8 Distributed Ledger Technology
429
is invalidated, it is possible that the attacker has already received the output of the
first transaction. This results in a double-spending.
As a long-term security problem for the Internet, the distributed denial-of-service
(DDoS) attack is still a threat to blockchain networks. DDoS attacks create a
huge amount of traffic on blockchain networks so that valid transactions cannot
be processed, giving opportunities for invalid transactions to become successful.
On the other hand, blockchain networks can be used by criminals to commit
crimes. One such example is ransomware. A typical ransomware is sent out as an
email attachment. If the email receiver clicks the attachment, the ransomware starts
running as a background process on the receiver’s computer system. What it does
is that it encrypts the files in the receiver’s system so that the victim loses access
to the contents of the files. The ransomware demands the receiver to pay funds to a
blockchain account of the attacker within a given time frame. Otherwise, there will
be no way to restore the encrypted files forever.
Blockchains can also be used by criminals to run underground markets. Bitcoins
are used as the currency and hidden services for such markets. Criminals use
underground markets to sell drugs, weapons, and other controlled items. Due to
blockchain’s anonymous nature, it is difficult to track down the sellers and deals.
8.11 Summary
This chapter discusses distributed ledger technologies (DLTs) which include
blockchain and directed acyclic graphs. The chapter discusses the benefits of
DLTs when they are adopted by current information systems. Detailed descriptions
are given on how blockchain and DAG works and what the differences between
blockchain and DAG are. The chapter also discusses the Internet of Things
(IoT), the weaknesses of current IoT system implementations, why blockchain
can help overcome the weaknesses of IoT, and how to integrate blockchain and
IoT. Applications of DLTs and practical considerations of DLTs in enterprise
environments are also discussed. Vulnerabilities of blockchain are described as
well.
References
1. S. Nakamoto, Bitcoin: A peer-to-peer electronic cash system (2008), [Online]. Available:
https://bitcoin.org/bitcoin.pdf. Accessed 23 Mar 2019
2. S. Haber, W.S. Stornetta, How to time-stamp a digital document. J. Cryptol. 3(2), 99–111
(1991)
3. D. Chaum, Blind signatures for untraceable payments, in Advances in Cryptology Proceedings
of Crypto 82, ed. by D. Chaum, R. L. Rivest, A. T. Sherman, (Plenum (Springer-Verlag), New
York, 1983), pp. 199–203
429
is invalidated, it is possible that the attacker has already received the output of the
first transaction. This results in a double-spending.
As a long-term security problem for the Internet, the distributed denial-of-service
(DDoS) attack is still a threat to blockchain networks. DDoS attacks create a
huge amount of traffic on blockchain networks so that valid transactions cannot
be processed, giving opportunities for invalid transactions to become successful.
On the other hand, blockchain networks can be used by criminals to commit
crimes. One such example is ransomware. A typical ransomware is sent out as an
email attachment. If the email receiver clicks the attachment, the ransomware starts
running as a background process on the receiver’s computer system. What it does
is that it encrypts the files in the receiver’s system so that the victim loses access
to the contents of the files. The ransomware demands the receiver to pay funds to a
blockchain account of the attacker within a given time frame. Otherwise, there will
be no way to restore the encrypted files forever.
Blockchains can also be used by criminals to run underground markets. Bitcoins
are used as the currency and hidden services for such markets. Criminals use
underground markets to sell drugs, weapons, and other controlled items. Due to
blockchain’s anonymous nature, it is difficult to track down the sellers and deals.
8.11 Summary
This chapter discusses distributed ledger technologies (DLTs) which include
blockchain and directed acyclic graphs. The chapter discusses the benefits of
DLTs when they are adopted by current information systems. Detailed descriptions
are given on how blockchain and DAG works and what the differences between
blockchain and DAG are. The chapter also discusses the Internet of Things
(IoT), the weaknesses of current IoT system implementations, why blockchain
can help overcome the weaknesses of IoT, and how to integrate blockchain and
IoT. Applications of DLTs and practical considerations of DLTs in enterprise
environments are also discussed. Vulnerabilities of blockchain are described as
well.
References
1. S. Nakamoto, Bitcoin: A peer-to-peer electronic cash system (2008), [Online]. Available:
https://bitcoin.org/bitcoin.pdf. Accessed 23 Mar 2019
2. S. Haber, W.S. Stornetta, How to time-stamp a digital document. J. Cryptol. 3(2), 99–111
(1991)
3. D. Chaum, Blind signatures for untraceable payments, in Advances in Cryptology Proceedings
of Crypto 82, ed. by D. Chaum, R. L. Rivest, A. T. Sherman, (Plenum (Springer-Verlag), New
York, 1983), pp. 199–203