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Blockchain Technology
Discover the revolutionary technology that is transforming industries.
Explore the principles, benefits, and risks of blockchain, along with realworld examples and future directions.
by Alyorbek Sobirov
Alyorbek Sobirov
What is Blockchain Technology?
Blockchain is a decentralized digital ledger that records transactions across multiple computers. It
provides transparency, immutability, and security, making it ideal for industries like finance, supply
chain, and healthcare.
Alyorbek Sobirov
How Blockchain Works
1
Transaction Creation
A user initiates a transaction and
Validation & Approval
2
broadcasts it to the network.
Miners validate the transaction and
add it to a block through consensus
mechanisms like proof-of-work or
proof-of-stake.
3
Block Addition
The approved block is added to the
chain, linking it to the previous blocks
Decentralized Consensus
4
through cryptographic hashes.
The distributed network agrees on the
validity and order of transactions,
ensuring trust and eliminating the
need for intermediaries.
Alyorbek Sobirov
Main Advantages of Blockchain
Transparency
Security
Blockchain promotes transparency by
Transactions on the blockchain are secured
providing a public record of all transactions
through cryptographic algorithms, making it
that can be verified by anyone.
difficult for hackers to tamper with data.
Efficiency
Cost Savings
Using smart contracts, blockchain
By removing the need for middlemen and
automates processes, reduces paperwork,
reducing manual processes, blockchain can
and increases efficiency in various
significantly reduce costs.
industries.
Alyorbek Sobirov
Examples of Blockchain Use
Finance
Supply Chain
Blockchain enables faster, more secure, and
From tracking goods to verifying authenticity,
transparent cross-border payments, eliminates
blockchain revolutionizes supply chain
intermediaries, and supports decentralized
management, ensuring traceability and reducing
finance.
fraud.
Healthcare
Voting
Blockchain securely stores and shares medical
Decentralized voting systems built on blockchain
records, streamlines data exchange between
enhance security, transparency, and
providers, and enables secure medication
accountability in electoral processes.
traceability.
Alyorbek Sobirov
Risks and Challenges of Blockchain
1
Regulatory Uncertainty
2
Scalability
The lack of clear laws and regulations
The current blockchain infrastructure
poses challenges in implementing
struggles with scalability, limiting its
blockchain across industries.
ability to handle a large number of
transactions.
3
Energy Consumption
4
Privacy
Proof-of-work consensus algorithms
Blockchain's transparency can clash with
require significant computational power,
privacy requirements, necessitating
leading to environmental concerns.
careful handling of personal data.
Alyorbek Sobirov
Future Directions of Blockchain
Decentralized
Finance
Interoperability
Scalability Solutions
Efforts are underway to
Emerging technologies like
The rise of decentralized
facilitate seamless
sharding and layer 2 solutions
communication and
aim to enhance blockchain's
transactions between
scalability.
finance (DeFi) offers new
possibilities for lending,
borrowing, and investing.
different blockchain networks.
Alyorbek Sobirov
Conclusion
Blockchain technology has the potential to revolutionize how we transact, store data, and establish
trust. Despite challenges, its adoption continues to grow, paving the way for a more decentralized
and secure future.
Alyorbek Sobirov
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