DV
DV
DV
A Seminar Report
submitted in partial fulfillment of
the requirements for the award of the degree of
Bachelor of Technology
in
Information Technology
(APJ Abdul Kalam Technological University)
by
FARZEEN MUSTHAK T K (MES16IT006)
Certificate
This is to certify that the seminar report entitled “Person Locator Using GPS
Module and GSM Shield Applied for Children Protection" is a bonafide
record of the work done by FARZEEN MUSTHAK T K (MES16IT006), under
my supervision and guidance. The report has been submitted to the
Information Technology department of MES College of Engineering,
Kuttippuram in partial fulfillment of the award of the Degree of Bachelor of
Technology in Information Technology, during the year 2019
Acknowledgements
First of all I wish to thank everyone who helped in making this work a
success.
Abstract
Blo
v
Contents
1 INTRODUCTION 1
2 BLOCKCHAIN 2
2.5 WHOWILLUSETHEBLOCKCHAIN . . . . . . . . . . . . . . . 6
3 BITCOIN 7
3.1 PREREQUISITESOFBITCOIN . . . . . . . . . . . . . . . . . . . 7
3.2 BENEFITSOFBITCOIN....................... 8
4 GENESIS BLOCK 9
6 CONCLUSION 17
Bibliography 18
vi
Figures
INTRODUCTION
crime goes undetected [1]. Gartner report says cost of cyber-crime is expected to
reach 2 trillion by 2019. IBMs CEO, Ginni Rometty said that cyber crime is the
greatest threat to every company in the world at IBM Security Summit [2].
For example, smart home appliances competing with one another for
priority so that laundry machine, thermostats, dishwasher and smart lighting
run at an ap-propriate time to minimize cost of electricity against current grid
prices. Another example could be smart vehicles which can diagnose any
problem and schedule to pay for its maintenance.
Chapter 2
BLOCKCHAIN
For making any changes to the existing block of data, all the nodes
present in the network run algorithms to evaluate, verify and match the transaction
in-formation with Blockchain history. If majority of the nodes agree in favor of the
transaction, then it is approved and a new block gets added to the existing chain.
We can visualize Blockchain as vertical stack having blocks kept on top of each
other and the bottommost block acting as foundation of the stack. The individual
blocks are linked to each other and refers to previous block in the chain.
Blockchain technology (The gure 2.1 shows what is block chain technol-
ogy)is like the internet in that it has a built-in robustness. By storing blocks of
information that are identical across its network, the blockchain cannot:
Bitcoin was invented in 2008. Since that time, the Bitcoin blockchain
has operated without signi cant disruption. (To date, any of problems
associated with Bitcoin have been due to hacking or mismanagement. In other
words, these problems come from bad intention and human error, not aws in
the underlying concepts.)
The internet itself has proven to be durable for almost 30 years. Its a track
record that bodes well for blockchain technology as it continues to be developed.
checks in with itself every ten minutes. A kind of self-auditing ecosystem of a digital
voluntarily (in this sense, the network is decentralized). However, each one has an
incentive for participating in the network: the chance of winning Bitcoins. Nodes are
was the raison detre of the blockchain as it was originally conceived. Its now
age the database that records Bitcoin transactions. That is, Bitcoin is managed by
its network, and not any one central authority. Decentralization means the network
By storing data across its network, the blockchain eliminates the risks
that come with data being held centrally. Its network lacks centralized points of
vulnerability that computer hackers can exploit. Todays internet has security
problems that are familiar to everyone. We all rely on the username/password
system to protect our identity and assets online. Blockchain security methods
use encryption technology.
The basis for this are the so-called public and private keys. A public key (a
Bitcoins sent across the network gets recorded as belonging to that address. The
private key is like a password that gives its owner access to their Bitcoin or other
digital assets. Store your data on the blockchain and it is incorruptible. This is true,
although protecting your digital assets will also require safeguarding of your private
The blockchain potentially cuts out the middleman for these types of
the in-vention of the Graphical User Interface (GUI), which took the form of a
desktop. Similarly, the most common GUI devised for the blockchain are the so-
called wallet applications, which people use to buy things with Bitcoin, and store it
processes of identity veri cation. It is easy to imagine that wallet apps will
BITCOIN
execution output of SHA-2 algorithm called "hash" with an already known and
expected hash value. A hash algorithm converts a large volume amount of data
into a xed-length hash. And same data will always produce same hash but any
A. Authentication
B. Integrity
C. Non-Repudiation
The person who sent the message had to be in possession of the private
key and therefore owns the Bitcoins. The sender needs to sign the previous
hash and the destination public key.
The transactions made using Bitcoins wallets are fast and transaction fees
are minimal [4].
B. Decentralized Registry
Bitcoin currency is decentralized and no central authority has full control and
hence central government or banks cant take it away from you and there is no
charge-back. The Central Bank during nancial crisis in Cyprus wanted to take
back all uninsured deposits more than 100,000 in 2013 to help recapitalize
itself. But this is not possible with Bitcoins since currency is decentralized. C.
Secure Payment Information
Bitcoin transactions uses a public key and a private key. When a bitcoin is
sent, the transaction is signed by public and private keys together which
creates a certi cate.
D. Bitcoin Mining
GENESIS BLOCK
Genesis block is common ancestor of all the blocks and was created in
2009. It is encoded within bitcoin client software and cant be tampered. All the
node always knows the hash and structure of genesis block which is secure
root. The statically encoded genesis block can be seen inside the Bitcoin Core
client in chain-params.cpp. We can look for exact block
hash:000000000019d6689c085ae165831e93 72b3f1b60a8ce26f in the block
explorer websites to nd details of Genesis block, latest transactions and all the
newly created blocks with BlockHash, height, next block, size in bytes.
Chancellor on brink of second bailout for banks". The message was embedded in
the rst block by Bitcoins creator Satoshi Nakamoto. It o ers proof of date when
Genesis block was created which refers to headline of British newspaper The
Times. The donation for Genesis block was made by John Wnuk and Jayden
tographic algorithm to make sure only rightful owners have the access to funds.
When Bitcoin is sent, it creates a transaction message and attaches new owner’s
public ECDSA key. Each Bitcoin is associated with public ECDSA key of its
everyone that new owner of these coins is the owner of the new key [6].
Bitcoin kiosks are machines which are connected to the internet and
allow to deposit cash in exchange of Bitcoins given as a paper receipt or by
moving money to a public key on the Blockchain. Whenever a Bitcoin is sent, it
attaches the new owner’s public key and sign it with the senders private key.
The senders signature on the message veri es that the message is authentic
and transaction history is kept by everyone so it can be easily veri ed.
The public key can be shared with anyone but private key needs to be
kept secret. One participant can create multiple public key(Pk) and secret key(Sk)
pair. Bitcoin does not require third party as it publicly distributes the ledger
11
called Blockchain. The interested users in devoting CPU power to run a special
piece of software are called Bitcoin miners and they ultimately form a network
cryptographic algorithm to make sure only rightful owners have the access to funds
[6]. When Bitcoin is sent, it creates a transaction message and attaches new
owner’s public ECDSA key. Each Bitcoin is associated with public ECDSA key
of its current owner. A new transaction is broadcasted over Bitcoin network to
inform everyone that new owner of these coins is the owner of the new key.
Bitcoin kiosks are machines which are connected to the internet and
allow to deposit cash in exchange of Bitcoins given as a paper receipt or by
moving money to a public key on the Blockchain. Whenever a Bitcoin is sent, it
attaches the new owner’s public key and sign it with the senders private key.
The senders signature on the message veri es that the message is authentic
and transaction history is kept by everyone so it can be easily veri ed [5]. It
uses Public Key Cryptography Asymmetric Encryption algorithm and concept
of public and private keys to encrypt and decrypt data. If message is encrypted
using public key(Pk), then private or secret key(Sk) is necessary to decrypt.
However, when message is encrypted using private or secret key(Sk) then
public key(Pk)is necessary to decrypt.
All the computers running the software in network compete to solve cryp-
tographic puzzles which contains data from several transactions. The rst miner who
solves each puzzle get 50 new Bitcoins and the corresponding block of trans-actions
gets added to the existing Blockchain. The di culty level of each puzzle is directly
increases, the di culty level of puzzle is also increased to ensure production of one
algorithm which means the reward for mining Bitcoin block is reduced to half
12
after every 210,000 blocks. The block creation rate is adjusted every 2016 blocks
to ensure creation of roughly 6 blocks per hour. The number of Bitcoins generated
per block is set to decrease geometrically and it will reduce by 50 percentage every
210,000 blocks which is approximately 04 years time. The aim is to ensure number
else :
returnF alse
transactions because it requires just one signature from the owner. But Bitcoin
also supports complex transactions which require signature of more than one
with N private keys and requires signatures from at least M keys [7].
and veri cation to protect against double spending. The transactions are validated
window before they are con rmed which is an issue since speedy transaction is
expected from digital currency in the modern world. But using marker address also
called as green address approach we can reduce the time taken for con rmation of
Bitcoin transaction. The marker addresses use Bitcoins own communication channel
and parties can establish trust sine a receiver is already waiting for an address to
send money. Pay to script hash (P2SH) transactions is supported by Bitcoin which
allow transactions to be sent to a script hash instead of a public key hash. The
recipient must provide a script matching to the script hash to spend bitcoins sent via
P2SH and the data which makes script evaluation true. We can send bitcoins using
P2SH to an address that is secured. The bitcoins can be sent to 34-character P2SH
These applications run on a custom built Blockchain which enables to store reg-
istries of debts or promises and move funds without requiring a middle man or
Ethereum Virtual Machine (EVM) which can execute peer-to-peer contracts using
pre-sale during 2014 and developed by a Swiss nonpro t group called Ethereum
Foundation. Blockchain based DNS and Blockchain based internet could be future.
The DNSChain o ers a free and secure decentralized alternative while remaining
2016 are Blockchain, Smart machines giving transparent immersive experiences like
4D printing and Internet of Things (IoT) leading to perceptual smart machine age
technology which will help to expand and enhance its equity management capabil-
ities. They will initially leverage Open Assets Protocol which is a Bitcoin based colored
coins implementation. Bit nex is Hong Kong based worlds leading Bit-
15
coin exchange which one of the most advanced cryptocurrencies exchange o ering
margin trading, advanced order types margin funding for low-risk returns.
test blockchain network to write applications and deploy chain code immediately
[7]. They are using Blockchain technologies to update and maintain land reg-
istry records to prevent corruption since once land records are veri ed it can’t
be tampered.
support Ethereum-related projects. DAO has received over 50m worth of digital
token called ethers (ETH) from investors. People supporting DAO receive voting
in the voting and decision making process receive dividends for supporting the
project.
Chapter 6
CONCLUSION
data and information is always a risk. Blockchain have potential to reshape the
capital markets industry with impact on business models, reductions in risks, cost
and capital savings. The adoption of Blockchain technology will have signi cant
stitutions and ensure more precise audit trails. Seventy percent of early adopters
surveyed are prioritizing Blockchain e orts to reduce barriers in creating new busi-
ness models to reach new markets. The seven out of 10 early adopters surveyed
in nancial market institutions have Blockchain e orts focused mainly on four ar-
eas: clearing and settlement, equity and debt issuance, wholesale payments and
reference data. The device cost is decreasing and computing power is increas-ing
[1] Sachchidand Singh, Nirmala Singh. "Blockchain Future of Financial and cyber
security", 2016 2nd International Conference on Computing and informatics.
[3] http://adilmoujahid.com/posts/2018/03/intro-blockchain-bitcoin-python/
last access on 11/10/2018
[6] How Consensus Algorithms Solve Issues with Bitcoin’s Proof of Work,
http://www.coindesk.com/stellar-ripple-hyperledger-rivals-bitcoinproof-
work. last access on 23/09/2018