Professional Documents
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Niranjan A Murthy 2018
Niranjan A Murthy 2018
https://doi.org/10.1007/s10586-018-2387-5 (0123456789().,-volV)(0123456789().,-volV)
Abstract
Any online transaction that involves digital money is a bit of a challenge these days with the rising threats of hackers trying
to steal bank details posted online. This leads to the invention of various kinds of crypto-currency, Bitcoin being one of
them. The technology behind using the Bitcoin is popularly called as Blockchain. Blockchain is a digitized, de-centralized,
public ledger of all crypto-currency transaction/s. Blockchain tries to create and share all the online transactions, stored in a
distributed ledger, as a data structure on a network of computers. It validates the transactions using peer-to-peer network of
computers. It allows users to make and verify transactions immediately without a central authority. Blockchain is a
transaction database which contains information about all the transactions ever executed in the past and works on Bitcoin
protocol. In this analysis paper we discussed what is Blockchain?, SWOT analysis of BC, Types of BC and how
Blockchain works along with its advantages and disadvantages.
Keywords Blockchain Structure of Blockchain Types of Blockchain SWOT analysis Pros and cons of Blockchain
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further update the data as well which makes it (5) Immutable: Any records will be reserved forever,
transparent and trustworthy. and can’t be changed unless someone who has
(3) Open source most Blockchain system is open to control more than 51% node in the same time.
everyone, record can be check publicly and people (6) Secrecy Blockchain technologies solved the trust
can also use Blockchain technologies to create any problem between node to node, so data transfer or
applications they want. even transaction can be anonymous, we only need to
(4) Autonomy because of the base of consensus, every know the person’s Blockchain address to do so [1].
node on the Blockchain system can transfer or
The Structure of Blockchain: a block consists of the
update data safely, the idea is to trust form single
block header and the block body as shown in Fig. 1. In
person to the whole system, and no one can intervene
particular, the block header includes:
it.
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(i) Block version indicates which set of block vali- can help us understand the loopholes in the Blockchain
dation rules to follow. systems. The categorization of the bugs should be done in
(ii) Merkle- tree root hash the hash value of all the such a way that the most frequent bugs should be put under
transactions in the block. one category so that more work and effort could be put in
(iii) Timestamp current time as seconds in universal addressing that category. (B) How frequently are similar
time since January 1, 1970. bugs coming up in different Blockchain projects? The
(iv) nBits target threshold of a valid block hash. various Blockchain projects are developed as solutions to
(v) Nonce a 4-byte field, which usually starts with 0 different problems that work under different environments.
and increases for every hash calculation. Are there any bugs that come up under the different
(vi) Parent block hash a 256-bit hash values that point environments and technologies? If there is some frequent
to the previous block. occurrence of the bugs and they show similar trends across
projects then the categorization of these bugs becomes easy
The block body is composed of a transaction counter
based on their characteristics [7].
and transactions. The maximum number of transactions
Security and reliability ‘‘Software Security Guidelines
that a block can contain depends on the block size and the
span every phase of the software development lifecycle’’
size of each transaction. Blockchain uses an asymmetric
and ‘‘Software Reliability Engineered Testing is a testing
cryptography mechanism to validate and authenticate
method encompassing the whole development process’’.
transactions. Digital signature based on asymmetric cryp-
A Blockchain must guarantee data integrity and uniqueness
tography is used in an untrustworthy environment [2].
to ensure Blockchain based systems are trustworthy which,
in the case of BOS, is that of security-critical systems. In
particular, there is a need for testing suites for BOS. These
2 Related work
suites should include: Smart Contract Testing (SCT),
namely specific tests for checking that smart contracts
The Blockchain, originally implemented for the virtual
(i) satisfy the contractors’ specifications, (ii) comply with
crypto currency, Bitcoin, is a novel peer-to-peer approach
the laws of the legal systems involved, and (iii) do not
which links a sequence of transactions or events together in
include unfair contract terms. Blockchain Transaction
a way that makes them immutable [3].
Testing (BTT), such as tests against double spending and to
Blockchain is a transaction database which contains
ensure status integrity [8].
information about all the transactions ever executed in the
A Blockchain is simply a cryptographically verifiable
past and works on Bitcoin protocol. It creates a digital
list of data. One of the reasons for the enthusiasm around
ledger of transactions and allows all the participants on
the Blockchain is that databases do not have any crypto-
network to edit the ledger in a secured way which is shared
graphic guarantees of integrity, guarantees that are neces-
over distributed network of the computers [4].
sary for any database operating in an adversarial
The amount of data in our world is rapidly increasing.
environment [9].
According to a recent report, it is estimated that 20% of the
Information technology has become a critical innovation
world’s data has been collected in past couple of years.
in almost every industry. Those institutions or teams that
Facebook, the largest online social network, collected 300
can use technology correctly and effectively play a major
peta bytes of personal data since its inception. MIT Media
role in disrupting the status quo in a leadership position.
Lab provided a mechanism called ‘‘Decentralizing Pri-
Those that don’t keep up with technology generally do not
vacy’’ which could protect personal data. A Blockchain is
survive. The authors of this paper have identified the
something like a ledger in which all transactions have been
Blockchain technology as a catalyst for emerging use cases
recorded, and it is shared by the participants of a Bitcoin
in the financial and nonfinancial industries such as indus-
network [5].
trial manufacturing, supply chain, and healthcare [10].
Trust is the most important issue of the Blockchain. The
The architecture as shown in Fig. 2 contains two major
interactions between the nodes within the network ensure
parts: ULE (sensors and network) and the cloud platform
that trust is achieved. The participants of Blockchain net-
based on BC. The system is composed of connected
work rely on the Blockchain network itself rather than
devices and sensors, and the collector that collect data.
relying on trusted third-party organizations to facilitate
These elements are connected to the internet to transfer
transactions. These five properties (immutability, non-re-
data securely to the Ubiquitous-IoT platform for analysis,
pudiation, integrity, transparency, and equal rights) are the
and processing. It allows the groups of students to access
main properties supported in existing Blockchains [6].
securely to the services via integrated cloud platform based
Research Questions (A) How to categorize the bugs that
on BC. In a BC network, students use a consensus protocol
appear in Blockchain system? The answer to this question
to approve the ledger content. The cryptographic hashes are
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used to confirm the reliability of transactions. The con- without compromising security or limiting companies’ and
sensus protocol verifies that the shared ledgers are dupli- authorities’ ability to provide encrypted transactions. Our
cated, and eliminates the risk of unsecured transactions. platform enables this by combining a Blockchain with a
Obviously, collected data from devices are integrated with holomorphic encryption solution. Users are not required to
the private BC ledgers and ensures shared transactions trust any third-party and are always aware of the data that is
efficiently. The distributed architecture eliminates the being collected about them and how it is used. In addition,
requirement to centrally store data, and allows the decen- the Blockchain recognizes the users as the owners of their
tralization way. encrypted data. Companies, in turn, can focus on utilizing
In the Fig. 2 The combination of ubiquitous computing, data without being overly concerned about properly
IoT and BC that can be effective. BC provides a resilient securing and compartmentalizing issues [12].
distributed P2P system considering the possibility to Author illustrated a novel approach of personal docu-
interact with peers in an effective manner. The connected ment management using Blockchain technology
devices in ULE ecosystem are the elements of contact with PASS-Personal Archive Service System. Personal
students and teacher. Indeed, we believe that the continu- Archive Service System is exploiting the features from the
ation of BC integration using ubiquitous computing and Blockchain well. Whenever a subject would like to make a
IoT will present a substantial transformation of current trace of achievement or new characteristics, the subject can
ecosystems. It enhances the next generation of IoT appli- archive it right away rather than waiting for an inquisitor
cations regarding the features of cryptographic, security, later on. The opportunity for such application is pervasive.
and decentralized model that can completely change the It can be used in online applications as well as other
organization of our economic and scientific activities [11]. applications like employment and promotion. It eliminates
Transaction data should not be trusted in the hands of a third party completely yet keeps its anonymity and
third-parties, where they are susceptible to steals and accountability [13].
misuse. Instead, users should own and control their data
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Blockchain technology, as introduced with Bitcoin, that have been executed and shared among participating
offers an open, secure and distributed transaction ledger parties. Each transaction in the public ledger is verified by
(ODL). As realizations of the technology focus on imple- consensus of a majority of the participants in the system.
menting currency systems and are based on cryptographic Once entered, information can never be erased. The
primitives, they are known as crypto-currencies. The basic Blockchain contains a certain and verifiable record of every
idea behind the design is facilitating decentralized con- single transaction ever made. Beyond currency, the
sensus, that is, making it possible for a network of Blockchain can be used in smart contracts, record keeping,
unknown participants to jointly decide on a global view ID systems, cloud storage and many other areas [17].
and ordering of transactions. Transactions are grouped in The Blockchain technology is an enabler that makes
blocks and in each round, a participant is elected to propose many processes and transactions services more transparent,
a valid block [14]. decentralized, secure and democratic without the need of a
The difficulties of adopting BC Technology to electronic third-party organization in the middle. There is no doubt
government in China: The Cost of Establishing a New that the role that Blockchain plays to be implemented as a
Blockchain-based Platform, The Long-term Preservation of Digital Identity method, is crucial in the near future to
Blockchain Platform Records, The Information Security of authenticate citizens and prove their identities for the
Blockchain Technology, Management Responsibility of bunch of digital services that currently exist in this inter-
the Blockchain Platform, The solution is: Standardization, connected world. Blockchain in this area could help to
Collaboration, Management System, and Security [15]. improve the way that society views identity privacy and
Blockchains have risen to prominence in recent years security. It will positively impact in different domains that
with the introduction of crypto currencies. As a technology, a smart city environment interacts, such as; banking and
however, they support a wider range of use cases. payment, population growth forecasting, healthcare medi-
A Blockchain system can be thought of as an append-only, cal records, voting, digital services of governmental oper-
public ledger that keeps track of transactions made by ations, financial services and many other scenarios [18].
participants. In most cases, these transactions relate to In Fig. 3 it is clear that day by day in the market people
some (virtual) asset, and often involve moving quantities of moving towards Blockchain technology in 2016 Block-
the asset from one account to another. Every participant in chain Revenue by Region below $5000 and in the expected
the Blockchain system holds a local copy of the ledger and year 2025 it will be $20,000.
runs a network client that relays transactions to the entire The rise of big data age in the Internet has led to the
network. The client can also inject new transactions into explosive growth of data size. However, trust issue has
the network [16]. become the biggest problem of big data, leading to the
A Blockchain is essentially a distributed database of difficulty in data safe circulation and industry development.
records, or public ledger of all transactions or digital events The Blockchain technology provides a new solution to this
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(b) Information gathering and storage of the food supply blockchain-based approaches to verify whether the
chain from planting (breeding) to the whole process received alert-information is unaltered or not.
of consumption.
As Blockchains were originally designed for crypto-
(c) Can be transferred to the government regulatory
currencies, we have to avoid the situation that ‘‘Blockchain
platform through the block chain technology.
is a solution looking for a problem’’. Indeed, we have to
These requirements match with the technological char- still focus on our traditional solutions to some issues and
acteristics of the blockchain which stores information on challenges, but keep an eye on such emerging technologies.
each transaction. Though each private key is produced and It means that a balance should always be made in a case-
released by Information department of the Chinese by-case scenario [30].
Government, Ministry of Agriculture is given the access to One of the challenges in P2P design is a fair scheduling
the record of the data. This information would provide the and a general protection of the whole cluster against abu-
basis for supervision, food recall and prior warning. sive or malfunctioning nodes. Algorithms used in a single-
Therefore, we can see that the application of Blockchain master or multi-master clusters do not work anymore. We
technology meets with the government’s demand for food have designed a multi-level system based on one of the
supply chain system [26, 27]. main principles of crypto-currencies to achieve. Block-
Electronic Health Records (EHRs) are entirely con- chain is a key component of contemporary crypto-curren-
trolled by hospitals instead of patients, which complicates cies such as Bitcoin, Lite-coin and Ethereum. Blockchain
seeking medical advices from different hospitals. Patients solves the main problem of digital assets—the double-
face a critical need to focus on the details of their own spend problem. Each digital asset such as file, email or an
healthcare and restore management of their own medical array can be copied and a spectator can not determinate the
data. The rapid development of Blockchain technology origin and the copy without a 3rd party. In P2P networks
promotes population healthcare, including medical records there is no such authority. The ownership of an asset is
as well as patient-related data. This technology provides recorded in a public ledger. This ledger is confirmed by the
patients with comprehensive, immutable records and whole community of the system, so the trust is not needed
access to EHRs free from service providers and treatment between two parties, but between one party and the whole
websites [28, 29]. system. The basic principle is based on asymmetric cryp-
As an emerging technology, blockchains definitely will tographic functions. Each transaction is signed by its
keep evolving, because of its disruptive capability across owner. In order to be a valid transaction of the public
various industries and domains. The technology is expected ledger, the transaction must be hashed and the hash must be
to validate itself with more proof-of-concept implementa- included in the next transaction [30].
tions. In the field of intrusion detection, Blockchain tech- Bitcoin is digital assets infrastructure powering the first
nology can make positive impacts, but its major worldwide decentralized cryptocurrency of the same name.
applications are more focused on the following aspects, in All history of Bitcoins owning and transferring (addresses
terms of a trade-off between benefit and cost. and Transactions) is available as a public ledger called
Blockchain. But real-world owners of addresses are not
• Data sharing by design nature, blockchains are suit-
known in general. That’s why Bitcoin is called pseudo-
able for handling the recording of events, medical
anonymous. However, some addresses can be grouped by
records, and transaction processing. As data manage-
their ownership using behavior patterns and publicly
ment is a big issue for a large distributed detection
available information from off-chain sources. Blockchain-
system or network, blockchains have a great potential
based common behavior pattern analysis (common spend-
to improve the performance through enforcing trust and
ing and one-time change heuristics) is widely used for
data privacy among collaborating parties.
Bitcoin clustering as votes for addresses association, while
• Alert exchange Alexopoulos et al. already introduced
offchain information (tags) is mostly used to verify results.
how to use blockchains to secure the alerts generated by
Here Represent’s the use off-chain information as votes for
various nodes and ensure only truthful alerts would be
address separation and to consider it together with Block-
exchanged. Due to the lack of real system applications,
chain information during the clustering model construction
it is an interesting and important direction for future
step. Both Blockchain and off-chain information are not
research studies.
reliable, and our approach aims to filter out errors in input
• Trust computation as mentioned above, some collabo-
data. A new Bitcoin address clustering algorithm is pro-
rative detection approaches (e.g., challenge-based
posed. Its difference from the existing ones is two-fold.
CIDN) utilize alerts to evaluate the trustiness of others,
Firstly, it uses for clustering not only Blockchain infor-
blockchains can thus provide a solution to enhance the
mation but also off-chain information from the Internet.
process of trust computation. For instance, designing
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Secondly, we treat certain off-chain data types as votes • Improved customer experience
against address union in clustering process. Such approach • Increased quality of products and services
allows avoiding significant part of erroneous cluster merges • Innovation In Almost Every Industry Especially
suggested by Blockchain based heuristics. Numerical Banking
experiments show that the proposed approach provides • Instantaneous settlements
reasonable clustering results outperforming approaches • KYC database
based solely on Blockchain data in terms of cluster • New Intermediaries
homogeneity [31]. • No reliance on rating agencies
• Opportunities In IoT
• Programmable control mechanisms
3 Swot analysis of blockchain • Smart contracts in insurance
• Speedup bank processes
SWOT analysis (or SWOTM matrix) is a short form for
(d) Threats
strengths, weaknesses, opportunities, and threats and is a
structured planning method that evaluates those four ele- • A lot of research needs to be done
ments of an association, project or commerce endeavor etc. • Disappearance of existing bank jobs
(a) Strengths • Govt. willingness to adopt
• High investments for implementations
• 100% transparency
• Huge regulatory impact
• Able to skip the intermediary
• Hype
• Auditable trail
• Legal/regulatory and compliance
• Business process efficiency and productivity
• Privacy and security
• Decentralized approach
• Time—consuming negotiations
• High quality and fool proof data
• Uncertainty about the impact
• Higher efficiency
• Lower cost
• Lower risk
• More secure 4 How Blockchain works?
• No reliance on third party
• Robustness (no SPOF) Someone requests a transaction
• Speed
(1) The requested transaction is broadcasted to P2P
• Transparency
network consisted of computers known as nodes.
• Trust in trustless networks
(2) Validation: the network of nodes validates the
• Unharmed privacy
transaction and user’s status using known
(b) Weaknesses algorithms.
(3) A verified transaction can include crypto currency,
• Access challenge
contracts, records or other information.
• Change Management
(4) Once verified, the transaction is linked to other
• Integration With Legacy Systems
transactions to create a new block of data for the
• Lack Of Standards
ledger.
• Low capacity and processing speed
(5) The new block is then appended to the existing
• Ownership challenge
Blockchain, in a way that is permanent and
• Recent technology (not 100% developed)
unalterable.
• Scalability
(6) The transaction is finally complete.
• Security against cyber criminals
• Storage Transactions are not valid until added to chain. Tam-
• Technology Maturity pering is immediately evident. The Blockchain is regarded
as safe as everyone in the network has a copy. The sources
(c) Opportunities
of any discrepancies are usually evident immediately
• Automations (Fig. 4).
• Business Process Optimisation
• Elimination of trust necessity
• Faster (international) payment transfers
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5 6
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5 Types of Blockchain
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(h) Faster transactions inter bank transactions can the two parties without any involvement of
potentially take days for clearing and final the third party, so transactions take place
settlement, especially outside of working quickly. In addition, the technology has
hours. Blockchain transactions can reduce the ability to manage smart contracts and
transaction times to minutes and are processed commercial actions automatically. There-
24/7 fore, this directly streamlines every pro-
(i) Lower transaction costs by eliminating third cess and remove the cost and time from the
party, intermediaries and overhead costs for transaction. For more information about
exchanging assets, Blockchains have the the same, you can read articles and blogs
potential to greatly reduce transaction fees. on reliable sites that how this technology is
(j) Blockchains can be used to getting utilized in different industries.
• Auditability on the Blockchain network,
• Reduce total cost of ownership Blockchain
each transaction detail is recorded subse-
stacks offer a robust and verifiable alter-
quently and it provides an audibility for
native to traditional proprietary stacks at a
the asset in between two parties. It is
fraction of the cost.
especially beneficial for the businesses in
• Manage system-of-record sharing Block-
which data source is needed in order to
chain technology makes it possible to give
authenticate the assets. At present, the
various parties (e.g., clients, custodians
company Every ledger realized the benefit
and regulators) access to their own live
of Blockchain technology and used it to
copies of a shared system of record.
track the diamonds.
• Clear and settle transactions faster Block-
• Traceability in the Blockchain, tracking
chain technology can facilitate the transi-
goods in a supply chain is pretty easy and
tion from overnight batch processing to
advantageous too. The information related
intra-day clearing and settlement.
to component can communicated to and
• Create self-describing electronic transac-
from the new owner required for the
tions smart contracts can use Blockchain’s
possible action.
programming language to create context-
• Transparency transparency is one of the
aware transactions for complex arbitration.
major benefits of Blockchain to small,
For example, a credit default swap could
medium as well as large businesses. As
pay out automatically according to pre-
lack of financial and commercial trans-
agreed logic that watches market data
parency might result in bad business
feeds.
relations and commerce delays. So, in
(k) Business benefits many businesses can actu- order to provide transaction details against
ally utilize the Blockchain technology into the commercial construct, trust and trans-
new trading platform and get benefited. There parency need to be maintained in the
are numerous benefits of adopting this tech- process for a stable relationship instead of
nology into business. The major six benefits negotiation.
are given below: • Security on the Blockchain technology,
each transaction is recorded and verified in
• Efficiency as in Blockchain technology,
the network through complex crypto-
transactions are done directly in between
graphic problems. The information
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