INFORMATION SEARCH AND ANALYSIS SKILLS

(ISAS)

How Cryptographic Algorithms

and Hashing keep Blockchain Secure

Written By:
Diandra Laudia (2220010110)

Dinah Aryani Zavitri (2220010111)

Faculty: Dimas Yudha Prawira., S.Kom., M.Kom

Class: 4ISA2

CEP CCIT
FAKULTAS TEKNIK UNIVERSITAS INDONESIA
2024
 PREFACE

The author always gives thanks for his presence to the Lord who bestows his favor and

grace. Thank god for bringing us health until now so that we were able to complete this ISAS.

Thanks also to the faculty, Dimas Yudha Prawira., S.Kom., M.Kom, who have guided us to ISAS

in our fourth semester. And thank you both for supporting us.

Currently, the writer wrote a project entitled "How Cryptographic Algorithms and

Hashing keep Blockchain Secure" that aims to learn more about operating systems. The main

reason for doing this ISAS was to communicate a focus on how blockchain can improve security

in computer systems.

The writer realized that these problems could be resolved well with the help of

Suggestions, criticisms, and input from many sides and other sources. Therefore, we thank all of

you for helping us with this lecture. The authors hope this ISAS can add satisfaction to the

reader.

Depok, March 2024

Author

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 TABLE OF CONTENTS
PREFACE i
TABLE OF CONTENT ii
TABLE OF FIGURES iii
INTRODUCTION 1
I.1 Background 1
I.2 Writing Objective 1
I.3 Problem Domain 1
I.4 Writing Methodology 2
I.5 Writing Framework 3
BASIC THEORY 3
II.1 Introduction to Blockchain Technology 3
II.2 What is Information System Security 3
II.3 Key Features of Blockchain for Security Enhancement 4
II.4 Cases of Blockchain in Information System Security 5
PROBLEM ANALYSIS 6
III.1 Limitations of Conventional System Security 7
III.2 Characteristics of Blockchain 8
III.3 How Blockchain Works 9
III.4 Advantages and Disadvantages 10
CONCLUSION AND SUGGESTION 12
IV.1 Conclusion 12
IV.2 Suggestion 12
BIBLIOGRAPHY 13

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 TABLE OF FIGURES
Figure 2.1 Blockchain 4
Figure 3.1 Concept Decentralization of Blockchain 7
Figure 3.2 How Blockchain Works 9
Figure 3.3 How to add Block in Blockchain 9

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 CHAPTER I
INTRODUCTION

I.1 Background

Information System Security, also known as Cybersecurity, is a field dedicated to

safeguarding computer systems, networks, and data from unauthorized access, misuse, or
destruction. Evolving alongside technological advancements, it addresses various threats
including malware, phishing attacks, and insider threats. The primary goals of
Information System Security are to ensure confidentiality, integrity, and availability of
data, often summarized by the CIA triad. This involves implementing access control
measures, encryption techniques, and security awareness training. Compliance with
regulatory standards such as HIPAA and GDPR is essential, alongside staying abreast of
emerging trends like AI-driven threat detection and the security challenges posed by IoT
and cloud computing. Ultimately, Information System Security is indispensable for
protecting digital assets, preserving business continuity, and upholding individuals'
privacy in an interconnected digital landscape.

1.2 Writing Objective

To examine the impact of blockchain technology on enhancing the security of

information systems by analyzing the limitations of conventional system security,
potential benefits, and characteristics of blockchain.

I.3 Problem Domain

Exploring the challenges and opportunities surrounding the integration of

blockchain technology into information systems to bolster security measures.

I.4 Writing Methodology

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 The writing method employed by the author is quite simple, discussing and
analyzing all information materials. The information obtained comes from official sites
and reliable sources. The author gathers the material, and then the discussion comes to
the best conclusion of all the reports from this study.

I.5 Writing Framework

Chapter 1: Introduction
Chapter 2: Basic Theory
Contains a brief description of Information System Security Blockchain
Technology and others.
Chapter 3: Problem Analysis
Discussion of the Limitations of Conventional System Security, Characteristics of
Blockchain, and others.
Chapter 4: Conclusion and Suggestions
Conclusion and suggestions to take from it.

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 CHAPTER II
BASIC THEORY

II.1 Introduction to Blockchain Technology

Data theft stands as a paramount cybersecurity concern for both individual users and
corporate entities[1]. Not only does it compromise personal privacy, but it also undermines a
fundamental tenet of cybersecurity: confidentiality. Whether it involves personal information,
financial data, or proprietary business secrets, the unauthorized access and exfiltration of
sensitive data can have profound repercussions. It not only damages trust and reputation but can
also lead to financial losses and legal liabilities. As such, combating data theft remains a top
priority in the ongoing battle to secure digital assets and safeguard individuals' and organizations'
privacy.
Blockchain is a revolutionary decentralized technology that has garnered significant
attention across industries. It functions as a secure and immutable digital ledger, unlike
traditional centralized databases. Operating on a distributed network of computers (nodes), each
node stores a copy of the entire blockchain. Transactions are grouped into blocks and
cryptographically linked to form a chain. Once recorded, transactions cannot be altered without
majority consensus. While renowned for powering cryptocurrencies like Bitcoin, blockchain's
applications span various sectors including supply chain management, healthcare, voting
systems, and identity verification. Its potential to revolutionize data storage, sharing, and security
is profound, offering transformative possibilities across virtually every industry.

II.2 What is Information System Security

Information System Security, commonly referred to as Cybersecurity, is the discipline

focused on safeguarding computer systems, networks, and data from unauthorized access,
misuse, alteration, or destruction. It encompasses a broad spectrum of technologies, procedures,
and methodologies aimed at protecting information assets and ensuring the confidentiality,
integrity, and availability of data. The primary objective of Information System Security is to
minimize the risks posed by cyber threats, including malware, phishing attempts, insider
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breaches, and denial-of-service attacks. Essential elements of Information System Security
include implementing access controls, utilizing encryption methods, deploying intrusion
detection systems, providing security awareness training, and adhering to regulatory
requirements. Through the adoption of robust security measures, organizations can mitigate the
impact of cyber attacks, safeguard critical information, and uphold the trust and confidence of
stakeholders.

II.3 Key Features of Blockchain for Security Enhancement

Figure 2.1 Blockchain

1. Blockchain security relies on strong cryptography. Each transaction in the

blockchain is encrypted and linked to previous transactions in the form of an
immutable chain. Since any changes to previous transactions are clearly visible,
this makes it extremely difficult to commit fraud and data manipulation.
2. By using consensus mechanisms, blockchains can reach agreement on the
validity of transactions worldwide. In other words, an attacker would have to have
control over most of the computing power of the blockchain network, which is
highly unlikely. In addition, the decentralized existence of many participants
makes the system more resistant to tampering and corruption.
3. Blockchain enables secure access arrangements and greater control over
data. In some blockchain implementations, data owners have full control over
their data and can grant limited access permissions only to people who meet

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 certain requirements. This can increase user privacy and reduce the risk of data
falling into the wrong hands. [2]

II.4 Cases of Blockchain in Information System Security

Christos Makridis, a research professor at Arizona State University and digital fellow at
the MIT Initiative on the Digital Economy, says that blockchain is a technology that can be used
in many sectors. The financial sector, for example, could use it to build smart contracts between
customers and their banks; the healthcare sector, for example, could use it to build smart
contracts between insurance companies and hospitals, as well as between patients and hospitals.
The possibilities are endless.

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 CHAPTER III
PROBLEM ANALYSIS

III.1 Limitation of Conventional System Security

The association between encryption and the confinements of ordinary framework security
lies in how encryption addresses a few of these restrictions. Customary framework security
regularly faces challenges such as centralized control, powerlessness to cyber assaults, and
constrained information astuteness. Encryption, as a cryptographic strategy, can offer assistance
to relieve these impediments by giving implies to secure information, communications, and
frameworks.

1. Centralized Control:
Customary security regularly depends on centralized structures, which can be defenseless
to a single focus of disappointment. Encryption permits for decentralization of
information security by empowering people or substances to scramble their information
sometime in a recent capacity or transmission[3]. This decentralization decreases
dependence on centralized control, making it more troublesome for aggressors to target a
single point of disappointment.

2. Powerlessness to Cyber Assaults:

Encryption makes a difference address vulnerabilities to cyber assaults by giving implies
to ensure information from unauthorized gets to, indeed on the off chance that an
arrangement or framework is compromised. By scrambling information at rest and in
travel, encryption guarantees that indeed on the off chance that aggressors pick up get to
the information, they cannot peruse or utilize it without the decoding key.

3. Constrained Information Judgment:

Routine frameworks may need vigorous components to guarantee information astuteness,
making them vulnerable to unauthorized adjustment or altering. Encryption can offer

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 assistance keep up information judgment by securing information from altering or
unauthorized changes. By scrambling information with an advanced signature or utilizing
cryptographic hashes, encryption guarantees that any unauthorized adjustments to the
information will be recognized.

In outline, encryption plays a significant part in tending to a few of the restrictions of

routine framework security by giving implies to decentralize information security, ensure
against cyber assaults, and keep up information astuteness. By consolidating encryption
into security hones, organizations can upgrade the strength and adequacy of their security
measures.

III.2 Characteristics of Blockchain

In the ever-evolving landscape of digital innovation, blockchain technology has emerged as a

transformative force, reshaping traditional paradigms of data management and control. Unlike
conventional systems governed by centralized authorities, blockchain operates through a network
of interconnected nodes, each contributing to the collective governance and security of the
system.

1. Decentralized control, where there is no fixed authority, as shown in Figure 3.1

Figure 3.1 Concept Decentralization of Blockchain

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 2. Data that is transparent and easy to audit. Every node connected to the blockchain
network has a complete copy of the (public) blockchain, from the genesis block to the
most recent block.
3. Information is distributed. Each node keeps a copy of the blockchain to avoid having a
single center that stores all the data.
4. Immutability. Blockchains are immune to intentional damage and cannot be
intentionally manipulated by irresponsible parties.[4]

III.3 How Blockchain Works

In blockchain technology, a block usually consists of three things: a cryptographic hash, a hash
of the block itself, and a hash of the previous block. Therefore, each block must have its own
cryptographic hash and the hash of the previous block in order to remain connected to the chain.
The hash contains a unique alphanumeric number calculated based on the block's own data, a
timestamp, and the hash of the previous block. (Hasan, 2020)

Each block or data set stores a certain amount of data. Once filled, each block will connect with
the block before it (behind it) and after it (in front of it), forming a blockchain chain. This chain
serves as a permanent data record that cannot be changed or deleted, is stored with a clear
timestamp, and is connected to an infinite network. The following diagram shows how this
blockchain works:

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 Figure 3.2 How Blockchain Works

The following illustrates the continuity between blocks. Note the Prev part of Block 11 which is
the Hash of the previous block, namely Block 10. This shows the connection between the current
block and the previous block. Similarly, what will happen to the Hash of Block 11 will become a
hook for the next block (Block 12) later. And so on. [5]

Figure 3.3 How to add Block in Blockchain

To add a block to the chain, one must create a new wallet by generating a public key and a
private key. This process involves asymmetric encryption where the public key is created from
the private key, but it is impossible to recover the private key from the public key. The public key
is used in recording blockchain transactions, while the private key must be kept secret by its
owner. This ensures the privacy of users in the system because while transactions can be traced
back to the public key, the secret private key maintains the anonymity of its owner.
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Each transaction is recorded in a block, and the block must be verified by the majority of nodes
in the network using a consensus algorithm. Once verified, the block is assigned a unique hash as
identification. Thus, validation and recording of transactions can be done without third-party
interference. [6]

III.4 Advantages and Disadvantages

Advantages:
1. High Security: Everyone who logs into the blockchain is given a unique identity linked
to their account. The security of the blockchain is also supported by a reliable
cryptographic hash chain.
2. Transparency and Immutability: Every action is recorded in the blockchain and the
data is available to every participant in the blockchain. Data already recorded in the
blockchain cannot be changed or deleted, providing a high level of transparency and
trust.
3. User Control: Blockchain users have full control over all transactions and information
on the network. Changing or deleting information in the blockchain requires fantastic
computing power.
4. Simple and Precise: Blockchain simplifies the ecosystem with all transactions added to a
single public ledger.
5. Faster Processing: The use of blockchain technology speeds up the processing and
initialization of transactions from several days to minutes or even seconds.

Disadvantages:
1. High Energy Consumption: To store big data in real-time, blockchain operations
require a lot of energy. The process of creating a new node requires a lot of computing
power to communicate with every other node. This causes energy to be wasted
inefficiently.

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2. Risk of Chain Splitting: Nodes using older software may not be able to accept
transactions in the new chain; this can lead to a fork, or chain split, into two different
chains.
3. Signature Verification: Every transaction in the blockchain must be signed with a
cryptographic scheme, which requires huge computing power for the signature
calculation process. This also leads to high energy consumption. [6]

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 CHAPTER IV

CONCLUSION AND SUGGESTION

IV.1 Conclusion

Blockchain technology plays a significant part in upgrading data framework security by

giving imaginative arrangements to address advanced cybersecurity challenges. Through its
decentralized and permanent nature, blockchain guarantees the astuteness, straightforwardness,
and dependability of information and exchanges. By leveraging cryptographic procedures and
agreement components, blockchain reinforces information security, mitigates dangers related to
cyber dangers, and decreases dependence on centralized specialists. Moreover, blockchain
cultivates secure information sharing, streamlined forms, and made strides in responsibility,
hence upgrading general data framework security. As organizations progressively recognize the
benefits of blockchain, its appropriation is anticipated to proceed with developing and
advertising transformative openings to brace cybersecurity guards and defend basic data
resources in differing businesses.

IV.2 Suggestion

Suggestion for leveraging blockchain technology to enhance information system security is to

implement blockchain-based identity management systems. Traditional identity management
systems often rely on centralized databases, making them vulnerable to data breaches and
identity theft. By using blockchain, organizations can create decentralized, tamper-proof digital
identity platforms where individuals have control over their identity information.

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 BIBLIOGRAPHY

[1] Introduction To Blockchain Technology - researchgate. (n.d.-c).

https://www.researchgate.net/publication/331843595_Introduction_to_Blockchain_Techno
logy

[2] Wardhani, Putri Rizkia, and Muhammad Irwan Padli Nasution. (2023). "Peran teknologi
blockchain dalam keamanan dalam privasi data." JIKEM: Jurnal Ilmu Komputer, Ekonomi
dan Manajemen 3.2 (2023): 3897-3905.

[3] Jean-Paul A. Yaacoub, Ola Salman, Hassan N. Noura, Nesrine Kaaniche, Ali Chehab,
Mohamad Malli. (2020). Cyber-physical systems security: Limitations, issues and future
trends, Microprocessors and Microsystems, Volume 77, 2020, 103201, ISSN 0141-9331,
https://doi.org/10.1016/j.micpro.2020.103201.

[4] Putra, Guntur Dharma, Sujoko Sumaryono, and Widyawan Widyawan. "Rancang bangun
identity and access management iot berbasis ksi dan permissioned blockchain." Jurnal
Nasional Teknik Elektro dan Teknologi Informasi 7.4 (2018): 384-390.

[5] Implementasi Teknologi blockchain di ... (n.d.-a).

https://journal.uii.ac.id/Buletin-Perpustakaan/article/download/22232/11938/61373

[6] Golosova, Julija, and Andrejs Romanovs. "The advantages and disadvantages of the
blockchain technology." 2018 IEEE 6th workshop on advances in information, electronic
and electrical engineering (AIEEE). IEEE, 2018.

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