Blockchain is bringing whole supply chain, from suppliers to consumers on same table.

Public Blockchain: Open to everyone to view and access

Private Blockchain: closed to a select group of authorizers, such as company, group of banks &
government agencies.

Hybrid public-private Blockchain: Those with private access can see all data, public can see only
selections. In others everyone can see all the data, but only some people have access to add data.

Example:

Property ownership of land: Government could allow everyone to view property records but reserve to
itself the exclusive right to update them.

1) The way it stores data (Decentralizing)

2) It creates trust in data (data cannot be manipulated)
3) No more intermediaries

Just like internet various complex policy questions around governance, international law, security &
economics.

SMART CONTRACTS

A smart contract is a set of computer code between two or more parties that run on the top of
a blockchain and constitutes of a set of rules which are agreed upon by the involved parties.
Upon execution, if these set of pre-defined rules are met, the smart contract executes itself to
produce the output.

How Bitcoin mining works:

1) A group of transactions are bundled into a memory pool (mempool).

2) Miners verify each transaction in the mempool is legitimate by solving a mathematical puzzle.
3) The first miner to solve the puzzle gets rewarded with newly minted bitcoin (the block reward)
and network transaction fees.
4) The verified mempool, now called a block, is attached to the blockchain.

Proof of Stake(PoS)

Proof of Stake systems have the same purpose of validating transactions and achieving consensus,
however, the process is quite different than in Proof of Work systems. With Proof of Stake, there is no
mathematical puzzle, instead, the creator of a new block is chosen in a deterministic way based on their
stake. The stake is how many coins/tokens one possesses. For example, if one person were to stake 10
coins and another person staked 50 coins, the person staking 50 coins would be 5 times more likely to
be chosen as the next block validator.
Another key distinction between Proof of Stake and Proof of Work is that under Proof of Stake there is
no new coin creation (mining). Instead, all of the coins are created in the very beginning. This means the
validators must be fully rewarded through transaction fees as opposed to newly minted coins.

Comparing Proof of Work and Proof of Stake

1) Cost and Energy: Proof of stake requires fraction of energy while Proof of work require huge
computational power for mining thus high energy.
2) Security: ‘Nothing at stake’ problem in PoS
3) Centralization:
As noted earlier, the role of mining in Proof of Work systems is becoming increasingly reserved
for large-scale operations.
Proof of Stake systems potentially provides a more fair solution. The amount of network control
a participant can gain in a Proof of Stake system is directly proportional to how much they
invest.

BLOCKCHAIN IN HEALTH CARE

When a data requires authorization by multiple people digitally signed blockchain can be used.
Blockchain would regulate the availability and maintain the privacy of health records. blockchain can
help in building a shared infrastructure by connecting users of wellness app, their medical records etc on
the same network.

Patient, provider, health insurer & government are on same page

BLOCKCHAIN CAN IMPLEMENT IN A DEPARTMENTAL STORE

Many times customers return defective products back to the E-commerce site, and it is even found true
that sometimes the whole batch of products received at the store are defective. In this situation, if the
products are still in the store, it is easy to replace them. But the worse scenario is when these are
distributed to local retailers and it is impossible to trace each and every product that is defective.
Blockchain with its open ledger system may provide the solution to these problems and help the store to
trace the location of every product at ease.

INSURANCE SECTOR
Insurance is typically a binding contract between the two parties. The contract involves series of steps
like paying premiums, filing a claim, investigation, and final settlement of claims.

Blockchain may change the way insurance businesses deal with their clients. They may well replace legal
contracts with a smart contract by embedding the distributed ledger mechanism. Digitally enabled
settlements in blockchain create transparency, efficiency and responsive in managing the claims of the
customers. Potentially these chained contracts help reduce fake claims.