The Blockchain Wave in
2019 and Beyond
Prof. Ahmed Banafa
IoT-Blockchain-AI Expert | Faculty | Author | Keynote
College of Engineering @ San Jose State University
Prof. Ahmed Banafa has extensive research work with focus
on IoT, Blockchain, cybersecurity and AI. He served as a
faculty at well-known universities and colleges.
He is the recipient of several awards, including Distinguished
Distinguished Tenured Staff Award, Instructor of the year
year and Certificate of Honor from the City and County of
of San Francisco.
He was named as No.1 tech voice to follow by LinkedIn,
featured in Forbes, IEEE-IoT and MIT Technology Review,
Review, with frequent appearances on ABC, CBS, NBC and
and Fox TV and Radio stations.
He studied Electrical Engineering at Lehigh University,
Cybersecurity at Harvard University, and Digital
Transformation at MIT .
Author of “Secure & Smart IoT using Blockchain & AI” book.
Prof. Ahmed Banafa
My New Book covers IoT,
And Cybersecurity (IBAC)
Cryptography +Human Logic
Dr. Abel Sanchez -MIT
Paul Brody, Ernst & Young's (EY) Global Innovation Leader for
Blockchain Technology, said the Blockchain market over the past 18
months has been moving through an "explain this to me" phase
(PowerPoint) into the "prove it to me" phase (working conference
What is Proof of Work?
Most cryptocurrencies including Bitcoin run on “proof-of-work.”
Proof-of-work as a process has the following steps to it:
• The miners solve cryptographic puzzles to “mine” a block to add to
• This process requires an immense amount of energy and
Proof of Stake
• Proof of stake is a different way to validate transactions based and
achieve the distributed consensus.
• It is still an algorithm, and the purpose is the same of the proof of
work, but the process to reach the goal is quite different.
• Unlike the proof-of-Work, where the algorithm rewards miners who
solve mathematical problems with the goal of validating transactions
and creating new blocks,
• With the proof of stake, the creator of a new block is chosen in a
deterministic way, depending on its wealth, also defined as stake.
• No block reward
• Also, all the digital currencies are previously created in the beginning,
and their number never changes.
• This means that in the PoS system there is no block reward, so, the
miners take the transaction fees.
• This is why, in fact, in this PoS system miners are called forgers,
To understand the direction of Blockchain technology in 2019
and beyond, we need to recognize the three tracks of blockchain
-Pure R&D-Track: This track is focused on understanding
what it means to develop a blockchain-based system. Ideally,
Ideally, working on real use cases; but the ultimate goal is
investigation and learning, not necessarily delivery of a
-Immediate Business Benefit- Track: This track covers two
bases: One: learning how to work with this promising
technology. Two: delivering an actual system that can be
deployed in a real business context. Many of these projects are
projects are intra-company.
-Long-Term Transformational Potential- Track: This is the
track of the visionaries, who recognize that to realize the true
true value of blockchain-based networks means reinventing
reinventing entire processes and industries as well as how
how public-sector organizations function.
How Blockchain Can Help Advertising
• For buy-side transparency: Blockchain for auditing
• For sell-side transparency: Proof-of-view to fight fraud
• PoV only records views from signed-in users, since the viewer’s unique ID is
part of the information required for a view to be considered valid.
• Since most people are only able to watch one video at a time, the PoV will
invalidate views from a user who is streaming multiple videos simultaneously.
• The PoV technology confirms that a video is actually being streamed by
capturing information about the current frame at random times.
• Using smart contracts to document views and who gets paid
Verifying the Authenticity of Returned Drugs
• In the Pharma industry, drugs are frequently returned to the
• While the proportion of the returned drugs is small compared to the
sales (about 2–3% of sales), the per year volume is in the range of $7-
• In the US, the Drug Supply Chain Security Act (DSCSA) stipulates that
all US manufacturers must implement serialization or barcoding of
drugs at a package level by November 2018.
• Also, by the end of 2019 these serial numbers must be used to verify
the authenticity of the returned drugs.
Currently, Merck in partnership with SAP has developed the SAP Pharma
Blockchain POC app for this Use Case. SAP launched this first Proof of
Concept in Q3 2017, and a second one in early 2018.
The PoC for the Use Case works as follows,
• SAP’s existing solution called ATTP (Advanced Track and Trace for
Pharmaceuticals), generates unique identifiers for a drug package.
• When a manufacturer ships a package they register the item on the
SAP Pharma POC Blockchain, with the four pieces of information
generated by the ATTP; the item number (based on GS1 standard), a
serial number, a batch number, and an expiration date.
• The distributor can extract the four pieces information from the
packaging’s barcode, using a simple scanner mobile app, allowing
them to verify returns .
• Counterfeiter copies of barcodes can be avoided, since SAP has the
added ability to track every time a package changes hands.
• A map view within the mobile app also helps ensure that the drugs
are in the expected geographical region.