Using Blockchain Technologies and Cryptography Methods to Ensure the Integrity and Reliability of Data in the Socio-Economic Sphere

Anatoly MakarovPyatigorsk State University, Pyatigorsk, Russia, mellin_22@mail.ru

Elena PisarenkoPyatigorsk State University, Pyatigorsk, Russia, gmu41@yandex.ru

Irina PonomarenkoPyatigorsk State University, Pyatigorsk, Russia, irina_20011997@mail.ru

Abstract  With the penetration of information technology in all spheres of human life and activity, the possibility of committing crimes in the information sphere appeared  theft of personal data, commercial information, modification and manipulation of data, etc. Therefore, a special role in modern information systems is played by means of ensuring the integrity and reliability of data during their storage, processing and transmission over networks. Such tools include, first, blockchain technologies. The paper proposes a solution to the problem of adapting a two-key encryption system when using blockchain technologies in information systems that support processes in the socio-­economic spheres: in housing and communal services, pharmaceutical production, in medical workflow, etc.

Keywords: information security, blockchain technology, cryptography, protection of information

© The Authors, published by CULTURAL-EDUCATIONAL CENTER, LLC, 2020

This work is licensed under Attribution-NonCommercial 4.0 International

I. Introduction

In almost all industries where information technology has come, threatstotoinformation security. Data stored in electronic form is easy to copy, forward, modify, replace. Therefore, along with the convenience, transmission speed and huge volumes of accumulated and transmitted information, modern technologies bring with them the problems of ensuring the safety and reliability of data [1, 2, 3]. To solve these problems in any industry where verification and logging of certain actions is required, blockchain technologies can be used [4].

Blockchain technologies play a special role in economics, where they are closely related to the notion of cryptocurrency [5, 6]. However, the digital economy is not limited to digital currency, but ensures the security and convenience of financial transactions [7] and contracts [8].

In the manufacture of medicines, the blockchain allows solving the problem of authentication of medicines and their components, which provides protection against counterfeit and counterfeit medicines. In medical workflow, the use of the blockchain will allow everyone to always have in encrypted form a complete electronic medical record with information about all diseases, examination and treatment results, allergic reactions, blood type, etc. [9].At the request of the card holder, any doctor in any medical facility in the country will be able to see this information. And since the information is encrypted, no one can access it without the patient’s knowledge.

The use of blockchain technology in medicine is not limited to the medical workflow. Specialists are considering blockchain systems for monitoring the condition of premises in medical institutions [10], for issuing digital prescriptions [11] and even speak about the impending blockchain revolution in health care [12].

In the housing and public utilities system, block procedures can be used in the conclusion of a contract for the supply of utilities, in the recording of consumption, in the compilation of a bill for payment, as well as in the payment of services and in the resolution of problems[13].Blockchain technology allows both utility providers and users to guarantee the accuracy and reliability of the data received, as well as its security and irrevocability.Spanish researchers have proposed the use of IT-infostructure to create “smart campuses” and “smart universities”, which should be connected to the nodes of the Internet of things [14]. Despite computational complexity and limited scalability, blockchain technologies are used to ensure the security and reliability of the Internet of things [15, 16].

There are clear prospects for the use of blockchain technology in the energy sector [17, 18] and in the oil industry [19] where strict control over the extraction, transfer and use of resources is required at all times.

The use of blockchain for copyright protection is of interest. As shown in a study by Chinese scientists at the Chengdu University of Technology, the use of blockchain technology to protect the copyright of images has great advantages over traditional designs [20].

However, there are common problems in many of these technology blockchain models: the exchange of encryption keys between network members and the determination of the role of the miner in the operation of a system with a distributed registry. Most members of this network are not professional cryptographers, and are not aware of encryption methods at all. But the introduction of new technologies, the almost total digitization of society in many ways changes the way people live, making them dependent on the quality of the information encryption systems and the ability to use them. Thus, there is a general problem of adapting human beings to new technologies and technologies to the needs and capabilities of users. All this applies fully to blockchain technology.

II. Methodology

A. Problem Statement

To solve the problem identified, it is necessary to develop algorithms for the application of cryptographic encryption methods in a network blockchain and a scheme for the interaction of an internal block of a network blockchain with an external distributed registry. Such a scheme should be based on two-key encryption that ensures maximum security and reliability of the information transmitted and stored in a blockchain network.

In this work, an attempt is made to solve the problem of adapting the two-key encryption system to the processes of transmitting and storing information on objects of social and economic sphere.

The analysis showed that the main difficulty in solving the problem was the procedure for the exchange of keys between network members and the determination of the role of the miner in the operation of the system with a distributed registry. The quality criterion of the developed system should be not only the technical side of the development, but also the friendly interface, convenient for both the customer and the service provider.

In order to create a common scheme for the use of block-­technologies in socio-­economic processes, models have been developed for the customer of services, the service provider and the miner.

For professional activity in socio-­economic systems miner must acquire a new specialty — notary cryptographer. Such a specialist will provide services for the integration of internal blocks of network subscribers into an external blockchain network and will form a distributed registry.

The developed models of key players in a blocked network with distributed registry make it possible to formulate a task for the design of network cryptographic protocols and information security measures. Automated workstations for network subscribers should be created with a friendly and understandable interface. Next, it is necessary to create a model of the Attacker in the network, like the well-known Dolevo-­Yao model, and to consider possible attacks on network data exchange protocols and measures to eliminate them. As a result, it is possible to create two-key encryption protocols and a digital signature with hashing of external blocks.

B. Use of Blockchain Technology in Document Circulation

The general principle of integrating blockchain technology into the document circulation system is that all information about transactions taking place is recorded in a scattered registry and this information will no longer be changed. For example, the blockchain should record all services rendered, work performed, payments made, etc.

The arrangement of the blocks of the inner blockchainand the outer block of the outer network of the blockchainare shown in figure 1.

Figure 1. Composition of block the internal blockchain in the external block of the network with distributed registry.

Designations on the scheme:

BC11 — data block of works or services produced;

BC12 — data unit of equipment involved in the work;

BC13 — data unit for measuring the basic parameters of the work and services performed during transfer to the next stage;

h11h12h13h10, h14 — internal block hashes BC11BC12BC13BC14;

h10 — hash combining the blocks BC11, BC12BC13;

h14 — internal, generalizing the hash of the block BC14;

hn — hash of the finite block BC14;

H– 1 — external hash of the previous block;

Hn — n-thexternal hash of the new network block.

As a result, an internal unit is formed, which will then be integrated into the external unit of the network. When each bit of BC1BC2BC3 blocks is modified, the corresponding hash is changed immediately, which guarantees the validity of the data transmitted. The aim is to monitor all work done in the relevant socio-­economic system.

Further by based on the internal blocks, the structure of the external blockchain is formed (fig. 2).

Figure 2. Example of an external network of forming hashs Hbased on internal hn.

In the given structure, the data in the blocks are linked by hash functions. To change them, it is necessary to change the hash functions of all previous blocks, which is practically impossible. The distributed registry is held by each member of the network, so it is virtually impossible to modify or destroy.

The schemes reviewed could form the basis for the design of distributed registry networks using cryptographic techniques to control all processes requiring consideration in socio-­economic systems.

III. Results

The interaction between the providers and consumers of housing services takes place through an intermediary — management companies. In this scheme, there can be both errors and various machinations. Therefore, the introduction of blockchain technology into the system of recording and paying for services received is certanly relevant.

A. Blockchain Technology in The Accounting and Payment System Housing Services

Based on the analysis of the housing and communal services, a system of automated control, accounting and payment for services was modeled. This system was modeled on the basis of the use of distributed registry systems and cryptography methods (blockchain technology). Algorithms were developed for connecting a new subscriber to the network, automation of accounting, payment for services, generation of an invoice for using the service, duplication of this agreement for the provision of services [4].

In order to develop a digital technology project for organizing housing and communal services based on distributed registry systems and cryptography methods, you first need to schematically present an automated system for accounting, control and payment for services. This system is shown in figure 3.

Designations on the scheme:

MC — management company;

PS — public services;

US — urban services;

ARSMMS — automated record-­keeping system for the monitoring of measuring sensors and the transmission of information from them via the radio channel to the servers of th service providers.

Figure 3. System of automated recording, control and payment of public utilities based on blockchain technology.

1. To i-subscribers of consumers of services 1, 2, …, — ordinary citizens who are used to seeing electricity and hot water in their home;

2. Blockchainnetwork 5, or blockchain contracts that contain exchange data between subscribers and the management company, subscriber contract data and meter readings when paying under the contract;

3. Subscribers providing services: 15.16, M — companies that are ready to provide ordinary citizens with the above-­mentioned amenities for payment;

4. Blockchainnetwork 7, which contains data on payment invoices from subscribers who provide services and the fact of payment of these bills by recipient subscribers;

5. Blockchainnetwork 8, which duplicates the readings of the counters of subscribers in a format suitable for reading by the management company, public services and subscribers who provide services;

6. Management company (MC), performing a role similar to that of a miner. The difference is that the management company within the network is in a single copy and has no competitors. In the future, it will be called the UK or just a miner.

Blockchain network — a set of distributed registries of various systems interacting with each other.

In this case, distributed registers of subscribers consuming services (21), management company (22), public services (23) and subscribers providing services (24) are created.

The algorithm for connecting a new subscriber to the network, the conclusion of a maintenance contract is shown in figure 4.

Designations on the scheme:

1. The subscriber fills in the contract form of the service provider, encrypts them with the public key of the provider, creates an electronic digital signature.

2. Miner forms the outer block taking into account the previous hash of the outer block of the chain blockchain and the data of all internal queues.

Figure 4. Subscriber and service provider contracting algorithm.

3. The service provider finds in the data of the external blocks of the network an internal block addressed to it by the subscriber. Opens it with its secret encryption key, supplements its part in the contract data, forms its internal block and sends it to the network of the blockchain, where the block enters the queue of all circuits not yet in the external block.

4. Miner forms the outer block taking into account the previous hash of the outer block of the chain blockchain and the data of all internal queues. It then sends an external block to the registry, where it becomes part of the blockchain of contracts.

5. Subscriber finds in the data of external blocks of the network an internal block addressed to him by the service provider. Opens with his secret key, signs the contract data, forms a new internal block. Then, it sends a blockchain into the network, where the block enters the queue of all circuits not yet decorated in the outer side.

6. Miner forms the outer block taking into account the previous hash of the outer block of the chain blockchain and the data of all internal queues. After successful formation, sends an external block to the registry, where it becomes part of the blockchain of contracts.

The invoice payment algorithm for the service provider is shown in fig. 5.

Figure 5. The invoice payment algorithm for the service provider.

Designations on the scheme:

1. The subscriber records the data of the counter or the counter supporting automatic transmission of the data over the network is read by the software. Data are encrypted and signed by an electronic digital signature.

2. Miner forms the outer block taking into account the previous hash of the outer block of the chain blockchain and the data of all internal queues. After successful formation, sends an external block to the registry, where it becomes part of the blockchain of contracts.

3. The service provider finds in the data of the external blocks of the network an internal block addressed to it by the subscriber. Its secret cipher key. On the basis of the data, the service provider generates a service invoice for the subscriber, encrypts them with a public key and signs them with an electronic digital signature. The block is then queued for all circuits not yet included in the external blocks.

4. Miner forms the outer block taking into account the previous hash of the outer block of the chain blockchain and the data of all internal queues. After successful formation, sends an external block to the registry, where it becomes part of the blockchain of contracts.

5. Subscriber finds an internal block addressed to him from the service provider in the data of external blocks of the network. Opens an account with his secret key from the service provider and conducts payment through the State Service by means of a private office.

6. Public Service transfers money to the service provider.

This system of automated accounting, control and payment of public utilities services on the basis ofblockchain technologies will make it possible to organize interaction between suppliers and consumers directly, without intermediaries. This system will make it possible to avoid various kinds of machinations.

B. Blockchain System for Pharmaceuticals

Figure 6. Structure of the contract for the supply of  products.

In order to protect the pharmaceutical market from counterfeit drugs, the entire production and supply of drugs must be controlled, from the procurement of raw materials to the delivery of drugs to pharmacies. It’s logical to use blockchain technology to do that. The distributed registry will solve the problem of authentication of drugs and their components. Block contracts must be concluded between the pharmacy and the pharmacy store when a contract for the supply of medicines is concluded and contracts exchanged (fig. 6).

Designations on the scheme:

DRwp-p — distributed registry between pharmacy and warehouse pharmacy.

The procedure for concluding a blockchain contract for the supply of pharmaceutical products is as follows:

1. The product manufacturer forms its internal block with an internal hash:

hpmf (DKpub (pm)Kpr (pm)Spm, Zpm)

D — block data;

Kpub(pm— PM public key;

Kpr(pm) — PM private key;

Spm — PM digital signature;

Zpm — block header.

Then it sends the internal block to the network for embedding into the external blockchain network.

2. The miner, having accepted the block, forms an external hash:

Hpm f (hpm)= f (hpmDKpub (pm)Kpr (pm)SpmZpm)

This hash is a function of the internal hash and the external hash of the previous network block.

The miner sends it to the pharmacy warehouse (PW).

3. Pharmacy warehouse signs it with its digital signature Spw, forms internal hash hpw and sends it to miner.

hppm = f (Hppm) =

(hpmDKpub (pm)Kpr(pm)SpmZpmHexhpw)

4. The miner, based on hpw, forms the final external hash using information from the previous block.

Hpw(hpwHex)

Then he sends it to the product supplier and embeds it into the external blockchain network.

5. The manufacturer of products sends this block to all pharmacies in the form of a distributed registry.

6. The pharmacy concludes a direct contract with the supplier of products, produces an internal block with a hash:

hp = (DpKpub(p)Kpr(p)SpZp)

Then the pharmacy sends it to the miner. The miner generates an external hash and sends it to the product supplier.

Hp(hp)

7. The manufacturer forms the internal block with its hash and sends it to the miner.

8.

hpm(HpHprevious)

9. The miner forms an external final hash and embeds it into the blockchain network.

Hpp= f (HpHprevious)

10. The miner sends the block to the pharmacy.

11. The pharmacy sends the block to the supplier of products.

The contract between the pharmacy and the pharmacy warehouse is then exchanged. It shall follow the diagram shown in fig. 7.

Figure 7. A scheme for the exchange of blockchain contracts between the pharmacy and the pharmacy warehouse.

Designations on the scheme:

DRwp-p — distributed registry between pharmacy and warehouse pharmacy

1. Product manufacturer creates internal block with hash hpm1:

hpm1= f (D1Kpub (pm)Kpr (pm)DpmZpm1)

D1 — product data;

Kpub (pm) — PM public key;

Kpr (pm) — PM private key;

Dpm– PM digital signature;

Zpm— the header of the internal block with the products.

Then he sends it to the miner.

2. Miner finds the external hash of the previous block and forms the external hash Hpm1:

Hpm1= f (hpm1Hprevious)

Then he sends it to the pharmacy warehouse.

3. Product manufacturer creates an internal block with hash hpm2:

hpm2(D2, Kpub (pm)Kpr (pm)DpmZpm2)

D2 — product data;

Kpub(pm) — PM public key;

Kpr pm) — PM private key;

Dpm — PM digital signature;

Zpm2 — the header of the internal block with the products.

Then he sends it to the miner.

The technology described above guarantees protection against the entry of fake and counterfeit drugs into pharmacies and patients. It should be said, however, that for the time being the introduction of such technology is possible only within the borders of one State, because it involves the maintenance of a single base of medicines for all pharmacies under one pharmaceutical management structure.

IV. Conclusions

In the middle of work, a model scheme for the development of a distributed register for socio-­economic systems has been created. Under this scheme, there is a trade-off between the openness of the subscriber in an open network and the simultaneous privacy of his personal information and private information. This is achieved by using the digital signature of the network subscriber.

Thus, a general scheme for the use of blockchain technology for different types of socio-­economic systems has been developed.

The difference from existing developments is the use of a two-key cryptographic encryption system. In order to implement such a scheme, a professional cryptographer, who is at the same time an expert in the relevant subject area, should act as a miner. For example, cryptographer-­notary, cryptographer-­energetics, cryptographer-pharmacist, etc. This approach will ensure, on the one hand, the correct operation of the blockchain and the formation of the blockchain, and, on the other hand, the conformity of all transactions with the regulatory and regulatory documents, existing in this field. This will allow all other participants and users of the blockchain network to work in it comfortably and reliably.

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