Blockchain Testing

Testing Practice @ Qtek Systems

Authored by: Jayachandra Parasu

Vishwanatha Reddy

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1. Overview - Blockchain Technology
This white paper talks about Blockchain technology and test approach with effective
methods and tools available for testing the Blockchain applications.

1.1. What is Blockchain?

Blockchain is the technology or platform which can be used to secure, store, and manage
data in a decentralized and cryptic format which addresses the current concerns or challenges
of trust or data breach between B2B, B2C, and C2B entities.

1.2. Why Blockchain?

Imagine someone is checking into a hotel and if the hotel blocks their credit card for the
amount of total stay and the current block on credit card can be removed only after check-out. Is
it required? Yes, as there is a lack of trust between the customer and business. This can be
addressed through Blockchain and there is no need for blocking the amount unnecessarily or
reaching out to the central bank to check the card. Similarly, an Import & Export company
needn’t perform SWIFT transfers as the bank provides a guarantee until the goods reach the
importer. This can be addressed through Blockchain’s decentralized ledgers and transactions can
be stored using cryptography and by making payments in real-time.
A recent study by the World Economic Forum estimates that 10% of the GDP will be in
Blockchains or Blockchain-based technologies by 2025. With this data, Blockchain technology
can be perceived as the future, and every business should assess if it can be leveraged for their
business growth. Blockchain is a highly secure and encrypted digital ledger, which is in the form
of a chain of blocks, and these blocks are linked to each other through cryptography.
This cryptography involves a hashing function, which is the process of producing a
unique key value on inputting a value into the hash function. Each block in the blockchain will
have a unique hash value and every block will have the hash value of the previous block to stay
connected. Blockchain was designed originally for digital currencies such as Bitcoin, but later its
benefits led to its usage in recording not only financial transactions but, virtually everything of
significant value.

Fig 1.2 – Why Blockchain Technology – in a Nutshell

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 1.3. What is it used for and how?
Blockchain is used mainly by financial and automotive industries because of its secure
nature of business. This technology supports cryptocurrencies like Bitcoin and Ethereum. The
following diagram will help illustrate how the transaction works in blockchain technology.

User/Business Block Representing The Block is notified

Requests the Transaction is to all the nodes in
Transaction Created the network

The transaction gets All nodes validate

The block is added
verified and the block and the
to the chain
executed transaction

Fig 1.3 – How Blockchain Works

2. Current QA Approach - Blockchain Technology

Due to the change in technology, testing the applications developed based on
Blockchain technology comes with numerous challenges. In addition to traditional testing and
validation like Functional Testing, Non-Functional Testing, Performance Testing, Security
Testing, and Integration Testing, we need to have specialized capabilities like Smart Contract
Testing, Peer/Node Testing, own Mathematical & Cryptographic skills, and industry-leading
tools.

2.1. Verification & Validation

A blockchain is usually present in a decentralized network of nodes, where the nodes
are high configuration computer systems. Every node present in the decentralized network has
a copy of the blockchain transaction history, and the verification process in the blockchain is a
consensus mechanism based process. For verifying a new transaction and creating a new block
for it, all the nodes must receive input values that they cross-verify against specific available
data.
Due to its nature, and all the different entities that the blockchain system involves for its
operation like a large number of nodes, different encryption techniques must be followed for
the interaction between nodes sharing the transactional data. Validating all these various entities
is a must for ensuring that the developed blockchain ecosystem is functioning as expected.

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 2.2. Testing Types

Functional
Testing

Performance Blockchain Integration

Testing Application Testing

Security
Testing

Fig 2.2 – Testing Types – Blockchain Application

2.2.1. Functional Testing
Functional testing plays a vital role in assessing the business circumstances and
effectiveness of use-case scenarios. The following are the key considerations for performing
functional testing in blockchain applications:
Block Size: Each block in a blockchain has a memory size in megabytes, and it was
reduced to 1MB from 36MB for security reasons. Testers must focus on scenarios like if the
transaction data stored in each block exceed 1mb, what encryption techniques should be used
to connect these blocks, and similar complex scenarios.
Data Transmission: Data loss during transmission between blocks must be tested, as the
main architecture of block chain revolves around data transaction and security.
Adding a block: The blocks which get added to the chain must be carefully evaluated, as
once they are added to the chain they cannot be altered.
Smart Contract: Making sure that the parties involved in transactions are adhering to the
rules of the smart contract will ensure the smooth functioning of the blockchain application.
Node Testing: All the diverse nodes present on the network must be tested independently
to ensure their smooth functioning.

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 2.2.2. Integration Testing:
As blockchain is an ecosystem which comprises of different components, and all those
components must be connected. Also, it’s crucial that the different APIs associated with these
components are tested for their compatibility with each other.

2.2.3. Performance Testing:

Performance testing in blockchain is significant from the perspective of number of
transactions and the transaction size being tested for the performance of a block, or an
application being prepared to be deployed to production. Other significant and dependent
parameters include network, sequence of transactions at each node, transaction processing
speed, and user and system interface along with the responses required from smart contracts.
Testing the size of the network and its ability to process transactions is critical, as it allows
us to identify hardware and software bottlenecks before deployment, and also the cost incurred
on running the application on cloud or any other suitable environment. The end-to-end
scenarios are considered for overall performance of the blockchain environment.

2.2.4. Security Testing:

The agenda here is to guarantee that blockchain applications are tested extensively to
identify if they are vulnerable to attacks, and if the authorization and authentication systems are
credible.
Security testing additionally considers the other significant angles, for example,
confidentiality, integrity, non-denial of services, availability etc. Security testing ends up being
significant in case of hacking of identity layer of the blockchain application.
Transactions which are in progress during the event of detection of identity layer hack
can't be halted immediately. Thus, security testing should be performed to reveal all such
potential identity layer hacks.
Security testing of blockchain (crypto currency-based) applications also include
challenges or testing of components such as wallet signatures methods, private keys, consensus
algorithm, and application platform dependencies.
The other significant factor for security testing is that fraudulent transactions are
irreversible as transaction reversal is nearly impossible in blockchain technology.

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3. Recommended QA Approach
The determination of the correct testing tool for testing blockchain applications is a vital
step for effective and successful testing.

Identify the
Identify the Deploy Tool,
Identify the Right Test Tool
Critical Test Test & Stabilize
Platform (Manual &
Points Application
Automation)

Fig 3 – Critical Phases – QA Approach

4. Tools, Accelerators, and Business Benefits

4.1. Tools
The following are a few tools that help in testing blockchain applications and guarantee
that they are functioning properly.

Blockchain Tool / Tool Capabilities / Details

Framework
Ethereum Tester Ethereum, one of the most utilized platforms for building blockchain
apps, and is packed with tools that can facilitate both app development
and testing.

Ethereum Tester is reliable for Web3 Integration, API, Smart Contracts,

Backend, and several other blockchain tests. Testnets (Ropsten, Kovan,
and Rinkeby) simulates production like blockchain (where your real Ether
and tokens reside). This helps both developers and testers to simulate.
Ganache (Testrpc) This tool is mainly used to test Ethereum contracts locally. It creates a
simulation of a blockchain that allows anyone to use multiple accounts
for testing. Since the test results are from a simulation and not a live
event, the test results will be satisfactory but not perfect.
Hyperledger Composer It is an open-source tool that allows you to model and test your blockchain
network with a minimal set of tools like Docker and a browser. It’s done
through Hyperledger Composer, which facilitates blockchain
development with a modeling language, a UI, and a CLI. It allows
automated system tests, interactive testing, and automated unit tests.
Exonum Testkit Testing the activity of the entire service of the blockchain application is
the specialty of Exonum Testkit. The tool allows us to do API testing and
transaction execution without the need of the network operation and
consensus algorithm.
BitcoinJ This is an open-source Bitcoin client library, built using Java and
implements the Bitcoin network protocol. It can maintain a wallet,
send/receive transactions without needing a local copy of Bitcoin Core,
and has many other advanced features. Though it’s developed in JAVA, it

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 can be used from any JVM compatible language like Python, JAVAScript,
etc.
Populus Populous is a peer-to-peer invoice platform. It makes use of blockchain's
distributed ledger technology to provide a global trading platform for
invoice financing. Invoice Finance is a form of funding that instantly
unlocks the cash tied up in outstanding sales invoices. Business owners
allow invoice buyers to buy invoices at a discounted rate to unlock their
cash quicker.
Manticore This tool is used to perform security testing on blockchain applications.
Manticore is a symbolic execution tool for analysis of binaries and smart
contracts.
Corda Testing Tools Corda is a blockchain-based and open-source distributed ledger
platform. It has a built-in testing feature to help with:
 Writing contract tests
 Integration testing
 Writing flow tests
 Load testing
Embark Framework Embark is a framework for building, testing, and deploying a blockchain
app. It allows to develop and deploy decentralized applications.

A decentralized application uses one or more decentralized

technologies. Embark currently integrates with decentralized storages
(IPFS), EVM blockchains (Ethereum), and decentralized communication
platforms (Whisper and Orbit). Swarm is supported for deployment.
Truffle Truffle is a very familiar tool for Ethereum developers with a variety of
testing features, including automated contract testing. This framework
has functionality beyond just testing and worth adding to the testing
toolbox.
4.2. Accelerators
We can leverage the following test scenarios and reduce the effort in test design.

Block_Chain_Stand
ard_Test_Scenarios.x

4.3. Business Benefits

Proper identification of manual & automation test tools can save 30% of the test execution effort.

5. Potential Use Cases

Large Syndicate Loans to Corporates/Individuals Claims Processing in Insurance Industry
Import/Export Transactions Underwriting in Insurance Industry
Cross Border Transactions Healthcare Policy Issuing
Cryptocurrency Payments Mobile Wallets and Money

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