Course title: Information Security.

Presentation title: Blockchain Technology

Presenting to: Respected Mazhar Shahid Sahib
 Blockchain Itroduction

Blockchain Definition:
A blockchain is a distributed database that is shared among the nodes of a computer network. As a
database, a blockchain stores information electronically in digital format. Blockchains are best known
for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure and
decentralized record of transactions.

Blockchain Overview
Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and
tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible
(intellectual property, patents, copyrights, branding). Virtually anything of value can be tracked and
traded on a blockchain network, reducing risk and cutting costs for all involved.
 History of Blockchain

In recent years you may have noticed many business around the world integrating block chain
technology. The first prototype of a block chain is dated back to the early 1991 computer scientist
Stuart Haber and W Scott stornetta applied cryptography techniques in a chain of blocks to secure
digital document from Data tampering.
In 2009 Satoshi Nakamoto develop Bitcoin with the help of blockchain technology.
 Benefits of Blockchain

1. Enhanced security
Your data is sensitive and crucial, and blockchain can significantly change how your critical information
is viewed. By creating a record that can’t be altered and is encrypted end-to-end, blockchain helps
prevent fraud and unauthorized activity.

2. Greater transparency
Without blockchain, each organization has to keep a separate database. Because blockchain uses a
distributed ledger, transactions and data are recorded identically in multiple locations. All network
participants with permissioned access see the same information at the same time, providing full
transparency. All transactions are immutability recorded, and are time- and date-stamped.

3. Instant traceability
Blockchain creates an audit trail that documents the provenance of an asset at every step on its
journey. In industries where consumers are concerned about environmental or human rights issues
surrounding a product or an industry troubled by counterfeiting and fraud this helps provide the proof.
With blockchain, it is possible to share data about provenance directly with customers.
 Benefits of Blockchain

4. Increased efficiency and speed

Traditional paper heavy processes are time consuming, prone to human error, and often requires third-
party mediation. By streamlining these processes with blockchain, transactions can be completed
faster and more efficiently. Documentation can be stored on the blockchain along with transaction
details, eliminating the need to exchange paper.

 5. Automation.
Transactions can even be automated with “smart contracts,” which increase your efficiency and speed
the process even further. Once pre-specified conditions are met, the next step in transaction or process
is automatically triggered. Smart contracts reduce human intervention as well as reliance on third
parties to verify that terms of a contract have been met.
 Limitation of Blockchain

There is a lot of discussion about blockchain, but people do not know the true value of blockchain and
how they could implement it in different situations.

Today, there are a lot of developers available who can do a lot of different things in every field. But in
the blockchain technology, there are not so many developers available who have specialized expertise
in blockchain technology. Hence, the lack of developers is a hindrance to developing anything on the
blockchain.

In immutable, we cannot make any modifications to any of the records. It is very helpful if you want to
keep the integrity of a record and make sure that nobody ever tampers with it. But immutability also
has a drawback. For example: you have processed payment and need to go back and make an
amendment to change that payment.
 Limitation of Blockchain

As we know, blockchain is built on cryptography, which implies that there are different keys, such as
public keys and private keys. When you are dealing with a private key, then you are also running the
risk that somebody may lose access to your private key. It happens a lot in the early days when bitcoin
wasn’t worth that much. People would just collect a lot of bitcoin, and then suddenly forgot what the
key was, and those may be worth millions of dollars today.

Blockchain like bitcoin has consensus mechanisms which require every participating node to verify the
transaction. It limits the number of transactions a blockchain network can process. So bitcoin was not
developed to do the large scale volumes of transactions that many of the other institutions are doing.
Currently, bitcoin can process a maximum of seven transactions per second.

In the blockchain, we know that a block can be created in every 10 minutes. It is because every
transaction made must ensure that every block in the blockchain network must reach a common
consensus. Depending on the network size and the number of blocks or nodes involved in a blockchain,
the back-and-forth communications involved to attain a consensus can consume a considerable
amount of time and resources.
 Types of Blockchain

Public:
Public block chains are permissionless in nature, allow anyone to join, and are completely
decentralized. To date, public block chains are primarily used for exchanging and mining
cryptocurrency. You may have heard of popular public block chains such as Bitcoin, Ethereum, and Lite
coin.

Private:
Private block chains are often referred to as ‘permissioned’ block chains. Unlike public block chains,
where anyone can download the software, form a node, view the ledger and interact with the block
chain, private block chains are often run and operated by an entity (the “trusted intermediary”).

Hybrid:
A hybrid block chain is a unique type of block chain technology that amalgamates components of both
public and private block chain or tries to utilise.
 Application of Block Chain

1. Money Transfers:
The original concept behind the invention of blockchain technology is still a great application. Money
transfers using blockchain can be less expensive and faster than using existing money transfer services.
This is especially true of cross border transactions, which are often slow and expensive. Even in the
modern U.S. financial system, money transfers between accounts can take days, while a blockchain
transaction takes minutes.

3. Real Estate:
Real estate transactions require a ton of paperwork to verify financial information and ownership and
then transfer deeds and titles to new owners. Using blockchain technology to record real estate
transactions can provide a more secure and accessible means of verifying and transferring ownership.
That can speed up transactions, reduce paperwork, and save money.

2. Financial Exchanges:
Many companies have popped up over the past few years offering decentralized cryptocurrency
exchanges. Using blockchain for exchanges allows for faster and less expensive transactions. Moreover,
a decentralized exchange doesn't require investors to deposit their assets with the centralized
authority, which means they maintain greater control and security. While blockchain based exchanges
primarily deal in cryptocurrency, the concept could be applied to more traditional investments as well.
 Application of Block Chain

4. Secure Personal Information:

Keeping data such as your Social Security number, date of birth, and other identifying information on a
public ledger (e.g., a blockchain) may actually be more secure than current systems more susceptible
to hacks. Blockchain technology can be used to secure access to identifying information while
improving access for those who need it in industries such as travel, healthcare, finance, and education.

5. Data Storage:
Adding blockchain technology to a data storage solution can provide greater security and integrity.
Since data can be stored in a decentralized manner, it will be more difficult to hack into and wipe out
all the data on the network, whereas a centralized data storage provider may only have a few points of
redundancy. It also means greater access to data since access isn't necessarily reliant on the operations
of a single company. In some cases, using blockchain for data storage may also be less expensive.
 How Blockchain Can be Hacked?
Since blockchain is supposed to be extremely secure and unalterable, many individuals
have dubbed this technology as “unbackable”. However, recent incidents have
unfortunately shown that hackers can access blockchains in certain situations. 

Phishing attacks:
Phishing is a scamming attempt to attain a user 's credentials. Fraudsters send wallet key owners
emails designed to look as though they're coming from a legitimate source. The emails ask users for
their credentials using fake hyperlinks. Having access to a user's credentials and other sensitive
information can result in losses for the user and the blockchain network.

Routing attacks:
Blockchains rely on real-time, large data transfers. Hackers can intercept data as it's transferring to
internet service providers. In a routing attack, blockchain participants typically can't see the threat, so
everything looks normal. However , behind the scenes, fraudsters have extracted con ‰dential data or
currencies.

Sybil attacks:
In a Sybil attack, hackers create and use many false network identities to flood the network and crash
the system. Sybil refers to a famous book character diagnosed with a multiple identity disorder.
 How Blockchain Can be Hacked?

51% attacks:
Mining requires a vast amount of computing power, especially for large-scale public blockchains. But if
a miner, or a group of miners, could rally enough resources, they could attain more than 50% of a
blockchain network's mining power. Having more than 50% of the power means having control over
the ledger and the ability to manipulate it.
Note: Private blockchains are not vulnerable to 51% attacks

Note: Private blockchains are not vulnerable to 51% attacks

Thank You.