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Blockchain - Cryptography

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Table of contents

Sr. No.


Page no.

Block chain


Technical structure of block chain


Working of block chain


HNA Group: Digital Enablement of Block chain:


e- residency and block chain







The block chain is a non-susceptible corrupted distributed digital ledger used to carry all economic transactions that can be programmed to capture and record not just any financial transactions but it are used to carry all virtually everything of value. The Block chain is a safe cyber security with a math Technologies for fast and indirect recognition of modification in digital data and intelligent devices. Block chain technology makes it possible to find someone and all the changes have been made in digital data, regardless of how it may be small, it does not matter, by which, immediately and with zero error.

The Block chain uses the key terms.

  • A distributed ledger: The distributed ledger is the central part of the distributed ledger that record and capture the transactions that took place in the network. It is decentralized because it is replicate across all the participants, each participants collaborate took in the maintenance. The ledger uses the cryptographic techniques means once the transactions happened it can be modified and duplicated.  Such that it became the system of proof.
  • Smart contract: For consist updation of information and enable the host ledger function, the block chain uses the smart contract to provide access to ledger.
  • Consensus:  To keep synchronized the ledger transactions across the network, once the transactions are approved by the participants, they should be in the same order is called consensus.

The block chain are not a new technology but it is the combinations of the all new technology

Internet, private key cryptography and a protocol governing incentivization

Block chain technologies

  1. Public  key cryptography
  1. P2P Networks
  1. Program ( the Block chain Protocol)


System of records


Public Key cryptography: The system which based on the key: private and public key. The private key which is kept secret and the public key which is distributed over the network. Each party generate their private and public key pairs. The security of the transactions increase in the cryptography.

P2P Networks:   P2P networking architecture that partition different tasks and workload between the peers. Each peer formed the nodes and these said to be the peer to peer network of nodes.

[pic 1]


Technical structure of block chain

A block chain contains different blocks, each blocks contains various information’s regarding the transactions. Each block have the hash number, which is generated during the transactions. Each information’s have the unique hash number thus any moderate change in the information lead to the change in the hash number. If any block are made changed then modification in that block are easily noticed, this happens because the one block are connected with another block and each carry information of another block thus makes all block connected to each other  and forms the chain.

[pic 2]

The block chain carried the distributed database, each duplicates are in the multiple computer in the chain are nodes, thus no one carry the central tendency in the network and all the nodes are participated to from the network.  Thus any changes in information need to take consensus of all the participants.

Thus this approach makes system more secure and trust worthy because any changes in the ledger will be known to pubic.


[pic 3]

Like someone request the transactions, the transaction are then broadcasted to a P2P network which contains multiple computers and connected through nodes. The validation of the transaction takes place using algorithm. As the transactions are verified, it combined with other transaction and formed the blocks of chain. Thus in ledger new block is added to the existing chain and the chain became permanent. In the payment option, the value are virtually and do not have any intrinsic value and only uses in the given network. The system are completely decentralized and thus system are not control by any single person.


  1. HNA Group: Digital Enablement of Block chain:

 HNA is multinational conglomerate in airline operator having more than 400 subsidies and 18000 employees. For HR department, designing employee’s benefits plan was the challenging task as due to limited scale, many subsidies provided cash as benefit but as more than 20% was deducted from tax which leave employees unsatisfactory. Thus providing enrich benefit option, the HR employee to think for 15000 employee and finding the supplier which can provide large discount.

To find solution, procurement department suggested HR department about the e- commerce platform where the employee can benefit from various goods offered using benefit points.

  • First task to implement the e- commerce platform using block chain:

The e-commerce platform provides the various goods to customer at the discount rates and sellers get the additional platform to sell the product. In which the procurement first issued the digital coin for participants to carry out transactions. In second phase the supplier was invited to the platform. The third phase carry the integration of platform with the third party e-commerce platform.

  • Issuing digital coin to participants:  the procure department assigned digital wallet to each employee, each wallet is the address of block chain which help in identify the participants and track transactions. When any employee purchase goods, the digital coin is deducted from the amount and same coins are credited into the seller’s wallet. The whole coin was then converted in to money and transferred to the employee account.  Thus doing so all transaction became clearly visible and could not be modified by the central authority. Thus record of various transaction was recorded into multiple locations and risk of the record is also reduced.
  • Inviting suppliers to e-commerce platform:  procure department invited many sellers to participate and increase the customer base, the customer has to register his identity into the platform so seller can recognized the customer, but it can release the whole customer personal identity. To solve the problem. Each employee was given the private and public key. The public key was customer wallet ID and used for participation in the network.  When the customer request for purchase, s/he used private key to encrypt the request. The supplier receive the request and used customer public key to decode the request. Which shows the authenticity of the employee and it does have to leave any satisfactory information about employees.
  • Integrating e –commerce platform with 3rd party.  The procure department partnered with 3rd party with standard interface to expand more option and increase customer experience. But the e-commerce requires the trusted intermediary between customer and sellers. So block chain provided the alternative option by enabling the sellers with the HNA employee. In which HNA duplicated the ledgers across all nodes and transactions was recorded in all nodes. All transactions was track and validated through block chain and the payment is made in money.

Thus the HNA group integrated block chain technology to provide employee benefit plan by creating HNA digital coin by building internal e- commerce platform. At the same time they eliminated the necessity of intermediaries and maintained the customer sensitive information. In future the HNA group can use more e-commerce third party to expand the business at the same time use of AI can be used to predict the consumer behaviour in the e commerce. Which will improve the overall employee satisfaction.



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