My talk about how BitCoin and BlockChain technologies work at Application of New Generation Technologies Session, Dec 2018, Urmia, Iran
The complete video can be found here:
https://www.youtube.com/watch?v=7y_pxPfmkPo
The details can be found on this link:
https://mstajbakhsh.ir/a-brief-introduction-to-bitcoin-and-blockchain/
1. A Brief Introduction to
Bitcoin
Mir Saman Tajbakhsh
IT PhD. Candidate, Urmia University
ms.tajbakhsh@urmia.ac.ir
https://mstajbakhsh.ir
2. whoami
Mir Saman Tajbakhsh
IT PhD. Candidate, Urmia University
Social Network Analysis and Data Mining (Academical)
Computer Security (Practical)
Bitcoin, Back in 2014, Op Silk Road!
P0SCon2018 Kenan Abdullahoglu
https://mstajbakhsh.ir
ms.tajbakhsh@urmia.ac.ir
4. The Problem
The problems are Before Bitcoin (BB)
The Situation:
Always a TTP (Trusted Third Party) is needed for transactions.
All the payments are reversible (TTP Knows)
TTP adds cost to the transactions in order to solve conflictions
Small payments are not suitable for those amount of added costs
Solution
P2P money and P2P payments
Unfeasible calculations are needed to reverse the payment
5. Bitcoin Benefits
Uses Internet
No Bank branches or any other things needed.
Low transfer cost
Accessible everywhere
Anonymous and Private accounts
Law?
The only known things:
Payment ID (not wallet ID)
Payments
Accounts are created just by email address which can be temporary or fake.
6. Gain Bitcoin
Direct buy from money exchange offices
Mine
Miners verify the transactions
After validation, the whole DB is being updated.
By Force (https://mstajbakhsh.ir/miner-found/)
Sell goods or products
7. Asymmetric Cryptography
Private/Public Key
Invention after WWII
Anyone ones public key (e)
No one knows private key (d)
e(M) = C d(C) = M
d(M) = C e(C) = M
8. Hashing
One way function
Any change of input bit, may result in hash.
MD5, SHA256, SHA512
Birthday Paradox!
9. Transaction
Double Spending Problem
Big brother should know everything
WHAT?!
NOT ONLY Big Brother, BUT ALSO
Everyone should know everything.
10. Miners
Start to compute a nounce
Adds Nounce to the transaction (block) hash
Decide to add how many transactions should be included in the block
Usually < 1 MB
Rewarded after solving 210000 blocks (find nounces)
12. Blockchain
A distributed way of storing time based electronic data
Prevents change in the time
Prevents changes in the data
Blockchain is chains of blocks.
What is a block?
13. Block
Block is made up of three main components:
Data
From
To
Amount
Block Hash
Previous Block Hash
14. Proof of Work
Find the nonce that add certain amount of 0s to the beginning of the block
hash
A powerful miner (attacker) may change the entire chain
There is time limit of adding (changing) a new block
10 mins in Bitcoin
15. Network
1) New transactions are broadcast to all nodes.
2) Each node collects new transactions into a block.
3) Each node works on finding a difficult proof-of-work for its block.
4) When a node finds a proof-of-work, it broadcasts the block to all nodes.
5) Nodes accept the block only if all transactions in it are valid and not already
spent.
6) Nodes express their acceptance of the block by working on creating the next
block in the chain, using the hash of the accepted block as the previous hash.
16. Challenges
Can it be filtered?
It is P2P
Is it feasible for other usages?
Messages?
Take money for each transaction!