INTE2627 Blockchain Technology Fundamentals 1Web

Java Python INTE2627 Blockchain Technology Fundamentals

Assignment 1

1.    Overview

The objective of Assignment 1 is to evaluate your understanding of the topics covered in Lectures 1-3. These topics include an introduction to Blockchain technology fundamentals, the basic building blocks of Blockchain I: Hashes and Merkle  Root, and the basic building blocks of Blockchain II: Digital Signatures. Assignment 1 will focus on developing your basic understanding in building security mechanisms in Distributed Ledger Technology (DLT) for immutable inventory management systems using the concepts from the lecture and tutorial.

Assignment 1 contains one comprehensive problem: Building Security Mechanisms in Distributed Ledger Technology (DLT) for Immutable Inventory Management. This problem requires you to integrate key security measures such as hashes,  Merkle root, and digital signatures to ensure the integrity and trustworthiness of a distributed inventory system. You are required to prepare the solution with a description of the step-by-step processes as a single PDF

Develop the solution of this assignment in an  iterative fashion (as opposed to completing it in one sitting). You should be able to start preparing your answers immediately after Lecture-1 (in Week-1). At the end of each week starting from Week-1 to Week-3, you should be able to solve at least one question.

If there are questions, you must ask via the relevant Canvas discussion forums in a general manner. Overall, you must follow the following special instructions:

● You must fulfill the requirements in the questions.

● You must submit the solutions as a report on CANVAS.

● Upload your solution as a single PDF or Word document in CANVAS.

● Do not put the PDF within the ZIP file.

2. Assessment Criteria

This assessment will determine your ability to:

● Follow the requirements provided in this document and in the lessons.

● Independently solve a problem by using concepts taught over the first four weeks of the course.

● Meeting deadlines.

3.    Learning Outcomes

This assessment is relevant to the following Learning Outcomes:

● CLO 1 : Explain the fundamental concepts of blockchain technology such as its structure, applications, and data immutability.

● CLO 2: Compare and contrast different types of blockchains, including public, private, and permissioned, and analyze their use in various industries.

● CLO 3: Demonstrate a deep understanding of decentralized systems, hash functions, Merkle Root, cryptography, and consensus algorithms, and their role in blockchain technology.

4. Assessment details

Please ensure that you have read Sections 1 to 3 of this document before going further. Assessment details are provided on the next page.

Q1.  Building Security Mechanisms in Distributed Ledger Technology (DLT)  for  Immutable Inventory Management (Marks 20)

Distributed Ledger Technology (DLT) offers a decentralized and distributed approach to maintaining records and man INTE2627 Blockchain Technology Fundamentals Assignment 1Web aging transactions. In inventory management, DLT can ensure that records across multiple locations remain synchronized and trustworthy. This assignment explores the use of  security  mechanisms  such  as hashes, merkle root, and digital signatures to create a secure and reliable DLT-based inventory management system.

Problem Context

We can assume a distributed inventory system spread across four (4) different locations. Each location maintains its own database, which contains records shared among all databases from other locations. It is crucial for all inventories to remain synchronized, with identical records at any given time (see Figure. 1). To achieve this, any new record added to one location's database  must be promptly propagated to all other locations' inventories, ensuring a consistent distributed digital ledger and preventing discrepancies. However, the issue arises where each location cannot ensure the integrity of added records, as there is no mechanism to verify that propagated records remain untampered during transmission. Consequently, the integrity of records across the distributed system cannot be guaranteed, leading to potential discrepancies and data inconsistencies.

Figure 1. Scenario Overview

Assignment details

In this assignment, you are required to demonstrate step-by-step processes for how each inventory system in Figure 1 can add its own data and propagate it to other inventories across different locations. Specifically, show how Inventories A, B, C, and D add a new record and then propagate it to the other inventories (NOTE: please use the same values shown in Figure 1 for each record). Additionally, you must demonstrate how to integrate security measures into the system to ensure the integrity and trustworthiness of the Distributed Ledger Technology (DLT) system.

Ensuring Integrity and Trustworthiness

To ensure the integrity and trustworthiness of this digital ledger, you must integrate the following key security measures: hashes, Merkle root, and simple digital signatures.

● Hashes: Discuss the role of hash functions (e.g., MD5, SHA-256) in detecting tampering or alterations. Explain how you would use hashes to create unique fingerprints for each record in the inventory

system. Provide a detailed theoretical example of generating and verifying a hash for each record added.

● Merkle Root: Discuss the role of the Merkle root in ensuring the consistency of records across all

locations. Provide a step-by-step theoretical guide on how the Merkle root is computed each time a

new record is added to the system. Then, explain how the Merkle root efficiently manages and verifies the integrity of the entire inventory.

● Digital Signatures: Explain the use of simple digital signatures (e.g., RSA) for authentication and

validation. Discuss how digital signatures can create a unique identity for each record, preventing

unauthorized alterations. Demonstrate the process of digitally signing each record and verifying the signature across all locations.

Note: This assignment does not require any implementation (code). It focuses on the theoretical and

conceptual understanding of the processes involved in maintaining a secure distributed ledger system. You must include the necessary diagrams and computation for each process