Value Addition

Course

DIGITAL
EMPOWERMENT
ASSIGNMENT
Blockchain Technology
The Security Initiatives by
The Government of India

Prepared by:
Chirag Bajaj 2023/09/101
Bhuvan Aggarwal 2023/09/127
Riya Kanojia 2023/09/019
Kanisha Garg 2023/09/043
Sejal Sahni 2023/09/155
 INDEX
Page
Contents
Number

Blockchain Technology : 1

Blockchain vs Internet 1

Brief History and Timeline of

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Blockchain

Comparing Blockchain with ordinary

3
ledger

What is Proof of Work? 5

What are the benefits of Blockchain

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Ledger?

Initiatives taken by The Indian

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Government on Cyber Security
Blockchain Technology
Blockchain technology is an advanced database mechanism that allows
transparent information sharing within a business network. A blockchain
database stores data in blocks that are linked together in a chain. The data is
chronologically consistent because you cannot delete or modify the chain
without consensus from the network. As a result, you can use blockchain
technology to create an unalterable or immutable ledger for tracking orders,
payments, accounts, and other transactions. The system has built-in
mechanisms that prevent unauthorized transaction entries and create
consistency in the shared view of these transactions.

Blockchain vs Internet
Comparing blockchain technology to the internet is a complex task, and it's
important to note that they serve different purposes. The internet is a vast
network that enables the exchange of information and communication, while
blockchain is a decentralized and distributed ledger technology that provides a
secure and transparent way to record and verify transactions.
Blockchain has the potential to revolutionize various industries, particularly in
finance, supply chain, healthcare, and more, by offering improved
transparency, security, and efficiency. However, it doesn't replace the internet
but rather complements it by providing a new way to manage and verify data.
The internet has become an integral part of modern life, facilitating global
communication, commerce, and information exchange. Blockchain, on the other
hand, is still evolving and finding its applications. It has the potential to bring
about significant changes, but it is unlikely to replace the internet. Instead, the
two technologies are expected to coexist and work together in various ways to
enhance security and trust in digital transactions and interactions.
In summary, while blockchain may become a transformative technology, it is
not poised to be "bigger" than the internet but rather a critical component within
the broader digital landscape.

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Brief History and Timeline of Blockchain

Satoshi Nakamoto

1991: The foundation for blockchain is laid. Stuart Haber and W. Scott Stornetta
describe a system using cryptographic hashing to secure timestamps for digital
documents, making them tamper-proof.
1992: Haber, Stornetta, and Dave Bayer refine the concept by incorporating
Merkle Trees, which improve efficiency by allowing multiple documents to be
linked within a single block.
1993: Cynthia Dwork and Moni Naor publish a paper on "proof of work"
systems, where complex computations are used to deter spam emails. This
concept would later become crucial in blockchain.
1997: Adam Back invents Hashcash, the first practical application of proof of
work. It aimed to discourage spam by requiring senders to solve a
computationally expensive task.
1998: Nick Szabo, a computer scientist, proposes "bit gold," a decentralized
digital currency with some similarities to Bitcoin, but it never materialized.
2000: Stefan Konst publishes ideas for a cryptographically secured chain of
blocks, including implementation concepts.
2008: Satoshi Nakamoto publishes the Bitcoin whitepaper, outlining a
revolutionary peer-to-peer electronic cash system secured by proof of work.
This marks the birth of the first successful blockchain.

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2009: Nakamoto launches the Bitcoin network, bringing the blockchain concept
to life.
2014: Ethereum emerges as a programmable blockchain platform, allowing for
the development of smart contracts and decentralized applications.
2015 onwards: Blockchain technology gains significant traction across various
industries, with exploration in finance, supply chain management, voting
systems, and more.

Comparing Blockchain with ordinary

ledger

What is an ordinary ledger?

A ledger is a book that maintains such accounts where debits and credits
transactions are posted from the book where the original entries are made. Or
rather, the entries from the original book are updated in this ledger.
A general ledger is used by companies and organizations that use double-
entry bookkeeping. This means that each financial transaction affects at least
two sub-account accounts, and each entry contains at least one credit and one
debit transaction.

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Also known as journal entries, double-entry transactions are posted in two
separate columns, with credit entries on the right and debit entries on the left.
Also, the sum of all credit and debit entries must be equal.
An original ledger records huge financial statements of firms with credits and
debits. This enables a corporation to keep track of its costs and earnings,
contributing a complete understanding of its monetary profile.

What is blockchain ledger?

Blockchain ledger consists of a chain of blocks wherever every block maintains

information or records. These blocks can be called databases, though; databases
are, however, utterly incompatible within the sense that they need central
management and direction practiced over them.
Each previous block in the Blockchain is coupled to the next block. Thereby
creating a linked chain of data scattered in blocks making it tough to change or
revise. Your data is protected in blocks, and each block comprises your data,
hash, and hash of the prior block in encoded structure. Hash is a unique ID like
your thumb impression, linked in the blockchain system in virtual mode. If you
aim to amend the data in any block, then the hash of that block will enhance,
and you will have to make amendments in the next block and follow the same
process in all such blocks, and it will take a lot of time to attain this process. It
takes 10 minutes to convert or hash a block, but if the number of blocks is in the
millions, it can take more than 100 years.

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What is Proof of Work?
Cryptocurrencies do not have centralized gatekeepers to verify the accuracy of
new transactions and data that are added to the blockchain. Instead, they rely
on a distributed network of participants to validate incoming transactions and
add them as new blocks on the chain.
Proof of work is a consensus mechanism to choose which of these network
participants—called miners—are allowed to handle the lucrative task of
verifying new data. It’s lucrative because the miners are rewarded with new
crypto when they accurately validate the new data and don’t cheat the system.
The “work” in proof of work is key: The system requires miners to compete
with each other to be the first to solve arbitrary mathematical puzzles to prevent
anybody from gaming the system. The winner of this race is selected to add the
newest batch of data or transactions to the blockchain. Winning miners only
receive their reward of new cryptocurrency after other participants in the
network verify that the data being added to the chain is correct and valid.

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What are the benefits of Blockchain Ledger?
Distributed:

Standard Databases have a centralized pattern that revolves around a major

point of power. Once it is destroyed, the whole system ceases to function. On
the other hand, blockchain ledger has a distributed structure and no main
control point. This protects the system from corrupted nodes. Blockchain
Ledger does not store any of its data at the centralized location. Instead, a
network of computers replicates and distributes Blockchain. Each computer
updates its Blockchain to real-time to show the insertion of a new block.

Secure:
The blockchain ledger is made out of digital blocks which contain information
of every transaction ever made on the system. Once the data has the system that
rejects the tampered information and remains secure, this makes the data
immutable.

Immutable:
This data can’t be changed, and a new block is created whenever an update
takes place. That means they’re inflexible and can’t be modified by any means
or deleted by anyone. Once recorded, the data lives within the block forever in
its essential feature!

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Transparent:
So many people acquire products without understanding their concepts. On the
other hand, the Blockchain allows consumers to access the whole history
throughout its supply. It is available and allows different parties to share
information, ensuring a smooth and fast flow of data.

Traceable:
Once the records get assessed before a node gets added into the ledger, thus it’s
simpler to track or trace any data. This is a common usage of the blockchain
ledger. That’s why many industries are using it; specifically, Blockchain for the
supply chain is widely common.

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Initiatives taken by The Indian
Government on Cyber Security

1. The Indian Computer Emergency Response Team (CERT-In)

• The advancement in the Indian Computer Emergency Response Team
(CERT-In), which operates as the national agency to address the country’s
cyber security, has helped reduce the rate of cyber-attacks on government
networks.

2. Cyber Surakshit Bharat

• Aiming to strengthen the cybersecurity ecosystem in India and following
the Government’s vision of a “digital India,” the Ministry of Electronics
and Information Technology (MeitY) has launched the Cyber Surakshit
Bharat initiative.
• The program was in partnership with the National Electronic Governance
Division (NeGD).

3. National Critical Information Infrastructure Protection Center (NCIIPC)

• NCIIPC is a central government establishment, formed to protect critical
information about our country, which has an enormous impact on
national security, economic growth, and public health care.
NCIIPC has mainly identified the following as “critical sectors”-
• Power & Energy
• Banking, Financial Services & Insurance
• Telecom Transport
• Government
• Strategic & Public Enterprises

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4. Appointment of Chief Information Security Officers
• The Indian Government has published a written guideline for CISOs of
government organizations, outlining best practices for safeguarding apps,
infrastructure, and compliance.
• Chief Information Security Officers (CISOs) can identify and document
the security requirements that may arise with each technical innovation.

5. Personal Data Protection Bill

• The most important one for Indian citizens is the approval of the Personal
Data Protection Bill by the Union Government to protect Indian users
from global breaches, which focuses on data localization.
• The bill involves the storage and processing of any critical information
related to people only in India.
• It strictly states that individuals’ sensitive personal data is to be stored
locally; however, it can be processed abroad under certain conditions.
• The bill also aims to make social media companies more accountable and
push them to solve the spread of offensive content.

6. Cyber Swachhta Kendra (Botnet Cleaning and Malware Analysis Centre)

• The “Digital Swachhta Kendra” (Botnet Cleaning and Malware Analysis
Centre) is a part of the Government of India’s Digital India drive,
overseen by the Ministry of Electronics and Information Technology
(MeitY), determined to make secure cyberspace all through India by
distinguishing botnet contaminations and advising, empowering
cleaning, and end-client security systems to forestall new diseases.
• The “Cyber Swachhta Kendra” (Botnet Cleaning and Malware Analysis
Centre) is intended to address the goals of the “National Cybersecurity
Policy,” which calls for the development of a secure cybernetic ecosystem
in the country.

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 • The centre works in close coordination and collaboration with Internet
service providers and antivirus/product companies.
• The website provides users with information and tools to help them
protect their systems/devices. Following Section 70B of the Information
Technology Act 2000, this centre is run by the Indian Computer
Emergency Response Team (CERT-In).

7. National Cyber Security Policy, 2013

• The Policy’s goal is to create safe and resilient cyberspace for citizens,
businesses, and the Government.
• The mission is to provide protection to cyberspace information and
infrastructure, develop capabilities to prevent and respond to
cyberattacks, and minimize damage through coordinated efforts of
institutional structures, people, processes, and technology.
• To create a workforce of 500,000 trained cybersecurity professionals in the
next 5 years through capacity building, skills development and training.
• Through appropriate legislative intervention, enable effective cybercrime
prevention, investigation, and prosecution, as well as the enhancement of
law enforcement capabilities.

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