Recent Trends in Blockchain for Information Systems Security and Privacy

Amit Kumar Tyagi, Ajith Abraham, Amit Kumar Tyagi, Ajith Abraham

• Publisher: CRC Press
• Year: 2021
• eBook ISBN: 9781000474473
• Topic: Informatica
• Subtopic: Reti di computer

Blockchain technology is an emerging distributed, decentralized architecture and computing paradigm, which has accelerated the development and application of cloud, fog and edge computing; artificial intelligence; cyber physical systems; social networking; crowdsourcing and crowdsensing; 5g; trust management and finance; and other many useful sectors.

Nowadays, the primary blockchain technology uses are in information systems to keep information secure and private. However, many threats and vulnerabilities are facing blockchain in the past decade such 51% attacks, double spending attacks, etc. The popularity and rapid development of blockchain brings many technical and regulatory challenges for research and academic communities. The main goal of this book is to encourage both researchers and practitioners of Blockchain technology to share and exchange their experiences and recent studies between academia and industry.

The reader will be provided with the most up-to-date knowledge of blockchain in mainstream areas of security and privacy in the decentralized domain, which is timely and essential (this is due to the fact that the distributed and p2p applications are increasing day-by-day, and the attackers adopt new mechanisms to threaten the security and privacy of the users in those environments). This book provides a detailed explanation of security and privacy with respect to blockchain for information systems, and will be an essential resource for students, researchers and scientists studying blockchain uses in information systems and those wanting to explore the current state of play.

Track 1

Blockchain

Background and Importance

1Fundamentals of Blockchain and Distributed Ledger Technology (DLT)

Leema Roselin G, Rajmohan R, Usharani S, Kiruba K, Manjubala P

Contents

1.1 Introduction of Blockchain and Distributed Ledger Technology (DLT)

1.2 Works of Distributed Ledger Technology

1.2.1 Primary Attributes of DLT

1.2.2 The Ledger’s Dispersed Design

1.3 Theoretical Contributions to Blockchain and DLT

1.3.1 Contribution to Business Model Literature

1.3.2 Positive Contribution to Blockchain Works of Literature

1.4 Evaluation of Blockchain Problems and Opportunities

1.4.1 Main DLT/Blockchain Challenges and Opportunities

1.4.2 Opportunities and Possibilities

1.5 Distributed Solutions for Consensus and Failure Tolerance, Including Domain Consensus

1.5.1 Consensus Mechanism

1.5.2 Distributed Ledger

1.5.3 Centralized Ledger

1.5.4 Distributed Ledger (Permissionless)

1.5.5 Distributed Ledger (Permissioned)

1.5.6 Fault-Tolerant Consensus in a Distributed System

1.5.7 The System Model

1.5.7.1 Network Synchrony

1.5.7.2 Faulty Component

1.5.7.3 Consensus Protocol

1.6 Tradeoffs for Blockchain Scalability

1.6.1 The Top Two Tradeoffs to Blockchain Scalability: Level of Decentralization

1.6.2 Level of Programmability

1.6.3 Algorand Prioritized Performance over Turing‑Complete Programmability

1.6.4 Ethereum Prioritized Turing-Complete Programmability over Performance

1.6.5 Choosing the Right Platform for Your Application

1.6.6 Tradeoffs between Distributed Ledger Technology Characteristics

1.7 Blockchain Consensus Algorithm

1.7.1 Strategies of Blockchain Mechanism

1.7.1.1 Unified Agreement

1.7.1.2 Align Economic Incentives

1.7.1.3 Equitable and Fair

1.7.1.4 Prevent Repetition of Expenses

1.7.1.5 Tolerant Fault

1.7.2 Properties of a Strong System for Consensus

1.7.3 Consensus Blockchain Algorithms Popular in the Enterprise

1.7.3.1 Proof of Work (PoW)

1.7.3.2 Proof of Stake (PoS)

1.7.3.3 Byzantine Fault Tolerance (BFT)

1.7.3.4 Direct Acyclic Graph (DAG)

1.7.3.5 Proof of Capacity (PoC)

1.7.3.6 Proof of Burn (PoB)

1.7.3.7 Proof of Identity (PoI)

1.7.3.8 Proof of Activity (PoA)

1.7.3.9 Proof of Elapsed Time (PoET)

1.7.3.10 Proof of Importance (PoI)

1.7.4 The DLT Consensus Ecosystem

1.7.5 Byzantine Fault Tolerance

1.7.6 Distributed Computing Consensus

1.7.7 Consistency Availability Partition Tolerance (CAP)

1.7.8 Permissioned/Private DLTs

1.8 Blockchain Extensions and Constraints

1.8.1 Constraints

1.8.2 Extensions

1.8.3 Sidechains

1.8.4 Channels of State

1.8.5 The Universe of Distributed Ledger

1.9 Emerging Blockchain Applications: Best-Fit Application Scenarios and Models

1.9.1 Cryptomonetary and Payment Blockchains

1.9.2 Product Monitoring Blockchains

1.9.3 Supply Chain Blockchains

1.9.4 Blockchains for Business Applications

1.9.5 Blockchains for Public Services

1.9.6 Underdeveloped Blockchain Techniques

1.9.7 Blockchain Applying Strategies

1.9.8 Application Development Environments for Blockchain

1.10 Blockchain User Authentication and Permission

1.10.1 Blockchain Authentication

1.10.2 Blockchain-Based Authentication of Devices and People

1.11 Computer and Hardware Encryption Implementations of Blockchain Technology

1.11.1 Blockchain Technology Can Transform the Security Industry

1.12 Conclusion

1.1 Introduction of Blockchain and Distributed Ledger Technology (DLT)

Blockchain-based distributed ledger technology (DLT) has a range of possible uses outside the limited world of digital currency and cryptocurrencies that was first implemented as the underlying infrastructure of the cryptocurrency Bitcoin. For example, DLT might have uses in capital markets for cross-border transfers, financial market infrastructure, and security registries.

However, DLT’s future implementations are not confined to the financial industry [1][2]. DLT is presently being explored by using trustworthy partners to verify flows and trends to promote digital identity goods or to create untampered, decentralized records of the distribution of goods and services through a supply chain [1][3]. Usually, DLT advocates emphasize a range of possible benefits over conventional unified ledgers and some other kinds of collaborative ledgers, like decentralization, deregulation, better transparency and easy accountability, speed and productivity improvements, cost savings, and modernization and fully programmability. That said, technology continues to improve and faces new threats and challenges, which are often yet to be addressed.

Scalability, interoperability, organizational protection and cyber security, identity authentication, data privacy, transaction conflicts and redress mechanisms, and difficulties in establishing a regulatory and legal system for DLT implementations are the most widely cited technical, regulatory, and legal challenges relevant to DLT, which may bring significant changes in the functions and obligations of DLT implementation. Significant costs related to the transfer of current long-standing IT processes, operating structures and policy structures to DLT-based architecture are another problem, especially applicable to the field of financial market infrastructure. Many industry analysts note that DLT implementations would likely launch in places without many legacy automation investments, like financial transactions and syndicated lending in the financial industry, because of these challenges. It is possible to open/permitless or permit distributed ledger structures, and there are basic variations between these two forms that relate to somewhat different risk profiles. There is no centralized controller who manages access to the network in permissionless networks. A database server with the appropriate program is all that is required to enter the network and connect transaction history. Members of the network are preselected on registered networks by the controller or administrator of that same ledger, who manages access to the network and enforces the guidelines of the ledger.

DLT led to a special and increasingly developing approach to data storage and distribution across various data sources or ledgers. Such technology enables the capturing, sharing, and synchronization of transactions and data through a global network of separate network members. A “blockchain” is a special kind of data structure in certain distributed ledgers that stores and transmits information in packages called “blocks” in a digital “chain” that are linked to each other. Blockchains use cryptographic and algorithmic techniques in an irreversible fashion to store and sync data throughout network. Distributed ledgers (DLs) are really a particular application of the wider “public ledgers” category which is simply represented as a shared data record across multiple parties. For instance, a new cryptocurrency transaction will be registered and distributed in a block of data to a network, which is first authenticated by members of the network and then connected in an append-only manner, to an existing block, thereby forming a blockchain. Even as linear chain expands as new blocks are inserted, each network member does not retrospectively modify older blocks. Note that blockchain technology is not inherently used by all distributed ledgers, and blockchain technology might be used in different ways instead.

Blockchain arranges data in blocks, which are used primarily for square calculation in chains. Blockchain square tests the “Internet import” building block and alters contact tracking and peer-to-peer sharing, but it is not a requirement for a centrally organized body. “Value” means any records of ownership of plus such as money, shares, and land titles and, together, data such as identification, health data, and various personal details. Both forms have advantages and drawbacks that vary considerably in different usage cases. Registered programs, for example, are better at addressing identity authentication and data protection problems, but they involve a central access control authority that provides a possible target for cyberattacks. It is also likely that approved structures could more conveniently integrate into current legislative and regulatory processes and administrative arrangements. To a degree, however, authorized DLs eliminate core advantages of the most important invention of DLT. This is because free permissionless DLs are accomplished through protection and system integrity by cryptography and algorithmic approaches ensuring that confidential network members are empowered to implement the ledger’s consistency without the use of entry barriers or trust among members.

The majority of DLT’s research and development efforts are currently dedicated to upgrading financial systems and procedures, and there is tremendous scope for this commitment to be leveraged for the good of developed countries by development organizations. With that being said, the technology is still at an initial phase of development, but there is still a ways to go before it will be possible to realize its full potential, particularly with regard to privacy, stability, interoperability, scalability, and regulatory and legal issues. It is not always an optimal strategy for development organizations to wait for “perfect” DLT solutions, though. Provided DLT’s ability to structure responses to growth problems in the finance industry and even beyond, the World Bank Group is able to track and form trends closely and, where necessary, promote their healthy implementation while ensuring institutional independence with respect to private sector actors. It needs not only analysis, and moreover legitimate experiments and trials, to grasp DLT’s true potential for growth goals.

The use of DLT to help meet growth goals in the finance industry includes the development and successful promotion of vital accompanying components in addition to the development of the technology itself. Significant among these are user-friendly architecture of the mobile interface, money management, and functionality, a solid system for the safety of financial users, interoperability with conventional payments and financial institutions and infrastructure, and efficient regulation.

1.2 Works of Distributed Ledger Technology

Distributed ledger technology falls on the back of numerous Internet-enabled (peer-to-peer [P2P]) applications, such as email, music distribution or other shared folders, and electronic mail. Internet-based asset ownership transactions, however, have been difficult for a long time, as this involves verifying that a resource is only exchanged by its rightful owner and guaranteeing that the resource cannot be transmitted multiple times, i.e. without double spending. Anything of worth may be the commodity at issue. DLT led to a fundamental and quickly changing approach to data recording and sharing across different data stores (ledgers), each of which has the very same data records and is stored and managed collectively by a distributed computer server network known as nodes. Another means of conversing of DLT is based on it being essentially a hierarchical database with some particular properties. Blockchain, a specialized version of DLT, utilizes cryptographic and algorithmic approaches to construct and validate a constantly expanding, append-only data system that serves the purpose of a blockchain and serves the purpose of a ledger, a chain of so-called “transaction blocks.” New database additions are introduced by a member (node) who generates a new “data block” containing, for example, many transaction documents.

Knowledge concerning this new block of data is then transmitted across the whole network, as shown in Figure 1.1, containing encrypted information such that transaction specifics are also not...

Table of contents

• Cover
• Half Title Page
• Title Page
• Copyright Page
• Contents
• Preface
• Acknowledgments
• Editors
• Track 1 Blockchain: Background and Importance
• Track 2 Blockchain for Information Systems: New Methodsfor Day-to-Day Problems 75
• Track 3 Blockchain in the Near Future: Possible Uses andResearch Gaps
• Track 4 Blockchain with Other Computing Environments
• Index