REPORT

BLOCK CHAIN

Project Advisor
MISS SAPNA Sir Awais khan jumani

Submitted by:

Areeba Siddiqui…………………………………………BB-27499
Aneela fida Hussain……………………………………BB-27453
Faizan Saeed khan………………………………………BB-27500
Zubair Akhtar……………………………………………...BB-27523

ILMA UNIVERSITY (FORMERLY IBT)

 Preface…………………………………………………………………………
Acknowledgement……………………………………………………………

Synopsis……………………………………………………………………
Chapter 1 Introduction…………………………………………………
Chapter 2. Open issues ………………………………
Chapter 3. Security…………………………………
Chapter 4. Block chain models…………………………………………………

Chapter 5. Quality Of service…………………………………………………

Chapter 6. Conclusion …………………………………………………………
Chapter 7. References/Bibliography…………………………………………
Preface

This report is all about the project “BLOCK CHAIN”. In a block chain, many

people can write ntries into a record of information, and a community of

users can control how the record of information is emended and updated.

Likewise, Wikipedia entries are not the product of a single publisher. No

one person controls the information.

In other words, block chain is a peer to peer software technology.

This report covers all the open issues, security, new inventions,

advantage and disadvantage and also models of the blockchain with

picture.
Acknowledgment
First of all, we thank Almighty Allah who praise us with the ability to

think, work and deliver this project perfectly. Secondly, we are privileged

to express our sense of gratitude to our respected teacher

Mr. AWAIS KHAN JUMANI who helps us in this project.

Synopsis
CHAPTER 1
INTRODUCTION
Introduced in 2009 as the core mechanism for the Bitcoin, Blockchain technology
enables the creation of a decentralized environment, where transactions and data
are not under the control of any third-party organization. Any transaction ever
completed is recorded in a public ledger in a verifiable, secure, transparent and
permanent way, with a timestamp and other details.

1.1 DEFINITION
if this technology is so complex, why call it “blockchain?” At its most basic level,
blockchain is literally just a chain of blocks, but not in the traditional sense of
those words. When we say the words “block” and “chain” in this context, we are
actually talking about digital information (the “block”) stored in a public database
(the “chain”).
“Blocks” on the blockchain are made up of digital pieces of information.
Specifically, they have three parts:
1. Blocks store information about transactions, say the date, time, and dollar
amount of your most recent purchase from Amazon. (NOTE: This Amazon
example is for illustrative purchases; Amazon retail does not work on a blockchain
principle)
2. Blocks store information about who is participating in transactions. A block for
your splurge purchase from Amazon would record your name along with
Amazon.com, Inc. Instead of using your actual name, your purchase is recorded
without any identifying information using a unique “digital signature,” sort of like
a username.

1.2 Advantages and Disadvantages

The blockchain is a new and revolutionary concept in technology that’s why more
techies are interested in it.
But it has its own Advantages and Disadvantages, so look at them one by
one.
ADVANTAGES.
1. It is a Decentralized System.
2. The Blockchain is Transparent.
3. The Blockchain is More Secure.
 4. Faster and Cost Effective.
5. It is Immutable.
6. It Can Record Historical and Current Records in One Place.
7. No Downtime.

8. User Empower.

Disadvantages.
1. Complexity.
2. Size of Blockchain.
3. Need More Resources.
4. Human Errors.

You already know blockchain is immutable therefore information going

into the database needs to be 100% sure and correct if any mistake
happens with data then it cannot be altered.

Also, most of the blockchain is access through Private Key if the

private key is lost then it is almost impossible to access the network,
so this technology needs more accuracy than any system.
CHAPTER 2
OPEN ISSUES
Some people in the blockchain industry have pointed out that blockchain has
become overhyped, when, in reality, the technology has limitations and is
inappropriate for many digital interactions.

But through research and development, success and failure, and trial and error,
we’ve learned the current issues and limitations of blockchains.

Complexity
Blockchain technology involves an entirely new vocabulary. It has made
cryptography more mainstream, but the highly specialized industry is chock-full of
jargon. Thankfully, there are several efforts at providing glossaries and indexes
that are thorough and easy to understand.

Network size
Blockchains (like all distributed systems) are not so much resistant to bad actors
as they are ‘antifragile’ – that is, they respond to attacks and grow stronger. This
requires a large network of users, however. If a blockchain is not a robust
network with a widely distributed grid of nodes, it becomes more difficult to
reap the full benefit.

Human error
If a blockchain is used as a database, the information going into the database
needs to be of high quality. The data stored on a blockchain is not inherently
trustworthy, so events need to be recorded accurately in the first place.

The phrase ‘garbage in, garbage out’ holds true in a blockchain system of record,
just as with a centralized database.

Politics
Because blockchain protocols offer an opportunity to digitize governance models,
and because miners are essentially forming another type of incentivized
governance model, there have been ample opportunities for public
disagreements between different community sectors.
 CHAPTER-3
SECURITY
 Is Blockchain Secure?
Yes, blockchain is innately secure. It utilizes powerful cryptography to give
individuals ownership of an address and the crypto assets associated with it,
through a combination of public and private keys, made up of combinations of
random numbers and letter. This solves the issue of stolen identity as addresses
are not directly associated with users’ identity, whilst also being far harder to
compromise. Private keys are even more secure as they are considerably longer.
It is in this way that blockchain offers a greater level of security to the individual
user as it removes the need for weak and easily compromised passwords and
online identities. However, in general it is particularly rare for an individual to
have their identity compromised by being hacked. Rather it is through some of
the biggest hacks, on the world's largest companies, that most personal
information is obtained by hackers. Countless international companies harvest as
much information about their users as possible to increase the effectiveness of
their sales teams. Yet this data is nowhere near as secure as it needs to be. These
large organizations often fail to secure its databases putting millions of their
customers at serious risk.
 Is a Private Blockchain More Secure than a Public One?
The practice of building a private blockchain to preserve security is a severely
misguided one. It is true that a private blockchain allows for the screening of
participants, whereas a public blockchain is essentially accessible to everyone.
However, it is this exposure that allows a public blockchain to develop immunity
to hacks. For example, Bitcoin is the original public blockchain, having withstood
years of relentless hacking without ever being compromised, getting more
resilient with every hack that it withstands. This epitomizes that public
blockchains, much like Lisk’s, are considerably superior than private blockchains.
 Can a Blockchain get Hacked?
No, a blockchain itself does not get hacked. The security of blockchain technology
should not be confused with news about hacks, such as those carried out
on cryptocurrency exchanges. Similarly, to normal hacks, the underlying
vulnerability allowing for hacks on exchanges stem from centralization. Despite
blockchain technology being decentralized, there are still centralized aspects of it,
such as cryptocurrency exchanges.
  Tips for staying secure online
1. Use a VPN to encrypt and hide your online activity.
2. Use two-factor authorization (2FA) wherever available, always download a
2FA app rather than using an SMS option.
3. Use a different password for each account.
4. Use strong, complex passwords, including numbers, symbols and different
cases.
5. Use a Password Manager. This makes the two previous points considerably
easier to do.

The security of blockchain has roots in the cryptography that it utilizes however it
is the technology’s decentralized nature that provides the foundations for its
security. In fact, it is this distribution and decentralization that has got most
people excited about the potential of blockchain technology.
 CHAPTER-4
BLOCK CHAIN MODULES

Blockchain Model Short Description

A model which uses utility token as a way to perform

different activities and provide an incentive to end
Token Economy users.

Blockchain as a Service BaaS is all about providing an ecosystem for other

(BaaS) companies to thrive and utilize blockchain technology.

Development Development platforms provides blockchain

Platforms technology stack to other organizations.

Companies develop blockchain based solutions and

Blockchain Based products in order to sell the solution to other
Software Products organizations.

A business model where network fee is charged from

Network Fee Charge the end users or other entities in the blockchain.

Blockchain Professional services related to blockchain such as

Professional Services dApp development, consulting, auditing, etc.

P2P Blockchain P2P based business model utilizes blockchain where

Business Model peers are able to execute direct tasks.
 CHAPTER 5
QUALITY OF SERVICE
Although the blockchain itself was originally created for the transferring of
financial value, blockchain technology is gaining popularity with non-financial
services applications. This is partially because of its potential to disrupt these
services that traditionally require intermediaries. We’re now seeing mainstream
banks, governments, and other companies experimenting with how they can use
blockchain technology in financial applications. More recently, blockchain has
shown its potential to be an efficient and secure way to transfer all kinds of
information imaginable. Some of these new applications include property
transfers, the execution of contracts, authentication services, network and device
management, and records management. Naviaddress is using this same
technology to create a unified, digital addressing system, which allows its users to
turn any physical address into a short, convenient digital address as well as create
a new physical address for places which don’t already have one. The resulting
string of digits, called a “Navi address” (an example for a beach hotel in California:
[1] 7103055) is accurate and easy to remember, communicate and share.
The left hand knows what the right hand is doing
The Naviaddress team is currently deploying its innovative addressing system on
the blockchain, because this virtually fail-proof technology will provide the
transparency, quality and efficiency of service needed to give users accurate
information. Addressing information stored on the blockchain will be more
reliable and transparent due to how information is placed on it.
Now for a bit of background on some of the technical details: Stakeholders
themselves create their own address entries and can view any changes made to
these entries at any time. As soon as data, a file, or a document is stored on
blockchain, a hash is automatically created. A hash is like a fingerprint that,
through an algorithm, turns data into an output of fixed length which is unique for
each transaction. So, all parties involved create a level of transparency, which
instills trust in what’s shared there. Thus, other parties can continue to maintain
the entries if any of the copy of blockchain is compromised. This makes the
blockchain immutable, meaning the entries cannot be altered or deleted.
Decentralized Authority
As mentioned, individual Navi addresses are created and stored on the blockchain
by the users themselves. This means that there is no central authority that grants
access or verification for the information. The users – who are the closest to the
data itself – have better control and supervision over the information shared.
Each address entry does not need to be reviewed by a hierarchical technical
support chain, which leads to quicker decision-making processes and information
being authenticated in shorter amounts of time. If an unanticipated problem
arises, like a typo with a house number or spelling mistake, users can immediately
update it with detailed corrections or additional information.
Effective Efficiency
All transactions are processed on the blockchain in a decentralized manner, 24
hours a day, 7 days a week or whenever convenient for users. Reduction of
transaction times is also the result of there being no head office to process
requests, so all users call the shots and work autonomously. By eliminating third-
party intermediaries and related overhead costs, transaction rates are increased,
and transaction costs are virtually non-existent. Not only can anyone check an
entry at any given time, but this verification can be done in a very transparent
manner. Lastly, blockchain projects generally have quick turnaround times, which
can be further reduced to minutes, lowering transaction costs.
Naviaddress, with the help of the blockchain, is creating a win-win situation for
users who want to reliably share their physical location details and for businesses
who need to find these locations accurately and efficiently. Getting what you
want when you need it and having peace of mind – that’s how Naviaddress is
changing the conversation about user-friendly addressing options.
CHAPTER 6
CONCLUSIONS
In less than a decade, blockchain has surged from a technology with narrow
applications related to digital currencies, to one with important applications in
many domains, drawing attention to
policy makers at different levels too. In spite of the evidences that blockchain
could solve some of the most pressing problems in business and society today,
there is a gap in turning many use cases into reality, particularly from a strategic
viewpoint.
The evaluation of the educational projects implemented by the author will make
possible conclusions for their extensions in other universities and for specific
recommendations related to blockchain technology adoption for the Romanian
Ministry of Education.
We believe that the fresh perspective over blockchain technology, policies and
projects, brought by this article, will be useful for educational actors and policy
makers in taking concrete steps to explore and to integrate blockchain in
institutional projects and curricula.
CHAPTER 7
References
[1] Armasu, L. (2018). Top 25 Cryptocurrencies By Market Cap. Toms's Hardware. Online at
http://www.tomshardware.com/picturestory/778-biggest-cryptocurrencies.html.
[2] Arnold, M. (2017). Blockchain-related job adverts surge. Financial Times. Online at
https://www.ft.com/content/e49e5310-4923-11e7-919a-1e14ce4af89b.
[3] Blechschmidt, B. (2018). Blockchain in Europe: Closing the Strategy Gap. Cognizant Report. Online at
https://www.cognizant.com/blockchain.
[4] Body, A. (2018). Blockchain: how to choose the right tech for your business. Online at
https://medium.com/@abody/blockchain-how-to-choose-the-right-tech-for-your-business-aa4597d7ee7c.
[5] Buterin, V. (2013). Ethereum White Paper. Online at https://github.com/ethereum/wiki/wiki/White-Paper.
[6] Buterin, V. (2017). The Meaning of Decentralization. Medium. Online at
https://medium.com/@VitalikButerin/the-
meaning-of-decentralization-a0c92b76a274.
[7] Coinify. (2017). 10 Universities That Offer Blockchain Courses. Online at https://news.coinify.com/10-
universities-blockchain-courses.
[8] Consensys. (2018). Blockchain Basics. A Curated Collection. ConsenSys Academy.
[9] De Novellis, M. (2018). Blockchain, Big Data Analytics & The 5 Hottest Topics On The MBA Curriculum In
2018. Business Because.
[10] DF. (2018). Discussion Paper: Virtual Currencies and Blockchain Technology. Department of Finance, Ireland.
[11] Dhillon, V., Metcalf, D., & Hooper, M. (2017). Blockchain Enabled Applications: Understand the Blockchain
Ecosystem and How to Make it Work for You. Apress.
[12] Esposito, M. (2018). This is how new technologies could improve education forever. World Economic
Forum
Report. Online at https://www.weforum.org/agenda/2018/03/education-catapult.
[13] Gorsline, E. (2018). What is Nebulas (NAS)? A Beginner’s Guide. Online at https://coincentral.com/nebulas-
nas-
beginners-guide.