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Blockchain
Technology
[Link] Fauzan Octavian (50421093)
[Link] Claryta Berliana Putri (50421177)
[Link] Rabbani (50421230)
[Link] Evan Ariapraja Loppies (50421548)
[Link] Alifia Valescha (50421631)
[Link] Novan Ramadhani (51421022)
Contents
Introduction
How It Works
Types
Application
Benefits
Conclusions
Introduction to
Blockchain
Technology
Blockchain technology is a decentralized and
distributed digital ledger system that records
transactions across multiple computers in a way
that ensures data integrity, transparency, and
security. Each transaction is grouped into a
"block," and blocks are linked together in
chronological order to form a "chain," creating an
immutable history of transactions.
Since a block can’t be changed, the only trust
needed is at the point where a user or program
enters data. This reduces the need for trusted
third parties, such as auditors or other humans,
who add costs and can make mistakes.
How It Works
• Blocks : Information, such as transactions is grouped together into
a "block." Each block contains data, a timestamp, and a reference
(a "hash") to the previous block.
• Chains: These blocks are connected in a chronological sequence,
forming a "chain." Because each block refers to the one before it,
they create a secure, linked record of all transactions.
• Decentralization: Instead of being stored in one place (like a
traditional database), a blockchain is distributed across many
computers, known as "nodes." Everyone participating in the
network (all the nodes) has a copy of the blockchain.
• Consensus: Before a new block can be added, the nodes in the
network must agree that the transaction is valid. This is often done
through consensus mechanisms like "Proof of Work" (used by
Bitcoin), where participants solve complex puzzles to confirm
transactions.
• Immutability: Once a block is added to the chain, it is very difficult
to change or delete it. This makes blockchain highly secure, as
altering a single block would require changing all subsequent
blocks on every computer in the network, which is nearly
impossible.
How It Works
Transaction Process
1.A new transaction is initiated and transmitted across a peer-to-peer network of computers.
[Link] network validates the transaction by solving complex equations to ensure its legitimacy.
[Link] transactions are collected into blocks. Once a block is filled, it is closed, and the mining
process begins.
[Link] node in the network proposes its own block of transactions and competes to solve a
cryptographic challenge, using a unique, adjustable value called the "nonce."
[Link] a valid solution is found, the block is added to the blockchain, and the transaction is
considered complete after confirmation by subsequent blocks.
In Bitcoin, this confirmation process typically takes about an hour (with five subsequent blocks
confirming the initial block). Other blockchains, like Ethereum, use different mechanisms, such as
selecting validators randomly to approve transactions, which is faster and consumes less energy.
TYPES OF BLOCKCHAIN
TECHNOLOGY
• Public Blockchain
The public blockchain network is open access. The network imposes no restriction to access its premises. Anyone
can send a transaction to this network, and anyone can become a transaction validator. Usually, the public
blockchain network offers economic incentives for the people who secure them, and utilizes some sort of proof of
stake, or proof of work, algorithm, to general people. This is known as cryptocurrency mining. Some of the
largest and best known public blockchains are bitcoin and Ethereum.
• Private Blockchain
Unlike the public blockchain network, private blockchain networks are permissioned, which means no one can
join the network until they are invited by the network administrator . Both participants’ and validators’ access
are restricted without any invitation to participate. This sort of blockchain network is used by companies who
want to secure their data without sacrificing autonomy or taking the risk of exposing data to the public internet.
• Consortium Blockchain
Similar to the private blockchain network consortium, the blockchain network is also permissioned and semi-
decentralized, but instead of a single organization controlling the network, a number of companies might each
operate a node on such a network.
Benefits of • Improved Accuracy:
Blockchain Blockchain provides a transparent,
immutable ledger that records
transactions in chronological order,
reducing errors compared to
• More Security: centralized systems. Consensus
Cryptography, hashing algorithms, and algorithms validate transactions, and
consensus mechanisms (like proof of work public blockchains allow users to
or proof of stake) ensure data security independently verify them.
and prevent manipulation. The distributed
nature of blockchain reduces the risk of a
• Higher Efficiency:
single point of failure.
Blockchain eliminates intermediaries,
automates verification with smart
contracts, reduces costs, and improves
processing times, streamlining
operations and enhancing data
integrity.
Banking
Blockchain
Applications
Blockchain technology enhances
banking by enabling secure and fast
Copyrights and Patents
financial transactions, preventing
Blockchain technology
fraud, and creating transparent
authenticates copyrights and
business systems.
patents, manages rights, provides
proof of first use, and facilitates
electronic rights management.
Public Administration
Blockchain improves public administration by
enhancing citizen experience, decentralizing
processes, and ensuring secure data storage.
Conclusions
Blockchain technology has transformed the way we manage and secure data. By
decentralizing information and enabling peer-to-peer transactions, blockchain enhances
transparency, security, and efficiency in multiple industries, including banking, healthcare,
supply chain, and public administration. Through cryptographic hashing, consensus
mechanisms, and decentralized nodes, blockchain ensures data integrity and immutability.
With various types of blockchain—public, private, and consortium—available, the technology
offers flexible solutions to meet the needs of different sectors. As blockchain continues to
evolve and integrate with other technologies, its impact on data management and secure
transactions will only grow stronger, contributing to the development of trust and innovation in
the digital age.