Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Blockchain Network Theory

560 views

Published on

Blockchain distributed ledger technology is evolving from the hype phase into one of greater maturity and long-term value creation. This graduate course overview examines how blockchains, networks, and social interaction patterns are related.

Published in: Technology
  • DOWNLOAD FULL BOOKS INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL PDF EBOOK here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL EPUB Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... 1.DOWNLOAD FULL doc Ebook here { https://tinyurl.com/y8nn3gmc } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Blockchain Network Theory

  1. 1. Blockchain Networks and People Blockchain is software for the secure transfer of value via the internet A network is a group or system of interconnected people or things Network Science is the study of complex phenomena using networks (graph theory) Blockchain networks indicate the emergence of new patterns of human interaction Purdue University, Nov 8, 2018 Course Summary Slides: http://slideshare.net/LaBlogga Melanie Swan, Philosophy melanie@blockchainstudies.org TECH58100–PHIL 58000A
  2. 2. 8 Nov 2018 Blockchain Networks Agenda  Readings Summary  Blockchain Overview  Network Overview 1
  3. 3. 8 Nov 2018 Blockchain Networks Readings #1: Bitcoin & Network Science 2  Nakamoto, S. (2008). Bitcoin: P2P Electronic Cash  Original white paper for blockchain concept: having an always-on Internet-based system checking in real-time 24-7 anytime anyone tries to spend digital cash, to control that it is only being spent once (solution to double-spending problem)  Brandes et al. (2013). What is network science?  A network connects nodes, resource flow is not necessary (example: Purdue alumni network)  A network is a model of a real-life phenomenon Core-periphery: densely-connected core, sparsely- connected periphery Ego Network: focal node (“ego”) and directly-connected nodes ( “alters”)
  4. 4. 8 Nov 2018 Blockchain Networks Readings #2: Blockchain & Network Intro 3  Morabito. (2017). Blockchain for Business Innovation  Decentralized database: all peer nodes have a copy  Public blockchains vs. private blockchains (for business)  Proof of work and proof of stake consensus algorithms  Smart contracts: two or more parties, terms, consideration  Jackson. (2008). Social and Economic Networks Intro  General measures of network utility, efficiency, stability  Trade-offs in network design: stability vs. efficiency  Homophily: tendency of individuals to associate and bond with others that are similar, “birds of a feather flock together”  Preferential attachment: “rich get richer”
  5. 5. 8 Nov 2018 Blockchain Networks Readings #3: Water Industry & Scale-free 4  Lin et al. (2017). Blockchain and ICT E-Agriculture  IOT and blockchain networks (Bitcoin, Ripple, Monero) indicate complex network behavior: small-world & scale-free  Interpretation: replicating the “regular” way of doing things  Sohn. (2017). Small-World and Scale-Free Network Models for IoT Systems  Random networks (Erdős–Rényi, PMI, 1959): Normally-distributed; Gaussian  Small-world networks (Watts & Strogatz, Nature, 1998): Power law; 80-20 pareto distribution  Scale-free networks (Barabási & Albert, Science, 1999): Fat-tailed distribution; six degrees of separation; rich get richer
  6. 6. 8 Nov 2018 Blockchain Networks Readings #4: Agriculture & Network Trust 5  Kim and Laskowski. (2017). Agriculture & Blockchain: Sustainable Solutions for Food, Farmers, & Financing  Blockchain enables new models of local organizing: farmers cooperatives, recourse against players with market power  Food safety, product traceability (salmonella outbreak)  Sustainability: financial, crop genetics, micro-insurance  Sherchan et al. (2013). Trust in Social Networks.  Humanity is good at producing material goods (“widgets”), how can we also excel at producing intangible resources?  Social capital (trust, autonomy, inclusion, recognition, peace)  Incentive structures that promote social capital production
  7. 7. 8 Nov 2018 Blockchain Networks Readings #5: Solar Energy & Network Stack 6  Adjeleian et al. (2018). How blockchain is disrupting the Solar Energy industry  Incentives for transitioning to renewable resources  IOT carbon sequestration blockchain for carbon credits  Implied political power shift due to energy independence  Orlikowski and Scott. (2015). The algorithm and the crowd: considering the materiality of service innovation  Digital services: shift to practice of buying airline tickets online  Building the trust stack: design structures to create social capital in a digital network environment  Layers in the trust stack: infrastructure, interface, application, network resources (trust, liquidity)
  8. 8. 8 Nov 2018 Blockchain Networks Agenda  Readings Summary  Blockchain Overview  Network Overview 7
  9. 9. 8 Nov 2018 Blockchain Networks 8 “Better horse” Progression of a New Technology “Horseless carriage” “Car” 3.0 2.0 1.0 Better internet: payments and secure information transfer, privacy-protected computing Assets digitized and registered to blockchains, real-time valuation and transfer, smart contracts Large-scale social collaboration technology: supplementing and replacing governments, corporations, and open-source communities Source: Swan, M. (2015). Blockchain: Blueprint for a New Economy Blockchain
  10. 10. 8 Nov 2018 Blockchain Networks basics. 9
  11. 11. 8 Nov 2018 Blockchain Networks internet content. 10 information. email. voice. video. money.
  12. 12. 8 Nov 2018 Blockchain Networks 11 Conceptual Definition: Blockchain is a software protocol; just as SMTP is a protocol for sending email, blockchain is a protocol for sending money Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491 What is Blockchain/Distributed Ledger Tech?
  13. 13. 8 Nov 2018 Blockchain Networks Blockchain Technology: What is it? 12  Blockchain technology is the secure distributed ledger software that underlies cryptocurrencies like Bitcoin  “Internet of Money” leapfrog technology; Skype is an app allowing phone calls via Internet without POTS; Bitcoin is an app allowing money transfer via Internet without banks; ‘decentralized Paypal’ Internet (decentralized network) Blockchain Bitcoin Source: http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491 Application Layer Protocol Layer Infrastructure Layer SMTP Email VoIP Phone calls OSI Protocol Stack:
  14. 14. 8 Nov 2018 Blockchain Networks Chain of linked blocks = a “blockchain” 13 Source: GREG/Smart Energy Meeting PWC, Blockchain101, Nov 2016 Each block stores information and contains a validated pointer (called a hash) to the previous block. Each block is thus linked or “chained” to the last one The chaining of blocks is tamper-proof, creating a immutable record of events that is resistant to fraud and corruption
  15. 15. 8 Nov 2018 Blockchain Networks blockchain. 14 software. secure cryptographic transfer. internet.
  16. 16. 8 Nov 2018 Blockchain Networks killer apps. 15 secure transfer of value, of… money & securities. property. contracts. identity credentials.
  17. 17. 8 Nov 2018 Blockchain Networks How does Bitcoin work? Use eWallet app to submit transaction 16 Source: https://www.youtube.com/watch?v=t5JGQXCTe3c Scan recipient’s address and submit transaction $ appears in recipient’s eWallet Wallet has keys not money Creates PKI Signature address pairs A new PKI signature for each transaction
  18. 18. 8 Nov 2018 Blockchain Networks P2P network confirms & records transaction 17 Source: https://www.youtube.com/watch?v=t5JGQXCTe3c Transaction computationally confirmed Ledger account balances updated Peer nodes maintain distributed ledger Transactions submitted to a pool and miners assemble new batch (block) of transactions each 10 min Each block includes a cryptographic hash of the last block, chaining the blocks, hence “Blockchain”
  19. 19. 8 Nov 2018 Blockchain Networks 18 public chains. private chains. trustless. mined. p2p software. trusted. not-mined. enterprise software.
  20. 20. 8 Nov 2018 Blockchain Networks What is blockchain? Conceptual overview 1. Digital money (better version of PayPal/Venmo) 2. Enterprise software (digital asset inventories) 3. Inclusion technology (unbanked, credit, literacy) 4. Emerging legal jurisdiction (game theory not police) 5. Web 3.0: large-scale collaboration technology  (Web 3.0 = smart network, “Internet's new pipes”) 6. Truth verification method (rich information attributes) 19 Smart networks: intelligent autonomously-operating networks, a new form of global computational infrastructure that includes technologies such as blockchain economic networks, deep learning pattern- recognition networks, autonomous-strike UAVs, and high- frequency trading networks
  21. 21. 8 Nov 2018 Blockchain Networks Agenda  Readings Summary  Blockchain Overview  Network Overview 20
  22. 22. 8 Nov 2018 Blockchain Networks Complex Systems 21  Can often characterize the macrostate and the microstate, but what happens in the middle? Macrostate: GDP Microstate: Rate of new businesses formation, new auto loans Middle: Complexity Source: Schweitzer, F., et al. 2009. Economic Networks: The New Challenges. Science. 325:422-5. Simon, H.A. 1996. The Sciences of the Artificial. Third edition. MIT Press, Cambridge, MA. Simon (1996): small groups of parts make up larger assemblies (modules) from which the whole is built; the parts of the module interact strongly Whole Assemblies or Modules Parts Simon (1996)Schweitzer (2009)
  23. 23. 8 Nov 2018 Blockchain Networks  Huntington’s disease (0.0002% deaths, 2.27 per million)  Heart disease (30%/22% U.S./global deaths), Cancer (24% U.S. deaths)  “Natural Causes” attributed due to lack of causal model 22 Solving Disease and Health Challenges Hard problems: probabilistic not deterministic Genomics 100% Behavior 33% Genomics 33% Environment 33% Source: Pagidipati. 2013. Estimating Deaths From Cardiovascular Disease. Circulation. 127(6):749–756; National Cancer Institute. 2018. Cancer Statistics. https://www.cancer.gov/about-cancer/understanding/statistics Deterministic Probabilistic 40+ CAG repeats in the HTT gene
  24. 24. 8 Nov 2018 Blockchain Networks Problem: Prediction in Complex Systems  How are these events similar? different?  Is the Turkish coup an example in this trajectory?  How can networks be used to map the underlying factors that give rise to macro-level formations? 23 1789 2010 ??? French Revolution Tiananmen Square Next event Arab Spring Turkish coup? 1989 2016 Source: Handbook of Cliometrics. 2016. Editors: Diebolt, Claude, Haupert, Michael (Eds.)
  25. 25. 8 Nov 2018 Blockchain Networks Claim: Networks are a way to analyze “the middle” 24  Map relationships between agents to see intermediate structure, dynamic emergence
  26. 26. 8 Nov 2018 Blockchain Networks Drawing the Graph 1. What is the domain? 2. What are the entities in this domain? (nodes) 3. What are the relationships between them? (edges) 25 Simple Graph of Entities and Relationships Domain: Social Network Domain: Financial System Nodes: People Edges: Know one another Edges: Financial obligation (1: cash deposits, 2: loans) Nodes: Banks
  27. 27. 8 Nov 2018 Blockchain Networks Network Science  Network Science = The study of graphs as a representation of relations between entities  Nodes and edges (entities and relationships between them)  Seven Bridges of Königsberg (Euler, 1736, graph theory) 26 node or
  28. 28. 8 Nov 2018 Blockchain Networks Network Science  Seven Bridges of Königsberg (Euler, 1736, graph theory)  Problem: walk around the city, crossing each bridge only once  Euler: mathematical proof that it cannot be done, using (inventing) graph theory; shifting math from ‘science of quantity’ to more abstract structures such as topology 27 node or Kant’s Tomb, Kaliningrad Cathedral (formerly Königsberg)
  29. 29. 8 Nov 2018 Blockchain Networks Example: Social Networks 28
  30. 30. 8 Nov 2018 Blockchain Networks Example: Food Web and Trade Network 29
  31. 31. 8 Nov 2018 Blockchain Networks Example: Systemic Financial Risk  Risk of financial contagion (how “catching” the collapse of one bank would be to others given linked exposure) 30 Source: IMF, June 2016, Systemic Risk Among Deutsche Bank and Global Systemically Important Banks Legend: • Blue, purple and green nodes correspond to European, US and Asian banks • Arrow thickness captures total linkages (both inward and outward), • Arrow direction is net spillover • Node size corresponds to asset value
  32. 32. 8 Nov 2018 Blockchain Networks Example: How are brain and body linked? 31 Sources: Murphy, Bassett, et al. 2018. Structure, function, and control of the human musculoskeletal network. PLOS Biology. Davies, J.A. 2014. Life Unfolding: How the Human Body Creates Itself. Oxford: Oxford University Press. Summary: Employ network theory methods to map neural control mechanisms to the musculoskeletal system Summary: study biological networks: larger patterns of gene expression and cellular interconnection Biological musculoskeletal network
  33. 33. 8 Nov 2018 Blockchain Networks Drawing the Graph  Different ways to organize information 32 Traditional Method Network Science Method
  34. 34. 8 Nov 2018 Blockchain Networks Network Properties  Use networks to analyze innovation rate, collaboration with other departments/firms, how decisions are made 33 Degree of connectivity of network • V:={1,2,3,4,5,6} • E:={{1,2},{1,5},{2,3},{2,5},{3,4},{4,5},{4,6}} How quickly is a new idea disseminated? Who is a key influencer in decisions?
  35. 35. 8 Nov 2018 Blockchain Networks Build a Social Graph – How does it work?  Compile table listing names and number of interactions 34 • V:={1,2,3,4,5,6} • E:={{1,2},{1,5},{2,3},{2,5},{3,4},{4,5},{4,6}} Source: https://www.teachengineering.org/activities/view/uno_graphtheory_lesson01_activity1 Data Network Modeling
  36. 36. 8 Nov 2018 Blockchain Networks Build a Social Graph – How does it work?  Example: Medea (Euripides), 431 BC  Level 1 analysis: purely quantitative, based on # interactions 35 • V:={1,2,3,4,5,6} • E:={{1,2},{1,5},{2,3},{2,5},{3,4},{4,5},{4,6}} Source: https://www.teachengineering.org/activities/view/uno_graphtheory_lesson01_activity1 Basic Interaction Map Network Modeling Network Analysis Medea Jason
  37. 37. 8 Nov 2018 Blockchain Networks Build a Social Graph  Example: tweet activity during conference 36 • V:={1,2,3,4,5,6} • E:={{1,2},{1,5},{2,3},{2,5},{3,4},{4,5},{4,6}} Source: https://pegasusdata.com/2012/12/06/just-in-time-sociology-new-field-digital-humanities/ Conference Agenda
  38. 38. 8 Nov 2018 Blockchain Networks Build a Social Graph  Example: tweet activity during conference 37 • V:={1,2,3,4,5,6} • E:={{1,2},{1,5},{2,3},{2,5},{3,4},{4,5},{4,6}} Source: https://pegasusdata.com/2012/12/06/just-in-time-sociology-new-field-digital-humanities/ Keynote: Paula Tubaro Conference Organizer: Frederic Kaplan

×