Blockchain for Real World Applications

Blockchain for Real World Applications
Contents
Illustrations
Foreword
Preface
1 Introduction
2 Distributed Ledger Technology
2.1 Different Types of Distributed Ledger Technology
2.1.1 Blockchain
2.1.2 Directed Acyclic Graph
2.1.3 Hashgraph
2.1.4 Holochain
2.1.5 Tempo (Radix)
2.2 Chronological Evolution
2.2.1 Blockchain 1.0
2.2.2 Blockchain 2.0
2.2.3 Blockchain 3.0
2.2.4 Blockchain 4.0
2.3 Blockchain Architecture
2.3.1 Block
2.3.2 Hash Function
2.3.3 Encryption
2.3.3.1 Problems
2.3.4 Keys: Public and Private
2.3.5 Decentralized Identifier
3 Blockchain Ecosystem
3.1 Working of Blockchain
3.2 Key Characteristics
3.2.1 Decentralization
3.2.2 Persistence
3.2.3 Anonymity
3.2.4 Auditability
3.3 Unspent Transaction Output
3.4 Classification of Blockchain on Access Management
3.4.1 Public Blockchain
3.4.2 Private Blockchain
3.4.3 Consortium Blockchain
3.5 Consensus
3.5.1 Proof-of-Work
3.5.2 Proof-of-Stake
3.5.3 Peercoin
3.5.4 Practical Byzantine Fault Tolerance
3.5.5 Delegated Proof-of-Stake
3.5.6 Ripple
3.5.7 Tendermint
3.5.8 Consensus Algorithms: A Comparison
3.5.8.1 Node Identity Management
3.5.8.2 Energy Saving
3.5.8.3 Tolerated Power of Adversary
3.5.9 Advances in Consensus Algorithms
3.6 Payment Verification in Blockchain
3.6.1 Simple Payment Verification
3.6.1.1 Key Features
3.6.2 Full Payment Verification
3.6.2.1 Key Features
3.7 Hashgraph
3.7.1 Elements of Hashgraph
3.7.2 Diagrammatic Representation
3.7.3 How Does Hashgraph Work?
3.8 Scalability
4 Transactions in Bitcoin Blockchain
4.1 Coinbase Transactions
4.1.1 Structure
4.1.2 Key Features of Coinbase Transactions
4.1.3 Computation of Transaction Value
4.2 Transactions Involving Fiat Currency
4.2.1 Cryptocurrency Exchanges
4.2.2 Bitcoin Debit Card
4.2.3 Bitcoin ATMs
4.2.4 Metal Pay
4.2.5 Peer-to-Peer Exchanges
4.3 Top Fiat Currencies for Bitcoin Transactions
4.3.1 US Dollar
4.3.2 Japanese Yen
4.3.3 Euro
4.3.4 Korean Won
4.3.5 Chinese Yuan
4.3.6 Indian National Rupee
4.4 Price Determination for Bitcoin in Transactions
4.4.1 Cost of Mining Bitcoin
4.4.2 Market Supply and Demand
4.4.3 Bitcoin Rewards
4.4.4 Exchanges
4.4.5 Competing Cryptocurrencies
4.4.6 Regulatory Provisions
4.4.7 Internal Governance
4.4.8 Value of Bitcoin
4.4.9 Can the Bitcoin Price Be Zero?
4.4.10 Why Is Bitcoin’s Price Volatile?
4.5 Controlling Transaction Costs in Bitcoin
4.5.1 History of Bitcoin Cash
4.5.2 Concerns about Bitcoin Cash
4.5.3 Bitcoin Cash Core Features
4.5.4 Utility of Bitcoin Cash
4.5.5 Advancements over Bitcoin
4.5.5.1 Maximum Block Size
4.5.5.2 Cost Efficiency
4.5.5.3 Smart Contract Support
4.5.5.4 Issue of Token
4.5.5.5 Nonfungible Tokens
4.5.5.6 No Replacement-by-Fee
4.5.5.7 Schnorr Signatures
4.5.5.8 Difficulty Adjustment Algorithm
4.5.6 Bitcoin Cash – Ease of Use
4.5.7 Challenges to Bitcoin Cash
5 Ethereum and Hyperledger Fabric
5.1 Early Attempts to Program Cryptocurrencies
5.2 Smart Contracts
5.3 Working of Ethereum
5.3.1 Gas
5.3.2 Ether
5.4 Hyperledger
5.5 Working of Hyperledger
5.5.1 Components
5.5.2 Workflow
5.5.2.1 Proposal
5.5.2.2 Endorsement
5.5.2.3 Transmission to Ordering Service
5.5.2.4 Updating the Ledger
5.5.3 Industrial Applications of Hyperledger Fabric
5.5.3.1 Production
5.5.3.2 B2B Contract
5.5.3.3 Supply Chain
5.5.3.4 Asset Depository
5.5.3.5 Trading and Asset Transfer
5.5.3.6 Insurance
5.5.3.7 Real Estate
5.5.4 Benefits of Hyperledger Fabric
5.5.4.1 Open Source
5.5.4.2 Private and Confidential
5.5.4.3 Access Control
5.5.4.4 Chaincode Functionality
5.5.4.5 Performance
5.5.4.6 Modular Design
5.6 Ethereum Versus Hyperledger
5.6.1 Purpose
5.6.2 Cryptocurrency
5.6.3 Participation
5.6.4 Privacy
5.6.5 Governance
5.6.6 Computer Code
5.6.7 Smart Contracts
5.6.8 Consensus Mechanism
5.6.9 Rate of Transactions
5.6.10 Use-cases
5.7 Decentralized Applications
5.7.1 Merits of Decentralized Applications
5.7.1.1 Zero Downtime
5.7.1.2 Privacy
5.7.1.3 Resistance to Censorship
5.7.1.4 Absolute Data Integrity
5.7.2 Demerits of Decentralized Applications
5.7.2.1 Maintenance
5.7.2.2 Performance Overhead
5.7.2.3 Network Congestion
5.7.2.4 User Experience
5.7.2.5 Centralization
5.8 Tokens
6 Identity as a Panacea for the Real World
6.1 Identity Systems
6.1.1 Contemporary ID Systems
6.2 Centralized Model
6.2.1 A Case Study of World’s Largest Biometric ID System – Aadhaar
6.2.1.1 Salient Features of Aadhaar
6.2.1.2 Biometric and Demographic Standards
6.2.1.3 Enrollment Set-up
6.2.1.4 Entities and Their Roles
6.2.1.5 Process of Authentication
6.2.1.6 Budget and Outlay
6.2.1.7 Enrollment Status and Saturation
6.3 Cost and Benefits
6.3.1 Merits
6.3.2 Demerits
6.3.2.1 Waste of Resources
6.3.2.2 Lack of Neutrality
6.3.2.3 Technical Glitches
6.3.2.4 Security Procedures
6.3.2.5 Unauthorized Access
6.3.2.6 Absence of Data Protection Act
6.3.2.7 Involvement of Private Players
6.3.2.8 Freedom of Choice as an Illusion
6.3.2.9 Implicit Coercion
6.4 Quest for One World – One Identity
7 Decentralized Identities
7.1 Identity Models
7.1.1 Centralized Identity
7.1.2 Federated Identity
7.1.3 User-centric Identity
7.1.4 Self-sovereign Identity
7.2 Blockchain-based Solutions
7.3 Identity Management
7.3.1 Current Challenges
7.3.1.1 Absence of Compatibility
7.3.1.2 Identity Theft
7.3.1.3 KYC Onboarding and Weak Authentication Protocols
7.3.1.4 Lack of Control
7.4 Identity Storage | Interplanetary File System
7.4.1 How Does IPFS Access the Documents?
7.4.2 Transactions Involved in Accessing Documents on IPFS
7.4.3 IPFS Commands
7.5 Biometric Solutions
7.5.1 Fingerprint Verification
7.5.2 Iris Scan
7.5.3 Vascular Technology
7.5.4 Palm Vein Pattern
7.5.5 Facial Recognition
7.5.1.1 Verification of Government ID
7.5.1.2 Verification of a User
7.5.1.3 Creation of a Digital ID
7.5.2 System Overview
7.5.2.1 Identify Creator
7.5.2.2 Identity User
7.5.2.3 Identity Manager
7.5.2.4 Identity Device
7.5.3 Blockchain Identity Protocol
7.5.3.1 Creation of Digital ID
7.5.3.2 Use of Digital ID
7.5.3.3 Digital ID Management
7.5.4 Security Audit
7.5.4.1 Binding
7.5.4.2 Privacy
7.5.5 Authentication Protocol
7.6 Identity Access
7.6.1 Identity Encryption
7.6.2 Zero Knowledge Proof
7.6.3 Revocation
7.7 Merits of a Proposed System
7.7.1 Seamless Navigation
7.7.2 Accessibility
7.7.3 Easy and Secure
7.7.4 Decentralized Public Key Infrastructure
7.7.5 Decentralized Storage
7.7.6 Manageability and Control
7.7.7 Data Portability
7.7.8 Prevention of Identity Theft
7.8 Disadvantages of the Proposed System
7.8.1 Privacy Leakage
7.8.2 Selfish Mining
7.8.3 Admin Conflicts
7.9 Challenges
7.9.1 Storage Optimization and Redesign
7.9.2 Privacy Protection
7.9.3 Random Beacons and Timestamps
7.10 Solutions with Hyperledger Fabric
7.10.1 Warning Pointers
7.10.2 Safety Protocols
8 Encryption and Cybersecurity
8.1 Cryptography
8.1.1 Different Types of Cryptography
8.1.1.1 Symmetric Key Cryptography
8.1.1.2 Asymmetric Key Cryptography
8.1.1.3 Hash Functions
8.1.2 Cryptographic Schemes
8.1.2.1 Simple Substitution Cipher
8.1.2.2 Caesar Cipher
8.1.2.3 Vigenère Cipher
8.1.2.4 Transposition Cipher
8.2 Playfair Cipher
8.2.1 Encryption Algorithm
8.2.1.1 Step 1 – Generate Squares (5 * 5)
8.2.1.2 Step 2 – Algorithm to Encrypt Plaintext
8.2.2 Decryption Algorithm
8.2.2.1 Step 1 – Generate Squares (5 * 5)
8.2.2.2 Step 2 – Algorithm to Decrypt the Ciphertext
8.2.3 Advantages and Disadvantages
8.2.3.1 Advantages
8.2.3.2 Disadvantages
8.3 Hill Cipher
8.3.1 Substitution Scheme
8.3.1.1 Encryption
8.3.1.2 Decryption
8.4 RSA Algorithm in Cryptography
8.4.1 Working Mechanism
8.4.1.1 Generating the Public Key
8.4.1.2 Generating a Private Key
8.5 Multiple Precision Arithmetic Library
8.5.1 GNU Multiple Precision Arithmetic Library
8.5.2 RSA Algorithm Implementation Using GMP Library
8.5.3 Weak RSA Decryption with Chinese Remainder Theorem
8.6 SHA-512 Hash in Java
8.7 Cybersecurity
8.7.1 Common Cyberattacks
8.7.1.1 Denial-of-Service Attacks
8.7.1.2 Malware
8.7.1.3 Man-in-the-Middle Attack
8.7.1.4 Phishing
8.7.1.5 Structured Language Query Injection
8.7.1.6 Latest Cyberthreats
8.7.2 Key Cybersecurity Features
8.7.3 Blockchain for Cybersecurity
8.7.4 Pros and Cons of Blockchain in Cybersecurity
8.7.4.1 Pros
8.7.4.2 Cons
8.7.5 Real-world Examples
8.7.5.1 Australian Government
8.7.5.2 Barclays
8.7.5.3 Chinese Military
8.7.5.4 Cisco
8.7.5.5 Coinbase
8.7.5.6 Colorado State
8.7.5.7 Founders Bank
8.7.5.8 Health Linkage
8.7.5.9 JP Morgan
8.7.5.10 Mobile Coin
8.7.5.11 Philips Healthcare
8.7.5.12 Santander Bank
8.7.5.13 Wall Street
9 Data Management
9.1 Data Science
9.1.1 Challenges for Data Scientists
9.1.2 Blockchain-based Solutions
9.2 Education and Employment Verification
9.2.1 Existing Verification Process
9.2.2 Blockchain as an Option
9.2.2.1 Enrollment Process
9.2.2.2 Validation Process
9.2.2.3 Double Layer Encryption
9.2.3 Learner’s Console
9.2.4 Assessment Portal
9.2.5 Background Verification
9.2.5.1 Maintenance of Track Record
9.2.5.2 CV Validation
9.2.5.3 Opportunities for Job Aspirants
9.2.6 Bureaucratic Disintermediation
9.2.7 Advantages of Blockchain-based Verification
9.3 Health Care
9.3.1 Potential Uses in Health Care
9.3.1.1 Digital Health Records
9.3.1.2 Drug Supply Chain
9.3.1.3 Health Insurance
9.3.1.4 Remote Health Monitoring
9.3.1.5 Organ Transplantation
9.3.1.6 Credential Verification
9.3.2 Real-world Use-Cases
9.3.2.1 Akiri | Foster City
9.3.2.2 Avaneer Health
9.3.2.3 Block Pharma
9.3.2.4 BurstIQ
9.3.2.5 Centers for Disease Control and Prevention
9.3.2.6 Chronicled
9.3.2.7 Coral Health
9.3.2.8 Embleema
9.3.2.9 Factom
9.3.2.10 Guardtime
9.3.2.11 MedicalChain
9.3.2.12 Patientory
9.3.2.13 Professional Credentials Exchange
9.3.2.14 RoboMed
9.3.2.15 Tierion
9.4 Genomics
9.4.1 Real World Use-Cases
9.4.1.1 doc.ai
9.4.1.2 EncrypGen
9.4.1.3 Nebula Genomics
9.5 Food Supply Chain
9.6 Real Estate
9.6.1 Title Management
9.6.2 Smart Assets
9.6.3 Trust and Transparency
9.6.4 Financing
9.6.5 Cost and Efficiency
9.6.6 Tokenization
9.6.7 Pros and Cons of Tokenization
9.7 Crowd Operations
9.7.1 Decentralized Voting (Electoral Process)
10 Banking and Finance
10.1 Banking and Investment
10.1.1 Identity Authentication
10.1.2 Banking Charges
10.1.3 Fast Payments
10.1.4 Withdrawal and Settlements
10.1.5 Credit and Loans
10.1.6 Transfer of Assets
10.1.7 Peer-to-Peer Transfers
10.1.8 Hedge Funds
10.1.9 Fundraising
10.1.10 Enhanced Security
10.1.11 Accountability
10.2 Trade Finance
10.2.1 Smart Contracts
10.2.2 Enterprise Resource Planning
10.2.3 Data Repositories and Registries
10.2.4 Tokenization of Fiat Money
10.2.5 Lightning Network
10.2.6 Pre- and Post-trade Processes
10.2.7 Accounts and Audit
10.2.8 Latent Benefits
10.2.8.1 Decentralization
10.2.8.2 Information Transmission
10.2.8.3 Incorporation of IoT
10.2.8.4 Defense Mechanism
10.2.8.5 Transparency
10.2.8.6 Disintermediation
10.2.8.7 Corporate Lending
10.2.8.8 Cost Efficiency
10.2.8.9 Loyalty Rewards
10.2.9 Impending Challenges and Remediation
10.2.9.1 Security
10.2.9.2 Storage Capacity
10.2.9.3 Block Time
10.2.9.4 Privacy
10.2.9.5 Cyberattacks
10.2.9.6 Robustness
10.2.9.7 Legal Enforcement
10.3 Auction Process
10.4 Decentralized Finance
10.4.1 DeFi Financial Products
10.4.2 Total Value Locked in DeFi
10.4.3 Use Cases for Decentralized Finance
10.4.3.1 Asset Management
10.4.3.2 Tokenization
10.4.3.3 Tokenized Derivatives
10.4.3.4 Decentralized Exchanges
10.4.3.5 Decentralized Autonomous Organization
10.4.3.6 Data Analytics and Assessment
10.4.3.7 Payments
10.4.3.8 Lending and Borrowing
10.4.3.9 Identity
10.4.3.10 Know Your Transactions
10.4.3.11 Insurance
10.4.3.12 Margin Trading
10.4.3.13 Marketplace
10.4.3.14 Gaming
10.4.3.15 Yield Farming
10.4.4 Ethereum as a DeFi Platform
10.4.4.1 Fast Money Transfer around the World
10.4.4.2 Stream Money across the Globe
10.4.4.3 Programmable Money
10.4.4.4 Access Stable Currencies
10.4.4.5 Borrowing
10.4.4.6 Lending
10.4.4.7 No-loss Lottery
10.4.4.8 Exchange Tokens
10.4.4.9 Advanced Trading
10.4.4.10 Fund Aggregation
10.4.4.11 Portfolio Management
10.4.4.12 Quadratic Funding
10.4.4.13 Crowd Funding
10.4.4.14 Insurance
10.5 Prediction Markets
10.5.1 Scope for Decentralized Markets
10.5.2 Real World Examples of Prediction Markets
10.5.2.1 Augur
10.5.2.2 TotemFi
10.5.2.3 Finance.vote
10.5.2.4 OptionRoom
10.5.2.5 Polymarket
10.5.3 Summary
11 Growing Landscape of Blockchain
11.1 Blockchain Applications in Real World: An Overview
11.2 e-Governance
11.3 Supply Chain Management
11.3.1 Data Logging on Ledger
11.3.2 Access to a Ledger
11.4 e-Commerce
11.4.1 Backend
11.4.2 Smart Contracts
11.4.3 Ethereum Front-end
11.4.4 Currency Store
11.5 Distributed Resources and Internet of Things
11.5.1 Tracking and Compliance
11.5.2 Delivery Consignment
11.5.3 Maintenance Record
11.6 Decentralized Streaming
11.6.1 Operative Mechanism
11.6.1.1 Orchestrator
11.6.1.2 Delegators
11.6.1.3 Participation Rewards
11.6.2 Video Mining
11.6.2.1 Dual Mining
11.6.2.2 Trade-offs and Considerations
11.6.2.3 Earnings
11.6.2.4 Rewards
11.6.2.5 Fees
11.6.2.6 Costs
11.6.2.7 Per Pixel Pricing
11.6.2.8 Probabilistic Micropayments
11.6.2.9 Automatic Price Adjustments
11.6.2.10 Transcoding Pools
11.6.2.11 Private Pools
11.6.2.12 Public Pools
11.6.2.13 Selection
11.6.2.14 Economic Security
11.6.2.15 Latency
11.6.2.16 Other Considerations
12 Functional Mechanism
12.1 Software Requirements
12.2 Installing a Mobile Application
12.3 Fetching or Uploading the Documents
12.4 Government or Third-party Access
12.5 Credibility Through Smart Contracts
12.6 User-Optimized Features
Appendices
Glossary
Index
EULA