It is considered a breakthrough in securely storing and transmitting information.In simple terms, blockchain is a distributed and public system where transactions and information are rec
INTRODUCTION OF BLOCKCHAIN
History of blockchain
The history of blockchain can be divided into three main phases:
This phase was marked by early research into decentralized systems and cryptography In 1982, David Chaum developed blind signatures, a technology that can be used to protect privacy in financial transactions In 1991, Stuart Haber and W Scott Stornetta invented the timestamping system, a system that can be used to verify the integrity of data.
This phase was marked by the development of Bitcoin, a digital currency that uses blockchain technology Bitcoin was invented by Satoshi Nakamoto in 2008 and released to the public in 2009 The advent of Bitcoin brought blockchain technology to the world's attention
This phase has been marked by the widespread development and application of blockchain technology During this phase, there has been the development of many different types of blockchains, including public blockchains, private blockchains, and consortium blockchains Blockchain technology has also been applied in a wide range of industries, including finance, healthcare, supply chain, and government.
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Blockchain is a chain-block technology that allows the safe transmission of data based on an extremely complex encryption system, similar to a company's accounting ledger, where money isclosely monitored and record every transaction on the peer- to-peer network.
Each block contains information about the creation time and is linked to the previous block, along with a time code and transaction data Once data is accepted by the network, there is no way to change it Blockchain is designed to prevent fraud and alteration of data.
The specific structure of the blockchain consists of two main components: blocks and chains.
A block is a unit of data stored in the blockchain Each block contains the following information:
Previous hash: This is a unique string of characters generated from the data of the previous block It helps link blocks together into a chain.
Current hash: This is also a unique string of characters generated from the data of the current block It helps protect the data in the block and prevent data from being changed.
Data: This is the actual data stored in the block, such as transaction information, asset information, etc.
Timestamp: This is the time the block was created.
Nonce: This is a random number used to generate the hash of the current block.
A chain is a collection of blocks linked together by hashes The blockchain is always expanding as new blocks are created.
The blockchain structure gives it several important properties, including:
Decentralization: Blockchain data is stored on multiple computers in the blockchain network This helps prevent data control by a specific individual or organization.
Transparency: Everyone in the blockchain network can access and view blockchain data This helps ensure data transparency.
Immutability: Blockchain data is protected by hashes Changing data in a block will change the block's hash This makes it very difficult to change blockchain data.
Blockchain works on a network of computers that are connected Every computer in the network has a copy of the blockchain, and new transactions are added to the blockchain by these computers.
When a new transaction is made, it is sent to all the computers in the network These computers verify the transaction using cryptography If the transaction is valid, it is added to the blockchain.
To add a new block to the blockchain, a computer in the network must solve a mathematical problem The first computer to solve this problem is allowed to add the new block to the blockchain and receive a reward.
1.5 Introduction to the different types of blockchains in English:
There are four main types of blockchains: public blockchains, private blockchains, consortium blockchains, and hybrid blockchains Each of these platforms has its own set of benefits, drawbacks, and ideal use cases.
Public blockchains are the first and most popular type of blockchain They are designed to be permissionless, meaning that anyone can join the network, including those without any access controls Public blockchains use a consensus algorithm called proof-of- work (PoW) to validate transactions In PoW, nodes in the network compete to add new blocks to the blockchain The node that solves a mathematical puzzle first is rewarded with cryptocurrency
The advantages of public blockchains include:
Transparency: All transactions on a public blockchain can be viewed by anyone.
Security: Transactions on a public blockchain are protected by strong cryptography.
Decentralization: Public blockchains are not controlled by any single individual or organization.
The drawbacks of public blockchains include:
Efficiency: Public blockchains can be slow and expensive to use.
Security: Public blockchains can be vulnerable to network attacks.
Private blockchains are permissioned blockchains, meaning that only authorized participants can join the network Private blockchains are often used by businesses or organizations to store sensitive data Private blockchains do not use PoW, but instead use other consensus algorithms, such as proof-of-authority (PoA) or proof-of-stake (PoS).
The advantages of private blockchains include:
Efficiency: Private blockchains can be faster and cheaper to use.
Security: Private blockchains can be more secure than public blockchains.
The drawbacks of private blockchains include:
Transparency: Transactions on a private blockchain can only be viewed by authorized participants.
Decentralization: Private blockchains are controlled by a group of individuals or organizations.
Consortium blockchains are a hybrid of public and private blockchains Consortium blockchains allow nodes in the network to communicate with each other, even if they belong to different networks Consortium blockchains are often used to connect different systems, such as accounting systems or data storage systems.
The advantages of consortium blockchains include:
Interoperability: Consortium blockchains allow different systems to communicate with each other.
Security: Consortium blockchains can be more secure than public blockchains. The drawbacks of consortium blockchains include:
Complexity: Consortium blockchains can be more complex to deploy and manage.
Hybrid blockchains are a combination of public and private blockchains Hybrid blockchains allow nodes in the network to choose how to participate in the network Nodes can choose to participate in the public blockchain or the private blockchain, depending on their needs.
The advantages of hybrid blockchains include:
Flexibility: Hybrid blockchains allow nodes in the network to choose how to participate in the network.
Security: Hybrid blockchains can be more secure than public blockchains.
The drawbacks of hybrid blockchains include:
Complexity: Hybrid blockchains can be more complex to deploy and manage.
Blockchain technology has evolved through various stages, each with its own characteristics and applications It can be divided into four main versions:
This version emerged with the introduction of Bitcoin in 2009 Bitcoin is a digital currency that utilizes Blockchain technology to store and verify transactions Blockchain 1.0 exclusively focuses on applications related to money and payments.
Building upon Version 1.0, Blockchain 2.0 introduces new features to expand its applicability This version centers on the financial and market sectors, including:
Version 3.0: Design and Operation Monitoring
Blockchain 3.0 further develops the functionalities of Version 2.0, incorporating additional features like:
Smart contracts: Smart contracts are self-executing agreements that operate autonomously on the Blockchain without human intervention.
Dapps: Dapps are decentralized applications built on the Blockchain platform.
Blockchain 3.0 unlocks broader applicability across various domains, including:
Tailored to meet the demands of businesses, Blockchain 4.0 focuses on enhancing enterprise operational efficiency, including:
Blockchain 4.0 is considered the version with the greatest potential for application Currently, numerous businesses worldwide are beginning to implement Blockchain projects to boost operational efficiency.
Additional Blockchain versions also exist, such as:
Blockchain 5.0: This version concentrates on applying Blockchain in novel fields, including the metaverse, artificial intelligence, etc.
Blockchain 6.0: This version focuses on developing new Blockchain functionalities, such as scalability, security, etc.
Blockchain technology is continuously evolving and being applied in diverse domains With its remarkable advantages, Blockchain is anticipated to reshape the operations of various industries in the future.
What is Blockchain?
Blockchain is a chain-block technology that allows the safe transmission of data based on an extremely complex encryption system, similar to a company's accounting ledger, where money isclosely monitored and record every transaction on the peer- to-peer network.
Each block contains information about the creation time and is linked to the previous block, along with a time code and transaction data Once data is accepted by the network, there is no way to change it Blockchain is designed to prevent fraud and alteration of data.
Blockchain structure
The specific structure of the blockchain consists of two main components: blocks and chains.
A block is a unit of data stored in the blockchain Each block contains the following information:
Previous hash: This is a unique string of characters generated from the data of the previous block It helps link blocks together into a chain.
Current hash: This is also a unique string of characters generated from the data of the current block It helps protect the data in the block and prevent data from being changed.
Data: This is the actual data stored in the block, such as transaction information, asset information, etc.
Timestamp: This is the time the block was created.
Nonce: This is a random number used to generate the hash of the current block.
A chain is a collection of blocks linked together by hashes The blockchain is always expanding as new blocks are created.
The blockchain structure gives it several important properties, including:
Decentralization: Blockchain data is stored on multiple computers in the blockchain network This helps prevent data control by a specific individual or organization.
Transparency: Everyone in the blockchain network can access and view blockchain data This helps ensure data transparency.
Immutability: Blockchain data is protected by hashes Changing data in a block will change the block's hash This makes it very difficult to change blockchain data.
How blockchain work
Blockchain works on a network of computers that are connected Every computer in the network has a copy of the blockchain, and new transactions are added to the blockchain by these computers.
When a new transaction is made, it is sent to all the computers in the network These computers verify the transaction using cryptography If the transaction is valid, it is added to the blockchain.
To add a new block to the blockchain, a computer in the network must solve a mathematical problem The first computer to solve this problem is allowed to add the new block to the blockchain and receive a reward.
Introduction to the different types of blockchains in English
There are four main types of blockchains: public blockchains, private blockchains, consortium blockchains, and hybrid blockchains Each of these platforms has its own set of benefits, drawbacks, and ideal use cases.
Public blockchains are the first and most popular type of blockchain They are designed to be permissionless, meaning that anyone can join the network, including those without any access controls Public blockchains use a consensus algorithm called proof-of- work (PoW) to validate transactions In PoW, nodes in the network compete to add new blocks to the blockchain The node that solves a mathematical puzzle first is rewarded with cryptocurrency
The advantages of public blockchains include:
Transparency: All transactions on a public blockchain can be viewed by anyone.
Security: Transactions on a public blockchain are protected by strong cryptography.
Decentralization: Public blockchains are not controlled by any single individual or organization.
The drawbacks of public blockchains include:
Efficiency: Public blockchains can be slow and expensive to use.
Security: Public blockchains can be vulnerable to network attacks.
Private blockchains are permissioned blockchains, meaning that only authorized participants can join the network Private blockchains are often used by businesses or organizations to store sensitive data Private blockchains do not use PoW, but instead use other consensus algorithms, such as proof-of-authority (PoA) or proof-of-stake (PoS).
The advantages of private blockchains include:
Efficiency: Private blockchains can be faster and cheaper to use.
Security: Private blockchains can be more secure than public blockchains.
The drawbacks of private blockchains include:
Transparency: Transactions on a private blockchain can only be viewed by authorized participants.
Decentralization: Private blockchains are controlled by a group of individuals or organizations.
Consortium blockchains are a hybrid of public and private blockchains Consortium blockchains allow nodes in the network to communicate with each other, even if they belong to different networks Consortium blockchains are often used to connect different systems, such as accounting systems or data storage systems.
The advantages of consortium blockchains include:
Interoperability: Consortium blockchains allow different systems to communicate with each other.
Security: Consortium blockchains can be more secure than public blockchains. The drawbacks of consortium blockchains include:
Complexity: Consortium blockchains can be more complex to deploy and manage.
Hybrid blockchains are a combination of public and private blockchains Hybrid blockchains allow nodes in the network to choose how to participate in the network Nodes can choose to participate in the public blockchain or the private blockchain, depending on their needs.
The advantages of hybrid blockchains include:
Flexibility: Hybrid blockchains allow nodes in the network to choose how to participate in the network.
Security: Hybrid blockchains can be more secure than public blockchains.
The drawbacks of hybrid blockchains include:
Complexity: Hybrid blockchains can be more complex to deploy and manage.
Versions of Blockchain technology
Blockchain technology has evolved through various stages, each with its own characteristics and applications It can be divided into four main versions:
This version emerged with the introduction of Bitcoin in 2009 Bitcoin is a digital currency that utilizes Blockchain technology to store and verify transactions Blockchain 1.0 exclusively focuses on applications related to money and payments.
Building upon Version 1.0, Blockchain 2.0 introduces new features to expand its applicability This version centers on the financial and market sectors, including:
Blockchain 3.0 further develops the functionalities of Version 2.0, incorporating additional features like:
Smart contracts: Smart contracts are self-executing agreements that operate autonomously on the Blockchain without human intervention.
Dapps: Dapps are decentralized applications built on the Blockchain platform.
Blockchain 3.0 unlocks broader applicability across various domains, including:
Tailored to meet the demands of businesses, Blockchain 4.0 focuses on enhancing enterprise operational efficiency, including:
Blockchain 4.0 is considered the version with the greatest potential for application Currently, numerous businesses worldwide are beginning to implement Blockchain projects to boost operational efficiency.
Additional Blockchain versions also exist, such as:
including the metaverse, artificial intelligence, etc.
Blockchain technology is continuously evolving and being applied in diverse domains With its remarkable advantages, Blockchain is anticipated to reshape the operations of various industries in the future.
BLOCKCHAIN FEATURES
Decentralization
Blockchain is not controlled by any agency or organization at all, but it operates independently based on authentication algorithms and nodes to ensure decentralization This decentralization makes the blockchain transparent and highly resistant to fraud.
Distribution
The blockchain network is maintained by nodes in the system across the globe When a new transaction is added to the blockchain, it is transmitted to nodes in the network for verification and added to the blockchain This process creates a dispersion of computing power, which increases the stability and reliability of the system to ensure better results.
Immutability
Ensures that the information on it cannot be altered after it has been confirmed and added to the blockchain Each block on the blockchain has a hash that represents its contents and the hash of the previous block Any change in the contents of the block will alter the hash, and this will cause the invalidity of the block and the entire chain from then on This creates unmodifiability and reliability for information on the blockchain.
Security
Blockchain secures information through cryptographic technology, to encrypt stored data into hashes All blocks in the blockchain have a hash of their own and the hash of the block before it So, changing or trying to tamper with the data will mean changing all the hash IDs And that's impossible
Every transaction on the blockchain is recorded in the blockchain and is public, auditable by anyone All parties involved in the network can view and check transaction information This transparency creates trust and verifiability for the blockchain network.
Trustlessness
The blockchain network works thanks to nodes that validate transactions automatically, based on algorithms including complex rules and cryptography Nodes do not need to trust each other, but only need to follow the blockchain's algorithm to operate and maintain the network.
THE BENEFITS OF BLOCKCHAIN
Improved traceability
Enhanced product traceability: Blockchain technology allows for the tracking of the supply chain, from raw material sourcing to production and distribution, each transaction is recorded, and a transparent, immutable record is created, making it possible to trace the origin and movement of product with precision.
Example: The food industry is a prime example of improved traceability through blockchain Walmart implemented a blockchain system for tracking its leafy greens In the event of a food safety issue or recall, they can quickly identify the source of contamination, reducing the scope of the recall and protecting consumers.
Enhanced Transparency and Visibility
Real-time Data Access: Blockchain provides real-time access to data and documents for all stakeholders This transparency enables participants to monitor the status and progress of products, orders, and shipments at any point in the supply chain.
Example: IBM’s Food Trust network is a collaborative platform involving major food companies It uses blockchain to enhance transparency and traceability in the food supply chain Consumers can scan a QR code on a product to access information about its journey, including when and where it was harvested and processed This transparency builds trust with consumers and ensures the authenticity of the product.
Increased Efficiency and Cost Reduction
Reduced Manual Processes: Blockchain automates many supply chain processes, reducing the need for manual data entry and reconciliation This automation leads to fewer errors, quicker processing, and cost savings.
Smart Contracts: Smart contracts, self-executing agreements written in code, can automate and enforce contract terms, reducing the need for intermediaries and ensuring that conditions are met.
Example: The shipping and logistics industry benefits from increased efficiency through blockchain Maersk and IBM implemented a blockchain platform for tracking shipping containers.
Smart contracts within the platform automatically trigger actions when specific conditions are met, such as releasing payment to a carrier upon the successful delivery of goods This reduces administrative work and minimizes disputes.
Enhanced Security and Trust
Immutable Records: Once data is recorded on a blockchain, it is extremely difficult to alter This immutability provides a high level of data security and trust in the accuracy of the information.
Secure Transactions: Cryptography and consensus mechanisms used in blockchain ensure that transactions are secure and tamper-proof.
Example: In the diamond industry, Everledger uses blockchain to create a secure and transparent record of each diamond's journey from the mine to the consumer This not only reduces the risk of diamond theft but also ensures that consumers are purchasing genuine, conflict- free diamonds, thereby increasing trust in the industry.
Case Studies and Examples
IBM Food Trust: As mentioned earlier, this initiative uses blockchain to enhance transparency in the food supply chain It involves major food companies like Walmart, transactions For example, Singapore Exchange Limited, an investment corporation that provides financial transaction services across Asia, uses blockchain technology to build a more efficient interbank settlement account By adopting Blockchain they have solved , many challenges, including batch processing and manual reconciliation of thousands of financial transactions.
Asset management: Blockchain can track, verify, and manage ownership of assets, real estate, and property paperwork For example, the company Maersk, a leading shipping company in the container industry Maersk has implemented a blockchain platform called TradeLens.This application in a company's asset management will bring transparency, safety, and efficiency to the entire asset management process, from location and ownership tracking, to maintenance and upkeep, as well as in related transactions.
Traceability: Blockchain can provide transparency and verification of the origin of provenance and quality of food products from farm to store Each time a transition product is created, information about the place of manufacture, date of picking or target, processing method and operation is recorded on the blockchain.
Contract management: Blockchain can automate and ensure contract integrity through tokenized clauses and automatically enforced Example: Ccompany Walmart is a leading global retail company They have applied blockchain technology to manage contracts and track the provenance of agricultural products.
Data Management: Blockchain can safely and securely store and share medical data, providing privacy and control to patients For example, Medicalchain - a blockchain- based health technology company They provide a blockchain platform that enables secure and patient-controlled management and sharing of medical data.
Salaries and payments: Blockchain can be used to make payroll payments and employee-related transactions quickly, transparently, and securely This helps reduce reliance on intermediaries and builds trust between employers and employees.
Smart contracts: Blockchain enables the creation and execution of smart contracts, automatically identifying, processing, and paying insurance claims, increasing transparency and reducing reliance on third parties.
Distributed Ledger: Blockchain utilizes a distributed ledger to store transaction information, ensuring integrity and transparency, and enhancing the ability to verify information in the insurance industry.
Level of decentralization Highest Lowest Average Average
Proof-of- authority (PoA) Depending on
Access rights Open to all
Limited to a specific group of people
Limited to a specific group of people
Combination of open and limited
Security Tall Lower Lower Depending on
Transparency Tall Lower Lower Depending on
Efficiency Lower Higher Higher Depending on
Scalability Lower Higher Higher Depending on
Suitable for applications that need high transparency and security, such as cryptocurrencies, financial transactions, supply chains
Suitable for applications that need high security, such as government, military applications
Suitable for applications that need a combination of security and efficiency, such as business applications
Suitable for applications that need high flexibility, such as applications with varying requirements for security,efficiency, and scalability
REPORTING TASKS STT Full Name Contents of the subdivision leader
(Section 1) Team leader assigns work, makes slides, looks up information images
(Section 2) Learn, look up images and edit and summed information
3 Vo Thi Thu Loc (Section 3) Lookup, search and contribute image, summarized information
4 Tran Nhat Trinh (Section 4) Synthesise word and add image information
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BLOCKCHAIN APPLICATIONS IN MANY FIELDS
Supply chain management
Traceability: Blockchain can provide transparency and verification of the origin of provenance and quality of food products from farm to store Each time a transition product is created, information about the place of manufacture, date of picking or target, processing method and operation is recorded on the blockchain.
Contract management: Blockchain can automate and ensure contract integrity through tokenized clauses and automatically enforced Example: Ccompany Walmart is a leading global retail company They have applied blockchain technology to manage contracts and track the provenance of agricultural products.
Medical Health
Data Management: Blockchain can safely and securely store and share medical data, providing privacy and control to patients For example, Medicalchain - a blockchain- based health technology company They provide a blockchain platform that enables secure and patient-controlled management and sharing of medical data.
Salaries and payments: Blockchain can be used to make payroll payments and employee-related transactions quickly, transparently, and securely This helps reduce reliance on intermediaries and builds trust between employers and employees.
Smart contracts: Blockchain enables the creation and execution of smart contracts, automatically identifying, processing, and paying insurance claims, increasing transparency and reducing reliance on third parties.
Distributed Ledger: Blockchain utilizes a distributed ledger to store transaction information, ensuring integrity and transparency, and enhancing the ability to verify information in the insurance industry.
Insurance
Smart contracts: Blockchain enables the creation and execution of smart contracts, automatically identifying, processing, and paying insurance claims, increasing transparency and reducing reliance on third parties.
Distributed Ledger: Blockchain utilizes a distributed ledger to store transaction information, ensuring integrity and transparency, and enhancing the ability to verify information in the insurance industry.
TYPES OF BLOCKCHAIN
Level of decentralization Highest Lowest Average Average
Proof-of- authority (PoA) Depending on
Access rights Open to all
Limited to a specific group of people
Limited to a specific group of people
Combination of open and limited
Security Tall Lower Lower Depending on
Transparency Tall Lower Lower Depending on
Efficiency Lower Higher Higher Depending on
Scalability Lower Higher Higher Depending on
Suitable for applications that need high transparency and security, such as cryptocurrencies, financial transactions, supply chains
Suitable for applications that need high security, such as government, military applications
Suitable for applications that need a combination of security and efficiency, such as business applications
Suitable for applications that need high flexibility, such as applications with varying requirements for security,efficiency, and scalability
REPORTING TASKS STT Full Name Contents of the subdivision leader
(Section 1) Team leader assigns work, makes slides, looks up information images
(Section 2) Learn, look up images and edit and summed information
3 Vo Thi Thu Loc (Section 3) Lookup, search and contribute image, summarized information
4 Tran Nhat Trinh (Section 4) Synthesise word and add image information
Nguyễn Thị Thanh Tâm Nguyễn Trần Khánh Phụng