Blockchain Tutorial: Learn Blockchain Technology (Examples)

What is Blockchain?

Blockchain can be defined as a range of blocks that contains data. The technique is intended to timestamp digital documents so that it ’ s not potential to backdate them or temper them. The aim of blockchain is to solve the duplicate records problem without the necessitate for a central server .
The blockchain is used for the secure transfer of items like money, property, contracts, etc, without requiring a third-party mediator like a bank or government. Once datum is recorded inside a blockchain, it is very unmanageable to change it.

The blockchain is a software protocol ( like SMTP is for e-mail ). however, Blockchains could not be run without the Internet. It is besides called meta-technology as it affects early technologies. It is comprised of respective pieces : a database, software application, some connect computers, etc .
sometimes the term is used for Bitcoin Blockchain or The Ethereum Blockchain, and sometimes, it ’ s other virtual currencies or digital tokens. however, most of them are talking about distributed ledgers .
In this Blockchain tutorial for beginners, you will learn Blockchain basics like :

What Blockchain is NOT!

What Blockchain is NOT

  • Blockchain is not Bitcoin, but it is the technology behind Bitcoin
  • Bitcoin is the digital token, and the blockchain is the ledger to keep track of who owns the digital tokens
  • You can’t have Bitcoin without blockchain, but you can have a blockchain without Bitcoin.

Blockchain Architecture

now in this Blockchain Technology tutorial, let ’ s study the Blockchain architecture by understanding its diverse components :

What is a Block?

Block Architecture of Blockchain
A Blockchain is a chain of blocks that contain information. The data which is stored inside a block depends on the type of blockchain .
For Example, A Bitcoin Block contains information about the Sender, Receiver, number of bitcoins to be transferred .

Bitcoin Block
Bitcoin Block

The first block in the chain is called the Genesis block. Each raw block in the chain is linked to the previous stuff.

Understanding SHA256 – Hash

A block besides has a hash. A can be understood as a fingerprint which is unique to each block. It identifies a block and all of its contents, and it ’ s always unique, barely like a fingerprint. so once a block is created, any change inside the jam will cause the Hash to change .

What is SHA256 Hash
What is SHA256 Hash

therefore, the Hash is identical utilitarian when you want to detect changes to intersections. If the fingerprint of a block changes, it does not remain the lapp freeze .
Each Block has

  1. Data
  2. Hash
  3. Hash of the previous block

Consider the follow exercise, where we have a range of 3 blocks. The 1st block has no harbinger. Hence, it does not contain has the previous obstruct. Block 2 contains a hashish of stuff 1. While auction block 3 contains Hash of block 2 .
Block Architecture of Blockchain
Hence, all blocks are contained hashes of previous blocks. This is the proficiency that makes a blockchain so impregnable. Let ’ s see how it works –
Assume an attacker can change the data show in Block 2. correspondingly, the Hash of the Block besides changes. But Block 3 still contains the honest-to-god Hash of Block 2. This makes Block 3, and all succeeding blocks invalid as they do not have the right Hash of the previous block .
Block Architecture of Blockchain
therefore, changing a single blockage can quickly make all following blocks invalid.

Proof of Work

Hashes are an excellent mechanism to prevent anneal, but computers these days are high-speed and can calculate hundreds of thousands of hashes per second. In a matter of a few minutes, an attacker can tamper with a block and then recalculate all the hashes of other blocks to make the blockchain valid again .
To avoid the consequence, blockchains use the concept of Proof-of-Work. It is a mechanism that slows down the creation of the raw blocks .
A proof-of-work is a computational trouble that takes a certain to feat to solve. But the clock required to verify the results of the computational problem is very less compared to the attempt it takes to solve the computational problem itself .
In the case of Bitcoin, it takes about 10 minutes to calculate the want proof-of-work to add a new blocking to the chain. Considering our example, if a hacker would to change data in Block 2, he would need to perform proof of employment ( which would take 10 minutes ) and only then make changes in Block 3 and all the succeeding blocks .
Block Architecture of Blockchain
This kind of mechanism makes it quite hard to tamper with the blocks, so even if you tamper with even a one stop, you will need to recalculate the proof-of-work for all the following blocks. thus, hashing and proof-of-work mechanisms make a blockchain fasten .

Distributed P2P Network

however, there is one more method which is used by blockchains to secure themselves, and that ’ mho by being distributed. rather of using a cardinal entity to manage the chain, Blockchains use a distribute peer-peer net, and everyone is allowed to join. When person enters this network, he will get the full copy of the blockchain. Each computer is called a node .
Distributed P2P Network
Let ’ s see what happens when any drug user creates a new pulley. This raw blockage is sent to all the users on the network. Each node needs to verify the blocking to make surely that it hasn ’ triiodothyronine been altered. After complete check, each lymph node adds this block to their blockchain .
Distributed P2P Network
All these nodes in this network create a consensus. They agree about what blocks are valid and which are not. Nodes in the network will reject blocks that are tampered with .
so, to successfully tamper with a blockchain

  1. You will need to tamper with all blocks on the chain
  2. Redo the proof-of-work for each block
  3. Take control of greater than 50% of the peer-to-peer network.

After doing all these, your tamper block becomes accepted by everyone else. This is future to an impossible tax. Hence, Blockchains are indeed impregnable. next, in this novice ’ second Blockchain development tutorial, we will learn how a Blockchain transaction works ?

How Does Blockchain Technology Work?

Blockchain Transaction Process
Blockchain Transaction Process

Step 1) Some person requests a transaction. The transaction could be involved cryptocurrency, contracts, records, or early information .
Step 2) The requested transaction is broadcasted to a P2P net with the help of nodes .
Step 3) The network of nodes validates the transaction and the drug user ’ randomness condition with the help of known algorithm .
Step 4) Once the transaction is dispatch, the newfangled forget is then added to the existing blockchain. In such a room that is permanent wave and changeless .

Why do we need Blockchain?

here are some reasons why Blockchain technology has become so popular.

Resilience: Blockchains is much duplicate computer architecture. The chain is still operated by most nodes in the event of a massive attack against the system .
Time reduction: In the fiscal diligence, blockchain can play a critical function by allowing the quicker colonization of trades as it does not need a drawn-out process of verification, colonization, and clearance because a single version of agreed-upon data of the shared ledger is available between all stack holders .
Reliability: Blockchain certifies and verifies the identities of the concerned parties. This removes double records, reduces rates, and accelerates transactions .
Unchangeable transactions: By registering transactions in chronological order, Blockchain certifies the fixedness of all operations, which means when any newfangled blocking has been added to the chain of ledgers, it can not be removed or modified .
Fraud prevention: The concepts of shared information and consensus prevent possible losses due to fraud or embezzlement. In logistics-based industries, blockchain as a monitor mechanism work to reduce costs .
Security: Attacking a traditional database is the bringing down of a specific target. With the help of Distributed Ledger Technology, each party holds a copy of the original chain, so the organization remains surgical, tied a large number of other nodes fall .
Transparency: Changes to public blockchains are publicly viewable to everyone. This offers greater transparency, and all transactions are immutable .
Collaboration – Allows parties to transact immediately with each other without the need for mediating third parties .
Decentralized: There are standards rules on how every node exchanges the blockchain information. This method ensures that all transactions are validated and all valid transactions are added one by one .

Blockchain versions

immediately in this Blockchain development tutorial, let ’ s determine about Blockchain versions .

Blockchain Versions
Blockchain Versions

Blockchain 1.0: Currency

The execution of DLT ( distributed daybook engineering ) led to its beginning and obvious lotion : cryptocurrencies. This allows fiscal transactions based on blockchain engineering. It is used in currency and payments. Bitcoin is the most outstanding example in this segment .

Blockchain 2.0: Smart Contracts

The new key concepts are Smart Contracts, minor calculator programs that “ be ” in the blockchain. They are detached computer programs that execute automatically and check conditions defined earlier like facilitation, verification, or enforcement. It is used as a substitution for traditional contracts .

Blockchain 3.0: DApps:

DApps is an abbreviation of decentralize application. It has its backend code running on a decentralized peer-to-peer network. A DApp can have frontend Blockchain exercise code and drug user interfaces written in any speech that can make a call to its backend, like a traditional App .

Blockchain Variants


In this type of blockchain, ledgers are visible to everyone on the internet. It allows anyone to verify and add a freeze of transactions to the blockchain. populace networks have incentives for people to join and are loose for use. Anyone can use a public blockchain network .


The secret blockchain is within a single organization. It allows lone specific people of the arrangement to verify and add transaction blocks. however, everyone on the internet is generally allowed to view it .
Private Blockchain


In this Blockchain variant, only a group of organizations can verify and add transactions. hera, the ledger can be open or restricted to select groups. Consortium blockchain is used cross-organizations. It is lone controlled by pre-authorized nodes .

Blockchain Use Cases

Blockchain Technology is used wide in the different sectors as given in the follow mesa .

Sector Usage
  • Billing, monitoring and Data Transfer
  • Quota management in the Supply Chain Network
Government Sector
  • Transnational personalized governance services
  • Voting, propositions P2P bond,
  • Digitization of documents/ contracts and proof of ownership for transfers
  • Registry & Identify
  • Tele-attorney service
  • IP registration and exchange
  • Tax receipts Notary service and document registry
  • Agricultural & drone sensor networks
  • Smart home networks
  • Integrated smartcity.
  • Smart home sensors
  • Self-driving car
  • Personalized robots, robotic component
  • Personalized drones
  • Digital Assistants
  • Data management
  • Universal EMR Health databanks
  • QS Data Commons
  • Big health data stream analytes
  • Digital health wallet Smart property
  • Health Token
  • Personal development contracts
Science & Art
  • Supercomputing
  • Crowd analysis
  • P2P resources
  • Digital mind fit services
Finance & Accounting
  • Digital Currency Payment
  • Payments & Remittance
  • Decartelized Capital markets using a network of the computer on the Blockchain
  • Inter-divisional accounting
  • Clearing & Trading & Derivatives
  • Bookkeeping

Important Real-Life Use Cases of Blockchain

1.Dubai: The Smart City
In the year 2016, smart Dubai office introduced Blockchain scheme. Using this technology, entrepreneurs and developers will be able to connect with investor and leading companies. The aim is to implement blockchain based arrangement which favors the development of respective kinds of industries to make Dubai ‘ the happiest city in the global. ’
2. Incent Customer retention
Incent is CRaaS ( Consumer retentiveness as a serve ) based on Blockchain engineering. It is a commitment course of study which is based on generating tokens for businesses affiliated with its refer net. In this system, blockchain is exchanged instantaneously, and it can be stored in digital portfolios of drug user ’ sulfur phones or accessing through the browser .
3. Blockchain for Humanitarian Aid
In January 2017, the unite nations world food program started a project called humanist help. The project was developed in rural areas of the Sindh region of Pakistan. By using the Blockchain technology, beneficiaries received money, food and all type of transactions are registered on a blockchain to ensure security and foil of this summons .

Bitcoin cryptocurrency: Most Popular Application of Blockchain

Blockchain in Bitcoin Cryptocurrency

What is Cryptocurrency?

A cryptocurrency is one metier of exchange like traditional currencies such as USD, but it is designed to exchange the digital information through a work made possible by sealed principles of cryptography. A cryptocurrency is a digital currentness and is classified as a subset of option currencies and virtual currencies .
Cryptocurrency is a holder musical instrument based on digital cryptography. In this kind of cryptocurrency, the holder has of the currency has ownership. No other record kept as to the identity of the owner. In the year 1998, Wei Dai published “ B-Money, ” an anonymous, spread electronic cash system .

What is Bitcoin?

Bitcoin was launched in 2009 by an unknown person called Satoshi Nakamoto. Bitcoin is a Peer-to-Peer engineering that is not governed by any central agency or banks. presently, issuing Bitcoins and managing transactions are carried out jointly in the network. It is presently the dominant cryptocurrency in the world. It is overt source and designed for the general public means cipher owns the control of the Bitcoin. In fact, there are only 21 million Bitcoins issued. Currently, Bitcoin has a market capital of $ 12 billion .
Anyone can use bitcoin without paying any process fees. If you are handling Bitcoin, the transmitter and receiver transact directly without using a third base party .

Blockchain and Bitcoin:

The blockchain is the engineering behind Bitcoin. Bitcoin is the digital keepsake, and blockchain is the ledger that keeps lead of who owns the digital tokens. You can ’ t have Bitcoin without blockchain, but you can have blockchain without Bitcoin .
other big cryptocurrencies

  • Ethereum
  • Bitcoin Cash
  • Ripple
  • Litecoin

Blockchain vs. Shared Database

Blockchain vs Shared Database
Blockchain v Shared Database

Parameters Blockchain Shared Database
Operations Insert Create/ Read/ Update and Delete
Replication Full replication on every peer Master-slave
Consensus Most of the peers agree on the outcome of transactions. Distributed transactions which held in two phases commit and Paxos.
Validation Global rules are enforced on the whole blockchain system. Offers only local integrity constraints
Disintermediation It is allowed with blockchain. Not allowed.
Confidentiality Fully confidential Not totally confidential
Robustness Fully robust technology. Not entirely robust.

Myths about Blockchain

Myth Reality
It solves every problem No, it is just a database
Trustless Technology It can shift trust and also spread trust
Secure It focuses on integrity and not confidentiality
Smart contracts are always legal It only executes parts of some legal contracts
Immutable It only offers probabilistic immutability
Need to waste electricity Emerging blockchains are efficient
It is inherently unsalable Emerging blockchains are scalable

Applications of Blockchain Technology

here are some common applications of Blockchain :

  • It is used to create a secure and transparent digital ledger of all transactions.
  • It allows you to create a tamper-proof record of academic achievement that is accessible to all students and teachers.
  • It is used for creating a more efficient system for trading securities.
  • Lenders use blockchain to execute collateralized loans through smart contracts
  • Using blockchain technology to record real estate transactions can provide a more secure and accessible means of verifying and transferring ownership.
  • Use for keeping data like Social Security number, date of birth, and other identifying information on a public ledger.
  • Blockchain technology is also used in the logistics industry as it helps to track items as they move through a logistics or supply chain network.

Limitations of Blockchain technology

now in this beginners Blockchain tutorial, we will learn about limitations of Blockchain technology :
Higher costs: Nodes seek higher rewards for completing Transactions in a business that work on the principle of Supply and Demand
Slower transactions: Nodes prioritize transactions with higher rewards, backlogs of transactions build-up
Smaller ledger: It is not possible to a full copy of the Blockchain, potentially which can affect immutability, consensus, etc .
Transaction costs, network speed: The transactions cost of Bitcoin is quite high gear after being touted as ‘ about free ’ for the first few years .
Risk of error: There is constantly a gamble of mistake, a long as the human factor is involved. In case a blockchain serves as a database, all the entrance datum has to be of high timbre. however, homo participation can quickly resolve the erroneousness .
Wasteful: Every node that runs the blockchain has to maintain consensus across the blockchain. This offers very low downtime and makes data stored on the blockchain forever unchangeable. however, all this is wasteful because each node repeats a job to reach a consensus .
Blockchain Council
Blockchain Council provides certification for blockchain, which is particularly designed for the people who want to make a career in the blockchain sphere. This authentication requires in-depth cognition of the core concept of blockchain. It focuses on Corda, Smart Contracts, Hyperledger, Quorum applications
Blockchain Council certification can be helpful to work in industries like digital marketing, healthcare, supply chain, etc. The train and certificate given by this organization are utilitarian for versatile enterprises, businesses, and developers. It results in the use of Blockchain engineering on the centralized and traditional work arrangement business.

Following are the certificates provided by Blockchain Council :

  • A Certified Blockchain Expert
  • Certified Corda Expert
  • Certified Corda Architect
  • Certified Blockchain Developer
  • Certified BlockChain Security Professional
  • Certified Smart Contract Developer
  • Certified Bitcoin Expert
  • Certified Ethereum Expert

Blockchain Council
If you want to learn about creating your own cryptocurrency, here ’ s a free tutorial you ’ ll want to check out : How to Create Your own Cryptocurrency ?


  • A Blockchain is a chain of blocks that contain information
  • The blockchain is not Bitcoin, but it is the technology behind Bitcoin
  • Every block contains hash.
  • Each block has a hash of the previous block
  • Blockchain require Proof of Work before a new block is added
  • The blockchain database is disturbed amongst multiple peers and is not centralized.
  • Block chain technology is Resilience, Decentralize, Time reducing, reliable and its offers unalterable transitions
  • Three versions of Blockchain are Blockchain 1.0: Currency, Blockchain 2.0: Smart Contracts and Blockchain 3.0: DApps
  • The blockchain is Available in three different variants 1) Public 2) Private 3) Consortium
  • Higher cost, slower transactions, small ledger, the risk of error are some disadvantage of using this technology
  • Dubai- The Smart City, Incent Customer retention, and Blockchain for Humanitarian Aid are the real-life use cases of Blockchain
  • Bitcoin uses blockchain technology which is not governed by any central authority or banks
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