Blockchain Technology: Security and Risk Management

Security and Risk Management

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Blockchain technology................................................................................................................1
Working of blockchain................................................................................................................1
Applications of blockchain..........................................................................................................1
Illustrate ways in which CIA can be attained in blockchain.......................................................1
Describe ways in which hashing technique furnishes execution of blocks in blockchain..........1
Capabilities as well as restrictions of blockchain technology.....................................................1
Future of blockchain technology in banking industry.................................................................1
Conclusion.......................................................................................................................................1
REREFENCES................................................................................................................................2

Introduction
The set of practices which are intended for keeping data secured from unauthorised
alterations or access is referred to as information security. They refers to processes as well as
methodologies that are designed as well as executed for protecting electronic or any other kind of
confidential data (Al Amiri and et. al, 2020). Blockchain is defined as distributed and
decentralised ledger technology which is liable for recording provenance of digital entities. This
report will provide an insight into different aspects related with blockchain technology, its
working, aspects related with security and hashing techniques. Furthermore, limitations and
assets will also be provided along with its future.
Blockchain technology
The structure that is liable for storing transactional records (known as blocks) of public
within numerous databases (called chain) in network which is connected via peer to peer nodes is
referred to as blockchain. It is a transparent and publicly accessible ledger which permits to
securely transfer ownership of units of values through the usage of public key encryption.
Basically, it is distributed database that is liable for recording all digital transactions and events
which have been executed as well as shared among different parties involved within this. With
respect to security concerns, each transaction is being verified by different parties of system (Bai
and Sarkis, 2020). This implies that all the transactions are recorded in digital ledger which is
then distributed over a network. This can be further utilised for different kinds of asset like cars,
land and many others whose record has to be maintained as transaction within blockchain. It is a
revolutionary as well as promising technology as it aids within reduction of risks, bringing in
transparency and stamps out fraud within scalable manner for myriad uses.
Working of blockchain
The system of network that comprises of multiple computers or nodes that acts as
distributed network via internet is named as blockchain. Each node within this comprises of
separate copy of database or ledger (Bai, Cordeiro and Sarkis, 2020). The transaction history can
be accessed as per requirements and this can be updated each time a node adds up block (new
transaction) into chain. The steps involved within working are specified beneath:
i. Suppose two nodes within blockchain network named node A and node B is looking
forward to make new transaction.
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ii. This transaction will only occur in case all other participating nodes within network
verify that as legitimate transaction (Dubey and et. al, 2020). Therefore, each node will
attain request to verifying transaction which is taking place among A and B.
Illustration 1: Working of Blockchain
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