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Comparison of Blockchain E-wallet Implementations

Written by B. Eliasi, A. Javdan

Paper category

Bachelor Thesis


Computer Science




Thesis: What is a blockchain? Blockchain is a technology described by Stuart Haber and W. Scott Stornetta in 1991. The purpose of building a blockchain is to create a secure chain, in which each block is a series of data, and each data is connected to the front of the block like a chain [3]. In 2008, the unknown Satoshi Nakamoto used the blockchain to protect the history of data exchanges. By using a peer-to-peer network, each block gets a timestamp from each exchange and can verify each transaction. All of this can be done without any central authority such as a bank. This is the beginning of Bitcoin using blockchain technology [3]. Blockchain does not use a central authority, but uses a decentralized ledger for trust [4]. By using a blockchain without a central institution such as a bank, users will avoid different types of chargers from banks. Most banks charge some transaction fees every year, and different types of services have different costs. Blockchain will reduce delays due to conflicts/chaos in financial services, duplicate information, and bank confirmation of transactions [5]. This delay usually occurs in international transactions and may take several days to complete. If we switch to blockchain, compared with traditional financial services, transactions can be completed in a few seconds. Blockchain includes the ability to track all transactions because all blocks are arranged in chronological order. Each block is connected to its neighbors, and these blocks are cryptographically hashed. These functions make it easy to track and check block information [4]. 2.2 Authentication This section will introduce two different forms of authentication methods, offline authentication and online authentication. Online identity verification is a form of identity verification done through Internet services. Common examples in this regard are Google and Facebook login, which will be explored together with the Swedish electronic identity verification system BankID. Offline identity verification is different from online identity verification. It is limited to a certain form of local identity verification and can use different technologies. The technologies covered in this report include face recognition, fingerprint recognition, and PIN/password. 2.2.1 Local identity verification Local identity verification is a method of identity verification done locally on the operating system of the device. Examples of this are personal identification codes/passwords, fingerprints or facial recognition systems used to access mobile phones. Local authentication can be used for more than just allowing users to access their phones. It can be used in many different applications, such as banking applications, social media, etc. Therefore, it can replace the use of local authentication to access the key. We will evaluate authentication methods by separately evaluating face recognition, fingerprint, PIN, and password authentication. Fingerprint recognition All mobile phone fingerprint recognition technologies are similar, and the sensor creates a small picture of the finger. Every time a user wants to verify their fingerprint, their finger picture is compared with the fingerprint saved in the phone. The saved fingerprint is the fingerprint used by the user when configuring the phone. According to mobile companies, their fingerprints are very secure and can be used for bank transactions; for example, ApplePay/Samsung Pay. According to Apple, the fingerprints of other people will be accepted by the system once in 50.000 [6]. However, fingerprint authentication has more serious problems. According to new research by New York University and Michigan State University, fingerprints may not be as secure as the company claims [7]. The fingerprint sensor in the mobile phone has a small part of the fingerprint of the finger. Therefore, the research can easily deceive the sensor with the fake fingerprint composed of the common characteristic numbers found in human fingerprints [7]. Using fake fingerprints, they can match 65% of the time. Although the test was not conducted on a mobile phone, the researchers claimed that the test still means that the numbers provided by Apple (1 to 50.0000) should be reserved. The problem is also that people tend to have multiple fingers on their phones, and the phone will take a few pictures of their fingers. This also makes it easier for people with fake fingerprints, they only need to match one of the fingerprint pictures [7]. Face recognition There are three different face recognition technologies today, namely two-dimensional face recognition, 2D-3D face recognition and 3D face recognition [8]. The two-dimensional face recognition technology first tries to detect whether there is a face in the image. Recognition systems can usually determine whether there is a human face in the image. When a face is detected, the system first extracts different features in the face [8]. This is part of the system that finds uniqueness in the face and creates a signature from the face. After finding the uniqueness, the system will go to the authentication section and compare it with the stored face. The only technical equipment used is the camera used to create images for comparison with faces. The disadvantage of two-dimensional face recognition is that it is not reliable enough and cannot be used for security [9]. There are already mobile phones using 2D face recognition technology, and people can easily deceive the system through photography [10]. 3D face recognition technology provides more accurate face recognition, thereby creating a 3D image of the face [8]. With the help of more 2D cameras, 3D images can be created. Some devices also use infrared or laser sensors and other technologies to make 3D face recognition more accurate [11]. Read Less