Blockchain is currently at the peak of the Hype Cycle. It is a simple concept, yet difficult to understand and comprehend. It is also in the same place as the Internet was in 1995 – very early, with its major applications yet to be built. Blockchain is a much a philosophy as a technology, and has...
Bank in the ecosystem acts as a center point of failure it is a centralized based system which is prone
to failure from a centralized point of view. If the bank fails all the transactions will come to an halt
which are dependent on the bank. Once the information is compromised it is very difficult to roll that
back and that's why we need more secure systems and systems which are not dependent on a
centralized Authority. Bitcoin was introduced in 2009 by someone or a group of people known as
Satoshi Nakamoto it aimed to solve the problem faced by fiat currencies with the help of blockchain
technology. There are more than 1,600 crypto currencies that follow the concepts of Bitcoin and
blockchain for example the other popular cryptocurrencies are like etherium light coin - ripple and
many more. The Bitcoin is a public distributed ledger which works using a hashing encryption. The
data within a blockchain is accessible to everyone so with this as long as you are part of the network
you could access the entire history of transactions that have taken place since the blockchain was
created since inception. All the transactions are approved and verified on the blockchain network
using proof-of-work consensus algorithm.
A block in a blockchain is like a container that holds aggregated transactions it contains certain set of
transactions. any alterations can be detected by verifying it against everyone 's personal version of
the blockchain so if someone 's tried to modify a data on a block on a particular node then the other
Ledger's which are having the same information will come to know that someone has modified data
on one particular node and they will try to rectify it and the fourth property no central authority is
controlling the working of this blockchain Network it is a decentralized Network. A data set of random
size is sent as input to a hashing function to get an encrypted value of each size. The same input will
always produce the same hash output small changes in the data and drastically change the output.
The hash of the merkel root is varied to create a unique hash address of the block which should be
less than the target hash value. Bitcoin uses a pair of public and private key which is kept as a secret
by the user so basically it is like his own password and public key public key is used to identify the
user on the network. At the sender side the message to be transmitted is passed through the hashing
algorithm in in in this case of Bitcoin it is sha-256 and the hash is generated plus the private key used
to generate a digital signature. This output is then passed through a signature algorithm along with
the user 's public key to create a signature.
A miner transmits across the world that he has found the nonce that satisfies the target requirement
as soon as he find it and thanks to the hashing algorithm used this claim can be easily verified by
others. The miner is rewarded as of today on the Bitcoin network a miners fee 12. 5 bitcoins for
adding a block onto the plot chain. The reward a miner gets reduced by half every four years. We
have developed a kyc solidity contract which has all the necessary functions in order to do the actions
required for doing a kyc of a particular entity by the bank. If any subsequent Bank wants to use the
KYC done by another bank he or she needs to take the permission of the customer and then he can
use the same kyC for verification so we will see how can we do that. The application allows us to
interact in a decentralized fashion to access the KYC records of a particular customer now we can
modify the details also and we can add a new customer again. All these transactions in the back end
are happening on the blockchain network which is interfacing with the contract through its subsequent
methods.
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