Capital University of Science & Technology

Department of Software Engineering

Zohaib Ahmed (BSE203017)

Name Moiz Ahmed (BSE203146)
Muhammad Hassaan (BSE203193)

Course BlockChain Technology

Section 02

Due Date 11th June, 2024

Assignment # 04
Question # 1
Evaluate the potential of blockchain technology across various industries. Identify at least eight
distinct use cases and analyze the following for each:
 The specific problem or challenge addressed by blockchain.
 The key functionalities of blockchain that enable solutions.
 The potential benefits and impact on the relevant industry.

Answer:
Blockchain technology is now being used in various industries and have a great potential in
improving the limitations and problems. Following are some applications of blockchain
technology:

1. Logistics and Supply Chain Industry

Supply chains are becoming increasingly complex with many players involved requiring
large numbers of contracts payments tracking and communications. Blockchain is one such
technology predicted to help better connect the many players and handoffs within the industry
bringing efficiency to the many disjointed elements in any one specific supply chain.

Problems:
Due to increase in the complexity of the supply chain industry, we are facing many
problems including lack of transparency and traceability, which is leading to inefficient
operations, fraud/attacks, and difficulty in tracking or tracing the origin of the product.
Functionalities enabling Solutions:
Blockchain in the logistics industry will likely be used in distributed ledger which could
provide better transparency throughout the lifetime of a shipment. Blockchain data is
decentralized unable to be changed once created thus, creating a more secure and transparent
information pathway that would follow a shipment from origin to destination. Due to this
decentralization, it is unlikely a system could be distributed due to a localized failure or attack
implication could mean quicker processes lower transactional cost and more secure and reliable
data exchange within the industry.
Benefit and Impact:
By implementing the blockchain technology in supply chain and logistic industry, we can
ensure the increase in consumer trust and reduce the losses due to counterfeit products and
inefficient tracing.

2. Voting System
The traditional voting system is here since decades and causing a lot of troubles such as
counting on manual voting is a tedious process and very time taking, may also involve human
errors in counting process. The electrical voting system was introduced to overcome this problem
but it has its security concerns since then.

Problems:
When we consider traditional voting system which is prone to human errors, and if we consider
the electronical voting system then, we have lack of transparency, susceptibility of fraud.
Similarly, the cost of traditional voting system becomes a huge problem as a large amount of
money is spent on voting system. And the chance of forgery is at a greater extent. The problem
of voting when a person is out of town, or abroad, or away from voting place. There is also an
issue of long queues to vote.
Functionalities enabling Solutions:
Blockchain technology can be used to implement an electronic voting system that is immutable,
transparent, and cannot be hacked. With the help of blockchain we can have a voting system
that has a transparent ledger system, cryptographic security using the concept of public and
private key concept and a decentralized network where no single authority is controlling the
process.
Impact and Benefits:
The implementation of blockchain technology in voting system will enhance the voter
confidence in the integrity of elections. It will reduce the potential of fraud and increase the
transparency and security of the process. It will also help a country deal with the financial
problems of elections.

3. Healthcare and the life sciences

With the help of blockchain technology the healthcare industry can be revolutionized by
providing a transparent and secure way to manage the records of patients and medications.

Problems:
The main problem in healthcare industry is the distribution and storage of records, for example,
the medical records are fragmented across various healthcare providers. Managing the record of
the patient securely and efficiently sharing the record across is a big problem in healthcare
industry this possess not only the security concerns but also health problems that can be life
threatening.
Functionalities enabling Solutions:
With the help of blockchain technology the data can be decentralized making it secure and only
accessible to authorized personals. The tempering of data is also resolved using blockchain
which maintains the integrity and accuracy of medical records.
Impact and Benefits:
Efficiently and securely sharing of patient record to the respective authorized persons can help
improve patient care. It can reduce administrative costs and errors. It will also increase the
interoperability and data standardization across healthcare system.

4. Finance and Banking

The financial transactions and banking industry is a crucial part of an economy. Blockchain
technology has significant potential in transforming the banking and finance industry through
more efficient and cryptographically secure way of handling the transactions.

Problems:
The problem with traditional financial system and banking is high transaction costs and fees,
delays in transactions, risk of fraud and cyberattacks, and lack of transparency, no track of illegal
use of money, and cross-border transaction is another huge issue.
Functionalities enabling Solutions:
The blockchain technology can help in financial transactions by implementing a decentralized
ledger system. This could help in making transactions transparent and temper resistant.
Similarly, smart contracts can be implemented to automate the financial agreements which
eliminates the system of having central authority. Prevention of fraudulent activities with the
help of cryptographic security.
Impact and Benefits:
By implementing the blockchain technology in finance and banking industry we can significantly
reduce the transaction time and cost, especially when there are international transactions are
involved. This could reduce the risk of hack/fraud increasing the security of the system. It will
also increase the transparency and eliminates the need of central authority.

5. Real Estate
One of the largest asset classes is the real estate. With the help of blockchain technology the
commercial enterprises and the professionals of real estate are figuring out the importance
optimizing retail and commercial property sales, manage the process of payments efficiently, and
increase access to funds and investment opportunities in real estate.

Problems:
The problem of having lengthy and complex property transactions. And there are issues and risks
of forgery and fraud in property ownership records. The lack of transparency in buying and
selling process is another major problem. The brokers might take high cost or profit margins.
Functionalities enabling Solutions:
The blockchain technology helps in creating the temper-proof record which ensures that the
property ownership records are secure. It also helps us in implementing the smart contract so to
automate the property transactions process reducing any intermediaries. The transparent ledger
system allows transparent records of property transactions and is accessible to all the parties that
are involved in the process. The decentralization process reduces the reliance on any centralized
authority which help us lower the cost and increase the efficiency.
Impact and Benefits:
As we are implementing blockchain technology which increase the efficiency of transactions
hence it can prove to be a faster and more convenient way of transactions. The security is
enhanced as the ledger is distributed across the network not allowing any third party or
fraudulent person to tamper with the data/record. This greater transparency allows to have trust
in the real estate market.

6. Government and Public sector

The government operations and public sector services such as national identification system and
handling people records can also be transformed using the blockchain technology which would
create efficient, enhancing transparency and security in these sectors.

Problems:
In government and public sectors, we have a lot of different categories having various problems
such as, if we look at public record management then, there is data integrity, transparency issues.
Similarly, if we take a look at digital identification system then, there are theft issues along with
verification issues (Slow process of identity verification etc.). In land registration we have
tampering problems with fraud and dispute, and lack of transparency issues.
Functionalities enabling Solutions:
With the help of blockchain technology these factors that are considered to be at greater risk in
government and public sectors industry can be resolved with an ease. The problem of temper
able records, fraudulent activities, central body control, transparency issues, and security issues
can be resolved with it using various processes in blockchain such as implementing the
cryptographic security system, distributed digital ledger system, introducing the Smart Contracts
to automate the process and so on.
Impact and Benefits:
The impact of implementing blockchain technology in this industry will make sure the data is
temper-proof in public record management, decentralized, and transparent as there is a
distributed ledger system. This way the data integrity can be ensured and the processes will be
executed more efficiently in less time. In digital identity management the improved security will
allow less risk on personal data thefts and efficient verification system will make sure the
authorized user have access and control over the process. In land registration system the
fraudulent activities can be tracked down as the ledger is temper-proof.

7. Charity and non-profit organizations

When we consider the non-profit organizations then the donation is mostly based on trust. This
trust is needed to be built by the organization among doners. The tracking/tracing of where the
donation is made is a crucial part and require a complex solution that is where blockchain
technology can help make it transparent and fully traceable and immutable.

Problems:
Lack of transparency and accountability in the use of donated funds, can lead the doner in
skepticism and can cause a loss of trust. Similarly, a lot of donations are mostly spent on the
admin costs instead of the cause. Moreover, the complex funds transfers cause process to slow
down.
Functionalities enabling Solutions:
Blockchain technology can offer transparent and temper-proof records, so that the doner can
trace back or track their donation record. The implementation of smart contracts ensures funds
are used properly as they are intended for, automating conditions. The decentralization
eliminates the need of a central authority which will help reduce the cost. Its security system
through cryptographic functions will help prevent fraud, and speed up the transactions.
Impact and Benefits:
The use of blockchain technology in charity and non-profit organizations will boost the trust and
potentially increase donations, because the donors will be able to see where their money is going.
As there is no central authority required in decentralized blockchain so the cost of admin will be
reduced. It will significantly reduce the risk of fraud, and endures quick aid distribution.

8. Internet of Things
One of the most growing fields is Internet of Things, in which devices are connected to perform
some tasks on small and large scale. Blockchain technology can help improve some of its down
sides and make it more efficient and productive.

Problems:
The main issue of connected devices on larger scale is the threat of attack, and scalability of the
network. A single attack on the network can cause big trouble to the whole system.
Functionalities enabling Solutions:
Blockchain technology can help improve the security problems using cryptographic system. We
can also implement smart contracts to automate the process resulting in faster process execution.
Impact and Benefits:
The benefits of implementing the blockchain technology in IoT are security improvements where
data become tamper-proof, and communication among devices can take place ensuring the
integrity. This enhanced system can also make sure that the data is scalable and proper tracing
can also be accommodated.

Question # 2
CUST is planning to issue a verifiable digital transcript to all students after the results are
compiled
and certified by the controller exam. The transcript can be stored in a digital wallet of the
students.
You are asked to design a blockchain-based system for issuance of transcript and degrees. You
may want to consider the following in your design:
1. Blockchain Technology, preferably Hyper Ledger Fabric.
2. All the key stakeholders in CUST shall be part of the Blockchain network: Registrar
Office, Controller Exam, Dean and Head of the Department.
3. The logic for smart contract that keeps track of the submission of all results by
instructors from their respective client applications to the respective Head of the
Department (HoD). The collected results of all the subjects for all the students shall
then go the Dean and then to the Controller Exam. After Controller Exam Office
verifies the result, these are added in the distributed ledger as a new block in the
blockchain.
4. A smart contract checks a number of conditions, like holds, and then issues a verifiable
digital transcript to each student’s wallet on their request.
Answer:

Student Keys:
Public Key:
8342a2985d1bc3c49cbc1034ec6d5a09e56832e2bb0c8d48b9ab723d8cebbed9
d4cd2909005dfbf9cf90228b960eda2073b427186259e6f6c28e123a832da4c1
Private Key:
33ca1ce1450b6968aff6bbe645cab795e40002e3d6ad932938a8dec04e53cdcf
0f1bec10f3ba950acd82ba39074bf0a3e7e6e97dfea6efd5976b1389ae469381
Digitally Hashed Transcript:

Hash Value: e67d88408c0919eb2a0203d57721a51ccc91a658d0f7d11d2e86f627c7fa8526

Transcript: Software Project Management 3.0 11.01 A-

Business Process Engineering3.0 12.0 A
Software Re-Engineering 3.0 11.01 A-
Design Project (Part-I) 2.0 7.34 A-
Financial Accounting 3.0 12.0 A
Internet of Things 3.0 9.99 B+
Volunteer Services Credit Hours 0.0 0.0 S
Digital Signature:
Name: Zohaib Ahmed
CNIC: 34402-1776936-9
Encryption Result (hex):
7f38cec2c4f738bcba51191fed997e36b335f63964872cf5ca0150042552169d
01ffd0afddd7b54310b84ef15cc30e6a646fe61e717814ac76f21a42189f01b0
Signing Hash with CUST public key:
Encryption Result:
3ae4bb956f09ba365a4e11b548eab42f8350b9589371acfbee95cb85925c57bf
fc187cd70fb1ce1287a9a81887731424e92e52e1c57138c45aa13956d3ecbb2d
263b02db1d7da94b7daa87e7c5b0cc3a62154a6983c685f77683b2b7af8f4ff2
9fb1eaee4235cba5c20ffe16d92cc8d882b0d317b4f379007a739f36d3890fd1
d31efd8311c0b752ae2040a3da5d1ae354fd76f66cbad403fe3b81029da49e8e
25bcc772261ba85aba2abda32a77b1fdeb8fbc3ce20507d3f85749391001ee1f
687acb5004156d9337a8b1733d8ccd02aa409ad77e1f8ecfd81ea24acf9d7ba9
8d91f7d1a08f6394e3537382b6fe1b04609a548edb9141b016c234802e5a5564
a6
Question 03:

3a)
Certificate Authority:
1. Root CA (HEC): Issues digital certificates to HEIs.
2. Institute Cas (CUST, FAST, NED, NUST): Issue digital identities to graduates
Order:
Manages the order of transactions and create blocks.
Channels:
1) Each institute has its own channel (e.g. CUST, FAST, NED, and NUST channels)
2) HEC channel for communication with registrar office peers of each institute.
Ledgers:
1) Ledger for each institute.
2) HEC Ledger
Peers:
1) Endorsing Peers: HoD, Dean and Registrar office.
2) Committing Peer: Student Affairs office
3) HEC degree attestation peer.
Smart Contracts:
Executed on endorsing peers for degree verification.

3b)
Sequence of Flow:
1) Client Application Request: Student initiates a degree verification request.
2) HEI Validation:
a. HEI checks if student has paid all dues.
b. If conditions are met, the request is endorsed.
3) Endorsement: Endorsing peers digitally endorse the transcript and degree.
4) Transmission to HEC: Endorsed documents are sent to HEC degree attestation peer.
5) HEC Verification: HEC Verifies program accreditation and student entrance request.
6) HEC Degree Attestation: HEC affirms its digital signature on transcript and degree.
7) Transmission to student: Degree is sent back to respective HEI for onward forwarding
to student.
3c) Endorsement Policy:
The endorsement policy may require a majority (e.g. 2 out of 3) of endorsing peers to endorse
the transaction for it to be considered valid.
3d) Double spending problem:
In a blockchain system like Hyperledger fabric, double spending is not a significant
concern as each transaction is recorded in block and added to the ledger in a sequential
and temper-proof manner.
3e)
In my opinion there can be 3 smart contracts.
1. Smart contract for endorsement:
function verifyDegreeRequest(request):
if not checkDues(request.studentID):
return "Dues not cleared"
if not checkAcademicStatus(request.studentID):
return "Academic deficiency"
if checkHolds(request.studentID):
return "Holds on student account"
endorseRequest(request)
return "Endorsed"

2. Degree Issuance smart contract:

function issueDegree(request):
signedDegree = signDegree(request.transcript, HEI_CA)
sendToHEC(signedDegree)
return "Degree sent to HEC"

3. HEC Verification Smart Contract:

function verifyAndSignDegree(degree):
if not checkAccreditation(degree.programID):
return "Program not accredited"
if not checkEntranceRequirements(degree.studentID):
return "Entrance requirements not met"
signedDegree = signDegree(degree, HEC_CA)
sendBackToHEI(signedDegree)
return "Degree verified and signed"