CBT051 DISASTER RECOVERY

MANAGEMENT USING BLOCKCHAIN

TECHNOLOGY
UNIT-1

Prepared By: G.S.Mishra

INTRODUCTION TO BLOCKCHAIN
 Blockchain is a decentralized and distributed digital
ledger that records transactions across multiple
computers.
 It ensures security, transparency, and immutability of

data through cryptographic techniques.

 Key Features of Blockchain

 Decentralization: No single authority controls the

network.
 Transparency: Transactions are visible to all
participants.
 Immutability: Data cannot be altered once recorded.

 Security: Uses cryptographic hashing for data

integrity.
 Consensus Mechanism: Transactions are verified by

network nodes.
 HOW BLOCKCHAIN WORKS

 A transaction is initiated by a user.

 The transaction is verified by a network of nodes.

 Once verified, it is added to a block.

 The block is linked to the previous block, forming a

chain.

 The blockchain is updated across the entire

network.
TYPES OF BLOCKCHAIN
 Public Blockchain: Open to all, decentralized (e.g.,
Bitcoin, Ethereum).

 Private Blockchain: Restricted access, controlled by an

entity (e.g., Hyperledger).

 Consortium Blockchain: Partially decentralized, used by

multiple organizations (e.g., R3 Corda).

 Hybrid Blockchain: Combines public and private

blockchain features.

 Smart Contracts: Smart contracts are self-executing

contracts with predefined rules written in code. They
automatically enforce and execute agreements without
intermediaries.
APPLICATIONS OF BLOCKCHAIN
 Cryptocurrency: Bitcoin, Ethereum, and other digital assets.

 Supply Chain Management: Enhances transparency and

traceability.

 Banking and Finance: Enables secure and fast transactions.

 Healthcare: Secures patient data and enhances

interoperability.

 Voting Systems: Ensures secure and tamper-proof elections.

 Real Estate: Simplifies property transactions and prevents

fraud.
CHALLENGES AND LIMITATIONS OF
BLOCKCHAIN
 Scalability: Limited transaction processing capacity.

 Energy Consumption: High computing power

required for mining.

 Regulatory Concerns: Unclear legal frameworks.

 Adoption Barriers: Complex integration with existing

systems.
FUTURE TRENDS IN BLOCKCHAIN
 Integration with AI and IoT.

 Development of Central Bank Digital Currencies (CBDCs).

 Improvements in scalability solutions like Layer 2

protocols.

 Growth of Decentralized Finance (DeFi) and Non-Fungible

Tokens (NFTs).

 Blockchain technology is transforming various industries

by providing security, transparency, and efficiency. While
challenges exist, ongoing innovations continue to
improve its scalability and adoption.
EVOLUTION OF BLOCKCHAIN
 Blockchain technology has undergone significant
advancements since its inception. Below are the key
phases of its evolution:

 1. Blockchain 1.0 – Cryptocurrency Era (2008 - Present)

 Introduced with Bitcoin by Satoshi Nakamoto in 2008.
 Focused primarily on digital currency transactions.
 Established decentralized ledger technology (DLT) for
peer-to-peer transactions.
 Key Example: Bitcoin – first successful cryptocurrency.
CONTD…
 2. Blockchain 2.0 – Smart Contracts (2013 - Present)
 Introduced by Ethereum in 2013, enabling smart
contracts – self-executing contracts with predefined
conditions.
 Expanded blockchain use beyond cryptocurrency to
financial services, supply chains, and digital identity.
 Key Examples: Ethereum, Hyperledger, Binance
Smart Chain.
CONTD…
 3. Blockchain 3.0 – Scalability & Interoperability
(2017 - Present)
 Focus on faster transactions, reduced energy
consumption, and improved scalability.
 Solutions like sharding, Layer 2 protocols (e.g.,
Lightning Network, Polygon), and cross-chain
interoperability emerged.
 Increased adoption in healthcare, government, and
enterprises.
 Key Examples: Polkadot, Cosmos, Solana, Cardano.
CONTD…
 4. Blockchain 4.0 – Enterprise & AI Integration (2020 -
Present)
 Blockchain tailored for mainstream business adoption
with a focus on speed, privacy, and AI integration.
 Private and hybrid blockchains introduced for
industries like finance, logistics, and healthcare.
 Decentralized Finance (DeFi) and NFTs (Non-Fungible
Tokens) gained popularity.
 Key Examples: Hedera Hashgraph, IBM Blockchain, AI-
driven smart contracts.
PUBLIC BLOCKCHAIN
 A public blockchain is a decentralized network where
anyone can participate as a node, verify transactions,
and contribute to the consensus mechanism. It is the
most transparent and secure form of blockchain.

 Characteristics of Public Blockchain:

 Open and Permissionless: Anyone can join and

participate in the network.

 Decentralized: No central authority controls the

blockchain.
 Immutable and Transparent: Transactions are visible

to all participants and cannot be altered once

validated.
 Security through Consensus Mechanism: Uses Proof

of Work (PoW), Proof of Stake (PoS), or other

ADVANTAGES OF PUBLIC BLOCKCHAIN:
 High Security: Due to decentralization and
cryptographic hashing.

 Transparency: All transactions are publicly available.

 No Central Authority: Eliminates single points of

failure.

 Community-Driven: Maintained and updated by the

community.
CHALLENGES OF PUBLIC BLOCKCHAIN:
 Scalability Issues: Slower transaction processing due
to high network traffic.

 Energy Consumption: High computational power

required (especially in PoW-based blockchains like
Bitcoin).

 Privacy Concerns: Transactions are publicly

accessible, which may not be suitable for
businesses requiring confidentiality.
CONTD…
 Examples of Public Blockchains:

 Bitcoin: First and most widely used cryptocurrency

network.

 Ethereum: Introduced smart contracts and

decentralized applications (DApps).

 Solana, Cardano, Polkadot: Modern public

blockchains focusing on scalability and efficiency.
PRIVATE BLOCKCHAIN
 A private blockchain is a type of blockchain where access
to the network is restricted to specific participants.
Unlike public blockchains, private blockchains are
controlled by a single entity or a group of organizations.

 Characteristics of Private Blockchain:

 Permissioned Access: Only authorized participants can
join the network.
 Centralized Control: Managed by a single organization or
consortium.
 Higher Scalability: Can process transactions faster due to
fewer participants.
 Enhanced Privacy: Data is accessible only to selected
participants.
ADVANTAGES OF PRIVATE BLOCKCHAIN:

 Improved Performance: Fewer nodes result in faster

transaction processing.

 Greater Privacy: Confidential information remains

within authorized participants.

 Regulatory Compliance: Easier to comply with legal

and business requirements.

 Efficient Governance: Clear decision-making and

rule enforcement.
CHALLENGES OF PRIVATE
BLOCKCHAIN:
 Lack of Decentralization: Controlled by a single
entity, reducing trust.
 Security Risks: More vulnerable to internal attacks.
 Limited Transparency: Restricted access can lead to
reduced auditability.

 Examples of Private Blockchains:

 Hyperledger Fabric: Developed by the Linux
Foundation for enterprise use.
 Corda: A blockchain platform for financial
institutions.
 Quorum: An enterprise-focused blockchain
CONSORTIUM BLOCKCHAIN
 A consortium blockchain is a type of blockchain where
multiple organizations jointly control the network.
 Unlike public blockchains, which are open to everyone, or
private blockchains, which are controlled by a single
entity, consortium blockchains provide a balance
between decentralization and controlled access.
 Characteristics of Consortium Blockchain:
 Partially Decentralized: Managed by a group of pre-
approved organizations.
 Permissioned Access: Only selected participants can
validate transactions.
 Efficient and Scalable: Faster than public blockchains due
to limited validators.
 More Secure Than Private Blockchains: Since multiple
organizations control it, a single entity cannot
manipulate the system.
ADVANTAGES OF CONSORTIUM
BLOCKCHAIN:
 Enhanced Trust Among Organizations: Participants
share responsibility in maintaining the network.

 Reduced Transaction Costs: Eliminates

intermediaries while ensuring security.

 Better Performance: Faster transaction processing

due to fewer nodes.

 Regulatory Compliance: Easier to adhere to legal

and industry requirements.
CHALLENGES OF CONSORTIUM
BLOCKCHAIN

 Complex Governance: Coordination among multiple

entities can be difficult.

 Limited Transparency: Not fully open like public

blockchains.

 Security Risks: If a majority of controlling

organizations collude, they can manipulate the
ledger.
EXAMPLES OF CONSORTIUM
BLOCKCHAIN:

 R3 Corda: Designed for financial institutions to

facilitate secure transactions.

 Hyperledger Fabric: A modular blockchain

framework for business applications.

 Quorum: Developed by JPMorgan Chase for

enterprise blockchain solutions.
DECENTRALIZATION
 Decentralization is one of the core principles of
blockchain technology.

 It refers to the distribution of control and decision-

making from a central authority to a network of nodes
(computers).

 This ensures transparency, security, and trust in a

blockchain network.

 In traditional systems like banks or government

databases, data and control are centralized.
Blockchain, however, operates on a peer-to-peer (P2P)
network where no single entity has complete control.
Instead, decisions are made collectively by
participants in the network.
LEVELS OF DECENTRALIZATION
 Decentralization in blockchain can be categorized
into three levels:
 Architectural Decentralization: No single point of
failure; multiple nodes maintain the ledger.
 Political Decentralization: No single governing body
controls the network.
 Logical Decentralization: The rules governing
blockchain operations are universally agreed upon
through consensus mechanisms.
HOW BLOCKCHAIN ACHIEVES
DECENTRALIZATION
 Blockchain achieves decentralization through:

 Distributed Ledger Technology (DLT): Each

participant (node) has a copy of the ledger,
ensuring transparency.
 Consensus Mechanisms: Algorithms like Proof of
Work (PoW) and Proof of Stake (PoS) validate
transactions without a central authority.
 Cryptographic Security: Data integrity is ensured
through hashing and encryption.
BENEFITS OF DECENTRALIZATION
 Security: No single point of attack; hacking requires
control over the majority of the network.
 Transparency: Transactions are recorded publicly
and immutable.
 Censorship Resistance: No central authority can
alter records or restrict participation.
 Reduced Trust Requirement: Eliminates the need to
trust a third party.
CHALLENGES OF DECENTRALIZATION
 Scalability Issues: Decentralized networks can be slower than
centralized ones due to consensus protocols.
 Energy Consumption: PoW blockchains require significant
computational power.
 Regulatory Uncertainty: Governments struggle to regulate
decentralized systems.
 Coordination Complexity: Decision-making can be slow due to
a lack of central authority.

 Examples of Decentralized Blockchains

 Bitcoin (BTC): The first and most decentralized blockchain,
using PoW for consensus.
 Ethereum (ETH): A decentralized smart contract platform
moving towards PoS.
 Polkadot (DOT) & Cosmos (ATOM): Focus on interoperability
between decentralized networks.
CONSENSUS PROTOCOL
 overview of the general process of consensus
mechanisms:

 Transaction Proposal: A participant (node) or a

leader proposes a new transaction or block. This
transaction must comply with the network’s protocol
rules.

 Transaction Broadcast: The proposed transaction

or block is broadcasted to other nodes in the
network for validation.

 Validation: Nodes verify the transaction or block

based on predefined rules.
CONTD…
 Consensus Voting: Nodes communicate with each
other to reach an agreement on the proposed
transaction or block. The specific method of voting
or agreement varies by consensus mechanism.

 Proof of Work (PoW): Nodes (miners) compete to

solve a computational puzzle. The first to solve it
gets to propose the block and is rewarded.

 Proof of Stake (PoS): Nodes (validators) are

chosen to propose and validate blocks based on the
amount of cryptocurrency they hold and are willing
to “stake” as collateral.
CONTD…
 Byzantine Fault Tolerance (BFT): Nodes exchange
messages to achieve consensus, with protocols
designed to handle up to a third of faulty or malicious
nodes.

 Proof of Authority (PoA): A small set of pre-approved

nodes validate transactions and propose blocks.

 Agreement and Finalization: Once a sufficient

number of nodes agree on the proposed transaction or
block, it is added to the blockchain.

 Propagation: The updated ledger, now including the

new block, is propagated to all nodes in the network to
ensure they all have the same view of the blockchain.
WORKING OF BLOCKCHAIN
 1. A Transaction is Initiated
 A user initiates a transaction (e.g., sending
cryptocurrency, executing a smart contract, or
recording data).

 The transaction contains details such as sender,

receiver, amount, timestamp, and digital signature.

 The transaction is broadcast to the blockchain

network.
2. TRANSACTION VERIFICATION (CONSENSUS
MECHANISM)
 Miners (Proof of Work - PoW) or validators (Proof of Stake -
PoS) verify the transaction to ensure its authenticity.
 Verification includes checking the sender's balance and
confirming that the transaction follows the network rules.
 The process depends on the blockchain's consensus
mechanism:
 Proof of Work (PoW): Miners solve a complex cryptographic
puzzle to add a new block. (Used in Bitcoin)
 Proof of Stake (PoS): Validators stake cryptocurrency to be
chosen for block verification. (Used in Ethereum 2.0)
3. BLOCK FORMATION
 Once verified, the transaction is grouped with other
verified transactions to form a block.
 The block consists of:

 Block Header: Contains metadata such as the previous

block’s hash, timestamp, and nonce (in PoW).

 Transaction Data: List of all transactions included in the

block.

 4. Block Validation & Consensus

 Miners/validators compete to solve the cryptographic

puzzle (PoW) or validate transactions (PoS).

 The first miner/validator to complete the process

broadcasts the block to the network.

 Other network participants confirm the block’s validity.
5. ADDING BLOCK TO THE BLOCKCHAIN
 If the block is valid, it is added to the existing
blockchain.
 Each block is linked to the previous block using a

unique cryptographic hash, creating a chain of

blocks (hence the name blockchain).

 6. Updating the Ledger

 The updated blockchain is distributed across all

nodes in the network.

 Each node updates its copy of the blockchain to

reflect the new transactions.

 Transactions are now permanent and immutable—

they cannot be altered or deleted.

EXAMPLE: BITCOIN TRANSACTION ON
BLOCKCHAIN

 Alice sends 1 BTC to Bob.

 The transaction is broadcast to the Bitcoin network.

 Miners verify the transaction using PoW.

 The transaction is included in a block and added to

the blockchain.

 The ledger updates, and Bob receives 1 BTC.

BLOCKCHAIN HASH FUNCTION
 A hash function takes an input string (numbers,
alphabets, media files) of any length and transforms
it into a fixed length.
 The fixed bit length can vary (like 32-bit or 64-bit or
128-bit or 256-bit) depending on the hash function
which is being used.
 The fixed-length output is called a hash. This hash is
also the cryptographic byproduct of a hash
algorithm.
 We can understand it from the following diagram.
CONTD…
CONTD…

 The hash algorithm has certain unique properties:

 It produces a unique output (or hash).
 It is a one-way function.
 In the context of cryptocurrencies like Bitcoin, the
blockchain uses this cryptographic hash function's
properties in its consensus mechanism.
 A cryptographic hash is a digest or digital
fingerprints of a certain amount of data. In
cryptographic hash functions, the transactions are
taken as an input and run through a hashing
SHA-256
 The significance of the 256 in the name stands for the final
hash digest value, i.e. irrespective of the size of
plaintext/cleartext, the hash value will always be 256 bits.

 Characteristics of the SHA-256

 The SHA algorithm has several important features:
 Message length − The cleartext should be less than 264
bits. The size has to be in the same range to keep the digest
as random as possible.
 Digest Length − The hash digest should be 256 bits for the
SHA 256 method, 512 bits for SHA-512, and so on. Higher
digests typically represent considerably more calculations at a
cost of speed and space.
 Irreversible − By design, all hash functions, like SHA 256, are
irreversible. You should not get a plaintext if you already have
the digest, nor should the digest return its original value if you
put it over the hash function again.
BLOCKCHAIN DISRUPTION
 Blockchain technology has the potential to disrupt various
industries by changing how we record, verify, and manage
information.
 Financial Services: Faster and cheaper cross-border payments:
Eliminating intermediaries.
 Decentralized finance (DeFi): Creating new financial products and
services outside traditional institutions.
 Tokenization of assets: Representing real-world assets (e.g., real
estate, art) as digital tokens.
 Supply Chain Management:
 Improved traceability and transparency: Tracking goods from origin
to consumer.
 Reduced counterfeiting and fraud: Ensuring product authenticity.
CONTD…
 Healthcare:
 Secure storage and sharing of medical records: Empowering
patients with control over their data.
 Improved drug traceability: Preventing counterfeit drugs from
entering the supply chain.
 Voting: Increased transparency and security: Reducing the
potential for fraud and manipulation.
 Digital Identity:
 Self-sovereign identity: Individuals control their own digital
identities.
 Intellectual Property: Protecting copyrights and patents:
Timestamping and registering intellectual property on the
blockchain.
SMART CONTRACTS
 Smart contracts are self-executing contracts with the terms of
the agreement directly written into code. They automatically
execute when pre-defined conditions are met.

 Key Characteristics:
 Self-executing: The code automatically enforces the terms of
the contract.
 Immutable: Once deployed, the code cannot be changed.
 Transparent: The code is publicly auditable on the blockchain.
 Deterministic: The outcome of the contract is predictable
based on the input conditions.
HOW SMART CONTRACTS WORK:

 A smart contract is written in a programming

language (e.g., Solidity for Ethereum).

 The contract is deployed to the blockchain.

 When a transaction interacts with the contract and

triggers a function, the code is executed.

 The results of the execution are recorded on the

blockchain.
SMART CONTRACT USE CASES
 Decentralized Applications (DApps): Applications built on
top of blockchain using smart contracts.
 Decentralized Exchanges (DEXs): Cryptocurrency
exchanges that operate without intermediaries.
 Supply Chain Management: Automating payments and
tracking goods.
 Voting Systems: Ensuring secure and transparent voting
processes.
 Escrow Services: Holding funds in escrow until conditions
are met.
 Insurance: Automating claim processing.
CRYPTOCURRENCIES
 Cryptocurrencies are digital or virtual currencies designed to
work as a medium of exchange. They use cryptography to
secure and verify transactions as well as to control the
creation of new units of a particular cryptocurrency.
 Unlike traditional currencies issued by central banks,
cryptocurrencies operate independently of any central
authority, using a decentralized system.
 Key Concepts:
 Decentralization: Cryptocurrencies are not controlled by a
single entity like a government or bank. The network is
distributed across many computers, making it resistant to
censorship and single points of failure.
CONTD…
 Cryptography: Cryptographic techniques are used to secure
transactions, verify the transfer of funds, and control the creation of
new units. This ensures the integrity and security of the network.
 Blockchain: A blockchain is a distributed, immutable ledger that
records all cryptocurrency transactions. Each transaction is grouped
into a "block," which is then cryptographically linked to the previous
block, forming a chain. This creates a transparent and auditable
record of all transactions.
 Mining: The process of verifying and adding new blocks to the
blockchain. Miners use powerful computers to solve complex
mathematical problems, and in return, they are rewarded with
newly created cryptocurrency. (Not all cryptocurrencies use mining -
some use other consensus mechanisms).
CONTD…
 Wallets: Digital wallets are used to store, send, and receive
cryptocurrencies. They come in various forms, including software
wallets, hardware wallets, and online wallets.

 Private Keys & Public Keys: Cryptocurrency transactions rely on

cryptographic key pairs. The public key is like a bank account
number (you can share it), while the private key is like your PIN
(keep it secret). You need the private key to authorize transactions.

 Consensus Mechanisms: Methods used to ensure all participants in

the network agree on the state of the blockchain. Proof-of-Work
(used by Bitcoin) and Proof-of-Stake (used by many newer
cryptocurrencies) are common examples.
TYPES OF CRYPTOCURRENCIES:
 Bitcoin (BTC): The first and most well-known
cryptocurrency.
 Ethereum (ETH): A platform for decentralized
applications (dApps) and smart contracts.
 Altcoins: All other cryptocurrencies besides Bitcoin.
Examples include Litecoin, Ripple, Cardano, Solana,
etc. They often have different features and purposes.
 Stablecoins: Cryptocurrencies designed to maintain a
stable value, often pegged to a fiat currency like the
US dollar.
ADVANTAGES OF CRYPTOCURRENCIES:
 Decentralization: Resistant to censorship and control
by a single entity.
 Transparency: All transactions are recorded on the
blockchain, making them publicly auditable.
 Security: Cryptography makes transactions secure
and difficult to tamper with.
 Faster and Cheaper Transactions: Potentially faster
and cheaper than traditional cross-border payments.
 Accessibility: Can be accessed by anyone with an
internet connection.
DISADVANTAGES OF
CRYPTOCURRENCIES:
 Volatility: Cryptocurrency prices can be very volatile, making
them risky investments.
 Complexity: Understanding the technology and its implications
can be challenging.
 Regulation: The regulatory landscape for cryptocurrencies is still
evolving and varies across countries.
 Scalability: Some cryptocurrencies face scalability issues, limiting
the number of transactions they can process.
 Use in Illegal Activities: Cryptocurrencies have been used for
illicit activities, raising concerns about money laundering and tax
evasion.
 Environmental Concerns (for some): Proof-of-Work
APPLICATIONS OF CRYPTOCURRENCIES:
 Payments: Used for online and offline transactions.

 Remittances: Sending money across borders.

 Investment: Trading and holding cryptocurrencies as an

investment.

 Decentralized Applications (dApps): Building applications on

blockchain platforms.

 Smart Contracts: Self-executing contracts with the terms of the

agreement directly written into code.

 Decentralized Finance (DeFi): Providing financial services on

blockchain networks.
BLOCKCHAIN IN HEALTHCARE
 Blockchain technology, with its decentralized and secure
nature, holds immense potential to transform the healthcare
industry. It offers solutions to critical challenges related to data
security, interoperability, and efficiency.

 Key Applications of Blockchain in Healthcare:

 Securing Patient Data:

 Problem: Healthcare data breaches are a major concern,
compromising sensitive patient information. Traditional
centralized databases are vulnerable to cyberattacks.

 Solution: Blockchain provides a secure, immutable ledger for

storing patient medical records. Each transaction is encrypted
and linked to the previous one, making it extremely difficult to
tamper with or alter data. Patients can control who accesses
their data through private keys, enhancing privacy and
security.
EXAMPLES:
 Medicalchain: Uses blockchain to maintain the integrity of health
records while establishing a single point of truth.

 BurstIQ: Offers a platform for secure management of large

amounts of patient data, ensuring compliance with HIPAA
regulations.

 Managing the Pharmaceutical Supply Chain:

 Problem: Counterfeit drugs pose a significant threat to patient
safety. Lack of transparency in the supply chain makes it difficult
to track the origin and authenticity of medications.
 Solution: Blockchain can create a transparent and traceable
record of drugs from manufacturing to distribution. This helps to
verify the authenticity of medications, prevent counterfeiting,
and improve supply chain efficiency.

 Examples:
 IBM and Walmart: Partnered to track pharmaceuticals from end
to end using blockchain, ensuring drug authenticity and proper
IMPROVING INTEROPERABILITY:
 Problem: Healthcare data is often fragmented and siloed
across different systems, hindering care coordination and
efficient information sharing.
 Solution: Blockchain can enable secure and seamless data
exchange between healthcare providers, hospitals, and other
stakeholders. This facilitates a holistic view of patient
information, leading to better diagnoses and treatment plans.
 Examples:
 Avaneer: Uses a public ledger to support better claims
processing, secure data exchanges, and keep provider
directories up-to-date.

 Streamlining Clinical Trials:

 Problem: Clinical trials often face challenges related to data
integrity, patient consent, and regulatory compliance.
 Solution: Blockchain can enhance the transparency and
security of clinical trial data. It can automate consent
management, ensure protocol compliance, and facilitate
secure data sharing among researchers.
ENHANCING CLAIMS PROCESSING:
 Problem: Insurance claims processing can be slow, inefficient,
and prone to errors.
 Solution: Smart contracts, self-executing contracts on the
blockchain, can automate claims processing and payment
verification, reducing administrative overhead and
accelerating reimbursements.

 Benefits of Blockchain in Healthcare:

 Enhanced Security: Protects sensitive patient data from
unauthorized access and cyberattacks.
 Improved Transparency: Creates a transparent and auditable
record of all transactions, increasing trust and accountability.
 Increased Efficiency: Streamlines processes, reduces
administrative overhead, and accelerates information sharing.
 Empowered Patients: Gives patients control over their health
data and allows them to share it securely with authorized
parties.
 Reduced Costs: Lowers administrative costs, prevents fraud,
and improves supply chain efficiency.
CHALLENGES AND CONSIDERATIONS:
 Scalability: Blockchain networks need to handle
large volumes of healthcare data efficiently.
 Interoperability: Ensuring seamless integration with
existing healthcare systems.
 Regulation: Developing clear regulatory frameworks
for the use of blockchain in healthcare.
 Adoption: Overcoming resistance to change and
encouraging widespread adoption of blockchain
technology.
BLOCKCHAIN IN SUPPLY CHAIN
MANAGEMENT:
 Supply chain management involves the flow of
goods and services from origin to consumer.
 It's a complex network of suppliers, manufacturers,
distributors, and retailers.
 Traditional supply chains often suffer from
inefficiencies, lack of transparency, and security
vulnerabilities.
 Blockchain technology offers a transformative
solution to these challenges.
APPLICATIONS OF BLOCKCHAIN IN SUPPLY CHAIN
MANAGEMENT:
 Enhanced Traceability and Provenance:
 Problem: Tracking products across complex supply chains can be
difficult. This makes it challenging to verify product authenticity,
identify the source of defects, and manage recalls effectively.
 Solution: Blockchain creates an immutable record of every
transaction in the supply chain. This allows for tracking products
from their origin to the consumer, verifying their authenticity,
and ensuring ethical sourcing.
 Examples:
 Walmart: Uses blockchain to track mangoes from farm to store,
improving food safety and reducing recall time.
 De Beers: Tracks diamonds from mine to retail, ensuring their
ethical sourcing and preventing the sale of conflict diamonds.
IMPROVED TRANSPARENCY AND COLLABORATION:
 Problem: Lack of visibility and trust among supply chain
partners can lead to delays, disputes, and inefficiencies.
 Solution: Blockchain provides a shared, transparent ledger that
all stakeholders can access. This fosters trust, improves
communication, and enables real-time tracking of goods and
information.
 Examples:
 Maersk: Uses blockchain to streamline shipping processes,
improving collaboration among shipping lines, ports, and
customs authorities.
 Streamlined Processes and Automation:
 Problem: Manual processes and paperwork can slow down
supply chains and increase the risk of errors.
 Solution: Smart contracts, self-executing contracts on the
blockchain, can automate various supply chain processes, such
as payments, order fulfillment, and inventory management.
 Examples:
 Ambrosus: Uses blockchain and IoT sensors to track the quality
and condition of food products throughout the supply chain,
INCREASED SECURITY AND REDUCED FRAUD:
 Problem: Supply chains are vulnerable to fraud, counterfeiting,
and theft.
 Solution: Blockchain's cryptographic security makes it difficult
to tamper with data, reducing the risk of fraud and ensuring
the integrity of product information.

 Benefits of Blockchain in Supply Chain Management:

 Improved Traceability: Enables end-to-end tracking of

products, enhancing product authenticity and facilitating
recalls.
 Increased Transparency: Provides a shared view of information
for all stakeholders, fostering trust and collaboration.
 Enhanced Efficiency: Automates processes, reduces
paperwork, and streamlines operations.
 Reduced Costs: Lowers administrative overhead, minimizes
fraud, and optimizes inventory management.
 Improved Security: Protects data from tampering and ensures
THE WEB
SYSTEM MODELS
 Architectural Model:

Concerned with the placement of parts and the

relationships between them.

 Fundamental model:

Concerned with a more formal description of

the properties that are common in all
architectural models.
 SYSTEM MODELS
Architectural Models:

The placements of its parts & relationship between them:

 The partition of data or, replication

 Requirements to add & remove mobile devices

conveniently

 Use of mobile code & agents

 Caching of data
 ARCHITECTURAL MODELS
 Software Layers:

Applications, services
Middleware
Operating System
Computer & Network Hardware

(OS & CN Hardware referd to as Platform)

 SYSTEM MODELS
Architectural Models:

The placements of its parts & relationship between them:

 The partition of data or, replication

 Requirements to add & remove mobile devices

conveniently

 Use of mobile code & agents

 Caching of data
ORDERING OF EVENTS
Lamport’s Happened Before relationship:

For two events a and b, a → b if

 a and b are events in the same process and a occurred
before b
 a is an event of sending a message m and b is the
corresponding receive event at the destination process
 If a → c and c → b for some event c, then a → c

(transitive relation )
ORDERING OF EVENTS
Lamport’s Happened Before relationship:

For two events a and b, a → b if

 a and b are events in the same process and a occurred
before b
 a is an event of sending a message m and b is the
corresponding receive event at the destination process
 If a → c and c → b for some event c, then a → c

(transitive relation )
ORDERING OF EVENTS
Lamport’s Happened Before relationship:

For two events a and b, a → b if

 a and b are events in the same process and a occurred
before b
 a is an event of sending a message m and b is the
corresponding receive event at the destination process
 If a → c and c → b for some event c, then a → c

(transitive relation )
ORDERING OF EVENTS
Lamport’s Happened Before relationship:

For two events a and b, a → b if

 a and b are events in the same process and a occurred
before b
 a is an event of sending a message m and b is the
corresponding receive event at the destination process
 If a → c and c → b for some event c, then a → c

(transitive relation )
ORDERING OF EVENTS
Lamport’s Happened Before relationship:

For two events a and b, a → b if

 a and b are events in the same process and a occurred
before b
 a is an event of sending a message m and b is the
corresponding receive event at the destination process
 If a → c and c → b for some event c, then a → c

(transitive relation )
ORDERING OF EVENTS
Lamport’s Happened Before relationship:

For two events a and b, a → b if

 a and b are events in the same process and a occurred
before b
 a is an event of sending a message m and b is the
corresponding receive event at the destination process
 If a → c and c → b for some event c, then a → c

(transitive relation )