Blockchain Smart Contract v5

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Smart Contract
MD SAQUIB NASIR KHAN

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Topic will
covered
Introduction
Problems
Blockchain
Conclusion
Working of Smart
contract
TOC

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Applications
Copyright
Insurance
Government
Services
Property
Management
Employee
Contract
Online Betting
Cloud Storage Asset
Management
Identity
Management

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Dubai - "Adopting Blockchain technology
Dubai stands to unlock 5.5 billion dirham
in savings annually in document
processing alone — equal to the one Burj
Khalifa’s worth of value every year."
Hero Motocorp – Vendor management
using Blockchain can reduce 80 % Cost

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If two people want to make a contract related to any thing they need trust each
other.
1. If they know each other trusting is easy
2. If they don’t know each other but physically present in front of each other
that may still do the job.
3. But if they don’t know each other and only connected virtually then trusting
each other become a issue.
Should I trust
him with my
money
Should I sell my
property to him?
Problem

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As solutions a intermediator introduced, Like online shopping both trust
Amazon, Ebay, Flipkart. Same way for property we trust Gov. Want to buy a
home on lone, start trusting bank etc..
Happy Happy
Solution

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Problem 1
This Intermediator Bank, Shopping website, Government are run by Human, So there is chances of
Corruptions also.
Problem 2
When everyone started doing business or transaction through Intermediators, They started to keep
records about each client or customers. So all information are stored centralized.
So if you look back history attackers primary motive is always information. And if they get access of a
centralized server contain information it’s a lottery for them

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Yahoo
2013-
2014
UBER
2016
OPM
2012 -
2014
Ebay
2014
JP Morgan
2014
Stuxnet
2005 - 2010
3 Billion user
Account
57 Million User
Data
22 million current
and former federal
employees
140 Million User
Account
76 Million user 7
Million Small
Business
Iran Nuclear
power program
Data Breaches

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Problem 3
Privacy – When ever you do any activity online, either your ISP or The End point know about your
activity. That also store on centralized server for future use.

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Problem 4
Impersonation / Identity Theft –
1. If some use a stole identity
2. If someone deny after contract
Problem 5
Double Spending problem

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Problem 6
Countries boundaries – Our money, tax system, Law are country oriented. How you are going to
deal with problem related to you cross border trading? Which law or which tax system to follow?

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We look into
how Smart
Contract
helping us to
solve This
problems
Authentication
Nonrepudiation
Data Privacy
Confidentiality
Integrity

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Cryptographi
c
Algorithms
Decentralize
d Network
Economics
Application
Solution - Cryptoeconomics

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Traditional Contract
Want to buy a
house
Want to sell a
house

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A smart contract is a
computer protocol intended to
digitally facilitate, verify,
or enforce the negotiation or
performance of a contract.
Smart contracts allow the
performance of credible
transactions without third
parties
What is Smart contract ?

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Smart Contract – Blockchain Implementation
A list of predefine condition, if meet the condition then it will execute
and no 3rd party require
IF
IF
IF
IF
IF
IF

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“If” Condition will
verify the
satisfaction
Yes
Step 3

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“If” Condition will
verify the
satisfaction
No
Step 3

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Immuta
ble
Why we should trust Smart Contract ?

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Immuta
ble
What Make Smart Contract Immutable?

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What is Blockchain?
Immuta
ble

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Blockchain
Satoshi Nakamoto
He introduced blockchain network, A decentralized P2P network. He published paper on bitcoin, helping people
share some value over network without any intermediators.
2008

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Ethereum
2014 Ethereum project started with dream of using BlockChain technology for other application
2014

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Blockchain
In layman term Blockchain is a number of block contain some
information and mathematically link with each other.
Now we will look into
1. What information one block contain
2. How they link with each other.

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1. Data
Blockchain
Contract between A & B (Digital)
+
Both of their Digital Signature
And verified by “IF” condition

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Game Time (How Digital
Signature is done)

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Signature is done)

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Signature is done)

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1. Data
Blockchain
2. Time Stamp
This Photo by Unknown Author is licensed
under CC BY

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1. Data
Blockchain
2. Time Stamp
3. Every block store hash value of data with time stamp, as we know hash are use for data integrity.
Here every data are bind with timestamp so not only if data manipulated hash will change, if time
change by even by one second the hash will change also . This will avoid hash collision and provide
more data security
3. Hash (Data + Time Stamp)
LETTERS HASH
Paladion 1839de10415111d4ccf12e9f4787a053b320490b7d80b5ea0152d4c4cb5cab78
PALADION 9ca9837d549b6914ca6cc6dad790bff40b72248c6f12294ba95484061f5720cf
paladion 81e200925ec4fba1aff54e7cfb5d5fec292dba6cd9dbb4576505bf136d3ee6b2

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1. Data
Blockchain
2. Time Stamp
4.
4. Will Discuss after point 5

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1. Data
Blockchain
2. Time Stamp
4.
5. Block Hash (1 + 2 + 3 + 4)
5. If any change happen at 1,2,3 & 4 the hash of the
block will change. So that will protect this block from
manipulation

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Blockchain
2. How they link with each other.
Information – Genesis block
Previous block hash – 00000
Current Block Hash – XYZ22
Information – Smart Contract 1
Previous block hash – XYZ22
Current Block Hash – ABC57
Information –Smart Contract 2
Previous block hash – ABC57
Current Block Hash – FGD53

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Data Hash with time
stamp
P o i n t A
Current Block HashP o i n t B
Previous Block HashP o i n t C
Digital SignatureP o i n t D
Recap – Which all security features one
block have

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How Blockchain Network Works

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A
B
C
D
E
A
B
C
D
E
Centralized P2P

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A
B
C
D
E
In This Network if one person create a block, Next step
he will do is broadcast the block towards everyone in
the same network
A
B
C
D
E

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Both Entity will generate their own Public & Private Key Pair using Cryptographic Algorithm
Each of them will use their public key as their identity in a network not there actual Name
Their Private key will act as their digital signature – So Contract will be sign with there
private key, and if need to verify public key will be use
Private key is always kept secure, and public key can be share with any one
Identity of every entity in blockchain are secure to maintain privacy

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Problem 1 – Intermediators Blockchain – Decentralized P2P Network
Problem 2 – Hacker & Data
Manipulation
Hash & Encryption
Problem 3 & 4 – Privacy Instead of identity blockchain use public & Private key
Problem 5 – Identity Theft /
Impersonation
Digital Signature
Beginning of the slide we marked some problem – Let see how many of them are solved by Block chain

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Some time we don’t need to
Upgrade the technology, we
need to update ourselves first

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• Blockchain – 1991 (Stuart & Scott)
• Market Tree - 1992, Bayer, Haber and Stornetta
• Proof of Work – 1993 Cynthia Dwork and Moni Naor
• Hash SHA2 – 2004
• Public Key – 1976, Diffie and Martin Hellman
• RSA - 1977: Ronald Rivest, Adi Shamir and Len Adleman
• Digital Signature - 1999
2008 – Satoshi Nakamoto

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Any
Questions ?
Do question, even the
basics! You will be a
fool for once! If you
don't, you will be, for a
lifetime..”
― Himmilicious

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THANK YOU
0 0 6 S a q u i b @ g m a i l . c o m
MD Saquib Nasir Khan
Threat Hunting

Blockchain Smart Contract v5

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