Cyber law is an emerging field of law. It has been continuously evolving since
its origin in a realm of law. However, due to advent advent of new technologies
and with new technological paradigms emerging, Cyber law is trying to adapt new
technologies and challenges that are coming in its realm of law and blockchain
is one of them which is constantly emerging and developing throughout the world.
Blockchain is basically the list of records that are growing in today's scenario
and they are linked with using cryptography. Every block contains hash
cryptography of previous block, transaction data and timestamp. Blockchain can
be described as a data structure that holds transactional records and while
ensuring security, transparency, and decentralization.
In its simplest form a blockchain is decentralized digital ledger capable of
recording transactions. It's an open distributed ledger that is capable to
record transactions between two parties efficiently and in a permanent way
This is done by cryptography that links the new block to the older one and form
a blockchain. Any attempt to tamper the old data would corrupt the new data and
data following it as well.
Blockchain is a new paradigm/ideal of technological development. It refers to
digitalised decentralized public ledger of transactions that are subsequently
grouped into blocks.  It allows market participants to keep a track of
digital currency transactions without Central record keeping.
Thus, each block is chained to previous block and immutably recorded across a
peer to peer network using, cryptographic assurance mechanism.Once you store an
information on a blockchain, it is extremely difficult to change or alter it.
Each transaction on a blockchain is secured with a digital signature that proves
it to be authenticated. The uses of encryptions and Digital Signatures, makes
the data stored on the blockchain tamper-proof and it cannot be changed.
The most prominent example of it is Bitcoin. Blockchain can be used to make
wills, sell personal items or even discover the source of jewels. Blockchains do
not merely reflect a record of who paid whom; it contains any structured data
(for example, who owns a particular plot of land).
This potential for vast and
wide-ranging applications is what makes blockchain so exciting.
Blockchain technology was first outlined in 1991 by Stuart Haber and W. Scott
Stornetta, the two researchers who wanted to establish a system where document
timestamps could not be tampered. But it established almost after two decades,
with the launch of Bitcoin in January 2009, theblockchainthen had its first
The Bitcoin protocol is built on the blockchain. In a research paper
introducing the digital currency, Bitcoin's pseudonymous, Satoshi Nakamoto
referred to blockchain as a new electronic cash system that's fully
peer-to-peer, with no trusted third party.
When it comes to printed currency, the use of it is regulated and verified by a
central authority, usually by a bank or government-but Bitcoin is not controlled
by anyone. Instead, transactions made in bitcoin are verified by a network of
computers. This is what is meant by the Bitcoin network and blockchain being
The completed transaction is recorded publicly and stored as a block on the
blockchain, at this point it becomes unalterable. In the case of Bitcoin, and
most other blockchains, computers that successfully verify blocks are rewarded
for their labour with cryptocurrency. This is commonly referred to as mining
In order to make transactions on the Bitcoin network, participants must run a
program called a wallet
. Each wallet comprises of two unique and distinct
cryptographic keys: a public key and a private key. The public key is the
location where transactions are deposited and withdrawn. This is also the key
that appears on the blockchain ledger as the user's digital signature. A
user's public key is an abridged version of their private key, created through a
complicated mathematical algorithm.For this reason, blockchain technology is
Features of blockchainThe following features make the technology of blockchain stand out:
Blockchains are decentralized in nature i.e. no single person or group holds the
authority of the overall network. This unique feature of blockchain allows
transparency and security while giving power to all the users and not to any
The interaction between two parties through blockchain using a peer-to-peer
model is easily accomplished without the interference of any third party.
Blockchain uses P2P protocol that allows all the network participants to hold an
identical copy of transactions and enables approval through a machine consensus.
The immutability feature of a blockchain refers to the fact that any data once
fed on the blockchainit cannot be changed or altered. For example sending email,
Once you send an email to a bunch of people, you cannot take it back. In order
to reach a way, you'll have to ask all the recipients to delete your email which
is very tedious. This is how immutability works.In case of the blockchain, if
you try to change the data of one block, you'll have to change the entire blockchain as each block stores the hash of its preceding block. Hence, the data
stored in a blockchain is non-alterable or resistant to hacker attacks due to
With the property of immutability implanted in blockchains, it becomes easier to
detect tampering of any data. Blockchains are considered tamper-proof as any
change even in a single block can be detected and addressed smoothly. There are
two key ways of detecting tampering, i.e. hashes and blocks.
There are three types of blockchain networks:
- Public blockchains
- Private blockchains
- Hybrid blockchains
A public blockchain has absolutely no restrictions. Anyone with
an Internet connection canparticipate in the execution of a consensus
protocol.Some of the most known public blockchains are the bitcoinblockchain and
A public blockchain is Permission-less Ledger and can be accessed by any and
everyone. Anyone with the access to the internet is eligible to download and
access it. It allows the worldwide communities to exchange information openly
and securely with anyone and everyone.
A private blockchain is permissionable ledger that can't be accessed by anyone.
One cannot join it unless invited by the network administrators. Participant and validator access is restricted and permission is required to use the same.
Private blockchains are the ones which are shared only among the trusted
participants unlike in public blockchain which can be accessed by everyone.
Under private blockchain the overall control of network is in hands of owners of
the block. Hence, the level of trust is high under private blockchain.
A hybrid blockchain has a combination of both centralized and decentralized
features. It is an alternative of public and private blockchain. The right to
read the transaction can either be public or private. The blockchain can be
designed in way to allow public users to limit the number of queries and can
secure the block.
Advantages and Disadvantages of Blockchain:Advantages
- Improvement of accuracy by removing human involvement in verification
- Reduction of cost by eliminating third-party verification
- Harder to tamper with blocks
- Security, privacy and efficiency of transactions
- Transparency of technology
- Technological cost associated with mining Bitcoin
- Low rate of transactions per second
- Use in illicit activities
- Susceptibility to being hacked
The countries are trying to strengthen their cyber Laws by increasing the number
of encryption related regulations. Many countries are reemphasizing the state
power by forcing service providers and corporates to share information
concerning backdoors and the encryption technologies.
Technology of Blockchain has a high potential hold of applications in various
different industries and sectors. Some industries have already started adopting
blockchainfor their businesses, whereas many are still exploring the best
possible ways to start with blockchain technology.
Peer-to-peer transactions without mediators could lower the cost of business,
eliminate the barriers to enter business and allow governments, corporations and
other entities to deliver services with better accuracy, speed and
Thepaper-based contracts are vulnerable to errors and frauds which make
the trust factor between both the parties doubtful and raise risks. Blockchain
brought forward an amazing solution to these problems through Smart online
Contracts. The smart contracts will allow transparency and security while
maintaining the privacy of the contractors. Therefore, once the blockchain
technology is adopted globally, the way of life's and business would transform.
- http://cyberlaws.net/blockchain-law-epicentre/ (Visited on February 18,2020)
- https://ct.wolterskluwer.com/sites/default/files/revolutionary-power-of-blockchain.pdf (visited
on February 18, 2020)