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Intro BCT
Intro BCT
Intro BCT
2/8/22
Part–I: Introduction of Blockchain
Technology
Presentation
Outline Part-III: Case study on Cheque
clearance system using Blockchain
Technology
objectives of
this talk Open research problems solved through
Blockchain Technology
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Image Source: NPTEL
A possible solution…….
Blockchain
What is
Blockchain? Blockchain technology has become a global trend because of
bitcoin.
2/8/22
Example……
X = $100 X = $100
Public Ledger Public Ledger
of person P of person Z
Example……
$50
Public Ledger X = $100 X = $100 Public Ledger
of person X of person Y
X = $100 X = $100
Public Ledger Public Ledger
of person P of person Z
Example……
$50
Public Ledger X = $100 X = $100 Public Ledger
of person X X-->Y = $50 X-->Y = $50 of person Y
X = $100 X = $100
Public Ledger Public Ledger
of person P X-->Y = $50 X-->Y = $50 of person Z
Example……
$30
X = $100 X = $100
Public Ledger Public Ledger
of person P X-->Y = $50 X-->Y = $50 of person Z
Example……
$30
X = $100 X = $100
Public Ledger Public Ledger
of person P X-->Y = $50 X-->Y = $50 of person Z
Y-->P = $30 Y-->P = $30
Example……
$80
X = $100 X = $100
Public Ledger Public Ledger
of person P X-->Y = $50 X-->Y = $50 of person Z
Y-->P = $30 Not valid Transaction
Y-->P = $30
(due to insufficient fund)
Transaction Example
https://blockgeeks.com/guides/what-is-blockchain-technology/
People generally think they are the same because bitcoin was
the first ever application of blockchain.
Myth about
reduce the govt control over the transactions, and to simplify the
whole process without involvement of third party
Bitcoin and But, blockchain is a type of ledger that records all the
transactions and helps in P2P transactions.
Blockchain? Thus, blockchain acts as a bitcoin ledger and takes care all the
transaction of bitcoin.
2/8/22
Differences
between
Bitcoin and
Blockchain?
Simplified Blockchain
Blockchain and
It ensures different aspects:
Public Ledger
• Protocols for commitment: Ensure that every
valid transaction from the clients are committed
and included in the blockchain with in a finite
minute.
• Consensus: Ensures that local copies are
consistent and updated
• Security: Data need to be tamper proof. Note
that client may act maliciously or can be
compromised.
• Privacy and Authenticity: Data or transactions
belongs to various clients so privacy and
authenticity needs to be ensured.
• A Blockchain is “an open, distributed ledger that can
record transactions between two parties efficiently
and in a verifiable and permanent way”
• The keywords:
Formal • Open- Accessible to all users
Blockchain • Distributed or Decentralized: No single party
control
Definition • Efficient- Fast and scalable
• Verifiable- Everyone can check the validity of
the information
• Permanent- Information is persistent, means
when you entered any information in the
blockchain then no right to change it.
The primary function of a blockchain is to
certify the transactions between people.
Blockchain guarantees.
Without blockchain
• Person X would send his bank a request to send $100 of his account to his friends’ account.
The bank would check a few things like whether Person X actually has the $100. If
everything checks out the bank will send Person X $100 to Person B’s account.
With blockchain
• Person X creates a transaction of $100 to person Y and sends this transaction over the
Internet. This transaction is included in a block. All miners check whether this is a valid
transaction. If it is, Person Y has the $100 of Person X.
Example
With blockchain a centralized third party is no longer needed
it y'
hor
Financial Institute 'a ut
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so i
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loc kc
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ilt o
u
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Person X toc
u Person Y
p
Balancec=ry$100 Balance = $0
The
1 2 3
Miner Node: It is used Ledger Node: Used to Normal Node: Contains
for authenticating, store the history of the the full copy of the
authorizing and auditing transaction at any given complete blockchain.
the transactions instant of time
occurring in the network.
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Industry create a common technology platform and provide developers with
BaaS (Blockchain as service) services.
2.0: Smart Smart contract and the various financial services started for other application
of the blockchain technology around 2010.
Contract
(2014) The development with etheruem, hyperledger frameworks were introduced
Usage of smart contract in financial services and its assets were started
which were force behind the cryptocurrency.
2/8/22
It requires its users to perform some form
of work to participate
https://steemit.com/cryptocurrency/@rrrenaldooo/what-is-hybrid-blockchain-proof-of-work-and-proof-of-stake-explained
The purpose is the same of the proof of
work, but the process to reach the goal is
quite different.
Blockchain
finite graph with no directed cycle) data structures such as Byteball and
IOTA (Unique crypto-currencies).
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Based on the HashNet data structure
(2018) It offers services such as the public ledger and distributed in nature
of the database that represents in real time.
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It allows users to freely trade in any kind of
cryptocurrency in the chain through cross-chain
technology, and the transaction process can be
completed in just 3 seconds
Blockchain
5.0: Unique It has universal smart contract application technology
and can integrate the advantages of other chains to
Tech develop new sub-chains.
Blockchain
(Present) For example, blockchain developers can integrate
Ethereum’s smart contracts with EOS (blockchain
protocol) smart contracts as the underlying application
design to develop a new blockchain with faster speed
and lesser funding.
2/8/22
Generations
of Blockchain
b e h i n d
o l o g i e s
Tec h n a i n
B l o c k c h
51
The Fundamentals
• Cryptographically Secured Hash Functions
• Hash Functions: Map any sized data to a fixed size; Example H(x) = x % n,
where x and n are integers and % is the modular (remainder after division by
n) operations. x can be of any arbitrary length, but H(x) is within the range
[0,n-1].
• Cryptographically Secured:
• One way, given a x, we can compute H(x), but given a H(x), no
deterministic algorithm can compute x
• For two different x1 and x2, H(x1) and H(x2) should be different
(Means Blockchain is a data structure)
Cryptographic Hash Functions
D1 D2 D3 D4
Use of Merkle Trees
• Bayer, Harber and Stornetta used Merkle Tree in 1992 for timestamping
and verifying a digital document - improved the efficiency by combining
timestamping of several documents into one block
Source: https://www.statista.com/statistics/647523/worldwide-bitcoin-blockchain-size/
The Technology behind
What Bitcoin – The Blockchain
is Bitcoin?
A = ₹100 A = ₹100
₹ 50
A -> B ₹50 A -> B ₹50
A = ₹100 A = ₹100
The network
The wallet nodes validate the The miners
constructs the transactions based include the
transactions, sign on the existing transaction to the
using A’s private key, Blockchain, and next block to be
and broadcasts it to propagate the mined
the network transaction to the
miners
The Bitcoin Transaction Life Cycle – The Network
• Nick claimed that smart contracts can be realized with the help of a
public ledger
https://rubygarage.org/blog/guide-to-smart-contracts
They’re immutable (Unable to
Why Trust a change)
Smart
Contract?
They’re distributed
https://rubygarage.org/blog/guide-to-smart-contracts
Contracts in a Centralized Platform – Crowdfunding
World largest funding 1. You have an interesting project,
platform for creating but do not have sufficient money
projects to execute the project
supporters
Product team
Crowdfunding Platform using Smart Contracts
Supporters
Crowdfunding Platform using Smart Contracts
Crowdfunding Platform using Smart Contracts
supporters
Smart Contracts –Advantages
• Immutable: No party will be able to change the contract once it is
fixed and written to the public ledger (the Blockchain)
• Why Blockchain?
• The blocks are immutable
• The information is open – everyone can check and validate
Smart Contract Platforms
Smart Contract Platforms
Two models of Blockchain network –
Permission-less (an open environment)
and Permissioned (a close environment)
RecordId
ClinicianId
PatientID
Access Control List (ACL)
Participant Access Control
GrantAccess
Smart
contract GrantAccessToLab
(Logic)
RevokeAccess
RevokeAccessToLab
Clinician Identifier
Dashboard
for Clinician
Create new
clinician
Patient Identifier
Dashboard
for patient
Create new
patient
Medical record identifier
Dashboard
for Medical
Record
Create new
medical
record
For
submitting
transactions
Timestamp Transactions Type Data Owner
Immutable
Ledger -
cannot be
modified or
deleted
Data of Records
Details of
records
Peer Users Identifier Name
Dashboard
for Admin
Needs to enter participants ID
Issue new ID
Blockchain in Healthcare……
Blockchain is one of the greatest
inventions of this decade.
Source: https://www.accenture.com/au-en/insight-accenture-health-2017-consumer-survey
Microsoft partners ANZ
an
Bank of America on Fargo d US Ban
a kW
Blockchain to distr re buildi ells
“Transform” trade ibute ng a
d le
Finance corre platform dger
spon for
ussian esting using d ent b
A R nt is t Block anking
chain
r nme ain for e. .
e
gov lockch Storag
B ent
um
Doc
IOMT (Internet of
Medical Things)
Background
Financial institutions are shifted towards digital
wallets and payments, hence Trade becomes a
critical factor.
ra
traditional • Cheques are manually
system to CTS e
t m
n branches.
t e
sent via the postal
si C Sys
CTS…. blem
• This romay leads to the loss of physical
r p
instrument.
he
ot
An
All these limitations of traditional CTS
creates the need for secure and automated
system
Possible
Solution…
Integration of
Distributed and
Blockchain in
immutable.
clearing process.
Possible
Solution…. Leads to Increases the
efficiency of
transparency. cheque clearing
Blockchain enabled cheque will be presented to the users of
the bank which can operate in Consortium mode.
Blockchain
QR code is generated by encrypting bits with the issuer private
key K.
Enabled
Cheque
The wallet operates in Consortium mode and is
accessible to only the beneficiary.
Blockchain
Enabled
Cheque
The wallet operates in Consortium mode and is
accessible to only the beneficiary.
Cheque
The wallet operates in Consortium mode and is
accessible to only the beneficiary.
Cheque
PBFT provides a mechanism for the files to
communicate even after one of the files is
corrupted.
A blockchain cheque runs smart contracts
called Chaincode in Hyperledger Fabric.
Enabled
Cheque Chaincode separates various entities
participating in a financial transaction.
• Generation of QR Codes.
• Two-Factor authentication of the Blockchain
Enabled Cheque.
• Auto-Verification of OTP and transfer of Funds.
Smart vs. Intelligent
If you had a graph in which the x axis represented situations and the y
axis the outcome, the graph of the wise person would be high overall,
and the graph of the smart person would have high peaks.