The book focuses on the power of business blockchain. It gives an overview of blockchain in traditional business, marketing, accounting and business intelligence. The book provides a detailed working knowedge of blockchain, user cases of blockchain in business, cryptocurrency and Initial Coin Offering(ICO) along with the risks associated with them. The book also covers the detailed study of decentralization, mining, consensus, smart contracts, concepts and working of distributed ledgers and hyper ledgers as well as many other important concepts. It also details the security and privacy aspects of blockchain.
The book is beneficial for readers who are preparing for their business careers, those who are working with small scale businesses and startups, and helpful for business executives, managers, entrepreneurs, bankers, government officials and legal professionals who are looking to blockchain for secure financial transactions. The book will also be beneficial for researchers and students who want to study the latest developments of blockchain.
Table of Contents
Preface xv
1 Introduction to Blockchain 1
Akshay Mudgal
1.1 Introduction 1
1.1.1 Public Blockchain Architecture 5
1.1.2 Private Blockchain Architecture 5
1.1.3 Consortium Blockchain Architecture 5
1.2 The Privacy Challenges of Blockchain 6
1.3 De-Anonymization 8
1.3.1 Analysis of Network 9
1.3.2 Transaction Fingerprinting 9
1.3.3 DoS Attacks 9
1.3.4 Sybil Attacks 9
1.4 Transaction Pattern Exposure 10
1.4.1 Transaction Graph Analysis 10
1.4.2 AS-Level Deployment Analysis 10
1.5 Methodology: Identity Privacy Preservation 10
1.5.1 Mixing Services 10
1.5.2 Ring Signature 12
1.6 Decentralization Challenges Exist in Blockchain 14
1.7 Conclusion 15
1.8 Regulatory Challenges 16
1.9 Obstacles to Blockchain Regulation 16
1.10 The Current Regulatory Landscape 17
1.11 The Future of Blockchain Regulation 18
1.12 Business Model Challenges 19
1.12.1 Traditional Business Models 19
1.12.2 Manufacturer 19
1.12.3 Distributor 20
1.12.4 Retailer 20
1.12.5 Franchise 20
1.13 Utility Token Model 20
1.13.1 Right 21
1.13.2 Value Exchange 21
1.13.3 Toll 21
1.13.4 Function 21
1.13.5 Currency 22
1.13.6 Earning 22
1.14 Blockchain as a Service 22
1.15 Securities 23
1.16 Development Platforms 24
1.17 Scandals and Public Perceptions 25
1.17.1 Privacy Limitations 26
1.17.2 Lack of Regulations and Governance 26
1.17.3 Cost to Set Up 26
1.17.4 Huge Consumption of Energy 26
1.17.5 Public Perception 27
References 27
2 The Scope for Blockchain Ecosystem 29
Manisha Suri
2.1 Introduction 30
2.2 Blockchain as Game Changer for Environment 32
2.3 Blockchain in Business Ecosystem 38
2.3.1 Business Ecosystem 39
2.3.1.1 What Is Business Model? 39
2.3.1.2 Business Model - Traditional 39
2.3.2 Are Blockchain Business Models Really Needed? 41
2.3.2.1 Blockchain Business Model 41
2.3.2.2 Model 1: Utility Token Model 41
2.3.2.3 Model 2: BaaS 43
2.3.2.4 Model 3: Securities 44
2.3.2.5 Model 4: Development Platforms 45
2.3.2.6 Model 5: Blockchain-Based Software Products 46
2.3.2.7 Model 6: Blockchain Professional Services 46
2.3.2.8 Model 7: Business Model - P2P 47
2.4 Is Blockchain Business Ecosystem Profitable? 48
2.5 How Do You “Design” a Business Ecosystem? 49
2.6 Redesigning Future With Blockchain 53
2.6.1 Is Earth Prepared for Blockchain? 53
2.7 Challenges and Opportunities 57
References 58
3 Business Use Cases of Blockchain Technology 59
Vasudha Arora, Shweta Mongia, Sugandha Sharma and Shaveta Malik
3.1 Introduction to Cryptocurrency 60
3.2 What is a Bitcoin? 60
3.2.1 Bitcoin Transactions and Their Processing 62
3.2.2 Double Spending Problem 65
3.2.3 Bitcoin Mining 67
3.3 Bitcoin ICO 69
3.3.1 ICO Token 69
3.3.2 How to Participate in ICO 70
3.3.3 Types of Tokens 71
3.4 Advantages and Disadvantages of ICO 72
3.5 Merchant Acceptance of Bitcoin 73
References 75
4 Ethereum 77
Shaveta Bhatia and S.S Tyagi
4.1 Introduction 78
4.2 Basic Features of Ethereum 78
4.3 Difference between Bitcoin and Ethereum 79
4.4 EVM (Ethereum Virtual Machine) 82
4.5 Gas 85
4.5.1 Gas Price Chart 85
4.6 Applications Built on the Basis of Ethereum 86
4.7 ETH 87
4.7.1 Why Users Want to Buy ETH? 87
4.7.2 How to Buy ETH? 88
4.7.3 Alternate Way to Buy ETH 88
4.7.4 Conversion of ETH to US Dollar 89
4.8 Smart Contracts 90
4.8.1 Government 90
4.8.2 Management 91
4.8.3 Benefits of Smart Contracts 91
4.8.4 Problems With Smart Contracts 92
4.8.5 Solution to Overcome This Problem 92
4.8.6 Languages to Build Smart Contracts 92
4.9 DApp (Decentralized Application or Smart Contract) 93
4.9.1 DApp in Ethereum 93
4.9.2 Applications of DApps 93
4.10 Conclusion 95
References 95
5 E-Wallet 97
Ms. Vishawjyoti
5.1 Overview of Wallet Technology 97
5.2 Types of Wallet 98
5.2.1 Paper 98
5.2.2 Physical Bitcoins 99
5.2.3 Mobile 99
5.2.4 Web 100
5.2.5 Desktop 100
5.2.6 Hardware 100
5.2.7 Bank 101
5.3 Security of Bitcoin Wallets 101
5.4 Workings of Wallet Technology 101
5.5 Create HD Wallet From Seed 102
5.5.1 Initiation 103
5.5.2 Steps for Creating an HD Wallet From a 24-Word Seed Phrase Through Particl-qt Tool 104
5.5.3 Steps for Encrypting the HD Wallet 106
5.5.4 Utilization 108
5.5.5 Steps for Generating Address to Access Transactions on the HD Wallet 108
5.6 Navigating HD Wallet 109
5.7 Conclusion 110
References 110
6 Blockchain and Governance: Theory, Applications and Challenges 113
Bhavya Ahuja Grover, Bhawna Chaudhary, Nikhil Kumar Rajput and Om Dukiya
6.1 Introduction 114
6.2 Governance: Centralized vs Decentralized 115
6.3 Blockchain’s Features Supportive of Decentralization 117
6.4 Noteworthy Application Areas for Blockchain-Based Governance 119
6.4.1 Public Service Governance 119
6.4.2 Knowledge and Shared Governance 121
6.4.3 Governance in Supply Chain 123
6.4.4 Governance of Foreign Aid 124
6.4.5 Environmental Governance 125
6.4.6 Corporate Governance 126
6.4.7 Economic Governance 128
6.5 Scopes and Challenges 128
6.6 Conclusion 136
References 137
7 Blockchain-Based Identity Management 141
Abhishek Bhattacharya
7.1 Introduction 141
7.2 Existing Identity Management Systems and Their Challenges 142
7.3 Concept of Decentralized Identifiers 144
7.4 The Workflow of Blockchain Identity Management Systems 145
7.5 How Does it Contribute to Data Security? 148
7.6 Trending Blockchain Identity Management Projects 150
7.7 Why and How of Revocation 152
7.8 Points to Ponder 154
7.8.1 Comparison Between Traditional and Blockchain-Based Identity Management Systems 156
7.9 Conclusion 157
References 158
8 Blockchain & IoT: A Paradigm Shift for Supply Chain Management 159
Abhishek Bhattacharya
8.1 Introduction 159
8.2 Supply Chain Management 160
8.2.1 The Aspects of a Supply Chain 161
8.2.2 Supply Chain Performance Dimensions 162
8.2.3 Supply Chain Migration Towards Digitalization 163
8.3 Blockchain and IoT 164
8.3.1 What Makes Blockchain Suitable for SCM? 166
8.3.1.1 Shared Ledger 167
8.3.1.2 Permissions 168
8.3.1.3 Consensus 168
8.3.1.4 Smart Contracts 169
8.3.2 The Role of Blockchain in Achieving the SCM Performance Dimensions 170
8.3.3 The Role of IoT in the Implementation of Blockchain Technology 171
8.4 Blockchain Technology and IoT Use Cases in Supply Chain Management 172
8.5 Benefits and Challenges in Blockchain-Based Supply Chain Management 173
8.6 Conclusion 176
References 176
9 Blockchain-Enabled Supply Chain Management System 179
Sonal Pathak
9.1 Introduction 180
9.1.1 Supply Chain Management 180
9.2 Blockchain Technology 184
9.3 Blockchain Technology in Supply Chain Management 186
9.4 Elements of Blockchain That Affects Supply Chain 190
9.4.1 Bitcoin 195
9.5 Challenges in Implementation of Blockchain-Enabled Supply Chain 197
9.6 Conclusion 197
References 199
10 Security Concerns of Blockchain 201
Neha Jain and Kamiya Chugh
10.1 Introduction: Security Concerns of Blockchain 201
10.2 Cryptocurrencies Scenarios 202
10.3 Privacy Challenges of Blockchain 203
10.3.1 Protection Problems in Blockchain 203
10.3.2 Privacy-Preserving Mechanisms Analysis 207
10.3.3 Data Anonymization-Mixing 207
10.4 Decentralization in Blockchain 208
10.4.1 Role of Decentralization in Blockchain 209
10.4.2 Analysis of PoS and DPoS 210
10.4.3 Problems With Decentralization 210
10.4.4 Decentralization Recovery Methods 212
10.5 Legal and Regulatory Issues in Blockchain 213
10.5.1 Legal Value of Blockchain and its Problems 214
10.6 Smart Contracts 218
10.7 Scandals of Blockchain 220
10.7.1 Blockchain Technologies as Stumbling Blocks to Financial Legitimacy 223
10.8 Is Blockchain the Rise of Trustless Trust? 223
10.8.1 Why Do We Need a System of Trust? 226
10.9 Blockchain Model Challenges 227
References 229
11 Acceptance and Adoption of Blockchain Technology: An Examination of the Security & Privacy Challenges 231
Amandeep Dhaliwal and Sahil Malik
11.1 Introduction 231
11.1.1 Research Methodology 233
11.1.2 Analysis 233
11.2 Security Issues of Blockchain 233
11.2.1 The Majority Attack (51% Attacks) 233
11.2.2 The Fork Problems 234
11.2.2.1 Hard Fork 234
11.2.2.2 Soft Fork 235
11.2.3 Scale of Blockchain 235
11.2.4 Time Confirmation of Blockchain Data - Double-Spend Attack/Race Attack 235
11.2.5 Current Regulations Problems 236
11.2.6 Scalability and Storage Capacity 236
11.2.7 DOS Attack/Sybil Attack/Eclipse Attack/Bugs 237
11.2.8 Legal Issues 237
11.2.9 Security of Wallets 238
11.2.10 The Increased Computing Power 238
11.3 Privacy Challenges of Bitcoin 238
11.3.1 De-Anonymization 239
11.3.1.1 Network Analysis 239
11.3.1.2 Address Clustering 239
11.3.1.3 Transaction Finger Printing 240
11.3.2 Transaction Pattern Exposure 240
11.3.2.1 Transaction Graph Analysis 240
11.3.2.2 Autonomous System-Level Deployment Analysis 241
11.4 Blockchain Application-Based Solutions 241
11.4.1 Bitcoins 241
11.4.2 IoT 242
11.4.2.1 MyBit 242
11.4.3 Aero Token 242
11.4.4 The Chain of Things 243
11.4.5 The Modum 243
11.4.6 Twin of Things 243
11.4.7 The Blockchain of Things 244
11.4.8 Blockchain Solutions: Cloud Computing 244
11.5 Conclusion and Future Work 245
References 245
12 Deficiencies in Blockchain Technology and Potential Augmentation in Cyber Security 251
Eshan Bajal, Madhulika Bhatia, Lata Nautiyal and Madhurima Hooda
12.1 Introduction 252
12.2 Security Issues in Blockchain Technology 252
12.3 Privacy Challenges 253
12.3.1 BGP Hijacking Attack 255
12.3.2 BDoS (Blockchain Denial of Service) 255
12.3.3 Forcing Other Miners to Stop Mining 256
12.4 Decentralization Challenges 256
12.5 Regulatory Challenges 260
12.5.1 Principles to Follow While Regulating 262
12.5.1.1 Flexible to Legal Innovation 262
12.5.1.2 Experimentation Should be Encouraged 263
12.5.1.3 Focus on the Immediate Implications 264
12.5.1.4 Regulators Should Engage in a Transnational Conversation 264
12.5.2 Regulatory Strategies 265
12.5.2.1 Wait-and-See 265
12.5.2.2 Imposing Narrowing and Broadening Guidance 266
12.5.2.3 Sandboxing 266
12.5.2.4 Issue a New Legislation 267
12.5.2.5 Use Blockchain in Regulation 268
12.6 Business Model Challenges 269
12.7 Scandals and Public Perception 271
12.8 Why Blockchain is Trustless 277
12.8.1 Trust Mechanism 278
12.8.2 Anonymity 279
12.8.3 Use in Digital Wallets 279
12.8.4 Forgery Resistance 279
12.9 Use of Blockchain in Cybersecurity 280
12.9.1 Blockchain Database 281
12.9.2 DNS Security 283
12.9.3 IoT Security 283
12.9.4 DDoS Prevention 286
12.9.5 CDN (Content Delivery Network) 286
12.9.6 SMS Authentication 287
References 288
13 Internet of Things and Blockchain 295
Priyanka Sharma
13.1 History of ‘Internet of Things’ 296
13.2 IoT Devices 298
13.3 Sensors and Actuators 302
13.4 Cloud and Haze-Based Engineering 307
13.5 Blockchain and IoT 315
13.6 Edge Computing 321
13.7 Contextual Analyses 324
13.8 Fate of Blockchain and IoT 332
References 332
14 Blockchain Applications 337
Boby Singh, Rohit Pahwa, Hari Om Tanwar and Nikita Gupta
14.1 Introduction to Blockchain 337
14.1.1 Uses of Blockchain in Administration 339
14.2 Blockchain in Big Data Predictive Task Automation 340
14.2.1 How Can Blockchain Help Big Data? 341
14.2.2 Blockchain Use Cases in Big Data 341
14.3 Digital Identity Verification 342
14.3.1 Why Digital Identity Matters? 343
14.3.2 Blockchain (Definition and its Features) 343
14.3.3 Why do we Need Blockchain in Digital Identity? 344
14.3.4 How Does a Blockchain Works? 345
14.3.5 Why is a Blockchain Secure? 345
14.3.6 What’s Blockchain Identification Management? 346
14.3.7 Advantages 347
14.4 Blockchain Government 348
14.4.1 Decentralized Government Services 349
14.4.2 Liquid Democracy and Random Sample Election 350
14.5 Blockchain Science 351
14.5.1 FoldingCoin 351
14.5.2 GridCoin (GRC) 352
14.5.3 Global Public Health 353
14.5.4 Bitcoin Genomics 354
14.6 Blockchain Health 355
14.6.1 Health Coin 355
14.6.2 EMR on Blockchain 355
14.6.3 Bit Coin Health Notary 356
14.7 Blockchain Learning 357
14.7.1 Bitcoin MOOCs 357
14.7.2 Smart Contract Literacy 357
14.7.3 LearnCoin 359
References 359
15 Advance Concepts of Blockchain 361
Raj Kumar
15.1 Community Supercomputing 361
15.2 Blockchain Genomics 364
15.3 Blockchain Learning 365
15.4 Community Coin 366
15.4.1 Monetary and Non-Monetary Currencies 367
15.4.2 Difference Between Monetary and Non-Monetary Assets 369
15.4.3 Currency Multiplicity 369
15.4.4 List of Some Prominent Alternate Coins is Given Below 370
15.5 Demurrage Currencies 371
Reading List 371
Index 373
