Blockchain in Banking Masterclass Assessment – 1

There are no specific restrictions to implementing blockchain technology. While it is preferable that the organiation understands the technology and has a clear goal and objectives these are not conditional

Blockchain is sometimes called a “trustless” network — not because business partners don’t trust each other, but because they don’t have to.

Typically the planning stage is the most important because the scaling, security and auditing components while important are an intrinsic part of the technology, and the budget usually follows

This Consortium or Private Permissioned model is better suited more for Enterprise Use Cases as it can handle huge amounts of transactions and data that businesses usually process, but is closed and restricted to participants who may not necessarily have trust relationships between them, for example participants in a Trade Finance platform, involving Banks, Financiers, Businesses, Guarantors, Shippers and other distinct participants

Blockchain is a very versatile technology. Its native use case recording financial transactions is just the tip of the iceberg.

Its possible to distinguish between public and private blockchains – Public blockchain allows any participant to join the system. A Private blockchain requires users to be have to be granted permission

There are total six steps involved in this process and they are:

• Screening ideas for consideration and identifying requirements
• Project development for Blockchain
• Feasible study on the security
• Implementation
• Controlling and monitoring the project

Each block includes the cryptographic hash of the prior blockchain linking the two.

A blockchain ledger like its Accounting namesake is a record to which data is added and updated in real-time via consensus of the different nodes running the software in the network.

A miner is a special node in the network that allocates its computational power to the blockchain network, calculating complex algorithms,  usually with a reward for successful completion, in the form of a token, Bitcoin or other digital reward,

A public blockchain network is as the name suggests a network open to everyone with very few restrictions. Similarly the blockchain ledger that keeps a record of all transactions that take place on the network can be viewed and verified by participants

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“The goal of blockchain is to allow digital information to be recorded and distributed but not edited. Blockchain is used for immutable ledgers or records of transactions that cannot be altered deleted or destroyed HOWEVER it is technically possible to do this should a node get more than 51% control over the network. This is called a “”Proof of Stake”” attack”

Blockchain is a system of recording information in a way that makes it difficult or impossible to change hack or cheat the system. A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain.

It is the immutability of blockchain that makes it so secure. When implemented in a decentralized nature blockchain produces an irreversible timeline of data in which ‘filled’ blocks are unchangeable.

“There are a number of steps involved in this process and they are:

Requirement identification
Screen ideas consideration
Project development for Blockchain
Feasible study on the security
Implementation
Controlling and monitoring the project

When new data comes in it is entered into a fresh block once this block is filled it is chained to the previous block. This means that the data is chained together in chronological order.

Ripple is a decentralised peer-to-peer network that provides a digital payment protocol to financial institutions. It enables seamless digital money transfer to send conventional funds in dollars or cryptocurrencies like Bitcoin.

A Node is any active physical collection of computers and computing devices, in a group (or ‘Node’), attached to a blockchain network. These devices are capable of applying their computational power or sending, receiving or forwarding information; sometimes a combination of the above

An information leak, as a result of insecure data or data loss, can result in widespread harm to an organisation in many areas

Proof of stake (PoS) protocols are a class of consensus mechanisms for blockchains that work by selecting validators in proportion to their quantity of holdings or stake in the blockchain

Blockchains can be programmed to record transactions automatically, and is most often used for self-executing Blockchain Contracts or “Smart Contracts”