Abstract:
Blockchain
technology, known as BC, lies at the core of the Bitcoin cryptocurrency system
and is highly esteemed for its remarkable capability to deliver heightened
security and privacy across a wide range of applications beyond cryptocurrencies.
These applications encompass the Internet of Things (IoT) ecosystem, which has
prompted extensive research by both academia and industry. In these
investigations, the implementation of blockchain technology in various domains
has been explored. The essential role played by the Proof-of-Work (PoW), a
cryptographic puzzle, cannot be understated, as it ensures the security of BC
by maintaining an incorruptible digital ledger of transactions.
Furthermore,
BC leverages a changeable Public Key (PK) to record user identities, thereby
adding an additional layer of privacy. The successful adoption of BC extends
beyond cryptocurrency and encompasses non-monetary systems like distributed
storage systems, proof-of-location, healthcare, and decentralized voting. In
this article, we present a survey that examines recent research articles and
projects focused on implementing BC to enhance security. We identify associated
challenges and propose solutions for BC-enabled security systems.
Introduction:
This
article aims to provide an all-encompassing summary of the existing literature
on the implementation of blockchain and related digital ledger techniques in
domains that extend beyond cryptocurrency. By focusing on research conducted over
the past decade, including early work in the field, we delve into different
applications, challenges, and the security and privacy concerns associated with
blockchain technology. The primary objective of this review study is to
identify the most promising directions for the future utilization of blockchain
beyond cryptocurrency. BC, the technology underpinning the Bitcoin
cryptocurrency system, plays a critical role in establishing enhanced security
and privacy across various domains, including the IoT ecosystem. Extensive
international research efforts are currently underway in academia and industry,
exploring the application of blockchain in diverse domains.
The
Fundamental Technology of Blockchain:
A
blockchain comprises two main components:
1. Transaction:
A transaction represents an action initiated by a participant within a
blockchain.
2. Block:
A block is a collection of data that records transactions along with pertinent
details such as sequence and timestamp of creation.
Blockchain
can be classified as either public or private, depending on its scope of use.
In the case of a public blockchain like Bitcoin, all users possess read and
write permissions. However, certain public blockchains restrict access to
either read or write functions. Conversely, a private blockchain limits access
to trusted participants, ensuring the confidentiality of user details. This
confidentiality is particularly relevant in governmental institutions and
related entities. One crucial advantage of blockchain lies in its transparency,
as each participating entity possesses an updated and complete record of
transactions and associated blocks. However, the data within the blocks are
encrypted using a private key, rendering general interpretation impossible.
Decentralization
is another significant advantage offered by blockchain technology. It involves:
-
Distributing data (transactions and associated blocks) across multiple
participants in the network rather than relying on a single device.
- Not
depending on the approval of a single authority or adherence to specific rules,
but instead establishing trust through consensus.
-
Ensuring the overall security of the blockchain ecosystem by allowing only the
addition of new blocks while preserving the immutability of previous blocks.
For a new
transaction to be incorporated into the existing blockchain, it must receive
validation from all participants within the blockchain ecosystem. This
validation process entails applying a specific algorithm defined by the
blockchain system. Once a group of transactions receives approval, they are
bundled together into a block. The newly formed block is then shared with all
participating nodes to be appended to the existing chain of blocks in the
blockchain ledger. Each block contains a unique digital fingerprint, referred
to as a hash, of the preceding block. Figure 1 provides a step-by-step
illustration of blockchain transactions. When Bob initiates a monetary
transaction to Alice, the transaction is broadcasted to all relevant parties.
The transaction must be deemed valid by the blockchain system, and upon
approval, it is combined with the hash of the succeeding block and integrated
into a new block, which is subsequently appended to the existing chain of
blocks in the blockchain ledger.
Expanding
the Use of Blockchain beyond Cryptocurrency:
While the
internet is undeniably a powerful tool in the digital era, it is not without
significant security and privacy flaws, particularly in the fields of fintech
and e-commerce. The advent of blockchain, the technology behind cryptocurrency,
has revolutionized peer-to-peer transactions by eliminating the need for
intermediaries such as commercial banks. Blockchain effectively validates
transactions, maintains permanent records, and guarantees the anonymity of user
identification information. It accomplishes this by aggregating all
transactions into a digitally coded ledger, thereby fostering trust and
collaboration within a decentralized network system.
Blockchain
represents an exemplary "Trust Machine" paradigm, with Bitcoin
serving as just one noteworthy application. The potential of blockchain
stretches well beyond transaction verification, encompassing domains like smart
deeds, decentralized organizations, and government services. In the cloud
environment, blockchain technology has the capacity to enhance the security and
privacy of data provenance through the provision of decentralized architectures
like "ProvChain." The adoption of blockchain in IoT ecosystems can
yield improvements in scalability, security, reliability, and privacy,
ultimately establishing trust among participating machines and mitigating the
risks associated with single points of failure. However, the current
limitations in processing power of IoT devices necessitate further research and
exploration.
The
capacity of blockchain to ensure and maintain trust has captured the attention
of various sectors. NASDAQ utilizes its "Linq Blockchain" to record
private securities transactions, while the Depository Trust & Clearing
Corporation (DTCC) collaborates with Axoni on financial settlement services.
Regulatory bodies are equally intrigued by blockchain's potential for secure,
private, and traceable real-time transaction monitoring.
The
Future of Blockchain:
According
to the Gartner Hype Cycle for Emerging Technologies 2017 [ it is relevant as we
are considering it for study only], as depicted in Figure 2, blockchain
technology currently finds itself at the "Peak of Inflated Expectation,"
with an anticipated plateau within a span of "two to five years,"
deviating from the initial prediction of "five to ten years." This
shift can be attributed to the widespread adoption of blockchain in diverse
applications beyond cryptocurrency. This adoption empowers citizens in
developing countries by enabling e-governance, identity management, asset
ownership transfer, healthcare, financial inclusion, and other commercial
endeavors. However, the realization of this potential is contingent upon
national political decisions.
Conclusion:
The
application of blockchain technology has transcended its initial purpose in
cryptocurrency generation and transactions. Its inherent properties, which
include security, privacy, traceability, data provenance, and time-stamping,
have led to its adoption in diverse types of transactions, whether involving
humans or machines. With the global rise of the Internet of Things, the
decentralized application of blockchain across the established internet
infrastructure ensures data redundancy and survivability. In developing
nations, where trust is a significant concern, blockchain serves as a vital
component that bolsters the security and trust lacking in the pre-existing
internet. While blockchain technology is still in the process of maturing, with
an estimated timeline of five years, novel applications continue to be
implemented on a global scale.
Hashtag/Keyword/Labels:
#BlockchainTechnology #Bitcoin
#Cryptocurrency #DigitalLedger #ProofOfWork #Decentralization #Security
#Privacy #IoT #TrustMachine
References/Resources:
1. Nakamoto, S. (2008). Bitcoin:
A Peer-to-Peer Electronic Cash System. Retrieved from https://bitcoin.org/bitcoin.pdf
2. Tapscott, D., & Tapscott,
A. (2016). Blockchain Revolution: How the Technology Behind Bitcoin Is Changing
Money, Business, and the World. Penguin.
3. Underwood, S. (2016).
Blockchain beyond bitcoin. Communications of the ACM, 59(11), 15-17.
4. Liang, X., Shetty, S., Tosh,
D., Kamhoua, C., Kwiat, K., & Njilla, L. (2017). ProvChain: A
Blockchain-Based Data Provenance Architecture in Cloud Environment with
Enhanced Privacy and Availability. In IEEE Transactions on Services Computing,
10(4), 579-592.
5. Androulaki, E., Barger, A.,
Bortnikov, V., Cachin, C., Christidis, K., De Caro, A., ... & Muralidharan,
S. (2018). Hyperledger fabric: a distributed operating system for permissioned
blockchains. In Proceedings of the Thirteenth EuroSys Conference (pp.
30:1-30:15).
For more such Seminar articles click index
– Computer Science Seminar Articles list-2023.
[All images are taken from Google
Search or respective reference sites.]
…till
next post, bye-bye and take care.
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