Blockchain Pinyi Fan
Precursor Technology
• First conceptualized in 2009 by an unknown web user who created the blockchain alongside the bitcoin cryptocurrency • This user created a bitcoin white paper which explained the technology behind the digital currency – blockchain. • Later cryptocurrencies such as Ethereum, Litecoin, etc employ the same technology The history of Blockchain This Photo by Unknown Author is licensed under CC BY
Written in 2009 by an online user with the an alias of Satoshi Nakamoto, the paper explains the inner workings and philosophy The Bitcoin behind bitcoin and the blockchain Emphasizing a need for privacy, the intended role of bitcoin was to White Paper create a digital currency which eliminated the middle man The blockchain is decentralized through its P2P architecture
In simple terms, it’s a data structure(“block”) that stores transaction data and cryptographic block hash addresses that link them together(“chain”) What is the A blockchain is a P2P network consisting some number of nodes blockchain? which work together to approve a set of transactions This data in turn forms a public ledger which essentially acts as a record of all historical transactions
Blockchain Visualized This Photo by Unknown Author is licensed under CC BY-SA
So how does one add to the blockchain? A miner utilizes their computer’s computational power to calculate the hash of the previous block to verify the validity of all Proof of Work of the block’s transactions In return, the miner is rewarded with some token in order to incentivize them to continue mining
Released in 2015, the Ethereum blockchain allows for logic to be employed within transactions, called contracts on Ethereum Ethereum This allowed for code to be included in these contracts Many decentralized apps began to appear
Cryptokitties
Decentralized voting systems Other Decentralized cloud storage Applications Decentralized banks/exchanges Decentralized protocols
“The Ultimate To create a privacy-conscious decentralized network with no dependence on centralized servers Goal”
Blockchain technology allows privacy to be controlled by the user Allows for transparency and reliability on a network The Good Decentralizes established technological institutions such as Google and Facebook, which have had numerous privacy issue in recent years
The anonymity of blockchain technology enabled its use as a currency on the Dark Web Many have held concerns for the energy consumption of crypto mining The Bad As a result of mining pools, some groups have more control than individuals on a blockchain network
When an individual or group takes control of a decentralized The 51 percent network by taking control of more then 50% of network nodes attack This can prevent new blocks from generated and transactions from being confirmed
The DAO was an attempt in 2016 to create a decentralized autonomous organization on the Ethereum network An initial fundraising effort saw over $150 million raised leading up The DAO to the attack Attack A decentralized autonomous organization is a self-functioning organization governed by a set of rules In June 2016, a hacker attacked the DAO and siphoned almost 3.6 million ether ($50 million) into a child DAO
The attacker supposedly sent a message defending his attack shortly after the incident A hard fork resulted which returned the DAO’s funds to its original The Result users A sizable amount of users disagreed, resulting in the legacy protocol continuing as Ethereum Classic
While the technology places privacy as its utmost advantage, it is also a disadvantage as many criminals hide their activities in these transactions The issue of regulation is recurrent in discussions about Conclusions blockchain: if no rules are created to govern the protocol, then dubious practices will appear The energy consumption of mining is also a concern, as its total consumption outnumbers whole countries
https://hackernoon.com/beyond-crypto-blockchain-ethics- eabd8df6faf5 https://coincentral.com/blockchain-ethics/ Sources https://www.coindesk.com/understanding-dao-hack-journalists https://blockgeeks.com/guides/what-is-blockchain-technology/
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