SOME CONCEPTS
BLOCKCHAIN: It is a code—a digital ledger software code. A ledger is a collection of financial transactions which records the exchange between parties. It shows what comes in and to whom
and what goes out and to whom. Blockchain collects all this information in digital form. It is a decentralised system that can be created and updated anywhere. As the name suggest, every block of data is connected to another block in a chain format. Blockchain doesn’t mean digitisation of a physical ledger, but it is another way to record a ledger.
Blockchain is the technology underlying the use of bitcoins. It is an architecture on which you can build applications for different needs.
At present, for any transaction, a reconciliation is required to ensure that the transaction is genuine. Blockchain built applications don’t need reconciliation of any transactions because all information will be readily available and verified for anyone to see if he is part of a particular blockchain ecosystem.
Across the world, telecom companies, financial institutions, information technology companies and startups are testing how to use blockchain in various sectors. In the banking sector, banks and IT companies are exploring ways to use blockchain in payments, remittance and security. There are companies that are trying to build applications on top of blockchain for other sectors as well such as property, precious metals and airlines.
BITCOIN : Bitcoin is digital currency which was founded in 2008. It is designed for secure financial transactions that require no central authority, no banks and no government regulators. Bitcoin would let transacting parties remain anonymous, keep transactions very secure, and eliminate middlemen fees.
What does it hope to achieve? What drove its initial development was its purely digital existence, away from the control of government regulators. The values of other currencies can rise and fall when a central bank decides to print more paper money. But since Bitcoin is digital and there is a limited number of them, the expectation is that it won’t be prone to such devaluation.
How safe is Bitcoin? Speculators and money launderers have already found much to like about the anonymous digital currency, and that has forced the government to play catch-up. While Bitcoin users need a secret, numerical key to unlock their accounts, the anonymity of the system is vulnerable when the virtual currency is exchanged for dollars. Speculators have hoarded Bitcoin just because there is a limited number of them. And when banks around the world decided to shun the currency, its value took a tumble. The people and businesses that make transactions using Bitcoin, therefore, have dealt with their share of disruption.
What is the controversy surrounding this currency? Since the founding of the cryptocurrency, Bitcoin’s inventor or inventors have been shrouded in mystery. It is believed that it was first introduced by a Japanese programmer who went by the name of Satoshi Nakamoto. On May 2, 2016, Australian tech entrepreneur Craig Wright claimed that he was the founder of the virtual currency, ending years of mystery. As Bitcoins require no central authority, banks, or governmentregulators they become attractive to off-the-grid activities, those who want to evade tax authorities, and criminals. Hence governments and central banks have been vocal about the risks involved in dealing with virtual currencies.
BITCOIN:
Latest development : Mr.Craig Steven Wright, an Australian entrepreneur and self-declared cyber security expert, revealed his identity as Satoshi Nakomoto, the inventor of Bitcoin alternative currency and blockchain technology. Though it is not clear if his claim is indeed true, the story has shifted at cyberspeed from bitcoins to blockchain technology.
How has Bitcoin evolved in India? In April this year, an IT company in Mysuru became the target of a ‘denial-of-service’ attack, the attackers demanded Bitcoins in return for sharing the key to restore the company’s computer systems. India’s biggest Bitcoin trading platform, BuySellBitCo.in, recently suspended its operations, citing a recent Reserve Bank of India public advisory that highlighted the risks involved in dealing with virtual currencies. Bitcoin and other virtual currencies have begun to gain widespread acceptance in India, despite poor Internet penetration and a natural scepticism of assets not backed by tangible entities such as land. The central bank had issued a notice on the risks involved and added that it could be used for money laundering and funding terrorism activities. It stopped short, however, of issuing a ban or any other restrictions.
CRYPTO – CURRENCY: Crypto currency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
CLOUD COMPUTING is a type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications. Cloud computing is comparable to grid computing, a type of computing where unused processing cycles of all computers in a network are harnesses to solve problems too intensive for any stand-alone machine.
In cloud computing, the word cloud (also phrased as ‘’the cloud’’) is used as a metaphor for “the internet,” so the phrase cloud computing means “ a type of Internet-based computing,” where different services – such as servers, storage and applications – are delivered to an organization’s computers and devices through the internet.
The goal of cloud computing is to apply traditional super computing, or high-performance computing power, normally used by military and research facilities, to perform tens of trillions of computations per second, in consumer-oriented applications such as financial portfolios, to deliver personalized information, to provide data storage or to power large, immersive online computer games.
To do this cloud computing uses networks of large groups of servers typically running low-cost consumer PC technology with specialized connections to spread data-processing chores across them. This shared IT infrastructure contains large pools of systems that are linked together. Often, virtualization techniques are used to maximize the power of cloud computing.
CRYPTOGRAPHY:
Public key cryptography or asymmetric cryptography, is any cryptographic system that uses two kinds of keys. Public keys may be disseminated widely, while private keys are known to the owner only.
In public key encryption system, any person can encrypt a message using the public key (better imagined as a lock) of the receiver and leave it on a public server or transmit it on a public network. Such a message can be decrypted only with the receivers private key.
Public key infrastructure (PKI) is a set of roles, policies and procedures needed to create, manage, distribute, use, store and revoke digital certificate and manage public-key encryption.
A Typical PKI consists of hardware, software, policies and standards to manage the creation, administration, distribution and revocation of keys and digital certificates are the heart of PKI, as they affirm the identity of the certificate subject and bind that identity to the public key contained in the certificate.
RSA – Relatively slow algorithm is an algorithm used by modern computers to encrypt and decrypt messages. It is an asymmetric cryptographic algorithm. Asymmetric means that there are two different keys. This is also called PKC, because one of the key can be given to everyone.
A typical PKI includes the following elements.
A trusted party, called a certificate authority (CA), act as root of the trust and provides services that authenticate the identity of individuals, computers and other entities. CA issues the digital certificates to individuals and entities. It sighs these certificates using its private keys. Its public key is made available to tall interested parties.
A registration authority (RA) often called a subordinate CA, certified by a root of CA to issue certificates for specific uses permitted by the root.
A Certificate database which stores certificate requests and issues and revokes certificates.
A certificate store, which resides on a local computer as a place to store issued certificates and private keys.
Digital signature (not to be confused with the digital certificate) are the public key primitives of message authentication. In the physical world, It is common to use handwritten signature on handwritten on the handwritten or printed message. They are used to bind the signatory to the message. Similarly, a digital signature is a technique that binds a person/entity to the digital data.
It is also a mathematical technique used to validate the authenticity and integrity of a message, software or digital document.
Digital certificates are a means by which consumers and business can utilize the security application of PKI. PKI comprises of the technology to enable secure e-commerce and internet based communication. It is also referred to as public key certificate.
BLOCKCHAIN: It is a code—a digital ledger software code. A ledger is a collection of financial transactions which records the exchange between parties. It shows what comes in and to whom
and what goes out and to whom. Blockchain collects all this information in digital form. It is a decentralised system that can be created and updated anywhere. As the name suggest, every block of data is connected to another block in a chain format. Blockchain doesn’t mean digitisation of a physical ledger, but it is another way to record a ledger.
Blockchain is the technology underlying the use of bitcoins. It is an architecture on which you can build applications for different needs.
At present, for any transaction, a reconciliation is required to ensure that the transaction is genuine. Blockchain built applications don’t need reconciliation of any transactions because all information will be readily available and verified for anyone to see if he is part of a particular blockchain ecosystem.
Across the world, telecom companies, financial institutions, information technology companies and startups are testing how to use blockchain in various sectors. In the banking sector, banks and IT companies are exploring ways to use blockchain in payments, remittance and security. There are companies that are trying to build applications on top of blockchain for other sectors as well such as property, precious metals and airlines.
BITCOIN : Bitcoin is digital currency which was founded in 2008. It is designed for secure financial transactions that require no central authority, no banks and no government regulators. Bitcoin would let transacting parties remain anonymous, keep transactions very secure, and eliminate middlemen fees.
What does it hope to achieve? What drove its initial development was its purely digital existence, away from the control of government regulators. The values of other currencies can rise and fall when a central bank decides to print more paper money. But since Bitcoin is digital and there is a limited number of them, the expectation is that it won’t be prone to such devaluation.
How safe is Bitcoin? Speculators and money launderers have already found much to like about the anonymous digital currency, and that has forced the government to play catch-up. While Bitcoin users need a secret, numerical key to unlock their accounts, the anonymity of the system is vulnerable when the virtual currency is exchanged for dollars. Speculators have hoarded Bitcoin just because there is a limited number of them. And when banks around the world decided to shun the currency, its value took a tumble. The people and businesses that make transactions using Bitcoin, therefore, have dealt with their share of disruption.
What is the controversy surrounding this currency? Since the founding of the cryptocurrency, Bitcoin’s inventor or inventors have been shrouded in mystery. It is believed that it was first introduced by a Japanese programmer who went by the name of Satoshi Nakamoto. On May 2, 2016, Australian tech entrepreneur Craig Wright claimed that he was the founder of the virtual currency, ending years of mystery. As Bitcoins require no central authority, banks, or governmentregulators they become attractive to off-the-grid activities, those who want to evade tax authorities, and criminals. Hence governments and central banks have been vocal about the risks involved in dealing with virtual currencies.
BITCOIN:
Latest development : Mr.Craig Steven Wright, an Australian entrepreneur and self-declared cyber security expert, revealed his identity as Satoshi Nakomoto, the inventor of Bitcoin alternative currency and blockchain technology. Though it is not clear if his claim is indeed true, the story has shifted at cyberspeed from bitcoins to blockchain technology.
How has Bitcoin evolved in India? In April this year, an IT company in Mysuru became the target of a ‘denial-of-service’ attack, the attackers demanded Bitcoins in return for sharing the key to restore the company’s computer systems. India’s biggest Bitcoin trading platform, BuySellBitCo.in, recently suspended its operations, citing a recent Reserve Bank of India public advisory that highlighted the risks involved in dealing with virtual currencies. Bitcoin and other virtual currencies have begun to gain widespread acceptance in India, despite poor Internet penetration and a natural scepticism of assets not backed by tangible entities such as land. The central bank had issued a notice on the risks involved and added that it could be used for money laundering and funding terrorism activities. It stopped short, however, of issuing a ban or any other restrictions.
CRYPTO – CURRENCY: Crypto currency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
CLOUD COMPUTING is a type of computing that relies on sharing computing resources rather than having local servers or personal devices to handle applications. Cloud computing is comparable to grid computing, a type of computing where unused processing cycles of all computers in a network are harnesses to solve problems too intensive for any stand-alone machine.
In cloud computing, the word cloud (also phrased as ‘’the cloud’’) is used as a metaphor for “the internet,” so the phrase cloud computing means “ a type of Internet-based computing,” where different services – such as servers, storage and applications – are delivered to an organization’s computers and devices through the internet.
The goal of cloud computing is to apply traditional super computing, or high-performance computing power, normally used by military and research facilities, to perform tens of trillions of computations per second, in consumer-oriented applications such as financial portfolios, to deliver personalized information, to provide data storage or to power large, immersive online computer games.
To do this cloud computing uses networks of large groups of servers typically running low-cost consumer PC technology with specialized connections to spread data-processing chores across them. This shared IT infrastructure contains large pools of systems that are linked together. Often, virtualization techniques are used to maximize the power of cloud computing.
CRYPTOGRAPHY:
Public key cryptography or asymmetric cryptography, is any cryptographic system that uses two kinds of keys. Public keys may be disseminated widely, while private keys are known to the owner only.
In public key encryption system, any person can encrypt a message using the public key (better imagined as a lock) of the receiver and leave it on a public server or transmit it on a public network. Such a message can be decrypted only with the receivers private key.
Public key infrastructure (PKI) is a set of roles, policies and procedures needed to create, manage, distribute, use, store and revoke digital certificate and manage public-key encryption.
A Typical PKI consists of hardware, software, policies and standards to manage the creation, administration, distribution and revocation of keys and digital certificates are the heart of PKI, as they affirm the identity of the certificate subject and bind that identity to the public key contained in the certificate.
RSA – Relatively slow algorithm is an algorithm used by modern computers to encrypt and decrypt messages. It is an asymmetric cryptographic algorithm. Asymmetric means that there are two different keys. This is also called PKC, because one of the key can be given to everyone.
A typical PKI includes the following elements.
A trusted party, called a certificate authority (CA), act as root of the trust and provides services that authenticate the identity of individuals, computers and other entities. CA issues the digital certificates to individuals and entities. It sighs these certificates using its private keys. Its public key is made available to tall interested parties.
A registration authority (RA) often called a subordinate CA, certified by a root of CA to issue certificates for specific uses permitted by the root.
A Certificate database which stores certificate requests and issues and revokes certificates.
A certificate store, which resides on a local computer as a place to store issued certificates and private keys.
Digital signature (not to be confused with the digital certificate) are the public key primitives of message authentication. In the physical world, It is common to use handwritten signature on handwritten on the handwritten or printed message. They are used to bind the signatory to the message. Similarly, a digital signature is a technique that binds a person/entity to the digital data.
It is also a mathematical technique used to validate the authenticity and integrity of a message, software or digital document.
Digital certificates are a means by which consumers and business can utilize the security application of PKI. PKI comprises of the technology to enable secure e-commerce and internet based communication. It is also referred to as public key certificate.
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