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Public blockchain A public blockchain is a blockchain where anyone in the world can become a node in the transaction process. Economic incentives for cryptographic verification may or may not be present. It is a completely open public ledger system. Public blockchains can also be called permissionless ledgers. These blockchains are secured by crypto economics, that is, economic incentives and cryptographic verification using mechanisms such as PoW or PoS or any other consensus mechanism.

Some popular examples of this type of blockchain are Bitcoin, Ethereum, Litecoin, and so on. Semi-private blockchain A semi-private blockchain is usually run by a single organization or a group of individuals who grant access to any user, who can either be a direct consumer or for internal organizational purposes.

This type of blockchain has a public part exposed to the general audience, which is open for participation by anyone. Private blockchain In private blockchains, the write permissions are with one organization or with a certain group of individuals. Read permissions are public or restricted to a large set of users. Transactions in this type of blockchain are to be verified by very few nodes in the system.

Some prime examples of private blockchain include Gem Health network, Corda, and so on. Consortium blockchain In this type of blockchain, as the name suggests, the consensus power is restricted to a set of people or nodes. It can also be known as a permission private blockchain.

Transaction approval time is fast, due to fewer nodes. Economic rewards for mining are not available in these types of blockchains. A few examples of consortium-based blockchains are Deutsche Boerse and R3 financial institutions. Byzantine generals problem This is one of the classic problems faced by various computer networks, which until recently had no concrete solution.

The problem at its root is about consensus, due to mistrust in the nodes of a network. Let's imagine that various generals are leading the Byzantine army and are planning to attack a city, with each general having his own battalion. They have to attack at the same time to win. The problem is that one or more of generals can be disloyal and communicate a duping message.

Hence, there has to be a way of finding an efficient solution that helps to have seamless communication, even with deceptive generals. Later, in , the first practical implementation was made with the invention of Bitcoin by the development of PoW as a system to achieve consensus. We will be discussing in detail the BGP in later chapters. Consensus Consensus is the process of reaching a general agreement among nodes within a blockchain.

There are various algorithms available for this especially when it is a distributed network and an agreement on a single value is required. Mechanisms of consensus: Every blockchain has to have one mechanism that can handle various nodes present in the network.

Some of the prime mechanisms for consensus by blockchain are the following:. Proof of Work PoW : This is the most commonly used consensus mechanism, also used by the first ever cryptocurrency, Bitcoin. This algorithm has proven most successful against Sybil attacks.

Proof of Stake PoS this makes the mining of new blocks easier for those who have the highest amount of cryptocurrency. Delegated Proof of Stake DPOS one small change it has over PoS is that each node that has a stake can delegate the validation of a transaction to other nodes by means of voting.

Proof of Importance POI this is designed to be energy efficient and can also run on relatively less powerful machines. It relies on stake as well as the usage and movement of tokens to establish trust and importance. Proof of burn PoB this is mostly used for bootstrapping one cryptocurrency to another. The basic concept is that miners should prove that they have burned coins, that is, they have sent them to a verifiable unspendable address.

Proof of activity PoA : A random peer is selected in this from the entire network to sign a new block that has to be tamper-proof. Blockchain in a nutshell It is time to discuss the benefits as well as the challenges or limitations faced by blockchain technology, and what steps are being taken by the community as a whole.

Benefits If it's all about trust and security, do we really need a trusted system, even after everything is already highly secure and private? Let's go through the limitations in each of the existing ecosystems where blockchain is a perfect fit. Banking records Record keeping and ledger maintenance in the banking sector is a time and resource-consuming process, and is still prone to errors.

In the current system, it is easy to move funds within a state, but when we have to move funds across borders, the main problems faced are time and high costs. Even though most money is just an entry in the database, it still incurs high forex costs and is incredibly slow. Medical records There are lot of problems in record keeping, authentication and transferring of records at a global scale, even after having electronic records, are difficult when implemented practically.

Due to no common third party, a lot of records are maintained physically and are prone to damage or loss. During a case of epidemiology, it becomes essential to access and mine medical records of patients pertaining to a specific geography.

Blockchain comes as a boon in such situation, since medical records can be easily accessible if stored in the blockchain, and they are also secure and private for the required users. Government records Any government agency has to deal with a lot of records for all of its departments; new filings can be done on blockchain, making sure that the data remains forever secure and safe in a distributed system.

This transparency and distributed nature of data storage leads to a corruption- free system, since the consensus makes sure the participants in the blockchain are using the required criteria when needed. Creative and copyright records Copyright and creative records can be secured and authenticated, keeping a tab on copyright misuse and licensing. One premier example of this is KodakCoin, which is a photographer-oriented cryptocurrency based on blockchain, launched to be used for payments of licensing photographs.

University degree records Verification, authentication, and inspection is hard. It is highly prone to theft and misuse. Blockchain can offer a great semi-private access to the records, making sure signing of degrees is done digitally using blockchain. Gradual record keeping of degrees and scores will benefit efficient utilization of resources as well as proper distribution and ease in inspection process.

The preceding are just some of the varied use cases of blockchain, apart from Bitcoins and alternative cryptocurrencies. In the coming chapters, we will be discussing these points in much more detail. Challenges As with any technology, there are various challenges and limitations of blockchain technology. It is important to address these challenges and come up with a more robust, reliable, and resourceful solution for all. Let's briefly discuss each of these challenges and their solutions.

Complexity Blockchain is complex to understand and easy to implement. However, with widespread awareness and discussions, this might be made easier in the future. Network scalability If a blockchain does not have a robust network with a good grid of nodes, it will be difficult to maintain the blockchain and provide a definite consensus to the ongoing transactions.

Speed and cost Although blockchain-based transactions are very high in speed and also cheaper when compared to any other conventional methods, from time to time, this is becoming difficult, and the speed reduces as the number of transactions per block reduces. In terms of cost, a lot of hardware is required, which in turn leads to huge network costs and the need for an intermittent network among the nodes. Various scaling solutions have been presented by the community.

The best is increasing the block size to achieve a greater number of transactions per block, or a system of dynamic block size. Apart from this, there are various other solutions also presented to keep the speed reduced and the costs in check. In this case, if a certain miner or group of miners takes control of more than half of the computing power of blockchain, being open in nature, anyone can be a part of the node; this triggers a 51 attack, in which, due to majority control of the network, the person can confirm a wrong transaction, leading to the same coin being spent twice.

Another way to achieve this is by having two conflicting transactions in rapid succession in the blockchain network, but if a lot of confirmations are achieved, then this can be avoided. There are various other features that will be discussed in the coming chapters, it should be noted that all of these features exist in the present systems but considering active community support, all these limitations are being mitigated at a high rate. Summary This chapter introduced us to blockchain.

First, ideas about distributed networks, financial transactions, and P2P networks were discussed. Then, we discussed the history of blockchain and various other topics, such as the elements of blockchain, the types of blockchains, and consensus. In the coming chapters, we will be discussing blockchain in more detail; we will discuss the mechanics behind blockchain, Bitcoins. We will also learn about achieving consensus in much greater detail, along with diving deep into blockchain-based applications such as wallets, Ethereum, Hyperledger, all the way to creating your own cryptocurrency.

Components and Structure of Blockchain Blockchain is not a single technology, but more of a technique. A blockchain is an architectural concept, and there are many ways that blockchains can be be built, and each of the variations will have different effects on how the system operates. In this chapter, we are going to cover the aspects of blockchain technology that are used in all or most of the current implementations. By the end of this chapter, you should be able to describe the pieces of a blockchain and evaluate the capacities of one blockchain technology against another at the architectural level.

For instance, Bitcoin and Ethereum are proof-of-work blockchains. Ethereum has smart contracts, and many blockchains allow custom tokens. Blockchains can be differentiated by their consensus algorithm PoS, PoW, and others — covered in Chapter 7, Achieving Consensus, and their feature set, such as the ability to run smart contracts and how those smart contracts operate in practice.

All of these variations have a common concept: the block. The most basic unit of a blockchain is the block. The simplest way of thinking of a block is to imagine a basic spreadsheet. In it, you might see entries such as this:. A block is a set of transaction entries across the network, stored on computers that act as participants in the blockchain network.

Each blockchain network has a block time, or the approximate amount of time that each block represents for transactions, and a block size: the total amount of transactions that a block can handle no matter what. If a network had 10,, transactions, then there may be too many to fit inside the block size. In this case, transactions would have to wait for their turn for an open block with remaining space.

Some blockchains handle this problem with the concept of network fees. A network fee is the amount denominated in the blockchain's native token that a sender is willing to pay to have a transaction included in a block. The higher the fee, the greater the priority to be included on the chain immediately. The chain between blocks In addition to the transaction ledger, each block typically contains some additional metadata. The metadata includes the following:.

A reference to the prior block Metadata about the network The Merkle root of the transactions, which acts as a check of the validity of the block. These basics tend to be common for all blockchains. Ethereum, Bitcoin, Litecoin, and others use this common pattern, and this pattern is what makes it a chain. Each chain also tends to include other metadata that is specific to that ecosystem, and those differences will be discussed in future chapters.

Here is an example from the Bitcoin blockchain: ". If you are asking, What is a Merkle root? Hashing and signatures Let's say you have two text files that are 50 pages long. You want to know whether they are the same or different. One way you could do this would be to hash them. Hashing or a hashing function is a mathematical procedure by which any input is turned into a fixed-length output. For instance, here is the output of a hashing function called MD5 with an input of two pages of text: 9aa78cf0ce4daf1ebe.

What's powerful about hashing functions is what happens when I add a single character to the end and run the same function: cd50ba30df3e0d2d14d As you can see, the output is completely different. If you want to quickly prove that some data has not been changed in any way, a hash function will do it. For our discussion, here are the important parts of hashing functions:.

They are very fast for computers to run. The function is one way. You can get the hash easily, but you cannot realistically use the hash to restore the original. They can be used recursively. For instance, I can take the hash of the hash; for example, MD5 cd50ba30df3e0d2d14d74 becomes bfc9b09ecbeac0bdfc This recursive property to hashing is what brings us to the concept of a Merkle tree, named after the man who patented it.

A Merkle tree is a data structure that, if your were to draw it on a whiteboard, tends to resemble a tree. At each step of the tree, the root node contains a hash of the data of its children. In a blockchain, this means that there is a recursive hashing process happening. A recursive hash is when we take a hash of hashes. For instance, imagine we have the following words and their hashes.

To take the recursive or the root hash, we would add these hashes together, as follows: c2eacd7ea39bacfaab2fcb4bafdbd5daaf4b8ee0f4d55adaef90c. Then we would take the hash of that value, which would result in the following: dbe73a5eceb9c6f7cc1ec66e1. This process can happen over and over again. The final hash can then be used to check whether any of the values in the tree have been changed.

This root hash is a data efficient and a powerful way to ensure that data is consistent. Each block contains the root hash of all the transactions. Because of the one- way nature of hashing, anyone can look at this root hash and compare it to the data in the block and know whether all the data is valid and unchanged. This allows anyone to quickly verify that every transaction is correct. Each blockchain has small variations on this pattern using different functions or storing the data slightly differently , but the basic concept is the same.

Digital signatures Now that we've covered hashing, it's time to go over a related concept: digital signatures. Digital signatures use the properties of hashing to not only prove that data hasn't changed but to provide assurances of who created it. Digital signatures work off the concept of hashing but add a new concept as well: digital keys. What are digital keys? All common approaches to digital signatures use what is called Public Key Cryptography.

In Public Key Cryptography, there are two keys: one public and one private. To create a signature, the first hash is produced of the original data, and then the private key is used to encrypt that hash. That encrypted hash, along with other information, such as the encryption method used to become part of the signature, are attached to the original data. This is where the public key comes into play.

The mathematical link between the public key and the private key allows the public key to decrypt the hash, and then the hash can be used to check the data. Thus, two things can now be checked: who signed the data and that the data that was signed has not been altered.

The following is a diagrammatic representation of the same:. This form of cryptography is critical to blockchain technology. Through hashing and digital signatures, a blockchain is able to record information both on actions movement of tokens as well as prove who initiated those actions via digital signatures.

Let's create an example of how this would look. Each publishes a public key. Nobody can read this, except Nadia. Using the same algorithm, she inputs this data and her private key, and gets the following message: I love Bitcoin. Example block data In this section, we are going to examine the data structures that are used in blockchains. We will be looking primarily at Ethereum, Bitcoin, and Bitshares blockchains to see key commonalities and differences.

In this block from the Ethereum network, all three are present. The reference to the prior block is contained by the block height and parent hash values. The Hash of the transactions is the hash entry, and the metadata is everything else, which will be network specific. Despite a radically different architecture, the fundamentals remain: references to a previous block, Merkle root, and network metadata.

In Bitshares, you can also see that there is a Witness Signature. As a PoS blockchain, Bitshares has validators they are called witnesses. Here, we see the witness and signature of the computer responsible for calculating this block. Global state One of the key properties of blockchain technology is that it can act as a trusted global state. There are many applications where a trusted global state is important but difficult, such as financial technology and logistics.

For instance, a few years ago, I ordered some camera equipment online. A few days later, I came home and was surprised to find that my equipment had arrived. I was so thankful that the expensive equipment sitting outside had not been stolen. It was only the next day that I received an email from the seller alerting me that the package had been shipped. Here is a clear breakdown of the global state.

The truth was that the camera was already on a truck, but neither I nor the shipper had that information stored properly. If the camera equipment had been stolen from my porch, it would have been very hard to discover what had happened.

If the seller, the logistics company, and I were all writing and reading data from a blockchain, this would have been impossible. When the logistics company registered the shipment, the state of the object would have changed, and both the seller and I would have known as soon as the next block was finalized. Block time and block size As discussed before, each blockchain has a block time and a block size.

Each network can have very different values and ways of handling block time. In Bitcoin, for instance, the block time is 10 minutes, while with Ethereum the block time is 20 seconds. In Stellar, the block time is about 4 seconds. These block times are determined by the code that runs the network. For networks such as Bitcoin, Litecoin, and Ethereum, the block time is actually an average.

Because these are PoW networks, the block is finished once a miner solves the mining puzzle, which allows them to certify the block. In these networks, the difficulty of the puzzle is automatically adjusted so that on average the desired block time is reached. The block size is the maximum amount of information that can be stored in each block. For Bitcoin, this is 1 MB of data's worth of transactions.

For Ethereum, the limit is actually measured in GAS, a special unit of measuring both processing power since Ethereum has smart contracts as well as storage. It's important to note that blocks contain only possible information until they are finalized by the network. For instance, 1, transactions might happen, but if only make it on to the next block, then only those are real.

The remaining transactions will continue to wait to be included into a future block. Blockchain miners Blockchain miners and blockchain validators see the upcoming sections both have to do with consensus, which will be explored in depth in Chapter 7, Achieving Consensus. Generally, blockchain miners are associated with blockchains. A PoW chain functions by having the computers that are miners compete to do the work needed to certify a block in the chain.

Most other systems use a variation of PoS consensus, which we will discuss in the next Blockchain validators section. We'll cover how mining works in detail in Chap ter 18, Mining. Blockchain validators Blockchain validators are used by PoS systems. A PoS system works by requiring computers that wish to participate in the network to have stake—a large number of tokens—to assist in the blockchain.

Unlike PoW algorithms, computers cannot join the network and expect to have any say in consensus. Rather, they must buy in through token ownership. Depending on the network, the naming convention for validators might be different. Tendermint has validators, Steemit and Bitshares have witnesses, Cardano has stakeholders, and so on. A validator is a computer with a positive stake number of tokens that is allowed to participate in the network and does so.

Each chain has its own rules for how this works, and these will be covered more in-depth in Chapter 7, Achieving Consensus. Smart contracts Some blockchains are said to have smart contracts when they are able to perform actions and behavior in response to changes to the chain. Blockchain speed One ongoing concern for blockchain systems is performance.

Public blockchains are global systems, with their system resources shared by all the users in the world simultaneously. With such a large user base, resource constraints are a real concern and have already caused real problems. For instance, a popular game called CryptoKitties was launched on Ethereum and caused the network to become congested. Other applications became nearly unusable, as the load from CryptoKitties overwhelmed the network.

How to calculate blockchain throughput The quick and dirty way of calculating the throughput of a blockchain is as follows:. This is because of the relatively small block and the very long block time. Comparisons with traditional networks VISA is the premier payment-processing network worldwide. In one of the company's blogs, it was revealed that VISA can process over 40, transactions a second.

This is peak capacity, and it usually processes nowhere near that, except around times such as Christmas. Nevertheless, it should be clear that blockchains have a way to go before they can compete for processing global payments on the same scale as VISA. Summary Now you should understand the basic components of a blockchain. Blocks are groups of transactions grouped together and act as the fundamental unit of a blockchain.

Miners are computers that create new blocks on PoW blockchains. Validators, also called witnesses and other names, are computers that create blocks on PoS blockchains. Digital signatures are composed of public and private keys and use mathematics to prove the author of the data. The key ideas of hashing is to use a mathematical function that maps arbitrary data to a single, simple to deal with value.

Any change to the data will make the end value very different. It's essentially impossible to construct the original data from the hash, but it's easy to create the hash from the original data You can use these properties to prove that data has not been changed. In the next chapter, we will learn what these systems are and how blockchain counts as both. We will learn how to differentiate between the two systems and why these concepts are so important to blockchain.

Decentralization Versus Distributed Systems One of the biggest misconceptions in the blockchain space is between distributed systems and decentralized systems. In this chapter, we are going to discuss both types of systems, why they matter, their similarities, their differences, and how blockchain technology can fit into both categories.

More simply, a distributed system is one where the goal of the system is spread out across multiple sub-systems in different locations. This means that multiple computers in multiple locations must coordinate to achieve the goals of the overall system or application.

This is different than monolithic applications, where everything is bundled together. Let's take the example of a simple web application. A basic web application would run with processing, storage, and everything else running on a single web server.

The code tends to run as a monolith—everything bundled together. When a user connects to the web application, it accepts the HTTP request, uses code to process the request, accesses a database, and then returns a result. The advantage is that this is very easy to define and design.

The disadvantage is that such a system can only scale so much. To add more users, you have to add processing power. As the load increases, the system owner cannot just add additional machines because the code is not designed to run on multiple machines at once. Instead, the owner must buy more powerful and more expensive computers to keep up.

If users are coming from around the globe, there is another problem—some users who are near the server will get fast responses, whereas users farther away will experience some lag. The answer is that the entire system goes down entirely. For these reasons, businesses and applications have become more and more distributed. Distributed systems typically fall into one of several basic architectures: client—server, three-tier, n-tier or peer-to-peer.

Blockchain systems are typically peer-to-peer, so that is what we will discuss here. Resiliency can only be discussed in the context of the types of events that a system is resilient towards. A system might be resilient to a few computers getting turned off but may not be resilient to nuclear war.

Fault tolerance: The ability of the system to deal with invalid states, bad data, and other problems Failure isolation: A problem in one part of the system does not infect other parts of the system. Bad data or system failure in one place does not result in problems elsewhere Scalability: A scalable system under heavy use is able to provide additional capacity and is thus resilient to load Complexity management: A system that has ways of managing complexity helps it be resilient against human errors.

We will now discuss fault tolerance in more detail. Fault tolerance and failure isolation A system is said to be fault tolerant when it is capable of operating even if some of the pieces fail or malfunction. Typically, fault tolerance is a matter of degree: where the level of sub-component failure is either countered by other parts of the system or the degradation is gradual rather than an absolute shutdown. Faults can occur on many levels: software, hardware, or networking.

A fault tolerant piece of software needs to continue to function in the face of a partial outage along any of these layers. In a blockchain, fault tolerance on the individual hardware level is handled by the existence of multiple duplicate computers for every function—the miners in bitcoin or proof of work systems or the validators in PoS and related systems.

If a computer has a hardware fault, then either it will not validly sign transactions in consensus with the network or it will simply cease to act as a network node—the others will take up the slack. Consensus and coordination One of the most important aspects of blockchain is the concept of consensus.

We will discuss the different ways blockchains achieve consensus in Chapter 7, Achieving Consensus. For now, it is enough to understand that most blockchain networks have protocols that allow them to function as long as two thirds to slightly over one-half of the computers on the network are functioning properly, though each blockchain network has different ways of ensuring this which will be covered in future chapters.

Backups In most blockchains, each computer acting as a full participant in the network holds a complete copy of all transactions that have ever happened since the launch of the network. This means that even under catastrophic duress, as long as a fraction of the network computers remains functional, a complete backup will exist. In PoS chains, there tends to be far fewer full participants so the number of backups and distribution is far less. So far, this reduced level of redundancy has not been an issue.

Consistency As discussed in prior chapters, hashing and the Merkle root of all transactions and behaviors on the blockchain allow for an easy calculation of consistency. If consistency is broken on a blockchain, it will be noticed instantly.

Blockchains are designed to never be inconsistent. However, just because data is consistent does not mean it is accurate. These issues will be discussed in Chapter 21, Scalability and Other Challenges. Peer-to-peer systems Most computer systems in use today are client—server. A good example is your web browser and typical web applications.

You load up Google Chrome or another browser, go to a website, and your computer the client connects to the server. All communication on the system is between you and the server. Any other connections such as chatting with a friend on Facebook happen with your client connected to the server and the server connected to another client with the server acting as the go-between. Peer-to-peer systems are about cutting out the server.

In a peer-to-peer system, your computer and your friend's computer would connect directly, with no server in between them. But distributed systems are not necessarily decentralized. This is confusing to many people. If a distributed system is one spread across many computers, locations, and so on, how could it be centralized? The difference has to do with location and redundancy versus control. Centralization in this context has to do with control. A good example to showcase the difference between distributed and decentralized systems is Facebook.

Facebook is a highly distributed application. It has servers worldwide, running thousands of variations on its software for testing. Any of its data centers could experience failure and most of the site functionality would continue. Its systems are distributed with fault tolerance, extensive coordination, redundancy, and so on.

Yet, those services are still centralized because, with no input from other stakeholders, Facebook can change the rules. Millions of small businesses use and depend on Facebook for advertising. Groups that have migrated to Facebook could suddenly find their old messages, work, and ability to connect revoked—with no recourse. Facebook has become a platform others depend on but with no reciprocal agreement of dependability.

This is a terrible situation for all those groups, businesses, and organizations that depend on the Facebook platform in part or on the whole. The last decade has brought to the forefront a large number of highly distributed yet highly centralized platform companies —Facebook, Alphabet, AirBnB, Uber, and others—that provide a marketplace between peers but are also almost completely unbeholden to their users.

Because of this situation, there is a growing desire for decentralized applications and services. In a decentralized system, there is no central overwhelming stakeholder with the ability to make and enforce rules without the permission of other network users. Principles of decentralized systems Like distributed systems, decentralization is a sliding scale more than an absolute state of being.

To judge how decentralized a system is, there are a number of factors to consider. We're going to look at factors that have particular relevance to blockchain and decentralized applications and organizations. They are the following:. A system that is closed is automatically centralized to the pre-existing actors. The early internet was seen as revolutionary in part because of its open access nature and the ability for anyone with a computer, time, and access to get online and begin trading information.

Similarly, blockchain technologies have so far been open for innovation and access. Non-hierarchical A hierarchical system is the one commonly found within companies and organizations. People at the top of a hierarchy have overwhelming power to direct resources and events. A hierarchy comes in different extremes. At one extreme, you could have a system wherein a single arbiter holds absolute power. At the other extreme, you could have a system where each member of the system holds identical direct power and therefore control exists through influence, reputation, or some other form of organizational currency.

In blockchain, a few forms of non-hierarchical patterns have emerged. The first is in proof-of-work mining systems. All miners are fundamentally equal participants in the blockchain, but their influence is proportional to the computing resources they make available to the network. In this case, decentralization is achieved both through mass adoption as well as competition with other chains. If one chain becomes too centralized, nothing stops users from migrating to a different one.

How decentralized these systems will remain over time is an open question. Ecosystem diversity Open access naturally leads to another trait of decentralized systems: diversity. A diverse system stands in opposition to monoculture.

In technology, a monoculture is the overwhelming prevalence of a single system, such as the dominance of Windows, which persisted for a long time in corporate America. Transparency One of the ways power can be centralized in a system is through information dominance, where one set of actors in a system has access to more or greater information than other actors.

In most current blockchain technology, each participant on the chain gets the same amount of information. There are some exceptions. Hyperledger Fabric, for instance, has the capacity to have information hiding from participants. The ability to have perfectly enforced transparency is one of the drivers of interest in blockchain systems.

By creating transparent and unforgettable records, blockchain has an obvious utility for logistics and legal record keeping. With records on a blockchain, it is possible to know for certain that data was not altered. A transparent blockchain also ensures a level of fairness —participants can all be sure that at a minimum there is a shared level of truth available to all which will not change.

Downsides Decentralized systems are not without their downsides. Here are a few key issues with decentralized systems that have specific relevance to blockchain:. Blockchains are decentralized systems of record keeping. One way to think about a basic blockchain such as bitcoin is that it is an append-only database. Bitcoin can handle approximately seven transactions a second. By comparison, Visa and MasterCard are distributed but not decentralized transaction-handling systems that can handle more than 40, transactions a second.

Blockchain systems continue to increase in speed but typically at with the trade-off of some amount of centralization or restrictions on access. Censorship resistance Decentralized systems tend to be much harder to censor because of a lack of a central authority to do the censoring. For free-speech and free-information purists, this is not seen as a downside in the slightest. However, some information child pornography, hate speech, bomb-making instructions is seen as dangerous or immoral for public dissemination and therefore should be censored.

As a technology, anything actually written into the blockchain is immutable once the block holding that information is finished. For instance, Steemit is a blockchain-based social blogging platform where each post is saved to the chain. Once each block is finalized, the data cannot be removed.

Clients of the system could choose not to show information, but the information would still be there for those who wanted to look. The desire for censorship extends to self-censorship. Content written to the change is immutable—even for its author. For instance, financial transactions done via bitcoin can never be hidden from authorities. While bitcoin is anonymous, once a person is attached to a bitcoin wallet, it is possible to easily track every transaction ever done since the beginning of the blockchain.

Because of this, a blockchain-based national currency would allow perfect taxation—due to perfect financial surveillance of the chain. Censorship resistance is thus a double-edged sword. Chaos and non-determinism Decentralized systems tend to be much more chaotic than centralized ones by their nature. In a decentralized system, each actor works according to their own desires and not the demands of an overarching authority.

Because of this, decentralized systems are difficult to predict. Summary In this chapter, we have discussed the difference between distributed systems and decentralized systems and gone over some of the key features. You should now understand how each decentralized system is also a distributed system and some of the key aspects of each concept. In the next chapter, we will start looking at how these things work in practice. Cryptography and Mechanics Behind Blockchain The use of blockchain hinges on cryptography.

Numeric cryptography can be regarded as a recent invention, with the ciphers of the past relying on exchanging words for words and letters for letters. As we'll see, modern cryptography is a very powerful tool for securing communications, and, importantly for our topic, determining the provenance of digital signatures and the authenticity of digital assets.

Confidentiality: Ensures that information is shared with the appropriate parties and that sensitive information for example, medical information, some financial data is shared exclusively with the consent of appropriate parties. Integrity: Ensures that only authorized parties can change data and depending on the application that the changes made do not threaten the accuracy or authenticity of the data. This principle is arguably the most relevant to blockchains in general, and especially the public blockchains.

Availability: Ensures authorized users for example, holders of tokens have the use of data or resources when they need or want them. The distributed and decentralized nature of blockchain helps with this greatly. The relevance to blockchain and cryptocurrency is immediately evident: if, for instance, a blockchain did not provide integrity, there would be no certainty as to whether a user had the funds or tokens they were attempting to spend.

For the typical application of blockchain, in which the chain may hold the chain of title to real estate or securities, data integrity is very important indeed. In this chapter, we will discuss the relevance of these principles to blockchain and how things such as integrity are assured by cryptography. Historical perspective — classical cryptography Cryptography is the term for any method or technique used to secure information or communication, and specifically for the study of methods and protocols for secure communication.

In the past, cryptography was used in reference to encryption, a term that refers to techniques used to encode information. At its most basic, encryption might take the form of a substitution cipher, in which the letters or words in a message are substituted for others, based on a code shared in advance between the parties.

The classic example is that of the Caesar Cipher, in which individual letters are indexed to their place in the alphabet and shifted forward a given number of characters. For example, the letter A might become the letter N, with a key of This very simple example introduces two important concepts.

The first is an algorithm, which is a formal description of a specific computation with predictable, deterministic results. Take each character in the message and shift it forward by n positions in the alphabet. The second is a key: the n in that algorithm is Types of cryptography Cryptography is principally divided into symmetric and asymmetric encryption.

Symmetric encryption refers to encryption in which the key is either pre-shared or negotiated. These protocols exist to prevent the interception and manipulation of data transmitted over wireless connections or, phrased differently, to provide confidentiality and integrity to wireless users.

Routers now often come with the wireless password printed on them, and this is a very literal example of a pre-shared key. Asymmetric public-key cryptography Asymmetric cryptography also called public-key cryptography employs two keys: a public key, which can be shared widely, and a private key, which remains secret. The public key is used to encrypt data for transmission to the holder of the private key.

The private key is then used for decryption. The development of public-key cryptography enabled things such as e- commerce internet banking to grow and supplement very large segments of the economy. It allowed email to have some level of confidentiality, and it made financial statements available via web portals.

It also made electronic transmissions of tax returns possible, and it made it possible for us to share our most intimate secrets in confidence with, maybe, perfect strangers—you might say that it brought the whole world closer together. As the public key does not need to be held in confidence, it allows for things such as certificate authorities and PGP key servers—publishes the key used for encryption, and only the holder of the private key will be able to decrypt data encrypted with that published key.

A user could even publish the encrypted text, and that approach would enjoy some anonymity—putting the encrypted text in a newsgroup, an email mailing list, or a group on social media would cause it to be received by numerous people, with any eavesdropper unable to determine the intended recipient.

This approach would also be interesting in the blockchain world—thousands or millions of nodes mirroring a cipher text without a known recipient, perhaps forever, irrevocably, and with absolute deniability on the part of the recipient. Public-key cryptography is more computationally expensive than symmetric cryptography, partly due to the enormous key sizes in use. The NSA currently requires a key size of 3, bits or greater in commercial applications for key establishment, which is the principal use of public-key cryptography.

For the most part, although it is possible to use the public-key algorithm alone, the most common use of public-key cryptography is to negotiate a symmetric key for the remainder of the session. The symmetric key in most implementations is not transmitted, and, as a consequence, if an attacker were to seize one or both of the private keys, they would be unable to access the actual communications.

This property is known as forward secrecy. Some protocols, such as SSH, which is used to remotely access computers, are very aggressive. Over the course of a session, SSH will change the key at regular intervals.

Most cryptography in use today is not unbreakable, given extremely large or infinite computing resources. However, an algorithm suited to the task of protecting data where confidentiality is required is said to be computationally improbable—that is, computing resources to crack the encryption do not exist, and are not expected to exist in the near future. Signatures It is notable that, although when encrypting data to send it to a given recipient, the private key is used for decryption, it is generally possible to do the reverse.

For cryptographic signing, private keys are used to generate a signature that can be decrypted verified with the public key published for a given user. This inverted use of public-key cryptography allows for users to publish a message in the clear with a high degree of certainty that the signer is the one who wrote it. Typically, where Blockchains are concerned, when a user wishes to transfer tokens, they sign the transaction with the private key of the wallet.

The user then broadcasts that transaction. It is now also fairly common to have multisignature wallets, and, in that instance, a transaction is most often signed by multiple users and then broadcast, either in the web interface of a hosted wallet service, or in a local client.

This is a fairly common use case with software projects with distributed teams. Hashing Distinct from the concept of encryption and present in many mechanisms used in cryptography, such as cryptographic signatures and authentication is hashing, which refers to a deterministic algorithm used to map data to a fixed-size string. Aside from determinism, cryptographic hashing algorithms must exhibit several other characteristics, which will be covered in this section. As we'll see in the following section, a hash function must be difficult to reverse.

Most readers who got through high school algebra will remember being tormented with factoring. Multiplication is an operation that is easy to complete, but difficult to reverse—it takes substantially more effort to find the common factors of a large number as opposed to creating that number as a product of multiplication.

This simple example actually enjoys practical application. Suitably large numbers that are the product of the multiplication of two prime numbers—called semiprimes or less often biprimes—are employed in RSA, a widely used public-key cryptography algorithm. Building on operations such as this — easy to do one way and very hard to do in the other —is what makes cryptography so robust.

The avalanche effect A desirable feature of robust hashing algorithms is known as the avalanche effect. A small change in the input should result in a dramatic change in the output. Changing a word to an entirely different word has the same result as changing a single letter: each hash is entirely different. This is a very desirable property in the case of, say, password hashing. A malicious hacker cannot get it close enough and then try permutations of that similar password.

We will see in the following sections, however, that hashes are not perfect. Collisions An ideal hash function is free of collisions. Collisions are instances in which two inputs result in the same output. Collisions weaken a hashing algorithm, as it is possible to get the expected result with the wrong input. As hashing algorithms are used in the digital signatures of root certificates, password storage, and blockchain signing, a hash function having many collisions could allow a malicious hacker to retrieve passwords from password hashes that could be used to access other accounts.

A weak hashing algorithm, rife with collisions, could aid in a man-in-the-middle attack, allowing an attacker to spoof a Secure Sockets Layer SSL certificate perfectly. MD5, the algorithm used in the above example, is regarded as inadequate for cryptographic hashing.

Hashing a block In the PoW systems, new entries to a blockchain require hashes to be computed. In Bitcoin, miners must compute two SHA hashes on the current transactions in the block—and included therein is the hash of the previous block.

This is pretty straightforward for a hashing algorithm. It is deterministic. There is only one possible output and it is impossible or computationally improbable to achieve that output with a different input. These properties ensure that miners can process a block and that each miner can return the same result.

It is through hashing that Blockchains attain two properties that are crucial to their adoption and current popularity: decentralization and immutability. Linking the current block to the previous block and the subsequent block is in part what makes the blockchain an ever-growing linked list of transactions providing it with the property of immutability , and the deterministic nature of the hash algorithm makes it possible for each node to get the same result without issue providing it with decentralization.

Plenty of discussion has been dedicated to whether PoS will replace PoW and prevent us from running thousands of computers doing megawatts' worth of tedious hashing with enormous carbon footprints. PoW systems seem to persist in spite of the power consumption and environmental impact of reasonably difficult hashing operations. Arguably, the reason for this is the very simple economics: miners have an incentive to validate transactions by computing hashes because they receive a share of new tokens minted into the system.

More complex tokenomics schemes for proof of stake or distributed proof of stake often fail the smell test. Users contribute photos to a stock photo website, and in return they receive tokens. The token is also used to buy stock photos from the website, and this token is traded on exchanges. The barriers to entry here are significant: a buyer could use any ordinary stock photo site and use their credit card or bank account. In this model, the buyer needs to sign up for an exchange and send cryptocurrency in exchange for the token.

To be truly decentralized, a big piece is missing from this economic model— that is, this system of incentives. What provides an incentive for witnesses or validators to run their machines and validate transactions? Proof of stake systems are often more elegant with regard to processing power at the expense of less elegant economic models. Proof of stake or another mechanism may well still take over the world, but, one way or the other, you can safely expect the crypto world to do plenty of hashing.

Summary The world of blockchain and cryptocurrency exists thanks largely to the innovations of the last century in cryptography. We've covered how cryptography works conceptually and how cryptographic operations, specifically hashing, form a large part of what happens behind the scenes in a blockchain. In the next chapter, we'll build on this foundation and introduce Bitcoin, the first and most notable blockchain application. Bitcoin In earlier chapters, we discussed blockchain, its components, and its structure in detail.

We also discussed cryptography, the mechanics behind blockchain, and how blockchain is revolutionizing the network world. In this chapter, we will be discussing Bitcoin's origins. We will discuss the introduction of Bitcoin, its history, and how it became one of the biggest revolutions of financial history in such a short space of time. We will also dive deep into other aspects of Bitcoin, such as its encoding system, transaction process, network nodes, and we'll briefly cover the mining of Bitcoins.

Bitcoin was the world's first decentralized cryptocurrency; its introduction heralded a revolution, and, in just about a decade, it has proved its strengths, with huge community backing and widespread adoption. From , certain global businesses have started to accept Bitcoins, with the exception of fiat currencies. A lot of currency exchanges were founded to let people exchange Bitcoin with fiat currency or with other cryptocurrencies. In September , the Bitcoin Foundation was launched to accelerate the global growth of Bitcoin through standardization, protection, and promotion of the open source protocol.

A lot of payment gateways such as BitPay came up to facilitate merchants in accepting Bitcoin as a payment method. How Phage Therapy acts? When the phage is supplied, it establishes a highly specific recognition against certain receptors on the surface of the bacterium, with which it interacts and adheres to its surface. After this, the phage enters its genetic material inside the bacteria. In the lytic cycle, the phage takes advantage of the bacteria own resources to produce the synthesis of mRNA necessary to generate copies of the capsid, viral nucleic acids and viral enzymes that will help to lyse the bacteria and kill it.

So that, from a single phage, hundreds of them are generated inside the bacteria , which leave the host once their components are assembled, destroying it. These hundreds of newly synthesized phages constitute a new antibacterial dose, which presents a great advantage as it is possible to treat the patient with a single dose of phage. In addition, phages can reach sites that antibiotics cannot , and can be used as a preventive treatment. Another advantage of phages is that their production is much faster than antibiotics , since it is much easier to select new phages than to find a new antibiotic.

Despite the advantages, there are also problems in Phage Therapy , which delay their commercial use. Among them we find the following, many of which we will see that have been found a solution :. Some bacteria develop phage resistance through various systems. The main one consists in the mutation of the receptors that phages use as a recognition element.

To solve this problem, it is counterattacked with a cocktail of phages with different mechanisms of infection, which ensure that, although the bacterium generates resistance to infection, it does not do so against all phages. The next problem is at the regulatory level. There is also difficulty registering them as intellectual property.

Another difficulty lies in the release of endotoxins by certain bacteria when they are lysed which can harm the patient. To solve it, Anakiraman Ramachandran, president of the Canadian biotechnology company GangaGen, proposes to use genetically modified phages. The modification consists on the elimination of the gene responsible for producing endolysins , hydrolytic enzymes responsible for the destruction of the bacterial membrane that allows the release of the new phages.

The hundreds of new phages are assembled inside the bacteria that ends up dying, without breaking, until finally it is phagocytosed. Finally, two other cons towards Phage Therapy are the difficulties that exist in the delivery of the phages on demand and the formation of solid pharmaceuticals that produce them , as well as the negative perception associated with the use of viruses as a treatment. Is there any production of phages at international level? Yes, there is. Right now, things are different.

In fact, regions as Russia , Georgia or Polonia have been many years using bacteriophages against bacterial infection , successfully. In Georgia we found Tbilisi Centre. Thanks to these companies, today there are commercialized products that use bacteriophages. However, all of them are intended for sanitary control of the food, environmental control and vet , but none for treatment against bacterial infections on humans, although it has been resorted to as an experimental therapy in some countries, such as Poland.

Interestingly, among the treatments in development that we can find against bacterial infections in humans, most of them are not usually constituted only with bacteriophages, but usually come combined with other components, among them, antibiotics. Unity makes strength. The idea on which this drug is based consists of three main interactions:. Biodegradable polymer is a biocompatible matter that metabolizes in organism into amino acids, reveals innate bactericidal activity, accelerates the regeneration of injured tissues and epithelization, suppresses pro-inflammatory and stimulates anti-inflammatory factors.

We can find how he acts here. Undoubtedly, Phage Therapy has multiple applications and has many advantages over the use of antibiotics. The cons that we can find are not deterministic and can be overcome with time and the development of new solutions. There are opportunities for those who are willing to make solid pharmaceutical forms of phages, with different marketing designs.

In addition, this field of research is still active and is developing other alternatives such as the use of enzybiotics , the lytic enzymes that produce phages such as endolysins to lyse bacteria. Phage Therapy is not intended to completely replace the use of antibiotics , they can even be used in the same treatment. And what about you, do you think phagetherapy is a good alternative to antibiotics?

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An attorney for Thomas Caldwell, a Virginia resident accused of participating in the Jan. Caldwell's lawyer, Thomas Plofchan, wrote about his work history in a motion filed on Monday, which stated that because Caldwell has "been vetted and found numerous times as a person worthy of the trust and confidence of the United States government," he should be released from jail as he waits for his trial to start.

Authorities have said Caldwell, 66, is a leader of the right-wing Oath Keepers militia group, and helped plan the attack on the Capitol. On Jan. He denies being involved with the Oath Keepers, and Plofchan said Caldwell is a " percent disabled veteran," and because of his "physical limitation," could not have forced his way into a building. The charging documents show that during the attack, Caldwell received messages about lawmakers being "in the tunnels" under the Capitol.

After the riot, he also allegedly shared video of the incident on Facebook, saying it was time to "storm the capitol in Ohio. But his impeachment lawyer Bruce Castor did, several times. Coons: Trump's impeachment defense is 'the Four Seasons Landscaping of the legal profession'. YouTube users who claim to be in the class reported that they had done "all sorts of things" to get his attention, but he simply ignored them. Follow latest developments at the Trump impeachment trial.

Stephen J. Maranian has been suspended until the completion of an investigation. The lawsuit, filed in state district court, also claims Chauvin received special treatment from a white lieutenant. The Wykeham chair of physics, which was established in , will now be known as the Tencent-Wykeham chair in honour of the Chinese computing giant. But maybe not all scandals are created equal.

I mean, maybe that's when he was finally going to release his health care plan. He could have used that time to walk down half a ramp! And do you have any idea how much Fox News Trump could have watched in that 10 minutes?

Like, 10 minutes! So those are they many Joe Biden scandals by the muckraking journalists of conservative media in just his first three weeks in office. One of those conservative would-be Biden muckrakers lost his platform over the weekend, and The Daily Show also took a moment to say farewell to Fox Business host Lou Dobbs, "the most North Korean broadcaster America has ever seen.

More stories from theweek. Ex-president's niece reportedly considering changing her name to distance herself from her uncle. Tax filing season will start a bit later this year and look a bit different too. If you worked from home, received a relief payment, took on some gig work or filed unemployment benefits — or someone filed a fake claim in your name — there are things you need to be aware of.

Likewise if you normally receive certain tax credits. A woman who killed a Vietnamese nail salon manager in Las Vegas in has been sentenced to a prison term of 10 to 25 years. With the plea, she effectively avoided trials of felony murder, burglary, robbery and stolen vehicle charges, which she initially faced.

The old Aunt Jemima brand and logo was based on a racist "mammy" stereotype. Dominion had to hire private investigators to chase Powell "across state lines," incurring "unnecessary expenses for extraordinary measures to effect service," the company said. A lawyer for Powell, Howard Kleinhendler, disputed Dominion's claim, telling Politico his client "regularly travels as part of her work," and in recent months "has had to take extra precautions concerning her security, which may have made serving her more difficult.

Powell had no reason to evade service as she looks forward to defending herself in court," he added. Powell requested more time to respond to Dominion's lawsuit in a court filing Monday. Dominion said it has no problem giving Powell until March 22 to respond but wanted to note its troubles reaching her for "the record. She served for a while on Trump's legal team before he temporarily cut ties with her after a particularly off-the-rails press conference.

Powell was kicked off Twitter for spreading QAnon conspiracy theories after the Jan. Coons: Trump's impeachment defense is 'the Four Seasons Landscaping of the legal profession'year-old accused Nazi camp guard charged with 3, counts of accessory to murder. A leading Covid scientist has floated the idea that people may simply get the "sniffles" when they catch the virus in the future.

It came as Tory MPs called for ministers to make a promise of no more lockdowns when they reopen the country. Prof Andrew Pollard, the head of the Oxford Vaccine Group, said the "jury is out" about whether new Covid vaccines will be needed to combat mutant strains but expressed hope those already developed can stop severe cases. With scientists increasingly talking about an annual Covid jab and warning that the virus will not disappear entirely, MPs are considering how to balance the long-term needs of protecting people and rebuilding the economy.

Conservative backbenchers eager to see restrictions loosened as soon as is realistically possible have told The Telegraph they want Government ministers to make assurances that nationwide lockdowns will not be repeated. The idea is that to kickstart the economic recovery — getting businesses to reopen and triggering a spending boom — company bosses and workers have to be reassured that the lifting of the rules will not be reversed weeks later.

Is there any production of phages at international level? Yes, there is. Right now, things are different. In fact, regions as Russia , Georgia or Polonia have been many years using bacteriophages against bacterial infection , successfully. In Georgia we found Tbilisi Centre. Thanks to these companies, today there are commercialized products that use bacteriophages.

However, all of them are intended for sanitary control of the food, environmental control and vet , but none for treatment against bacterial infections on humans, although it has been resorted to as an experimental therapy in some countries, such as Poland.

Interestingly, among the treatments in development that we can find against bacterial infections in humans, most of them are not usually constituted only with bacteriophages, but usually come combined with other components, among them, antibiotics. Unity makes strength. The idea on which this drug is based consists of three main interactions:.

Biodegradable polymer is a biocompatible matter that metabolizes in organism into amino acids, reveals innate bactericidal activity, accelerates the regeneration of injured tissues and epithelization, suppresses pro-inflammatory and stimulates anti-inflammatory factors.

We can find how he acts here. Undoubtedly, Phage Therapy has multiple applications and has many advantages over the use of antibiotics. The cons that we can find are not deterministic and can be overcome with time and the development of new solutions. There are opportunities for those who are willing to make solid pharmaceutical forms of phages, with different marketing designs.

In addition, this field of research is still active and is developing other alternatives such as the use of enzybiotics , the lytic enzymes that produce phages such as endolysins to lyse bacteria. Phage Therapy is not intended to completely replace the use of antibiotics , they can even be used in the same treatment. And what about you, do you think phagetherapy is a good alternative to antibiotics?

Segundo A. Save my name, email, and website in this browser for the next time I comment. This site uses Akismet to reduce spam. Learn how your comment data is processed. Sign in. Log into your account. Forgot your password? Password recovery. Recover your password. Wednesday, February 10, Get help.

Inspira Biotech. Home Biomedical Phage therapies vs. Biomedical Biomedical news. Europe leads the way in the development and commercialization of biosimilar medicines: new licenses and huge savings on the horizon. New tests of early cancer detection will allow the implementation of better treatments through personalized medicine. Predictive medicine uses the genetic counselling to measure the likelihood of illnesses that can be suffer and how to prevent them.

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