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Blockchain's Inner Mechanisms:
Brief Overview on Hashing, Encryption,
PoW, PoS, NFT, IoT, Cyber Security,
Federated Learning and Hashgraph
S. Rayhan Kabir
Master’s Student,
FTSM, Universiti Kebangsaan Malaysia (UKM);
Lecturer, Dept. of CSE,
Asian University of Bangladesh (AUB)
p126933@siswa.ukm.edu.my; rayhan923@aub.edu.bd
5 July 2023
Last Update: 5 July 2023
https://doi.org/10.5281/zenodo.8115621
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What is Blockchain ?
❖ A blockchain is a Distributed Ledger Technology (DLT) with growing lists of records (blocks) that are
securely linked together via cryptographic hashes.
❖ A blockchain is a decentralized, distributed, and often public, digital ledger consisting of records called blocks
that are used to record transactions across many computers.
❖ Blockchain is a list of records called blocks that store data publicly and in chronological order. The
information is encrypted using cryptography to ensure that the privacy of the user is not compromised, and data
cannot be altered.
❖ Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally
represented as a Merkle tree, where data nodes are represented by leaves).
❖ Blockchains are typically managed by a peer-to-peer (P2P) computer network for use as a distributed ledger,
where nodes collectively adhere to a consensus algorithm protocol to add and validate new transaction blocks.
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Blockchain Process
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What is Distributed Ledger Technology (DLT) ?
❖ The most common form of DLT is the blockchain.
❖ DLT is a platform that uses ledgers stored on separate, connected devices in a network to ensure data
accuracy and security.
❖ In contrast to a centralized database, a DLT does not require a central administrator, and consequently does
not have a single (central) point-of-failure.
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Types of Distributed Ledger Technology (DLT)
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Decentralization vs Distribution in Blockchain
❖ Distributed and decentralized systems are two thing that comes to mind when we talk about blockchain systems.
Even though they are two different systems; however, a decentralized system is a subset of a distributed system.
❖ In blockchain, decentralization refers to the peer-2-peer connection between nodes in a distributed network where
the nodes are independent, but one node becomes dependent on other nodes to verify a transaction (block).
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Features & Four Pillars of Blockchain
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Advantages & Disadvantages of Blockchain
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Types of Blockchain Network
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[1] M. K. Hasan et al., "Evolution of Industry and Blockchain Era: Monitoring Price Hike and Corruption Using BIoT for Smart Government
and Industry 4.0," in IEEE Transactions on Industrial Informatics, vol. 18, no. 12, pp. 9153-9161, Dec. 2022, doi: 10.1109/TII.2022.3164066.
Blockchain Evolution: Blockchain 1.0 to Blockchain 5.0
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How Blockchain Works
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Components of A Blockchain
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Sequence of Blocks in Blockchain
❖ A blockchain network's transactions are composed of sequential groups of data that are packaged together into
“blocks” strung together linearly..
❖ A Genesis Block is the name given to the first block a blockchain network.
❖ This is a chain of blocks linked from the first-ever (the genesis block) to the current one. Each block is linked to
the previous one through unique metadata, creating a secure chain. The linking of blocks to create a chain is
where the name blockchain comes from.
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Cryptographic Hash Function (CHF) or Hashing
❖ CHF or hashing is a hash function process where data is mapped to a fixed-length value (Bit). Hashing is
primarily used for authentication. CHF have many information-security applications, notably in digital
signatures, message authentication codes (MACs), and other forms of authentication.
❖ Blocks hold batches of valid transactions that are hashed and encoded into a Merkle tree. Each block includes the
cryptographic hash of the prior block in the blockchain.
❖ Hashing is not Encryption-decryption. Hashes cannot be decrypted because they are not encrypted. A hash
value is a unique value for a block or transaction that is considered essential to blockchain management.
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Cryptographic Hash Function (CHF) Authentication
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Hashing vs Encryption
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Hashing and Encryption in Blockchain
❖ In the blockchain, Encryption is mainly used to protect user privacy and transaction information. On the other
hand, hashing is used to protect the block in a blockchain network.
❖ Since the hash generated is unique signature to a transaction or block, it acts as a unique “fingerprint” of the
transaction or block.
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A Simple Structure of A Block
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❖ Time Stamp: In the simplest form, the timestamp is a string or characters of
"time & date" that uniquely identifies the block and indicates when it was
created.
❖ Nonce: It is often a random or pseudo-random number issued in an
authentication protocol to ensure that old communications cannot be reused in
replay attacks.
❖ Merkle Root: A Merkle root is a simple mathematical method for confirming the
facts on a Merkle tree or Hash Tree composed of hashes of different blocks of
data, and which serves as a summary of all the transactions in a block.
❖ Difficulty: In some blockchain based cryptocurrency system (Such as Bitcoin)
has a mining process where an algorithm regulates how difficult it is for the
miners to mine a certain block. This difficulty is known as mining difficulty.
Structure of a Block (Details)
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Merkle Root
❖ The Merkle root contains a single hash that can validate every single transaction hash in the block.
❖ In blockchain, the hashes of all transactions in a block are hashed again in what is called a Markle root. In
other words, the Merkel root is the hash of all hashes of all transactions in a block.
❖ This enables the network user to check whether of the transaction was included in the block.
❖ The Merkle root guarantees the security and integrity of a data block transferred through a peer-to-peer network.
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Layers of Blockchain
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Consensus Mechanisms for Blockchains
❖ A consensus mechanism is any method used to
achieve agreement, trust, and security across a
decentralized computer network.
❖ A consensus mechanism is a protocol that brings all
nodes of a blockchain network into agreement on a
single shape. It act as the verification standards
through which each block transaction gets approved.
❖ In the context of blockchains and cryptocurrencies,
proof-of-work (PoW) and proof-of-stake (PoS) are
two of the most prevalent consensus mechanisms.
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Proof of Work (PoW)
❖ Proof of work (PoW) is a consensus mechanism that supports cryptocurrencies by preventing users from carrying out fraudulent
transactions. Examples of popular proof-of-work cryptocurrencies include Bitcoin, Litecoin and Dogecoin.
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Blockchain Mining in PoW
❖ Blockchain Mining: This term is used to
describe the process of adding
transaction records to the blockchain
network. This process of adding blocks to
the blockchain is how transactions are
processed and how cryptocurrency moves
around securely on blockchain network.
❖ In Bitcoin: In Bitcoin, blockchain mining
is the process by which Bitcoin
transactions are validated digitally on
the Bitcoin network and added to the
blockchain ledger. It is done by solving
complex cryptographic hash puzzles to
verify blocks of transactions that are
updated on the blockchain ledger.
❖ Miners in Blockchain: Miners work the
blockchain mining process to confirm
whether the transaction is authentic or not.
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Proof of Stake (PoS)
❖ It is a way to decide which user or users validate new blocks of transactions and earn a reward for doing so correctly. This is done
to avoid the computational cost of proof-of-work (POW) schemes.
❖ Many blockchains use a PoS consensus mechanism. Under this system, network participants who want to support the blockchain by
validating new transactions and adding new blocks must “stake” set sums of cryptocurrency. Staking helps ensure that only
legitimate data and transactions are added to a blockchain.
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PoS vs PoW
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Non-fungible Token (NFT)
❖ A NFT is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is
used to certify ownership and authenticity.
❖ The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded.
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Types of Cyber Attacks
https://www.wallarm.com/what/what-is-a-cyber-attack
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Blockchain for Cyber Security
https://www.hcltech.com/blogs/will-blockchain-become-cyber-security-linchpin-digital-future
https://101blockchains.com/blockchain-for-cybersecurity/
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Blockchain for Cyber Security (Details)
https://blockchaintrainingalliance.com/blogs/news/blockchain-security-vs-standard-cybersecurity
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Blockchain for Distributed Denial-of-service (DDoS)
❖ A Distributed Denial-of-service (DDoS) assault overwhelms a server, network, or service with internet traffic, disrupting regular traffic
[13]. A denial-of-service (DoS) attack floods a server with traffic, making a website or resource unavailable. A distributed denial-of-
service (DDoS) attack is a DoS attack that uses multiple computers or machines to flood a targeted resource.
❖ Due to the distributed nature of the blockchain network, a DDoS attack can cause some nodes to go offline for a period, but the rest of
the nodes remain active, ensuring that transactions continue. Because every node in the blockchain has the same information.
Distributed Denial-of-service (DDoS) attack Blockchain process for mitigating DDoS attack [14]
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Blockchain for Internet of Things (IoT)
❖ IoT enables devices across the Internet to send data to private blockchain networks to create tamper-resistant records of
shared transactions..
❖ IBM Blockchain enables your business partners to share and access IoT data with users but without the need for central
control and management.
❖ A recent experiment proved that a lightweight blockchain-based network could accommodate up to 1.34 million
authentication processes every second, which is more than sufficient to be applied in a resource-constrained IoT network or
the health sector [2].
❖ Blockchain can solve such serious problems by providing decentralized computation and storage for IoT data. Therefore,
the integration IoT and blockchain technologies can become a reasonable choice for the design of a decentralized IoT-
based e-healthcare systems [3].
❖ An article presents a distributed and decentralized architecture for the implementation of distributed artificial intelligence
(DAI) using hardware platforms provided by the IoT. This is accomplished by the utilization of decentralized, self-
managed blockchain technologies that allow trusted interactions and information to be exchanged between distributed
artificial neural networks [4].
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Examples of Blockchain based IoT Infrastructure
[6] A. A. Sadawi, M. S. Hassan and M. Ndiaye, "A Survey on the Integration of Blockchain With IoT to
Enhance Performance and Eliminate Challenges," in IEEE Access, vol. 9, pp. 54478-54497, 2021.
[5] T. L. N. Dang and M. S. Nguyen, "An Approach to Data Privacy in Smart Home using Blockchain
Technology," 2018 International Conference on Advanced Computing and Applications (ACOMP), Ho
Chi Minh City, Vietnam, 2018, pp. 58-64, doi: 10.1109/ACOMP.2018.00017..
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Blockchain Applications for Networking
https://doi.org/10.5281/zenodo.8115621
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Blockchain and Industry 4.0
❖ A blockchain is a digitally distributed, decentralized, public ledger that exists across a network. Blockchain can provide advanced security controls by using
public key infrastructure to authenticate parties and encrypt their communication.
❖ Although some of blockchains underlying capabilities provide data confidentiality, integrity and availability, just like other systems, cyber security controls
and standards need to be adopted for organizations using blockchains in order to protect their organizations from external attacks.
❖ There are a few other areas where blockchain may add value in Industry 4.0. For example, blockchain could encourage farmers and the intermediaries who
stand between farms and mills to enter more data about produce as it moves through the chain. This Fourth Industrial Revolution can help accelerate progress
towards development by helping prevent fraud and corruption.
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Blockchain at Industrial IoT (IIoT) Application
https://doi.org/10.5281/zenodo.8115621
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Federated Learning with Blockchain
Federated Learning [11]
❖ Federated Learning (FL) is a distributed machine learning concept [9] that trains models across
multiple devices without exchanging or sharing users' data (Information Security), thereby
providing stronger data privacy guarantees [10].
❖ Since both blockchain and FL are distributed technologies, many researchers have done integration
these two technologies.
❖ In this system, AI-based machine learning works parallelly or distributed way on blockchain nodes to
analyze records. Here, each blockchain node is connected to a cloud server for the FL process where
blockchain enables continuous monitoring and tracking of electronic records.
Federated Learning with Blockchain [12]
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Sectors Currently Uses Blockchain
https://doi.org/10.5281/zenodo.8115621
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Hashgraph Technology
❖ Hashgraph is a newer distributed ledger technology that has been described as an alternative to
blockchains [7]. Hashgraph also a consensus mechanism.
❖ Hashgraph has several advantages over traditional blockchain technology. It is faster than blockchain,
more secure, and offers improved scalability. Transaction speed is potentially much faster due to its
advanced data structure, as it can process up to 10,000 transactions per second.
❖ Researchers are focusing to integrate between Hashgraph and blockchain [8].
Hashgraph is faster then Blockchain [15]
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Gossip Protocol in Hashgraph
https://doi.org/10.5281/zenodo.8115621
Blockchain Olympiad
❖ The International Blockchain Olympiad (IBCOL), founded in 2017, is an annual competition for students to solve real-world
problems using Web3 and blockchain technology. Now in its 6th year, the IBCOL 2023 finals will be held in Amsterdam, offering
participants the chance to showcase their skills, gain experience, and potentially win prizes or recognition.
❖ Blockchain Olympiad Bangladesh (BCOLBD) has been held since March 2020 and will arrange its 3rd edition this year in May
2022. Hundreds of teams compete for the opportunity to win big prizes and learn from the experts every year. Look out for the
event announcement and register when participation is declared open.
41
https://doi.org/10.5281/zenodo.8115621
References
1. M. K. Hasan et al., "Evolution of Industry and Blockchain Era: Monitoring Price Hike and Corruption Using BIoT for Smart Government and Industry 4.0,"
in IEEE Transactions on Industrial Informatics, vol. 18, no. 12, pp. 9153-9161, Dec. 2022, doi: 10.1109/TII.2022.3164066.
2. S. Khan, W. -K. Lee and S. O. Hwang, "AEchain: A Lightweight Blockchain for IoT Applications," in IEEE Consumer Electronics Magazine, vol. 11, no. 2,
pp. 64-76, 1 March 2022, doi: 10.1109/MCE.2021.3060373.
3. P. P. Ray, D. Dash, K. Salah and N. Kumar, "Blockchain for IoT-Based Healthcare: Background, Consensus, Platforms, and Use Cases," in IEEE Systems
Journal, vol. 15, no. 1, pp. 85-94, March 2021, doi: 10.1109/JSYST.2020.2963840.
4. S. M. Alrubei, E. Ball and J. M. Rigelsford, "The Use of Blockchain to Support Distributed AI Implementation in IoT Systems," in IEEE Internet of Things
Journal, vol. 9, no. 16, pp. 14790-14802, 15 Aug.15, 2022, doi: 10.1109/JIOT.2021.3064176.
5. T. L. N. Dang and M. S. Nguyen, "An Approach to Data Privacy in Smart Home using Blockchain Technology," 2018 International Conference on Advanced
Computing and Applications (ACOMP), Ho Chi Minh City, Vietnam, 2018, pp. 58-64, doi: 10.1109/ACOMP.2018.00017.
6. A. A. Sadawi, M. S. Hassan and M. Ndiaye, "A Survey on the Integration of Blockchain With IoT to Enhance Performance and Eliminate Challenges," in
IEEE Access, vol. 9, pp. 54478-54497, 2021, doi: 10.1109/ACCESS.2021.3070555.
7. Z. Akhtar, "From Blockchain to Hashgraph: Distributed Ledger Technologies in the Wild," 2019 International Conference on Electrical, Electronics and
Computer Engineering (UPCON), Aligarh, India, 2019, pp. 1-6, doi: 10.1109/UPCON47278.2019.8980029.
8. N. Gao, R. Huo, S. Wang, T. Huang and Y. Liu, "Sharding-Hashgraph: A High-Performance Blockchain-Based Framework for Industrial Internet of Things
With Hashgraph Mechanism," in IEEE Internet of Things Journal, vol. 9, no. 18, pp. 17070-17079, 15 Sept.15, 2022, doi: 10.1109/JIOT.2021.3126895.
9. M. Akhtaruzzaman, M. K. Hasan, S. R. Kabir, S. N. H. S. Abdullah, M. J. Sadeq and E. Hossain, "HSIC Bottleneck Based Distributed Deep Learning Model
for Load Forecasting in Smart Grid With a Comprehensive Survey," in IEEE Access, vol. 8, pp. 222977-223008, 2020, doi: 10.1109/ACCESS.2020.3040083.
10. J. Huang, L. Kong, G. Chen, Q. Xiang, X. Chen and X. Liu, "Blockchain-based Federated Learning: A Systematic Survey," in IEEE Network, doi:
10.1109/MNET.129.2200346.
11. M. Shaheen et al., "Applications of Federated Learning; Taxonomy, Challenges, and Research Trends," Electronics, vol. 11, no. 4, 2022.
12. S. Muhammad et al., "Blockchain for Deep Learning: Review and Open Challenges," TechRxiv, Preprint: https://doi.org/10.36227/techrxiv.16823140.v1
13. M. R. Alam et al., "Use of Blockchain to Prevent Distributed Denial-of-Service (DDoS) Attack: A Systematic Literature Review," Lecture Notes in Networks
and Systems, vol. 660, 2023.
14. R. Singh et al., "Utilization of blockchain for mitigating the distributed denial of service attacks," Security and privacy, 15 November 2019.
15.
42
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Blockchain's Inner Mechanisms: Brief Overview on Hashing, Encryption, PoW, PoS, NFT, IoT, Cyber Security, Federated Learning and Hashgraph

  • 1. Blockchain's Inner Mechanisms: Brief Overview on Hashing, Encryption, PoW, PoS, NFT, IoT, Cyber Security, Federated Learning and Hashgraph S. Rayhan Kabir Master’s Student, FTSM, Universiti Kebangsaan Malaysia (UKM); Lecturer, Dept. of CSE, Asian University of Bangladesh (AUB) p126933@siswa.ukm.edu.my; rayhan923@aub.edu.bd 5 July 2023 Last Update: 5 July 2023 https://doi.org/10.5281/zenodo.8115621
  • 2. 2 What is Blockchain ? ❖ A blockchain is a Distributed Ledger Technology (DLT) with growing lists of records (blocks) that are securely linked together via cryptographic hashes. ❖ A blockchain is a decentralized, distributed, and often public, digital ledger consisting of records called blocks that are used to record transactions across many computers. ❖ Blockchain is a list of records called blocks that store data publicly and in chronological order. The information is encrypted using cryptography to ensure that the privacy of the user is not compromised, and data cannot be altered. ❖ Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree, where data nodes are represented by leaves). ❖ Blockchains are typically managed by a peer-to-peer (P2P) computer network for use as a distributed ledger, where nodes collectively adhere to a consensus algorithm protocol to add and validate new transaction blocks. https://doi.org/10.5281/zenodo.8115621
  • 4. 4 What is Distributed Ledger Technology (DLT) ? ❖ The most common form of DLT is the blockchain. ❖ DLT is a platform that uses ledgers stored on separate, connected devices in a network to ensure data accuracy and security. ❖ In contrast to a centralized database, a DLT does not require a central administrator, and consequently does not have a single (central) point-of-failure. https://doi.org/10.5281/zenodo.8115621
  • 5. 5 Types of Distributed Ledger Technology (DLT) https://doi.org/10.5281/zenodo.8115621
  • 6. 6 Decentralization vs Distribution in Blockchain ❖ Distributed and decentralized systems are two thing that comes to mind when we talk about blockchain systems. Even though they are two different systems; however, a decentralized system is a subset of a distributed system. ❖ In blockchain, decentralization refers to the peer-2-peer connection between nodes in a distributed network where the nodes are independent, but one node becomes dependent on other nodes to verify a transaction (block). https://doi.org/10.5281/zenodo.8115621
  • 7. 7 Features & Four Pillars of Blockchain https://doi.org/10.5281/zenodo.8115621
  • 8. 8 Advantages & Disadvantages of Blockchain https://doi.org/10.5281/zenodo.8115621
  • 9. 9 Types of Blockchain Network https://doi.org/10.5281/zenodo.8115621
  • 10. 10 [1] M. K. Hasan et al., "Evolution of Industry and Blockchain Era: Monitoring Price Hike and Corruption Using BIoT for Smart Government and Industry 4.0," in IEEE Transactions on Industrial Informatics, vol. 18, no. 12, pp. 9153-9161, Dec. 2022, doi: 10.1109/TII.2022.3164066. Blockchain Evolution: Blockchain 1.0 to Blockchain 5.0 https://doi.org/10.5281/zenodo.8115621
  • 12. 12 Components of A Blockchain https://doi.org/10.5281/zenodo.8115621
  • 13. 13 Sequence of Blocks in Blockchain ❖ A blockchain network's transactions are composed of sequential groups of data that are packaged together into “blocks” strung together linearly.. ❖ A Genesis Block is the name given to the first block a blockchain network. ❖ This is a chain of blocks linked from the first-ever (the genesis block) to the current one. Each block is linked to the previous one through unique metadata, creating a secure chain. The linking of blocks to create a chain is where the name blockchain comes from. https://doi.org/10.5281/zenodo.8115621
  • 14. 14 Cryptographic Hash Function (CHF) or Hashing ❖ CHF or hashing is a hash function process where data is mapped to a fixed-length value (Bit). Hashing is primarily used for authentication. CHF have many information-security applications, notably in digital signatures, message authentication codes (MACs), and other forms of authentication. ❖ Blocks hold batches of valid transactions that are hashed and encoded into a Merkle tree. Each block includes the cryptographic hash of the prior block in the blockchain. ❖ Hashing is not Encryption-decryption. Hashes cannot be decrypted because they are not encrypted. A hash value is a unique value for a block or transaction that is considered essential to blockchain management. https://doi.org/10.5281/zenodo.8115621
  • 15. 15 Cryptographic Hash Function (CHF) Authentication https://doi.org/10.5281/zenodo.8115621
  • 17. 17 Hashing and Encryption in Blockchain ❖ In the blockchain, Encryption is mainly used to protect user privacy and transaction information. On the other hand, hashing is used to protect the block in a blockchain network. ❖ Since the hash generated is unique signature to a transaction or block, it acts as a unique “fingerprint” of the transaction or block. https://doi.org/10.5281/zenodo.8115621
  • 18. 18 A Simple Structure of A Block https://doi.org/10.5281/zenodo.8115621
  • 19. 19 ❖ Time Stamp: In the simplest form, the timestamp is a string or characters of "time & date" that uniquely identifies the block and indicates when it was created. ❖ Nonce: It is often a random or pseudo-random number issued in an authentication protocol to ensure that old communications cannot be reused in replay attacks. ❖ Merkle Root: A Merkle root is a simple mathematical method for confirming the facts on a Merkle tree or Hash Tree composed of hashes of different blocks of data, and which serves as a summary of all the transactions in a block. ❖ Difficulty: In some blockchain based cryptocurrency system (Such as Bitcoin) has a mining process where an algorithm regulates how difficult it is for the miners to mine a certain block. This difficulty is known as mining difficulty. Structure of a Block (Details) https://doi.org/10.5281/zenodo.8115621
  • 20. 20 Merkle Root ❖ The Merkle root contains a single hash that can validate every single transaction hash in the block. ❖ In blockchain, the hashes of all transactions in a block are hashed again in what is called a Markle root. In other words, the Merkel root is the hash of all hashes of all transactions in a block. ❖ This enables the network user to check whether of the transaction was included in the block. ❖ The Merkle root guarantees the security and integrity of a data block transferred through a peer-to-peer network. https://doi.org/10.5281/zenodo.8115621
  • 22. 22 Consensus Mechanisms for Blockchains ❖ A consensus mechanism is any method used to achieve agreement, trust, and security across a decentralized computer network. ❖ A consensus mechanism is a protocol that brings all nodes of a blockchain network into agreement on a single shape. It act as the verification standards through which each block transaction gets approved. ❖ In the context of blockchains and cryptocurrencies, proof-of-work (PoW) and proof-of-stake (PoS) are two of the most prevalent consensus mechanisms. https://doi.org/10.5281/zenodo.8115621
  • 23. 23 Proof of Work (PoW) ❖ Proof of work (PoW) is a consensus mechanism that supports cryptocurrencies by preventing users from carrying out fraudulent transactions. Examples of popular proof-of-work cryptocurrencies include Bitcoin, Litecoin and Dogecoin. https://doi.org/10.5281/zenodo.8115621
  • 24. 24 Blockchain Mining in PoW ❖ Blockchain Mining: This term is used to describe the process of adding transaction records to the blockchain network. This process of adding blocks to the blockchain is how transactions are processed and how cryptocurrency moves around securely on blockchain network. ❖ In Bitcoin: In Bitcoin, blockchain mining is the process by which Bitcoin transactions are validated digitally on the Bitcoin network and added to the blockchain ledger. It is done by solving complex cryptographic hash puzzles to verify blocks of transactions that are updated on the blockchain ledger. ❖ Miners in Blockchain: Miners work the blockchain mining process to confirm whether the transaction is authentic or not. https://doi.org/10.5281/zenodo.8115621
  • 25. 25 Proof of Stake (PoS) ❖ It is a way to decide which user or users validate new blocks of transactions and earn a reward for doing so correctly. This is done to avoid the computational cost of proof-of-work (POW) schemes. ❖ Many blockchains use a PoS consensus mechanism. Under this system, network participants who want to support the blockchain by validating new transactions and adding new blocks must “stake” set sums of cryptocurrency. Staking helps ensure that only legitimate data and transactions are added to a blockchain. https://doi.org/10.5281/zenodo.8115621
  • 27. 27 Non-fungible Token (NFT) ❖ A NFT is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify ownership and authenticity. ❖ The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. https://doi.org/10.5281/zenodo.8115621
  • 28. 28 Types of Cyber Attacks https://www.wallarm.com/what/what-is-a-cyber-attack https://doi.org/10.5281/zenodo.8115621
  • 29. 29 Blockchain for Cyber Security https://www.hcltech.com/blogs/will-blockchain-become-cyber-security-linchpin-digital-future https://101blockchains.com/blockchain-for-cybersecurity/ https://doi.org/10.5281/zenodo.8115621
  • 30. 30 Blockchain for Cyber Security (Details) https://blockchaintrainingalliance.com/blogs/news/blockchain-security-vs-standard-cybersecurity https://doi.org/10.5281/zenodo.8115621
  • 31. 31 Blockchain for Distributed Denial-of-service (DDoS) ❖ A Distributed Denial-of-service (DDoS) assault overwhelms a server, network, or service with internet traffic, disrupting regular traffic [13]. A denial-of-service (DoS) attack floods a server with traffic, making a website or resource unavailable. A distributed denial-of- service (DDoS) attack is a DoS attack that uses multiple computers or machines to flood a targeted resource. ❖ Due to the distributed nature of the blockchain network, a DDoS attack can cause some nodes to go offline for a period, but the rest of the nodes remain active, ensuring that transactions continue. Because every node in the blockchain has the same information. Distributed Denial-of-service (DDoS) attack Blockchain process for mitigating DDoS attack [14] https://doi.org/10.5281/zenodo.8115621
  • 32. 32 Blockchain for Internet of Things (IoT) ❖ IoT enables devices across the Internet to send data to private blockchain networks to create tamper-resistant records of shared transactions.. ❖ IBM Blockchain enables your business partners to share and access IoT data with users but without the need for central control and management. ❖ A recent experiment proved that a lightweight blockchain-based network could accommodate up to 1.34 million authentication processes every second, which is more than sufficient to be applied in a resource-constrained IoT network or the health sector [2]. ❖ Blockchain can solve such serious problems by providing decentralized computation and storage for IoT data. Therefore, the integration IoT and blockchain technologies can become a reasonable choice for the design of a decentralized IoT- based e-healthcare systems [3]. ❖ An article presents a distributed and decentralized architecture for the implementation of distributed artificial intelligence (DAI) using hardware platforms provided by the IoT. This is accomplished by the utilization of decentralized, self- managed blockchain technologies that allow trusted interactions and information to be exchanged between distributed artificial neural networks [4]. https://doi.org/10.5281/zenodo.8115621
  • 33. 33 Examples of Blockchain based IoT Infrastructure [6] A. A. Sadawi, M. S. Hassan and M. Ndiaye, "A Survey on the Integration of Blockchain With IoT to Enhance Performance and Eliminate Challenges," in IEEE Access, vol. 9, pp. 54478-54497, 2021. [5] T. L. N. Dang and M. S. Nguyen, "An Approach to Data Privacy in Smart Home using Blockchain Technology," 2018 International Conference on Advanced Computing and Applications (ACOMP), Ho Chi Minh City, Vietnam, 2018, pp. 58-64, doi: 10.1109/ACOMP.2018.00017.. https://doi.org/10.5281/zenodo.8115621
  • 34. 34 Blockchain Applications for Networking https://doi.org/10.5281/zenodo.8115621
  • 35. 35 Blockchain and Industry 4.0 ❖ A blockchain is a digitally distributed, decentralized, public ledger that exists across a network. Blockchain can provide advanced security controls by using public key infrastructure to authenticate parties and encrypt their communication. ❖ Although some of blockchains underlying capabilities provide data confidentiality, integrity and availability, just like other systems, cyber security controls and standards need to be adopted for organizations using blockchains in order to protect their organizations from external attacks. ❖ There are a few other areas where blockchain may add value in Industry 4.0. For example, blockchain could encourage farmers and the intermediaries who stand between farms and mills to enter more data about produce as it moves through the chain. This Fourth Industrial Revolution can help accelerate progress towards development by helping prevent fraud and corruption. https://doi.org/10.5281/zenodo.8115621
  • 36. 36 Blockchain at Industrial IoT (IIoT) Application https://doi.org/10.5281/zenodo.8115621
  • 37. 37 Federated Learning with Blockchain Federated Learning [11] ❖ Federated Learning (FL) is a distributed machine learning concept [9] that trains models across multiple devices without exchanging or sharing users' data (Information Security), thereby providing stronger data privacy guarantees [10]. ❖ Since both blockchain and FL are distributed technologies, many researchers have done integration these two technologies. ❖ In this system, AI-based machine learning works parallelly or distributed way on blockchain nodes to analyze records. Here, each blockchain node is connected to a cloud server for the FL process where blockchain enables continuous monitoring and tracking of electronic records. Federated Learning with Blockchain [12] https://doi.org/10.5281/zenodo.8115621
  • 38. 38 Sectors Currently Uses Blockchain https://doi.org/10.5281/zenodo.8115621
  • 39. 39 Hashgraph Technology ❖ Hashgraph is a newer distributed ledger technology that has been described as an alternative to blockchains [7]. Hashgraph also a consensus mechanism. ❖ Hashgraph has several advantages over traditional blockchain technology. It is faster than blockchain, more secure, and offers improved scalability. Transaction speed is potentially much faster due to its advanced data structure, as it can process up to 10,000 transactions per second. ❖ Researchers are focusing to integrate between Hashgraph and blockchain [8]. Hashgraph is faster then Blockchain [15] https://doi.org/10.5281/zenodo.8115621
  • 40. 40 Gossip Protocol in Hashgraph https://doi.org/10.5281/zenodo.8115621
  • 41. Blockchain Olympiad ❖ The International Blockchain Olympiad (IBCOL), founded in 2017, is an annual competition for students to solve real-world problems using Web3 and blockchain technology. Now in its 6th year, the IBCOL 2023 finals will be held in Amsterdam, offering participants the chance to showcase their skills, gain experience, and potentially win prizes or recognition. ❖ Blockchain Olympiad Bangladesh (BCOLBD) has been held since March 2020 and will arrange its 3rd edition this year in May 2022. Hundreds of teams compete for the opportunity to win big prizes and learn from the experts every year. Look out for the event announcement and register when participation is declared open. 41 https://doi.org/10.5281/zenodo.8115621
  • 42. References 1. M. K. Hasan et al., "Evolution of Industry and Blockchain Era: Monitoring Price Hike and Corruption Using BIoT for Smart Government and Industry 4.0," in IEEE Transactions on Industrial Informatics, vol. 18, no. 12, pp. 9153-9161, Dec. 2022, doi: 10.1109/TII.2022.3164066. 2. S. Khan, W. -K. Lee and S. O. Hwang, "AEchain: A Lightweight Blockchain for IoT Applications," in IEEE Consumer Electronics Magazine, vol. 11, no. 2, pp. 64-76, 1 March 2022, doi: 10.1109/MCE.2021.3060373. 3. P. P. Ray, D. Dash, K. Salah and N. Kumar, "Blockchain for IoT-Based Healthcare: Background, Consensus, Platforms, and Use Cases," in IEEE Systems Journal, vol. 15, no. 1, pp. 85-94, March 2021, doi: 10.1109/JSYST.2020.2963840. 4. S. M. Alrubei, E. Ball and J. M. Rigelsford, "The Use of Blockchain to Support Distributed AI Implementation in IoT Systems," in IEEE Internet of Things Journal, vol. 9, no. 16, pp. 14790-14802, 15 Aug.15, 2022, doi: 10.1109/JIOT.2021.3064176. 5. T. L. N. Dang and M. S. Nguyen, "An Approach to Data Privacy in Smart Home using Blockchain Technology," 2018 International Conference on Advanced Computing and Applications (ACOMP), Ho Chi Minh City, Vietnam, 2018, pp. 58-64, doi: 10.1109/ACOMP.2018.00017. 6. A. A. Sadawi, M. S. Hassan and M. Ndiaye, "A Survey on the Integration of Blockchain With IoT to Enhance Performance and Eliminate Challenges," in IEEE Access, vol. 9, pp. 54478-54497, 2021, doi: 10.1109/ACCESS.2021.3070555. 7. Z. Akhtar, "From Blockchain to Hashgraph: Distributed Ledger Technologies in the Wild," 2019 International Conference on Electrical, Electronics and Computer Engineering (UPCON), Aligarh, India, 2019, pp. 1-6, doi: 10.1109/UPCON47278.2019.8980029. 8. N. Gao, R. Huo, S. Wang, T. Huang and Y. Liu, "Sharding-Hashgraph: A High-Performance Blockchain-Based Framework for Industrial Internet of Things With Hashgraph Mechanism," in IEEE Internet of Things Journal, vol. 9, no. 18, pp. 17070-17079, 15 Sept.15, 2022, doi: 10.1109/JIOT.2021.3126895. 9. M. Akhtaruzzaman, M. K. Hasan, S. R. Kabir, S. N. H. S. Abdullah, M. J. Sadeq and E. Hossain, "HSIC Bottleneck Based Distributed Deep Learning Model for Load Forecasting in Smart Grid With a Comprehensive Survey," in IEEE Access, vol. 8, pp. 222977-223008, 2020, doi: 10.1109/ACCESS.2020.3040083. 10. J. Huang, L. Kong, G. Chen, Q. Xiang, X. Chen and X. Liu, "Blockchain-based Federated Learning: A Systematic Survey," in IEEE Network, doi: 10.1109/MNET.129.2200346. 11. M. Shaheen et al., "Applications of Federated Learning; Taxonomy, Challenges, and Research Trends," Electronics, vol. 11, no. 4, 2022. 12. S. Muhammad et al., "Blockchain for Deep Learning: Review and Open Challenges," TechRxiv, Preprint: https://doi.org/10.36227/techrxiv.16823140.v1 13. M. R. Alam et al., "Use of Blockchain to Prevent Distributed Denial-of-Service (DDoS) Attack: A Systematic Literature Review," Lecture Notes in Networks and Systems, vol. 660, 2023. 14. R. Singh et al., "Utilization of blockchain for mitigating the distributed denial of service attacks," Security and privacy, 15 November 2019. 15. 42 https://doi.org/10.5281/zenodo.8115621