PRE-SYNOPSIS WRITING

On BLOCKCHAIN TECHNOLOGY: PRIVACY AND SECURITY OF

DATA

The Pre- Synopsis is submitted in fulfillment of the Dissertation requirement of

School of law, Christ (Deemed to be University)

SCHOOL OF LAW

Christ University, Delhi NCR

2021-2022

Submitted by: Mentor/Guide-

DIVYA ARORA Dr. Vikalp Shrivastava

Register No: 21222204 (Assistant Professor School of Law)

Class: 1LLMCCLNCR

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 TABLE OF CONTENT

S.NO. TOPIC
1. INTRODUCTION

2. STATEMENT OF PROBLEM4rt

3. RESEARCH QUESTION

4. RESEARCH OBJECTIVES

5. RESEARCH METHODOLOGY

6. LITERATURE REVIEW

7. SCHEME OF STUDY

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 INTRODUCTION

After the Internet, the blockchain technology is viewed as the huge changing innovation, as it is
rethinking the way we work and live. In 2008, the possibility of blockchain was first presented
by the scientist advanced digital money known as bitcoin, where the blockchain is a basic piece
of its working. Various digital forms of money i.e., crypto currencies with much progressed
highlights have appeared from that point forward, for example, the Ethereum which presents
smart contracts1. The Blockchain is arising as one of the most hopeful and sharp innovations of
online protection. In its germinal state itself, the innovation has effectively supplanted financial
exchange frameworks in different associations and can possibly redo heterogeneous plans of
action in various ventures. In spite of the fact that it guarantees a protected dispersed system to
work with sharing, trading and coordination of data across every one of the clients and outsiders,
it is significant for the organizers and chiefs to examine it top to bottom for its reasonableness in
their industry furthermore, business applications. The blockchain ought to be conveyed provided
that it is relevant and furnishes security with better open doors in getting expanded income and
decreases in cost. For a long time, we have been managing data trade, and assignment of cash
and other resources through web-based exchanges by means of the Internet, where every one of
these exchanges included a confided in delegate. These delegates are mindful to ensure a solid
trade and are responsible in the event of any disappointments or security breaks. In a change in
outlook, the blockchain takes out the need of any focal authority between numerous gatherings
executing monetary and information exchanges by utilizing an ethical, changeless and
decentralized public record. This public record is a circulated information base that is shared
across all the organization members. It is a carefully designed, cryptographically got, and long-
lasting record of the relative multitude of exchanges that at any point occurred among the
members. They can see the exchanges identified with them whenever they need, yet once
approved and added to the blockchain, the exchanges can neither be erased nor adjusted, which
makes the blockchain unchanging and irreversible. Every exchange is confirmed by the members
through pre-characterized approval and agreement systems without confirmation or validation by
any focal power.

As the properties and basic conventional establishments of blockchain advances are as yet under
banter, in commonsense terms new blockchains with security and protection claims appear to be
coming out progressively quickly. Presently like never before, the scholastic local area ought to
draw in to isolate the good product from the refuse, the blockchain tricks from the significant
commitments. Blockchain innovations are currently essentially industry driven, loaning the field
a somewhat unexpected point in comparison to different spaces of exploration: With Bitcoin and
variations being created by experts rather than cryptographers, the trust will in general be put not
in conventional evidences and properties but rather in down to earth protection from assaults

1S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system.”, https://bitcoin.org/bitcoin.pdf, Last visited 11
Nov 2017.

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dependent on normal information and experience by specialists. What follows from this plan is a
steady smoothness of proposed arrangements just as an absence of normal, brought together plan
decisions and standards. Hence, there is a plenty of arrangements that each guarantee to be the
best arrangement. It will be intriguing to see how the field advances and what winds up being
picked as the brilliant norm, yet at the same any guarantee of solidness is in the far off future,
particularly in more exploratory blockchains like side-chains.

Goldwasser and Micali’s “Probabilistic Encryption”2 formalized the notions of security in terms
of a rigorous definition of semantic security. Researchers into blockchain technologies struggle
even with the term itself: Is the term “blockchain” singular or plural? Does it refer to Bitcoin or
to any system with a decentralized ledger such as Ethereum? Would a ledger operating without
mining, such as Hyperledger, also count? In detail, does “the blockchain” refer to to any linked
list built out of pointers that are cryptographic hashes, or does it refer to particular design choices
done by Bitcoin? Possibly better, more productive information structures could be proposed to
supplant the blockchain itself while as yet satisfying its job as a circulated public record, and
different plans would discard the job of a public record in favor of better protection properties.
More work on formalizing terms, for example, the blockchain, side-chains, public record,
verification of work, evidence of stake, and different parts and plan decisions should be made,
thus the contributed papers themselves fluctuate in their utilization of wording around
blockchains.

In the contending scene economies, innovative headway is important to stay ahead in the race.
India being a non-industrial nation ought to support the utilization of new arising advances to
help the working of its framework. The mechanical progression can get change the way of
leading tasks in various areas of the economy. With the innovative changes in the framework, the
nation will perform well on the planet. This will empower the young people of the country to be
important for the mechanical upset. The further examination in the potential outcomes of the
utilizations of the blockchain innovation can prompt the quicker development of economy of the
country. Since the innovation is completely computerized and doesn't permit human intercession,
it tends to be a successful instrument in battling defilement. Corruption has been a significant
issue in the nation like India. It is the justification behind the framework disappointment. It limits
the improvement of a general public and progression of the people. The innovation, whenever
utilized appropriately, can acquire mechanical transformation the world. It is about time to
energize the utilization of the blockchain innovation. The innovation is creating and working on
step by step and could be applied to different conditions where a few types of exchanges are
involved3.

2 Shafi Goldwasser and Silvio Micali. Probabilistic encryption. Journal of computer and system sciences,
28(2):270–299, 1984.
3 Sam Daley, ‘25 Blockchain Applications & Real-World Use Cases Disrupting The Status Quo’ (builtin.com, 25

March 2020) <https://builtin.com/blockchain/blockchain-applications> accessed 30 Jan 2021

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 STATEMENT OF PROBLEM

With the point of discussion 'information security through blockchain' being an arising research
field with an unavoidable less thorough scholarly discipline, one can expect that the past
examinations might have been based, pretty much, on specific subject chose by the leader
specialists. For instance, a specific report might cover two spaces of blockchain calculation and
blockchain information security. At this beginning phase of the blockchain publicity cycle, it
may not be clear with respect to what classification, meta information, or catchphrase would best
depict that specific examination. The current review gives an overall topic called 'blockchain
information security and protection', and inside that primary class, different sub-classifications,
for example, 'blockchain (security) applications', 'blockchain (security) calculation', and other
important classifications are fitted.

A blockchain is a common data set that records exchanges between two gatherings in a
changeless record. Blockchains record and affirm pseudonymous responsibility for existing coins
inside a digital money environment at some random time through cryptography. After an
exchange is approved and cryptographically confirmed by different members or hubs in the
organization, it is made into a "block" on the blockchain. A square contains data about the time
the exchange happened, past exchanges, and insights concerning the exchange. Once recorded as
a square, exchanges are requested sequentially and can't be adjusted. This innovation rose to
notoriety after the making of Bitcoin, the principal use of blockchain innovation, which has since
catalyzed other cryptographic forms of money and applications. Because of its tendency of
decentralization, exchanges and information are not checked and claimed by one single
substance as they are in average frameworks. Rather, the legitimacy of exchanges are affirmed
by any hub or PC that approaches the organization. Blockchain innovation gets and confirms
exchanges and information through cryptography. With the ascent and far reaching reception of
innovation, information breaks have become successive. Client data and information are
frequently put away, misused, and abused, making a danger individual protection. Many are
pushing for the far and wide reception of blockchain innovation for its capacity to expand client
security, information assurance, and information proprietorship.

The blockchain innovation faces a couple of future openings just as difficulties. Albeit critical,
the difficulties can be overwhelmed with the development and upgrade of the innovation later
on. This will prompt a plenty of future freedoms for blockchain to be executed and
acknowledged. A challenge can be defined as an implicit demand for proof. Some of the major
challenges currently faced by blockchain technology are listed below-

1. SCALABILITY- The size of the squares in blockchain may make an issue of exchange
delay if there should arise an occurrence of little exchanges, as diggers would normally
like to approve exchanges with greater value-based charges. As mentioned in4, the

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 proposed solutions to the scalability issue of blockchains can be categorized in two
categories: storage optimization and redesigning of blockchains.

2. PRIVACY LEAKAGE- The blockchain is for the most part powerless against spillage
of value-based protection because of the way that the subtleties and balances of all open
keys are noticeable to everybody in the organization. The proposed answers for
accomplish secrecy in blockchains can be comprehensively arranged into blending
arrangement and mysterious arrangement.

3. SELFISH MINING- Selfish mining is one more challenge looked by blockchains. A

block is helpless to cheating assuming a little part of hashing power is utilized. In self-
centered mining, the diggers keep the mined squares without broadcasting to the organize
and make a private branch which gets communicated solely after specific necessities are
met.

4. PERSONAL IDENTIFIABLE INFORMATION- Personal Identifiable Information

(PII) is any data that can be utilized to remove a singular's personality5.

5. SECURITY- Security can be discussed in terms of confidentiality, integrity and

availability as discussed in the article6. It is consistently a test in open organizations, for
example, public blockchains. Privacy is low in conveyed frameworks that impersonate
data over its organization. Respectability is the metier of blockchains in spite of the fact
that there exist many difficulties. Accessibility in blockchains is high as far as lucidness
because of wide replication contrasted with composed accessibility. The 51% larger part
assault is more hypothetical in an enormous blockchain network as a result of these
properties.

4 Z. Zheng, S. Xie, H. Dai, X. Chen and H. Wang, An overview of blockchain technology: Architecture, consensus, and
future trends, in Big Data (BigData Congress), 2017 IEEE International Congress on, IEEE, 2017, 557–564.
5 A. S. Elmaghraby and M. M. Losavio, Cyber security challenges in smart cities: Safety, security and privacy, Journal

of Advanced Research, 5 (2014), 491–497

6 J. Mendling, I. Weber, W. V. D. Aalst, J. V. Brocke, C. Cabanillas, F. Daniel, S. Debois, C. D. Ciccio, M. Dumas, S.

Dustdar et al., Blockchains for business process management-challenges and opportunities, ACM Transactions on
Management Information Systems (TMIS), 9 (2018), Article No. 4

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 RESEARCH QUESTIONS

1. What are the challenges concern with privacy and cyber security in Blockchain
Technology?
2. How useful Decentralized Security Framework is for Blockchain Technology?
3. What are the Privacy risks of web payments involved via Crypto-currencies?
4. What are the Privacy and Security Techniques used in Blockchain Technology?
5. What are the Regulatory frameworks on blockchain technology in India in comparison
with other nations?
6. What are the blockchain's impacts on the Internet of Things (IoT) security?

RESEARCH OBJECTIVE

The basic problem of all the systems is middlemen intervention which leads to increase in the
corruption and complexities in the system that the government faces in controlling and managing
the records and other operations. The use of a technology can bring transformation to the manner
of functioning of various institutions in a country. The countries can adopt the technology for
multiple projects in various sectors, if there are proper set of rules and regulations involved. New
projects are emerging in the International market based on the application of blockchain
technology, which desires for a strong security base. The developers are continuously putting
efforts to secure the technology. To study the concepts involved in securing the technology and
the emerging projects based on the technology in the market is an interesting area of research.

1. To research and recognize laws of Blockchain Technology in respect to data privacy and
security.
2. To distinguish and analyze various types of Regulatory framework for blockchain
technology security.
3. To analyze the issues concern with privacy and cyber security in blockchain technology.
4. To research and recognize the various privacy risks of web payments involved via
crypto-currencies.
5. To research and recognize the guidelines in respect with the Data privacy and Security of
Blockchain technology.
6. To research the impact of blockchain technology over internet of things (IOT) security.

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 RESEARCH METHODOLOGY

The Blockchain Technology, with the increasing popularity, is growing with fast pace in various
other sectors along with the financial sector. It is problematic to estimate the market of
developed projects due to non-availability of the holistic public database or repository for it.
Hence, the review cannot be claimed to be exhaustive or complete.
To systematically review the research topic, primarily, the relevant literature was reviewed. The
topic is novel and emerging and hence, there are only suggestive publications about how
Blockchain Technology can be used as an effective tool for governance and data security and
privacy purpose. Besides literature, I am focusing for analysis on various blockchain projects
adopted by different ventures.

The data for the research is based on Doctrinal legal research. The data is derived basically from
secondary sources. The secondary sources include internet, journals, books, and publications.
The data was properly analysed and interpreted to draw conclusions. The data was collected after
gaining sufficient knowledge about securing the data information and privacy aspects of the
technology. The current blockchain based projects and examples from the existing US cases are
taken into consideration to discuss and elaborate the purpose of research work.

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 LITERATURE REVIEW

I started my research by searching for the term ‘PRIVACY AND SECURITY OF DATA IN
BLOCKCHAIN TECHNOLOGY’ on the available Internet sources. I came across few books
and a lot many articles and research papers on the bitcoin and blockchain technology. Since the
bitcoin was the first project of the blockchain technology, hence, most people relate the
blockchain technology and the bitcoin to be the same things. Also, the maximum articles and
research papers on blockchain technology are written with respect to bitcoin and other
cryptocurrencies. I selected 5 Articles and research papers related to my research area from all
available articles, to conduct the subject research. From these Articles, I, firstly analysed the
background and history of the blockchain technology. After accumulating all the relevant
information on the history of the blockchain, I moved towards understanding the concept and
functioning of blockchain technology. I read all the articles on the blockchain and understood the
concept of the technology thoroughly. I used the information given under various sub-heads that
were relevant to the topic for my research work.

ARTICLES/RESEARCH PAPERS-

RESEARCH PAPERS-

Harry Halpin and Marta Piekarska, Introduction to Security and Privacy on the
Blockchain

The author pays regard to how the investigation of safety and protection on the blockchain is
becoming quick. They desire to additionally include the security and protection research local
area in the more specially appointed and casual universe of blockchain software engineers to
handle the protection and security properties of both Bitcoin and its fundamental blockchain
innovation. A commonly helpful cycle between genuine code and scholarly exploration is
required, where the scholarly world would acquire novel issues to settle and designers would be
educated regarding answers for issues they would somehow or another view as insoluble. It is
conceivable even that in case there are crucial security and protection compromises identified
with versatility and decentralization, these could be investigated utilizing game hypothetical
methods.

Deepak Puthal, Nisha Malik, Saraju P. Mohanty, Elias Kougianos, and Chi Yang, The
Blockchain as a Decentralized Security Framework

The author rely upon the fact that the blockchain technology is a powerful arrangement of the
exceptionally old agreement issue. Utilizing cryptography (hashes and computerized marks) and
a framework that rewards members, the champ of a "cryptographic lottery" receives the benefits
while, simultaneously, guarantees the legitimacy of the whole record. Simultaneously, the
blockchain is certifiably not at all inclusive answer for any issue having to do with exchange

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confirmation and security: its execution should be embraced solely after cautious assessment of
the necessities of the application. The effect of the blockchain in current culture is problematic
and the results of its far reaching reception are as yet unclear.

Kshetri, Nir (2017)."Blockchain’s roles in strengthening cybersecurity and protecting

privacy " Telecommunications Policy, 41(10), pp. 1027-1038

Generally speaking, the author relies on the developing instruments and powers, where a
promising future can be predicted for the utilization of blockchain in tending to different parts of
safety and security. Among the most encouraging is that people can handle their very own
information. For example, after certifiers, for example, an administration office furnish the
subject with a carefully marked duplicate of an archive (e.g., driving license), and put it on
blockchain, they presently don't approach the information (Mainelli, 2017). A portion of the key
security challenges related with the cloud can be tended to by utilizing the decentralized,
independent, and trustless capacities of blockchain. Blockchain guarantees that each party is
considered responsible for its singular jobs in the general exchange and in this manner forestalls
questions. Particularly blockchain's decentralized, and agreement driven designs are probably
going to give safer methodology when the organization size increments dramatically. As a
blockchain organization might incorporate various kinds of members, associations' decision
among permissioned and permission-less blockchain is an element of the quantity of members,
the worth of resources being exchanged or traded and the significance of approving members
with shifting accreditations.

Archana Prashanth Joshi, Meng Han and Yan Wang, A SURVEY ON SECURITY AND
PRIVACY ISSUES OF BLOCKCHAIN TECHNOLOGY, Kennesaw State University,
Marietta, GA 30060, USA

The author thoroughly discusses about the concept of Blockchain Technology, different models
involved, its working and structure along rith the opportunities and challenges faced by the
technology. With the quickness of its development and advancement, the author believes that
blockchains will before long turn into an extremely normal and notable peculiarity. Blockchain
can measure up to the Internet years and years prior in specific degree. Profoundly blockchains is
secure and steady, bit by bit many significant applications that require security and non-
disavowal will continue on this innovation. In spite of the fact that there still exist a few limits in
blockchains and numerous creative applications are hard to be carried out, blockchain is
probably going to turn into the innovation that everyone would move towards with its
development.

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ARTICLES-

Gautam Ratauri, Blockchain Technology Ensuring Data Security and Immutability

The author gives a brief idea about the functioning of Blockchain Technology and how it is one
of the most secure data protection technologies. While the technology also challenges the
vulnerabilities. The author discusses about how helpful it is for the users of this technology to
secure the data, which is hard to hack or attack. The technology is one of the best distributed
ledger technology where it’s most fundamental attributes are immutability and using such
technology can improve the relationship between technology and user’s privacy.

Kelsie Nabben, Blockchain Security as “People Security”: Applying Sociotechnical Security

to BlockchainTechnology

The author reframe "blockchain security" as "people security," researchers used a sociotechnical
security paradigm to examine the social, software, and infrastructure layers of blockchain
applications. The author shows that various blockchain topologies, participants, and applications
violate a number of security and trust principles. Due to their centralized structure, private
blockchains have major difficulties in guaranteeing the interests of users in macro-social
environments, according to the findings.

SCHEME OF STUDY

CHAPTER 1: INTRODUCTION

CHAPTER 2: BACKGROUND

CHAPTER 3: LITERATURE REVIEW

CHAPTER 4: IMPORTANT DEFINITIONS

CHAPTER 5: SECURITY AND PRIVACY ON BLOCKCHAIN

CHAPTER 6: BLOCKCHAIN AS A DECENTRALIZED SECURITY FRAMEWORK

CHAPTER 7: BLOCKCHAIN CYBER-SECURITY VULNERABILITIES

CHAPTER 8: CONCLUSION AND SUGGESTIONS

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