COLLEGE OF CCI

DEPARTMENT
OF
INFORMATION
SYSTEMS
SEMINAR
ON BLOCK-
CHAIN
TECHNOLO
GY

NAME:MEBRATE GETNET
ID:1651/10
Submitted to Mr.Tilahun M.

Submission date: March 6/21/2021

Acknowledgment
First of all, I would like to say thank you to Almighty God for helping me through in my Seminar
project. A person is successful only when he grabs every opportunity in his way and works hard on
it. This is only possible when he is guided by somebody. I also got such an opportunity that was
to do a seminar for “Block-chain Technology”.

We would like to thank guide to Advisor Mr.Abdureman Abdi for sparing his precious time,
cooperating making suggestion and creative and guiding us through out. Working with him is a
good learning experience which will always be remembered. I also grateful to his sparing valuable
time and providing with the required material and information for study. Without his constructive
comments and valuable suggestions, this study could not have reached this stage.

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Abstract
This report focuses on explaining the block chain technology and its application Fields. I
distinguish between multiple types of block chains and explain the two biggest platforms, namely
Bitcoin and Ethereum. While introducing those two platforms we explain the most important
technology and algorithms used such as proof of work concept. Some of the security issues and
solutions are also covered. I conclude with some concrete Ethereum based applications that
demonstrate the usage of block chain technology beyond cryptocurrency and illustrate current
developments in this field.

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Table of contents
Contents
Acknowledgment...............................................................................................................................................i
Abstract.............................................................................................................................................................ii
1. Introduction...................................................................................................................................................1
2. General motivation........................................................................................................................................2
3. Goal of the paper...........................................................................................................................................2
4. Overview about the previous technology......................................................................................................2
5. Literature Review..........................................................................................................................................2
6. Detailed description about Blockchain Technology.....................................................................................3
6.1. Blockchain Origin and Genesis..................................................................................................................4
6.2. Blockchain Timeline and Trend.................................................................................................................5
7. How does a Blockchain work?......................................................................................................................5
8.Advantages & disadvantages of Block-chain technology..............................................................................7
8.1. Advantage..................................................................................................................................................7
8.2. Disadvantage..............................................................................................................................................8
9.Steps to develop a successful Block-chain application..................................................................................8
10. Blockchain features.....................................................................................................................................9
1.1. Application areas......................................................................................................................................10
1.2. Examples of Blockchain Technology......................................................................................................11
13. The Block-chain & Enhanced security.....................................................................................................12
13.1. Identity management..............................................................................................................................13
13.2. Intellectual Property Protection(IPP).....................................................................................................14
14. Evaluation of results..................................................................................................................................14
15. Conclusion................................................................................................................................................15
Reference........................................................................................................................................................17

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 1. Introduction
In the simplest terms, Block-chain can be described as a data structure that holds transactional
records and while ensuring security, transparency, and decentralization. A Block-chain is a
distributed ledger technology that is completely open to any and everyone on the network. Once
information is stored on a block-chain, it is extremely difficult to change or alter it.

Each transaction on a Block-chain is secured with a digital signature that proves its authenticity.
Due to the use of encryption and digital signatures, the data stored on the Block-chain is tamper
proof and cannot be changed. Block-chain technology allows all the network participants to reach
an agreement, commonly known as consensus. All the data stored on a Block-chain is recorded
digitally and has a common history which is available for all the network participants. This way,
the chances of any fraudulent activity or duplication of transactions is eliminated without the need
of a third-party.

In order to understand Block-chain better, consider an example where you are looking for an
option to send some money to your friend who lives in a different location. A general option that
you can normally use can be a bank or via a payment transfer application like PayPal. This option
involves third parties in order to process the transaction due to which an extra amount of your
money is deducted as transferring fee. Moreover, in cases like these, you cannot ensure the
security of your money as it is highly possible that a hacker might disrupt the network and steal
your money. In both the cases, it is the customer who suffers. This is where Block-chain comes in.
Instead of using a bank for transferring money, if we use a Block-chain in such cases, the process
becomes much easier and secure. There is no extra fee involved as the funds are directly
processed by you thus, eliminating the need for a third party. Moreover, the Block-chain
database is decentralized and is not limited to any single location meaning that all the
information and records kept on the Block-chain are public and decentralized. Since the
information is not stored in a single place, there’s no chance of corruption of the information by
any hacker.

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 2. General motivation
The need for decentralization is the key motivation behind the blockchain technology, and
decentralization is achieved by distributing the computation tasks to all the nodes of the blockchain
network. Decentralization solves several problems of traditional systems; the single point of failure
is one such problem.

3. Goal of the paper

The goal of blockchain is to allow digital information to be recorded and distributed, but not
edited.

4. Overview about the previous technology

When the first Bitcoin Genesis Block was mined in January 2009, most people had never heard of
blockchain a technology that has since become a global buzzword. But the concept was not the first
of its kind: It evolved as a form of distributed ledger technology (DLT), which has a rich past.

But not all DLTs are blockchains, and understanding the differences may help entrepreneurs and
business leaders determine which solution is best for them. “If one understands the differences, they
will be able to better understand if DLT is of potential use in a given application area and, if yes,
whether blockchain is the preferred method of distributed ledger organization,” says George
Giaglis, director of the Institute for the Future at the University of Nicosia.

5. Literature Review
This section will present the current literature and state of the art in the area of blockchain. This
literature overview have been gathered using both academic search engines such Google Scholar
and IEEExplore. The articles have been found on search and indexing terms such as: blockchain,
blockchain applications, blockchain survey, blockchain consensus, bitcoin, bitcoin survey, etc. The
articles found in these searches have been limited to only include the most cited articles, which for
example included articles with more than 70 citations as of December 2018 according to Google
Scholar.

 Bitcoin: A peer-to-peer electronic cash system

S. Nakamoto, 2008, [6], cited by 4707 As previously stated, this article and the usage of
blockchains as immutable ledgers can be seen as the origin of the blockchain technologies we see
today. It is in this paper the bitcoin and blockchain revolution started. Even though the paper was
published as a non peer reviewed white paper, it is one of the most cited works in the blockchain

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research area. The paper itself is short and does not include so many details. It primarily presents
the overall idea and structure. Details on the solution, the specific technologies, and the exact
properties on how the bitcoin system would be implemented is not included. Another interesting
note, is that Satoshi Nakamoto never mentions the term blockchain specifically in his paper. But
he does talk about chains of
blocks, proof-of-work chains, and lengths of chains.

 Blockchain: Blueprint for a new economy

M. Swan, 2015, [18] cited by 847
This book gives a good overview of the usage of blockchains and bitcoin as whole. As well as
outlines three different versions of blockchain. Blockchain 1.0, 2.0, and 3.0. Where 1.0 can be seen
as the currency, such as the original Bitcoin idea by Nakamoto. Where the blockchain is a method
for a cryptocurrency, which also incorporates its own generation of the cryptocurrency as
payments for the proof-of-work that has been done. Blockchain 2.0 is the next step into contracts.
Meaning that it can be used for so much more than just currency in the finance world. It can for
example be used in digital contracts, stocks, bonds, loans, smart contracts, smart properties, etc.
Finally, the textbook explains blockchain 3.0, which extends the applications beyond the finance
domain. Looking specifically into applications of government, health, science, literacy, culture and
art. Where the discussions regarding government blockchains are most important for this pre-
study. Including, but not limited to decentralized
governance services, blockchain passports, blockchain weddings, and voting.

 Blockchain revolution: how the technology behind bitcoin is changing money, business,
and the world D. Tapscott, A. Tapscott, 2016, [21], cited by 439
This book is also well cited but has a quite different wiring perspective compared to the other
books and articles. This book focuses on the revolution that blockchain technology brings,
explaining the change, transformation, and digitization coming with blockchain technologies. The
book primarily explains this from a business and economics perspective, using many historical
quotes to put the blockchain revolution into historical context. But also highlight the importance of
individuals, technology, and economic forces. Finally, the book ends with a look into different
promises and perils of using the technology, including privacy, leadership, and future challenges.

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 6. Detailed description about Blockchain Technology
This section will provide an overview of the blockchain technology as a way to introduce the
theory and research area. A blockchain is an immutable ledger since once data have been added to
the chain it cannot be changed. This process is based on cryptographic hashes that overlap the
blocks and since it has this overlap, the data is chained together. Hence, the name blockchain, i.e. a
chain of blocks. These blocks can also contain additional information which then becomes
immutable as well. Which is the primary property that blockchain technology is used for.

Where the index and timestamp is only for the ordering. The data is the data that will be stored in
the blockchain and will become immutable once the blocks are chained together. The previous
hash is the link to the previous block. In the genesis block the previous hash is 0, otherwise it is set
to the hash of the previous block. The nonce is not mandatory of all types of blockchains, but it is
used to adjust the difficulty of the hashing. Basically, the final hash should have a predefined
number of leading zeroes to be accepted. Finally, the hash field is the hash of the entire block,
including the index, data, previous hash, nonce, etc. And it is this hash and the previous hash that
makes it into a chain. If any single piece of data is changed in any block, it can easily be detected
and the chain becomes broken. For example if a malicious user tries to change the data in a stored
block. For example a change in block 0 from ”Some Data” to ”Some Data!”, the resulting hash
will become something completely else and therefore not correspond to previous hash of the block
2. Hence, the change will easily be detected by all other users and the edited block will be
discarded. Thus, ensuring the immutability of the blockchain.

6.1. Blockchain Origin and Genesis

This background story and history of blockchain and bitcoin is based on the history told
references. The domain name bitcoin.org was registered in August 2008 and in October 2008 a
white paper authored by an author named Satoshi Nakamoto was posted to a cryptography mailing
list. The title of the white paper was Bitcoin: A Peer-to-Peer Electronic Cash System [6] and was a
detailed description of using a peer-to-peer network to create an immutable ledger. Published in
the form of a white paper, which means that it is a non scientifically peer-reviewed article. It was
simply made available on the Internet for people to read. In January 2009, the implemented bitcoin
network came into existence with Satoshi Nakamoto mining the genesis block of bitcoin (block
number 0), which also had a reward of 50 bitcoins. One of the first supporters, adopters,
contributor to the bitcoin blockchain and receiver of the first bitcoin transaction was a developer
named Hal Finney. Finney who received 10 bitcoins from Nakamoto in the world’s first bitcoin
transaction on 12 January 2009.

Other notable early supporters and developers were Wei Dai, Nick Szabo, and Gavin Andresen.
The author Satoshi Nakamoto is however presumed to be a pseudonym for what is yet an
unidentified person or persons. It is known that Nakamoto was responsible for creating the
majority of the official bitcoin software and was active in making modifications and posting
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technical information on the official bitcoin forums. However, the true identify is still unknown.
Probably made because the bitcoin creators were afraid of convictions and trials, especially in
USA. Since the U.S. Mint had informed in 2006 that the circulation of medallions such as the
Liberty Dollar as legal tender, is considered a federal crime and they had also seized a large
amount of liberty dollars in 2007 as well as made formal criminal charges against its inventor
Bernard von NotHaus in 2009. Meaning that the bitcoin inventors could easily face similar threats.
A number of people have been suspected to be Satoshi Nakamoto, including the previously
mentioned developers Wei Dai, Nick Szabo, and Hal Finney. But all have denied these
accusations. Nakamoto’s involvement with the bitcoin code development does not appear after
2010, and in April 2011 Nakamoto communicated with one of the other bitcoin contributors saying
that he had moved on to other things. But the bitcoin blockchain clearly states in the ledger that he
amassed over 980000 bitcoins for his mining efforts in the early days of bitcoin. Meaning that he
theoretically is one of the 250 most wealthiest persons in the world if he were to monetize these
assets . This is, however, very unlikely. Since if these bitcoins ever were to be monetized, his real
identity would become known and the actual bitcoin price would drop significantly because of the
unstable market forces this would create. Hence, the real identity of Satoshi Nakamoto still
remains unknown and that is probably for the best for ensuring the credibility and stability of the
bitcoin market.

Most of Satoshi Nakamotos emails, forum posts, etc. have been saved for historical and archival
purposes Prior to the release of bitcoin there were a number of related digital cash technologies
published. For example the issuer based ecash protocols by David Chaum and Stefan Brands.
Hashcash, a proof-of-work scheme for spam control by Adam Back . Wei Dai’s b-money and Nick
Szabo’s bit gold. As well as, Hal Finney’s reusable proof of work using hashcash as its proof of
work algorithm. One can also argue that the AbsoluteProof system can also be seen as a very early
blockchain, since it is based on basic mechanics by Haber and Stornetta. In which AbsoluteProof
have published a hash of their AbsoluteProof database every week since 1995 in the New York
Times magazine, ensuring the immutability of their database.

6.2. Blockchain Timeline and Trend

In this report we have also studied the term blockchain, its origin, usage, and appearance in media.
Especially in the context of Sweden and the usage of the term blockkedja in Swedish media. From
what we can find, the first usages of the term bitcoin in Swedish media was in may 2011 by Nanok
Bie. Publishing a series of articles in SVT nyheter on how this new cryptocurrency works and its
threat to the existing finance systems. Today, Nanok Bie still writes and is involved in articles
related to Bitcoin since he is the editor-in-chief for the news section of the official bitcoin.com
website. The first usages of the term blockchain and blockkedja in Swedish media is made as a
series of articles in may 2013 by journalist
Anders Lotsson at International Data Group (IDG) . These articles were written for the Computer
Sweden newspaper, but they were also published in other IDG newspapers and on different IDG

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websites. Since this, there has been numerous other publications made on the topic in Swedish
media.

7. How does a Blockchain work?

figure 1: how does the block –chain work

A Block-chain is a chain of blocks that contain data or information. Despite being discovered
earlier, the first successful and popular application of the Block-chain technology came into
being in the year 2009 by Satoshi Nakamoto. He created the first digital crypto-currency called
Bit-coin through the use of Block-chain technology. Let’s understand how a Block-chain
actually works.

Each block in a Block-chain network stores some information along with the hash of its previous
block. A hash is a unique mathematical code which belongs to a specific block. If the
information inside the block is modified, the hash of the block will be subject to modification
too. The connection of blocks through unique hash keys is what makes Block-chain secure.

While transactions take place on a block-chain, there are nodes on the network that validate these
transactions. In Bit coin block-chain, these nodes are called as miners and they use the concept of
proof-of-work in order to process and validate transactions on the network.

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 In order for a transaction to be valid, each block must refer to the hash of its preceding block.
The transaction will take place only and only if the hash is correct. If a hacker tries to attack The
network and change information of any specific block, the hash attached to the block will also
get modified.

The breach will be detected as the modified hash will not match with the original one. This
ensures that the Block-chain is unalterable as if any change which is made to the chain of blocks
will be reflected throughout the entire network and will be detected easily.

In a nutshell, here’s how Block-chain allows transactions to take place:

 A Block-chain network makes use of public and private keys in order to form a digital
signature ensuring security and consent.
 Once the authentication is ensured through these keys, the need for authorization arises.
 Block-chain allows participants of the network to perform mathematical verification and
reach a consensus to agree on any particular value.
 While making a transfer, the sender uses their private key and announces the transaction
information over the network. A block is created containing information such as digital
signature, time stamp, and the receiver’s public key.
 This block of information is broadcasted through the network and the validation process
starts.
 Miners all over the network start solving the mathematical puzzle related to the
transaction in order to process it. Solving this puzzle requires the miners to invest their
computing power.
 Upon solving the puzzle first, the miner receives rewards in the form of Bitcoins. Such
kind of problems is referred to as proof-of-work mathematical problems.
 Once the majority of nodes in the network come to a consensus and agree to a common
solution, the block is time stamped and added to the existing block-chain . This block can
contain anything from money to data to messages.

After the new block is added to the chain, the existing copies of Block-chain are updated
for all the nodes on the network.

8. Advantages & disadvantages of Block-chain technology

8.1. Advantage
 Disinter-mediation :The core value of a Block-chain is that it enables a database to be
directly shared without a central administrator. Rather than having some centralized
application logic, Block-chain transactions have their own proof of validity and

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 authorization to enforce the constraints.
 Empowered users : Users are in control of all their information and transactions.
 High quality of data :Block-chain data is complete, consistent, timely, accurate, and
widely available.
 Process integrity :Users can trust that transactions will be executed exactly as the protocol
commands removing the need for a trusted third party.

8.2. Disadvantage
 Performance :Because of the nature of block-chain, it will always be slower than
centralized databases. When a transaction is being processed, a Block-chain has to do all
the same things just like a regular database do, but it carries three additional burdens as
well:
 The size of the block :Each transaction or “block” added to the chain increases the size of
the database. As every node has to maintain the chain to run, the computing requirements
increase with each use. For large public implementations of Block-chain.
 Network speed/cost :Block-chain networks require Nodes to run. But as many of the
networks are new, they lack the number of Nodes to facilitate widespread usage. This
lack of resource manifests as:
 Higher costs- as Nodes seek higher rewards for completing Transactions in a Supply and
Demand scenario
 Slower transactions- as Nodes prioritize Transactions with higher rewards, backlogs of
transactions build up
 Wasteful :Every Node runs the Block-chain in order to maintain Consensus across the
block-chain. This gives extreme levels of fault tolerance, ensures zero downtime, and
makes data stored on the Block-chain forever unchangeable and censorship-resistant. But
all this is wasteful, as each Node repeats a task to reach Consensus burning electricity and
time on the way.
9. Steps to develop a successful Block-chain application

a. Identify the Problem and Goal: Before we go deeper into the Block-chain
development process, firstly it is essential to define a problem statement. At this
step, you should know what all problems a proposed solution is expected to solve.

b. Identify the Most Suitable Consensus(agreement) Mechanism: Since Block-

chain is a decentralized system it requires all the members of the network to
authenticate a transaction, this process is called consensus. For instance, Bit-coin
uses proof of work as a consensus mechanism.
c. Identify the Most Suitable Platform: Block-chain platforms help you build a
Decentralized Application without creating a separate Block-chain from scratch.
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 Most of these platforms today are open source hence your choice should depend
upon the consensus method and the problem you need to solve.
d. Designing the Architecture: Block-chain solution can exist on the cloud, in-house
or in a hybrid model. There are also multiple options for hardware and software
configuration like processors, operating system, memory and disk size etc.
e. Configuring the Application: Configuring a Block-chain application needs very
careful planning. There are many aspects of the platform that once configured are
very difficult to alter. Some of the key components include user permissions, asset
issuance and reissuance mechanism, atomic exchanges, consensus, key
management and structure, parameters, signatures, hand-shaking and address
formats.
f. Building the APIs: While you might get some pre-built APIs for development
purposes you’ll need to create most of them for distinct use cases. Some of the
common purposes for which an API is needed are:
g. Generating key pairs and addresses: Performing data authentication using digital
signatures and hashes and Storage and retrieval of data Management and trigger of
smart contracts relating to the issuance, payment, exchange, and retirement.
h. Design the Admin and User Interface: Now that you know what is to be planned
in the backed the last step is to create a UI and admin console for the application.
At this stage, the decisions need to be made regarding the front-end programming
language, servers and external database for the app.
i. Scaling the POC and Identifying Problems: In this approach instead of
developing the complete application, you develop a workable solution that is good
enough to prove your hypothesis. At this stage, you need to identify any
performance issues, latency, crashes, and storage or memory glitches. As and when
the problem arises, find a solution, implement it and move further. This way you
save critical resources that would otherwise be spent on scaling a meaningless
solution.

10. Blockchain features

The following features make the revolutionary technology of Block-chain stand out:

 Decentralized:-Block-chains are decentralized in nature meaning that no single person or

group holds the authority of the overall network. While every body in the network has the
copy of the distributed ledger with them, no one can modify it on his or her own. This
unique feature of Block-chain allows transparency and security while giving power to the
users.
 Peer-to-Peer Network:- With the use of Block-chain, the interaction between two parties
through a peer-to-peer model is easily accomplished without the requirement of any third
party. Block-chain uses P2P protocol which allows all the network participants to hold an
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 identical copy of transactions, enabling approval through a machine consensus. For
example, if you wish to make any transaction from
one part of the world to another, you can do that with Block-chain all by yourself within a
few seconds. Moreover, any interruptions or extra charges will not be deducted in the
transfer.
 Immutable:-The immutability property of a Block-chain refers to the fact that any data
once written on the Block-chain cannot be changed. To understand immutability,
consider sending email as an example. Once you send an email to a bunch of people, you
cannot take it back. In order to find a way around, you’ll have to ask all the recipients to
delete your email which is pretty tedious. This is how immutability works. Once the data
has been processed, it cannot be altered or changed. In case of the block-chain , if you try
to change the data of one block, you’ll have to change the entire Block-chain following it
as each block stores the hash of its preceding block. Change in one hash will lead to
change in all the following hashes. It is extremely complicated for someone to change all
the hashes as it requires a lot of computational power to do so. Hence, the data stored in a
Block-chain is non susceptible to alterations or hacker attacks due to immutability.
 Tamper-Proof:-With the property of immutability embedded in block-chain s, it
becomes easier to detect tampering of any data. Block-chains are considered tamper-
proof as any change in even one single block can be detected and addressed smoothly.
There are two key ways of detecting tampering namely, hashes and blocks. As described
earlier, each hash function associated with a block is unique. We can consider it like a
fingerprint of a block. Any change in the data will lead to a change in the hash function.
Since the hash function of one block is linked to next block, in order for a hacker to make
any changes, he/she will have to change hashes of all the blocks after that block which is
quite difficult to do.

1.1. Application areas

The following are some of the areas of application for Block-chain technology that TNO is
currently working on, together with details of the particular focus.

 Cloud storage:-Cloud storage will be another application that businesses can take
advantage of. Store, which at the time of this article is still in beta-testing, is one such
company that’s offering secure cloud storage while decreasing dependency.
 Voting:-Block-chain can also be applied in tallying votes such as in government
elections. Moscow had tested block-chains effectiveness in a local election. In the end, it
all boils down to integrity and transparency, which Block-chain can deliver. As a result,
instances of fraud and result manipulation can be lessened.
 Accounting:-Since Block-chain acts as a virtual ledger that is transparent and keeps
everything in order, it can also be used for accounting purposes, according to
Entrepreneur. Block-chain limits the chance of committing human errors which could

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 prove to be costly in the accounting industry.
 Logistics:-The application of Block-chain technology to facilitate data sharing across
multiple participants in logistics chains, enabling the Physical Internet.
 Agriculture and Food:-Application of Block-chain technology to the agri-food domain,
focusing on certification, and the use of Block-chain in agricultural supply chains.
Projects: Block-chain s in agri-food.
 Law Enforcement:-Strategic and tactic advice to law enforcement, as well as training
focused against criminal and other illegal use of Block-chain technologies. Projects: Dark
web Training.

 Industrial Data Space:-Research into future ICT-architectures for industrial actors to

share data in a controlled way. These architectures should allow an ‘economy of data’ to
emerge providing new business opportunities
 Energy supply:-Block-chain can be used to track renewable energy consumption (low-
cost power care). Energy companies such as Power peers in Netherlands and Energy in
Brooklyn have used this. In related industry news, Global Block-chain Technologies
Corprecently acquired Coin stream Mining Corp, which will give authority to the former
to manage the assets under the latter.

1.2. Examples of Blockchain Technology

I. Bitcoin: One of the more famous examples of Blockchain in action is Bitcoin. This
is a digital currency (commonly called a cryptocurrency). This entirely electronic
form of funds can be transferred securely directly from user to user without the need
for intermediaries - essentially there is no central bank or administrator needed.
Bitcoin is not the only currency based on Blockchain technology. Bitcoin Atom
(BCA) is a fork of Bitcoin and provides a truly decentralized way of exchanging
cryptocurrencies without trading fees and no exchange hacks.
II. Spotify: Following acquisition of Mediachain Labs in late 2017, Spotify are using a
decentralized database (blockchain technology) to correlate artists with license
agreements and tracks. Use of Blockchain in music looks to create a more
transparent record of rights ownership that will solve long-standing issues within the
industry, whereby artists and labels have not been fairly acknowledged.
III. Maersk: A cooperative Blockchain effort called TradeLens has been created by
Maersk and IBM. An open and neutral industry solution, it is underpinned by
Blockchain technology and supported by major industry players. The platform
promotes a more efficient, predictable and secure exchange of information across
the global supply chain. What’s more, TradeLens also sports a custom smart-
contract service for executing complex shipping orders with fewer middlemen.

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 IV. Matchpool: The Matchpool platform incentivizes ‘matchmakers’ to connect
members of communities such as Airbnb, Uber or dating services. Matchpool uses
cryptocurrency payments as a means for incentivizing the communities, to provide
value to the rest of the network. Guppy tokens, also known as GUP, are used to
make payments inside the Matchpool app. Guppy tokens can be purchased and
earned on the platform or traded on exchanges.
V. SimplyVital Health: The healthcare industry struggles to share data due to privacy
and security issues as well as the added cost of aligning different technologies.
Delivering better health data management, SimplyVital Health uses Blockchain to
allow patients and providers to access, share and even move their healthcare data.
The platform assures safe and secure coordination and communication with other
providers and creates a trusted audit trail.
VI. De Beers: Five leading diamond manufacturers have been working with De Beers
during the development of Tracr, the first Blockchain platform that securely tracks a
diamond across the full value chain from mine to cutter, polisher and right through
to the jeweler. Where once there was a trust and traceability risk, due to lack of
transparency, this industry platform will deliver peace of mind with auditability,
tamper-proof records and data authenticity.
VII. Circle: Circle is a peer-to-peer payments technology. With a suite of financial
products including Poloniex, Circle Invest and Circle Trade, the crypto finance
company operates Circle Pay as a bitcoin wallet service to buy and sell bitcoins.
Investments of some $250M USD are behind company, backed by the likes of
Goldman Sachs, Breyer Capital, Accel and more. Poloniex is one of the world’s
largest crypto exchanges. Unlike existing systems that are closed and proprietary,
Circle uses open, Blockchain-based standards and protocols to build products, such
as the remittance and messaging application that exists to serve the
VIII. Ubiquity: The Blockchain-secured platform for real estate recordkeeping, Ubiquity
provides a secure, user-friendly experience to record property information with a
clean record of ownership. The Patent Pending API and SaaS Platform allows a
client to input their data and store it on a blockchain of their choice, for an accurate
and secure audit of all records.
IX. MediLedger: Blockchain has the power to revolutionize the pharmaceutical
industry. The MediLedger Project is supported by a working group of members
including drug distributors and Big Pharma companies. The open, decentralized
network records an indelible record of transactions and data to demonstrate
regulatory adherence and improve security. Live in the U.S., MediLedger meets the
emerging needs of the prescription medicine supply chain by redefining the
potential of blockchain for the pharmaceutical sector.
X. Guts: A transparent ticketing ecosystem that relies on Blockchain technology,
GUTS eliminates ticket fraud and exorbitant prices. The service assures that tickets
are sold for a fair price and also makes the process simple and secure. The digital

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 smart ticket is powered by blockchain technology with a self-updating, rotating QR
code that claims to make fraud impossible. Ticket prices are locked and linked to a
unique mobile phone number.

13. The Block-chain & Enhanced security

By storing data across its network, the Block-chain eliminates the risks that come with data being
held centrally. Its network lacks centralized points of vulnerability that computer hackers can
exploit. Today’s internet has security problems that are familiar to everyone. We all rely on the
“username/password” system to protect our identity and assets online. Block-chain security
methods use encryption technology. The basis for this is the so-called public and private “keys”.
A “public key” (a long, randomly-generated string of numbers) is a users’ address on the block

chain. Bit-coins sent across the network gets recorded as belonging to that address. The “private
key” is like a password that gives its owner access to their Bit-coin or other digital assets. Store
your data on the Block-chain and it is incorruptible. This is true, although protecting your digital
assets will also require safeguarding of your private key by printing it out, creating what’s
referred to as a paper wallet.

13.1. Identity management

figure 3: identity attributes on block-chain

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 The world is getting more digitized with every passing day. Consider financial transactions
happening online for instance, you can easily login with your credentials and security pin in
order to access your funds. However, in this case, no one can ensure the identity of the person
taking out the money. If your username and password are hacked by someone, there’s no way to
secure your money.

The need of the hour is to have a system that manages individual identification on the web. The
distributed ledger technology used in block-chains offers you advanced methods of public private
encryption using which, you can prove your identity and digitize your documents. This unique
secure identity can work as a savior for you while conducting any financial transactions or any
online interactions on a shared economy. Moreover, the gap between different government bodies
and private organizations can be filled through a universal online identity solution that Block-
chain can provide.

13.2. Intellectual Property Protection(IPP)

Digital content or information can easily be reproduced and distributed with the aid of the
internet. Due to this, people from all around the world hold the power to copy, replicate and use
it without giving credits to the actual producer of the content. There are copyright laws to protect
such issues but in the current scenario, these laws aren’t appropriately defined according to
common global standards. Meaning that any law which is valid in the US might not stand true in
Australia.

Even if there’s any copyright applied to any intellectual property, people easily lose control over
their data and suffer on financial terms. With the aid of Block-chain technology, all the
copyrights can be stored in the form of smart contracts which will enable automation in
businesses along with the increase in online sale thus, eliminating the redistribution risk.
Block-chain for IP registry will help the authors, owners or users to get clarity of copyright.
Once they register their work online, they’ll own the evidence which will be tamper-proof. As
Block-chain is immutable in nature, any entry once stored on the Block-chain cannot be changed
or modified. The owner of the work will have the overall authority over the ownership as well as
the distribution of the content.

14. Evaluation of results

To measure the effectiveness of the blockchain-based online procurement system, a survey was
developed to collect empirical data from verified users of the site. Specifically, the survey was
structured to evaluate the site with the following variables:
1) Efficiency,
2) Responsiveness,

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3) Safety and Security, and
4) Aesthetics.

The survey was circulated to a total of 64 respondents and utilized the five-level Likert Scale. In
terms of efficiency, 54.89% of the respondents strongly agrees, 39.06% agrees, and 6.25% are
undecided that using an electronic and automated system from purchase posting up to the issuance
of contract is efficient. Meanwhile, 71.87% of the respondents strongly agrees, 25% agrees, and
3.13% are undecided that time is saved by using the online platform. 71.87% of the respondents
strongly agrees, 18.75% agrees, and 9.38% are undecided that the bidding processes were
conducted correctly and according to the indicated timeframe.

In terms of safety and security, the result shows that 82.81% of the respondents strongly agrees,
4.61% agrees, and 12.5% are undecided that blockchain notarization features for a tamper-proof
contract and bid receipt is useful in securing digital documents. 67.19% of the respondents
strongly agrees, 23.43% agrees, and 9.38% are undecided that the file auditing feature for checking
the legitimacy of the file is effective. 71.87% of the respondents strongly agrees, 25% agrees, and
3.13% are undecided that transactions conducted are completely immutable. 84.37% of the
respondents strongly agrees, and 15.63% agrees that the presence of a Know-Your-Customer
verification feature for checking the identity of the user is an effective way of ensuring that the
participants of the platform is legitimate.

15. Conclusion
The Block-chain (or distributed ledger technology) is a hot topic for discussion - it has the
potential to revolutionize domestic and international transactions - but of course also comes with
its disadvantages.

The Block-chain was invented in the context of the digital currency, Bit-coin (which by now, most
people have heard of). The Block-chain is a public ledger of all the Bit-coin transactions, which
continues to grow exponentially. Block-chain allows parties to transact securely in the absence of
a third party intermediary and it is clear that some businesses recognize the potential savings
connected to Block-chain or other distributed ledger technology.

So how does it work? Thousands of computers around the world are connected to the Block
chain, each holding a copy of the Block-chain history record. There is no official copy and no
computer is seen as more valid than another - they each mutually verify the ledger and there is no
centralized authority (such as a government or a bank). This decentralization is one of the
revolutionary aspects of the technology.
"Mining nodes" are computers connection to the Block-chain; they race to validate transactions,
create new blocks and have these accepted by the network. The successful computer (or owner

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 thereof) is rewarded in Bit-coin. Once accepted, each new block is sealed permanently and
contains a link to a chain of prior blocks, making the chain more secure. Blocks can be added to
the ledger but cannot be removed or corrupted.

The enhanced security of distributed ledger technology can benefit many - including (perhaps
surprisingly) banks and financial institutions. For example, the system can facilitate the effective
and secure transfer of ownership of digital assets (such as shares and bonds). Also, you can
permanently embed information and data (not just financial data) into the Block-chain. The open
ledger nature of the Block-chain means that financial institutions may be able to monitor a
customer's payment history more accurately, in the context of making a decision to lend. From a
customer's perspective, the Block-chain represents a more transparent system with the internal
mechanisms not subject to "behind closed door" processes.

There has been inevitable criticism about the public nature of the Block-chain and its
encroachment on individual privacy. Block-chain technology has also been criticized as a forum
for use in illegal activities, and in particular the transfer of the proceeds of crime. There has been
some question as to the potential applications of such technology beyond Bit-coin mining. Its
distributed and decentralized nature makes it inherently more cumbersome than some other
software’s especially as the "chains" grow in size. Organizations will have to give considerable
thought to where and how to apply the Block-chain. Nevertheless, the technology and/or its
derivatives represent a real opportunity to all those connected with the future of business.

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Reference

⮚ https://hackernoon.com/block-chain-technology-introduction-meaning-and-applications
edbd6759a2b2

⮚ https://www.ashfords.co.uk/news-and-events/general/the-block-chain

⮚ https://blockgeeks.com/guides/what-is-block-chain -technology/ 1. Introduction/Description of

Block-chain.

⮚ https://applicature.com/blog/overview-of-current-block-chain -applications- 1.2 Advantages &

disadvantages of Block-chain technology

⮚ https://block-chain technologycom.wordpress.com/2016/11/21/advantages-disadvantages/

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