1 of 26

Group 4

Group ID:

Group 4

Group Member:

Soham Bhoir (16010420117)

Aditya Pai (16010420097)

Dr. Irfan Siddavatam

Mentor:

Prof. Ashwini Dalvi

Project:

Product

HAS Chain – Abstracted Blockchain addressing the issue of

Counterfeiting.

2 of 26

HAS Chain

Contents

  • Introduction
  • Motivation
  • Problem Definition
  • Functional and Non-functional requirements
  • Literature Review
  • Technology Stack
  • Methodology
  • Algorithm
  • Conclusion
  • References

3 of 26

HAS Chain

Introduction

In an era where the proliferation of counterfeit goods threatens businesses' integrity and consumer trust, and concerns surrounding the energy-intensive nature of Proof of Work (PoW) blockchain networks raise questions about their sustainability, our capstone project presents a unified solution at the forefront of technological innovation.

Our proposed blockchain system, built upon Ethereum's architecture, offers a multifaceted approach to address these pressing issues. It stands as a beacon of hope for businesses, particularly Small and Medium-sized Enterprises (SMEs), by providing a robust anti-counterfeiting mechanism without imposing transaction fees. Leveraging the transparency and untraceability inherent in blockchain technology, our system empowers businesses to verify product authenticity independently.

Concurrently, our project endeavors to tackle the sustainability concerns surrounding PoW-based blockchain networks. Through the development of a comprehensive assessment framework, we aim to evaluate the sustainability of PoW algorithms deployed in our proposed blockchain system. By analyzing critical factors such as Carbon footprint, CPU temperature, memory usage, GPU core utilization, and scalability challenges, our study seeks to chart a course towards greater resource efficiency and overall sustainability in blockchain technology.

Through our integrated approach, we strive to not only mitigate the immediate threats posed by counterfeit goods but also pave the way for a more sustainable and resilient blockchain framework, fostering trust, innovation, and responsible technological advancement.

4 of 26

HAS Chain

Motivation

In the realm of artisanal products, the allure lies not just in their craftsmanship but in the embodiment of a unique lifestyle and artistic vision. However, this allure faces a formidable adversary in the form of counterfeiting, a multi- billion dollar industry spanning the globe [6]. Just as with luxury goods, counterfeiters employ sophisticated methods to replicate the appearance of genuine artisanal products, eroding potential revenue and diluting market exclusivity. Beyond economic losses, counterfeit products jeopardize consumer trust, tarnishing the reputation of artisanal brands and posing significant health and safety risks. Furthermore, counterfeiting stifles innovation by suppressing intellectual property and exploits unethical labor practices [6].

5 of 26

HAS Chain

Motivation

HASChain offers a compelling solution for artisans battling counterfeiting, but at scale, it has a dire need to evaluate its sustainability. The energy-intensive nature of Proof-of-Work (PoW) algorithms, commonly used in blockchain networks, raises concerns about long-term sustainability.

The Ever-Growing Energy Appetite of Blockchain

Blockchain's Proof-of-Work (PoW) consensus mechanism, while secure, faces scrutiny due to its high energy consumption [9]. The computational power needed for mining results in significant heat, demanding energy-intensive cooling. As blockchain adoption grows, concerns about PoW's environmental & system impact, posing sustainability challenges [7]. Alternatives like Proofof-Stake (PoS) gain attention for their potential to mitigate energy usage. Addressing PoW's energy consumption is crucial for the long-term viability of blockchain technology [8].

Addressing the Sustainability Concerns

The current trajectory of PoW energy consumption is unsustainable [10]. Researchers, policymakers, and even cryptocurrency enthusiasts are actively seeking solutions. This research project aims to contribute to this critical discussion by conducting a comprehensive assessment of the sustainability of PoW algorithms.

6 of 26

HAS Chain

Problem Definition

This project aims to combat product counterfeiting while conducting a comprehensive assessment of the Proof-of-Work (PoW) algorithm employed in their private Layer 2 (L2) blockchain network. This initiative uses blockchain and NFTs on a custom Ethereum L2 chain to combat counterfeit products. The core focus is on assessing the NFT platform and the hardness of underlying blockchain system. Hardness, in this context, refers to the computational difficulty associated with solving the mathematical puzzles needed for mining new blocks and validating transactions on the network.

7 of 26

HAS Chain

Functional and Non – Functional Requirements

FUNCTIONAL

NON-FUNCTIONAL

  • Data Collection and Analysis: The system should collect real time data to monitor various resources and statistics such as memory usage, CPU usage, GPU core utilization etc.

  • Remote execution: User can use interactive frontend to initiate the algorithm on any system.

  • Custom Difficulty Level: user can set the custom difficulty level i.e 'the zeros' to increase the hardness of the algorithm.

  • System Performance: the algorithm utilizes the CPU cores, memory capacity and swap space to its maximum capacity.
  • Performance: The system should be able to handle a minimum of 1000 transactions per second (TPS) to support a large user base. The response time for transactions and dashboard interactions should be within milliseconds.
  • Scalability: The blockchain should be scalable to accommodate additional nodes (miner or boot) and users without

compromising performance.

  • Reliability: The blockchain network should have 99.9% uptime, ensuring reliable access for users at all time
  • Security and Encryption: All transactions and communications

between nodes should be encrypted to ensure data security

  • Usability: The dashboard should have an intuitive and user-

friendly design, ensuring ease of use for all types of users.

  • Compliance: The system should comply with relevant data protection and privacy regulations, ensuring user data is handled securely and ethically

8 of 26

HAS Chain

Literature Review for Cross chain

Paper Title

Published In

Inference

Enabling Cross-Chain Transactions: A Decentralized Cryptocurrency Exchange Protocol

I EEE Transactions on

Information Forensics and Security

Problem with Current System: Trading between different types of cryptocurrencies or between traditional currencies and cryptocurrencies is generally conducted through a centralized third- party platform. However, this has a single point of failure, making it vulnerable to attacks and affecting the security of transactions.

Proposed Solution: The authors propose a distributed cryptocurrency trading scheme that can securely trade between different types of cryptocurrencies. This scheme is designed to solve the problem of centralized exchanges.

Implementation: The scheme is implemented with smart contracts on an Ethereum blockchain and deployed on an Ethereum test network. It allows transactions not only between individual users but alsoamong multiple users.

Towards Cross- Blockchain Smart Contracts

I EEE International Conferenceon Decentralized Applications and

Infrastructures (DAPPS)

Problem with Current System: The current blockchain landscape is very heterogeneous due to the manifold blockchain protocols proposed by researchers and industrial companies. However, current blockchain technologies offer only limited support for interoperability, thus preventing tokens or smart contracts from leaving the scope of a particular blockchain.

Proposed Solution: As a first step towards cross-chain smart contract interactions, the authors introduce a framework which allows to invoke a smart contract from another blockchain. They offer support for continuing a smart contract after receiving a result from a different blockchain, and for calling smart contracts recursively across blockchains.

Implementation: The authors provide a reference implementation for Ethereum-based blockchains using Solidity

9 of 26

HAS Chain

Literature Review for Counterfeiting

Paper Title

Published In

Inference

A Blockchain- Based Application System for Product Anti- Counterfeiting

I EEE Access 8

The anti-counterfeiting system based on Blockchain comprises three key roles: The Manufacturer Role, The Seller Role, and The Consumer Role. The Manufacturer Role involves functions like adding seller addresses to contracts, specifying the number of products available for sale, and retrieving seller information for monitoring sales status. As for the Consumer Role, it allows inquiries into products marketed by sellers, verification of product exchange, and confirmation of the product's status through the consumer's public key certificate. The Seller Role empowers consumers to encrypt verification information with a private key and verify the authenticity of sellers using their public keys. After transactions, sellers can specify purchaser addresses in contracts for manufacturers to access information, including sales records and remaining stock quantities. On the Consumer Role side, consumers can verify the manufacturer-seller relationship and stock availability. Manufacturers can confirm consumer identities, access individual purchase records, and monitor product status through well-maintained contract addresses.

System for Identifying Fake Product using Blockchain Technology

7th

International Conference on Communication and Electronics Systems (I CCES)

This system consists of three main components: an application for manufacturers and corporations, an application for consumers, and a cloud-based database. Manufacturers can customize and track product orders, generating unique QR codes upon approval, while customers can access product information, create catalogs, and verify product authenticity through QR code scanning. The blockchain system records product attributes and transaction history, ensuring end-to-end supply chain visibility, with data securely stored in a cloud database.

10 of 26

HAS Chain

Literature Review for NFT Marketplace

Paper Title

Published In

Inference

Characterizing the OpenSea NFT Marketplace

WWW'23 Companion: Companion Proceedings of the ACM Web Conference 2023

The study investigates user behaviour in the market to demonstrate that a small subset of heavy-hitters plays a significant role in propelling substantial growth. Additionally, an examination of the economic activity within the network reveals how these influential users contribute to extreme price volatility within the Art and Collectible categories. Furthermore, an analysis of the network of buyers and sellers reveals that, despite the network's sparsity, communities of users are forming, with the majority of power users tending to cluster within these structures. These findings illuminate previously unexplored aspects of the NFT marketplace and offer a multi-level analysis of a market worth billions of dollars.

The NFT Art Marketplace: Trends and Considerations

Carnegie Mellon University. Book

NFT Use Cases: The authors discuss various use cases for NFTs and emphasize that the NFT marketplace is at the core to provide platform for users to mint, list and trade Non-Fungible tokens.

Challenges: These include choosing a proper tech stack and dealing with the limitations of ERC 721, a standard for expressing possession of non-fungible tokens1. They also mention that resources are scarce and finding the perfect one is difficult, making it even more challenging to build a complex NFT Marketplace.

Benefits for Artists: The authors suggest that blockchain technology and NFTs offer a perfect

opportunity for artists and content creators to obtain financial remuneration for their works1. Artists don’t have to depend on galleries to sell their artwork; instead, they can sell their work directly to a buyer in the form of an NFT. This results in better profit for the artists.

11 of 26

HAS Chain

Literature Review for Blockchain sustainability

Paper Title

Published In

Inference

Sustainability in Blockchain: A Systematic Literature Review on Scalability and Power Consumption

Issues

Energies 2023.

This paper analyzes power consumption and scalability challenges in the literature, focusing on the case study of bitcoin. The study reviews the growing energy consumption of bitcoin and proposes a solution for immersion cooling in blockchain mining. The paper also investigates how to scale blockchain for better performance.

The first contribution is to estimate Bitcoin's rise in power consumption using real-time data from various sites. Cooling and IT hardware losses are significant impacts, but have been generally ignored in earlier research.

The second contribution examines the scalability problem in blockchain technology, which occurs when a large number of nodes and transactions are added.

A Tertiary Review on Blockchain and Sustainability With Focus on Sustainable Development Goals

IEEE Access 2022

This paper presents a tertiary review of 42 literature reviews to investigate the relationship between blockchain and sustainability in light of the United Nations' Sustainable Development Goals (SDGs). The method used is consensus-based expert elicitation with thematic analysis. The findings reveal that blockchain can have a positive impact on all 17 SDGs, though some negative effects can impede the achievement of certain objectives. The study identifies 76 positive and 10 negative linkages between blockchain adoption and the 17 SDGs, as well as 45 factors that drive or hinder blockchain adoption for the achievement of SDGs. Research gaps to overcome these barriers and enhance blockchain's positive impacts have also been identified. The findings may help stakeholders evaluate the applicability and tradeoffs of blockchain in facilitating sustainability using blockchain, and policymakers in making supportive measures to facilitate sustainability using blockchain.

12 of 26

HAS Chain

Technology Stack

Figma

wireframing & ideation

ReactJs

Javascript Library to be used

NodeJs

developing backend

Polygon

serves as L2 chain

Ubuntu

root rigs Operating System

Docker

solves cross platform needs

Nvidia

Graphic card drivers

Solidity

interact with ETH blocks

Swagger

documenting APIs for other users

GO

implement ETH protocols

TypeScript

solves dev errors

Metamask

Wallet system for end users

13 of 26

HAS Chain

Methodology

To create a custom blockchain network we used polygon-edge technology to create nodes on different devices.

We created 2 types of nodes

  1. Bootstrap nodes (aka boot nodes)
  2. Miner nodes (aka mining nodes)

Bootstrap nodes: facilitate in creating a network and acts as an entry point into the network.

Miner nodes: facilitate in mining the blocks with a linear increment in difficulty level.

Boot nodes not only facilitates in formation of peer to peer network but they also create an individual chain of their own when initialized in isolation.

14 of 26

HAS Chain

Methodology

Communication with boot nodes

Type of protocol used:

'gRPC' is a communication protocol that's well-suited for low-latency, high-performance. It provides

  • Block propagation: Nodes use gRPC to broadcast new blocks to the network efficiently.
  • Miner communication: Miners utilize gRPC for coordinating mining

activities and sharing network state.

Type of consensus used:

PolyBFT is a consensus algorithm specifically designed to enhance the efficiency and reliability of mining nodes within blockchain networks. Advantages of PolyBFT:

  • Efficiency Boost
  • Stability Enhancement
  • Optimized Resource Utilization
  • Secure and Trustworthy
  • Adoption Potential

15 of 26

HAS Chain

Methodology

JSON-RPC

  • Remote Procedure Calls (RPC) enable applications to communicate and execute functions. JSON-RPC

specifically utilizes JSON data for this communication.

  • MetaMask uses JSON-RPC to interact with our blockchain nodes (has-node-1, has-node-2, etc.) set to specific ports (10001, 20002, etc.).

MetaMask

  • Function: MetaMask is a provider that connects our NFT marketplace to the blockchain.
  • Communication:
  • Marketplace dApp sends JSON-RPC requests to MetaMask.
  • MetaMask relays these requests to the appropriate node based on configured ports (10001, 20002, etc.).
  • The node processes the request and sends a response

back through MetaMask.

  • MetaMask delivers the response to our NFT dashboard.

16 of 26

HAS Chain

Methodology

Demystifying NFTs and NFT Marketplaces

What is an NFT?

  • An NFT (non-fungible token) is a unique digital identifier that represents ownership of a digital asset.
  • NFTs are stored on a blockchain, which is a secure, distributed ledger.
  • Unlike fungible tokens like cryptocurrencies (e.g., Bitcoin), NFTs cannot be replicated or replaced.

How do NFTs work?

  • NFTs are created, or "minted," on a blockchain platform.
  • The minting process involves creating a digital record of the NFT's ownership and properties.
  • Once minted, an NFT can be bought, sold, or

traded on an NFT marketplace.

17 of 26

HAS Chain

Methodology

18 of 26

HAS Chain

Methodology

  1. Users: The user can either be a buyer or seller i.e the artisan or marketplace visitor.
  2. Metamask: The user authorizes their wallet and joins the dApp marketplace.
  3. NFT minting: Artisan can upload an image of his/her art piece and entire its name, description and price to mint it as an NFT.
  4. Storing Media: The Art work is then stored off chain onver InterPlanetary File System (IPFS), a peer-to-peer network for storing and sharing data, and only the meta data of the art work is stored on the blockchain

system.

  1. DApp NFT Marketplace: The DApp NFT Marketplace Smart Contract facilitates the buying and selling of NFTs between the Artist and Buyer.
  2. ERC721 SC: The metadata is then used to create a token on the ERC721 Smart Contract. ERC721 is a standard for creating non-fungible tokens (NFTs) on the Ethereum blockchain. Each NFT created is unique and cannot

be replicated.

  1. Miner Nodes & Boot Nodes: Miner and boot nodes validate the NFT transaction on the blockchain. Miner

nodes process the transactions and add new blocks to the blockchain, while boot nodes help new nodes connect to the network.

19 of 26

HAS Chain

Methodology

The NFT Minting Page allows NFT creation by an Artisan. Supported image formats (.png, .jpg, .jpeg, .web) can be uploaded, and a title, description, and price for the NFT in Ethereum can be added.

NFT Purchase from the Marketplace. When the buyer clicks on the "Buy" button for any individual listed NFT in the marketplace, the Metamask wallet is triggered to proceed with the transaction.

20 of 26

HAS Chain

Methodology

Assessment framework

During the scalability phase of the NFT marketplace platform, there will be a surge of artisans joining the platform. We need to analyze the impact of this activity on the platform in relation to sustainability norms. We are providing a baseline assessment framework so that any organization attempting to build its own sustainable blockchain infrastructure can compare its node/infrastructure with the baseline provided.

We forked the cryptographic algorithm of a blockchain and ran it locally to understand its system hardness. We evaluated the CPU utilization, RAM utilization, GPU CUDA core utilization, swap space utilization, and calculated the carbon footprint during the running of the algorithm.

21 of 26

HAS Chain

Methodology

Algorithm used in assessment framework

  • Proof of Work (PoW) is implemented using the Ethash JavaScript implementation.

  • Using the user-specified difficulty level and the number of blocks to be mined during the execution, calling Ethash will simulate a real chain and mine a block.

  • Because we are simulating a chain and examining the system metrics while it is being executed, we are avoiding consensus validation.

22 of 26

HAS Chain

System Metrics snapshot when the ethash algorithm is initiated with custom difficulty level, all the CPU cores are being allocated to its maximum capacity.

System Metrics snapshot after few minutes of initialization of ethash algorithm, all the CPU cores are at max capacity and memory is 50% used along with swap memory. The temperature of CPU rises when the cores are at maximum capacity.

Methodology

23 of 26

HAS Chain

Conclusion

This project investigated the sustainability of Proof-of-Work (PoW) algorithms deployed in public blockchain networks. By analyzing factors such as CPU temperature, memory usage, swap memory usage, GPU core utilization, and scalability limitations, this study provided insights into the system implications and operational efficiency of PoW-based systems.

The findings of this project are expected to contribute to a more comprehensive understanding of the trade-offs between system hardness and sustainability inherent to PoW blockchains. This knowledge will be instrumental in the development of future blockchain technologies that strive for a balance between robust security and reduced environmental impact.

Our contributions resonate with SDGs 9, 12, 13, and 16, emphasizing the societal significance of this

work. By tackling infrastructure, responsible consumption and production, and climate action, this research propels the advancement of blockchain technology toward security, efficiency, and reduced environmental impact.

24 of 26

HAS Chain

References

  1. Tian, H., Xue, K., Luo, X., Li, S., Xu, J., Liu, J., ... & Wei, D. S. (2021). Enabling cross-chain transactions: A decentralized

cryptocurrency exchange protocol. IEEE Transactions on Information Forensics and Security, 16, 3928-3941.

  1. Nissl, M., Sallinger, E., Schulte, S., & Borkowski, M. (2021, August). Towards cross-blockchain smart contracts. In 2021 IEEE International Conference on Decentralized Applications and Infrastructures (DAPPS) (pp. 85-94). IEEE.

  • Ma, J., Lin, S. Y., Chen, X., Sun, H. M., Chen, Y. C., & Wang, H. (2020). A blockchain-based application system for product anti- counterfeiting. IEEE Access, 8, 77642-77652.

  • Jadhav, R., Shaikh, A., Jawale, M. A., Pawar, A. B., & William, P. (2022, June). System for Identifying Fake Product using Blockchain Technology. In 2022 7th International Conference on Communication and Electronics Systems (ICCES) (pp. 851- 854). IEEE.

  • White, B., Mahanti, A., & Passi, K. (2022, April). Characterizing the OpenSea NFT marketplace. In Companion Proceedings of the Web Conference 2022 (pp. 488-496).

  • Crawford, B., & Rodriguez, L. (2022). The NFT Art Marketplace: Trends and Considerations.

  • A Tertiary Review on Blockchain and Sustainability With Focus on Sustainable Development Goals IEEE ACCESS.2022.3217683

25 of 26

HAS Chain

References

9. Digiconomist. (2024, January 10). Bitcoin https://digiconomist.net/bitcoin-energy-consumption

Energy Consumption Index - Digiconomist. Retrieved April 7, 2024, from

10. Stoll, C., Klaaßen, L., & Gallersdörfer, U. (2019). The carbon footprint of bitcoin. Joule, 3(7), 1647-1661.

26 of 26

THANK YOU

EVERYONE