![vii
Preface
Blockchain technology as an emerging distributed, decentralized architecture and computing paradigm,
which has accelerated the development/application of the cloud/fog/edge computing, artificial intelli-
gence, cyberphysical systems, social networking, crowdsourcing and crowdsensing, 5G, trust manage-
ment, finance, and other many useful sectors. Nowadays, blockchain technology uses are in information
systems to keep information secure and private, but many threats and vulnerabilities have been faced in
the past decade on blockchain, like 51% attacks, double spending attacks, etc. The popularity and rapid
development of blockchain brings many technical and regulatory challenges for research and academic
communities. The main goal of this book is to encourage both researchers and practitioners to share and
exchange their experiences and recent studies between academia and industry.
In summary, this book provides the reader with the most up-
to-
date knowledge of blockchain in
mainstream areas of security and privacy in the decentralized domain, which is timely and essential (this
is due to the fact that distributed and P2P [peer-
to-
peer] applications are increasing day by day, and attack-
ers adopt new mechanisms to threaten the security and privacy of the users in those environments). This
book provides a detailed explanation of security and privacy aspects with respect to blockchain for infor-
mation systems, and we assure the reader that this book will be more helpful for students, researchers,
and scientists to clear their doubts regarding blockchain uses in information systems. Also, this book will
provide a complete detail from origin of blockchain to till this smart era (including security and privacy
issues, where almost applications/sectors use digital devices), i.e. uses in many applications for reducing
corruption and building trust in people or society (via P2P networking).
Finally, researchers will be able to select their research problems (to do their research) from future
research directions sections from our included section in this book. In conclusion, we want to thank our
God, family members, teachers, friends, and last but not least, all our authors from the bottom of our
hearts (including the publisher) for helping us complete this book before the deadline.
Really, kudos to all.
—Amit Kumar Tyagi,
—Ajit Abraham](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-12-320.jpg)
![1 • Fundamentals of Blockchain and DLT 5
1.1 INTRODUCTION OF BLOCKCHAIN AND
DISTRIBUTED LEDGER TECHNOLOGY (DLT)
Blockchain-
based distributed ledger technology (DLT) has a range of possible uses outside the limited
world of digital currency and cryptocurrencies that was first implemented as the underlying infrastruc-
ture of the cryptocurrency Bitcoin. For example, DLT might have uses in capital markets for cross-
border
transfers, financial market infrastructure, and security registries.
However, DLT’s future implementations are not confined to the financial industry [1][2]. DLT is pres-
ently being explored by using trustworthy partners to verify flows and trends to promote digital identity
goods or to create untampered, decentralized records of the distribution of goods and services through
a supply chain [1][3]. Usually, DLT advocates emphasize a range of possible benefits over conventional
unified ledgers and some other kinds of collaborative ledgers, like decentralization, deregulation, better
transparency and easy accountability, speed and productivity improvements, cost savings, and modern-
ization and fully programmability. That said, technology continues to improve and faces new threats and
challenges, which are often yet to be addressed.
Scalability, interoperability, organizational protection and cyber security, identity authentication,
data privacy, transaction conflicts and redress mechanisms, and difficulties in establishing a regulatory
and legal system for DLT implementations are the most widely cited technical, regulatory, and legal
challenges relevant to DLT, which may bring significant changes in the functions and obligations of DLT
implementation. Significant costs related to the transfer of current long-
standing IT processes, operating
structures and policy structures to DLT-
based architecture are another problem, especially applicable to
the field of financial market infrastructure. Many industry analysts note that DLT implementations would
likely launch in places without many legacy automation investments, like financial transactions and syn-
dicated lending in the financial industry, because of these challenges. It is possible to open/permitless or
permit distributed ledger structures, and there are basic variations between these two forms that relate to
somewhat different risk profiles. There is no centralized controller who manages access to the network
in permissionless networks. A database server with the appropriate program is all that is required to
enter the network and connect transaction history. Members of the network are preselected on registered
networks by the controller or administrator of that same ledger, who manages access to the network and
enforces the guidelines of the ledger.
DLT led to a special and increasingly developing approach to data storage and distribution across
various data sources or ledgers. Such technology enables the capturing, sharing, and synchroniza-
tion of transactions and data through a global network of separate network members. A “blockchain”
is a special kind of data structure in certain distributed ledgers that stores and transmits informa-
tion in packages called “blocks” in a digital “chain” that are linked to each other. Blockchains use
cryptographic and algorithmic techniques in an irreversible fashion to store and sync data throughout
network. Distributed ledgers (DLs) are really a particular application of the wider “public ledgers”
category which is simply represented as a shared data record across multiple parties. For instance, a
new cryptocurrency transaction will be registered and distributed in a block of data to a network, which
is first authenticated by members of the network and then connected in an append-
only manner, to an
existing block, thereby forming a blockchain. Even as linear chain expands as new blocks are inserted,
each network member does not retrospectively modify older blocks. Note that blockchain technology
is not inherently used by all distributed ledgers, and blockchain technology might be used in different
ways instead.
Blockchain arranges data in blocks, which are used primarily for square calculation in chains.
Blockchain square tests the “Internet import” building block and alters contact tracking and peer-
to-
peer sharing, but it is not a requirement for a centrally organized body. “Value” means any records of
ownership of plus such as money, shares, and land titles and, together, data such as identification, health
data, and various personal details. Both forms have advantages and drawbacks that vary considerably in](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-26-320.jpg)
![6 Recent Trends in Blockchain
different usage cases. Registered programs, for example, are better at addressing identity authentication
and data protection problems, but they involve a central access control authority that provides a pos-
sible target for cyberattacks. It is also likely that approved structures could more conveniently integrate
into current legislative and regulatory processes and administrative arrangements. To a degree, however,
authorized DLs eliminate core advantages of the most important invention of DLT. This is because free
permissionless DLs are accomplished through protection and system integrity by cryptography and algo-
rithmic approaches ensuring that confidential network members are empowered to implement the ledger’s
consistency without the use of entry barriers or trust among members.
The majority of DLT’s research and development efforts are currently dedicated to upgrading finan-
cial systems and procedures, and there is tremendous scope for this commitment to be leveraged for the
good of developed countries by development organizations. With that being said, the technology is still at
an initial phase of development, but there is still a ways to go before it will be possible to realize its full
potential, particularly with regard to privacy, stability, interoperability, scalability, and regulatory and
legal issues. It is not always an optimal strategy for development organizations to wait for “perfect” DLT
solutions, though. Provided DLT’s ability to structure responses to growth problems in the finance indus-
try and even beyond, the World Bank Group is able to track and form trends closely and, where necessary,
promote their healthy implementation while ensuring institutional independence with respect to private
sector actors. It needs not only analysis, and moreover legitimate experiments and trials, to grasp DLT’s
true potential for growth goals.
The use of DLT to help meet growth goals in the finance industry includes the development and suc-
cessful promotion of vital accompanying components in addition to the development of the technology
itself. Significant among these are user-
friendly architecture of the mobile interface, money management,
and functionality, a solid system for the safety of financial users, interoperability with conventional pay-
ments and financial institutions and infrastructure, and efficient regulation.
1.2 WORKS OF DISTRIBUTED LEDGER TECHNOLOGY
Distributed ledger technology falls on the back of numerous Internet-
enabled (peer-
to-
peer [P2P])
applications, such as email, music distribution or other shared folders, and electronic mail. Internet-
based asset ownership transactions, however, have been difficult for a long time, as this involves verify-
ing that a resource is only exchanged by its rightful owner and guaranteeing that the resource cannot
be transmitted multiple times, i.e. without double spending. Anything of worth may be the commod-
ity at issue. DLT led to a fundamental and quickly changing approach to data recording and sharing
across different data stores (ledgers), each of which has the very same data records and is stored and
managed collectively by a distributed computer server network known as nodes. Another means of
conversing of DLT is based on it being essentially a hierarchical database with some particular proper-
ties. Blockchain, a specialized version of DLT, utilizes cryptographic and algorithmic approaches to
construct and validate a constantly expanding, append-
only data system that serves the purpose of a
blockchain and serves the purpose of a ledger, a chain of so-
called “transaction blocks.” New data-
base additions are introduced by a member (node) who generates a new “data block” containing, for
example, many transaction documents.
Knowledge concerning this new block of data is then transmitted across the whole network, as shown
in Figure 1.1, containing encrypted information such that transaction specifics are also not publicly dis-
closed, as per a predefined analytic confirmation process (“consensus mechanism”), all network members
jointly decide the legitimacy of the block. Only after authentication will all participants add their respec-
tive ledgers to the new block. Each update to the database is repeated throughout the overall infrastructure
by this process, and each member of the network has a complete, duplicate copy of the original ledger
at a certain time. That methodology could be used to document transactions in a digital way on any](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-27-320.jpg)
![1 • Fundamentals of Blockchain and DLT 7
commodity that can be depicted. A modification of the characteristic of the commodity or a transition of
ownership may be a sale.
1. DLT systems based on blockchain occur as a result of an append-
only data chain “blocks.” They are
changes made to the database started by a few of the representatives nodes who is creating a new
one “block” of data that contains several records of transactions [4].
2. Information is then shared throughout the entire system about this new block of data containing
encrypted information so that transaction information is not revealed to the public [4].
3. The validity of the block is collectively evaluated by all network participants as per the pre-
defined algorithmic evaluation technique “consensus mechanism” [4].After evaluation, all indi-
viduals add their corresponding ledgers to the new block. Every other alteration to that same
ledger is imitated all around the existing system through this mechanism, and each node on the
network has a complete equivalent replica ledger at any time. Two key features for DLT-
based
network are: (i) capacity to digitally archive, monitor, and share “information” between multi-
ple self-
interested financial institutions with no need for a centralized record that is peer-
to-
peer
without any need for counterparty trust, and (ii) ensuring that there is no “double spending.”
1.2.1
Primary Attributes of DLT
For a number of years, there have been individual ledgers of layered privileges that are exchanged, read,
and updated by just a network for verified users, but the idea of a decentralized, shared, and irreversible
ledger was first understood via DLT. Three characteristics of DLT which are commonly considered essen-
tial to the technology are the distributed design of a ledger, its system of consensus, and its cryptographic
FIGURE 1.1 Data block transaction in DLT systems.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-28-320.jpg)
![10 Recent Trends in Blockchain
1.4 EVALUATION OF BLOCKCHAIN
PROBLEMS AND OPPORTUNITIES
In an attempt to comprehend the wider DLT/blockchain technologies environment and the significance
that guidelines can play in their creation and application, it is crucial to understand DLT/blockchain’s
challenges with regard to market development and technology adoption by end-
users, as well as gover-
nance and implementation.
The prospective position of standards to benefit DLT/blockchain are the established fields where
guidelines could—to different degrees—theoretically resolve difficulties and could support creativity,
development, and competition in the DLT/blockchain ecosystem [5]:
• Specifications could play a significant role in maintaining interoperability between various
Distributed Ledger Technology (DLT)/blockchain/DLT applications and, in doing just that,
could mitigate the possibility of such a decentralized environment.
• Using guidelines to create a greater agreement on consistent terms and language could enhance
awareness of the technologies and positively impact the market.
• Defining specifications to fix protection and stability and DLT/blockchain-
related privacy and
data processing issues could lead to creating trust in the technologies.
• Standards can play a significant role in data security management which inspire end user inter-
est in technology.
The collection is a wide variety of topics that the DLT/blockchain group will discuss and investigate more.
The literary analysis and interviews indicate that the role played by the standards involves a proactive mea-
sure to the immediate and near future production of the standards. It is still too premature to consider the
criteria relating to the DLT/blockchain technological aspects. While the majority of interviewees acknowl-
edged that standards play a role in defining and improving DLT/blockchain over the longer run, some also
believed that extra time could be taken to allow a more knowledgeable approach to determine which facets
and uses of the technology should then be given priority. In Figure 1.2, our goals are outlined and the rela-
tive timelines for the future creation of criteria in respect to all these areas are roughly shown. Again, our
research shows that while there is agreement on the general value of blockchain’s growth support require-
ments, opinions vary in regards to future standardization areas and schedules for the creation and application
of standards. Our research shows that blockchain’s prospects are extensive, but it also faces many obstacles.
The standard areas have the opportunity to play a role in promoting technologies, such as to allow
the growth and acceptance of DLT/blockchain and for its market room to be developed—but the timing
for implementation and adoption of standards is important, as is usually the case for new technologies.
Early intervention may risk ensuring stakeholders engaging in policies that may not be more efficient, and
innovation in the longer term is inevitably stifled. The traditional technology strategy risks missed oppor-
tunities to maximize technology gains. Although this is a field of accelerated transition and uncertainty,
steps should be taken to recognize the current situation and the drivers and sectors involved.
1.4.1
Main DLT/Blockchain Challenges and Opportunities
Inadequate transparency and contradictory terminological interpretation, together with the presumed
nascent technologies of DLT/blockchain, raise obstacles for broader acceptance of DLT/blockchain.
The possible costs associated with initial execution, the perceived risks related to early DLT/blockchain
deployment, and the likelihood of disruption to current practices could pose big problems for organiza-
tions [5]. The lack of clarification regarding technical enhancements relative to current solutions will](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-31-320.jpg)
![1 • Fundamentals of Blockchain and DLT 11
hamper the company’s adoption. The wider economic influence of the system in the mid-to long term is
not readily established in the lack of broad DLT/blockchain acceptance. Owing to the emerging existence
of technology, the regulation of DLT/blockchain networks is lacking in transparency.
The existing regulatory structures that will be applicable to DLT/blockchain and the improvements
that may be expected for broader DLT/blockchain acceptance across industries remain unclear. The exis-
tence of several non-
interoperable implementations of DLT/blockchain may contribute to a fractured envi-
ronment, which could limit broad acceptance.
There are major challenges to possible security vulnerabilities and privacy issues, particularly if
DLT/blockchain technologies are being entrusted to consumers. Protection of data privacy and maintain-
ing robust encryption protocols are viewed as critical obstacles for broader DLT/blockchain adoption.
Blockchain systems’ distributed design and a need for additional processing capacity could contribute to
high energy use and related costs. The constitutional compliance of DLT/blockchain technology, mainly
related to the notion of clarification with reference to the meaning and execution of intelligent contracts
through DLT/blockchain, remains a key obstacle.
1.4.2
Opportunities and Possibilities
DLT/blockchain technologies have the ability to offer substantial performance and cost reductions for com-
panies and end consumers by automating procedures and minimizing the need for more third-
party inter-
mediation [5]. The implementation of DLT/blockchain technology could theoretically allow new sources of
revenue for companies. The development of the DLT/blockchain ecosystem could contribute to the emer-
gence of new economic and business models; for example, new modes of cooperation and cryptocurrencies.
FIGURE 1.2 Specifications of areas in DLT/blockchain and potential timeline predictor.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-32-320.jpg)
![1 • Fundamentals of Blockchain and DLT 13
The DLT method used among ether, a digital currency newly launched from Ethereum, demands
substantially less computational power. Permissioned blockchains usually don’t need complicated “work
evidence,” since network members are preselected and trusted, as a consensus framework for verifying
transactions. Other consensus processes exist, such as a proof of engagement that honors seniors through
computer power and includes proof of payment of an estate.
1.5.2 Distributed Ledger
The distributed functionality of DLT enables self-
interested P2P network users to independently record
validated data without depending on even a trustworthy central group in a shared directory. The replace-
ment of a key group will speed up the preservation of the headline and further reconciliation expense and
inefficiency. It can also improve security, since a single attack point in the whole network is no longer
possible. Authorized programs can more easily integrate into current legal and regulatory processes and
arrangements. However, DLs who are allowed to some extent will take advantage of DLT’s most signifi-
cant developments, including the absence of a central party.
1.5.3 Centralized Ledger
As shown in Figure 1.3, both parties merge their territorial databases with a nationally managed and
regulated electronic ledger from a confident central group [4].
FIGURE 1.3 Centralized ledger.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-34-320.jpg)
![14 Recent Trends in Blockchain
1.5.4
Distributed Ledger (Permissionless)
A complete and latest copy is available in any node in a P2P network. The network member communi-
cates to all nodes any suggested local inclusion to its directory. Collectively, nodes verify the shift using a
consensus algorithm [4]. Once certification is approved, all the respective ledgers will be added to ensure
data integrity across the network. Figure 1.4 illustrates a permissionless distributed ledger.
1.5.5
Distributed Ledger (Permissioned)
Nodes require the authorization of a central authority from a licensed framework to reach the network and
alter the repository, as shown in Figure 1.5. Identity checking can provide access controls. In the sense of
distributed networks, the consensus on fault tolerance has been thoroughly discussed. Through control
of information dissemination in the network of the components distributed, a consensus fault-
tolerant
algorithm ensures that all components rely on shared data values and carry out a certain way to proceed,
despite the existence of flawed components and unstable communication links, in reaction to a request [4].
This promise of consensus is important for a distributed system to operate normally. As an output system,
a blockchain system uses a consensus technique to ensure that all network nodes agree on a single transac-
tion history chain, as malfunctioning and malicious nodes adversely affect them.
1.5.6
Fault-
Tolerant Consensus in a Distributed System
While physically isolated, all elements of a distributed system aim to accomplish a shared purpose. In the
simplest terms, consensus implies that these elements come to an agreement on certain validity of data.
FIGURE 1.4 Distributed ledger (permissionless).](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-35-320.jpg)
![1 • Fundamentals of Blockchain and DLT 15
The machine elements and their contact networks in an individual system are vulnerable to unexpected
failures and detrimental consequences. This section addresses the consensus topic of message-
passing
systems [6] where two forms of component failures exist: crash and Byzantine failure. Those part failures
in distributed computation can be accepted in two practice consensus algorithms.
1.5.7
The System Model
In a distributed system, there are three main consensus factors: network synchrony, component failures,
and the consensus algorithm [7].
1.5.7.1 Network Synchrony
Network synchrony in the distributed system is a fundamental principle. It determines how well the device
elements are organized. Before any protocol construction or performance measurement, we need to have
the network synchronization state. Three network synchronization requirements occur in particular:
• Synchronous: Part operations are rounded. The central clock synchronization service also
makes it possible. Both components carry out the same form of operations in each round.
• Asynchronous: Portion processes are uncoordinated. This is frequently the product of no clock
sync service or part clocks drifting. Each part shall not be bound by any laws of teamwork and
shall execute an opportunity of its own routine. The distribution of messages or a higher limit
on message transmission between components is not assured.
FIGURE 1.5 Distributed ledger (permissioned).](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-36-320.jpg)
![16 Recent Trends in Blockchain
• Partly synchronous: component activities are not synchronized, but message propagation time
is at the upper limit. In other words, the transmission of messages is guaranteed, which might
not be in due course.
For most functional distributed networks, that’s the networking state. Thus, presume that the device is
indeed simultaneous or partly synchronous in most application areas. The voting mechanism in a national
assembly, for instance, is called synchronous, whereas the Bitcoin community is partly synchronous.
1.5.7.2 Faulty Component
A part is defective if it has a flaw that prevents it from running normally.
• Crash failures: The device suddenly fails to work and doesnot restart. Consider two types of
dysfunctional activities that a component might have. The other components will understand
the accident and timely change their local choices. The part behaves unilaterally without abso-
lute requirements.
• Byzantine failures: It may send conflicting signals or actually remain passive to the other ele-
ments. It will appear natural external sources and are not suspected by anyone in the network’s
history. In the case of Byzantine malfunction, the device mechanism is always misused or the
malicious actor is exploited. If several Byzantine components are present in the system, it will
disrupt the network even more. Byzantine fault is assumed to be the worst case for flaws of
modules, and the crash failure with Byzantine faults is also considered.
1.5.7.3 Consensus Protocol
A consensus protocol specifies a collection of rules for passing and processing messages to achieve agree-
ment on a shared topic across all interconnected resources [7]. A message-
passing law governs how far
a component communicates and switches messages, although a rule specifies how a component in the
face of those messages changes its internal status. In general, when all no-
fault components come to an
understanding on the same issue, they thus conclude that the consensus is achieved. The intensity of a
consensus mechanism from the security point of view will generally be calculated by the amount of dam-
aged components tolerated. Specifically, the crash-
fault tolerance to a consensus protocol can withstand at
minimum of one crash failure (CFT). Often, if only one Byzantine error could be accepted by a consensus
protocol, it is termed as accommodating Byzantine failure (BFT). The BFT consensus was obviously a
CFT due to the extreme inclusive interaction between Byzantine failures and crash failures. In addition,
compromise is not feasible for even one crash failure in an asynchronous framework [7][8]. The majority
of this chapter focuses on Byzantine error tolerance in synchronous or partly synchronous networks of
consensus protocols.
1.6 TRADEOFFS FOR BLOCKCHAIN SCALABILITY
One of the most common reasons for Bitcoin’s slow adoption is its scalability. The fact is that, in compari-
son to traditional central communication and technologies like Visa or AWS, cryptocurrency networks
are mostly lent out. For instance, in the region of 15 operations per second, Ethereum can execute transac-
tions—and Bitcoin is much slower. On the other hand, blockchain networks offer unique features that can-
not be accomplished easily with centralized techniques, such as digital format scarcity and unstopping.
If developers continue to experience and iterate new implementations of these assets within decentral-
ized apps, common platforms tackle scalability and transaction limitations. In this sense, the blockchain](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-37-320.jpg)
![22 Recent Trends in Blockchain
1.7.1.4
Prevent Repetition of Expenses
Consensus methods are based on particular algorithms to ensure that the publicly accessible ledger veri-
fies and validates only such transactions. This addresses the typical double-
dollar problem, that is, double
the digital money issue.
1.7.1.5 Tolerant Fault
The consensus approach is often defined by ensuring that perhaps the blockchain is error resistant, stable,
and secure. That is, except in accidents and challenges, the managed mechanism will operate forever.
There is already wealth of consensus mechanisms in the community of blockchain, and even more are
entering the marketplace. This requires that any production company and passionate developer in blockchain
know the factors that characterize a successful consensus mechanism, as well as the future impact of a bad one.
Let’s start with what is a positive thing about blockchain.
1.7.2
Properties of a Strong System for Consensus
1. Safe: All nodes will generate results which are true under the rules of the protocol in a success-
ful consensus process.
2. Inclusive: A strong framework for consensus means that every node of the network contributes
throughout the voting process.
3. Participatory: The strong consensus models are used as a mechanism for consensus whereby all
nodes communicate and contribute to the updating of the blockchain database.
4. Egalitarian: Another feature of a strong mechanism is that each vote obtained from the node
gives equal importance and weight.
1.7.3
Consensus Blockchain Algorithms Popular in the Enterprise
Figure 1.9 illustrates the consensus blockchain algorithms popular in the enterprise.
1.7.3.1
Proof of Work (PoW)
Proof of work itself is blockchain’s oldest consensus tool. It is also called mining, whereby miners are
called the participating nodes [9].
The miners must solve complicated mathematical puzzles using extensive computational power in
this control mechanism. The new tools used include graphics processing unit (GPU) mining operations,
central processing unit (CPU) mining operations, application-
specific integrated circuit (ASIC) mining
operations and field-
programmable gate array (FPGA) mining operations. Being the one who solves the
problem the first time will be awarded a block.
1.7.3.2
Proof of Stake (PoS)
Proof of stakes is the simple alternative to the PoW consensus protocol which respects the environment
[9]. The block creators are not really miners in this blockchain system, but act as validators. They get a
chance to build a block that saves resources and reduces time overall. But they have to spend a certain
large sum of money or acquire a majority stake to become another validator.
1.7.3.2.1 Delegated Proof of Stake (DPoS)
The stakeholders stake each coin and voting for just a number of delegates for delegates to the assigned
proof of stake, in such a way that the more investment they spend, the more weight. For instance, if](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-43-320.jpg)
![1 • Fundamentals of Blockchain and DLT 23
consumer A invests a delegate ten coins and user B spends five coins, A’s votes will get a greater weight
than B’s. Delegates are often compensated by purchase costs or certain quantities of coins. DPoS is among
the fastest underlying blockchain models and is commonly accepted as a democracy, because of another
direct risk voting mechanism [9].
1.7.3.2.2 Leased Proof of Stake (LPoS)
LPoS is an updated version of the Waves network consensus framework for PoS.
Contrary to the standard PoS method in which each node has a certain cryptocurrency right to the
next blockchain, this consensus algorithm helps users to rent those balances to complete nodes.
But if one leases the greater sum to the entire network, it is more likely that the next block will be
created. In addition, the leaser is paid a processing cost percentage, which is received by the entire node.
This PoS version is an effective and secure choice for public cryptocurrencies growth.
1.7.3.3
Byzantine Fault Tolerance (BFT)
The Byzantine failure resistance is used, as its name implies, to dealing with Byzantine faults: a situation
in which players in the system have to compromise on an appropriate strategy to prevent a disastrous sys-
temic failure; however, some of them would be questionable. The BFT consensus paradigm is primarily
PBFT and DBFT in the cryptocurrency arena.
1.7.3.3.1 Practical Byzantine Fault Tolerance (PBFT)
PBFT is a compact algorithm which addresses the problems of the Byzantine general failure by encourag-
ing users to validate their messages by executing a computer to determine the authenticity of a message.
FIGURE 1.9 Consensus blockchain algorithms popular in the enterprise.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-44-320.jpg)
![28 Recent Trends in Blockchain
1.8.5
The Universe of Distributed Ledger
The purpose of this series was to implement blockchain technology with an emphasis on blockchain
protection. Many distributed ledger implementations have various data structures and security features.
Blockchain may also be expanded by external devices communicating by application programming inter-
faces (APIs) or intelligent agreements. It is important to take account of all available infrastructure and
related security concerns when planning a distributed ledger approach.
1.9 EMERGING BLOCKCHAIN APPLICATIONS: BEST-
FIT APPLICATION SCENARIOS AND MODELS
The best in terms of blockchain technology implementations for blockchain technology were planned to
explore reliability, immutability, and transparency. A blockchain system of transactions reported secretly
and which cannot be changed or abused, does not have a superior participant.
Blockchain networks ought in general to fix those sore points only with the specific subject scenarios by
converting an untrustworthy ecosystem into a creditworthy blockchain environment. A blockchain framework
can also be built as a distributed ledger as an infrastructural ecosystem of blocks that are distributed not only
in all its modern architecture, but also in other its data and operating rights. There are a variety of decentral-
ized peer entities in the ledger of the ecosystem. The ecosystem members are peer bodies with equal rights.
The data from ecosystem documents are private and independent, meaning that the members can be used and
received. Tens of thousands of blockchain technology-
based software programs have been established for stor-
age, finance, smart contracts, data API, to provide service-
level or data-
level or business-
level infrastructure,
notarization, asset dealing, bank clearing, e-
commerce, social communication, and the Internet of Things.
1.9.1
Cryptomonetary and Payment Blockchains
It is Bitcoin’s cryptocurrency that provides acceptance and stability for blockchain technology, as block-
chains offer Bitcoin’s safe, accessible, and decentralized transaction platform [10].
For this time, the various ICO (initial coin offering) systems prevailed worldwide. The majority of
the blockchain concepts are evolving from the blockchain, and even if few of them succeed and Bitcoin is
illegally in some countries, cryptocurrency and payment firms continue to appear among the most com-
mon applications. Figure 1.10 shows the five blockchain enterprise concerns.
FIGURE 1.10 Five blockchain enterprise concerns.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-49-320.jpg)
![1 • Fundamentals of Blockchain and DLT 29
1.9.2
Product Monitoring Blockchains
The best method of religious behavior monitoring is to use blockchain technologies. In order to minimize
prescription drug fraud, a blockchain-
based technology was proposed in the health sector to incorporate
medical knowledge and the dental industry. The blockchain helps address issues that are often kept with-
out complete patient control by private data collectors. Blockchains can monitor transactional information
effectively and confidentially at each level of the process [10][11]. Several Internet of things (IoT) imple-
mentations have been placed on the market for commercial blockchains.
1.9.3
Supply Chain Blockchains
The supply chain is the most suitable place for blockchains, since several businesses situated in the supply
chain need another likely to default system to cooperate [10][12]. The ecosystem blockchain can be built to
ensure that the supply chain participants receive safe, creditworthy, and full information to prevent decep-
tion. For medium-
sized and small enterprises, the reliable statistics are beneficial in delivering financial
services, a challenging topic in conventional sectors. The finance agency will include creditworthy pur-
chasing orders with funds for small vendors and service providers.
As Figure 1.11 demonstrates, the information can be found on several blockchain financing projects
for the supply chain [10][13]. In addition, with intelligent contracts, blockchains are able to make trades and
collaborative among a supplier’s chain more stable and trustworthy. Intelligent agreements could be used
to write and automatically conduct the whole transaction in transparent, safe, and cost-
effective manner.
For instance, a blockchain-
based production credit mechanism for the purpose of controlling business-
to-
business cooperation between socialized manufacturing tools is proposed.
1.9.4
Blockchains for Business Applications
Blockchains can apply in many business fields, but as previously described, most businesses have strug-
gled. The key to a workable blockchain technology is a viable application scenario. The scenarios must be
FIGURE 1.11 A blockchain ecosystem for car supply chain.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-50-320.jpg)
![30 Recent Trends in Blockchain
drawn up in order to test the special characteristics of blockchain and to follow invented market principles
in a developed world, rather than traditional ones. It is promising that many efforts and undertakings are
being carried out all over the world. Onecan find loads of blockchain ventures in hundreds of technology
fields on blockchain-
related websites [10][13]. In the literature, there are still few blockchain attempts.
For instance, a blockchain science information system is suggested to decrease the expense of access-
ing scientific information and making it free and universal. A blockchain credit global higher education
network is proposed for an internationally trusted, transparent university education payment and ranking
framework that will provide learners and institutions of higher education and other future stakeholders
with a globally united perspective [10][14]. A blockchain digital infrastructure has been built to create
protected digital identities that help minimize identity fraud and promote public safety, allowing people
to conduct high-
value and everyday online transactions [10][15].
1.9.5
Blockchains for Public Services
There is no awareness of current credit structures due to different brokerage systems, in appropriation,
centralized and stagnant appraisal models, and inadequate funding. The autonomous blockchain technol-
ogy is known to be the next version of the credit system because it is exchange based and suits all parties
participating in trading. It is planned to be an interconnected, traceable, customized, and dynamic block-
chain ecosystem. In addition to reliable information in such a blockchain scheme, the aim is to allow the
participants and the transactions credibility. It promotes credible market promises with lifecycle, multi-
media monitoring, and credit brokerage dependence.
1.9.6
Underdeveloped Blockchain Techniques
The groundbreaking decentralized project, Bitcoin cryptocurrency, has many detractors around, while
much of the deviated cryptocurrency projects except Bitcoin have collapsed. A significant number of
blockchain implementations have also been terminated, and in another implementation case, no block-
chain project has been found to succeed. Yet, the magical innovations of blockchain are so enticing that
people never give up. Many investigations have been carried out to develop their key strategies or to iden-
tify viable and successful worldwide use scenarios.
There are many common and exciting blockchain strategies, like blockchain creditworthiness, per-
formance, safety/privacy, supervision, and integration online. The underdeveloped approaches are aimed
at solving key issues that obstruct the adoption of blockchain systems and their growth. Blockchain net-
works are creditable by the devoted credit processes, but blockchains are a creditworthy framework to
store and run records. It is commercially driven to please all the participants in the exchange.
The credit framework offers an open, fair, and credible platform to implement a decentralized
creditworthiness environment, and all blockchain processes are processed by a series of intelligent
contracts. The creditworthiness method is designed to enhance the integration, traceability, dynam-
ics, and customization of the credit system. In order to test the viability and efficacy of a suggested
independent credit system, numerous pilot programs have been created. As public consumer and cred-
itworthiness query systems, four loan worthiness clouds have been created. Four forms of blockchain
networks have been identified which include public blockchains, private blockchains, consortium
blockchains, and hybrid blockchains. It is difficult to attain public blockchains while private block-
chains don’t really display their technological ability. Most of the initiatives currently in development
use a consortia or hybrid blockchains that take some central mechanisms and some decentralized
mechanisms [10].
For the time being, Bitcoin’s characteristics remain paramount in blockchains. As seen in Figure 1.12,
Libra, DCEP, and Bitcoin have their numerous views. There is a need for a range of developments in
blockchain strategies, which are the online protection of blockchain, and the efficiency of PoW public](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-51-320.jpg)
![1 • Fundamentals of Blockchain and DLT 31
blockchains has been considered quite low [10][16]. A variety of basic technologies for critical blockchain
problems are given as follows:
1. Distributions of computers with central public blockchains such as the theorem limit, ACID,
and Paxos/Raft.
2 Stable multiparty computing advanced techniques for decentralized networks, including a con-
sensus system, Byzantine concerns, and algorithms.
3. Blockchain data mechanism has been developed to fulfill particular business functions through
triggers for blockchain ventures, and a number of business levels for blockchain-
related imple-
mentations with the technology on the market technology. Advanced strategies include shared
storage data attribute-
based encryption and zero knowledge–based attributes.
The blockchain architecture develops to investigate integrated blockchain networks with MSR, identify
producer-
based block data structure, replace blockchain PoW with corporate rewards, and establish block-
chain network consensus structures and gates to co-
locate blockchain and Internet facilities to promote
efficient and complicated trading processes. Smart contracts for stable authentication and immersive mod-
els should be built for unmanned sector. Further data management methods for combining data both
in and out of the blockchain systems have been developed to overcome data shortage and inadequacy
through auto-
regulated blockchain data.
1.9.7
Blockchain Applying Strategies
A viable and effective blockchain technology platform has many important issues to solve. A traditional
blockchain ecosystem has four layers for the computing framework, including the blockchain, intelligent
transactions, services, and interfaces.
Critical problems for an ecosystem include developing a network model, the ecosystem architecture,
member and approval practices, polling and nodes, benefits, intelligent contracts, and consumers. In addi-
tion, algorithms for data collection and analysis are expected to solve crucial problems in blockchain
applications. For most existing ventures, the blockchain network architecture remains an obstacle. The
blockchain methods have evolved quickly, and there have been no well-
accepted technological standards.
Many Bitcoin ventures have not been accepted because of their inefficiency and performance costs.
Some take blockchain as an infrastructure in distributed databases. More projects are built for hybrid
networks or variety network models that are self-
designed. A traditional blockchain environment consists
of a decentralized blockchain, participants’ knowledge systems with blockchain programming interfaces,
FIGURE 1.12 Features of Bitcoin, Libra, and DCEP.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-52-320.jpg)
![32 Recent Trends in Blockchain
and a series of intelligent operating contracts. The blockchain offers, among other things, a transparent and
self-
regulating computer system that stores both data and transactions. Information systems for participants
are designed for blockchain consumers and enable business data on blockchains to be accessed or uploaded.
Depending on the Bitcoin blockchain and their position, participants must be identified. The nodes
of the polling system and organizational priorities are established. The admission policy and the neces-
sary details are referred to as network model and in case of blockchain consortia. To render blockchain
to prevail and design an effective consensus mechanism, a fair and efficient reward mechanism should
be created. Intelligent contracts are well known as the biggest blockchain technologies with the equality,
transparency, approval and legitimacy of a blockchain ecosystem [12].
The blockchains can work without human interference through a series of intelligent contracts. The
intelligent contracts are designed for the predetermined blockchain numerals.
Callbacks from the blockchain scheme, other consensus mechanisms, or information structures of
the parties may be invoked. In general, both the blockchain processes and implementation rules can be
coded as smart contracts. There seem to be three types of cryptocurrency applications that communicate
through programming interfaces with the Bitcoin community. In the stakeholders’ data systems, the first
class of customers is developed; both management accounting systems and integrated systems are one of
them. The second category of customers is intelligent contracts or the blockchain operating system, like
the decentralized clients. The third form of consumer is the blockchain public utilities, which provide the
participants and future participants with a public interface.
Techniques for gathering data are important to help companies rooted on blockchain. It is assumed
that the information are self-
regulated and privately owned by the blockchain users, which poses some
of the common problems in data processing. For lost data, characteristics, and redundant data, you need
to build excellently compensation mechanisms. During the same period, it will be important to build
weighting and cross-
checking algorithms to leverage interconnected data on engagement from within and
outside of Bitcoin and blockchain, which can be built as smart contracted knowledge collection systems.
1.9.8
Application Development Environments for Blockchain
For particular purposes or scenarios like supply chain funding, financial clearance and company regula-
tion, and tracking hundreds of cryptocurrency, development environments have also been established.
Improved infrastructure, consensus processes and design patterns have been developed to achieve
higher efficiency and better suit special scenarios in the generic production environment of blockchain
applications.
For example, with their specific consensus mechanisms, frameworks, and architecture, a permitted
cryptocurrency called Beihangchain was already created. The blockchain uses the blockchain account
and a blockchain exchange tool to cover a range of applications [10][17]. Hyperchain is indeed a block-
chain application that offers blockchain network applications at a market level. The software provides
organizations with the possibility for implementation, extension, and maintenance of their blockchain
network on established data centers [10][18].
1.10 BLOCKCHAIN USER AUTHENTICATION
AND PERMISSION
Utilizing public key encryption is to secure the permission of blockchain customer. Within its simplest
form, blockchain technology-
based properties are inherent; for example, the possession of an object is
determined by hidden key data [19]. Dedicated wallet providers may be used to incorporate authenticating
two-
factor or other authentication protocols near the centralized electronic money networks.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-53-320.jpg)
![1 • Fundamentals of Blockchain and DLT 33
A Bitcoin-
like scripting language renders custodial bags. Special hardware wallets can boost the
security capabilities of the public-
key cryptography (PKC) for signing transactions.
• Overall, blockchain offers security decentralization, removing single failure points inherent in
central e-
money books.
• Blockchain users can use hierarchies of deterministic wallets and a payment to contract proto-
cols to preserve user anonymity that allows the development of publicly unlinkable on-
demand
audit addresses. Using range evidence, transaction amounts might be masked. And in the case
of even more complicated payment systems, for example for intelligent contracts, secret shar-
ing proofs and stable multipartisan formulas may be used to operate contracts without exposing
data to any computer.
• As a full-
fledged event ordering infrastructure, blockchain could be used for distributed public
key infrastructure that connects the identity of individuals and organizations to their public
key. Public infrastructure may be structured in the form of blockchain or a particular network
protocol. The legitimate value conversion and asset issuance will be allowed by PKI.
1.10.1 Blockchain Authentication
Blockchain security applies to schemes that test users for the resources of blockchain and other virtual
money underlying technologies. Blockchain uses PKC to encrypt wallets or locations where value and
function are safely stored. The ledger uses PKC [19]. There are therefore interesting parallels between
blockchain authentication and technology protecting. As the key feature, identity and access management
(IAM) for both the blockchain would be a cryptocurrency wallet; its user experience (UX) and user inter-
face (UI) designs are nevertheless very weak without even a modern verification component, including
true password-
free protection. It is worth mentioning that encryption developers and blockchain designers
also have an enthusiasm with both markets, which allows blockchain programmers an essential aspect of
security and innovation.
1.10.2
Blockchain-
Based Authentication of Devices and People
Using blockchain technology for providing secure identification and authentication of individuals and
devices with publicly available encryption. The Internet of things is a system of devices, actuators, soft-
ware and connective devices for the connection, interaction and exchange of data across gadgets, cars,
and homes. Every element of our daily life is affected by IoT systems, from aircraft, vehicles, and drones
to hospital devices, robotics, security cameras, and smartphones.
Primechain-
API blends blockchain technology power and public key encryption to allow:
1. Smartphones, other computers, and consumers are securely authenticated and marked.
2. Internet correspondence is secure and encrypted.
3. Login schemes without password.
4. Preventing counterfeit emails.
5. DNS tracks authentication and spoofing prevention.
6. Electronic signatures.
Authentication centered on blockchain has certain special characteristics:
1. On the computer, keys to sign and decrypt will remain.
2. Authentication and encryption keys are stored on the blockchain.
3. Safe from sensitive cyberattacks like phishing, intermediary, play attacks.](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-54-320.jpg)
![ALGONA, WASHINGTON, GIRL, AGED 12, EARNING HOME
CREDITS
Elizabeth G—— and her mother have a small blackboard in
the kitchen and here they keep a record of all the work
Elizabeth does
Neatness and personal care are habits that mean much to any one.
Some grown people cannot help being neat. Others apparently
cannot be neat no matter how much they try. Something is always
wrong. It is a habit formed when young, perhaps before the age of
twenty. In Mr. O'Reilly's list he included sleeping with window boards
in, bathing, caring for the nails, brushing the hair, cleaning the teeth,
and going to bed by nine o'clock. Personal care has been given a
place on the Portland home credit record[2]
which is now used in
some of the schools. Algona, a home credit school about twenty
miles from Seattle, uses the Portland personal care section, including
bathing, brushing teeth, sleeping with open windows, going to bed
before nine o'clock, and attending church or Sunday school. In](https://image.slidesharecdn.com/17566962-250606053006-88c43acf/85/Recent-Trends-In-Blockchain-For-Information-Systems-Security-And-Privacy-1st-Edition-Ajith-Abraham-71-320.jpg)
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- 6. Recent Trends in Blockchain for Information Systems Security and Privacy
- 8. Recent Trends in Blockchain for Information Systems Security and Privacy Edited by Amit Kumar Tyagi and Ajith Abraham
- 9. First edition published 2022 by CRC Press 6000 Broken Sound Parkway NW, Suite 300, Boca Raton, FL 33487–2742 and by CRC Press 2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN © 2022 Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, LLC Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, access www.copyright.com or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978–750–8400. For works that are not available on CCC please contact mpkbookspermissions@tandf.co.uk Trademark notice: Product or corporate names may be trademarks or registered trademarks and are used only for identification and explanation without intent to infringe. ISBN: 978-0-36768-943-8 (hbk) ISBN: 978-0-36768-955-1 (pbk) ISBN: 978-1-00313-973-7 (ebk) DOI: 10.1201/9781003139737 Typeset in Times by Apex CoVantage, LLC
- 10. v Contents Prefacevii Acknowledgmentsix Editorsxi Contributorsxiii TRACK 1 Blockchain: Background and Importance 1 1 Fundamentals of Blockchain and Distributed Ledger Technology (DLT) 3 Leema Roselin G, Rajmohan R, Usharani S, Kiruba K, Manjubala P 2 Blockchain for Information Systems Applications 39 Divya Stephen, Blesmi Rose Joseph, Neeraja James, and Aswathy S.U. 3 A Dynamic Trust Model for Blockchain- Based Supply Chain Management Networks59 Shivam Narula, Annapurna Jonnalgadda, and Aswani Kumar Cherukuri TRACK 2 Blockchain for Information Systems: New Methods for Day-to-Day Problems 75 4 Blockchain and IoT Technologies to Improve the Agricultural Food Supply Chain 77 Saranya P, Maheswari R, and Tanmay Kulkarni 5 A Novel Hybrid Chaotic Map–Based Proactive RSA Cryptosystem in Blockchain 87 S. Selvi and M. Vimala Devi 6 Institutional Technologies for Blockchain: Implications and Policies 99 Shyam Mohan J.S., S. Ramamoorthy, Narasimha Krishna Amruth Vemuganti, Vankadara Naga Venkata Kuladeep, and Raghuram Nadipalli 7 Two- Fold Security Model Using 2D- Vector Key Bunch and Privacy Preservation of the EHRs in the Distributed Network Involving Blockchain 117 Shirisha Kakarla, Geeta Kakarla, and D. Narsinga Rao
- 11. vi Contents TRACK 3 Blockchain in the Near Future: Possible Uses and Research Gaps 139 8 Analysis of Security and Privacy Aspects of Blockchain Technologies from Smart Era’ Perspective: The Challenges and a Way Forward to Future 141 Amit Kumar Tyagi 9 Applications of Blockchain Technologies in Digital Forensics and Threat Hunting 159 Shabnam Kumari, Amit Kumar Tyagi and G. Rekha 10 Healthcare Solutions for the Next Generation: A Useful Explanation from the User’s Perspective 175 Amit Kumar Tyagi, Meenu Gupta, Aswathy S.U., and Chetanya Ved 11 Blockchain- Based Medical Insurance Storage Systems 219 Ciza Thomas, Bindu V, Amrutha Ann Aby, Anjalikrishna U.R., Anu Kesari, and Dhanya Sabu 12 Hybrid Multilevel Fusion: Integrating Score and Decision Levels of Fusion for Multimodal Biometric Systems 237 Aarohi Vora, Chirag Paunwala, and Mita Paunwala 13 Blockchain: A Security Component for Data Security and Privacy—Current Trends in the Automotive Industry 247 Sruti C R, S Umamaheswari TRACK 4 Blockchain with Other Computing Environments 259 14 The Future of Edge Computing with Blockchain Technology: Possibility of Threats, Opportunities, and Challenges 261 Aswathy S. U., Amit Kumar Tyagi and Shabnam Kumari 15 CryptoCert: A Blockchain- Based Academic Credential System 293 Varun Wahi, Aswani Kumar Cherukuri, Kathiravan Srinivasan, and Annapurna Jonnalagadda 16 A Comprehensive Transformative Effect of IoT, Machine Learning, and Blockchain in Computing Technology 315 Deepshikha Agarwal, Khushboo Tripathi, and Kumar Krishen Index343
- 12. vii Preface Blockchain technology as an emerging distributed, decentralized architecture and computing paradigm, which has accelerated the development/application of the cloud/fog/edge computing, artificial intelli- gence, cyberphysical systems, social networking, crowdsourcing and crowdsensing, 5G, trust manage- ment, finance, and other many useful sectors. Nowadays, blockchain technology uses are in information systems to keep information secure and private, but many threats and vulnerabilities have been faced in the past decade on blockchain, like 51% attacks, double spending attacks, etc. The popularity and rapid development of blockchain brings many technical and regulatory challenges for research and academic communities. The main goal of this book is to encourage both researchers and practitioners to share and exchange their experiences and recent studies between academia and industry. In summary, this book provides the reader with the most up- to- date knowledge of blockchain in mainstream areas of security and privacy in the decentralized domain, which is timely and essential (this is due to the fact that distributed and P2P [peer- to- peer] applications are increasing day by day, and attack- ers adopt new mechanisms to threaten the security and privacy of the users in those environments). This book provides a detailed explanation of security and privacy aspects with respect to blockchain for infor- mation systems, and we assure the reader that this book will be more helpful for students, researchers, and scientists to clear their doubts regarding blockchain uses in information systems. Also, this book will provide a complete detail from origin of blockchain to till this smart era (including security and privacy issues, where almost applications/sectors use digital devices), i.e. uses in many applications for reducing corruption and building trust in people or society (via P2P networking). Finally, researchers will be able to select their research problems (to do their research) from future research directions sections from our included section in this book. In conclusion, we want to thank our God, family members, teachers, friends, and last but not least, all our authors from the bottom of our hearts (including the publisher) for helping us complete this book before the deadline. Really, kudos to all. —Amit Kumar Tyagi, —Ajit Abraham
- 14. ix Acknowledgments First of all, we would like to extend our gratitude to our family members, friends, and supervisors, who stood with us as advisors in completing this book. Also, we would like to thank our Almighty “God” who gave us the ability to complete this project. We also thank CRC Press for providing continuous support during this COVID 19 pandemic, and our colleagues at the college/university and others outside the col- lege/university who have provided their support. Also, we thank our Respected Madam Prof. G Aghila and our Respected Sir Prof. N Sreenath for giving their valuable inputs and helping us in completing this book. —Amit Kumar Tyagi —Ajith Abraham
- 16. xi Editors Amit Kumar Tyagi is Assistant Professor (Senior Grade), and Senior Researcher at Vellore Institute of Technology (VIT), Chennai Campus, India. He earned his PhD in 2018 from Pondicherry Central University, India. He joined the Lord Krishna College of Engineering, Ghaziabad (LKCE) from 2009– 2010 and 2012–2013. He was Assistant Professor and Head Researcher at Lingaya’s Vidyapeeth (formerly known as Lingaya’s University), Faridabad, Haryana, India from 2018 to 2019. Dr. Tyagi’s current research focuses on machine learning with big data, blockchain technology, data science, cyberphysical systems, smart and secure computing and privacy. He contributed to several projects such as “AARIN” and “P3- Block” to address some of the open issues related to the privacy breaches in vehicular applications (such as parking) and medical cyberphysical systems (MCPS). He has also published more than 8 patents in the area of deep learning, Internet of Things, cyberphysical systems and computer vision. Recently, he was awarded best paper award for “A Novel Feature Extractor Based on the Modified Approach of Histogram of oriented Gradient”, ICCSA 2020, Italy. He is a regular member of the ACM, IEEE, MIRLabs, Ramanujan Mathematical Society, Cryptology Research Society, and Universal Scientific Education and Research Network, CSI, and ISTE. Ajith Abraham is Director of Machine Intelligence Research Labs (MIR Labs), a not-for-profit scientific network for innovation and research excellence connecting industry and academia. As an investigator and co-investigator, he has won research grants worth over US$100 million from Australia, USA, EU, Italy, Czech Republic, France, Malaysia, and China. His research focuses on real world problems in the fields of machine intelligence, cyberphysical systems, Internet of Things, network security, sensor networks, web intelligence, web services, and data mining. He is Chair of the IEEE Systems Man and Cybernetics Society Technical Committee on Soft Computing. He is editor-in-chief of Engineering Applications of Artificial Intelligence (EAAI) and serves/served on the editorial board of several international journals. He earned his Ph.D. in computer science from Monash University, Melbourne, Australia.
- 18. xiii Contributors Amrutha Ann Aby Sree Chitra Thirunal College of Engineering Trivandrum, India Deepshikha Agarwal Department of Computer Science and Engineering Amity University Lucknow, India Anjalikrishna U. R. Sree Chitra Thirunal College of Engineering Trivandrum, India Aswathy S. U. Department of Computer Science Jyothi Engineering College Thrissur, India Bindu V Sree Chitra Thirunal College of Engineering Trivandrum, India Aswani Kumar Cherukuri School of Information Technology Engineering Vellore Institute of Technology Vellore, India Meenu Gupta Department of Computer Science and Engineering Chandigarh University Punjab, India Neeraja James Department of Computer Science Jyothi Engineering College Thrissur, India Annapurna Jonnalagadda School of Computer Science Engineering Vellore Institute of Technology Vellore, India Blesmi Rose Joseph Department of Computer Science Jyothi Engineering College Thrissur, India Geeta Kakarla Sreenidhi Institute of Science and Technology Hyderabad, India Shirisha Kakarla Sreenidhi Institute of Science and Technology Hyderabad, India Anu Kesari Sree Chitra Thirunal College of Engineering Trivandrum, India Kiruba K Department of Computer Science and Engineering IFET College of Engineering Villupuram, India Kumar Krishen University of Houston Houston, TX Tanmay Kulkarni School of Computer Science Engineering Vellore Institute of Technology Chennai, India Shabnam Kumari Department of Computer Science Faculty of Science and Humanities SRM Institute of Science and Technology Chennai, India Leema Roselin G Department of Computer Science and Engineering IFET College of Engineering Villupuram, India
- 19. xiv Contributors Maheswari R School of Computer Science Engineering Vellore Institute of Technology Chennai, India Manjubala P Department of Computer Science and Engineering IFET College of Engineering Villupuram, India Raghuram Nadipalli Department of Computer Science and Engineering Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya University Kanchipuram, India D. Narsinga Rao Directorate of Economics and Statistics (DES) Govt. of Telangana State, India Shivam Narula School of Computer Science Engineering Vellore Institute of Technology Vellore, India Chirag Paunwala Department of Electronics and Communication Sarvajanik College of Engineering and Technology, affiliated to Gujarat Technological University Ahmedabad, India Mita Paunwala Department of Electronics and Communication C K Pithawala College of Engineering and Technology, affiliated to Gujarat Technological University Ahmedabad, India Rajmohan R Department of Computer Science and Engineering IFET College of Engineering Villupuram, India S. Ramamoorthy Department of Computer Science and Engineering SRM IST Chennai, India G. Rekha Department of Computer Science and Engineering Koneru Lakshmaiah Education Foundation Guntur, India Dhanya Sabu Sree Chitra Thirunal College of Engineering Trivandrum, India Saranya P School of Computer Science Engineering Vellore Institute of Technology Chennai, India S. Selvi Department of Computer Science and Engineering Erode Sengunthar Engineering College Erode, India Shyam Mohan J. S. Department of Computer Science and Engineering Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya University Kanchipuram, India Kathiravan Srinivasan School of Information Technology Engineering Vellore Institute of Technology Vellore, India Sruti C R School of Management Studies Sathyabama Institute of Science and Technology Chennai, India Divya Stephen Department of Computer Science Jyothi Engineering College Thrissur, India Ciza Thomas Directorate of Technical Education Government of Kerala Trivandrum, India Khushboo Tripathi Department of Computer Science and Engineering Amity University Haryana, India
- 20. Contributors xv Amit Kumar Tyagi School of Computer Science and Engineering Vellore Institute of Technology Chennai, India S Umamaheswari School of Management Studies Sathyabama Institute of Science and Technology Chennai, India Usharani S Department of Computer Science and Engineering IFET College of Engineering Villupuram, India Chetanya Ved Department of Information Technology Bharati Vidyapeeth College of Engineering Delhi, India Narasimha Krishna Amruth Vemuganti Department of Computer Science and Engineering Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya University Kanchipuram, India Vankadara Naga Venkata Kuladeep Department of Computer Science and Engineering Sri Chandrasekharendra Saraswathi Viswa Mahavidyalaya University Kanchipuram, India M. Vimala Devi Department of Computer Science and Engineering K.S.R. Institute for Engineering and Technology Tiruchengode, India Aarohi Vora Department of Electronics and Communication Gujarat Technological University Ahmedabad, India Varun Wahi School of Information Technology Engineering Vellore Institute of Technology Vellore, India
- 22. TRACK 1 Blockchain Background and Importance
- 24. 3 Fundamentals of Blockchain and Distributed Ledger 1 Technology (DLT) Leema Roselin G, Rajmohan R, Usharani S, Kiruba K, Manjubala P Contents 1.1 Introduction of Blockchain and Distributed Ledger Technology (DLT) 5 1.2 Works of Distributed Ledger Technology 6 1.2.1 Primary Attributes of DLT 7 1.2.2 The Ledger’s Dispersed Design 8 1.3 Theoretical Contributions to Blockchain and DLT 8 1.3.1 Contribution to Business Model Literature 8 1.3.2 Positive Contribution to Blockchain Works of Literature 9 1.4 Evaluation of Blockchain Problems and Opportunities 10 1.4.1 Main DLT/Blockchain Challenges and Opportunities 10 1.4.2 Opportunities and Possibilities 11 1.5 Distributed Solutions for Consensus and Failure Tolerance, Including Domain Consensus 12 1.5.1 Consensus Mechanism 12 1.5.2 Distributed Ledger 13 1.5.3 Centralized Ledger 13 1.5.4 Distributed Ledger (Permissionless) 14 1.5.5 Distributed Ledger (Permissioned) 14 1.5.6 Fault-Tolerant Consensus in a Distributed System 14 1.5.7 The System Model 15 1.5.7.1 Network Synchrony 15 1.5.7.2 Faulty Component 16 1.5.7.3 Consensus Protocol 16 1.6 Tradeoffs for Blockchain Scalability 16 1.6.1 The Top Two Tradeoffs to Blockchain Scalability: Level of Decentralization 17 1.6.2 Level of Programmability 18 1.6.3 Algorand Prioritized Performance over Turing-Complete Programmability 18 1.6.4 Ethereum Prioritized Turing-Complete Programmability over Performance 18
- 25. 4 Recent Trends in Blockchain 1.6.5 Choosing the Right Platform for Your Application 19 1.6.6 Tradeoffs between Distributed Ledger Technology Characteristics 19 1.7 Blockchain Consensus Algorithm 20 1.7.1 Strategies of Blockchain Mechanism 21 1.7.1.1 Unified Agreement 21 1.7.1.2 Align Economic Incentives 21 1.7.1.3 Equitable and Fair 21 1.7.1.4 Prevent Repetition of Expenses 22 1.7.1.5 Tolerant Fault 22 1.7.2 Properties of a Strong System for Consensus 22 1.7.3 Consensus Blockchain Algorithms Popular in the Enterprise 22 1.7.3.1 Proof of Work (PoW) 22 1.7.3.2 Proof of Stake (PoS) 22 1.7.3.2.1 Delegated Proof of Stake (DPoS) 22 1.7.3.2.2 Leased Proof of Stake (LPoS) 23 1.7.3.3 Byzantine Fault Tolerance (BFT) 23 1.7.3.3.1 Practical Byzantine Fault Tolerance (PBFT) 23 1.7.3.3.2 Delegated Byzantine Fault Tolerance (DBFT) 24 1.7.3.4 Direct Acyclic Graph (DAG) 24 1.7.3.5 Proof of Capacity (PoC) 24 1.7.3.6 Proof of Burn (PoB) 24 1.7.3.7 Proof of Identity (PoI) 24 1.7.3.8 Proof of Activity (PoA) 24 1.7.3.9 Proof of Elapsed Time (PoET) 25 1.7.3.10 Proof of Importance (PoI) 25 1.7.4 The DLT Consensus Ecosystem 25 1.7.5 Byzantine Fault Tolerance 25 1.7.6 Distributed Computing Consensus 25 1.7.7 Consistency Availability Partition Tolerance (CAP) 26 1.7.8 Permissioned/Private DLTs 26 1.8 Blockchain Extensions and Constraints 26 1.8.1 Constraints 26 1.8.2 Extensions 27 1.8.3 Sidechains 27 1.8.4 Channels of State 27 1.8.5 The Universe of Distributed Ledger 28 1.9 Emerging Blockchain Applications: Best-Fit Application Scenarios and Models 28 1.9.1 Cryptomonetary and Payment Blockchains 28 1.9.2 Product Monitoring Blockchains 29 1.9.3 Supply Chain Blockchains 29 1.9.4 Blockchains for Business Applications 29 1.9.5 Blockchains for Public Services 30 1.9.6 Underdeveloped Blockchain Techniques 30 1.9.7 Blockchain Applying Strategies 31 1.9.8 Application Development Environments for Blockchain 32 1.10 Blockchain User Authentication and Permission 32 1.10.1 Blockchain Authentication 33 1.10.2 Blockchain-Based Authentication of Devices and People 33 1.11 Computer and Hardware Encryption Implementations of Blockchain Technology 35 1.11.1 Blockchain Technology Can Transform the Security Industry 36 1.12 Conclusion 37
- 26. 1 • Fundamentals of Blockchain and DLT 5 1.1 INTRODUCTION OF BLOCKCHAIN AND DISTRIBUTED LEDGER TECHNOLOGY (DLT) Blockchain- based distributed ledger technology (DLT) has a range of possible uses outside the limited world of digital currency and cryptocurrencies that was first implemented as the underlying infrastruc- ture of the cryptocurrency Bitcoin. For example, DLT might have uses in capital markets for cross- border transfers, financial market infrastructure, and security registries. However, DLT’s future implementations are not confined to the financial industry [1][2]. DLT is pres- ently being explored by using trustworthy partners to verify flows and trends to promote digital identity goods or to create untampered, decentralized records of the distribution of goods and services through a supply chain [1][3]. Usually, DLT advocates emphasize a range of possible benefits over conventional unified ledgers and some other kinds of collaborative ledgers, like decentralization, deregulation, better transparency and easy accountability, speed and productivity improvements, cost savings, and modern- ization and fully programmability. That said, technology continues to improve and faces new threats and challenges, which are often yet to be addressed. Scalability, interoperability, organizational protection and cyber security, identity authentication, data privacy, transaction conflicts and redress mechanisms, and difficulties in establishing a regulatory and legal system for DLT implementations are the most widely cited technical, regulatory, and legal challenges relevant to DLT, which may bring significant changes in the functions and obligations of DLT implementation. Significant costs related to the transfer of current long- standing IT processes, operating structures and policy structures to DLT- based architecture are another problem, especially applicable to the field of financial market infrastructure. Many industry analysts note that DLT implementations would likely launch in places without many legacy automation investments, like financial transactions and syn- dicated lending in the financial industry, because of these challenges. It is possible to open/permitless or permit distributed ledger structures, and there are basic variations between these two forms that relate to somewhat different risk profiles. There is no centralized controller who manages access to the network in permissionless networks. A database server with the appropriate program is all that is required to enter the network and connect transaction history. Members of the network are preselected on registered networks by the controller or administrator of that same ledger, who manages access to the network and enforces the guidelines of the ledger. DLT led to a special and increasingly developing approach to data storage and distribution across various data sources or ledgers. Such technology enables the capturing, sharing, and synchroniza- tion of transactions and data through a global network of separate network members. A “blockchain” is a special kind of data structure in certain distributed ledgers that stores and transmits informa- tion in packages called “blocks” in a digital “chain” that are linked to each other. Blockchains use cryptographic and algorithmic techniques in an irreversible fashion to store and sync data throughout network. Distributed ledgers (DLs) are really a particular application of the wider “public ledgers” category which is simply represented as a shared data record across multiple parties. For instance, a new cryptocurrency transaction will be registered and distributed in a block of data to a network, which is first authenticated by members of the network and then connected in an append- only manner, to an existing block, thereby forming a blockchain. Even as linear chain expands as new blocks are inserted, each network member does not retrospectively modify older blocks. Note that blockchain technology is not inherently used by all distributed ledgers, and blockchain technology might be used in different ways instead. Blockchain arranges data in blocks, which are used primarily for square calculation in chains. Blockchain square tests the “Internet import” building block and alters contact tracking and peer- to- peer sharing, but it is not a requirement for a centrally organized body. “Value” means any records of ownership of plus such as money, shares, and land titles and, together, data such as identification, health data, and various personal details. Both forms have advantages and drawbacks that vary considerably in
- 27. 6 Recent Trends in Blockchain different usage cases. Registered programs, for example, are better at addressing identity authentication and data protection problems, but they involve a central access control authority that provides a pos- sible target for cyberattacks. It is also likely that approved structures could more conveniently integrate into current legislative and regulatory processes and administrative arrangements. To a degree, however, authorized DLs eliminate core advantages of the most important invention of DLT. This is because free permissionless DLs are accomplished through protection and system integrity by cryptography and algo- rithmic approaches ensuring that confidential network members are empowered to implement the ledger’s consistency without the use of entry barriers or trust among members. The majority of DLT’s research and development efforts are currently dedicated to upgrading finan- cial systems and procedures, and there is tremendous scope for this commitment to be leveraged for the good of developed countries by development organizations. With that being said, the technology is still at an initial phase of development, but there is still a ways to go before it will be possible to realize its full potential, particularly with regard to privacy, stability, interoperability, scalability, and regulatory and legal issues. It is not always an optimal strategy for development organizations to wait for “perfect” DLT solutions, though. Provided DLT’s ability to structure responses to growth problems in the finance indus- try and even beyond, the World Bank Group is able to track and form trends closely and, where necessary, promote their healthy implementation while ensuring institutional independence with respect to private sector actors. It needs not only analysis, and moreover legitimate experiments and trials, to grasp DLT’s true potential for growth goals. The use of DLT to help meet growth goals in the finance industry includes the development and suc- cessful promotion of vital accompanying components in addition to the development of the technology itself. Significant among these are user- friendly architecture of the mobile interface, money management, and functionality, a solid system for the safety of financial users, interoperability with conventional pay- ments and financial institutions and infrastructure, and efficient regulation. 1.2 WORKS OF DISTRIBUTED LEDGER TECHNOLOGY Distributed ledger technology falls on the back of numerous Internet- enabled (peer- to- peer [P2P]) applications, such as email, music distribution or other shared folders, and electronic mail. Internet- based asset ownership transactions, however, have been difficult for a long time, as this involves verify- ing that a resource is only exchanged by its rightful owner and guaranteeing that the resource cannot be transmitted multiple times, i.e. without double spending. Anything of worth may be the commod- ity at issue. DLT led to a fundamental and quickly changing approach to data recording and sharing across different data stores (ledgers), each of which has the very same data records and is stored and managed collectively by a distributed computer server network known as nodes. Another means of conversing of DLT is based on it being essentially a hierarchical database with some particular proper- ties. Blockchain, a specialized version of DLT, utilizes cryptographic and algorithmic approaches to construct and validate a constantly expanding, append- only data system that serves the purpose of a blockchain and serves the purpose of a ledger, a chain of so- called “transaction blocks.” New data- base additions are introduced by a member (node) who generates a new “data block” containing, for example, many transaction documents. Knowledge concerning this new block of data is then transmitted across the whole network, as shown in Figure 1.1, containing encrypted information such that transaction specifics are also not publicly dis- closed, as per a predefined analytic confirmation process (“consensus mechanism”), all network members jointly decide the legitimacy of the block. Only after authentication will all participants add their respec- tive ledgers to the new block. Each update to the database is repeated throughout the overall infrastructure by this process, and each member of the network has a complete, duplicate copy of the original ledger at a certain time. That methodology could be used to document transactions in a digital way on any
- 28. 1 • Fundamentals of Blockchain and DLT 7 commodity that can be depicted. A modification of the characteristic of the commodity or a transition of ownership may be a sale. 1. DLT systems based on blockchain occur as a result of an append- only data chain “blocks.” They are changes made to the database started by a few of the representatives nodes who is creating a new one “block” of data that contains several records of transactions [4]. 2. Information is then shared throughout the entire system about this new block of data containing encrypted information so that transaction information is not revealed to the public [4]. 3. The validity of the block is collectively evaluated by all network participants as per the pre- defined algorithmic evaluation technique “consensus mechanism” [4].After evaluation, all indi- viduals add their corresponding ledgers to the new block. Every other alteration to that same ledger is imitated all around the existing system through this mechanism, and each node on the network has a complete equivalent replica ledger at any time. Two key features for DLT- based network are: (i) capacity to digitally archive, monitor, and share “information” between multi- ple self- interested financial institutions with no need for a centralized record that is peer- to- peer without any need for counterparty trust, and (ii) ensuring that there is no “double spending.” 1.2.1 Primary Attributes of DLT For a number of years, there have been individual ledgers of layered privileges that are exchanged, read, and updated by just a network for verified users, but the idea of a decentralized, shared, and irreversible ledger was first understood via DLT. Three characteristics of DLT which are commonly considered essen- tial to the technology are the distributed design of a ledger, its system of consensus, and its cryptographic FIGURE 1.1 Data block transaction in DLT systems.
- 29. 8 Recent Trends in Blockchain frameworks. It also should be stressed that not a single, well- defined technique is DLT. Instead, currently, a multitude of blockchain technology and distributed ledger technology are involved or under production, and their architectures and accurate implementations differ based on the aims of the developers and the intent and level of development of the DL. 1.2.2 The Ledger’s Dispersed Design A structured mechanism that involves confidence throughout the team members has always been record- keeping. The most interesting development of DLT would be that, depending on the form of DL, power and over ledger doesn’t really lie with any single person but is with many or all network members. This also sets it apart from the other technical innovations that are widely found with current public ledgers, such as cloud storage or data replication. This implies, in particular, that no single network entity can change previous data entry throughout the DL ledger, and that no single individual can authorize new changes to the directory. A global consensus system is instead used to verify new data entries which are applied to a block- chain and therefore create new entries throughout the ledger. Only one edition of the ledger is avail- able at all times, and each network member has a complete up- to- date link to the original ledger. Each regional addition to that same ledger is spread to all nodes by a network member. Upon authentication; the latest transaction is applied to all applicable ledgers, ensuring continuity of data across the whole network. This distributed function of DLT helps interested participants in an independent P2P network to gather validated data, such as transaction information, without depending on a trustworthy central party, in their respective ledgers. The elimination of the core party will speed up and eventually reduce costs and inefficiencies related to the maintenance of a ledger and resulting reconciliations. It can also greatly improve protection, as the whole network no longer has a single attack target. To corrupt the chief, an attacker needs to take control of the majority of the servers on the network, which would not undermine the credibility of the system by corrupting one or more members. However, additional attack surfaces may be caused by privacy issues in the application levels placed on top of the DL. Layer vulnerabilities will cause DL device users failure, even though the core technology stays safe and stable. 1.3 THEORETICAL CONTRIBUTIONS TO BLOCKCHAIN AND DLT These results add to the literature on technology, as well as the marketing strategy, particularly creativity of the business model. 1.3.1 Contribution to Business Model Literature The results add in two respects to literature on the business model. Current research recognizes that the blockchain ability is to modify existing models and cause radically new products and services in sepa- rate branches without coping empirically with how this transition happens. This research examines this phenomenon empirically. The taxonomy strengthens the interpretation of market models through how blockchain operates. It can be a language which promotes a structured explanation of business models in blockchain. The taxonomy also reveals potential for creativity in the business model, without making its complexity too plain. In addition, the five idealized business strategy architectures allow better explaining
- 30. 1 • Fundamentals of Blockchain and DLT 9 the effect of cryptocurrency on business practices. The trends indicate potential options to build a busi- ness model using blockchain technologies. Project experiments operate as a testing technique of strictness, pertinence, and cycles in design. These periods are further characterized by recommendations for case surveys, the creation of taxono- mies, and cluster analysis. Case studies offer a generalized cross- sectional study of the methodological foundations. The creation of taxonomy then offers a structured approach to scientific and philosophical analysis. Cluster analysis finally means that trends are built to be robust. We draw upon all three layers of market models: real- world (cases), organizational models (taxonomies), and models. Therefore, the busi- ness model framework uses its full potential. On the basis of these approaches, we demonstrate how unique business models and models that take the current knowledge base into account and maintain realistic validity are routinely drawn up. In sum- mary, we first give first a common language for blockchain new business models mostly as a framework for future testing, classification, viewing, and review. Second, our broadly applicable research methodol- ogy reveals how to build a business model classification system for a certain area of operation and how to recognize business model trends. We are also contributing to business model research, as well as the increasing variety of business classifications focused on business models. 1.3.2 Positive Contribution to Blockchain Works of Literature Blockchain technology literature primarily focuses on technical issues and neglects their business impor- tance. In comparison, recent research lacks longitudinal study about how technological blockchain trans- forms market models. Including modern studies into blockchain and also its implementations, this review includes latest advances in practice to expand blockchain literature. We improve our understanding of the effect of blockchain technologies on business practices and business valuation through analytical and concept- based creation of a taxonomy business strategy and the extraction of five archetype designs for decentralized business strategies. The taxonomy shows essential aspects in which organizations using blockchain technologies can be identified and analyzed. The measurements include both strategies and components of business models of blockchain solutions. The trends often demonstrate concrete instances of how blockchain technologies can be leveraged for industry. By researching decentralized business strategies, this mem- ber an opportunity up a business viewpoint on the innovation body of knowledge on Bitcoin block- chain. Distributed restricted technology as a creative way of data management and upgrading inside and across entities has gained growing attention. DLT/core blockchain’s functions are linked to its distributed character independently from other databases. Different parties retain several versions of the headline, including format files by consensus without a third party need. Data can be generated by the DLT/blockchain: • Permanent record: The data applied to the blockchain is technically inalterable, stable, and protected for the existence of its ledger with the consensus of all members on its contents. • Decentralization: Nodes were capable of communicating directly, even without an intermedi- ary. That requires the right to initiate direct transfers of data or digitized properties. • Lack of one party’s unified power: Multiple members vote on improvements to the chief or improvements to the governance system. • New management and data sharing opportunities: These resources are gained by allowing par- ticipants to store and view diverse types of data. These frameworks together have a clear and verifiable transaction record. This helps DLT/blockchain to boost the performance, confidence, and data reconciliation of participants in the leaderboard. Although the finance industry consis- tently shows broad emerging trends in DLT/blockchain, its use in schooling, the artistic sector, the food industry, and agriculture have also been explored.
- 31. 10 Recent Trends in Blockchain 1.4 EVALUATION OF BLOCKCHAIN PROBLEMS AND OPPORTUNITIES In an attempt to comprehend the wider DLT/blockchain technologies environment and the significance that guidelines can play in their creation and application, it is crucial to understand DLT/blockchain’s challenges with regard to market development and technology adoption by end- users, as well as gover- nance and implementation. The prospective position of standards to benefit DLT/blockchain are the established fields where guidelines could—to different degrees—theoretically resolve difficulties and could support creativity, development, and competition in the DLT/blockchain ecosystem [5]: • Specifications could play a significant role in maintaining interoperability between various Distributed Ledger Technology (DLT)/blockchain/DLT applications and, in doing just that, could mitigate the possibility of such a decentralized environment. • Using guidelines to create a greater agreement on consistent terms and language could enhance awareness of the technologies and positively impact the market. • Defining specifications to fix protection and stability and DLT/blockchain- related privacy and data processing issues could lead to creating trust in the technologies. • Standards can play a significant role in data security management which inspire end user inter- est in technology. The collection is a wide variety of topics that the DLT/blockchain group will discuss and investigate more. The literary analysis and interviews indicate that the role played by the standards involves a proactive mea- sure to the immediate and near future production of the standards. It is still too premature to consider the criteria relating to the DLT/blockchain technological aspects. While the majority of interviewees acknowl- edged that standards play a role in defining and improving DLT/blockchain over the longer run, some also believed that extra time could be taken to allow a more knowledgeable approach to determine which facets and uses of the technology should then be given priority. In Figure 1.2, our goals are outlined and the rela- tive timelines for the future creation of criteria in respect to all these areas are roughly shown. Again, our research shows that while there is agreement on the general value of blockchain’s growth support require- ments, opinions vary in regards to future standardization areas and schedules for the creation and application of standards. Our research shows that blockchain’s prospects are extensive, but it also faces many obstacles. The standard areas have the opportunity to play a role in promoting technologies, such as to allow the growth and acceptance of DLT/blockchain and for its market room to be developed—but the timing for implementation and adoption of standards is important, as is usually the case for new technologies. Early intervention may risk ensuring stakeholders engaging in policies that may not be more efficient, and innovation in the longer term is inevitably stifled. The traditional technology strategy risks missed oppor- tunities to maximize technology gains. Although this is a field of accelerated transition and uncertainty, steps should be taken to recognize the current situation and the drivers and sectors involved. 1.4.1 Main DLT/Blockchain Challenges and Opportunities Inadequate transparency and contradictory terminological interpretation, together with the presumed nascent technologies of DLT/blockchain, raise obstacles for broader acceptance of DLT/blockchain. The possible costs associated with initial execution, the perceived risks related to early DLT/blockchain deployment, and the likelihood of disruption to current practices could pose big problems for organiza- tions [5]. The lack of clarification regarding technical enhancements relative to current solutions will
- 32. 1 • Fundamentals of Blockchain and DLT 11 hamper the company’s adoption. The wider economic influence of the system in the mid-to long term is not readily established in the lack of broad DLT/blockchain acceptance. Owing to the emerging existence of technology, the regulation of DLT/blockchain networks is lacking in transparency. The existing regulatory structures that will be applicable to DLT/blockchain and the improvements that may be expected for broader DLT/blockchain acceptance across industries remain unclear. The exis- tence of several non- interoperable implementations of DLT/blockchain may contribute to a fractured envi- ronment, which could limit broad acceptance. There are major challenges to possible security vulnerabilities and privacy issues, particularly if DLT/blockchain technologies are being entrusted to consumers. Protection of data privacy and maintain- ing robust encryption protocols are viewed as critical obstacles for broader DLT/blockchain adoption. Blockchain systems’ distributed design and a need for additional processing capacity could contribute to high energy use and related costs. The constitutional compliance of DLT/blockchain technology, mainly related to the notion of clarification with reference to the meaning and execution of intelligent contracts through DLT/blockchain, remains a key obstacle. 1.4.2 Opportunities and Possibilities DLT/blockchain technologies have the ability to offer substantial performance and cost reductions for com- panies and end consumers by automating procedures and minimizing the need for more third- party inter- mediation [5]. The implementation of DLT/blockchain technology could theoretically allow new sources of revenue for companies. The development of the DLT/blockchain ecosystem could contribute to the emer- gence of new economic and business models; for example, new modes of cooperation and cryptocurrencies. FIGURE 1.2 Specifications of areas in DLT/blockchain and potential timeline predictor.
- 33. 12 Recent Trends in Blockchain DLT/decentralized blockchain’s existence and the absence of a central source of the problem could still encourage more resilient and stable transaction structures. DLT/blockchain is capable of motivat- ing users by managing their own knowledge and is able to boost the customer trust in the execution of transactions. DLT/blockchain transfers are permanent, with many advantages, including the transparent audit trail and the decrease in susceptibility to fraud. DLT/blockchain could allow cost- effective and effi- cient digital identity management by using a public key encryption scheme, depending on the application situation. DLT/blockchain technologies can also be used to enforce the framework underlying intelligent contracts and to use intelligent audit tools across multiple industries. 1.5 DISTRIBUTED SOLUTIONS FOR CONSENSUS AND FAILURE TOLERANCE, INCLUDING DOMAIN CONSENSUS 1.5.1 Consensus Mechanism The distributed existence of DL demands that network members (“nodes”) enter an understanding on the authenticity of new information entries in compliance with a set of guidelines. This is accomplished by a consensus process that may differ based on the design, intent, and underlying asset of the DL’s algorithm. In a DL, all of the nodes will usually recommend a new payment to the ledger, but implementations do propose specific functions for entities, whereby just some nodes can recommend an inclusion of a transac- tion. To assess whether or not a given transaction is genuine, a consensus process must be applied using a particular cryptographical framework for authentication specified for such a DL. The consensus process is often essential when communicating with disputes between several concurrent entries—when separate transactions on the same asset are suggested by various nodes, for instance. This system guarantees that transactions are properly sequenced and avoids takeover by bad actors. The consensus and sequence mechanism guard against the previously mentioned issue of double spending. The blockchain technology uses “working proof” to create trust on a shared global network, which was first created as a spamming measure. A “proof of work” protocol is mandatory in trying to generate a new transaction to the blockchain, which requires the inclusion of a new collection of data in the chain directory. This is a challenging, but easy to check, estimation problem. The timestamp is produced by the repeated use of one- way crypto- graphic hashes until a sequence of numbers is produced which satisfies a predefined but arbitrary require- ment: specifically, that same number of digits in the Bitcoin network. Resolving this “proof of work” problem is an incredibly challenging task, as there are no alterna- tives and only a small possibility of achieving the requisite proof of work—and without a large volume of expensive computational resources is required of any device in the network. The Bitcoin mechanism is optimized to generate correct evidence each ten minutes and also to ensure that the application with the higher complexity rating is recognized as valid if both are produced in exactly the same period. Any miner who generates credible data on the Bitcoin network is awarded Bitcoins as a financial reward for upholding system security. The large scale of an open, non- permitted device is therefore vital to its protection. Network integrity directly requires a lot of device nodes which are encouraged to correctly verify any updates to the ledger and to achieve a consensus throughout the network by providing data accuracy. The proof of working costs network members greatly to sustain the DL, which would be appropriate only for networks of dis- trusted members. According to an estimate, the required electricity would surpass the current global elec- tricity demand if Bitcoin community had to expand to the current rate of use of current payment networks such as Visa and MasterCard. However, for Bitcoin blockchain, this issue is most pronounced.
- 34. 1 • Fundamentals of Blockchain and DLT 13 The DLT method used among ether, a digital currency newly launched from Ethereum, demands substantially less computational power. Permissioned blockchains usually don’t need complicated “work evidence,” since network members are preselected and trusted, as a consensus framework for verifying transactions. Other consensus processes exist, such as a proof of engagement that honors seniors through computer power and includes proof of payment of an estate. 1.5.2 Distributed Ledger The distributed functionality of DLT enables self- interested P2P network users to independently record validated data without depending on even a trustworthy central group in a shared directory. The replace- ment of a key group will speed up the preservation of the headline and further reconciliation expense and inefficiency. It can also improve security, since a single attack point in the whole network is no longer possible. Authorized programs can more easily integrate into current legal and regulatory processes and arrangements. However, DLs who are allowed to some extent will take advantage of DLT’s most signifi- cant developments, including the absence of a central party. 1.5.3 Centralized Ledger As shown in Figure 1.3, both parties merge their territorial databases with a nationally managed and regulated electronic ledger from a confident central group [4]. FIGURE 1.3 Centralized ledger.
- 35. 14 Recent Trends in Blockchain 1.5.4 Distributed Ledger (Permissionless) A complete and latest copy is available in any node in a P2P network. The network member communi- cates to all nodes any suggested local inclusion to its directory. Collectively, nodes verify the shift using a consensus algorithm [4]. Once certification is approved, all the respective ledgers will be added to ensure data integrity across the network. Figure 1.4 illustrates a permissionless distributed ledger. 1.5.5 Distributed Ledger (Permissioned) Nodes require the authorization of a central authority from a licensed framework to reach the network and alter the repository, as shown in Figure 1.5. Identity checking can provide access controls. In the sense of distributed networks, the consensus on fault tolerance has been thoroughly discussed. Through control of information dissemination in the network of the components distributed, a consensus fault- tolerant algorithm ensures that all components rely on shared data values and carry out a certain way to proceed, despite the existence of flawed components and unstable communication links, in reaction to a request [4]. This promise of consensus is important for a distributed system to operate normally. As an output system, a blockchain system uses a consensus technique to ensure that all network nodes agree on a single transac- tion history chain, as malfunctioning and malicious nodes adversely affect them. 1.5.6 Fault- Tolerant Consensus in a Distributed System While physically isolated, all elements of a distributed system aim to accomplish a shared purpose. In the simplest terms, consensus implies that these elements come to an agreement on certain validity of data. FIGURE 1.4 Distributed ledger (permissionless).
- 36. 1 • Fundamentals of Blockchain and DLT 15 The machine elements and their contact networks in an individual system are vulnerable to unexpected failures and detrimental consequences. This section addresses the consensus topic of message- passing systems [6] where two forms of component failures exist: crash and Byzantine failure. Those part failures in distributed computation can be accepted in two practice consensus algorithms. 1.5.7 The System Model In a distributed system, there are three main consensus factors: network synchrony, component failures, and the consensus algorithm [7]. 1.5.7.1 Network Synchrony Network synchrony in the distributed system is a fundamental principle. It determines how well the device elements are organized. Before any protocol construction or performance measurement, we need to have the network synchronization state. Three network synchronization requirements occur in particular: • Synchronous: Part operations are rounded. The central clock synchronization service also makes it possible. Both components carry out the same form of operations in each round. • Asynchronous: Portion processes are uncoordinated. This is frequently the product of no clock sync service or part clocks drifting. Each part shall not be bound by any laws of teamwork and shall execute an opportunity of its own routine. The distribution of messages or a higher limit on message transmission between components is not assured. FIGURE 1.5 Distributed ledger (permissioned).
- 37. 16 Recent Trends in Blockchain • Partly synchronous: component activities are not synchronized, but message propagation time is at the upper limit. In other words, the transmission of messages is guaranteed, which might not be in due course. For most functional distributed networks, that’s the networking state. Thus, presume that the device is indeed simultaneous or partly synchronous in most application areas. The voting mechanism in a national assembly, for instance, is called synchronous, whereas the Bitcoin community is partly synchronous. 1.5.7.2 Faulty Component A part is defective if it has a flaw that prevents it from running normally. • Crash failures: The device suddenly fails to work and doesnot restart. Consider two types of dysfunctional activities that a component might have. The other components will understand the accident and timely change their local choices. The part behaves unilaterally without abso- lute requirements. • Byzantine failures: It may send conflicting signals or actually remain passive to the other ele- ments. It will appear natural external sources and are not suspected by anyone in the network’s history. In the case of Byzantine malfunction, the device mechanism is always misused or the malicious actor is exploited. If several Byzantine components are present in the system, it will disrupt the network even more. Byzantine fault is assumed to be the worst case for flaws of modules, and the crash failure with Byzantine faults is also considered. 1.5.7.3 Consensus Protocol A consensus protocol specifies a collection of rules for passing and processing messages to achieve agree- ment on a shared topic across all interconnected resources [7]. A message- passing law governs how far a component communicates and switches messages, although a rule specifies how a component in the face of those messages changes its internal status. In general, when all no- fault components come to an understanding on the same issue, they thus conclude that the consensus is achieved. The intensity of a consensus mechanism from the security point of view will generally be calculated by the amount of dam- aged components tolerated. Specifically, the crash- fault tolerance to a consensus protocol can withstand at minimum of one crash failure (CFT). Often, if only one Byzantine error could be accepted by a consensus protocol, it is termed as accommodating Byzantine failure (BFT). The BFT consensus was obviously a CFT due to the extreme inclusive interaction between Byzantine failures and crash failures. In addition, compromise is not feasible for even one crash failure in an asynchronous framework [7][8]. The majority of this chapter focuses on Byzantine error tolerance in synchronous or partly synchronous networks of consensus protocols. 1.6 TRADEOFFS FOR BLOCKCHAIN SCALABILITY One of the most common reasons for Bitcoin’s slow adoption is its scalability. The fact is that, in compari- son to traditional central communication and technologies like Visa or AWS, cryptocurrency networks are mostly lent out. For instance, in the region of 15 operations per second, Ethereum can execute transac- tions—and Bitcoin is much slower. On the other hand, blockchain networks offer unique features that can- not be accomplished easily with centralized techniques, such as digital format scarcity and unstopping. If developers continue to experience and iterate new implementations of these assets within decentral- ized apps, common platforms tackle scalability and transaction limitations. In this sense, the blockchain
- 38. 1 • Fundamentals of Blockchain and DLT 17 scalability of software engineers and end customers is generally shown as a significant barrier of addi- tional blockchain deployment. The group has put a lot of work into designing scalability approaches at Layer 2 and migrating current frameworks to quicker consensus structures in response to these scalability problems in blockchain. Developers who research the decentralized model to construct on should definitely inspect their desires and the platform architecture priorities they chose into account. The degrees of decentralization, as well as programmability you need, are two critical compromises to ensure the optimal interoperability for the software. Not every application has to be as decentralized as possible or programmable. 1.6.1 The Top Two Tradeoffs to Blockchain Scalability: Level of Decentralization For those not familiar with the popular blockchain trilemma, it says that only two of these three param- eters can be designed when designing a decentralized protocol: scalability, security and decentralization, as shown in Figure 1.6. The assumption is that it is impossible to achieve all three of them at the same time. In my experience, the most important cases of usage of blockchains apply to storage and transfer of value, such that any major security sacrifice seems to be non- starter. The major aspect behind the circularity is that it ties decentralization to scalability. Scalability can be quickly accomplished if decentralization is sacrificed. In a centralized system, for example, typical AWS implementations achieve a high degree of scalability, but the main characteristics that render blockchains fascinating—that is, digital format scarcities coupled with disability—vanish into this implementation model. Any ventures benefit from this partnership. Please take the EOS example. There are 21 block- generating nodes within the EOS framework. This is much less than Bitcoin and Ethereum. EOS produces a much higher transaction performance than Ethereum and or Bitcoin by being more centralized. The 21 nodes are not completely centralized, and they are more centralized than most of the other centralized exchanges. EOS’s purpose is to be distributed to preserve intact another very interesting blockchain arti- fact, but centralized to achieve considerably greater efficiency than efficient blockchain networks. What degree of decentralization would your use case need to be asked for as a DApp designer? How are you concerned about your submission being censored? Most elevated applications will need enhanced decen- tralization; it may not be necessary for others. FIGURE 1.6 The blockchain trilemma.
- 39. 18 Recent Trends in Blockchain 1.6.2 Level of Programmability At least as essential as decentralization is the extent of programmability provided by a Bitcoin blockchain. The main question is: what are the applications that will allow you to accomplish your goals, and what rationale in the chain? I will look at a variety of apps that need to be coded at one side of the spectrum with distribute products and services apps, but at the other side of the spectrum, starting from the money and wealth movement scenario. The breadth of the programming generated by a blockchain network is at least as critical as decentralization. The key question is: which applications will help you achieve your objectives and what justification in the chain? I’m looking at a number of applications which have to be programmed from one side to another with apps that deliver goods and services, but from the income and capital transfer situation to any of the side of the continuum. Scalability of the network also declines by applying smart contract technology to Turing. With smart Turings, you just want a gas definition to calculate the efficiency of the deal, which adds costs and running costs to the application and results in deterministic behavior. You would allow intelligent contracts to save arbitrary states or information on the line, which indicates that the blockchain consensus nodes have more charges and storage requirements. For all platform contracts, most intelligent contract platforms feature a single, single- pack virtual machine, which may potentially be used as a scaling constraint. All of these issues decrease Turing- wide smart contract platforms’ scalability and capacity, Scalability of Opposite technology (i.e., centralized), Algorand and Ethereum Scalability Spectrum. 1.6.3 Algorand Prioritized Performance over Turing‑Complete Programmability Algorand is a highly efficient blockchain of the next generation focused on the profitability and invest- ment side of the architecture continuum and extremely decentralized. It achieves high efficiency and transaction performance by concentrating on and performing well on currency, assets, and transfer of assets. Algorand’s latest language of scripting, TEAL, is purposely incomplete in order to discourage gas costs, random storage, and endless loops, together with Turing’s full smart contract framework. There are unique choices that permit the economical, asset, and transition scenarios to achieve high efficiency. That is why technologies that help certain applications that need high throughput, such as Tether and Securitize, could be used in Algorand. 1.6.4 Ethereum Prioritized Turing-Complete Programmability over Performance Ethereum, in comparison, is the most popular total smart contracting network. At the cost of throughput and scalability, Ethereum positions programmability first. Ethereum’s scalability difficulties are induced by arbitrarily complicated logical output and the arbitrarily broad storage of clever contracts. Storage and logic are calculated by gas charges, and the number of intelligent contracts has risen over time. The underlying blockchain at the Ethereum total node requires over 100 GB of storage and rises (skipping archive nodes for now). Ethereum also has a small portion of Algorand’s scalability from the viewpoint of payment per second, as well as storage of nodes. Fortunately, whatever you get is potential for the Ethereum virtual environment to communicate ran- dom, intellectual contract reasoning. And since all programs work in a same virtual environment, one can able to make much improvement across numerous contracts in DeFi. As DApp programmers, it is worth considering what elements of an application must be de- centralized and if smart contract terms are actu- ally necessary to construct your application. A complete smart contract platform provides all the online logic expressions, although frequently at the cost of performance and scalability.
- 40. 1 • Fundamentals of Blockchain and DLT 19 1.6.5 Choosing the Right Platform for Your Application Scalability is crucial in deciding where to construct the underlying platform. Those scalability problems lead eventually to high transaction charges, even though the program itself does not need to raise the run- ning cost as a product that may also render certain use cases commercially impractical. When choosing a platform for your use case, you must carefully account for your depictions and programming level. In an implementation case that only involves an ERC- 20 agreement with Ethereum, and does not need interoperability with the other intelligent Ethereum contracts, a glance at frameworks that are designed for this situation could be meaningful, such as Algorand. At Ethereum, you could spend a lot more without understanding the advantage of increased programming. 1.6.6 Tradeoffs between Distributed Ledger Technology Characteristics DLT offers a highly open, supplemental database managed in an unregulated environment by physically distributable storage and processing machines (nodes). DLT pledges to make partnerships between indi- viduals and/or organizations more productive and open based on qualities inherent in this area, including tampering and censor resistance and democratization of information. Also as result, a growing number of DLT applications in different fields, including the supply chain, finance, and healthcare, are being developed. DLT is used, for instance, to prevent tampering with the data storage system in the supply chain dis- tribution system that is distributed through several nodes of the collaborative entities in the supply chain. Implementations utilize distributed headings as a standard architecture which, for example, makes data storage simple and efficient, data- driven processing (e.g. for digital asset transfers), and business processes automation feasible. Every application in DLT is based on a certain DLT framework that is specified as a structured DLT definition specification. Despite DLT’s encouraging advantages, previous DLT implemen- tations demonstrate crucial dependence on DLT features that lead to tradeoffs, i.e. enhancing one DLT feature correlating with some other DLT feature. For example, a balance occurs between availability and accuracy in distributed ledgers. By raising the number of repeats of the ledger, a dealer can achieve a high availability. As a result, the distributed ledger network of nodes tends to increase; however, that tends to diminish accuracy due to higher message spread delays. During DLT, no one- size- fits- all DLT architecture for appli- cations will be available, provided the prevalent tradeoffs between DLT features. Instead, DLT designs will satisfy basic specifications but poorly meet certain specifications frequently associated with incon- veniences emerging from the tradeoffs inherent in DLT. It is also very difficult to choose acceptable DLT principles for implementation and quantify possible disadvantages for the respective DLT application. It is also more important to make deliberate and rational decisions for a DLT system to establish successful DLT implementations, because technological variations between DLT designs inhibit the transfer of data among distributed ledger technology. The viability of software in this sense refers to the potential to run over a long time, with future modifications or enhancements and consequent upgrades being considered. A thorough study of correlations among DLT specifications and the subsequent tradeoffs is necessary in order to understand the exchange between DLT features and their effect on DLT applications’ viability. While DLT research has evolved during the last decade, similar DLT research characteristically focuses mainly on considering the significance of characteristics. In comparison, study of DLT features and their dependency is widely dispersed throughout disciplines and requires reprocessing so as to provide an understanding of the dependencies within DLT properties and the resulting compromises that restrict the utility of DLT designs. DLT characteristics are only sparse in scale. An incentive structure is needed in shared DLT designs, since validating entities should be encouraged to share computing resources. The compensation framework
- 41. 20 Recent Trends in Blockchain lays out a recompense structure for nodes participating in blocks and transactions development and/or confirmation, consensus discovery, and maintenance. The presence of entities in a distributed network is called mining. Validation nodes are therefore often pointed to as mining. For example, if they would be the first to build a legitimate new block in a Bitcoin network, validating nodes earn a sum of coins. These reward structures are specifically applicable to distributed ledgers, and thus enable a high level of decen- tralization with nodes of unknown network controllers. Assuming that all nodes function on equal terms, the distributed level of decentralization determines the number of individual validation node controllers who have the capacity to handle more than the average nodes divided by total number of DLT nodes. The degree of decentralization for a distributed ledger is then defined by two dimensions, namely the number of individual node validates and the numbers of authenticating nodes. If the nodes that have been authenticated increase and the remaining nodes are managed by the same administrator, the amount of decentralization reduces, provided that this controller has a disproportionate effect on the agreement and credibility of the distributed ledger. On the other hand, when independently managed nodes connect nodes that are at maximum average computational services only of the distrib- uted ledger, the level of decentralization is improved. The extent of decentralization is calculated by the number of independent node controls within a distributed ledger (e.g. an entity or individual). Figure 1.7 illustrates that the total degree of decentralization for the distributed ledger increases the number of autonomous controllers running validating nodes. 1.7 BLOCKCHAIN CONSENSUS ALGORITHM A method whereby all of the blockchain system members mutually agree to the required state of the pub- lished ledger is the easiest solution to a consensus mechanism on blockchain. The Bitcoin network will FIGURE 1.7 Degree of decentralization for distributed ledger.
- 42. 1 • Fundamentals of Blockchain and DLT 21 achieve consistency and morality between the different nodes while preserving environmental security through a consensus process. This is why it is one of the key components of every program development guide and implementation in the field of blockchain’s digital currency. 1.7.1 Strategies of Blockchain Mechanism Figure 1.8 displays the strategies of blockchain mechanism. 1.7.1.1 Unified Agreement Unified agreement is one of the principal aims of consensus processes. In contrast to centralized systems, in which confidence in power is needed, people can even work autonomously without creating confi- dence in each other. The protocols incorporated inside the blockchain distributed network ensure that the data involved with the procedure is truthful and accurate. 1.7.1.2 Align Economic Incentives In building an autonomous and confidence- building structure, it is important to balance the priorities of network members. In this case, the underlying blockchain framework would honor good actions and discipline the poor actors. It also means that economic benefits are regulated. 1.7.1.3 Equitable and Fair Mechanisms of consensus encourage us to interact and use the same fundamentals in the network. This justifies the blockchain system’s free software and decentralization assets. FIGURE 1.8 Strategies of blockchain mechanism.
- 43. 22 Recent Trends in Blockchain 1.7.1.4 Prevent Repetition of Expenses Consensus methods are based on particular algorithms to ensure that the publicly accessible ledger veri- fies and validates only such transactions. This addresses the typical double- dollar problem, that is, double the digital money issue. 1.7.1.5 Tolerant Fault The consensus approach is often defined by ensuring that perhaps the blockchain is error resistant, stable, and secure. That is, except in accidents and challenges, the managed mechanism will operate forever. There is already wealth of consensus mechanisms in the community of blockchain, and even more are entering the marketplace. This requires that any production company and passionate developer in blockchain know the factors that characterize a successful consensus mechanism, as well as the future impact of a bad one. Let’s start with what is a positive thing about blockchain. 1.7.2 Properties of a Strong System for Consensus 1. Safe: All nodes will generate results which are true under the rules of the protocol in a success- ful consensus process. 2. Inclusive: A strong framework for consensus means that every node of the network contributes throughout the voting process. 3. Participatory: The strong consensus models are used as a mechanism for consensus whereby all nodes communicate and contribute to the updating of the blockchain database. 4. Egalitarian: Another feature of a strong mechanism is that each vote obtained from the node gives equal importance and weight. 1.7.3 Consensus Blockchain Algorithms Popular in the Enterprise Figure 1.9 illustrates the consensus blockchain algorithms popular in the enterprise. 1.7.3.1 Proof of Work (PoW) Proof of work itself is blockchain’s oldest consensus tool. It is also called mining, whereby miners are called the participating nodes [9]. The miners must solve complicated mathematical puzzles using extensive computational power in this control mechanism. The new tools used include graphics processing unit (GPU) mining operations, central processing unit (CPU) mining operations, application- specific integrated circuit (ASIC) mining operations and field- programmable gate array (FPGA) mining operations. Being the one who solves the problem the first time will be awarded a block. 1.7.3.2 Proof of Stake (PoS) Proof of stakes is the simple alternative to the PoW consensus protocol which respects the environment [9]. The block creators are not really miners in this blockchain system, but act as validators. They get a chance to build a block that saves resources and reduces time overall. But they have to spend a certain large sum of money or acquire a majority stake to become another validator. 1.7.3.2.1 Delegated Proof of Stake (DPoS) The stakeholders stake each coin and voting for just a number of delegates for delegates to the assigned proof of stake, in such a way that the more investment they spend, the more weight. For instance, if
- 44. 1 • Fundamentals of Blockchain and DLT 23 consumer A invests a delegate ten coins and user B spends five coins, A’s votes will get a greater weight than B’s. Delegates are often compensated by purchase costs or certain quantities of coins. DPoS is among the fastest underlying blockchain models and is commonly accepted as a democracy, because of another direct risk voting mechanism [9]. 1.7.3.2.2 Leased Proof of Stake (LPoS) LPoS is an updated version of the Waves network consensus framework for PoS. Contrary to the standard PoS method in which each node has a certain cryptocurrency right to the next blockchain, this consensus algorithm helps users to rent those balances to complete nodes. But if one leases the greater sum to the entire network, it is more likely that the next block will be created. In addition, the leaser is paid a processing cost percentage, which is received by the entire node. This PoS version is an effective and secure choice for public cryptocurrencies growth. 1.7.3.3 Byzantine Fault Tolerance (BFT) The Byzantine failure resistance is used, as its name implies, to dealing with Byzantine faults: a situation in which players in the system have to compromise on an appropriate strategy to prevent a disastrous sys- temic failure; however, some of them would be questionable. The BFT consensus paradigm is primarily PBFT and DBFT in the cryptocurrency arena. 1.7.3.3.1 Practical Byzantine Fault Tolerance (PBFT) PBFT is a compact algorithm which addresses the problems of the Byzantine general failure by encourag- ing users to validate their messages by executing a computer to determine the authenticity of a message. FIGURE 1.9 Consensus blockchain algorithms popular in the enterprise.
- 45. 24 Recent Trends in Blockchain The group then tells other nodes that its vote is eventually made. The final decision is based on the deci- sions made by the other nodes. 1.7.3.3.2 Delegated Byzantine Fault Tolerance (DBFT) The Byzantine Delegate Fault Tolerance System was introduced by NEO and is identical to DPoS. Here, too, the owners of the NEO token are given the chance to vote in favor. The speaker generates a new block for a confirmation from the transaction. It also sends a resolution to the elected delegates responsible for supervising and monitoring all transactions on the network. This delegate should share and evaluate their ideas to validate the correctness of the speaker and their integrity. 1.7.3.4 Direct Acyclic Graph (DAG) Another simple but primary consensus model blockchain that any organization operating with blockchain in the mobile app creation needs to know is DAG. Each node itself practices to be the “miners” in this form of underlying blockchain protocol. Now the corresponding charge is reduced to zero if miners were eliminated and payments checked by consumers themselves. Transactions between two nearest nodes are simpler to verify, which makes the entire operation easier, quicker, and safer. 1.7.3.5 Proof of Capacity (PoC) In the mechanism of proof of capability (PoC), solutions are stored in electronic storage facilities such as hard drives for any complicated mathematical puzzle. Users may use certain hard drives to generate blocks in order to make blocks more likely to be produced by others that are faster to determine the solu- tions. Plotting is the process that follows. Burstcoin and SpaceMint are indeed the two cryptocurrency that are based on PoC’s consensus protocol. 1.7.3.6 Proof of Burn (PoB) Considered as an alternative to PoS and PoW approaches in terms of power consumption, the consensus model PoB is based on the idea of allowing the digital cryptocurrency coins to be “burned” or “ruined,” which often enables miners to write blocks proportionately to their currency. The more coins they burn, the greater the chances that they will be able to successfully mine the next block. However, to burn coin, they really must give this to the account where the block cannot be checked. Throughout the context of distributed agreement, this is commonly used. The Slim coin is the best example of this system of consensus. 1.7.3.7 Proof of Identity (PoI) The PoI concept is the same as that of the accepted identification. It is indeed a cryptographic verification for a private user key connected to each transaction. Each user defined can build and maintain a database that can be submitted in the network to others. This blockchain consensus model guarantees that the data generated are genuine and integral. Therefore, the launch of clever cities is a smart choice. 1.7.3.8 Proof of Activity (PoA) PoA is essentially a hybrid method developed by converging PoW and PoS models of blockchain consen- sus. In PoA mechanisms, miners compete early on with special hardware and electro- energy to overcome a cryptographic puzzle, as in PoW. Even then, the chains they meet only include the name and the com- pensation transaction of the block winner. The process flips to PoS in this regard. The validators search and validate the block accuracy. The validator switches on a complete block unless the block has been
- 46. 1 • Fundamentals of Blockchain and DLT 25 tested several times. That indicates that open transfers are operations that are integrated finally in the discovered containers block. 1.7.3.9 Proof of Elapsed Time (PoET) Intel implemented PoET with the purpose of solving cryptographic puzzles in the PoW mechanism, taking into account that a miner knows the block by the processor architecture, as well as the quantities of mining operations. The theory is that the chances for a greater fraction of the participants should be spread and raised equally. Thus, any node involved will be asked to attend the following mining process for certain duration. It is asked to give a block to the participant with the shortest stop time. Simultaneously, each node often has its own waiting period to reach sleep mode. 1.7.3.10 Proof of Importance (PoI) PoI is a deviation in the PoS protocol adopted by NEM, which takes account of the position of owners and evaluators by its operations. However, it does not rely entirely on the scale and potential of the shares of these parties; there are several other considerations such as prestige, balance, and number of transactions. PoI-based networks are costly to attack and reward users for contributing to protection of the network. This shared knowledge may help distinguish the complex consensus protocols from blockchain. 1.7.4 The DLT Consensus Ecosystem A DLT/blockchain is a linear, sequential, and chained database structure, distributed across a network of peer-to-peer networks that store and group transactions into new chains. Networking partners (peers) enter distributed agreements on the validity and ordering of the contract. Blocks are a transaction data structure and a header with a relation through a hash to the original data. Nowadays, blockchain networks belong more commonly to a broad family called distributed ledger networks. Many DLTs are imple- mented, but some of them have the very same consensus structure, which enables the temperature toler- ance of certain solutions. In this post, I want to provide a high degree, but full, outline of the numerous consensus mechanisms within DLTs without the intention of providing a ranking. 1.7.5 Byzantine Fault Tolerance It is really the stability of a computer system with a tolerance to faults, particularly distributed computer systems, in which components fail and knowledge about the failed component is imperfect. The phrase applies to the issue of the Byzantine commanders, in which players must agree to a coordinated plan to prevent the collapse of the catastrophe scheme. This definition is central to DLT/blockchain, as a distrib- uted environment or untrustworthy node will cause disturbance or total system collapse if the fundamen- tal system architecture integrates its decisions/proposals for new transactions and blocks. Therefore, to maintain stability and security in the transaction stored, it is necessary to define and separate these nodes, but this process is usually accomplished through a consensus process. 1.7.6 Distributed Computing Consensus Consensus is a programming problem. It requires finding consensus between varieties of processes which are distributed. Consensus is introduced in the DLT in order to attain fault tolerance structures by includ- ing many nodes that are expected to agree on planned transactions or a particular outcome. This decision is deemed definitive until they make a shared decision, and cannot be overturned.
- 47. 26 Recent Trends in Blockchain 1.7.7 Consistency Availability Partition Tolerance (CAP) In theory, CAP theorem, often known as Brewer’s computer theorem, states that as more than 2 in 3 guar- antees cannot be given concurrently by a data store that is distributed. • Consistency (C): Each read gets the new writing or mistake. • Availability (A): Any submission receives an answer (no error), without a promise that it includes the latest written material. • Partition tolerance (P): The device is still running as the network among nodes deletes (or delays) an undefined number of messages. 1.7.8 Permissioned/Private DLTs Because the variety of interventions of consensus is gradually increasing, let’s start with the kind of con- sensus protocol that targets private/permitted projects in particular. Any user will access the network as both an end-user and a node in permission-free environments, and there are no relations of confidence between nodes, which significantly reduce the frequency of transaction confirmation. These environments typically produce different kinds of consensus algorithm vs. approved environments in which gatekeepers must allow nodes and/or users to access the network. 1.8 BLOCKCHAIN EXTENSIONS AND CONSTRAINTS In conventional systems, blockchain technology gives consumers certain benefits that are not available. Blockchain was the first completely distributed and autonomous framework to retain a trustworthy chief. This enables a system to maintain track of its past and to rest assured that a malicious attacker is not able to change that history for their own gain. Bitcoin was initially planned to replace existing payment mecha- nisms, but it cannot do so by itself. Blockchain technology has drawbacks, and blockchain extensions to reduce or remove them have been developed. 1.8.1 Constraints The layout of blockchains is very unique. Given the need for synchronization of the network and for vali- dating all transactions by the network, transactions cannot be added to a distributed directory on an ongo- ing basis. Transactions are now grouped into blocks that are applied at regular intervals to the distributed directory. This architecture reduces the blockchain solution’s speed and power. On the blockchain, there is a substantial limit to how many transfers are applied to the distributed chief. Usually, blockchains have a goal block rate, which their consensus algorithm enforces on a certain level. For example, Bitcoin has a 10-minute block rate, meaning there may be a long wait because of the three-block rule before a trans- action can be considered trustworthy. This is detrimental when compared to credit cards, where “slow” purchases take place in one minute. There is still a difficulty with optimum bandwidth for blockchains in order to secure many blockchains, in addition to fixed size; they also have a set limit block size for denial of service attacks. Blockchain can only handle multiple transactions over time with set block sizes generated at fixed times, and this capability is therefore much smaller than that offered by the credit card system.
- 48. 1 • Fundamentals of Blockchain and DLT 27 1.8.2 Extensions In order to overcome these issues, some distributed ledger systems have abandoned the data system block- chain. For example, the guided acyclic graph (DAG), which improves its system throughput and capability dramatically, is an underlying data structure. Some blockchains allow minor protocol tweaks for boosting the transfer speed and reliability, and several blockchains have started to leverage blockchain extensions to further overcome these challenges while preserving the initial blockchain architecture. 1.8.3 Sidechains Sidechains are mainly intended to expand network capability by discharging transactions into an inde- pendent blockchain. There are many different sidechain implementations, but atypical one is to “peg” the sidechain to something like a blockchain parent. With stuck blocks, a user may submit tokens to an “output address” on a blockchain and the same number of tokens to the sidechain. Pegs are two- way, meaning that the user can revert at will to the initial blockchain. The expansion of the ability for the initial blockchain is one advantage of sidechains. The system’s overall capacity is improved as transactions conducted in the sidechain are not regis- tered in the main blockchain blocks. Sidechains may even be used to fix the parent blockchain’s unique weaknesses. For instance, sidechain could see an improvement in transaction speed faster than parent chain. Instead of that, sidechains will expand the system’s capacities, such as the Rootstock sidechain, which plans to add intelligent contracts to Bitcoin functions. The key safety feature of sidechains has been that the sidechain is an entirely different mechanism than main chain. This requires a diverse pool of miners, owners, etc., to secure consensus. Such a hack may otherwise control the consistency of its connection to the main chain, as well as the willingness of its users to turn back and forth. 1.8.4 Channels of State The state channel is yet another blockchain extension which has generated a lot of news. Perhaps the most popular state channel device is the Lightning Network, mostly on Bitcoin blockchain, but some state channel implementation operates under various names on other blockchains. State channels serve as just a second- level mechanism that is supported by a conventional implementation of blockchain. State network seems to be a direct link among blockchain users. They set up a channel and use a conventional block- chain transaction, which decides the balance of the channel. The payments are made only after a channel is formed by making mutually signed claims concerning the value balance in the channel. The channel could be shut down at any moment, or the most recent balances statement is used to make another blockchain transaction, which would put the right amount of cryptocurrency on each blockchain participant’s account. Processing time, interoperability, and anonymity are the key advan- tages of state networks. Transactions involve only the participants in the channel and can be done almost instantly, but it might not be possible to produce a payment if a channel gets too unbalanced. That’s where the state channels’ network could be very useful because transactions can be re- equaled through different paths or switched between unconnected parties. The primary safety concern of government networks would be that payments are facilitated but not registered on the blockchain. Global channel transfers are the recipient’s private enterprise, as well as the blockchain has to be assured in validity in all transactions. Point- to- point design of state channels, however, defends against double spending attacks, as it is specific to a certain platform and it cannot be utilized to access and carry out transactions on other channels.
- 49. 28 Recent Trends in Blockchain 1.8.5 The Universe of Distributed Ledger The purpose of this series was to implement blockchain technology with an emphasis on blockchain protection. Many distributed ledger implementations have various data structures and security features. Blockchain may also be expanded by external devices communicating by application programming inter- faces (APIs) or intelligent agreements. It is important to take account of all available infrastructure and related security concerns when planning a distributed ledger approach. 1.9 EMERGING BLOCKCHAIN APPLICATIONS: BEST- FIT APPLICATION SCENARIOS AND MODELS The best in terms of blockchain technology implementations for blockchain technology were planned to explore reliability, immutability, and transparency. A blockchain system of transactions reported secretly and which cannot be changed or abused, does not have a superior participant. Blockchain networks ought in general to fix those sore points only with the specific subject scenarios by converting an untrustworthy ecosystem into a creditworthy blockchain environment. A blockchain framework can also be built as a distributed ledger as an infrastructural ecosystem of blocks that are distributed not only in all its modern architecture, but also in other its data and operating rights. There are a variety of decentral- ized peer entities in the ledger of the ecosystem. The ecosystem members are peer bodies with equal rights. The data from ecosystem documents are private and independent, meaning that the members can be used and received. Tens of thousands of blockchain technology- based software programs have been established for stor- age, finance, smart contracts, data API, to provide service- level or data- level or business- level infrastructure, notarization, asset dealing, bank clearing, e- commerce, social communication, and the Internet of Things. 1.9.1 Cryptomonetary and Payment Blockchains It is Bitcoin’s cryptocurrency that provides acceptance and stability for blockchain technology, as block- chains offer Bitcoin’s safe, accessible, and decentralized transaction platform [10]. For this time, the various ICO (initial coin offering) systems prevailed worldwide. The majority of the blockchain concepts are evolving from the blockchain, and even if few of them succeed and Bitcoin is illegally in some countries, cryptocurrency and payment firms continue to appear among the most com- mon applications. Figure 1.10 shows the five blockchain enterprise concerns. FIGURE 1.10 Five blockchain enterprise concerns.
- 50. 1 • Fundamentals of Blockchain and DLT 29 1.9.2 Product Monitoring Blockchains The best method of religious behavior monitoring is to use blockchain technologies. In order to minimize prescription drug fraud, a blockchain- based technology was proposed in the health sector to incorporate medical knowledge and the dental industry. The blockchain helps address issues that are often kept with- out complete patient control by private data collectors. Blockchains can monitor transactional information effectively and confidentially at each level of the process [10][11]. Several Internet of things (IoT) imple- mentations have been placed on the market for commercial blockchains. 1.9.3 Supply Chain Blockchains The supply chain is the most suitable place for blockchains, since several businesses situated in the supply chain need another likely to default system to cooperate [10][12]. The ecosystem blockchain can be built to ensure that the supply chain participants receive safe, creditworthy, and full information to prevent decep- tion. For medium- sized and small enterprises, the reliable statistics are beneficial in delivering financial services, a challenging topic in conventional sectors. The finance agency will include creditworthy pur- chasing orders with funds for small vendors and service providers. As Figure 1.11 demonstrates, the information can be found on several blockchain financing projects for the supply chain [10][13]. In addition, with intelligent contracts, blockchains are able to make trades and collaborative among a supplier’s chain more stable and trustworthy. Intelligent agreements could be used to write and automatically conduct the whole transaction in transparent, safe, and cost- effective manner. For instance, a blockchain- based production credit mechanism for the purpose of controlling business- to- business cooperation between socialized manufacturing tools is proposed. 1.9.4 Blockchains for Business Applications Blockchains can apply in many business fields, but as previously described, most businesses have strug- gled. The key to a workable blockchain technology is a viable application scenario. The scenarios must be FIGURE 1.11 A blockchain ecosystem for car supply chain.
- 51. 30 Recent Trends in Blockchain drawn up in order to test the special characteristics of blockchain and to follow invented market principles in a developed world, rather than traditional ones. It is promising that many efforts and undertakings are being carried out all over the world. Onecan find loads of blockchain ventures in hundreds of technology fields on blockchain- related websites [10][13]. In the literature, there are still few blockchain attempts. For instance, a blockchain science information system is suggested to decrease the expense of access- ing scientific information and making it free and universal. A blockchain credit global higher education network is proposed for an internationally trusted, transparent university education payment and ranking framework that will provide learners and institutions of higher education and other future stakeholders with a globally united perspective [10][14]. A blockchain digital infrastructure has been built to create protected digital identities that help minimize identity fraud and promote public safety, allowing people to conduct high- value and everyday online transactions [10][15]. 1.9.5 Blockchains for Public Services There is no awareness of current credit structures due to different brokerage systems, in appropriation, centralized and stagnant appraisal models, and inadequate funding. The autonomous blockchain technol- ogy is known to be the next version of the credit system because it is exchange based and suits all parties participating in trading. It is planned to be an interconnected, traceable, customized, and dynamic block- chain ecosystem. In addition to reliable information in such a blockchain scheme, the aim is to allow the participants and the transactions credibility. It promotes credible market promises with lifecycle, multi- media monitoring, and credit brokerage dependence. 1.9.6 Underdeveloped Blockchain Techniques The groundbreaking decentralized project, Bitcoin cryptocurrency, has many detractors around, while much of the deviated cryptocurrency projects except Bitcoin have collapsed. A significant number of blockchain implementations have also been terminated, and in another implementation case, no block- chain project has been found to succeed. Yet, the magical innovations of blockchain are so enticing that people never give up. Many investigations have been carried out to develop their key strategies or to iden- tify viable and successful worldwide use scenarios. There are many common and exciting blockchain strategies, like blockchain creditworthiness, per- formance, safety/privacy, supervision, and integration online. The underdeveloped approaches are aimed at solving key issues that obstruct the adoption of blockchain systems and their growth. Blockchain net- works are creditable by the devoted credit processes, but blockchains are a creditworthy framework to store and run records. It is commercially driven to please all the participants in the exchange. The credit framework offers an open, fair, and credible platform to implement a decentralized creditworthiness environment, and all blockchain processes are processed by a series of intelligent contracts. The creditworthiness method is designed to enhance the integration, traceability, dynam- ics, and customization of the credit system. In order to test the viability and efficacy of a suggested independent credit system, numerous pilot programs have been created. As public consumer and cred- itworthiness query systems, four loan worthiness clouds have been created. Four forms of blockchain networks have been identified which include public blockchains, private blockchains, consortium blockchains, and hybrid blockchains. It is difficult to attain public blockchains while private block- chains don’t really display their technological ability. Most of the initiatives currently in development use a consortia or hybrid blockchains that take some central mechanisms and some decentralized mechanisms [10]. For the time being, Bitcoin’s characteristics remain paramount in blockchains. As seen in Figure 1.12, Libra, DCEP, and Bitcoin have their numerous views. There is a need for a range of developments in blockchain strategies, which are the online protection of blockchain, and the efficiency of PoW public
- 52. 1 • Fundamentals of Blockchain and DLT 31 blockchains has been considered quite low [10][16]. A variety of basic technologies for critical blockchain problems are given as follows: 1. Distributions of computers with central public blockchains such as the theorem limit, ACID, and Paxos/Raft. 2 Stable multiparty computing advanced techniques for decentralized networks, including a con- sensus system, Byzantine concerns, and algorithms. 3. Blockchain data mechanism has been developed to fulfill particular business functions through triggers for blockchain ventures, and a number of business levels for blockchain- related imple- mentations with the technology on the market technology. Advanced strategies include shared storage data attribute- based encryption and zero knowledge–based attributes. The blockchain architecture develops to investigate integrated blockchain networks with MSR, identify producer- based block data structure, replace blockchain PoW with corporate rewards, and establish block- chain network consensus structures and gates to co- locate blockchain and Internet facilities to promote efficient and complicated trading processes. Smart contracts for stable authentication and immersive mod- els should be built for unmanned sector. Further data management methods for combining data both in and out of the blockchain systems have been developed to overcome data shortage and inadequacy through auto- regulated blockchain data. 1.9.7 Blockchain Applying Strategies A viable and effective blockchain technology platform has many important issues to solve. A traditional blockchain ecosystem has four layers for the computing framework, including the blockchain, intelligent transactions, services, and interfaces. Critical problems for an ecosystem include developing a network model, the ecosystem architecture, member and approval practices, polling and nodes, benefits, intelligent contracts, and consumers. In addi- tion, algorithms for data collection and analysis are expected to solve crucial problems in blockchain applications. For most existing ventures, the blockchain network architecture remains an obstacle. The blockchain methods have evolved quickly, and there have been no well- accepted technological standards. Many Bitcoin ventures have not been accepted because of their inefficiency and performance costs. Some take blockchain as an infrastructure in distributed databases. More projects are built for hybrid networks or variety network models that are self- designed. A traditional blockchain environment consists of a decentralized blockchain, participants’ knowledge systems with blockchain programming interfaces, FIGURE 1.12 Features of Bitcoin, Libra, and DCEP.
- 53. 32 Recent Trends in Blockchain and a series of intelligent operating contracts. The blockchain offers, among other things, a transparent and self- regulating computer system that stores both data and transactions. Information systems for participants are designed for blockchain consumers and enable business data on blockchains to be accessed or uploaded. Depending on the Bitcoin blockchain and their position, participants must be identified. The nodes of the polling system and organizational priorities are established. The admission policy and the neces- sary details are referred to as network model and in case of blockchain consortia. To render blockchain to prevail and design an effective consensus mechanism, a fair and efficient reward mechanism should be created. Intelligent contracts are well known as the biggest blockchain technologies with the equality, transparency, approval and legitimacy of a blockchain ecosystem [12]. The blockchains can work without human interference through a series of intelligent contracts. The intelligent contracts are designed for the predetermined blockchain numerals. Callbacks from the blockchain scheme, other consensus mechanisms, or information structures of the parties may be invoked. In general, both the blockchain processes and implementation rules can be coded as smart contracts. There seem to be three types of cryptocurrency applications that communicate through programming interfaces with the Bitcoin community. In the stakeholders’ data systems, the first class of customers is developed; both management accounting systems and integrated systems are one of them. The second category of customers is intelligent contracts or the blockchain operating system, like the decentralized clients. The third form of consumer is the blockchain public utilities, which provide the participants and future participants with a public interface. Techniques for gathering data are important to help companies rooted on blockchain. It is assumed that the information are self- regulated and privately owned by the blockchain users, which poses some of the common problems in data processing. For lost data, characteristics, and redundant data, you need to build excellently compensation mechanisms. During the same period, it will be important to build weighting and cross- checking algorithms to leverage interconnected data on engagement from within and outside of Bitcoin and blockchain, which can be built as smart contracted knowledge collection systems. 1.9.8 Application Development Environments for Blockchain For particular purposes or scenarios like supply chain funding, financial clearance and company regula- tion, and tracking hundreds of cryptocurrency, development environments have also been established. Improved infrastructure, consensus processes and design patterns have been developed to achieve higher efficiency and better suit special scenarios in the generic production environment of blockchain applications. For example, with their specific consensus mechanisms, frameworks, and architecture, a permitted cryptocurrency called Beihangchain was already created. The blockchain uses the blockchain account and a blockchain exchange tool to cover a range of applications [10][17]. Hyperchain is indeed a block- chain application that offers blockchain network applications at a market level. The software provides organizations with the possibility for implementation, extension, and maintenance of their blockchain network on established data centers [10][18]. 1.10 BLOCKCHAIN USER AUTHENTICATION AND PERMISSION Utilizing public key encryption is to secure the permission of blockchain customer. Within its simplest form, blockchain technology- based properties are inherent; for example, the possession of an object is determined by hidden key data [19]. Dedicated wallet providers may be used to incorporate authenticating two- factor or other authentication protocols near the centralized electronic money networks.
- 54. 1 • Fundamentals of Blockchain and DLT 33 A Bitcoin- like scripting language renders custodial bags. Special hardware wallets can boost the security capabilities of the public- key cryptography (PKC) for signing transactions. • Overall, blockchain offers security decentralization, removing single failure points inherent in central e- money books. • Blockchain users can use hierarchies of deterministic wallets and a payment to contract proto- cols to preserve user anonymity that allows the development of publicly unlinkable on- demand audit addresses. Using range evidence, transaction amounts might be masked. And in the case of even more complicated payment systems, for example for intelligent contracts, secret shar- ing proofs and stable multipartisan formulas may be used to operate contracts without exposing data to any computer. • As a full- fledged event ordering infrastructure, blockchain could be used for distributed public key infrastructure that connects the identity of individuals and organizations to their public key. Public infrastructure may be structured in the form of blockchain or a particular network protocol. The legitimate value conversion and asset issuance will be allowed by PKI. 1.10.1 Blockchain Authentication Blockchain security applies to schemes that test users for the resources of blockchain and other virtual money underlying technologies. Blockchain uses PKC to encrypt wallets or locations where value and function are safely stored. The ledger uses PKC [19]. There are therefore interesting parallels between blockchain authentication and technology protecting. As the key feature, identity and access management (IAM) for both the blockchain would be a cryptocurrency wallet; its user experience (UX) and user inter- face (UI) designs are nevertheless very weak without even a modern verification component, including true password- free protection. It is worth mentioning that encryption developers and blockchain designers also have an enthusiasm with both markets, which allows blockchain programmers an essential aspect of security and innovation. 1.10.2 Blockchain- Based Authentication of Devices and People Using blockchain technology for providing secure identification and authentication of individuals and devices with publicly available encryption. The Internet of things is a system of devices, actuators, soft- ware and connective devices for the connection, interaction and exchange of data across gadgets, cars, and homes. Every element of our daily life is affected by IoT systems, from aircraft, vehicles, and drones to hospital devices, robotics, security cameras, and smartphones. Primechain- API blends blockchain technology power and public key encryption to allow: 1. Smartphones, other computers, and consumers are securely authenticated and marked. 2. Internet correspondence is secure and encrypted. 3. Login schemes without password. 4. Preventing counterfeit emails. 5. DNS tracks authentication and spoofing prevention. 6. Electronic signatures. Authentication centered on blockchain has certain special characteristics: 1. On the computer, keys to sign and decrypt will remain. 2. Authentication and encryption keys are stored on the blockchain. 3. Safe from sensitive cyberattacks like phishing, intermediary, play attacks.
- 55. Discovering Diverse Content Through Random Scribd Documents
- 56. PICNIC LUNCHEON COOKED AND SERVED BY SPRING VALLEY CHILDREN We drove out from Salem in automobiles. On reaching the grove we found it filled with teams tied everywhere, and many automobiles standing about. Promptly at ten o'clock the school children marched down from the schoolhouse in an industrial parade, carrying things that they had made or raised in the garden. A pretty sight they were, as they took their places on the reserved benches in front, all in their best clothes, most of the girls in white dresses of their own making. The Governor of Oregon was there, and made the first address. At the close of his talk, the Spring Valley children sang in voices as clear as the birds, There is no Land Like Oregon, and were most heartily cheered. After the remainder of the addresses and songs came the most breathless part of the day, the awarding of the school-credit prizes for the year's work. A member of the school board read the list of winners, and took occasion to express the appreciation that the district felt for Mr. O'Reilly's work. He assured the audience that the people of the district considered the plan one
- 57. of the very finest that they had ever known, for it put the children in the right attitude toward their work, and gave the parents the feeling that they were assisting in the work of the school. Never in the history of the community had there been such a year. The judging of the industrial work was then carried on, while the Spring Valley home-credit girls set the long tables for the luncheon, which they had prepared without assistance from their mothers. We all envied the three women up on the platform tasting the cakes, and were glad when the ribbons were pinned on, for we knew then that the dinner would begin. The blue ribbon for cake-making by children under thirteen was awarded to a boy, Arthur Z——. The governor and I placed this lad between us at the head of the table, and he gave us very generous portions of the prize cake. This was Mr. O'Reilly's last day with the Spring Valley School. The next year he was chosen one of the rural school supervisors in Lane County, and he is still there making an excellent record. A recent letter from him briefly takes up the later history of his Spring Valley winners in the home credit contest. He says:— Evangeline J—— was one of the winners. She is doing finely in high school, and still winning prizes at fairs. She leads her class in domestic science in the Eugene High School. She has eighty dollars in the bank, sixty-one dollars and fifty cents earned from prizes. You know the home credit started her bank account with three dollars. Golda B—— is another. She is attending the high school at Sheridan. Her standings are fine. She very seldom has to take examinations. She has about seventy-five dollars in the bank. Jack S—— has finished the eighth grade, and is going to attend high school in Eugene this year. His bank account is thirty-seven dollars and fifty cents. Mabel S—— has finished the grades and will go to high school in Hopewell this year. Her bank account is thirty-eight dollars. She has a piano her father got her, and is doing well in music. Verda R—— attends high school in Eugene this year. The other winners are still little ones, and are attending school in Spring Valley.
- 59. IV WHAT WILL BECOME OF THE ALGEBRA? Present interest is the grand motive power.—Rousseau. An objection to the introduction of new subjects is that children are already overworked in school. There is, however, a precaution against overwork; it is making school work interesting to the children. To introduce new and higher subjects into the school program is not necessarily to increase the strain upon the child. If this measure increases the interest and attractiveness of the work and the sense of achievement, it will diminish weariness and the risk of hurtful strain. Charles W. Eliot. When I was county superintendent in Yamhill County I used to talk much of the home credit plan in local institutes. One day when I was explaining how the plan worked, and how I had given credit in algebra for home activities, a teacher arose in the audience and said he was willing to go almost any length with me, but he thought it was going too far to give credit in algebra for what was not algebra. Is it not dishonest? he asked, and will it not teach dishonesty? Besides, if you give credit in this way for things not algebra, what will become of the algebra? This is an unsettled problem: what will become of the algebra? True, Mary got more algebra! I put this unsettled question alongside of another. I was arguing for the consolidation of schools in a little district near a larger district, and had tried to show that consolidation would be much cheaper, and would bring greater advantages, when a man stood up and said that he agreed in general with the plan but that it would not work in this district, for, said he, this district has a cemetery deeded to it, and
- 60. if the district should lose its identity, what would become of the cemetery? As these questions are similar, I put the algebra into the cemetery. I believe in algebra, but in order to teach algebra I believe it is first necessary to see to it that the child is in a constructive frame of mind. He should be in harmony with his surroundings. When Mary became interested in her home, she was in a mood to work problems in advance. When her home was neglected, her algebra problems were all in arrears. Even though we omitted the consideration of the health, the morals, and the working ability of the pupils, the home credit system would be justified as a part of the school work because of its revitalizing effect on the regular school work. The teacher who succeeds in touching the hidden springs of youthful interest is doing more for humanity than the man who discovers the much-sought-for method of bringing static electricity out of space. A child, or a man either for that matter, is a dynamo of energy when interested. Many people think that children in school are overworked; in my opinion they are more often underinterested. One little lad of about five, taking a Sunday walk with grown people, told his father that he was very tired, that his legs fairly ached, and that he would have to be carried or else camp right there. A member of the party (I wish I could remember his name, for he was a good child psychologist) said to the boy, Why, sure, you don't have to walk. I'll get you a horse. He cut a stick horse and a switch. The boy mounted at a bound, whipped his steed up and down the road, beating up the dust in circles around the crowd. By the time he reached home he had ridden the stick horse twice as far as the others had walked, and had not remembered that he was tired. My first trial of home credits convinced me that children would do better school work because of the plan. I have letters from many teachers through the Northwest bearing me out in my opinion. I quote: It stimulates to better work in school. The teachers notice an improvement in school work along all lines. It has helped to
- 61. make our school, in some respects at least, as good as any in the county, according to the county superintendent's own word. A member of the board says the children have never made such progress since the school was built, and all say these children have never made so much progress before. Tardiness is reported to be much less in home credit schools. A prominent Western dairyman remarked that arithmetic had always been a hopeless subject for him. He declared that arithmetically he was born short. A listener inquired if he had any trouble in keeping accounts, in figuring out the profits on each dairy cow, or in doing other problems connected with his farm. He replied very quickly, No, not at all. I don't have any trouble with anything except arithmetic. Home credits take into account the out-of-school mathematical activities. So the boy who has measured a cord of wood, laid out a garden plot, figured out the costs, income, and profits of feeding a pig for a year, or solved any problem that comes up on the farm, will be considered to have done something in arithmetic. From Auburn, Washington, comes a story of the effect of giving school credits for garage and shop work. Joe, a boy of seventeen, who had attended high school for a year and a half, had earned only three academic credits, and his other work was below passing. The superintendent, Mr. Todd, called a conference with Joe's parents and, to use his own expression, went after Joe with hammer and tongs. After much discussion, the superintendent finally asked the father and mother what the boy seemed most interested in outside of school. Exchanging a troubled glance with his wife, the father said that as soon as Joe got out of school he rushed straight to Meade's garage. So the superintendent went to the garage, and found that Joe could be taken into Mr. Meade's employment for the afternoons. Again he called Joe to his office, and said to him, Now, see here. You are going on with your regular subjects here in school, and in addition you are going to do some work down in Meade's garage. Mr. Meade is going to grade your work and send in his report to me. If you make good there it will help out your record here. You will get
- 62. pay for your work, too. You have got it in you to make good, and I know you will. What do you think about it? I think it's bully! exclaimed Joe. JOE IN THE GARAGE, AUBURN, WASHINGTON Joe had failed in his geometry, but as soon as he took the position at the garage his work in geometry improved. It was about Christmas that he began working, and at the time of the report several months later he was doing well in his mathematics. The credit he received from the garage counted toward his marks for high-school graduation. Mr. Meade, incidentally, was very much pleased with his part in the transaction, and sent in his reports with religious regularity. Not only Joe, but some half dozen other boys in Mr. Todd's school at Auburn are now farmed out in this manner, and work downtown under regular contract. They are mostly boys who had lost interest in school, and were at the dropping-out stage. Mr. Todd's plan is similar to the one in use at Fitchburg, Massachusetts.
- 63. Herbert M——, of Minnehaha, Washington, is such a busy boy at home that he does not have time to look at a book after he leaves school. This year, 1914, Mr. W. E. Dudley, the principal of the Minnehaha school, began to give credit for home work and allowed the credits obtained to be applied where most needed. The first month of school this year Herbert's arithmetic grade was below 65 per cent; his last month's grade in the same subject, without adding any credits, was above 95 per cent. At first Herbert needed his extra credits applied to his mathematics to obtain a passing grade. But for some cause his work in arithmetic has improved wonderfully. If you care to get up at five o'clock and go through the day with Herbert it may open your eyes as to what an industrious boy of fifteen does at home. He is always up early, for before the day's work begins he milks two cows, feeds three skim-milk calves and eight head of cattle, pumps water for them, and feeds nine pigs. He is then ready for a hearty breakfast. One morning in March, Herbert and his father agreed that harrowing was more important than going to school. So he worked five hours, harrowing four and a half acres. Herbert did not lose credit at school, for his teacher approved of his morning's work, as he knew how important it was. He was at school before the one o'clock bell rang, had a game of ball with the boys, and was ready for his lessons of the afternoon. At four o'clock he hurried home, and this is what he did before he went to bed. First, he herded six cows for over an hour, milked two cows, fed his skim- milk calves, got in the wood, fed the chickens, gathered the eggs, cleaned two barns, fed the eight head of cattle, pumped water for them, fed the pigs, and turned the separator ten minutes. While Herbert has had some trouble with his arithmetic he does fine work in composition. At the children's fair at Spokane in October, 1913, he won fifteen dollars in cash for the best essay on caring for a skim-milk calf, and a pair of scales as second prize for an essay on how to handle a farm separator. Here are Herbert's prizes for three years: In 1911 at the county fair at Vancouver, Washington, he got the second award, a diploma, on his farm exhibit; in 1912 as first prize on farm exhibit he won a trip to the fair at Puyallup; in 1913 at
- 64. the Clarke County fair he received ten dollars' worth of garden seeds as second prize on farm exhibit, fifteen dollars in cash for judging dairy cattle, while together with his parents he won seventy-five dollars for the best adult farm exhibit; and at the children's state contest, 1913, he received the first prize, fifteen dollars, for the skim-milk calf essay. A boy in one of the Portland, Oregon, schools had trouble with his spelling, getting a mark of only 41 ⁄2 on a scale of 10. Soon after home credits were put into use by his teacher he came to her and anxiously inquired if he could help out his spelling grade with a good home record. The teacher graciously assured him that he could. The boy brought in each week one of the very best home record slips, and in some mysterious manner his spelling improved as his hours of work increased. He does not need his home record to help out his spelling grade now, for last month he received more than a passing mark, 71 ⁄2 in his weak subject. The knowledge that there was help at hand relieved his nervousness, and gave him confidence.
- 65. V HONORING LABOR She ... worketh willingly with her hands ... and eateth not the bread of idleness. Give her of the fruit of her hands; and let her own works praise her in the gates. Proverbs XXXI, 13, 27, 31. We are still paying a heavy price for slave labor; for instance, the idea that it is undignified to cook has come down through the ages of slaveholding, and has got into some people's blood. The school by taking into account home tasks can make them seem worth while and thus dignify their doing. Many persons do not work because their ideals are made at school, and their heroes are those who did not win honor at labor, or, at least, the labor of these heroes is not emphasized. In the case of Mary, the work she did at home transformed her from a heedless girl into a sympathetic helper. She had the idea that too many young people have, that it is more honorable to study algebra than to wash dishes or to cook a meal. The minute that she saw that they were considered equal she no longer held back from the home work, and when in a constructive frame of mind she not only did the home work but did her algebra too. There is not a normal American boy who shrinks from a piece of work because he thinks it is hard. On the contrary, he likes the man's job, and seeks out the hard things and tackles them. He avoids the things he thinks are not worth while. So it becomes a matter of the child's point of view whether he likes his work or not. Too often it is the case that the child never hears it suggested that there is any merit in home work within itself. He has the idea that he goes to school to get an
- 66. education, and works at home because he has to. Many parents frankly tell their children that they should study well at school so they can make a living without working. When we give home work its proper recognition, and the child comes to understand that there are different degrees of efficiency and skill in doing it, the work will take on a new color. Many are the reports that have come in from parents in home credit districts saying, There is nothing left for us to do in the way of chores. The children used to seem indifferent about the work, and did as little as they could. Now the boys get up before we do instead of waiting to be called, rush downstairs to make the fires, and go at the chores, while the girls go into the kitchen and start breakfast. While youth is the time for play, yet children like to work too. Since we have had the school gardens in Portland we often find the playgrounds vacant, and the gardens near by well filled with children at work. We often hear that children should not have responsibilities; yet we find that the successful men of to-day are the ones that bore burdens early. A number of successful business men in Portland were recently talking together of their boyhood days, and each one said that he had had to assume a great deal of responsibility before he was twelve years old. The importance of percentages, credits, grades, or standings in the minds of school children, especially in the upper grammar classrooms, is surprising to a stranger. Even the drawing teacher is begged to give marks. But there are the drawings, arranged in the order of their merit, on the screen. They can see which are the best! No, they want a mark. To raise our standings, they say.
- 67. WORK CREDITED AT SCHOOL, WESTON, OREGON Of course, we all feel that marks in school have but a temporary purpose; that they are to furnish a motive to serve until a better motive can be substituted. Home work may be encouraged at first by the wish for higher standings, or a prize, or a holiday; but many other influences are likely to come in to keep it up. This is not the place to discuss the teaching without marks that is practiced in a few modern schools. In most schools the system of
- 68. giving percentages is firmly established. The honoring of achievement in the schools, by marks or otherwise, has always been a great power in helping the school studies move along. But only part of the available energy has been used. There are vast reservoirs of power which may be put at the service of education and which as yet have scarcely been tapped. I hope the giving of marks will never be the main consideration with those who follow the home credit idea, but rather the giving of honor. Too long have pupils' out-of-school industries been ignored at school as though they were something to be ashamed of. Whether we give formal credit or not, let us give honor at school for home work.
- 69. VI HABIT-BUILDING Habit second nature? Habit is ten times nature. The Duke of Wellington. Habits plus ideals make character. The establishing of right habits in youth can best be done by coöperation of parents and teachers. So far as we take habit-building as our aim, education becomes definite and concrete. At the close of his famous chapter on Habit, William James says:— Could the young but realize how soon they will become mere walking bundles of habit, they would give more heed to their conduct while in the plastic state. We are spinning our own fates, good or evil, and never to be undone. Every smallest stroke of virtue or of vice leaves its never so little scar.... Let no youth have any anxiety about the upshot of his education, whatever the line of it may be. If he keep faithfully busy each hour of the working day, he may safely leave the final result to itself. He can with perfect certainty count on waking up some fine morning to find himself one of the competent ones of his generation, in whatever pursuit he may have singled out.... Young people should know this truth in advance. The ignorance of it has probably engendered more discouragement and faint- heartedness in youths embarking on arduous careers than all other causes put together. One habit that works for success is industry. How easy it is for a bright boy or girl to get through school without acquiring anything
- 70. like a habit of being industrious, even in learning book lessons! If he is quick-minded, as he has only to keep up with the average child, he needs little or no work to give him a good standing in his class. The alert child often gains all required information by merely listening to the other pupils. Thus we often find failures among those bright pupils whom we expected to find successful, because they did not learn to dig and could do only what came easily. Most occupations demand more than an acquiring attitude of mind. They demand vigorous exertion, and the seeing to it that the thing is done. But how is there to be any assurance that the child is forming habits of industry if there is not coöperation? The child tells the parent that he has to prepare his lessons and so he gets out of work at home; he makes the plea that he is tired out by home tasks so that he may not be given hard work at school. So he misses the work habit entirely. Politeness—a show of consideration for the rights and feelings of others—is partly a habit. Careful watching by parent and teacher is needed to establish this consideration as a permanent attitude of mind. It is with much pleasure that I note that many of the home credit cards bear the items, Cheerfulness, Kindness, Politeness, Keeping temper, Doing before told, Care of language, Courtesy to parents, and the like. And it is with very great pleasure that I receive letters from parents and teachers saying that the attitude of the children in these things is becoming a habit.
- 71. ALGONA, WASHINGTON, GIRL, AGED 12, EARNING HOME CREDITS Elizabeth G—— and her mother have a small blackboard in the kitchen and here they keep a record of all the work Elizabeth does Neatness and personal care are habits that mean much to any one. Some grown people cannot help being neat. Others apparently cannot be neat no matter how much they try. Something is always wrong. It is a habit formed when young, perhaps before the age of twenty. In Mr. O'Reilly's list he included sleeping with window boards in, bathing, caring for the nails, brushing the hair, cleaning the teeth, and going to bed by nine o'clock. Personal care has been given a place on the Portland home credit record[2] which is now used in some of the schools. Algona, a home credit school about twenty miles from Seattle, uses the Portland personal care section, including bathing, brushing teeth, sleeping with open windows, going to bed before nine o'clock, and attending church or Sunday school. In
- 72. looking over the first home credit slips that came in, the Algona principal found that Nettie, a girl of thirteen, had earned just 7 per cent out of the 100 per cent given for a perfect record in the personal division. She had earned more than the required two hundred and ten minutes for the week in the regular work department at a hard round of preparing meals, washing dishes, sweeping, feeding the poultry, scrubbing, and so forth. But Nettie had slept with her window closed, had not brushed her teeth, had not taken a bath, nor had she been in bed at the required hour. Nettie was obviously unhappy over the grade her card received in comparison with the grades of her schoolmates. Before the next report day she had in some way secured a toothbrush, that effective means of promoting civilization, and had made sufficient improvement in her personal care to secure 65 per cent. Her grade for the third week was 72 per cent, and for the fourth, 93 per cent. Her fourth week's report showed a hot bath, toothbrushing twice a day, window open every night, and that she was in bed before nine every night but two. What her reform will mean to the entire family it is interesting to conjecture. Be careful about that voice, Ella, directed a teacher. Ella arose at her place, a thin, stooping girl of about thirteen. She read her passage of the lesson in a voice scarcely audible to the visitor across the room. A few minutes later the visitor was looking over some home credit report slips. Here is a girl who did not sleep with her windows open, she said. The teacher took the blank, studied it a minute, then replied, This is the first time that child has brought in a home credit slip. Do you recall my reminding a little girl about her voice? That is the girl, and this card may explain her voice quality. All the pupils except two in a little Washington town learned to sleep with their windows open. Upon inquiry it was found that one girl could not open her window, as it was made for admitting light only, being built solidly into the wall. In the case of the other child, the parents absolutely refused to endanger their daughter's health by letting her breathe night air, no matter how many faddists insisted that it was necessary!
- 73. Some members of a church were discussing the problem of the spirit of incipient immorality that they felt was prevalent among children in the neighborhood. A home credit teacher showed the speakers a number of the first report cards she had received, which disclosed the fact that very few of the pupils under her care were ever in bed before nine o'clock. A few months later she took occasion to display again her pupils' home credit cards and with pride pointed out that almost every child was going to bed early, before nine o'clock. It had grown to be a habit with the children to be up late, she said. The immorality talked of was not yet in actual existence among the children, but through their outside evening associates was gradually working itself in. The children had only to be reminded in a substantial way that it was not only desirable for them physically to retire early, but that they were to receive recognition in their school standing for so doing, and they at once happily complied.
- 74. VII THAT OTHER TEACHER AND THAT TEACHER'S LABORATORY We are just beginning to discover that the rural school has a fine laboratory for practical educational purposes, in the neighborhood environment of the school. With the development of scientific agriculture and domestic arts in many of our modern country homes this laboratory is constantly improving. Kansas State Agricultural College Bulletin, 1914. There is a general idea among teachers that parents will not coöperate with them. This, I believe, is founded upon the assumption that because they cannot, as a usual thing, coöperate in textbook work they will not coöperate in other things. But both parents and teachers want the same results accomplished. If these are to be attained it means partnership work, the parent and that other parent, the teacher, working together; or one might say, the teacher, and that other teacher, the parent, working together. I have been surprised to find to what extent parents will coöperate with teachers if given a chance. Mrs. Brown goes to the schoolhouse on a bleak afternoon. She is greeted warmly by the teacher, Miss Smith, and given an arithmetic text to follow while the class recites. The lesson is on decimal fractions. Now, Mrs. Brown didn't have decimal fractions during her school days, so the recitation is quite meaningless to her. She is glad when the class is over, and does not find time to visit school again that term. But if she is asked to prepare a luncheon for the picnic at the close of the year, or asked to assist in any social function at the schoolhouse, she spends her time for the school, and is glad to do it.
- 75. In Eugene, Oregon, several years ago I found that the women of the city were enthusiastic in aiding the schools. Thirty-two women gave up Monday afternoon to teaching the girls sewing, while the boys had military drill. At a social center meeting at Hover, Washington, the suggestion was made that it would be well if one of the mothers would come to the school building occasionally to help the girls with their sewing, as the eighth-grade pupils would have to take an examination in the subject in May. So many mothers volunteered to undertake the task that a schedule was made out whereby a sewing period could be had every afternoon, and no mother be on duty oftener than every two weeks. At Myrtle Creek, Oregon, domestic art work is carried on in this way: the teacher gives instructions in the work that is to be done; in cooking, for instance, recipes are given, talked over, and written down. The girls then go home, and actually do the work, and make a report to the teacher. They must have the signatures of their mothers for all the work they do. This is managed with a home credit report card. Mrs. E. H. Belknap, a progressive rural teacher near Jefferson, Oregon, said in a recent letter: We learn how a cow can be fed and cared for, so as to produce the greatest amount of butter fat. That is well, but we regard it of far more value for the boy to go home, apply the knowledge learned, and produce the butter fat. He is now worth something to the world, and able to turn his education into dollars and cents at any time. The girl takes the book, and reads how to make butter. She goes home, tends the milk, churns, and makes the butter, learns how really to do the work. She has called the attention of the entire family to the amount and quality of her butter obtained from proper feeding and handling of the cow by the boy. And yet it is said that nothing can be done in the small school in domestic science because there is no equipment. In every home there is ideal equipment if we mean the equipment the children are to use. If we are preparing for life, why not use the equipment we
- 76. must use in life? Best of all, in using the home laboratory there is an immediate purpose. None of us can get much out of an exercise when it is done just for an exercise. There is the dinner to be cooked, the bed to be made, the ironing to be done; somebody must do it. And the dinner, the bed, and the ironing are to be put to the test by some one who sees real values. There is no doubt that one of the things schools most lack is purpose. It might be said that to stimulate a child to want to do things is only half the problem. If children do things without expert instruction they may do them wrong, and thus get a faulty habit. But I think more than half of the problem is solved when we create the desire to do a thing. The greatest fault of present-day education is that we constantly try to teach a child how to do a thing without his desiring to do it, or even knowing the reason for doing it. On the other hand, I once knew a country girl who had never seen a domestic science equipment, and who lived in a community where there was no one housekeeper especially noted; yet with her strong desire to be a fine housekeeper she learned something good from each neighbor, and for excellent results, and for economy of time and material, her daily practice would put the average domestic science teacher to disadvantage. However I am not arguing that domestic science should not be taught at school; I certainly believe it should. But I do claim that it is worth while, and is absolutely necessary, first to create the desire to do the things that are to be taught. To do things without a purpose is like trying to eat without an appetite. A pamphlet published by the Kansas State Agricultural College on School Credit for Home Work: The Laboratory of the Rural School, makes these practical points:— Could there possibly be a more favorable condition for teaching Domestic Arts than in the rural school from which the girl goes every evening to a busy home where she is needed to take part in the actual work of housekeeping? It is here that the girl has a chance to put into actual practice the things she has learned at school. Here the home has the chance to realize immediately
- 77. upon the investment it is making in the education of the girl. If sanitation, ventilation, sweeping and dusting, care of the sick, preparation of foods, care of milk, water supply and uses, bathing, care of health, sewing, proper clothing, etc., are taught in our schools, and if the laboratories are in the immediate neighborhood, and the girls and boys must go into them to stay overnight, they should be used. Likewise, the vegetable gardens at the homes should be made the experimental plots for the school, after the best seeds have been selected, best methods of preparing, fertilizing, and planting the soil, best-known methods of cultivation and maturing the crops, have been taught. The actual experimental work should be carried out in the home gardens by the boys and girls. Proper records can be kept, and the boys and girls will be anxious to get back into school, after the out-of-doors summer experiments, to compare reports, and renew another phase of their educational work. In agriculture the fields, stock, buildings, etc., about the schoolhouse should be studied and used. These are the real agricultural laboratory. The real problems of actual farming are present, and the methods of work and the ways of handling the fields and the stock are the available resources of the school as a part of its actual laboratory. In this connection study the dairy cows, the feeding of cattle, hogs, and horses, types and breeds of farm horses, cattle, hogs, and sheep. In every community there are many opportunities for type studies—such as fields of alfalfa or wheat or corn; a dairy herd; valuable and well-bred horses; beef cattle; hogs or sheep; a silo, or types of farm machinery, and farm buildings. It is natural for a child to want to assume home responsibilities, but there are many things that interfere unless a special effort is made. The school itself has been a great offender in weaning children from their homes and from natural living. This, of course, is not strange when we consider that the school started out to make lawyers and ministers, and not home-makers. Yet one of the great needs of the
- 78. time is to make people home-loving, and to have those wholesome habits that come from sharing home responsibilities. Anything is worth while that will make the child once taste the joy of doing a useful thing well.
- 79. VIII STELLA AND SADIE Through ignorance ye did it.—Acts III, 17. Let the school go on just as it has. What business is it of the school to meddle with the home work? Of course most children do certain chores at home, but why confuse the work of the home with the work of the school? Have you heard this speech? I have heard it several times. Does justice demand that we know what pupils do outside of school? Must the teacher know home conditions in order to teach efficiently? I have in mind a true story that answers these questions and shows the injustice of teaching children when one knows little or nothing of their home life. I am sure most teachers have had similar experiences. In a certain schoolroom in a certain town I noticed one day two girls in the same class sitting near each other. The contrast between them was so great that I became interested in them, and found out something of their history and circumstances. Stella, the younger one, eleven years old, was a perfect picture of rosy health. Her brown hair was beautiful and most becomingly arranged. Many women would have been delighted to wear such furs as she put on at the noon recess. Well dressed and well nourished, she had the look of one much loved at school and at home, one to whom life was all happiness. Stella is the only child of wealthy and doting parents. If we should follow her home we should find a well-kept modern house, and we should see that the mother who greets her at the door is just such a mother as we should expect for such a girl. While the evening meal
- 80. is being prepared, her mother sits beside her at the piano, and helps with her practice, and when the father comes in, the three sing together until dinner is announced. After dinner her mother helps her with her Least Common Multiple and Greatest Common Divisor. They all discuss her composition and then her mother asks her to read aloud, and reads to her. Promptly at nine o'clock she goes to bed in just the kind of room a little girl loves. The windows are opened to the proper width, the heat is turned off, she is kissed good-night, and is told, Mother loves you, and Father will come in and kiss you when he comes home. In the morning at seven o'clock she is called by a very gentle voice, and told it is time for Mother's angel to leave her dreams. Her mother helps her dress, and brushes and braids her hair. What will Father's sweetheart have for breakfast this morning? She will have grape-fruit and a poached egg on toast. After some fitting by the seamstress for a new dress to be added to her already full wardrobe, she is thoroughly inspected and is ready for school. She is given some flowers for the teacher, and is accompanied part way by her mother. She is early at school, her teacher kisses her, pats her cheeks, and Stella is ready for the lessons, the lessons her mother helped her with the evening before. There she is, happy, radiant! Now let us go home with the other girl. Sadie is thirteen, but she looks much older notwithstanding her frail little figure. Did I say home? Be the judge. A few years ago her father and her aunt ran away together, leaving the mother with Sadie and two younger children. The broken-spirited mother died after the desertion, and the father and aunt returned, were married, and took possession of the house and the three children. They now have a baby a year old. The family live in a tumbledown house at the edge of the city. On entering the house Sadie receives no greeting from her stepmother- aunt, who is sitting by a dirty window reading. The child knows what work there is to do, and goes at it sullenly. After the meal, at which she scarcely has time to sit down, she has to do up the work, and then is sent on an errand. When she returns it is nine o'clock and she is hardly able to keep her eyes open. The Least Common
- 81. Multiple and the Greatest Common Divisor are like Greek to her. After she has tried to study a few minutes, her stepmother disturbs her by throwing her brother's stockings into her lap to be mended. When this task is completed, and the potatoes are peeled for breakfast, she goes upstairs. She tenderly draws the covers about her sleeping brother and creeps into bed beside her little sister. Though she is very weary, her starved soul is comforted as she cuddles and kisses her sister before she drops to sleep. In the night she awakens, and thinking Harry is again uncovered she slips over to his bed, like a little mother, and again adjusts the bedclothes. The baby awakens at five o'clock, and Sadie is called and told to make a fire and warm the milk. She then gets breakfast, does the kitchen work, spreads up the beds, sews a button on her brother's coat, braids her sister's hair, and is late at school. She came in a few minutes late the morning I visited her room. The class was trying to make a record for punctuality, and had tied another room for first place until this morning when Sadie's lateness set them behind. The teacher was provoked and reproved Sadie. The pupils showed their scorn in many ways and said she was the cause of all but three of the tardy marks of the term. The teacher knew that the principal would ask her why she did not improve her tardy record. The pupils knew that their chances for a half-holiday were spoiled as long as that Sadie Johnson was in the room. This morning especially the teacher wished to make a good showing because she wanted a place in a larger city and hoped that I would recommend her. Arithmetic was the first thing on the program. The principal had boasted of the work of his school in arithmetic. The work went beautifully, for Stella led off with a perfect recitation. The pride of the whole class was evident, the teacher was hopeful. But wanting to see the work of all the pupils, I asked several questions, and at last called upon Sadie. She didn't know, she stood abashed, and showed absolute lack of understanding of the subject. The principal was provoked. The teacher was plainly humiliated, and said
- 82. in a tone that was low, but loud enough for Sadie and several of the children to hear, The girl is not only lazy, but feeble-minded. So it was the whole term. Sadie was tortured each school day, condemned by the most powerful court in the world, her companions, led by her teacher. And the reason was that the teacher was teaching only the six-hour-a-day girl. One does not have to go to Turkey to see examples of injustice and cruelty. But let us not be too critical of the teacher. She is tender-hearted and sympathetic. She weeps over the heroines in books, and has latent longings to be of service in the world. In this case she did not know the conditions that made Sadie stupid. If she had been interested in the children's out-of-school work, and had had them tell her about it, she would have known that the frail little unkempt girl was compelled to do a woman's work at home besides trying to get her lessons. Then she would have seen the tragedy in the child's appealing glance and have understood her. Some people go through life without finding an opportunity to do justice, such as was this teacher's. In ministering to the soul-hunger of this little girl she might have given the service that she had dreamed of giving. It would have been the kind of service that is its own reward.
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