFT Popularity Mainstream rise of Non-Fungible Tokens (NFTs) for digital asset ownership.
2021 Ethereum 2.0 Phase 0 Launch Launch of Ethereum 2.0, transitioning to Proof of Stake for improved scalability.
2022 Increased Regulation Growing regulatory frameworks for cryptocurrencies and blockchain technology.
2023 Blockchain Interoperability Advances in enabling different blockchains to interact and work together.
Prof. Jyoti P. Das
Block chain technology… the
evolution history
Prof. Jyoti P. Das
Block chain technology…
integration into the industry
Prof. Jyoti P. Das
Block chain technology…
Blockchain underpins Bitcoin
is unregulated, censorship-
resistant shadow currency
Blockchain ensures “cash like” coin
passing
• unique,
• immutable,
• final
is the first Blockchain
application
• Blockchain is not CBDC is a type of digital currency that is issued and managed by a central
bank. It operates in the same way as physical currency with the central bank
being responsible for the management and distribution of the currency.
Digital currencies different from Cryptocurrency is a type of decentralized digital currency that is not backed
by any government or central bank. It operates independently of any central
cyptocurrency authority and uses encryption techniques to secure transactions and control
the creation of new units of the currency
Prof. Jyoti P. Das
Block chain technology…Benefits
Greater trust
Blockchain creates a secure, members-only network, ensuring accurate and timely data
access. Confidential records are shared only with authorized network members, fostering
trust and creating end-to-end visibility across the system.
Enhanced Security
Consensus among network members is required to validate data accuracy, and all validated
transactions are immutable and permanently recorded. This capability guarantees that no
transaction can be deleted, even by a system administrator.
Better traceability
Blockchain offers instant traceability with a transparent audit trail of an asset’s journey. In
industries prioritizing sustainability, it enables direct sharing of provenance data, verifying
ethical practices. It can also reveal supply chain inefficiencies, such as delays, driving greater
accountability.
Increased Efficiency
With a distributed ledger shared among network members, the need for time-consuming
record reconciliations is eliminated. Smart contracts, which are stored on the blockchain,
can automate processes and speed up transactions. The benefits of blockchain are increasing
trust, security and transparency among
Automated transactions member organizations by improving the
Smart contracts facilitate the seamless automation of transactions, enhancing efficiency and
traceability of data shared across a business
accelerating real-time processes. When predefined conditions are met, they automatically network, plus delivering cost savings through
trigger the next step, reducing the need for manual intervention. new efficiencies.
Prof. Jyoti P. Das
Block chain technology… how
industries benefit from blockchain
Prof. Jyoti P. Das
Block chain technology…industry
use cases in
Supply chain and food chain
Building trust between trading partners, providing end-to-end visibility, streamlining processes and resolving issues faster with blockchain all add
up to stronger, more resilient supply chains and better business relationships. Plus, participants can respond more quickly when disruptions
arise. In the food industry, blockchain can help ensure food safety and freshness, and reduce waste. If contamination occurs, you can trace the
food back to its source in seconds rather than days.
Banking and financial services
When financial institutions replace old processes and paperwork with blockchain, they realize several benefits. These benefits include removing
friction and delays, and increasing operational efficiencies across the industry, including global trade, trade finance, clearing and settlement,
consumer banking, lending and other transactions.
Healthcare
In an industry troubled by data breaches, blockchain can help healthcare improve security for patient data while making it easier to share records
across providers, payers and researchers. Control over access remains in the hands of the patient, increasing trust.
Pharmaceutical
As pharmaceutical products move through the supply chain, the system records every action. The resulting audit trail allows tracing an item from
origin to pharmacy or retailer, helping to prevent counterfeiting and enabling manufacturers to locate a recalled product in seconds.
Government
Blockchain can help governments work smarter and innovate faster. Secure sharing of data between citizens and agencies can
increase trust while providing an immutable audit trail for regulatory compliance, contract management, identity management and
citizen services.
Prof. Jyoti P. Das
Block chain technology… key
features
Blockchain become such a widely adopted technology because of the elements that give it the ability to allow
asset transactions, be they financial or physical – in a secure, transparent and effective way.
Prof. Jyoti P. Das
Block chain technology… key
features
Distributed ledger technology
All network participants have access to the distributed ledger and its immutable record of transactions. This shared
ledger records transactions only once, eliminating the duplication of effort typical of traditional business networks.
Immutable records
No participant can change or tamper with a transaction after it’s been recorded in the shared ledger. If a transaction
record includes an error, a new transaction must be added to reverse the error, and both transactions are then visible.
Smart contracts
Smart contracts are self-executing agreements stored on the blockchain, where the terms are written in code and
automatically executed when predefined conditions are met. They can be used for various purposes, such as
transferring corporate bonds or triggering travel insurance payouts. By automating these processes, smart contracts
speed up transactions, reduce the need for intermediaries and ensure transparency and security.
Public key cryptography
Public key cryptography is a method used to secure transactions and data on the blockchain by leveraging two
cryptographic keys: a public key and a private key. The public key serves as an address for receiving cryptocurrency or
data, while the private key is a confidential key that grants control over the associated digital assets.
The private key holder can authorize transactions, providing security and verifying ownership, while the public key
allows others to send funds or data to the correct address
Prof. Jyoti P. Das
Block chain technology… how does
it work?
Blockchain technology records transactions securely by linking data blocks together. Each block contains
important details about asset movements and ensures the integrity of the entire process
Prof. Jyoti P. Das
Block chain technology… how does
it work?
Records transactions as blocks
Each transaction is recorded as a “block” of data on the blockchain. These blocks capture key details about the movement of assets, whether
tangible (such as a product) or intangible (such as intellectual property). The data within each block includes critical information, such as who,
what, when, where, the transaction amount, and specific conditions like the temperature of a food shipment.
In addition, each block contains a timestamp, which records the exact moment the transaction is added to the blockchain. This timestamp
ensures the chronological order of transactions and adds an additional layer of verifiability to the data, preventing any retrospective alterations
to the recorded information.
Connects blocks together
Each block is linked to the previous block and the one after it, creating a secure chain of data. This chain is done through cryptographic hashes,
unique identifiers for each block. The hash of a block includes data from the previous block, ensuring the exact sequence and timing of each
transaction. The cryptographic hash makes it nearly impossible to alter any block without changing all subsequent blocks, ensuring the integrity
of the entire process
Builds an irreversible blockchain
The blocks are grouped in an irreversible chain known as a blockchain. Each new block reinforces the security and validation of the previous one,
strengthening the entire chain. This Bitcoin-based architecture is what makes decentralized systems so secure and reliable.
Nodes in the blockchain network validate and maintain the blockchain by confirming each transaction’s validity through consensus algorithms,
ensuring the system remains secure and immutable. Proof of work (PoW) and proof of stake (PoS) are some of the most commonly used
consensus algorithms in blockchain networks, each helping to secure the system while validating transactions
Ensures trust and immutability
With each new block, the blockchain becomes more secure, making it nearly impossible to change past transactions. This immutability provides
a trusted, transparent ledger that all network members can rely on, preventing fraud and ensuring that all transaction records are accurate and
unchangeable.
Prof. Jyoti P. Das
Block chain technology… types of
networks
Prof. Jyoti P. Das
Block chain technology… types of
networks
Public Blockchains
Description: These are permission less networks that are open to anyone to join, read, write, and participate in the
consensus process.
Characteristics: They offer high transparency and decentralization but may have slower transaction speeds.
Examples: Bitcoin and Ethereum are popular public blockchains
Private Blockchains
Description: These are permissioned networks that operate in a closed, controlled environment, restricting access to
authorized participants.
Characteristics: They prioritize privacy, security, and high transaction speeds, making them suitable for business
operations and internal data management.
Examples: Often used within specific companies or organizations for managing internal supply chains or sensitive data
Consortium Blockchains
Description: Also known as federated or semi-decentralized blockchains, they are governed by a group of
organizations rather than a single entity.
Characteristics: They combine aspects of both public and private blockchains, allowing for collaboration among
multiple trusted entities while maintaining some level of control and efficiency.
Examples: Ideal for inter-organizational collaboration, such as in supply chain management among several companies
Hybrid Blockchains
Description: These networks incorporate elements from both public and private blockchains, offering a flexible
approach.
Characteristics: They can control who has access to specific parts of the blockchain while still allowing for public
interaction and transparency in other areas.
Examples: Businesses can use hybrid blockchains to secure sensitive data in a private setting while still interacting with
a public network when necessary
Prof. Jyoti P. Das
Block chain technology… protocols
and platforms
Blockchain protocols are the set of rules
that govern how data is recorded, shared
and secured within a blockchain network.
These protocols establish the foundation
for the network’s operation. However, to
fully take advantage of these protocols,
developers need a platform that provides
the environment and tools to build, deploy
and interact with decentralized applications
(dApps).
Therefore, blockchain platforms, build on
top of these protocols, offering the
necessary infrastructure and services to
create and run apps within the blockchain
ecosystem.
While protocols define the core
functionality, platforms extend this
functionality by enabling the development
of practical solutions.
Blockchain protocols and platforms often
overlap, as platforms usually rely on
specific protocols to operate.
Prof. Jyoti P. Das
Block chain technology… common
protocols and platforms
Prof. Jyoti P. Das
Block chain technology… checklist
for choosing a platform
Prof. Jyoti P. Das
Block chain technology…
importance of security
When building an enterprise
blockchain application, it’s Important security imperatives
essential to have a
Regularly audit and test smart contracts
comprehensive Blockchain
for vulnerabilities, as flaws in their code
security strategy that uses
can lead to serious security breaches.
cybersecurity frameworks,
assurance services and best Comply with industry regulations, such
practices to reduce risks against as GDPR or financial standards through
attacks and fraud. the implementation of privacy-enhancing
technologies like zero-knowledge proofs.
This strategy should encompass
key areas like isentity access Integrate secure messaging protocols to
management (IAM)), ensuring facilitate confidential communication
only authorized users can within the blockchain-based network,
access critical components, and ensuring that messages and transactions
employ strong remain private and tamper-proof.
encryption techniques for data Employ continuous monitoring and a
protection. In addition, well-defined incident response plan to
adopting effective consensus ensure that any security issues are
mechanisms that are resistant detected and addressed promptly,
to attacks is crucial for minimizing the impact of potential
maintaining the integrity of the threats.
network.
Prof. Jyoti P. Das
Block chain technology… security
issues
Prof. Jyoti P. Das
Block chain technology… Industry
use cases
Banking and Fintech
The applications of blockchain technology in finance aim to increase transaction speed, improve security, and reduce costs. The
technology enables faster international transactions by eliminating intermediaries. Ripple, a blockchain network, allows banks and
financial institutions to process real-time cross-border payments more efficiently.
Blockchain is also used in decentralized finance platforms like Aave and Compound. They enable users to interact with
cryptocurrencies without relying on traditional financial intermediaries.
Healthcare
One of the hottest healthcare trends, blockchain addresses data security, patient privacy, and compatibility with other systems. As
an example, Medicalchain uses blockchain to store patient health records securely. This allows patients to control access and share
their medical data with healthcare providers.
Another example of utilizing blockchain for industry operations is drug traceability. Pharmaceutical companies track drug production
and distribution with the help of blockchain, ensuring transparency and reducing counterfeit medications.
Supply Chain and Logistics
Blockchain builds transparency and traceability in supply chains, enabling better tracking of goods and reducing fraud. Companies
like Maersk provide real-time visibility and data sharing across global logistics with blockchain-based platforms.
FedEx is one of the logistics businesses that use blockchain successfully and follow the latest tech trends. They implement smart
contracts for process automation, ensuring faster deliveries and reduced paperwork.
Prof. Jyoti P. Das
Block chain technology… Industry
use cases
Government and Public Sector
The unalterable and transparent nature of blockchain can significantly enhance government operations. Blockchain use cases for
public operations serve as solutions for secure identity management, transparent voting systems, and efficient public records
management, transforming how governments function.
In West Virginia, blockchain technology was used back in 2018 for absentee voting, ensuring vote integrity. Dubai is also using
blockchain for real estate and public record-keeping, reducing administrative tasks and increasing trust in government services.
Education
The education sector leverages cutting-edge technologies to securely store academic credentials and improve verification
processes.
The University of Nicosia issues academic certificates on the blockchain, allowing employers or institutions to verify qualifications
instantly. BIMTECH COOLS uses blockchain to issue tamper-proof certificates which allows graduates to share verified credentials
with potential employers
Global Trade & Commerce
Global trade processes are complex and paper-heavy. Blockchain simplifies and secures documentation, from letters of credit to
customs declarations. Platforms like First Prudential Markets, use blockchain to provide all stakeholders with real-time access
to shipment data.
This ensures traceability, reduces fraud, and speeds up international logistics. Blockchain also facilitates cross-border payments,
trade finance, and compliance monitoring.
Prof. Jyoti P. Das