Report on Blockchain Technology: Features, Security, and Transactions

This report provides an overview of blockchain technology, focusing on its key features such as shared ledgers, immutable databases, and the role of blockchain nodes. It explains how transactions are time-stamped and recorded in blocks, highlighting the platform's function as a secure, decentralized transaction database. The report also discusses blockchain security, noting the difficulty of hacking a distributed network, as well as disadvantages like currency counterfeiting and double spending. Finally, it touches on the network protocol stack and salient features of transactions, emphasizing the use of mobile wallets and miner nodes for creating blocks. Desklib offers students access to this report, along with a wealth of other solved assignments and past papers, to aid in their studies.

BLOCKCHAIN TECHNOLOGY

SHARED LEDGER
This is the basic feature of a block chain.
Shared ledger is a type of account book
where business transaction can be
recorded.
Shared ledger is often termed as
distributed ledger[1].

Immutable database
Block chain may be viewed as
database of immutable information
for every transaction replicated on
servers and this maintained by
network of computers with no
central authority [2].
Information is organized so that
they can be updated and accessed
easily.

Block chain nodes
Peer-to-peer networking model
is implemented in block chain
[3].
No need for special server
node.
Services are consumed equally
by each node. Nodes follow
consensus rules.
Upgraded copy of database is
kept by each node.

Block chain Transactions
Transactions in block chain are
time stamped.
For the implementation phase
two records are there- blocks
and transactions.
Transaction can be created by
mobile wallets or any other
client application.
Transactions hold business data.
Sequence of transactions are
recorded by blocks.

Block chain Platform
Platform functions like a
transaction database.
It runs on distributed servers.
Nodes power the decentralized
transaction system [4].

Block chain platform
Transaction database is designed as a
secured ledger.
All nodes run full stack and shares
the application.
One of the advantage is that if one
node runs block chain software then
it is able to run entire block chain
locally.

Block chain Security
Financial information is
stored in network of
computers and this fact
make hacking more
difficult.
Hacking one server is not
enough. A network needs
to be compromised for a
cyber criminal to falsify
transactions.

Block chain disadvantage
Currency counterfeiting is one
of the major disadvantages.
There is a term called double
spending.
There is also double spending
in Bit coin where a user is
able to fraud the system by
spending same set of Bit coins
in two different transactions.

Network protocol stack
Nodes are booted up and
once they are ready, they
perform a peer discovery to
connect a valid node over
TCP.
Message exchange in block
chain in-between nodes
follows handshake logic.

Salient features of transaction
Any client can transact
with the help of mobile
wallet.
Actual business data is
stored in transactions
in the block chain.
Sequence of
transactions are
recorded in blocks.
Blocks are created by
miner nodes.

References
[1]"Blockchain & Distributed Ledger Technology (DLT)", World Bank,
2018. [Online]. Available:
http://www.worldbank.org/en/topic/financialsector/brief/blockchain-
dlt. [Accessed: 14- Apr- 2018].
[2]"How Data Immutability Works in Blockchain? What Are The
Benefits?", Blockchain Council | Blockchain-council.org, 2018.
[Online]. Available:
https://www.blockchain-council.org/blockchain/data-immutability-
works-blockchain/. [Accessed: 14- Apr- 2018].
[3]Cachin, C., Sorniotti, M.V. and Weigold, T., Blockchain, cryptography,
and consensus, 2016.
[4]Zheng, Zibin, Shaoan Xie, Hongning Dai, Xiangping Chen, and
Huaimin Wang. "An overview of blockchain technology: Architecture,
consensus, and future trends." In Big Data (BigData Congress), 2017
IEEE International Congress on, IEEE, 2017, pp. 557-564