Blockchain technology is a distributed ledger that records transactions in digital blocks chained together using cryptography. It allows for decentralized consensus on a shared transaction history without the need for a central authority. Key elements include distributed ledgers that maintain copies of transactions across many nodes, cryptographic hash functions and digital signatures for security, and consensus algorithms to validate transactions and reach agreement in a decentralized network. Blockchain technology has the potential to disrupt many industries by facilitating trust and transparency in peer-to-peer transactions.
Blockchains are composed of blocks that contain transaction data along with a timestamp and unique hash. Each new block contains the hash of the previous block, connecting the blocks in a chain. Hashing and digital signatures secure the blockchain by making transactions tamper-proof. Smart contracts automate transactions by executing code when conditions are met. Blockchain networks determine block time, size, and validation methods like proof-of-work or proof-of-stake to achieve distributed consensus on the ledger.
The document discusses the blockchain technology. It begins with an agenda that covers blockchain basics, problems it solves, what blockchain is, and how it works under the hood. It then discusses key concepts like how blockchain provides transparency without needing third-party verification, uses cryptography and distributed ledgers, works through a process of validation and consensus, and involves miners who are compensated for adding blocks. The document also covers hashing, Merkle trees, smart contracts, and provides resources for further learning about blockchain technology.
Blockchain and cryptocurrencies are emerging technologies that are still not fully understood. There are differing views on their value. Blockchain is a distributed digital ledger of transactions that is replicated across multiple computers. Cryptocurrencies like Bitcoin use blockchain technology, and their value comes from factors like production costs, scarcity, and utility. Ethereum enables decentralized applications and smart contracts through its cryptocurrency Ether. Altcoins have proliferated since Bitcoin, with some gaining significant value through network effects. Initial coin offerings have also raised billions for new blockchain projects.
This ppt describes about blockchain, quantum computers and about the security of blockchain. I took three major algorithms for securing blockchain from quantum computers attack.
This document discusses the promise and potential of blockchain technology. It begins with an overview of blockchain components like distributed databases, peer-to-peer networks, and cryptographic hashing. It then discusses how blockchain could transform transactions by embedding smart contracts in digital code stored transparently on shared databases. Blockchain may affect any type of transaction between individuals, organizations, and algorithms. The document compares blockchain to TCP/IP and how it drove innovation on the internet over decades. It outlines potential applications and provides examples of companies already experimenting in areas like asset tracking, identity, and IoT.
This document provides an overview of blockchain technology. It defines blockchain as a decentralized data structure that allows for a secure, immutable transaction system. The document then briefly outlines the history of blockchain, starting with Satoshi Nakamoto's 2008 paper introducing Bitcoin. It provides a simple technical explanation of blockchain components like hash functions, hash pointers, and blocks. The document also discusses consensus mechanisms like proof-of-work, smart contracts, decentralized applications, and challenges facing blockchain adoption and scalability.
The document discusses blockchain technology and cryptocurrencies like Bitcoin. It provides information on:
1) Group members working on the project: Huzaifa ZahoOr Al Sikandar, Hammad Zulfiqar, Faisal Hameed, Hammad Sohail.
2) Blockchain is a distributed ledger or database that records transactions across a peer-to-peer network using cryptography.
3) Bitcoin is a cryptocurrency and worldwide payment system that functions on a peer-to-peer network without a central authority.
An overview of blockchain and Distributed Ledger Technologies (DLT) including consensus, PoW, PoS, dBFT, DAG, smart contracts, Ethereum, Stellar, Ripple, Hashgraph Hedera, tokens, tokenomics, cryptocurrencies, ICO... taught during the ITU DLT seminar in Bangkok Thailand in September 2018
Virtual or digital currencies, with Bitcoin chief amongst them, have been gaining momentum and investment over the last couple of years. Offering an almost costless means of making payments around the globe, virtual currencies have the potential to bring significant disruption to the banking industry. This potential is not lost on either Bitcoin startups or banks themselves. But how does Bitcoin actually work? A peer-to-peer network maintains the “blockchain”, an innovative cryptographic protocol which securely mediates payments between parties without mutual trust. This session will step through the structure of the blockchain, showing how it solves the “double spend” problem and allows decentralised processing of financial transactions. Whether Bitcoin will become the currency of the internet or it’s a bubble that is doomed to burst sooner or later, the blockchain itself will change the face of transactional banking and perhaps other industries along the way.
Presentation to the Sydney Financial Mathematics Workshop (11 March 2015)
http://www.qgroup.org.au/content/bitcoin-banking-and-blockchain
Blockchain technology allows for transparent and secure transactions without an intermediary. It has various applications including financial services, smart contracts, IoT, and more. Key benefits are security, transparency, low costs, and reduced time. Blockchain functions by recording transactions in blocks that are linked using cryptography. Programming languages like Java and frameworks like Ethereum and Hyperledger can be used to develop blockchain applications. Databases can also integrate blockchain features to provide a scalable solution for deploying blockchain proofs-of-concept, platforms and applications.
Blockchain technology is a decentralized digital ledger that can record transactions and virtually anything of value. It uses cryptography to allow transactions to be securely recorded and verified without a central authority. The blockchain is maintained by a network of computers running the blockchain protocol and software. New transactions are added to the ledger in groups called blocks, and nodes work together to confirm the validity of transactions using cryptography before they are added to the blockchain. Blockchain has applications in digital currencies like Bitcoin, smart contracts, supply chain management, digital identity, and more. It allows value to be exchanged in a secure, transparent and conflict-free way without intermediaries.
This presentation covers the fundamentals of blockchain technology including:
- Defining distributed systems and the types of faults they can experience.
- Explaining that blockchain is a distributed ledger that is cryptographically-secure, append-only, and updateable only via consensus.
- Detailing how blockchain technology developed from earlier concepts in distributed computing like hash functions and consensus mechanisms.
- Identifying the key elements of a blockchain like blocks, transactions, addresses, and the peer-to-peer network.
- Discussing the benefits of blockchain like decentralization, transparency, and security as well as limitations around scalability.
Blockchain technology allows for transparent and secure transactions without an intermediary. It has various applications including financial services, smart contracts, IoT, and more. Key benefits are security, transparency, low costs, and reduced time. Blockchain uses a distributed ledger to record transactions in blocks that are linked through cryptography. Popular programming languages for developing blockchain applications include Java, PHP, and .NET. Databases can also integrate blockchain features to provide a scalable solution.
Introduction to blockchain is a presentation to demystify distributed ledger technology. Show and explain how the technology behind Bitcoin works and what are the pros and cons of it (at the time of creating this presentation June 2018)
Introduction to Blockchain and CryptocurrenciesNikhil D Prince
This document provides an introduction to blockchain and cryptocurrencies. It discusses the history of blockchain from 1991 when it was first described to 2009 when Bitcoin launched. It defines blockchain as an immutable time-stamped series of records distributed and managed by a peer-to-peer network. It also discusses the differences between centralized, decentralized, and distributed networks. The document outlines different types of blockchains and applications of blockchain like payments, supply chain monitoring, and medical recordkeeping. It notes both benefits like cost effectiveness and reduced reliance on trusted parties, as well as challenges like energy consumption and inability to change past data.
Blockchain and BPM - Reflections on Four Years of Research and ApplicationsIngo Weber
In this keynote, delivered at the Blockchain Forum of BPM 2019, I summarized and reflected on research on BPM and blockchain over the last four years, including model-driven engineering, process execution, and analysis and process mining. I also covered selected use cases and applications, as well as recent insights on adoption. The keynote closed with a discussion of open research questions.
The document discusses how blockchain works through immutable ledgers, distributed peer-to-peer networks, and cryptographic hashing. It explains that blockchain uses the SHA-256 hashing algorithm to securely record transactions in distributed ledgers across a network, making the data incorruptible. It also describes how cryptographic hashing provides data integrity and commitment by linking blocks together, thus achieving immutability and preventing unauthorized changes to past transactions.
Block chain and Bitcoin. A blockchain is a data structure that makes it possible to create a digital ledger of transactions and share it among a distributed network of computers.
This document provides an overview of data mining and machine learning concepts. It defines data mining as the process of discovering patterns in data. Machine learning allows computers to learn without being explicitly programmed by improving at tasks through experience. The document discusses different types of machine learning including supervised learning to predict outputs from inputs, unsupervised learning to understand and describe data without correct answers, and reinforcement learning to learn actions through rewards. It also covers machine learning problems, algorithms like K-nearest neighbors for classification and K-means clustering, and evaluating machine learning models.
Cloud computing provides on-demand access to shared computing resources like servers, storage, databases, networking, software and analytics over the internet. It delivers computing as a utility or service rather than a product. There are different types of cloud services including Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Clouds can be public, private, hybrid or community and are offered by major companies like Amazon, Microsoft, Google and IBM.
1) Data analytics is the process of examining large data sets to uncover patterns and insights. It involves descriptive, predictive, and prescriptive analysis.
2) Descriptive analysis summarizes past events, predictive analysis forecasts future events, and prescriptive analysis recommends actions.
3) Major companies like Facebook, Amazon, Uber, banks and Spotify extensively use big data and data analytics to improve customer experience, detect fraud, personalize recommendations and gain business insights.
This document provides an overview of the Hadoop ecosystem. It begins by defining big data and explaining how Hadoop uses MapReduce and HDFS to allow for distributed processing and storage of large datasets across commodity hardware. It then describes various components of the Hadoop ecosystem for acquiring, arranging, analyzing, and visualizing data, including Flume, Sqoop, Kafka, HDFS, HBase, Spark, Pig, Hive, Impala, Mahout, and HUE. Real-world use cases of Hadoop at companies like Facebook, Twitter, and NASA are also discussed. Overall, the document outlines the key elements that make up the Hadoop ecosystem for working with big data.
The document discusses parallel computing on the GPU. It outlines the goals of achieving high performance, energy efficiency, functionality, and scalability. It then covers the tentative schedule, which includes introductions to GPU computing, CUDA, threading and memory models, performance, and floating point considerations. It recommends textbooks and notes for further reading. It discusses key concepts like parallelism, latency vs throughput, bandwidth, and how GPUs were designed for throughput rather than latency like CPUs. Winning applications are said to use both CPUs and GPUs, with CPUs for sequential parts and GPUs for parallel parts.
This document discusses various methods for evaluating machine learning models, including:
- Using train, test, and validation sets to evaluate models on large datasets. Cross-validation is recommended for smaller datasets.
- Accuracy, error, precision, recall, and other metrics to quantify a model's performance using a confusion matrix.
- Lift charts and gains charts provide a visual comparison of a model's performance compared to no model. They are useful when costs are associated with different prediction outcomes.
This document discusses various methods for evaluating machine learning models. It describes splitting data into training, validation, and test sets to evaluate models on large datasets. For small or unbalanced datasets, it recommends cross-validation techniques like k-fold cross-validation and stratified sampling. The document also covers evaluating classifier performance using metrics like accuracy, confidence intervals, and lift charts, as well as addressing issues that can impact evaluation like overfitting and class imbalance.
The document discusses the K-nearest neighbors (KNN) algorithm, a simple machine learning algorithm used for classification problems. KNN works by finding the K training examples that are closest in distance to a new data point, and assigning the most common class among those K examples as the prediction for the new data point. The document covers how KNN calculates distances between data points, how to choose the K value, techniques for handling different data types, and the strengths and weaknesses of the KNN algorithm.
Decision trees are a machine learning technique that use a tree-like model to predict outcomes. They break down a dataset into smaller subsets based on attribute values. Decision trees evaluate attributes like outlook, temperature, humidity, and wind to determine the best predictor. The algorithm calculates information gain to determine which attribute best splits the data into the most homogeneous subsets. It selects the attribute with the highest information gain to place at the root node and then recursively builds the tree by splitting on subsequent attributes.
K-means clustering groups data points into k clusters by minimizing the distance between points and cluster centroids. It works by randomly assigning points to initial centroids and then iteratively reassigning points to centroids until clusters are stable. Hierarchical clustering builds a dendrogram showing the relationship between clusters by either recursively merging or splitting clusters. Both are unsupervised learning techniques that group similar data points together without labels.
The document discusses covering (rule-based) algorithms for generating classification rules from data. It provides an example of using a simple covering algorithm to iteratively generate rules that assign contact lens recommendations based on patient attributes. The algorithm works by selecting the test at each step that best separates the data (maximizes accuracy) until all instances are covered by rules or no further separation is possible.
K-means clustering is an unsupervised machine learning algorithm that groups unlabeled data points into a specified number of clusters (k) based on their similarity. It works by randomly assigning data points to k clusters and then iteratively updating cluster centroids and reassigning points until cluster membership stabilizes. K-means clustering aims to minimize intra-cluster variation while maximizing inter-cluster variation. There are various applications and variants of the basic k-means algorithm.
Data mining techniques can uncover useful patterns and relationships in data. Association rule mining finds frequent patterns and generates rules about associations between different attributes in the data. The Apriori algorithm is commonly used to efficiently find all frequent itemsets in a transaction database and generate association rules from those itemsets. It works in multiple passes over the data, generating candidate itemsets of length k from frequent itemsets of length k-1 and pruning unpromising candidates that have infrequent subsets.
Big data is generated from a variety of sources like web data, purchases, social networks, sensors, and IoT devices. Telecom companies process exabytes and zettabytes of data daily, including call detail records, network configuration data, and customer information. This big data is analyzed to enhance customer experience through personalization, predict churn, and optimize networks. Analytics also helps with operations, data monetization through services, and identifying new revenue streams from IoT and M2M data. Frameworks like Hadoop and MapReduce are used to analyze this distributed big data across clusters in a distributed manner for faster insights.
Cloud computing provides on-demand access to computing resources like servers, storage, databases, networking, software, analytics and more over the internet. It delivers these resources as a service on a pay-per-use basis. There are different types of cloud services including Infrastructure as a Service (IaaS), Platform as a Service (PaaS) and Software as a Service (SaaS). Popular cloud computing providers include Amazon, Google, and Microsoft who offer public, private and hybrid cloud solutions. Cloud computing enables large scale data analysis and provides computing resources for research communities in a flexible and cost-effective manner.
This document describes the MapReduce programming model for processing large datasets in a distributed manner. MapReduce allows users to write map and reduce functions that are automatically parallelized and run across large clusters. The input data is split and the map tasks run in parallel, producing intermediate key-value pairs. These are shuffled and input to the reduce tasks, which produce the final output. The system handles failures, scheduling and parallelization transparently, making it easy for programmers to write distributed applications.
Cheetah is a custom data warehouse system built on top of Hadoop that provides high performance for storing and querying large datasets. It uses a virtual view abstraction over star and snowflake schemas to provide a simple yet powerful SQL-like query language. The system architecture utilizes MapReduce to parallelize query execution across many nodes. Cheetah employs columnar data storage and compression, multi-query optimization, and materialized views to improve query performance. Based on evaluations, Cheetah can efficiently handle both small and large queries and outperforms single-query execution when processing batches of queries together.
This document describes the Pig system, which is a high-level data flow system built on top of MapReduce. Pig provides a language called Pig Latin for analyzing large datasets. Pig Latin programs are compiled into MapReduce jobs. The compilation process involves several steps: (1) parsing and type checking the Pig Latin code, (2) logical optimization, (3) converting the logical plan into physical operators like GROUP and JOIN, (4) mapping the physical operators to MapReduce stages, and (5) optimizing the MapReduce plan. This allows users to write data analysis programs more declaratively without coding MapReduce jobs directly.
Sawzall is a query language used with MapReduce to process large datasets in parallel across many machines. It allows writing programs that operate on individual records and emit intermediate values. These values are automatically aggregated across machines. Sawzall programs are concise, typically 10-20x shorter than equivalent MapReduce programs. The document provides examples of Sawzall programs for tasks like finding the highest ranked page for each website domain or counting search queries by geographic location.
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4. Definition
• Merriam-Webster: a digital database containing information (such
as records of financial transactions) that can be simultaneously
used and shared within a large decentralized, publicly accessible
network.
“blockchain,” Merriam-Webster.com Dictionary,
https://www.Merriam-Webster.com/dictionary/blockchain.
• IBM: A blockchain is a shared, immutable ledger that facilitates
the process of recording transactions and tracking assets across a
business network. Assets can be tangible (e.g., house, car, cash,
land) or intangible (e.g., intellectual property, patents, Copyrights,
brands). Almost anything of value can be tracked and traded on
blockchain networks, reducing risks and costs on all fronts.
5. Definition
• NIST: A blockchain is a collaborative, tamper-resistant ledger that
maintains transactional records.
Time
https://www.nist.gov/blockchain
6. Definition
Terms of Blockchain technology
• Blockchain – the actual ledger
• Blockchain technology – a term to describe the technology in the most generic
form
• Blockchain network – the network in which a blockchain is being used
• Blockchain implementation – a specific blockchain
• Blockchain network user – a person, organization, entity, business,
government, etc. which is utilizing the blockchain network
Blockchain Technology Overview , Dylan Yaga etc
https://nvlpubs.nist.gov/nistpubs/ir/2018/NIST.IR.8202.pdf
7. • DLT (Distributed Ledger Technology): digital system for recording the transaction of
assets in which the transactions and their details are recorded in multiple places at
the same time, without any central data store or administration functionality. Types:
Blockchain, DAG, Hybrids, and future ones to come.
• Bitcoin: digital currency that exists on a completely public and decentralized network
of computers that operates by simple mathematical rules that everyone who
participates in the network agrees on.
• Hash: cryptographic function that takes an input (or 'message') and returns a fixed-
size alphanumeric string.
• Consensus Algorithm: process used to achieve agreement on a single data value
among distributed systems, in order to reliability in a network involving multiple
unreliable nodes.
• DApp (Decentralized Application): backend code running on a decentralized peer-to-
peer network.
• ICO (Initial Coin Offering): type of funding for startups, where a a quantity of new
cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors.
8. Background and History
• Late 1980s and early 1990s: Leslie Lamport consensus model;
• Paper : “The Part-Time Parliament” , ACM Transactions on Computer Sys-
tems 16, 2 (May 1998)
Initial developer of the document preparation
system LaTeX and the author of its first manual
9. Background and history
• Late 1980s and early 1990s: Leslie Lamport consensus model;
• In 1991, a signed chain of information was used as an electronic
ledger for digitally signing documents;
• In 2008, Bitcoin: A peer Electronic Cash System by Satoshi
Nakamoto;
10. Bitcoin – A Peer-to-Peer Electronic Cash
System (2008)
• From Satoshi Nakamoto
• A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going
through a financial institution.
• Propose a solution to the double-spending problem using a peer-to-
peer network
11. Bitcoin Pizza Day
• 12 years ago a Bitcoin enthusiast spent 10,000 Bitcoin on two large pizzas. Those
Bitcoins would now be worth around $300 million.
• Since then, May 22 has been known as Bitcoin Pizza day -- a day to celebrate the
first real world Bitcoin transaction.
• On May 22, 2010, now known as Bitcoin Pizza Day, Laszlo Hanyecz agreed to pay
10,000 Bitcoins for two delivered Papa John's pizzas. Organized on bitcointalk
forum, the Florida man reached out for help. "I'll pay 10,000 bitcoins for a couple
of pizzas.. like maybe 2 large ones so I have some left over for the next day," …
• https://bitcointalk.org/index.php?topic=137.0
13. Medium of Exchange:
• 10,000 Bitcoins for 2 Pizzas
Value:
• May 22, 2010 - $41
$20.50 per pizza
• November 8, 2021 - $675.82 million. (1 bitcoin=$67582)
$337.91 million per pizza
• November 8, 2022 - (1 bitcoin = $16170)
$80.85 million per pizza
14. Why did Early Digital Currencies Fail?
• Merchant adoption
• Centralization
• Double spending
• Consensus
15. Double spending problem
• Government-issued money can’t be easily replicated or reproduced
• Bitcoin and other cryptos, on the other hand, are digital money,
which means that unlike physical currencies, they can easily be copied
and reissued
16. Background and history
• Late 1980s and early 1990s: Leslie Lamport consensus model;
• In 1991, a signed chain of information was used as an electronic
ledger for digitally signing documents;
• In 2008, Bitcoin: A peer Electronic Cash System by Satoshi
Nakamoto;
• In 2009, the establishment of the Bitcoin cryptocurrency blockchain
network;
• In 2013, the introductory paper, published in 2013 by Vitalik
Buterin, the founder of Ethereum, before the projects launch in
2015;
18. Transparency
• Blockchain provides end-to-end visibility of your business transactions
with a single source of truth that is replicated or shared across the
distributed ledger in your business network.
19. Immutability
• After you record a transaction into a blockchain, no one can delete it.
• If you try to modify the transaction, the blockchain appends another update
record to the transaction, which is visible to the participants in the network.
• Each transaction in a blockchain is encoded into a data block and uniquely
signed and timestamped.
• Each block is connected to the blocks before and after it. These blocks cannot
be altered or modified. They are linked together to form a chain that is
immutable and irreversible.
• An immutable history of transactions eliminates the counterfeiting and fraud
challenges faced by many businesses.
20. Smart Contracts
• “smart contracts are computer programs that secure, enforce, and execute
settlement of recorded agreements between people and organizations”
• “ A contract is a bargained-for exchange enforceable before the exchange”
• “So if you and I were to agree right now that I would pay you fifty dollars
for the pen on your desk, that’s a perfectly enforceable contract.
• We can just say, ‘I promise to pay you fifty dollars for the pen on your desk,’
and
• you would respond, ‘Yes, I would like that.’
• That turns out to be ‘offer acceptance and consideration.’ We’ve got a deal, and it
can be enforced in a court. That has nothing to do with the technological means of
implementation of the promises that we have made.”
21. KEY ELEMENTS
• Fundamental theories
• Distributed ledger technology (DLT)
• Immutable records/ consensus protocols
• Smart contracts
22. Key elements - Fundamental theories
• Cryptographic Hash Functions
• Asymmetric – Key Cryptography
• Transactions
• Addresses and Address Derivation
23. Key elements - Fundamental theories Cryptography
• Cryptography is the study of secure communications techniques that
allow only the sender and intended recipient of a message to view its
contents
24. Examples:
• The Scytale : A piece of parchment with a message around a certain kind of
cylinder called a Scytale. To decrypt the message, the recipient had to have a
cylinder of the same size
"Iryyatbhmvaehedlurlp
25. • The Caesar cipher: A little over 2,000 years ago, Julius Caesar
developed a simple system to send secure information to his troops.
It was all about substituting certain letters for others, typically by
shifting the letters by a predetermined number
26. • The Enigma Machines: The cipher machines, famous for their use by the Nazis
in World War II, were made up of electronically-connected rotors
27. Hash – Digital fingerprint
• A one-way hash function, also known as a message digest,
fingerprint or compression function
• Addition and Multiplication can be reversed while modulo division
can not be reversed
28. Hash
• Hashing and Encryption both are considered as two sides of the same
coin
• both are used for encoding data
• Hashing Validates Integrity of Content Whereas Encryption Maintains
Confidentiality
29. • Hashing is the process for converting any given input of variable length into a
fixed size consisting of letters and numbers with the help of a mathematical
function.
• Examples:
• MD5
• SHA1/2/256/512.
30. Attributes of Hash Value
• Known input should always produce only one known output.
• If different inputs are given more than once, each one should give
different outputs.
• Modifying any input, even a slight, should change the hash value.
• Once hashing is done, it shouldn’t be possible to go back from the
output to the input.
31. Digest
• Hashing is a method of applying a cryptographic hash
function to data, which calculates a relatively unique
output (called a message digest, or just digest) for an
input of nearly any size (e.g., a file, text, or image)
33. 3 Security Properties
• Given a digest, find x such that hash(x) = digest
computationally infeasible
• Given x, find y such that hash(x) = hash(y)
exhaustively search the input space, but this is
computationally infeasible to do with any chance of
success.
• Find an x and y which hash(x) = hash(y)
computationally infeasible to find any two inputs that
produce the same digest
34. • Hash rate (hashes per second) of the entire Bitcoin network in
2015 was 300 quadrillion hashes per second
(300,000,000,000,000,000/s) .
• At that rate, it would take the entire Bitcoin network roughly
35,942,991,748,521 (roughly 3.6 x 1013) years to manufacture a
collision (note that the universe is estimated to be 1.37 x 1010
years old)
• Even if any such input x and y that produce the same digest, it
would be also very unlikely for both inputs to be valid in the
context of the blockchain network (i.e., x and y are both valid
transactions).
Note : 2128 / (3x 1017 x 60 x 60 x24 x365 ) =
35942991748521 years
35. Fundamental theories - Cryptographic Hash
Functions
Address in Bitcoin
Proof of work
Data structure in
Bitcoin ledger
• Address derivation
• Creating unique identifiers.
• Securing the block data
• Securing the block header
37. Fundamental theories - Asymmetric – Key
Cryptography
The use of asymmetric-key cryptography in blockchain networks.
• Private keys are used to digitally sign transaction
• Public keys are used to derive addresses.
• Public keys are used to verify signature generated with privates
keys
• Asymmetric- key cryptography provides the ability to verify that
the user transferring values to another user is in possession of the
private key capable of signing the transaction.
42. Physical Transaction : Alice hands Bob her Concert
Ticket
• Alice gives Bob a concert ticket, it is no longer in her possession
• Ticket is now in Bob’s hands
• This is called “transaction” that happens in the physical world
43. Digital Transaction
• In digital world :
• Everything we send over the internet is necessarily a copy
• Difficult to verify
• Difficult to know who owns it or modified it before we receive it
• Concept of unique digital property
• ability to transfer it over the internet between user
• ability to send (peer-to-peer)
• Examples:
• concert tickets
• identification cards
• Certificates
• money between digital devices
44. Alice hands Bob her Concert Ticket via email
• What if Alice made copies or “forgeries” of the digital ticket?
• What if Alice put the same digital ticket online for all to download
45. Note
• Counterfeiting is the act of illegally creating facsimiles of a product,
document, or currency.
• Counterfeiting is the biggest challenge globally for legal and financial
documents and valuable goods, such as drugs, food products, luxury
clothes, and jewelry.
• It costs companies more than 7 percent of their annual expenditures,
amounting to almost $4 trillion each year on a global scale.
46. • A digital ticket is a string of ones and zeros.
• Who is the true owner of the digital ticket ?
• What stops Alice from trying to “spend” the same digital asset twice
by also sending it to Charlie?
• Answer is : a ledger
• Ledger will track a single asset: Digital Cinema Ticket
47. Ledgers
• Principal Recordings of Accounts
Proto Cuneiform :Its original purpose was to maintain records of the vast amounts of
production and trade of goods and labor during the first flowering of the
urban Uruk period Mesopotamia.
Personal Ledger
Proto Cuneiform Uruk, ca
3000 B.C
48. • Alice gives Bob the digital cinema ticket
• ledger records the transaction.
• Bob has the ticket, and Alice does not
• New Problem : whose job will it be to hold the ledger?
• Alice can’t hold it, because she might erase the transaction
• Bob cant have it , because he might say Alice gave him two tickets.
• Solution: trusted third party
49. • Dave : trusted third party , an intermediary who is not involved in the
transaction at all
• Dave will hold the ledger and make sure that it’s up to date.
50. • Problems :
• Dave charge a fee
• Dave adds a false transaction to the ledger (Dave wants the digital cinema
ticket for himself )
• Solution: Decentralize Trust
• Alice and Bob could distribute the ledger to all their trusted friends, not just
Dave, and decentralize trust.
52. • Alice can’t claim that she never sent a digital ticket to Bob
• her ledger would not agree with everyone else’s.
• Bob couldn’t claim that Alice gave him two tickets
• his ledger would be out of sync
• if Alice bribes Dave to change his copy of the ledger,
• Dave only holds a single copy of the ledger;
• majority opinion would show the digital ticket was sent
The more trusted people that hold the ledger, the stronger it becomes
53. Distributed Ledger
• One of the core concepts of block chain where each user of the block
chain has the copy of the blocks of transactions
• If any participant or a hacker tries to manipulate data the users could
deny the transactions
57. KEY ELEMENTS - Distributed ledger technology
• Definition
Distributed ledger technology(DLT) is one of the key technologies
responsible for restoring Web openness without compromising its
security.
A distributed ledger is a distributed record of transactions,
maintained by consensus between networks of peer nodes
58. Types of Blockchain Networks
• Public blockchain networks
• Private blockchain networks
• Licensing blockchain networks
• Alliance/Consortium Blockchain
59. KEY ELEMENTS - Distributed ledger technology
• DLT Type
• Permissive: every ledger is accessible
• Bitcoin and the Ethereum blockchain are an example of a permission less blockchain
• Licensing: The ledger is maintained by authorized nodes and is accessible only to
registered members
60. KEY ELEMENTS - Distributed ledger technology
• The function of the DLT
• Pseudo anonymity
• Transparency
• Small transaction size
• Invariance
• Bloackchain order guarantee
• Decentralization
• Replication and synchronization assurance
• Integrity protection
66. KEY ELEMENTS- Consensus protocols
In the blockchain system, how to make each node consistent with its
own data through a rule is a core problem. The solution to this problem
is to develop a set of consensus algorithms to achieve the consistency
and correctness of ledger data on different ledger nodes. This needs to
learn from the existing algorithms to achieve state consensus in
distributed system, determine the mechanism of choosing account
nodes in the network, and how to ensure the correct and consistent
consensus of ledger data in the whole network. Consensus algorithm is
actually a rule, each node according to this rule to confirm their own
data.
67. KEY ELEMENTS- Consensus protocols
Properties
• The initial state of the system is agreed upon (e.g., the genesis
block).
• Users agree to the consensus model by which blocks are added to
the system
• Every block is linked to the previous block by including the
pervious block header’s hash digest ( expect for the first ‘ genesis’
block, which has no previous block and for which the hash of the
previous block header is usually set to all zeros)
• Users can verify every block independently.
68. KEY ELEMENTS- Consensus protocols
• Byzantine Fault Tolerance
• Practical Byzantine Fault Tolerance
• Raft agreement
• Proof of work
• Proof of stake
• Delegated proof of strake
69. KEY ELEMENTS- Consensus protocols
• Byzantine fault tolerance(BFT) is a
property of a distributed system such
that it can tolerate components of a
system failing in arbitrary was,
processing incorrect states, rather than
simply stopping or cashing
76. KEY ELEMENTS- Smart contracts
• Definition:
A smart contract is a computer protocol that can be self- enforced
and self-validated without additional human intervention after the
protocols is created and deployed. In technical terms, a smart
contract can be consider as a computer program that can
autonomously perform all or part of the contract- related
operations and produce verifiable evidence of the effectiveness of
the execution of the execution of the contract
https://www.ibm.com/blockchain
77. KEY ELEMENTS- Smart contracts
• Types of smart Contracts:
Smart contracts are classified into board smart contracts and
narrow smart contracts. Smart contracts, broadly defined as computer
programs that run on a blockchain, have a wide range of applications. In
the narrow sense, smart contracts is an event-driven, stateful computer
program that runs on the blockchain infrastructure based on agreed rules
and can save assets on the ledger. It uses program code to encapsulate
and verify complex transaction behaviors and realize information
exchange, values transfer and asset management and can be executed
automatically.
• Scripted smart contracts
• Turing- Complete smart contract
• Verifiable contract smart contract
https://www.ibm.com/blockchain
79. KEY ELEMENTS- Smart contracts
• Smart Contract projects:
The simplest contract is: the information is upload to the blockchain
both parties sign and confirm both parties agree the contract is stored .
• Language
• Hawk
• OpenBazzar
• Ethereum
• Codius
• hyper ledger
https://www.ibm.com/blockchain
80. KEY ELEMENTS- Smart contracts
• Basic features of smart contracts:
• Advantages
• Credibility
• Transaction require no third party
• Efficient real-time updates;
• Lower cost
• Current problem
• Irrevocable
• Legal effect
• Security breach
81. KEY ELEMENTS- Smart contracts
• Application scenarios of smart contracts
• Legal aspects
• The financial aspects
• Public welfare charity
86. Blockchain for industries
• The supply chain
• Health care
• The government
• Retail trade
• Media and Advertising
• Oil and gas industry
• The telecoms industry
• The insurance industry
• Financial industry
• Tourism industry
87. Blockchain for industries
The supply chain
Supply chain data is not always visible, available , or trusted.
Blockchain helps supply chain partners share trusted data with
licensed Blockchain solutions
• Benefits
• Industry case
• Leveraging blockchain to advance global trade
• Pharmaceutical anti-counterfeiting
• Responsible mineral procurement
88. Blockchain for industries
The government
By automating redundant process and sharing data among
permissioned network members in a decentralizes way, blockchain
reduces traditional friction between systems and unlock the value
long trapped inside hardened organizational silos
• Benefits
• Industry case
• Trusted vaccine distribution
https://www.ibm.com/blockchain
89. Blockchain for industries
The telecom industry
Blockchain has not only brought a brand new credit model to the
telecom industry, but also made its digital services more
competitive, thus helping the telecom industry to reduce costs and
bringing a brand new perspective to the field
• Benefits
• Industry case
• Business management
• Business services
• Network operation
https://www.ibm.com/blockchain
90. Blockchain for industries
Financial services
Leading financial institution are trailblazing the way forward with
Blockchain, working together to remove longstanding friction, create
new solutions and deliver tangible business outcomes
• Benefits
• Industry case
• Plastic Bank
• Improve cryptocurrency security
• First mover advantage in clearing and student settlement
https://www.ibm.com/blockchain
92. BLOCKCHAIN SOLUTIONS
• Vaccine distribution
• Healthcare and life sciences
• Supply chain transparency
• Food trust
• Trusted supplier management
• Tradelens container logistics
• Guarantee
• Trade finance
• Digital identity management
• Learning certificate
93. BLOCKCHAIN SOLUTIONS
Vaccine distribution
1. The solution: Open regulatory pharmaceutical network
Establish a licensed open source data exchange platform to unify
diverse, localizes vaccine management strategies into a single, integrated
view, while enabling participants to continue to use their preferred
recording and interactive systems
2. Application case: Drug anti- counterfeiting
in some countries or regions, counterfeit medicines account for 70
percent of all medicines in the supply chain. KPMG, Merck, Walmart, and
IBM recently ran a pilot project that used blockchain to cut the time it
takes to send a product recall alert across the supply chain from days to
seconds, building new trust in the system
https://www.ibm.com/blockchain
94. BLOCKCHAIN SOLUTIONS
Health care and life sciences
1. Solution for the healthcare industry: verify health credentials
Based on IBM Blockchain technology, the solution is designed to help
organizations verify health credentials in a privacy-ensuring manner, and
individuals can manage their information through an encrypted digital electronic
wallet on their smartphone.
2. Solution for the life science industry : Bring trust and transparency to clinical
trails .
Boehringer Ingelheim and IBM are exploring the use of blockchain technology in
clinical trials. The aim is to increase trust and transparency among all
stakeholders, particularly with regard to patient consent and data management
97. • Visibility for procurement with data analytics
• builds trust and offers visibility using permanently retained historical data to authenticate everyone
involved in a deal.
• each side can be assured of the other party’s trustworthiness
• Eliminates chances of fraud with incorruptible information
• brings transparency to a complex supply chain
• merges the physical, financial, and digital information together, to reveal sources of value leakage
• Ensures durable, robust, and secure processes
• sellers and buyers alike are always who they say they are and products are always the right ones
• Since prices cannot be modified, the whole process of invoices will be rendered obsolete in the
future
• If purchase order is represented as a block in the blockchain, it invariably becomes an immutable
digital entity.
98. • Digital contracts and payments simplify finance
• Decentralized ledger can simplify payments in retail banks, particularly international
payments that involve high fees and take several days to complete.
• brings down the capital required by banks to verify customer identities.
99. BLOCKCHAIN SOLUTIONS
Supply chain transparency
1. The solution:Improve efficiency based on mutual trust
Create your own Blockchain ecosystem based on leading networks, leveraging IBM
Blockchain Transparent Supply to share data with trusted Supply chain partners. Speed up
transactions with real-time end-to-end visibility through an immutable shared ledger.
2. Application cases:
1)IBM Food Trust
More than 200 companies in the food ecosystem are sharing data and tracking food
journeys across the value chain.
2)Farger Connect
Built specifically for the coffee industry, this blockchain platform connects farmers and
consumers to create shared value and transform the entire industry.
100. BLOCKCHAIN SOLUTIONS
Digital identity management
1. IBM Digital Credentials
Work with IBM to leverage this secure and trusted blockchain-based platform to
build the unique capabilities you need to issue, manage and verify digital credentials. IBM
Digital Credentials provides individuals and organizations with a security-rich hub for
credentials accumulated over a lifetime.
• 2. Learning Credential Network
Great jobs await great candidates, but matchmaking is difficult. Join the Learning
Credential Network, built by IBM and its partners, to help learners, job seekers,
employers and educators collaborate to develop skilled workers, and get the right people
in the right jobs.
102. Use cases of Blockchain for Cybersecurity
• Secure private messaging
• most of the users protect their services and data with weak and unreliable
passwords , causing data breaches and providing user information in the wrong
hands.
• Many messaging companies are switching to Blockchain to provide end-to-end
encryption and secure users’ data.
• IoT security
• Ex: vulnerable edge devices like Smart switches provide hackers easy access to the
overall home automation system.
• Blockchain efficiently secures such vulnerable systems and devices by decentralizing
their administration
• Blockchain combined with AI and IoT technology enables devices to make security
decisions on their own
103. • Secure DNS and DDoS
• DNS attack renders the website cashable, inaccessible and redirectable to other scam
websites.
• DDoS attack occurs when a targetted resource such as a server or a website is denied
service or access. Such attacks overload the site, dramatically slow down or shut
down the resource system.
• Blockchain decentralizing the DNS entries
• Decentralization removes the vulnerable single-point entry exploited by the
attackers.
• Provenance of software
• Verification of cyber-physical infrastructures
• Reduced human safety adversity caused by cyberattacks
110. Recruitment
• If you’ve ever tried to hire a project manager, for example, you’ll have
found that projects can range from building a nuclear power station
to arranging the office Christmas party.
• One way in which blockchain technology can simplify the work of
identifying potential candidates is to provide a database of people
with experience and skills that are accurately validated.
111. Taxes and Audit
• Makes managing cross-border payments and employee mobility
easier (including international expenses and tax liabilities).
• Blockchain makes it easy to record ones everyday transactions and
allow smart contracts to do the tax calculations for you.
114. • Telecom industry today has the most complex operations framework,
involving many partners, vendors, customers, distributors, network
providers, VAS providers
• There are a lot of trust issues and transparency challenges due to the
involvement of multiple entities.
• Also, there are no clear mechanism to track end-to-end activities of
every entity.
116. Telecom : Internal processes
• OSS (Operation Support System) and BSS processes (Business Support System)
such as billing and number portability databases can be streamlined using
blockchain
• The interest groups can validate billing without hassle. This is possible with the
help of an intercompany blockchain shared among customers, VAS providers,
VPMN, HPMN and telecom companies.
• Also, a migrating customer can be quickly on-boarded on network after receiving
a porting request, if receiving operator shares blockchain with porting
customer’s operator.
117. Telecom: Roaming
• Blockchain can solve the age old problem of operators to integrate
high-cost systems and provide access/authentication settings for
enabling roaming calls across networks and operators.
• Blockchain can enable complex datasets across multiple parties, in
real time with high trust and security, particularly for establishing
subscriber identity.
118. Telecom: Smart connection
• With the help of Blockchain, device connection can be provided to
multiple local hotspots and WIFIs based on permission and adherence
to certain terms and conditions.
• It also helps with automatic generation of billing amount and
payments.
119. Telecom : Smart transaction
• Blockchain has enabled purchasing of digital assets, including music,
mobile games, gift cards and loyalty points .
120. Telecom: Mobile money
• Blockchain has enabled cost-effective international remittances
across the globe with very minimal transaction charges.
• Telecom operators can become global remittance providers.
121. Identity management
• Operators could develop identity management tool that are
accessible to organizations, devices and applications.
122. Blockchain Startups Impacting The Telecom Sector
• Telcoin – Smartphone-Based Money Transfers
• Japanese startup Telcoin leverages blockchain to enable telecommunication
operators to provide money transfer services.
• Telcoin Wallet is built on the Ethereum blockchain, and mobile users make
global transfers instantly, irrespective of local mobile service providers.
• The startup issues TEL (native tokens) to telecom operators, based on the
volume of their transactions and integration capabilities.
• This service also offers considerably lower foreign exchange rates, making it
an affordable money transfer option.
123. Ammbr – Autonomous Bandwidth Sharing
• Singapore-based startup Ammbr develops a wireless mesh network for
internet sharing.
• With the help of blockchain, the startup enables users to connect their routers
to a wireless mesh network.
• Ammbr uses AMR, a cryptocurrency, capable of autonomously buying and
selling internet bandwidth.
• This also enables the startup to support a large volume of micro-transactions,
in turn, ensuring a smooth and seamless exchange of internet bandwidth
between users.
124. QLC chain – Text Message-Based Billing
• Chinese startup QLC Chain utilizes blockchain technology to provide
network-as-a-service (NaaS) solutions.
• This network utilizes a multidimensional block-lattice structure
embedded with telecommunication capabilities.
• Telecom operators use this ledger as a short message service (SMS)-
based billing system that allows for instant clearance and secure
transactions.
• The startup’s suite of wallets also supports the NEO Enhancement
Protocol (NEP)-5
125. BitMinutes – Decentralized Mobile Minutes
• The US-based startup BitMinutes uses its proprietary smart token
technology to provide end-users with prepaid minutes.
• With the help of both traditional and blockchain-based payment
networks, the startup provides BitMinute utility tokens (BMTs) to its
users.
• The startup issues BMTs to senders only with a custom unique
identifier (UID) in order to prevent fraud and money laundering.
• These BMTs are later sent to the recipient’s mobile wallet in a text
message, email, or using a smartphone app.
126. FIX Network – Cellular Device Security
• Lithuanian startup FIX Network provides blockchain-based solutions
for cellular security.
• With the help of a decentralized ledger, the startup enables smooth
transitions between devices for users.
• A secure blockchain protocol stores the private keys and personal
data, in turn, allowing mobile operators to protect their customers’
digital currencies and identities.
127. Way Forward
• Blockchain solutions are instrumental in enabling interoperability
between
• internal as well as external systems for telecom companies.
• This can bring down infrastructure as well as compliance cost, and
save operators from roaming/identity fraud.
• Telecom industry today faces the challenge of eroding margins.
• There is a high pressure to cut down the cost and at the same time
adopt service innovations.
• Blockchain is the right tool to not only bring in service efficiencies and
innovation, but also keep a check on fraudulent practices.
129. BLOCKCHAIN IN TRAVEL AND HOSPITALITY
Passengers store their authenticated “single travel ID” on the
blockchain for use in lieu of travel documents, identifications cards,
loyalty programs IDs, and payment data
130. BLOCKCHAIN IN INSURANCE
When autonomous vehicles and other smart device communicate
status updates with insurance providers via the blockchain, premium
costs decrease as the need for auditing and authenticating data
vanishes
131. BLOCKCHAIN IN ENERGY
Decentralized energy transfer
and distribution are possible
via micro- transactions of data
sent to blockchain, validated,
and re-dispersed to the grid
while securing payment to the
submitter
132. BLOCKCHAIN IN EDUCATION
• Educational institutions could
utilize the blockchain to store
credentialing data around
assessments, degrees, and
transcripts eliminating chance
of lost of results slips
133. BLOCKCHAIN IN GOVERNMENT
Blockchain offers premise as a technology to store
personal identify information, criminal background,
and “e-citizenship,” authorized by biometrics
138. Blockchain as a Service (BaaS)
• Blockchain as a Service (BaaS) is a type of blockchain service offering
that allows business customers to use cloud-based solutions to
develop, host and adopt their own blockchain applications, smart
contracts and other relevant functions on the blockchain while the
cloud-based IT partner or service provider manages all the required
tasks and activities to keep the infrastructure up and running.
141. Blockchain versions
Blockchain 1.0: Currency
The implementation of DLT (distributed ledger technology) led to its first and obvious
application: cryptocurrencies. This allows financial transactions based on blockchain
technology. It is used in currency and payments. Bitcoin is the most prominent example in
this segment.
Blockchain 2.0: Smart Contracts
The new key concepts are Smart Contracts, small computer programs that “live” in the
blockchain. They are free computer programs that execute automatically, and check
conditions defined earlier like facilitation, verification, or enforcement. It is used as a
replacement for traditional contracts.
Blockchain 3.0: DApps:
DApps is an abbreviation of decentralized application. It has its backend code running on
a decentralized peer-to-peer network. A DApp can have frontend Blockchain example
code and user interfaces written in any language that can make a call to its backend, like a
traditional App.
144. Pros of Blockchain
• Improved accuracy by removing human involvement in verification
• Cost reductions by eliminating third-party verification
• Decentralization makes it harder to tamper with
• Transactions are secure, private, and efficient
• Transparent technology
• Efficiency and speed
145. Limitations of Blockchain technology
• Higher costs: Nodes seek higher rewards for completing Transactions
in a business that work on the principle of Supply and Demand
• Slower transactions: Nodes prioritize transactions with higher
rewards, backlogs of transactions build-up
• Smaller ledger: It is not possible to a full copy of the Blockchain,
potentially which can affect immutability, consensus, etc.
• Transaction costs, network speed: The transactions cost of Bitcoin is
quite high after being touted as ‘nearly free’ for the first few years.
146. • Risk of error: There is always a risk of error, as long as the human
factor is involved. In case a blockchain serves as a database, all the
incoming data has to be of high quality. However, human involvement
can quickly resolve the error.
• Wasteful: Every node that runs the blockchain has to maintain
consensus across the blockchain. This offers very low downtime and
makes data stored on the blockchain forever unchangeable. However,
all this is wasteful because each node repeats a task to reach a
consensus.
147. IBM & Blockchain
• IBM offers Blockchain as a Service (announced this Monday)
https://www.ibm.com/blockchain/getting-started.html
• Create private and secure digital assets in test applications that can be traded quickly and
securely over a permissioned network
• Uses hyperledger fabric
https://hyperledger-fabric.readthedocs.io/en/latest/
• This is also on github
https://github.com/hyperledger/fabric/blob/master/docs/source/index.rst
• In June 2016, IBM opened an incubator in Singapore where 5,000 computer scientists
work to build rapid prototypes using the company's blockchain and Watson Al tools for
businesses in the APAC region
• "Watson and blockchain are two technologies that will rapidly change the way we live
and work" - Randy Walker, IBM CEO APAC
148. Microsoft & Blockchain
• Blockchain as a Service
https://azure.microsoft.com/en-us/solutions/blockchain/
• Ethereum Blockchain as a Service on Azure
https://www.oreilly.com/topics/data-fintech
• Project Bletchley is Microsoft's Blockchain Architectural approach
https://github.com/Azure/azure-blockchain-
projects/blob/master/bletchley/bletchley-whitepaper.mdf
• Open source code is on github
https://github.com/Azure/azure-blockchain-projects/tree/master/bletchley
• They learned that Consortium blockchains, which are members-only, permissioned
networks for consortium members to execute contracts, are ideal
155. BLOCKCHAIN – BASED SMART CITY
• Blockchain application in smart city
• Credible urban infrastructure
• City- level data sharing exchange platform
• Operation security audit system
• Improvement the efficiency level of urban governance
• Build trust
• Strengthen business synergies
156. BLOCKCHAIN + FEDERAL LEARNING
Artificial intelligence is productivity, bloackchain is production
relationship, big data is the factor of production, which is the
consensus of most blockchain practitioners.
How to maintain the balance between data privacy protection and
data open sharing has become the biggest constraint on large-scale
application landing. The industry generally uses federal learning
technique to solve problems. It enables independent AI system to
use their data more efficiently and accurately for model training and
prediction, while meeting data privacy, security, and regulatory
requirements .
158. DAPP on Ethereum
• How to write a contract
• Test it on a local blockchain
• Deploy it on an external blockchain for deep testing
• Commmercial Use
159. Technologies
• Solidity: an object-oriented language for contract development
• Reminx: an open source IDE for developing and testing contracts.
• Ganache : To deploy the tested contract on an external Blockchain
• MyEtherWallet : To create a wallet for each such client.
Now lets look at the key lement of BCT
I devided 4 part to focus to introduce key element
All present BCT contain these 4 key elements
Fundamental : basic concepts and principals of BCT
lets talk about fundamental theories
Concept : trasactions
BCT addressses and Address Derivation, are also fundamental concepts.
Lets look at Cryptographic Hash Functions first
Shifting letter in the space
Although the messages, which were deciphered with a set of daily keys, were hard to crack, the whole operation proved breakable after a lot of hard work (British mathematician Alan Turing was a very important figure behind that effort). Because Germany’s movements became predictable, that work helped turn the tide of the war and sped up the Allies’ victory.
During war encrption is extremely important
Engima machine used to encript and decript messages. Think of this as very sophisticated message scrambler. It was invented in the early 1900s(19 hundreds). Famously it was used by german militery in the 1930s throughout world war 2.
Keyboard and lamp board (on top). Each time you press a letter on the lamp board lights up.
Both parties needs engima machine
Imitation Games : owthemoviewaswonderful,becauseitsaidTuringcracked it. And he did help crack it in an automated way, but actually, the Polish government had cracked it in the 1930s before they fell to the Germans.
one-way hash function is designed in such a way that it is hard to reverse the process, that is, to find a string that hashes to a given value (hence the name one-way.) A good hash function also makes it hard to find two strings that would produce the same hash value.
Everyone knows how important it’s to protect such information. Everyone who uses the internet would agree that security breaches are major causes of endless financial strife and customer dissatisfaction.
Intergrity :Data or information in your system is maintained so that it is not modified or deleted by unauthorized parties
full cryptographic hash function like MD5 or SHA1/2/256/512.
https://aboutssl.org/hashing-vs-encryption/
Hash function defenition and their security properties.
Cryptography is independent research area
Lets look at the picture(Lett ) : demostrate hash function defenition or why we call this
Hash algorith map binary value of an arbitary length, to a small binary value of a fixed length . We call them hash value
Hash input, hash function , finxed hash output
3 security properties
One way hash algorithm, it is difficult to get original stream from the hash value
Collision: different message produce same hash value
Good hash function should avoid collision
Collision methods are 2 types,
IN BC Cryptographuuc hash function has many use or different tasks
We list several task here
Address derivation
Verification check
Also know public key cryptographic :
Reatively new method
2 kind of key : one public other secret key(private)
Public key share , internet or in large network
Secret key use to decript the message
Security of public key is not important we can pass it in internet
Pubic and private key related together and it boost security
Public key is visible to anyone who want to send a message
This method is used in day to day communication channel over the internet
Populer: Assymetri key cryptography include, RSA, DSA, ECC
From all of this we can see that Assyemetric key cryptography is the key element or the fundamental way to used in BCT. Because it is related with digital signature
Alice to send money to BOB data recorded in BC
One block contain transaction
Another
A transaction represents an interaction between parties.
With cryptocurrencies, for example, a transaction represents a transfer of the cryptocurrency between blockchain network users.
For business-to-business scenarios, a transaction could be a way of recording activities occurring on digital or physical assets.
Figure 1 shows a notional example of a cryptocurrency transaction.
Each block in a blockchain can contain zero or more transactions.
A single cryptocurrency transaction typically requires at least the following information, but can contain more
Input and Output information
The provenance of digital property over the internet is, therefore, difficult to verify. We cannot know who owns it and we cannot be sure if it was modified before we receive it.
who is the true owner of the digital ticketIf Alice and Bob “own” the same string of ones and zeros, ?
A ledger is a book or collection of accounts in which account transactions are recorded
Its original purpose was to maintain records of the vast amounts of production and trade of goods and labor during the first flowering of the urban Uruk period Mesopotamia.
Alice can’t hold it because she might erase the transaction and say that she still owns the digital cinema ticket, even though she gave it to Bob. It also can’t be Bob, because he could alter the transaction and lie to say that Alice gave him two tokens, doubling his entry to the movie.
What if Dave decides to charge a fee that neither Alice or Bob want to pay?
Maybe Dave wants the digital cinema ticket for himself,
and adds a false transaction to the ledger in order to steal it, saying that Bob gave him the ticket?
what happens when Alice and Bob cannot trust the trusted third party
If Alice or Bob wanted to falsify a transaction, they would have to compromise the majority of participants, which is much harder than compromising a single participant.
Most crypto currency include public BC: anyone can participate it
Public : no authority, bitcoin, etherium and other crypto currencies
Weak security, more transaction power
Private managing roles peers. Someone manage who is participating in network
it is weired but technology can use in many scenario.
This improve trust and confident between participats
Run behind cooperate
Alliance: combines manny organizations together ,
Collaborative network in public
Pseudo anonymity :
This means that users are anonymous, but their account identifiers are not; additionally, all transactions are publicly visible. This has effectively enabled Bitcoin to offer pseudo-anonymity because accounts can be created without any identification or authorization process (such processes are typically required by Know-Your-Customer (KYC) laws).
Licenced blockchaon may not contain this property
Transparency: every participant can see all transaction on BC. Although they may be anonymous. THIS property may also not available in lincens systems.
Small transaction size: database so size is important, BC is originally designed for currency transactions. So messages assumed to be relatively small. Also BCT used in ,
For ex: we designed and implemt data sharing BC , data sharing include video, very big data files, so how to implement small size DLT is key design point. Small transaction size focus on cryptocurrency scenario
Invariance: Since cryptocurrencies hash chain on record link together. If one change , Change require recalculation of entire chain which need lot of computational power and very hard
Bloackchain order guarantee: sequence relation ship between previous one and next one, order is fixed , so consensus ensure mechanism block order, time stamp is include in block header.
Decentralization: there is no central record keeping body
Replication and synchronization assurance: each node has same copy of all transaction records with latest updates.
Integrity protection : cryptographic hashes use to records has not changes
Blocks are chained together through each block containing the hash digest of the previous block’s header, thus forming the blockchain. If a previously published block were changed, it would have a different hash. This in turn would cause all subsequent blocks to also have different hashes since they include the hash of the previous block. This makes it possible to easily detect and reject altered blocks
Hyper Ledger Fabric: kind of framewrk. Fundamental platform from IBM
RIPPLE: currently use widely DLT platform. Consensous model is different
Without node crashing
The proof of stake (PoS) model is based on the idea that the more stake a user has invested into the system, the more likely they will want the system to succeed, and the less likely they will want to subvert it. Stake is often an amount of cryptocurrency that the blockchain network user has invested into the system (through various means, such as by locking it via a special transaction type, or by sending it to a specific address, or holding it within special wallet software).
Once staked, the cryptocurrency is generally no longer able to be spent. Proof of stake blockchain networks use the amount of stake a user has as a determining factor for publishing new blocks. Thus, the likelihood of a blockchain network user publishing a new block is tied to the ratio of their stake to the overall blockchain network amount of staked cryptocurrency.
Collect network fees
Ripple network
Blue dot : is validation nodes
Smart contracts gives transaction logic
Higher trust: ttrusted environment, trsuted insfrastructure,
Higher Efficiency : ex: data , document sharing plaotform, it has higher trust, better security, data share is more easy. SO higer efficiency
BC has new technology still need to grow
counterfeit means to imitate something authentic, with the intent to steal, destroy, or replace the original,
Fake, similr
merges the physical, financial, and digital information together, to reveal sources of value leakage — from everyday inefficiencies to fraud and abuse. It also helps the complex supply chain find new strategies to combat them.
In deterministic models, the output of the model is fully determined by the parameter values and the initial values, whereas probabilistic (or stochastic) models incorporate randomness in their approach. Consequently, the same set of parameter values and initial conditions will lead to a group of different outputs.
BC and AI their combination specific project like smart city.
Blockchin based smart city]
Smart city is future tresnt