Blockchain without Bitcoin. Muralidhar Gopinath October 19, 2017 University at Albany

Transcription

1 Blockchain without Bitcoin Muralidhar Gopinath October 19, 2017 University at Albany

2 What is Blockchain? Contains records (blocks) that are linked (chained) to one another using cryptography Each block contains transactional data, timestamp and a hash pointer to the previous block Communication regarding the transactions are done on a peer-to-peer network It is a decentralized model Conceptualized by an anonymous group or person called Satoshi Nakamoto who published a paper in October 2008 called Bitcoin: A Peerto-Peer Electronic Cash System

3 What is Blockchain? (Contd..) Due to the structure and organization of the blocks and the security measure built into the system they are resistant to changes They can be used as an open and distributed ledger Every time a transaction occurs between two parties it is broadcasted to all the nodes in the system

4 Illustration

5 Illustration - Peer to peer broadcast - Transactional information - Transactional signature - Series of blocks

6 Blockchain in other industries Supply chain IoT Insurance Ride sharing Data storage Healthcare And more (Donations, Music, Retail, E-wallets etc.)

7 Supply chain For a company to be profitable it needs to be able to manufacture and distribute its products efficiently The management of this productions and distribution involves software (inventory management, ERP tools etc), paperwork (invoices, purchase orders etc) and bank transactions While the use of the software has a fee attached to them, the paper work is prone to human error and misrepresentation Due to the elaborate process involved in getting a product from the manufacturer to the consumer the distribution is often slow Blockchain induces trust factor (rating system) and visibility into the system It can also help identify and avoid counterfeit products ex skuchain, blockverify

8 Internet of Things IBM and Samsung presented a proof of concept called ADEPT (Autonomous Decentralized Peer-to-peer Telemetry) in CES 2015 BitTorrent, Ethereum and TeleHash protocols were used for ADEPT The paper that was published spoke of the possibility of using ADEPT as a form of Blockchain at homes A network of devices which would autonomously maintain themselves, request for security patch and updates depending on the issues related to its operations The devices would also be able to communicate amongst each other to barter power

9 Insurance Aeternity is a blockchain technology which claims to solve the current problems in the blockchain technology related to privacy, scalability and transaction speed It uses what is called a smart contract which is agreed upon two parties Users can transact with each other privately using state channels Business transactions and smart contracts are kept off channel, there by not exposing them to the outside world This enables limitless simultaneous transaction processing Oracle enables connection of real world data to smart contracts which is useful for insurances that depend on real world data

10 Ride sharing arcade city is founded by team of former uber drivers lead by Christopher David It is peer-to-peer Not governed by a central corporation lets the driver connect with the customer directly, set the price of the ride and transact with the customers They aim to pay the drivers in Arcade Tokens in the future which is a blockchain based crypto currency Users can participate in the growth of the Arcade network by reviewing drivers, referring drivers and customers and get Arcade tokens la zooz is a similar ride sharing application where the community decides reward for driver, rider, programmers and designers according to the contributions based on a fair share model

11 Data storage

12 Data storage Data stored on traditional could storage is prone to security breach and system breakdown Blockchain based cloud storage technology like Storj is a community based could storage where the storage space is provided by the participants in the community Each file is broken down, encrypted, distributed and stored across the network The amount of storage allocated to each user depends on the amount of storage shared by the user with the community Each user is authenticated to gain access to the files owned by them and them alone

13 Healthcare Healthcare institutions today lack infrastructure to store and share sensitive health information in a secure manner Blockchain helps get rid of the closed-off approach of keeping medical records practised by many healthcare providers today It can help share medical records with authorized doctors/patients and healthcare institution bettering data security and speed of diagnosis GEM and TIERION are two services that store sensitive information in an encrypted, immutable form

14 Other Industries Donations Music Retail E-wallets

15 Pros and cons of Blockchain Pros Decentralized Impervious to full system breakdown Not controlled by a single entity Transparent Trust is built into the system Secure All participants have access to the data in the network Cons Decentralized Difficult to provide support and maintenance to the software Transparent Lack of privacy The number of blocks in the blockchain keeps increasing Error produced by a buggy code stays in the system forever

16 References