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Blockchain Architecture Design Unit 5 Easy Notes

The document discusses the benefits of blockchain technology in the government sector, highlighting its potential to enhance transparency, security, and efficiency in public services, including digital identity management and land record management. It outlines existing problems with traditional systems, such as centralization and lack of user control, and explains how blockchain can address these issues through decentralized storage and user ownership. Additionally, it covers various use cases of blockchain in sectors like health, voting, and public distribution systems, emphasizing its role in reducing fraud and improving service delivery.

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0% found this document useful (0 votes)
138 views49 pages

Blockchain Architecture Design Unit 5 Easy Notes

The document discusses the benefits of blockchain technology in the government sector, highlighting its potential to enhance transparency, security, and efficiency in public services, including digital identity management and land record management. It outlines existing problems with traditional systems, such as centralization and lack of user control, and explains how blockchain can address these issues through decentralized storage and user ownership. Additionally, it covers various use cases of blockchain in sectors like health, voting, and public distribution systems, emphasizing its role in reducing fraud and improving service delivery.

Uploaded by

shivadubey2002
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Blockchain Design (BCS063)

Unit- 5 Use Case 3

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Blockchain Design (BCS063)

✅ Benefits of Blockchain in Government Sector :


1. 🔒 Transparency
• All transactions or records are visible to authorized people.
• Government officers can’t secretly change or hide records.
• Citizens can trust the system because everything is recorded clearly.
📌 Example:
If the government distributes 1000 kg of rice for ration, blockchain will show who received it,
when, and how much — no hidden action.
2. 🔐 Security
• Blockchain uses cryptography (secret coding) to protect data.
• Data once written cannot be deleted or changed — it becomes tamper-proof.
• Helps to stop hacking or corruption in sensitive areas like land records or pensions.
📌 Example:
If someone tries to change a land ownership record, blockchain won’t allow it — original
record stays safe.
Blockchain Design (BCS063)

3. 🏛️ Efficient Public Services


• No need for paperwork or waiting in long queues.
• Government processes (like applying for a license, subsidy, or land record update) become
fast and digital.
• Less time, less money, less corruption.
📌 Example:
Instead of visiting many government offices to check land records, citizens can check online in
seconds.
4. 👨👩👧👦 Better Welfare Delivery
• Ensures that only the right people get government benefits like pension, subsidy, or
scholarship.
• Stops duplicate or fake entries.
• Improves Public Distribution System (PDS) — food, gas, etc.
📌 Example:
Poor families get ration only if their digital identity is verified — no fake beneficiaries.
Blockchain Design (BCS063)

5.Permanent and Auditable Records


• Blockchain stores permanent digital records of everything.
• Government can easily track back any issue — useful during audits or complaints.
• No data loss or record tampering.
📌 Example:
If a pension payment is missed, government can quickly trace the last transactions and find
the issue.
6. Trust Between Government and People
• Since records are open and safe, citizens start trusting the system more.
• Helps in clean governance and reducing bribery or fraud.
📌 Example:
People trust election results more if votes are recorded on blockchain.

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Blockchain Design (BCS063)

Blockchain brings transparency, security, speed, and trust to government services.


It helps in fighting corruption, improving welfare schemes, and making public services digital,
efficient, and trustworthy.
With tamper-proof records and easy data sharing, blockchain is a strong tool for good
governance.
Blockchain Design (BCS063)

✅ Problems with Existing Digital Identity Management Systems :


Even though we use Aadhaar, PAN, voter ID, etc., for digital identity, there are still many
issues:
🔻 1. Data Stored in Centralized Servers
• All identity data is stored in one central location (like Aadhaar servers).
• If it gets hacked or corrupted, millions of identities are at risk.
📌 Example: If Aadhaar server is attacked, all linked data (bank, phone, PAN) can be
misused.
🔻 2. Lack of User Control
• We don’t have full control over our identity.
• We share more data than necessary (like PAN + Aadhaar + phone) to prove identity.
📌 Example: To get a SIM card, we share Aadhaar, which reveals address, photo, number
— even if not all are needed.
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Blockchain Design (BCS063)

🔻 3. Risk of Identity Theft


• If someone knows your Aadhaar or other details, they can misuse it.
• It is hard to detect or stop fraudulent usage.
📌 Example: Scammers use stolen Aadhaar to open fake bank accounts.
🔻 4. Duplicate or Fake Identities
Centralized systems can have duplicate records, fake entries, or non-updated data.
📌 Example: One person gets two ration cards by mistake — creates confusion and
fraud.
🔻 5. Low Interoperability
• Every department (health, finance, education) has separate identity records.
• Data mismatch happens, and it wastes time for verification.

Now let discuss how blockchain solve these problems :


Blockchain Design (BCS063)

✅ How Blockchain Solves These Problems:


🔒 1. Decentralized Storage
• No central server — identity is stored across many nodes.
• Harder to hack, more secure.
👤 2. User Ownership & Control
• You control your identity.
• You decide what data to share and with whom (Selective disclosure).
🔍 3. Transparent and Tamper-Proof Records
• Once identity is recorded on blockchain, no one can change or fake it.
• Helps in verifying the true identity quickly.
✅ 4. Single Digital Identity for All Services
• One blockchain-based ID can be used for bank, hospital, school, etc.
• No need to submit documents again and again.
Blockchain Design (BCS063)

🔁 5. Interoperability Across Departments


Government agencies can verify your identity in real-time without asking you to upload
the same documents again.

✅ Use Cases of Blockchain in Identity Management


🔹 1. Self-Sovereign Identity (SSI)
You own and manage your identity.
Example: Using a digital wallet to show only your college ID when required.
🔹 2. eKYC (Electronic KYC)
Banks or telecom companies can verify your identity instantly without asking for
photocopies or OTPs.
🔹 3. Passport & Immigration
• Blockchain can link your travel history, visa, and documents.
• Makes international travel smoother.
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Blockchain Design (BCS063)

🔹 4. Student Identity
• Schools or universities issue blockchain-based IDs.
• Can be used for scholarships, job applications, and further studies.
🔹 5. Voter ID and Elections
Blockchain can help in safe and transparent digital voting using verified digital identities.

Traditional digital identity systems are centralized, risky, and hard to manage.
Blockchain offers a secure, user-controlled, tamper-proof identity system.
It solves problems like fraud, duplication, and poor control and is useful in banking, eKYC,
education, and voting.

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Blockchain Design (BCS063)

📚 What is Land Record Management?


It means keeping records of who owns which land, including details like size, location,
boundaries, ownership history, and transactions (buy/sell).
👉 Simple Example:
Ravi buys land from Amit. The government officer updates records on paper or a local
database that Ravi now owns it.
❌ Problems in Traditional Land Record System:
1. Manual & Paper-Based
➤ Records are kept in physical form, which can be lost, damaged, or changed.
2. Corruption & Land Fraud
➤ Officers can manipulate records or issue fake ownership.
3. Disputes & Ownership Issues
➤ Same land sold to multiple people due to unclear records.
4. Slow Updates & Lack of Transparency
➤ It takes days or weeks to update changes. People can’t track updates easily.
Blockchain Design (BCS063)

5. No Easy Access
➤ People must visit government offices to get land records or ownership proof.

✅ Role of Blockchain in Land Record Management:


🔹 1. Permanent & Tamper-Proof Records
➤ Once land ownership is recorded on blockchain, no one can secretly change it.
✅ Example: Ravi's land purchase is recorded on blockchain. Even officers can’t
change it later.
🔹 2. Transparent & Public Access
➤ Citizens can check land records online without middlemen.
✅ Example: Anyone can verify if Ravi owns the land or not.
🔹 3. Prevents Fraud & Disputes
➤ Blockchain ensures a single owner, clear transaction history, and time-stamped
records.
✅ Example: Two people can’t claim the same land if it’s on blockchain.
Blockchain Design (BCS063)

🔹 4. Faster Land Transfer & Verification


➤ Smart contracts can automate the land transfer when buyer and seller meet
conditions.
✅ Example: Ravi pays → Ownership automatically transfers → No need to wait for
office approvals.
🔹 5. Cost-Effective & Paperless
➤ No need for multiple physical documents. All data is stored securely on blockchain.
Blockchain Design (BCS063)

Ques : What type of records can be kept in a blockchain ? Is there any restriction on
same ? (AKTU 2021-22)
Ans : Following are two types of records that can be kept in the blockchain :
1. ✅ Transaction Records
These are the actual operations or actions that happen on the blockchain.
🔹 Example:
• A payment is made
• A land ownership is transferred
• A student degree is issued
✅ Each transaction includes:
• Who did it (sender)
• To whom (receiver)
• What happened (amount/data change)
• When it happened (timestamp)
• Digital signature (for security)
Blockchain Design (BCS063)

2. ✅ Block Records
These are groups of transactions stored together in one block.
✅ Each block contains:
• A list of transaction records
• A block number (ID)
• A timestamp
• A hash of current block
• A hash of previous block (used to connect blocks securely)

🔒 Why are both needed?


 Transaction records → Show what happened
 Block records → Store them securely and link them together in order (like a chain)
Blockchain Design (BCS063)

📚 Government Adoption of Blockchain :


📚 1. Blockchain in Health Sector
✅ What's the Problem?
Health records (like reports, prescriptions) are stored in different hospitals.
You visit one hospital today and another tomorrow — they don’t know your history.
You might have to repeat tests or carry papers every time.
✅ How Blockchain Helps:
It keeps your medical records safe in one place.
Only you control who can see them.
Once a report is added, no one can change or delete it.
👉 Simple Example:
You fall sick in another city. The doctor there can check your full health history with
your permission — no need to carry anything.
Blockchain Design (BCS063)

✅ Benefits:
• No repeated tests
• All reports in one place
• You decide who sees your data
• No fake reports
• Better treatment, faster help
Blockchain Design (BCS063)

📚 2. Blockchain in Smart Cities (Energy Management)


✅ What's the Problem?
Electricity is wasted, bills are wrong, and it’s hard to track how much is used.
People with solar panels can't easily sell their extra energy.
✅ How Blockchain Helps:
It keeps a real-time record of who is using and generating how much electricity.
If you make extra electricity (like from solar), you can sell it directly to your neighbor.
Payment happens automatically with no cheating.
👉 Example:
You produce extra solar energy. Your neighbor needs it. You sell it, blockchain records it,
and you get paid right away — no electricity company needed!
✅ Benefits:
• No fake bills • Instant payment
• Less wastage • Everyone gets correct and fair power usage record
• Extra energy can be sold
Blockchain Design (BCS063)

📚 3. Blockchain in Voting
✅ What's the Problem?
Traditional voting has long lines, fake votes, and slow counting.
✅ How Blockchain Helps:
It allows online voting, where your vote is recorded safely.
No one can change your vote.
Counting is super fast and 100% correct.
👉 Example:
You vote from home using a secure app. The vote is saved on blockchain — no one can hack
or delete it.
✅ Benefits:
• Vote from anywhere
• No fake votes
• Faster results
• Trustworthy and transparent election
Blockchain Design (BCS063)

📚 4. Blockchain in Notary Services


✅ What is Notary?
Notary means officially proving a document is real (like property papers or contracts).
✅ Problem:
This process is slow, needs a lawyer, and can be faked.
✅ How Blockchain Helps:
When you upload your document to blockchain, it gets time-stamped and locked.
That proves it’s real and no one changed it.
👉 Example:
You upload your agreement today → It gets a time-stamp → No one can edit or fake it → It's
legal proof.
• Fast and cheap
✅ Benefits:
• No lawyer needed
• 100% proof the document is real . Easy to verify anytime
Blockchain Design (BCS063)

📚 5. Blockchain in Energy Sector (General)


✅ Problem:
Difficult to track where energy comes from.
Some companies show fake numbers or cheat.
✅ How Blockchain Helps:
It records the origin, transfer, and use of every unit of energy.
You can see if energy is from solar, wind, or coal.
Makes the system honest and clear.
👉 Example:
You buy power and check — it’s from green (solar) energy. You're sure it’s clean and real.
✅ Benefits:
• Green energy tracking
• Less fraud
• Open and fair pricing
• Better energy planning
Blockchain Design (BCS063)

Blockchain helps the government by making systems like health, energy, voting, and
documents more secure, faster, and trustworthy.
It reduces fraud, saves time, and gives people full control of their data.

Ques : Disucss blockchain for government with respect to digital identity, land records
and other kinds of record keeping between government entities, is it safe ? Justify your
answer. (AKTU 2019-20)

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Blockchain Design (BCS063)

✅ What is Public Distribution System (PDS)?


The Public Distribution System (PDS) is a government-run system in India that distributes
essential food items like rice, wheat, sugar, and kerosene to the poor and needy at
subsidized prices.
It is managed by the Central and State Governments to ensure food security for people
below the poverty line (BPL).
✅ Example:
A family with a BPL ration card can get:
• 5 kg rice at ₹3/kg
• 5 kg wheat at ₹2/kg
They visit the nearest FPS every month to get these items.

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Blockchain Design (BCS063)

🎯 Key Challenges in Traditional PDS:


• Leakage & corruption (grains sold in black market)
• Fake ration cards
• Delayed delivery
• Lack of transparency
🔄 Process Flow of PDS (Step-by-Step)
Here's a simplified flow of how the PDS system works:
1. Procurement of Grains
👉 Food grains (like rice, wheat) are purchased by government agencies like FCI (Food
Corporation of India) from farmers at Minimum Support Price (MSP).
2. Storage
👉 The grains are stored in central and state warehouses.
3. Allocation
👉 The central government allocates food grains to each state based on population and
poverty data.
Blockchain Design (BCS063)

4. Transportation
👉 Grains are transported from central warehouses to state godowns, and then to Fair
Price Shops (FPS) in villages and towns.
5. Distribution to Beneficiaries
👉 People with valid ration cards visit the FPS and collect their quota (e.g., 5 kg
rice/month) at a subsidized rate.
🔗 Role of Blockchain in PDS (Public Distribution System)
Blockchain can make the PDS process transparent, efficient, and corruption-free by
tracking the movement of food grains from source to beneficiary in a secure and tamper-
proof way.
1. 🔍 Transparency in Supply Chain
Every step (from procurement to distribution) is recorded on a blockchain ledger.
All stakeholders — farmers, government, transporters, ration shops — can see real-time
data.
Example: If wheatDownload Notes
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in Punjab and sent to a shop in Bihar, blockchain can
Blockchain Design (BCS063)

show exact quantity, time, and route.


2. 🔐 No Tampering or Fake Records
Once data is added to blockchain, it can’t be changed — preventing manipulation of stock
or records.
Stops black marketing or diversion of grains.
Example: A Fair Price Shop owner cannot claim to have distributed 100 kg if only 50 kg was
delivered — blockchain proves it.
3. 📱 Ration Card on Blockchain (Digital Identity)
Beneficiaries can have digital ration cards stored on blockchain, linked with Aadhaar.
Prevents fake or duplicate cards.
Example: A person can't use a duplicate ration card at two places. Blockchain ensures only
one valid identity.
4.Real-Time Monitoring
• Government can monitor stock levels and deliveries instantly.
• Reduces delays and ensures timely delivery to ration shops.
Blockchain Design (BCS063)

5. 💵 Smart Contracts for Auto-Payment


Payments to transporters or ration shopkeepers can be done automatically using smart
contracts when goods are delivered.
6. 📊 Audit and Accountability
Blockchain maintains a complete, unchangeable history of all transactions.
Makes it easy to audit who received what, when, and where.

States like Andhra Pradesh and Chhattisgarh have explored blockchain for tracking PDS
supply chains to reduce leakages and ensure accountability.
Blockchain Design (BCS063)

💡 What are Social Welfare Systems?


Social welfare systems are government programs that provide support to people in need —
such as pensions, scholarships, unemployment benefits, housing help, or direct cash
transfers.
🔗 Role of Blockchain in Social Welfare Systems :
Blockchain helps make these systems more transparent, fast, and secure so that the right
people get the benefits without delays, fraud, or middlemen.
✅ Benefits of Blockchain in Social Welfare:
1. 👤 Digital Identity
• Citizens have a verified digital ID on blockchain.
• Helps target the right beneficiary, avoids fake entries.
Example: A poor farmer’s ID is stored on blockchain, so they can get subsidies directly — no
need for middlemen or repeated verification.
Blockchain Design (BCS063)

2. 💸 Direct Benefit Transfer (DBT)


Blockchain can be used to directly transfer money or benefits to verified users through
smart contracts.
Example: If ₹1000 pension is to be given every month, a smart contract automatically
releases it to the person’s account.
3. 🔍 Transparency and Tracking
Every transaction is recorded, so government and citizens can track where the money goes.
Reduces corruption and leakage.
4. Faster and Reliable
Reduces paperwork and time.
Ensures quick delivery of benefits — especially useful in emergency relief (e.g., floods or
COVID aid).

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Blockchain Design (BCS063)

Example 1: India – Blockchain for Pension Distribution


In some Indian states, blockchain is being tested to distribute pensions to elderly
people.
✅ How it works:
The pensioner’s ID and eligibility are stored on blockchain.
Every month, blockchain automatically checks eligibility and releases money to their
bank account.
🎯 Benefits:
• No need to visit government offices.
• Pension is never delayed or stolen.
• Fake claims are blocked.

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Blockchain Design (BCS063)

🔐 How Blockchain Uses Cryptography:


Cryptography is like secret codes that keep blockchain data safe, secure, and trustworthy.
Blockchain uses mainly two types of cryptography:
1. Hashing (Cryptographic Hash Functions)
This converts any data (like a transaction) into a fixed-size code called a hash.
📌 Example:
• “Send ₹100 to Rahul” → becomes a unique hash like:
6b8d76f123...
✅ Features:
• Even a small change in input gives a completely different hash.
• Hashes help link blocks together (blockchain).
• Makes data tamper-proof. If you change anything in a block, the hash breaks = blockchain
detects cheating.
Blockchain Design (BCS063)

2. Digital Signatures (Public Key Cryptography)


Every user has a private key (secret) and a public key (shared).
You sign your transaction with your private key, and others verify using your public key.
📌 Example:
• You send money to someone.
• You “sign” the transaction with your private key.
• The network checks the signature to prove you are the sender, not someone pretending
to be you.
✅ Features:
• Proves ownership and authenticity.
• No one can fake or alter the message.
• Only the real owner can authorize a transaction.

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Blockchain Design (BCS063)

How Cryptography Creates a Trustless Environment:


In blockchain, “trustless” doesn’t mean “no trust.” It means no need to trust any one
person or middleman — the system itself ensures truth using cryptography.
✅ Here’s how:
✅ Data cannot be changed — Hashing makes blockchain tamper-proof.
✅ No fake users — Digital signatures prove identity.
✅ No need for middlemen — Math & code verify everything.
✅ Transparent — Everyone can see transactions and verify them.

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Blockchain Design (BCS063)

🔐 What is Privacy in Blockchain?


Privacy means keeping your personal information, transaction details, or business data
secret or hidden from the public or unauthorized users.
But in blockchain, most blockchains (like Bitcoin, Ethereum) are public, meaning:
✅ Anyone can see all transactions
❌ Even though your name isn’t shown, your wallet address is visible
❌ With tracking tools, people can guess who you are
⚠️ Privacy Issues in Blockchain
1. Public Visibility of Data
On most blockchains, everyone can see the data (transactions, addresses).
Even if it’s anonymous, experts can trace and link addresses to real people.
Example: If you always send money from the same wallet, someone might figure out it’s
you!
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Blockchain Design (BCS063)

2. No "Right to Be Forgotten"
• Once data is written to blockchain, it can’t be deleted.
• This is a problem under data privacy laws (like GDPR in Europe), where users have a right
to delete their data.
3. Linkability
• Transactions can be linked together over time.
• With enough data, people can guess your identity, your behavior, how much money you
have, etc.
4. Data Exposure in Smart Contracts
• Some smart contracts store personal or sensitive data.
• If smart contracts are public, this data is also visible to everyone — not good for privacy.
Blockchain Design (BCS063)

🛡 How to Improve Privacy in Blockchain?


1. Zero-Knowledge Proofs
Prove something is true without showing the actual data.
📌 Example: Prove you are above 18 without revealing your age.
2. Private Blockchains
Used by companies or governments where only authorized users can see data.
3. Mixing Services
These mix your transactions with others to hide your identity.
4. Confidential Transactions
Hide transaction amounts using special math (used in some privacy coins).
Blockchain Design (BCS063)

Ques : What are the key principles in blockchain that are helpful in eliminating the security
threats that needs to be followed ? (AKTU 2020-21, 2021-22)
Let's explore the key security principles in blockchain that help protect it from threats, in
simple and easy words, one by one:
✅ 1. Auditing
What it means: Regularly checking if everything in the blockchain system is working as
expected and no tampering has happened.
🔍 Why it matters:
• Helps catch mistakes or fraud early
• Ensures transactions and smart contracts are working safely
🛠 Example: Just like a bank audits its transactions, blockchain systems need tools to check
and verify data to ensure no one is cheating or hacking.
Blockchain Design (BCS063)

✅ 2. Securing Applications
What it means: Protecting the apps (like wallets, DApps, exchanges) that use blockchain.
🔐 Why it matters:
• Apps connect users to the blockchain — if an app is weak, hackers can steal money or data
• Apps must use strong encryption and secure coding
🛠 Example: A mobile crypto wallet should require PIN/fingerprint, and encrypt your private
keys.
✅ 3. Secure Testing and Similar Approaches
What it means: Testing the blockchain system carefully before using it live.
🔎 Why it matters:
• Finds bugs, loopholes, or security gaps before hackers find them
• Uses penetration testing (ethical hacking), code reviews, and smart contract testing
🛠 Example: Before launching a smart contract, developers simulate thousands of fake users to
see if it crashes or leaks data.
Blockchain Design (BCS063)

✅ 4. Database Security
What it means: Protecting the data stored off-chain (outside the blockchain) like user profiles,
transaction logs, etc.
Why it matters:
• Not all blockchain systems are 100% on-chain
• Databases must be protected from unauthorized access, leaks, and tampering
🛠 Example: KYC data stored in a government blockchain app must be encrypted and access-
controlled.
✅ 5. Continuity Planning (Disaster Recovery)
What it means: Having a backup plan if something goes wrong — like a hack, power outage, or
data loss.
📦 Why it matters:
• Keeps the blockchain system running smoothly
• Helps restore data and services quickly after a failure
🛠 Example: A blockchain voting app should have backups so votes are not lost even if the server crashes.
Blockchain Design (BCS063)

✅ 6. Digital Workforce Training


What it means: Teaching developers, employees, and users how to use blockchain safely.
👨🏫 Why it matters:
• Human errors are the biggest security risk!
• People must know about password safety, phishing, smart contract use, etc.
🛠 Example: Training government employees on how to securely access land record
blockchain using 2FA and private keys.
Blockchain Design (BCS063)

 Use of Hash function and Digital Signature in Blockchain Network :


✅ What is a Hash Function?
A hash function takes any input (like a message or transaction) and turns it into a fixed-length
random-looking string of letters and numbers, called a hash.
Simple Example:
If you hash the word Hello, it might become:
2cf24dba5fb0a30e... (a long string)
Even changing one letter will give a completely different hash!
✅ Why Hashing is Used in Blockchain?
🔸 Data Integrity – Hashing ensures no one can change data secretly.
🔸 Block Linking – Each block has the hash of the previous block. This creates a chain – if one
block is changed, all hashes break!
🔸 Fast Verification – Instead of checking entire data, systems compare hashes to see if data is
the same.
Blockchain Design (BCS063)

🔒 Real Blockchain Use:


• Every transaction is hashed.
• Every block has a unique hash.
• Any change in data changes the hash → makes tampering obvious and easy to detect.
Blockchain Design (BCS063)

✍️ 2. Digital Signature in Blockchain


✅ What is a Digital Signature?
A digital signature is like an electronic signature that proves who sent a message or
transaction and that it wasn’t changed.
It uses:
• Private Key (kept secret by sender)
• Public Key (shared with everyone)
Simple Example:
If Alice wants to send 1 Bitcoin to Bob:
• She signs the transaction with her private key.
• Others can verify her signature using her public key.

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Blockchain Design (BCS063)

• This proves:
• The transaction is from Alice
• It wasn’t changed by anyone
✅ Why Digital Signatures Are Used?
🔸 Authentication – Proves who sent the transaction
🔸 Non-repudiation – Sender can’t deny the transaction
🔸 Integrity – Any tampering makes the signature invalid

Together, hashing and digital signatures make blockchain:


• Tamper-proof
• Trustless (no need for third parties)
• Secure
Blockchain Design (BCS063)

🌳 What is a Merkle Tree?


A Merkle Tree is a special tree structure used in blockchain to:
✅ Organize transactions
✅ Make verification fast and efficient
✅ Ensure data integrity
It’s like a summary of all transactions in a block using hashes.
💡 Real-Life Example (Like a Family Tree):
Imagine:
• You have 4 transactions: T1, T2, T3, T4
• You hash each one → H1, H2, H3, H4
Then you:
• Combine H1 and H2 → hash again → H12
• Combine H3 and H4 → hash again → H34
• Combine H12 and H34 → hash again → ✅ Merkle Root
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So the tree looks like:
Blockchain Design (BCS063)

What is Merkle Root?


• The Merkle Root is the top hash — a single hash that represents all transactions in the
block.
• Even if one small part of one transaction changes, the Merkle Root becomes completely
different.
This helps detect any tampering instantly.
✅ Use of Merkle Tree in Blockchain
🔹 1. Fast and Efficient Verification
You don’t need the full data to verify a transaction — just a few hashes.
👉 Makes Bitcoin and Ethereum work faster.
🔹 2. Tamper Detection
If someone changes any transaction → its hash changes → Merkle Root changes →
Blockchain detects it.
🔹 3. Saves Space
Only hashes are stored instead of full data. Saves memory and speeds up verification.
Blockchain Design (BCS063)

🔹 4. Helps in Simplified Payment Verification (SPV)


Mobile wallets use Merkle Trees to check if a transaction is valid — without downloading
the whole blockchain.
📚 What is Elliptic Curve Cryptography (ECC)?
✅ Elliptic Curve Cryptography is a method of encrypting and securing data using the math
of elliptic curves.
It is used for:
• Digital signatures
• Key generation
• Secure messaging
👉 Simple Idea:
It uses a private key (secret) and generates a public key (shared) using elliptic curve math.
✅ Example in Blockchain:
Bitcoin uses ECC to create wallet addresses and sign transactions securely.
Blockchain Design (BCS063)

✅ Benefits of ECC:
🔹 Strong security with smaller keys (compared to RSA)
🔹 Faster and uses less computing power
🔹 Widely used in blockchain wallets, secure apps, and digital signatures

Ques : Mention Security components used in blockchain


(Hash function, Digital Signature, ECC, Merkle Tree)  Previous Discussed

Ques : Which cryptography algorithm used in blockchain ? (AKTU 2020-21)

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Blockchain Design (BCS063)

Thank You…

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