DOCSLIB.ORG

Books and Papers

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Books and Papers APPENDIX A Books and Papers Books Economics Economics in One Lesson, Henry Hazlitt, ISBN-13: 978-0517548233 Basic Economics, Thomas Sowell, ISBN-13: 978-­0465060733 Crashed: How a Decade of Financial Crises Changed the World, Adam Tooze, ISBN-13: 978-­0670024933 The Ascent of Money, Niall Ferguson, ISBN-13: 978-­0143116172 The Ethics of Money Production, Jörg Guido Hülsmann, ASIN: B003NX6Z3W Denationalisation of Money, F. A. Hayek, ASIN: B005DTKORM Society The Sovereign Individual, James Dale Davidson and Lord William Rees-Mogg, ISBN-13: 978-­0684832722 Exit, Voice, and Loyalty, Albert O. Hirschman, ASIN: 0674276604 © Harris Brakmić 2019 349 H. Brakmić, Bitcoin and Lightning Network on Raspberry Pi, https://doi.org/10.1007/978-1-4842-5522-3 APPENDIX A BOOKS and PaPERS Technology Mastering Bitcoin 2nd Edition, Andreas Antonopoulos, ASIN: B071K7FCD4 Programming Bitcoin, Jimmy Song, ISBN-13: 978-­1492031499 A Dissection of Bitcoin, Paul Huang, ASIN: B0198LXI5K Bitcoin Internals, Chris Clark, ASIN: B00DG8EPT0 Applied Cryptography, Bruce Schneier, ISBN-13: 978-1119096726 Essays and Papers Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto, https://bitcoin.org/en/bitcoin-paper Bitcoin’s Academic Pedigree, Arvind Narayanan and Jeremy Clark, https://queue.acm.org/detail.cfm?id=3136559 Blockchain Proof-of-Work is a Decentralized Clock, Gregory Trubetskoy, https://grisha.org/blog/2018/01/23/explaining-proof-­ of-work/ Shelling Out: The Origins of Money, Nick Szabo, https://nakamoto institute.org/shelling-out/ Money, Blockchains, and social scalability, Nick Szabo, https://unenumerated.blogspot.com/2017/02/money-blockchains- and-social-scalability.html The many traditions of non-governmental money (part I), Nick Szabo, https://unenumerated.blogspot.com/2018/03/the-many-­ ­ traditions-of-non-governmental.html Smart Contracts: Building Blocks for Digital Markets, Nick Szabo, https://web.archive.org/web/20151222144315/szabo.best.vwh.net/­ smart_contracts_2.html 350 APPENDIX B Problems and Solutions Bitcoin Core Wallet Problem: The configuration script could throw the error: Configure could not find version of library. Solution: Append flag --with-boost-libdir=/usr/lib/x86_64-­linux-­ gnu to the configure script, for example: ./configure --with-boost-libdir=/usr/lib/x86_64-linux-gnu [... other flags follow..] On 32-bit Raspbian you should use /usr/lib/arm-linux-­ gnueabihf instead. LND Problem: At start, LND throws the error: cannot unmarshal object into Go struct field GetBlockChainInfoResult.softforks Solution: Check out one of the v0.18.x branches from bitcoin’s repository (e.g., git checkout v0.18.1) and recompile and reinstall your local Bitcoin version. As of now (September 2019), LND only supports v0.18.x versions of Bitcoin Core reference client. © Harris Brakmić 2019 351 H. Brakmić, Bitcoin and Lightning Network on Raspberry Pi, https://doi.org/10.1007/978-1-4842-5522-3 APPENDIX B PRObLEMS aND SOLUTIONS Problem: How to create backups of channels and funds located in them? Solution: Since v0.6 LND offers the static channel backups scheme. There is a file in .lnd/data/chain/bitcoin/testnet (mainnet), called channel.backup, that is used to restore the channels. This file is encrypted with your wallet seed. The official guide can be found here: https://github.com/ lightningnetwork/lnd/blob/master/docs/recovery.md However, take into account that by default channel.backup is located on the same disk where LND runs, so it’s always a good strategy to copy it to another disk. Here is a script that automatizes this task: https://gist.github.com/alexbosworth/2c5e185aedbdac45a03655b709 e255a3 More info on Static Channel Backups: https://github.com/ lightningnetwork/lnd/releases/tag/v0.6-beta c-lightning Problem: How to create backups of channels and funds located in them? Solution: Copy hsm_secret from .lightning to a safe place first. Later, in case your node has crashed, you should follow these instructions to get your funds back: • Start lightningd --port=0 (this disables any communication) • Run lightning-cli newaddr a few times • Stop lightning daemon with lightning-cli stop 352 APPENDIX B PRObLEMS aND SOLUTIONS • Run sqlite3 with these options sqlite3 .lightning/lightningd.sqlite3 "UPDATE vars SET val= 500000 WHERE name='last_processed_block';" • Start lightningd --port=0 again • Initiate fund recovery with lightning-cli withdraw all It will now depend on your peers how long it will take, until all channels are closed and your funds available again. Meanwhile you will have to use another c-lightning instance as this node wouldn’t be available for any new channels or any other operations. Important Take care of not reusing or copying the lightnind. sqlite3 database file. Publishing an old state in Lightning Network will provoke revocations of transactions, which ultimately lead to loss of funds. Networking Problems Problem: The UFW (firewall) is blocking UPnPC port mapping. Solution: You should allow UDP packets for UPnPC inside your local network. Add this rule to your node’s UFW filter rules (replace the IP range with your own): sudo ufw allow from 192.168.0.0/24 port 1900 to any proto udp 353 Index A blockchain explorer, 255 compilation, 120–122 Addresses configuration file, 165–169 Base58, 51, 56 consensus rules, 7, 8 Bech32-type, 55 JavaScript language, 233 Bitcoin address, generation, 53 asynchronous command getnewaddress, 54 functions, 235, 236 command line tool bitcoin-cli, 54 Bech32, 246–248 double-SHA256 function, 52 bitcoin-core, 234 dumpwallet, 55 bitcoinlib-js package, 238 key types, 54 multisig script, 238, 240 P2SH-type, 54 P2PKH, 238 public key, 52 P2SH, 238 testnet and regtest types, 56 package.json file, 233 walletpassphrase, 55 scriptPubKey, 244 Asymmetric cryptography, 60, 74 SegWit address, 241–244 transaction data, 237 transaction malleability B problem, 244 Back-linked list of blocks, 17 WIF keys, 249 Base58Check format, 52 JSON format, 168 Basis of lightning technology monetary systems, 9 (BOLT), 267 money, 3–6 Bech32-type address, 55 public blockchain, 11–13 Bitcoin raw transaction access, 169 createrawtransaction bitcoin-rpc-explorer, 256, 258 command, 179 blockchain (see Blockchain) getblock command, 185 © Harris Brakmić 2019 355 H. Brakmić, Bitcoin and Lightning Network on Raspberry Pi, https://doi.org/10.1007/978-1-4842-5522-3 INDEX Bitcoin (cont.) Bitcoin client, 58, 131 getnewaddress bitcoin.conf, 166 command, 178 Bitcoin core wallet, 49, 123, 130 gettransaction command, 183 client settings, 160–163 hexadecimal form, 179 encryption, 141–146 MY_RAW_TX, 180 main window, 133 sendrawtransaction menu entry, 131 command, 182 message signing and signatures, 48–51 verification, 157–159 source code, Git, 113–116 sending and receiving funds systemd scripts, 225–229 (see Sending and receiving transaction funds) data, 173 transaction entries, 138 gettransaction Bitcoin log entries, 127 command, 170, 171 Bitcoin script hexadecimal string, 173 bloated, 73 regtest address, 170 browser console output, 204 serialized data, 174 browser warning, 205 structure, 174–177 CHECKSIG operation, 73, 77 transactions (see Transactions) constraints, 72 UFW convert, 260 execute DUP, 75 Using Python language, EQUAL, 77 229–232 EQUALVERIFY, 73, 77 ZeroMQ hashing, public key, 76 block hash format, 195 JavaScript testing install, 191 OP_MUL command, 218 message, 192 parsed structure, 216 NodeJS download, 189 visual script execution, 218 npm package, 193 LIFO, 202 publish–subscribe locking script, 203 method, 185, 186 OP_ADD, 72 ZMQ interface, 188 Op-Codes, 78 zmqtest directory, 191 OP_DUP and OP_HASH160, 73 Bitcoin CLI, 54, 58 parameters, 206 356 INDEX script notation, 205–208 file config, 290–293 scriptPubKey, 73 funding transaction, 302 signature and public key, 73 lightning node, 293–297 stack calculation, 207 payment channel stack structure, 202 creation, 300–305 turing-complete language, 204 port forwarding unlocking script, 203 (upnpc), 297–299 Bitcoin’s source code, 113 peer nodes, 303 Bitcoin Wallet GUI, 130–132 regtest, 304, 305 Bitcoin white paper, 27 testnet explorer, 297 Blockchain, 12, 27 testnet faucet, 294 back-linked list, 33 demo coffee shop, 305 back-linked stack, 35 experimental features, 310 confirmed member, 36 JSON object data, 308, 309 child block, 36 payment request, 307 decentralized and distributed plugins databases, 33 lightning-cli, 311–314 distributed over many nodes, 33 system configuration, 313, 314 Emergent Consensus, 37, 38 systemd, 320–321 forks, 36, 37 parameters, 309 Google’s LevelDB, 34 payment request, 306 parent block, 35 project’s sources, 289 predecessor, 34 QR codes, 307 replicated, 33 status of payment, 307 structure, 34 Coinbase, 21, 64, 65 transactions, 34 Collision-free, 14 variants, 36 Command line interface (CLI), 58 Commitment transactions Alice’s Private Key and Bob’s C Key, 277 Candidate blocks, 10 blockchain, 272 c-lightning, 289 changing state (payment), 272 compilation, 289, 290 definition, 272 configuration half-valid, 273 357 INDEX Commitment transactions (cont.) Environment Setup mirrored transactions, 273 hardware, 87–92 output transaction, 275 setting up, 116–120 revocation key, 275 EQUALVERIFY, 76 state creation, 275 Configuration F bitcoin-cli stop, 125 bitcoin.conf, 123 Fast Internet Bitcoin Relay daemon binary, 125 Network (FIBRE), 47 directory, creation, 124 Full Bitcoin Node, 22 HTTP-based API, 126 Full node, 10, 23, 43, 44, 47, log entries, 126 48, 130 non-mainnet Functioning node, 44 settings, 124 RPC server, 126 G regtest, 125, 126 git tool, 114 testnet,
Load more

Recommended publications
  • Smart Contracts: Building Blocks for Digital Markets
    1/25/2018 Nick Szabo -- Smart Contracts: Building Blocks for Digital Markets Smart Contracts: Building Blocks for Digital Markets Copyright (c) 1996 by Nick Szabo permission to redistribute without alteration hereby granted Glossary (This is a partial rewrite of the article which appeared in Extropy #16) Introduction The contract, a set of promises agreed to in a "meeting of the minds", is the traditional way to formalize a relationship. While contracts are primarily used in business relationships (the focus of this article), they can also involve personal relationships such as marraiges. Contracts are also important in politics, not only because of "social contract" theories but also because contract enforcement has traditionally been considered a basic function of capitalist governments. Whether enforced by a government, or otherwise, the contract is the basic building block of a free market economy. Over many centuries of cultural evolution has emerged both the concept of contract and principles related to it, encoded into common law. Algorithmic information theory suggests that such evolved structures are often prohibitively costly to recompute. If we started from scratch, using reason and experience, it could take many centuries to redevelop sophisticated ideas like property rights that make the modern free market work [Hayek]. The success of the common law of contracts, combined with the high cost of replacing it, makes it worthwhile to both preserve and to make use of these principles where appropriate. Yet, the digital revolution is radically changing the kinds of relationships we can have. What parts of our hard-won legal tradition will still be valuable in the cyberspace era? What is the best way to apply these common law principles to the design of our on-line relationships? Computers make possible the running of algorithms heretofore prohibitively costly, and networks the quicker transmission of larger and more sophsiticated messages.
    [Show full text]
  • Read the Report Brief
    A REVOLUTION IN TRUST Distributed Ledger Technology in Relief & Development MAY 2017 “The principal challenge associated with [DLT] is a lack of awareness of the technology, especially in sectors other than banking, and a lack of widespread understanding of how it works.” - Deloitte Executive Summary1 The Upside In 2016, the blockchain was recognized as one of the top 10 In a recent report, Accenture surveyed emerging technologies by the World Economic Forum.2 The cost data from eight of the world’s ten potential of the blockchain and distributed ledger technology largest investment banks, with the goal of putting a dollar figure against potential (hereinafter “DLT”) to deliver benefits is significant. Gartner cost savings that might be achieved with estimates that DLT will result in $176 billion in added business DLT. The report concluded that the value by 2025; that total reaches $3.1 trillion by 2030.3 banks analyzed could reduce infrastructure costs by an average $8 to Investment in the field reflects the widespread belief that the $12 billion a year. The survey mapped technology can deliver value. Numerous trials, and some more than 50 operational cost metrics deployments, can be found across multiple sectors. and found the savings would break down as follows: Over two dozen countries are investing in DLT 70% savings on central financial More than 2,500 patents have been filed in the last 3 reporting 4 30-50% savings on compliance years 50% savings on centralized operations As of Q4, 2016, 28 of the top 30 banks were engaged in 50% savings on business blockchain proofs-of-concept operations.
    [Show full text]
  • On Trade-Offs of Applying Block Chains for Electronic Voting Bulletin
    On Trade-offs of Applying Block Chains for Electronic Voting Bulletin Boards Sven Heiberg1, Ivo Kubjas1, Janno Siim3;4, and Jan Willemson2;3 1 Smartmatic-Cybernetica Centre of Excellence for Internet Voting Ulikooli¨ 2, 51003 Tartu, Estonia fsven,[email protected] 2 Cybernetica AS, Ulikooli¨ 2, 51003 Tartu, Estonia [email protected] 3 Software Technology and Applications Competence Center Ulikooli¨ 2, 51003 Tartu, Estonia 4 Institute of Computer Science, University of Tartu Ulikooli¨ 18, 50090 Tartu, Estonia [email protected] Abstract. This paper takes a critical look at the recent trend of building electronic voting systems on top of block chain technology. Even though being very appealing from the election integrity perspective, block chains have numerous technical, economical and even political drawbacks that need to be taken into account. Selecting a good trade-off between de- sirable properties and restrictions imposed by different block chain im- plementations is a highly non-trivial task. This paper aims at bringing some clarity into performing this task. We will mostly be concentrating on public permissionless block chains and their applications as bulletin board implementations as these are the favourite choices in majority of the recent block chain based voting protocol proposals. 1 Introduction In virtually all of the modern democratic societies, democracy (translated from Greek roughly as rule of the people) is implemented via some sort of public opinion polling e.g. voting on the elections of representative bodies. Regrettably, the process of public polling is very fragile. Many things can go wrong, and have gone wrong in the history of elections. To address the his- torically experienced problems, many requirements have been put forward and many measures have been developed to meet them.
    [Show full text]
  • Smart Contracts and Distributed Ledger Technology: a Lawyer’S Guide
    Smart Contracts and Distributed Ledger Technology: A Lawyer’s Guide Presented by: Ken Moyle Clear Law Institute | 4601 N. Fairfax Dr., Ste 1200 | Arlington | VA | 22203 www.clearlawinstitute.com Questions? Please call us at 703-372-0550 or email us at [email protected] All-Access Membership Program ● Earn continuing education credit (CLE, CPE, SHRM, HRCI, etc.) in all states at no additional cost ● Access courses on a computer, tablet, or smartphone ● Access more than 75 liVe webinars each month ● Access more than 750 on-demand courses Register within 7 days after the webinar using promo code “7member” to receive a $200 discount off the $799 base price. Learn more and register here: http://clearlawinstitute.com/member Clear Law Institute, © 2018 Smart Contracts and Distributed Ledger Technology A Lawyer’s Guide Agenda Smart Contracts: Theory and Reality Concepts and Confusion • Legal vs. Technical viewpoints The Lexicon • Common Accord • Distributed Ledger Initial Coin Offerings and SAFTs • Blockchain Regulatory Developments • Cryptocurrency • State blockchain statutes • Smart Contracts • Delaware Resources www.ClearLawInstitute.com (703) 372-0550 Clear Law Institute, © 2018 “ The digital revolution is radically changing the kinds of relationships we can have. What parts of our hard- won legal tradition will still be valuable in the cyberspace era? ” - Nick Szabo, 1996 “What is the best way to apply these common law principles to the design of our on-line relationships?” Integrity of record Trust in the Enforceability outcome
    [Show full text]
  • Introducing Ethereum and Solidity Foundations of Cryptocurrency and Blockchain Programming for Beginners — Chris Dannen Introducing Ethereum and Solidity
    Introducing Ethereum and Solidity Foundations of Cryptocurrency and Blockchain Programming for Beginners — Chris Dannen Introducing Ethereum and Solidity Foundations of Cryptocurrency and Blockchain Programming for Beginners Chris Dannen Introducing Ethereum and Solidity: Foundations of Cryptocurrency and Blockchain Programming for Beginners Chris Dannen Brooklyn, New York, USA ISBN-13 (pbk): 978-1-4842-2534-9 ISBN-13 (electronic): 978-1-4842-2535-6 DOI 10.1007/978-1-4842-2535-6 Library of Congress Control Number: 2017936045 Copyright © 2017 by Chris Dannen This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Trademarked names, logos, and images may appear in this book. Rather than use a trademark symbol with every occurrence of a trademarked name, logo, or image, we use the names, logos, and images only in an editorial fashion and to the benefit of the trademark owner, with no intention of infringement of the trademark. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made.
    [Show full text]
  • Cryptocurrency: a Primer for Policy-Makers
    August 2019 Cryptocurrency: A Primer for Policy-Makers Zack Gold and Megan McBride Approved for public release. Unlimited distribution. CRM-2019-U-020185-Final Abstract This primer is an effort to address a gap in knowledge about cryptocurrencies and the cryptocurrency ecosystem among the policymaking community and advance the understanding of cryptocurrencies and consideration of their national security implications. Cryptocurrencies are strictly digital currencies, are typically overseen by a decentralized peer-to-peer community, and are secured through cryptography. We use clear, non-technical language to describe complex concepts and demystify overly technical terms in order to explain the technical and economic aspects of cryptocurrency, why they are used, and the benefits and drawbacks to cryptocurrencies compared to conventional currencies—like the US dollar. We conclude by considering some cryptocurrency-related issues of which greater exploration would benefit US national security. This document contains the best opinion of CNA at the time of issue. It does not necessarily represent the opinion of the sponsor or client. Distribution Approved for public release. Unlimited distribution. Cover image credit: “Photo of a mobile phone with a Bitcoin Cash wallet, Bitcoin whitepaper by Satoshi Nakamoto and Bitcoin.com pen.” BitcoinXio, Apr. 15, 2018. Approved by: August 2019 Jonathan Schroden, Research Program Director Special Operations Program Center for Stability & Development Strategy, Policy, Plans, and Programs Division (SP3) Request additional copies of this document through [email protected]. Copyright © 2019 CNA. All rights reserved Executive Summary In 2017, the value of one Bitcoin skyrocketed to more than $20,000. Media coverage increased, and even people who did not join the investment frenzy became aware of so-called “cryptocurrencies.” Despite this familiarity, few actually understand cryptocurrencies and the implications they may have on US interests, from global finance to national security to good governance.
    [Show full text]
  • Implementing Internet Applications: Overview 4/1/21, 811 PM
    IT 461 - Implementing Internet Applications: Overview 4/1/21, 811 PM IT 461 - Implementing Internet Applications: Overview Module Outline 6. Introduction to Blockchain 6.1.Blockchain Technology 6.1.1. What is Blockchain? 6.1.2. Hashing 6.1.3. Hash Chain of Blocks 6.1.4. Public Key Cryptography 6.1.5. Securing Hashchain With Public Key Cryptography 6.1.6. Blockchain: Hashchain Inside Hashchain 6.1.7. Consensus Mechanism 6.1.8. Glossary 6.2.Blockchain Applications 6.2.1. A Brief History 6.2.2. Distributed Consensus 6.2.3. Smart Contracts 6.2.4. Financial Applications 6.2.5. Non-Financial Applications 6.2.6. Future of Blockchain Applications https://ple.odu.eDu/courses/201930/it461/print/1c1434af16f7c31af8…rses%2F201930%2Fit461%2Fmodules%2F6%2Foverview&print_type=module Page 1 of 12 IT 461 - Implementing Internet Applications: Overview 4/1/21, 811 PM 6. Introduction to Blockchain 6.A. Assignments Assignments Description Deliverables Due Date 1. Readings Please complete the Required Readings in the Resources section of this None Jul. 25, 2020 - module: 11:59 pm Blockchain: Simple Explanation. Mazonka, Oleg. "Blockchain: Simple Explanation" (PDF). Journal of Reference. Volume 16, January 2017. http://jrxv.net/x/16/chain.pdf Blockchain: How This Remarkable Technology Will Impact You, Your Organization and Society. Mercer White Paper, January 2019. https://www.mmc.com/content/dam/mmc- web/insights/publications/2019/jan/gl-2019-blockchain-101-overview- mercer.pdf Optionally, please complete the optional reading in the Resources section of this module. 2. Complete the Complete the following tasks: None Jul. 25, 2020 - module content 11:59 pm 1.
    [Show full text]
  • The Evolution of Privacy in the Blockchain: a Historical Survey
    The Evolution of Privacy in the Blockchain: a Historical Survey Sergio Marciante[0000-0001-8380-2962] and Álvaro Herrero[0000-0002-2444-5384] Grupo de Inteligencia Computacional Aplicada (GICAP), Departamento de Ingeniería Informática, Escuela Politécnica Superior, Universidad de Burgos, Av. Cantabria s/n, 09006, Burgos, Spain. [email protected], [email protected] Abstract. In order to store information in a decentralized context and without the presence of a guarantor authority, it is necessary to replicate the information on multiple nodes. This is the underlying idea of the blockchain, that is generating increasing interest nowadays as one of the most-promising disruptive technolo- gies. However, the ledger is accessible to all participants and if adequate precau- tions are not taken, this may lead to serious privacy issues. Present paper retraces the history of blockchain with particular attention to the evolution of privacy and anonymity concerns, starting from bitcoin. Furthermore, this work presents the most popular solutions to ensure privacy in the blockchain, as well as the main cryptocurrencies that have been proposed after bitcoin to overcome this problem. A critical survey is presented classifying the approaches in mixing protocols and knowledge limitation protocols. Open challenges and future directions of re- search in this field are proposed. Keywords: blockchain, ledger, distributed ledger technology, bitcoin, crypto- currencies, privacy, anonymity, survey. 1 Introduction In recent years there has been an increasing interest on a new technology that promises to revolutionize the world: the blockchain. This is the first time that a secure and im- mutable storage of information, comprising the transfer of an asset without the help of an authority as a guarantor, is a reality.
    [Show full text]
  • Blockchain & Cryptocurrency Regulation
    Blockchain & Cryptocurrency Regulation Third Edition Contributing Editor: Josias N. Dewey Global Legal Insights Blockchain & Cryptocurrency Regulation 2021, Third Edition Contributing Editor: Josias N. Dewey Published by Global Legal Group GLOBAL LEGAL INSIGHTS – BLOCKCHAIN & CRYPTOCURRENCY REGULATION 2021, THIRD EDITION Contributing Editor Josias N. Dewey, Holland & Knight LLP Head of Production Suzie Levy Senior Editor Sam Friend Sub Editor Megan Hylton Consulting Group Publisher Rory Smith Chief Media Officer Fraser Allan We are extremely grateful for all contributions to this edition. Special thanks are reserved for Josias N. Dewey of Holland & Knight LLP for all of his assistance. Published by Global Legal Group Ltd. 59 Tanner Street, London SE1 3PL, United Kingdom Tel: +44 207 367 0720 / URL: www.glgroup.co.uk Copyright © 2020 Global Legal Group Ltd. All rights reserved No photocopying ISBN 978-1-83918-077-4 ISSN 2631-2999 This publication is for general information purposes only. It does not purport to provide comprehensive full legal or other advice. Global Legal Group Ltd. and the contributors accept no responsibility for losses that may arise from reliance upon information contained in this publication. This publication is intended to give an indication of legal issues upon which you may need advice. Full legal advice should be taken from a qualified professional when dealing with specific situations. The information contained herein is accurate as of the date of publication. Printed and bound by TJ International, Trecerus Industrial
    [Show full text]
  • Bitcoin Protocol Main Threats
    Universita` di Pisa Dipartimento di Informatica Technical Report Bitcoin Protocol Main Threats Damiano Di Francesco Maesa 1 1Department of Computer Science, University of Pisa LICENSE: Creative Commons: Attribution-Noncommercial - No Derivative Works ADDRESS: Largo B. Pontecorvo 3, 56127 Pisa, Italy. TEL: +39 050 2212700 FAX: +39 050 2212726 Bitcoin Protocol Main Threats Damiano Di Francesco Maesa ∗1 1Department of Computer Science, University of Pisa Abstract In this paper we explain the basics of Bitcoin protocol and the state of the art of the main attacks to it. We first present an overview of digital currencies, showing what they are and the social need they aim to satisfy. We then focus on the main digital currency up to date, Bitcoin. We treat the basics of the protocol showing what are addresses and transactions and how they are used in a distributed consensus protocol to build the blockchain. After that the main part of this paper presents the state of the art of the three main attacks on the protocol: fraudulent mining techniques, double spending attempts and deanonymization attacks. Keywords: Blockchain; Bitcoin; Deanonymization; Fraudulent Mining; Double Spend- ing 1 Introduction Internet changed our society starting the so called \digital revolution". Almost every in- dividual now can directly connect to any other on the globe allowing for a point-to-point information exchange or, particularly, commercial interaction. But still, for most users, a direct point-to-point value exchange (payment) is not possible, and a third party financial intermediary is required. Entrusting a third party with user funds weakens the user control and spending freedom, limiting it to have commercial interactions only with parties recog- nized by the entity.
    [Show full text]
  • What Is the Distinction Between a Blockchain and a Distributed Ledger?
    Blockchain Byte R3 Research Emily Rutland The Blockchain Byte features a question from the distributed ledger space What is the distinction between a blockchain and a distributed ledger? Blockchain has a While often used interchangeably, a blockchain and a shared and replicated distributed ledger are distinct – though subtly different – technologies. ledger comprised of information stored in A distributed ledger is a record of consensus with a “blocks” and sits below cryptographic audit trail which is maintained and validated by several separate nodes*. This a distributed ledger cryptographically assured and synchronized data can be and acts as a way to spread across multiple institutions. Distributed ledgers can verify transactions be either decentralized, granting equal rights within the submitted by protocol to all participants or centralized, designating producing a new certain users particular rights. Actors typically employ “block” to the chain. distributed ledgers when they need a tool which permits the concurrent editing of a shared state while maintaining its unicity. The ledger’s state is determined through a Distributed ledger is a consensus algorithm, which can vary in its mechanics but record of consensus ultimately serves to validate information from inputs to the with cryptographic network. audit trail maintained and validated by nodes. It can be decentralized or centralized. For more Blockchain Byte posts, R3 members visit: 2 https://r3-cev.atlassian.net/wiki/x/HgEwAw What are Blocks and Why Aren’t They Necessary? Often described as the technology that underpins the Bitcoin network, a blockchain data structure has a shared, replicated ledger comprised of digitally recorded and unchangeable data in packages called blocks.
    [Show full text]
  • Science and Technology Briefings– No
    Briefing ___ Understanding Blockchain s ___ April 4 2 0 1 8 How A Blockchain Works Summary The protocol that powers Bitcoin appeared 10 years ago as a combination of existing technologies. The blockchain enables decentralized and secure transactions without the need for a trusted third party. The potential applications are much broader than just cryptocurrencies and while they are extremely promising, today the technology is generally not yet mature enough for large scale solutions. Further research and innovation are needed to solve blockchain’s scalability limitations as well as its high energy consumption. Source : OPECST from Blockchain France Mrs Valéria Faure-Muntian and Mr Claude de Ganay, Members of the National Assembly, Mr Ronan Le Gleut, Senator Context This memo answers a request from the common fact- The invention of hashcash by Adam Back in 1997 was a finding mission on “Use cases of the blockchain and significant achievement in the idea of validating other data certification technologies” created by the transactions using cryptographic hashes, called “proof National Assembly. It will be followed by a more of work”(4). The goal of these technologies is to remove advanced memo. What we refer to as the blockchain the need for “trusted third parties”, by relying instead are the technologies for storing and transmitting on a distributed network of trust based on an data allowing the creation of distributed, immutable “digital ledger”. duplicated ledgers, without a centralized authority, The obstacle to overcome lies in the problem of secured through cryptography, and organized into double spending (the risk that the same asset could be linked blocks of information at regular intervals of spent twice) and, more generally, around network fault time.
    [Show full text]