DEMOCRATIC CONSENSUS: A COMPARATIVE INTRODUCTION TO THE GRAPHENE - PowerPoint PPT Presentation

DEMOCRATIC CONSENSUS: A COMPARATIVE INTRODUCTION TO THE GRAPHENE BLOCKCHAIN RYAN R. FOX RYAN@RYANRFOX.COM https://linkedin.com/in/ryanrfox

RYAN R. FOX RYAN@RYANRFOX.COM

A COMPARATIVE IN INTRODUCTION TO GRAPHENE USING BITCOIN AS THE REFERENCE Will compare: What Graphene Offers: • Genesis State • Democratic Consensus (Stake Voting) • Participants • High Performance FinTech Platform • P2P network • Hierarchical Named Account Authorities • Consensus algorithm • Decentralized Exchange • Objects • Smart Coins • Security • User Issued Assets • Performance • Pegged Assets • Price Feeds • Referral System • Worker Proposals

HISTORY OF GRAPHENE • Concept and original design: Daniel Larimer (2010) • Formed company: Invictus Innovations, Inc. (2013) • Distributed Autonomous Corporation DAC (2013) • Mined identity: Keyhotee (2013) • Momentum PoW algorithm: ProtoShares (2013) • Predecessor codebase: BitShares 0.9 (2014)

A BRIEF OVERVIEW OF GRAPHENE • Toolkit for blockchain development • Developed by Cryptonomex, Inc. • Offered under MIT License • Download: https://github.com/cryptonomex/graphene/ • Derived works: • BitShares 2.0 decentralized exchange (2015) • Steem blogchain (2016) • PeerPlays decentralized gaming (2016) DISCLAIMER: RYAN R. FOX DOES NOT REPRESENT CRYPTONOMEX, INC. INFORMATION PRESENTED IS HIS OPINION

GRAPHENE KEY DESIGN INITIATIVES LEARN FROM BITCOIN, RIPPLE, LMAX EXCHANGE, ETHEREUM, ET AL. • Make PoS secure • Focus on speed and scalability • Make security approachable • Build a financial services platform

GENESIS STATE NOTHING | EVERYTHING INCLUDING THE KITCHEN SINK • Puzzle • Initial stakeholders • Rewards • Consensus parameters • Maximum supply • Reserve Pool

BLOCKCHAIN PARAMETERS FIXED | DYNAMIC • Rigid coded rules • Tune running code • Hard fork • Proposal and Vote • Elected Committee

P2P COMMUNICATION GOSSIP | PUSH • Conversation • Rapid propagation • Query peer inventory • Receive message • Request deltas • Validate • Validate • Forward

CONSENSUS ALGORITHM POW MINER | DPOS WITNESS Election Round Production Validation

BLOCK REWARD ISSUE NEW BITCOIN | TAP RESERVE POOL • Blocks Probabilistic • Blocks Prescriptive • Deterministic • Predictable • Inflation Predictable • Inflation Fx ( Recycling Rate )

VALUE REPRESENTATION ADDRESS | NAMES ACCOUNTS & BALANCES Bitcoin: Graphene: • Identity and value hashed • Identity is Named Account • Name ref. Account objectID into a ScriptSig • Distinct, secured by crypto • Distinct, deterministic • Difficult to read, compute • Easy to read, compare • Balance sum UTXO • Balance attribute of Account

STRUCTURE: OBJECTS HASH | OBJECT Bitcoin: Graphene: • Calculated hash of script • Deterministic assigned Object • 2 ScriptSig formats • Space . Type . Instance • P2PK • Space: Defines where used • P2SH • Type: Classification of object • Instance: Unique Space.Type • Examples • Examples • • 1.2.x Users P2PK= 12C5rBJ7Ev3YGBCbJPY6C8nkGhkUTNqfW9 • P2SH= 342ftSRCvFHfCeFFBuz4xwbeqnDw6BGUey • 1.3.x Assets • 1.11.x Operations

STRUCTURE: OBJECT STORAGE HASH | OBJECT Bitcoin: Graphene: • Hashes stored in database • objectID stored in database • 2 ScriptSig formats • (Space.Type.Instance)=8-bytes • P2PK = 20-bytes • (uInt-8.uInt-8.uInt-48)=64-bits • P2SH = 32-bytes • Full hash transmitted on wire • Only instantID sent on wire • 20-bytes or 32-bytes • 6-bytes

TRANSACTION OPERATIONS GRAPHENE TRANSACTION Signed Transaction Transfer Operation Op Fee Amount Extentions From (Account ID) To (Account ID) Operation ID Asset ID Asset ID Amount Amount Memo

STRUCTURE: ACCOUNT & AUTHORITY Alice 1.2.12 Graphene: Balances • Account 1.3.0 CORE 100.00 • Authority Type Authorities • Threshold Threshold 100% Owner • Authorities 1.2.12 GHPDk … Alice Weight 100% • Key Threshold 50% Active • Weight 1.2.12 GHPLzx … Bob Weight 25% • Hierarchy within Accounts 1.2.12 GHPYnJ … Carol • Owner Weight 25% 1.2.12 GHPc8n… Doug • Active Weight 25% Other Account Attributes

MULTI-SIGNATURE TRANSACTION M:N | HIERARCHICAL THRESHOLD Bitcoin: Graphene: • Assemble multisig address • Assign Authorities • M validator addresses • Assign Weight • N required signatures • Set Threshold • Pay: to new address • Pay: to existing named account • Spend: N signatures on Trx • Spend: Threshold of Authority • Must bring keys together • Propose Trx on chain • Must present complete Trx • Add Signature Operation • If Threshold, Trx valid • Compromise one, rekey all • Individual can update their keys • Authority tied to Identity

MULTI-SIGNATURE TRANSACTION REAL WORLD EXAMPLE Corp 1.2.37 50% Active GPHb.. CEO 40% GPHc.. CFO 30% GPHd.. Accounting 20% GPHf.. Bookkeeper 10% CFO Account 1.2.12 1.2.12 100% 80% Active Active GPHc.. GPHd.. CFO Accounting 90% 60% GPHd.. GPHf.. CFO2FA Acct2FA 20% 30%

LIGHT WALLET DESIGN • Separate wallet Authorization from block Validation • Active Key in wallet • Connect via WebSocket to trusted node(s) • Send signed transaction

A COMPARATIVE IN INTRODUCTION TO GRAPHENE USING BITCOIN AS THE REFERENCE Compared: Future Discussion Topics: • Genesis State • Decentralized Exchange • Participants • Smart Coins • P2P network • User Issued Assets • Consensus algorithm • Pegged Assets • Objects • Price Feeds • Security • Referral System • Performance • Worker Proposals

DEMOCRATIC CONSENSUS: A COMPARATIVE INTRODUCTION TO THE GRAPHENE BLOCKCHAIN RYAN R. FOX RYAN@RYANRFOX.COM