Blockchain Principles TCU - Neeley School of Business
What is Blockchain? “A blockchain is a tamper-evident, shared digital ledger that records transactions in a public or private peer to peer network. Distributed to all member nodes in the network, the ledger permanently records, in a sequential chain of cryptographic hash-linked blocks, the history of asset exchanges that take place between the peers in the network .” (Brakeville and Perepa, 2018). Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Blockchain Protocols Public blockchains (e.g., cryptocurrencies - Bitcoin) Permissioned blockchains Private blockchains
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
W Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Implications for SCM Supply chain operational costs account for 2/3 of the final cost of traded goods Distributed/Decentralized Ledger fits well with SC partners with different systems Cryptokeys allow for selective data access ensuring privacy Blockchain aligned with GS1
Blockchain Advantages Speed Security Efficiency Faster transaction times Less required oversight Immutable records, pre- venting tampering and fraud Involvement of fewer intermediaries Improved trust among members Less duplication effort Privacy (e.g. in private permissioned blockchains)
Challenges for Implementing Blockchain New Technology Scalability Process Redesign
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63 Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63 Variety: social networks, sensors, mobile phones (we are now a walking data generator)
Blockchain Hashing
Cryptographic Hash Function Properties Deterministic Pseudo-Random One-way Function Collision Resistant
Hash Values Digits 0-9 Letters A-F (converted to 11-16)
Standard Hashing Alogorithms MD5 SHA1 SHA256 SHA512
Patterns of Hashing Data Independent Hashing Repeated Hashing Combined Hashing Sequential Hashing Hierarchical Hashing
http://www.blockchain-basics.com/HashFunctions.html
https://anders.com/blockchain/
Independent Hashing
Repeated Hashing
Combined Hashing
Sequential Hashing
Hierarchical Hashing
Blockchain Mining Proof of Work Proof of Stake
Merkle Tree
Merkle Tree