S.

Sri Venkata Kaviya

B sc (Prog) Physical Science with Computer Science, First year

REPORT ON BLOCKCHAIN TECHNOLOGY

(Source: www.blockchain.gov.in)

Blockchain is a shared immutable ledger that facilitates the process of recording transactions and
tracking assets across a business network.
With the help of Blockchain technology, currency as well as anything can be converted into digital
format and stored. It is an exchange process which works on data blocks. In this, one block is
connected to another block. These blocks cannot be hacked. Blockchain technology aims to keep
documents digitally secure.
Blockchain was first proposed in 1991 as a research project, but in the year 2009, Blockchain was
used in bitcoin. Bitcoin is a cryptocurrency which is built on the basis of Block technology.
Blockchain has since been used in the creation of various cryptocurrencies, decentralized finance
applications, non-fungible tokens and smart contracts.

PROPERTIES OF BLOCKCHAIN
• Auto execution of digital contracts.
• All records are individually encrypted.
• Data is decentralized and managed by multiple participants.
• A transaction timestamp is recorded on a block.
• Any validated records are irreversible and cannot be changed.
• All trusted participants have a copy of the ledger for complete transparency.
• All network participants agree to the validity of each of the records.

TYPES OF BLOCKCHAIN
1. Public Blockchain: A public blockchain is a non-restrictive, permission-less distributed
ledger system.
 2. Private Blockchain: A private blockchain is a restrictive or permission blockchain operative
only in a closed network.
3. Consortium Blockchain: A consortium blockchain is a semi-decentralized type where more
than one organization manages a blockchain network.
4. Hybrid Blockchain: A hybrid blockchain is a combination of the private and public
blockchain. It uses the features of both types of blockchains that is one can have a private
permission-based system as well as a public permission-less system.

WORKING MODEL OF BLOCKCHAIN TECHNOLOGY (PDS)

Subsidised ration distribution takes place each month to the ration card holders across the state
under public distribution system (PDS). PDS involves procurement from the farmers till distribution
to ration card beneficiaries comprising different entities in between such as central and state
agencies, millers, transporters, shop owners and then finally to the beneficiaries.
A major feature of the PDS is the general lack of accountability down the entire supply chain,
leaving the leakages that occur at different points completely unaccounted. Blockchain technology
can be useful in managing supply chain effectively using distributed ledger technology. Entire
supply chain starting from procurement till disbursement can be part of blockchain
Use of blockchain can remove at least delay in payment to the farmers based on procurement
done by the miller. Since miller is responsible for the collection and stock initially unless the
transaction is approved by the farmer, miller cannot register the quantity collected. This makes
each transaction non-repudiation.

The POC application for PDS is developed as a python web application with three stakeholders
namely miller, farmer and the admin user. The application interacts with the blockchain node and
to the RDBMS and is deployed in Docker container. The POC covers the procurement process
of PDS which involve the miller registration with the government and the farmer registration with
the miller. The registration module writes the registration details to the blockchain as well as to
the database. The data updating modules read the existing data from the block chain and write
back the updated details. The super user module provides option to read and compare the data
from both the database and the blockchain which in turn helps to identify any data update
anomalies.