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Applications of Blockchain in Cybersecurity Solutions is a comprehensive guide to blockchain applications in computer security. it presents the concepts and practical techniques that are useful in creating and designing decentralized cybersecurity software through 9 carefully edited chapters.
Topics covered in the book include
- An introduction to the use of blockchain technology in cybersecurity
- Attack surfaces in blockchains
- Anti-counterfeit solutions in blockchains
- blockchain based access control systems
- Multi-chain security deployment over smart contracts
- Cybersecurity as a decentralized service
The book is an essential primer for computer science students and researchers, and a quick reference for IT professionals on blockchain based cybersecurity.

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Seitenzahl: 272

Veröffentlichungsjahr: 2009

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Table of Contents
BENTHAM SCIENCE PUBLISHERS LTD.
End User License Agreement (for non-institutional, personal use)
Usage Rules:
Disclaimer:
Limitation of Liability:
General:
FOREWORD
PREFACE
List of Contributors
Introduction to Blockchain Technology
Abstract
INTRODUCTION
Block
Distributed Ledger
Smart Contract
Blockchain Protocol Stack
Tamper Resistant
CONSENSUS PROTOCOL
Proof of Work (PoW)
Proof of Stake (PoS)
Delegated Proof of Stake (DPoS)
Practical Byzantine Fault Tolerance (pBFT)
Proof-of-Burn (PoB)
Proof of Elapsed Time (PoET)
Proof of Identity (PoId)
Proof of Authority (PoAu)
IMPLEMENTATION OF BLOCKCHAIN
Creation of new Block
Generation of Blockchain
Testing
Verify the Integrity of the Blockchain
Implementation of proof-of-work
CHALLENGES IN BLOCKCHAIN TECHNOLOGY
Scalability
Network Interoperability
Consumption of Energy
Talent Deficit
Standardization
Cross Chain Technology
Blockchain Consequences
RESEARCH PERSPECTIVES
CONCLUSION
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Cybersecurity and Blockchain
Abstract
INTRODUCTION
BLOCKCHAIN TECHNOLOGY IS SECURE OR NOT?
ROLE OF BLOCKCHAIN IN CYBERSECURITY
INDUSTRIES USING BLOCKCHAIN IN CYBERSECURITY
How Crypto Currencies Using Blockchain in Cyber Security
Mobilecoin
Coinbase
Javvy
How Healthcare Industries using Blockchain in Cybersecurity
How the Government Using Blockchain in Cybersecurity?
How Military and Defense Using Blockchain in Cybersecurity
How Banking Systems Use Blockchain in Cybersecurity
FUTURE BENEFITS OF BLOCKCHAIN TO STRENGTHEN CYBERSECURITY
IoT (Internet of Things) Security
Cyber-Physical Infrastructure’s Verification
Reducing Human Safety Adversity by Cyber-Attacks
The Origin of Computer Software
Private Message Security
Securing Domain Name System (DNS) and Distributed Denial of Services (DDoS)
Medium Storage Decentralization
Data Transfer Protection
MAJOR PROS AND CONS OF BLOCKCHAIN FOR CYBERSECURITY
ADVANTAGES AND DISADVANTAGES OF BLOCKCHAIN
Advantages of Blockchain
Disadvantages of Blockchain
CHALLENGES WITH BLOCKCHAIN
Regulations
Privacy of Data
Interoperability
Scalability
Risks Associated with Technology
CONCLUSION
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENTS
REFERENCES
Applications of Blockchain in Cyber Security Industry
Abstract
INTRODUCTION
Objectives of the Study
Research Methodology
ROLE OF BLOCKCHAIN IN CYBER SECURITY
ELIMINATING HUMAN FACTOR FROM AUTHENTICATION
Decentralized Storage
Traceability
HOW DOES BLOCKCHAIN PROVIDE CYBER SECURITY?
USES OF BLOCKCHAIN TECHNOLOGY IN CYBER SECURITY
FUTURE OF BLOCKCHAIN TECHNOLOGY: PREDICTIONS FOR 2030
Blockchain will be Leveraged for a Majority of the World Trade
Frictionless Flows And Digital Assets
Blockchain Identity for All
Considerable Improvements in the Global Standard of Living
FINDINGS AND SUGGESTIONS
CONCLUSION
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Overview of Attack Surfaces in Blockchain
Abstract
INTRODUCTION
BLOCKCHAIN SECURITY ISSUES
Transaction Malleability
Network Security
Privacy
Redundancy
Regulatory Compliance
Criminal Activity
TAXONOMY OF ATTACK SURFACES
a. Blockchain Network Attacks
Transaction Malleability Attack
Timejacking
DDOS Attack
Routing Attacks
Sybil Attack
Eclipse Attacks
Long-range Attacks
b. User Wallet Attacks
Phishing
Dictionary Attacks
Vulnerable Signatures
Flawed Key Generation
Attacks on Cold Wallets
Attacks on Hot Wallets
c. Smart Contract Attacks
Vulnerabilities in Contract Source Code
Vulnerabilities in Virtual Machines
Immutable Defects
Cryptocurrency Lost in Transfer
Bugs in Access Control
Short Address Attack
d. Transaction Verification Mechanism Attacks
Double Spending Attack
Finney Attacks
Race Attacks
Vector76
Alternative history attacks
51% or Majority Attacks
e. Mining Pool Attacks
Selfish Mining
Fork After Withholding
MEANS OF PROTECTION AGAINST CYBER ATTACK INTERFACE
CONCLUSION
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Review of Anti-Counterfeit Solutions in Blockchain
Abstract
INTRODUCTION
COUNTERFEIT SOLUTIONS FOR ATTACK SURFACES
Countermeasure against Blockchain Network Attacks
Countermeasures against Distributed Denial of Service Attack
Countermeasures against Transaction Malleability Attack-
Countermeasures against Timejacking
Countermeasures against Routing Attacks
Countermeasures against Sybil Attacks
Countermeasures against Eclipse Attacks
Random Node Selection:
Deterministic Node Selection:
Increased Node Connections:
Restrictions on New Nodes:
Countermeasures against Long-Range Attacks on Proof of Stake Networks
Defence Mechanism against User Wallet Attacks
Countermeasures against Phishing
Countermeasures against Dictionary Attacks
Countermeasures against Vulnerable Signatures
Countermeasures against Flawed key generation
Countermeasures against Cold Wallets and Hot Wallets Attacks
Mechanism against Smart Contract Attacks
Defense Mechanism against Transaction Verification Mechanism Attacks
Countermeasures against Finney Attacks
Countermeasures against Race Attacks
Countermeasures against Vector76
Countermeasures against Alternative History Attacks
Countermeasures for 51% Or Majority Attacks
Defense Mechanism Mining Pool Attacks
Countermeasures against Selfish Mining
Countermeasures against fork after withholding (FAW) Attack-
CONCLUSION
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Preserving the Privacy of Wearable IoT Device Data Using Blockchain
Abstract
INTRODUCTION
IOT ARCHITECTURE
IOT FITBIT INTRODUCTION
Fitbit Architecture
Challenges of IoT Devices
INTRODUCTION TO BLOCKCHAIN
Characteristics of the Blockchain
BLOCKCHAIN ARCHITECTURE
Components of Blockchain
SECURITY USING BLOCKCHAIN
Authentication of IoT device
Verification of the sender
Proof of Work
Smart Contract
RELATED WORKS
PROPOSED METHOD
Chain Validation
RESULTS
CONCLUSION & FUTURE WORKS
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Blockchain Based Access Control Systems
Abstract
INTRODUCTION
BACKGROUND
BLOCKCHAIN-BASED ACCESS CONTROL FOR IOT
CONCLUSION & FUTURE SCOPE
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Multi-chain Deployment over Smart Contracts to Enhance Security
Abstract
INTRODUCTION
BLOCKCHAIN AND SMART CONTRACTS
Implementation Techniques for Blockchains
Blockchain Clients for Participants
Application Development Environments for Blockchains
Blockchains for Supply Chains with Smart Contracts
SECURITY ATTACKS ON SMART CONTRACTS
MULTI-CHAIN AND SMART CONTRACTS
The Objectives of Multichain
The Hand-Shaking Process
The Process of Mining in Multichain Technology
The efficacy of block is verifiable by performing the following:
How Smart Contracts in Multichain Redefine Value Exchange
The following are some of the advantages of smart contracts:
Some of the example that shows the value exchanges due to Smart contracts are given below:
a). Freelance Work Exchanges
b). Digital Rights and Intellectual Property
MULTIPLE BLOCKCHAIN AND SMART CONTRACTS TRANSFOR- MING CONTRACT MANAGEMENT IN RECENT TIMES
Blockchain and Distributed Ledger Technology
Through the use of smart contracts, a business will become faster and more flexible in 2020 and beyond by:
EtherCore:
A Multi-Chain Decentralized Application and Smart Contract Platform
EtherCore Features:
Fast
Stable
How Contract Vendors Benefit Forward-Thinking Organizations:
Tools for Smart Contract Deployment in Multichain Environment
b). eb3 on TestRPC
CONCLUSION AND FUTURE SCOPE
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Blockchain for Decentralized Services: On Improving Security and Performance of Distributed IPFS-based Web Applications
Abstract
INTRODUCTION
BACKGROUND AND RELATED WORK
Background of Blockchain Technology
Types of Blockchain
Open
Private
Smart Contracts
Interplanetary File System
Distributed Hash Table
RELATED WORK
APPLICATION DESIGN
IMPLEMENTATION
a. Encryption and Decryption
b. Access Control using Smart Contracts
c. Migration of the Application to Remote IPFS
Key-Value Memory Cache
Method Get File Node from Path
Method find ProvidersAsync
PERFORMANCE AND SECURITY ANALYSIS
Security Analysis
Performance Analysis
TRADEOFF BETWEEN PERFORMANCE AND SECURITY
CONCLUSION AND FUTURE WORK
DISCLOSURE
CONSENT FOR PUBLICATION
CONFLICT OF INTEREST
ACKNOWLEDGEMENT
REFERENCES
Blockchain Applications in Cybersecurity Solutions
Edited By
R. Agrawal
Faculty of Computer Applications
Manav Rachna International Institute of Research and Studies
Faridabad
India
&
N. Gupta
Faculty of Computer Applications
Manav Rachna International Institute of Research and Studies
Faridabad
India

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FOREWORD

Currently, there is an increase in the number of social media platforms that we use, and most of them have so-called weak and unreliable passwords. During social media interactions, large quantities of metadata are collected, and hackers can take advantage of this and create havoc. In contrast to end-to-end encryption, blockchain technology can be used to develop a standard security protocol. As part of a unified API framework, it can also be used to enable cross-messaging capabilities by securing private messaging.

Even though the blockchain is not infallible, it has evolved to become one of the most foolproof means of transacting in the world of digital networks. Since the technology is designed and intended to ensure information integrity, it has been praised for its effectiveness. There are many sectors that can benefit from it if it is used properly. As blockchain has the potential to be practical for many utilisations, it can be implemented for many uses in a variety of ways. The most practical use of this kind of system would be to use its integrity assurance to build cybersecurity solutions for many other technologies as well. This book is a good step in that direction.

The book “Applications of Blockchain in Cybersecurity Solutions,” edited by Dr. Rashmi Agrawal and Dr. Neha Gupta, is a comprehensive book on Blockchain Technologies. The authors have tried their best to present the concepts and techniques to every extent. Practical applications of blockchain in cybersecurity are also well presented in some chapters.

Abhishek Kumar Associate Professor Chitkara University, India

PREFACE

The concept of a blockchain can be defined as a linked set of records maintained in a decentralized environment. The records in the blockchain are publicly accessible but cryptographically protected. An interesting property of the blockchain is that once some information has been recorded, it is impossible to alter the information after it was recorded. An example of a blockchain can be seen as a chain of blocks containing time-stamped digital documents in such a way that they cannot be backdated or modified in any way. The time-stamped digital documents are kept as a collection of records and are grouped into a set of blocks, which are chronologically linked by date and time.

Each time the blockchain needs to be updated; a new block is created and appended to the existing blockchain. Each block in the blockchain contains a hash of the previous block, a collection of records of its own, and the hashed value records, also known as Merkle trees, that correspond to the block before it. Depending on the nature of the blockchain, the information inside each block differs. For instance, when it comes to bitcoin, the blockchain is supposed to store the complete details about a transaction, namely the sender, the receiver and the number of coins, whereas a blockchain used for medical records is supposed to store the complete health history of a patient over time. As blockchains are distributed, efficient hashing techniques are used to ensure their integrity and robustness. Eleven chapters of this book are devoted to demonstrating the benefits and applications of blockchain.

“Introduction to Blockchain Technology”, in the first chapter, briefly explains what blockchain technology is all about. The chapter focuses on the nuances of blockchain technology, the protocol stack, and the most common consensus mechanisms used. Additionally, recent advances, challenges, and future trends of blockchain are discussed in this chapter.

The second chapter discusses the relationship between cybersecurity and blockchain. Blockchain technology plays a crucial role in strengthening cybersecurity in various industries due to its decentralized nature. Through this chapter, the readers will get to know how blockchain technology is helping in providing cybersecurity to the different sectors of industries with its advantages and disadvantages of blockchain. The author also explores the role of blockchain in cybersecurity and the future benefits of blockchain technology to strengthen cybersecurity.

A majority of specialists are working on the acceptance of blockchain to safeguard IoT (Internet of Things) devices, systems, and information. Chapter 3 will examine the methods proposed by previous analysts through which blockchain can carry the expense of security. The chapter will illustrate the subjective investigation of supporting information to assess the relevance of Blockchain innovation in the present cybersecurity industry.

Chapter 4 is on “Attack Surfaces in Blockchain”. Attacks are believed to be caused by the blockchain cryptographic architecture, the bottom-line architecture, and the substance in which they are applied. Progressive defense research is believed to be the primary threat. Current research suggests that other attacks on the blockchain can be launched without being able to withstand traditional defenses, a few of which may be used to deliver other attacks. Delineating these attacks and examining their countermeasures reveal the direction of new research that should be pursued to foster safer and more competent use of blockchains.

Blockchain technology offers a data format that has built-in security. It is built on cryptography, decentralisation, and consensus concepts to ensure trust in transactions. Decentralization is enabled by blockchain technology, which allows members to participate in a distributed network. Since all transactions are transparent and visible to all users on the network, a single user cannot alter the transaction. However, blockchain differs significantly from other systems in terms of security. The blockchain is vulnerable to so many attacks nowadays. The purpose of Chapter 5, “Review of Anti Counterfeit Solutions in Block Chains”, is to examine the effective anti-counterfeit measures taken by blockchain technology or the patches for and related vulnerabilities offered by researchers to reduce the impact of these attacks.

Due to the increasing number of connections, the popularity of cloud services, and advances in the Internet of Things (IoT), a decentralized approach to trust is becoming more common. In the research community, blockchain technology is receiving considerable attention because it provides a distributed ledger. This technology, however, does not provide cybersecurity in its entirety. Thus, the objective of this chapter is to provide a comprehensive overview of the proposed methods and factors for achieving cybersecurity in blockchain-based systems.

The objective of the Sixth chapter, “Preserving the Privacy of Wearable IoT Device Data Using Blockchain,” is to provide the solution for the above-mentioned problems using Blockchain technology.

The cloud environment is a way to use faraway servers accommodated on the internet for data storage, data control, and information processing, more readily than a private computer or native server. There are still many challenges in the cloud environment, including authenticity, confidentiality, and integrity.

Chapter 7 discusses Blockchain-Based Access Control Systems. The need for secure and distributed access control architecture to overcome the single point of failure problem of a centralized entity becomes a big challenge when coupled with scalability and lightweight features. It is possible to achieve this through the use of Blockchain technology, which has recently been used to provide access control services. IoT device management would be used to manage distribution, heterogeneity, scalability, the ability to tolerate failure, security and privacy aspects of IoT devices at scale in the near future as it is useful.

“Multi-chain Deployment over Smart Contracts” is covered in Chapter 8. As the greatest enabling technology for blockchains, smart contracts are considered to be the best. As a result, blockchain ecosystems become self-governing, transparent, consent-based, and credible. Blockchains can operate without human intervention due to a compilation of smart contracts. These smart contracts are set up so they can be deployed at the predefined blockchain nodes. This can be done through the callbacks either from the blockchain system, the other smart contracts, or even the participants' information systems. As smart contracts, both the operations on the blockchain and the rules that govern the applications can usually be predetermined. While the use cases and real-world functions of this technology differ from one another, some principles remain the same: immutability, transparency, redundancy, and security.

The title of Chapter 9 is “Blockchain for Decentralized Services: On Improving Security and Performance of Distributed IPFS-based Web Applications”. Blockchain technology, with its associated decentralization, is used to develop decentralized application platforms. The Interplanetary File System (IPFS) is built on top of a distributed system consisting of a group of nodes that shares the data and takes advantage of blockchain to permanently store the data. The IPFS is very useful in transferring remote data. This work focuses on applying blockchain technology to the IPFS to improve its security and performance

R. Agrawal Manav Rachna International Institute of Research & Studies, FaridabadN. Gupta Manav Rachna International Institute of Research & Studies Faridabad

List of Contributors

AR.G. GokulDepartment of Information Technology, Sri Venkateswara College of Engineering, Sriperumbudu, IndiaB.K.P. MadaviGITAM University, BangaloreD. MantriSinhgad Institute of Engineering, Lonavala, PuneG. ThahniyathDayananda Sagar University, BangaloreH. SainiResearch Schola, IBM, GLA University, Mathura, Uttar Pradesh, IndiaH. BhatiaSchool of Computer Scienc, Engineering and Applications, D Y Patil International University, Pune, IndiaI. ChatterjeeDepartment of Computer Engineering, Tongmyong University, Busan, South KoreaK.K. SowjanyaCMR Institute of Technology, BangaloreM. MohSan Jose State University, San Jose, CA 95192-0249, USAN. DeviDepartment of Information Technology, Sri Venkateswara College of Engineering, Sriperumbudu, IndiaN. GuptaManav Rachna International Institute of Research and Studies, Faridabad, HaryanaP.L. RaniDepartment of Information Technology, Sri Venkateswara College of Engineering, Sriperumbudu, IndiaR. AgrawalManav Rachna International Institute of Research and Studies, Faridabad, HaryanaR. DeshmukhDepartment of Computer Scienc, Shivaji University, Kolhapur, IndiaR. KamatDepartment of Computer Scienc, Shivaji University, Kolhapur, IndiaR. MoazeniSan Jose State University, San Jose, CA 95192-0249, USAS. ZalteDepartment of Computer Science, Shivaji University, Kolhapur, IndiaV. GargAmity UniversityUttar Pradesh, IndiaV. LeSan Jose State University, San Jose, CA 95192-0249, USA

Introduction to Blockchain Technology

N. Devi1,*,P.L. Rani1,A.R.G. Gokul1
1 Department of Information Technology, Sri Venkateswara College of Engineering, Sriperum-budur, India

Abstract

A blockchain is a linked set of records maintained in a decentralized environment. The records in blockchain are publicly available but cryptographically secured. The interesting property exhibited by blockchain is that once some information is recorded, it is infeasible to modify the information. Blockchain is generated as a chain of blocks that contains time-stamped digital documents so that it is infeasible to back date them or tamper the documents. These time-stamped digital documents are stored as a collection of records and grouped as a set of blocks, chronologically linked in order of time.

A new block is created and appended to the existing blockchain, whenever there is a need for updating the blockchain. Every block in the blockchain comprises of a hash of the preceding block, collections of records of its own, and the hashed value records known as merkle tree. The information inside the blocks varies depending on the nature of blockchain. For example, when the nature of blockchain is bitcoin, they are supposed to store the details about a transaction viz., sender, receiver and amount of coins where as blockchain used for medical records stores the complete health history of a patient over time. Since blockchain is stored in a distributed way, efficient hashing techniques are used to ensure the integrity and robustness of blockchain. This chapter describes the nuances of blockchain technology along with the protocol stack and the most common consensus mechanisms. Furthermore, recent advances, challenges and future trends of blockchain are discussed.

Keywords: Bitcoin, Blockchain, Cryptography, Distributed, Decentralized, Hash, Merkle Tree, Robustness, Time Stamp, Transaction.
*Corresponding author N. Devi: Sri Venkateswara College of Engineering, Pennalur, Sriperumbudur, Kanchee-puram, Tamil Nadu, India; E-mail: [email protected]

INTRODUCTION

A blockchain [1] is a decentralized distributed ledger of records that is cryptographically secured and accessible unlimitedly to all. It possesses a fascinating characteristic: when an information is stored inside a blockchain, it is infeasible to modify the recorded information. The blockchain is generated as a

chain of blocks that contains time-stamped digital documents.. These time-stamped digital documents are stored as a collection of records and grouped as a set of blocks. These blocks are then linked together in chronological order of time in a continuous line. To update, a new block is created and appended to the existing blockchain, thus, providing blockchain, a non-destructive way to track data changes over time. Every block in the blockchain comprises hash of the preceding block, collections of records of its own, and the hashed value records known as Merkle tree. The information stored inside the blockchain depends on the type of blockchain. For example, the blockchain used in bitcoin records the information of a transaction viz., number of coins, contributor and receiver whereas the blockchain used for medical records stores the complete health history of a patient over time. Since blockchain is stored in a distributed way, efficient hashing techniques are used to ensure the integrity and robustness of the blockchain. The main characteristics of blockchain are depicted in Fig. (1). This section describes the nuances of blockchain technology.

Fig. (1)) Different Aspects of Blockchain.

Block

A block in a blockchain is a collection of various items such as the hash of its preceding block, the Merkle root and its own records as shown in Fig. (2). A Merkle tree for a block is formed by placing the hash of the individual records of that block as the leaf nodes and the non-leaf nodes are the combined hash of their own children. Using hash ensures data integrity and also helps in ensuring the correctness of the data at any given time. A hash function accepts an input of any length and converts it into a fixed length. The hash function may produce a 32-bit or 64-bit or 128-bit or 256-bit fixed length called a hash. Hash functions protects the data integrity. If a trusted hash of the data is provided, it is possible to compute the hash of the data and verify the two values. If they match, then the data has not been changed since the original hash is formed.

Fig. (2)) Block in a Blockchain.

The first block is called a genesis block and is created at the beginning with the set of records and its Merkle root.

Merkle trees are the basic blocks of blockchain technology. It is a structure that permits verification of the consistency of content in a secure and efficient way. Bitcoin and Ethereum use Merkle trees. A Merkle tree produces a fingerprint of the summary of all the transactions in a block. It enables a user to verify whether a transaction is part of a block. Repeated hashing of pairs of nodes is performed from the bottom up, until only one hash is left as depicted in Fig. (3). This hash is referred to as the Merkle Root, or the Root Hash. The hashes of individual transactions, Transaction IDs are considered as leaf nodes for the construction of Merkle Tree. The hash of the previous hashes forms the non leaf nodes in the Merkle Tree. The trees are binary and hence, it is mandatory to have an even number of leaf nodes. In case of odd transaction numbers, the last hash will be replicated once to form an even number of leaves.

Fig. (3)) Sample Merkle Tree.

In blockchain, once the block is created, it is computationally infeasible to change the record in that block as the hash of this block is stored in the succeeding block with its hash value stored in the next block and so on. This dependency between the new and the old blocks in the blockchain ensures data integrity and also ensures that there is no possibility for unauthorized data modification. If one wants to change an information recorded in a particular block x, then the change is recorded in a new block showing that x is changed to y at a particular date and time. This helps to keep track of the data that changes over time.

Distributed Ledger

A blockchain is analogous to a financial ledger that can be programmed to record and track anything of value from financial transactions to medical records or even land titles [2]. Storing only the hash values of the block in the consecutive block is not enough to ensure data security. In order to improve data security, blockchain is designed to be decentralised and distributed among all the peers connected in the network. This decentralisation reduces the ability for data tampering, thus creating trust. A Peer-To-Peer (P2P) network of computing resources is used to run this ledger. Each peer in the network has a copy of the blockchain and creates a consensus by regularly performing Proof-of-Work(PoW). PoW is a mechanism which is used to ensure genuineness of transactions and to append new blocks to the chain. So the security of the blockchain depends on the complex hashing technique and PoW.

Any distributed consensus for validating transaction works by utilising the mechanisms from game theory, cryptography and P2P networks as depicted in Fig. (4) [3]. This distributed consensus bypasses the necessity of the trusted third party for validation process. This safe P2P transaction concept came into light in October 2008 as one of the important functionalities in implementing bitcoins for cashless financial transactions. The details about all the transactions are recorded in the blockchain. This can be viewed as analogous to Google docs where each person holds the latest copy of the document and when one person wants to update the document, he has to reach a common agreement with all other persons. In Google docs, the file is kept in a central place and all are allowed to access and view it, whereas in a distributed ledger, each person in the network owns a copy of the blockchain.

Smart Contract

A smart contract is a defined set of rules agreed upon by two nodes to perform a transaction [4]. These sets of rules are implemented as a tiny computer program stored inside the blockchain. This allows a decentralised control of the transaction. The transaction cannot be completed without satisfying all the set of rules defined in the smart contract. Any association of a third party in the blockchain is removed by the implementation of a smart contract and they are consequently activated when a transaction is being done. Smart contracts are immutable ensuring that no one can intrude the transaction. They are also distributed so that the output of the transactions can be verified by all the peers in the network. Ethereum is the biggest blockchain that uses smart contracts. Smart contracts are written using the solidity programming language.

Fig. (4)) Distributed Consensus.

Blockchain Protocol Stack

The blockchain protocol stack [5] presented in Fig. (5) contains blockchain at the bottom level and on top of it, lies the smart contract and other overlay networks followed by protocols and API’s to interact with the application. Digital assets are managed using blockchain based on smart contracts. A smart contract defines a set of rules for mutual agreement among peers. This is entirely different from a legal contract in the way that the smart contract will execute the transaction only when all the peers satisfy the rule mentioned in the contract. This is much superior to the contract laws in providing more secure transactions with minimum coordination costs during the transaction.

Smart contracts are deployed in many scenarios from simple financial transactions like fund transfer from A to B, to more complex transactions involving registration for land ownership, patented rights in IP, handling smart applications. One significant complex smart contract is the Decentralized Autonomous Organizations (DAOs), where smart contracts are deployed for performing a transaction involving a cluster of single-minded persons with common aims and ideas. Today’s digital world embeds contracts into many types of code viz., bar code, QR code, where these codes are kept in public and transparent databases . The databases are protected from any kind of tampering with the help of smart contracts and blockchains. It transits the world into a new era where each process, event, agreement, and task, are recorded digitally and the signature present in the records can be validated easily. Individuals, governments, industries, and automated systems can now liberally communicate and transact with each other without any intermediaries with minimal transaction cost.

Fig. (5)) Blockchain Protocol Stack.

Tamper Resistant

The blockchain protocol running on the nodes of a P2P network performs the validation process of a transaction as depicted in Fig. (6) without involving third-party agents [6]. The validation process is done by majority vote consensus. This protocol is responsible for administering all the nodes to participate in validating the transaction through a set of pre-defined governance rules.

Fig. (6)) Validation Process of a transaction that uses blockchain.

The pre-defined governance rules of the network oversee how the nodes in the P2P network cooperate with one another to validate the transaction. These rules elucidate

The criteria based on which the transaction is said to be valid.The cost incurred during the transaction.Validating the transaction using game theory and cryptographic techniques.Procedures to update the predefined rules as and when necessary.

Consider a bitcoin scenario; the financial transactions are validated through a majority vote with the help of bitcoin protocols instead of validating manually through ledgers stored in servers in a traditional banking application.

CONSENSUS PROTOCOL

A consensus mechanism in a blockchain is a robust mechanism to achieve common agreement on a specific state among the nodes in a P2P network. This mechanism involves a set of predefined rules for synchronizing the nodes during transactions that are trusted and recorded in the blockchain. The purpose of these rules is to assure the validity and legitimacy of the transactions. Some of the widely used consensus mechanisms [7] viz., PoW, PoS, DPoS, pBFT, PoC, PoA, PoR, PoI, PoB, PoET, PoId and PoAu are described in this section.

Proof of Work (PoW)

The process of mining is termed PoW. The nodes denote the miners [8]. Complex mathematical puzzles are decrypted by the miners. This requires extensive computing resources. Various mining techniques viz.