Capabilities Supported by Blockchain Implementations and the Level Transaction Models

Blockchain Applications
Your Name
Subject and Section
Professor’s Name
October 25, 2019
Questions:
1 Describe in your own words the three main capabilities that are supported by the block chain implementation
The three main capabilities supported by blockchain implementation are; (1) “hash chained storage”, (2) “digital signature”, and (3) the “consensus” CITATION Zha192 \l 1033 (Zhang, Xue, & Liu, 2019).
First, the hash chained storage is primarily composed of two processes/software that allows for an easier storage and location of the data. Namely, these are (1) hash pointer and the (2) Merkle Tree. On the one hand, the hash pointer allows the blockchain to determine where the data needed is stored within the complex network. Simply said, it is similar to a signpost that allows for an easy determination of the data’s location. On the other hand, the Merkle tree is a series of nodes that are interconnected by different hash pointers. This structure can easily be imagined as similar to an actual ‘tree’ with every leaf being the different hashes of each data block.
Second, the data signature is one of the things that makes the blockchain very secure. It ensures that every data that enters into the network is authentic by creating a unique piece of code that would be verified by the whole network itself.
Lastly, the consensus is another security feature of the blockchain. From the name itself, consensus refers to the capability of every node to accept or reject a transaction or a change in the data, by deciding on whether it would add them to its copy of global ledger. Thus, if one tries to change a data that is located on one block, then the other nodes could prevent that malicious data by not including those changes in its own block.
2 Explain in your own words the Blockchain Level transaction models, benefits and challenges related to security and privacy.
The blockchain transaction models can be categorized into two, namely (1) the UTXO Model and (2) the Account-based Transaction Model. On the one hand, uses the quantity of accounts or coins that are not spent and uses that data in order to use that as an input for the whole system, with regards to the remaining amount of coins or accounts.
On the other hand, the mush simpler account-based transaction model simply disseminates the information for the transaction through the whole system. Despite its increase risks compared to the former, this model increases efficiency throughout the whole system.
3 Review the security and privacy Requirements of online transactions, list the seven types and outline how can blockchain transactions become vulnerable to various types of attacks (i.e. tampering, denial-of-service (DDoS), double-spendi...