Blockchain in Banking Masterclass Assessment – 1

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

“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”

Traditional methods of conducting businesses are being revisited. In the digital transformation movement we want to reduce the need for human mediation in multi-party transactions and create communication channels between entities that don’t necessarily trust each other

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

Immutability describes the ability of a blockchain ledger to remain unchanged or for a blockchain to remain unaltered and indelible over time

“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

Every participant of the blockchain gets a replicated copy of each block of information. This data is stored in their respective copies of the blockchain, along with a date and time stamp and unique identifier. Since no single entity can make any changes without the agreement or consensus of all others on the blockchain network, it is impossible to alter a record without the consensus of all nodes on the blockchain network (except in the case of a “51% attack”, which assumes that a single node effectively controls the network).

Bitcoin is a decentralised digital currency that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries, and uses blockchain technology

The data security provided by blockchain immutability transforms the auditing process into an efficient sensible and cost-effective procedure.

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

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.

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

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.

Well Done!{{{split}}}Wrong choice

A block has only one parent block except for the genesis (originalor first) block which has no parent block

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.

Blockchains are Digital by nature. There are generally two types of blockchain – Public and Private. Public blockchains are decentralised peer-to-peer networks. Private blockchains are centralised networks where authority and accessibility depends on the rules and permissions granted to participants.

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

Bitcoin is a digital currency built with underlying blockchain technology. Therefore while all BitCoins are technically blockchain (based) not all blockchains are Bitcoin.

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

Mining is the process of creating new digital currencies, by solving complex calculations, the fastest, The winner is the node that solves the calculation first, and the reward for solving the calculation, is the right to create the next ‘Token’. In blockchain, the Mining Process confirms transactions on the cryptocurrency’s network and makes them trustworthy.

Bitcoin Mining, refers to the first bitcoin miner to solve the puzzle, who is then rewarded with the right to create a new bitcoin.

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

Digital currency wallets are analogous to physical wallets however instead of storing physical currency the wallet stores the cryptographic information used to access Digital Currency addresses and initiate transactions