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www.vestforsk.no
Bitcoin and blockchain in eGovernment
Svein Ølnes, Vestlandsforsking, eGov/ePart 2017
ITMO University, St...
www.vestforsk.no
Blockchain is a hot topic!
www.vestforsk.no
 Located in Sogndal, by the Sognefjord, est. 1985
 Research areas:
 Climate change
 Tourism
 Technol...
www.vestforsk.no
 Researcher at WNRI since 1996
 Main research field: eGovernment
 Discovered Bitcoin in 2011
 fascina...
www.vestforsk.no
Content
 Short history of Bitcoin and blockchain development
 Introduction to Bitcoin and blockchain te...
www.vestforsk.no
Bitcoin – «mother of all blockchains»
Published 31.10.2008 (Halloween Day)
Launched 03.01.2009
Running co...
www.vestforsk.no
Lukewarm reception, apart from..
www.vestforsk.no
A classic innovation
 Building on decades of ground research in cryptography
 All components known on b...
www.vestforsk.no
Bitcoin builds on
 David Chaum’s blind signatures and work with Digital Cash
 Adam Back’s HashCash and ...
www.vestforsk.no
Content
 Short history of Bitcoin and blockchain development
 Introduction to Bitcoin and blockchain te...
www.vestforsk.no
Back to start: Distributed Internet
Paul Baran: «On Distributed Communications Network»
[Baran invented p...
www.vestforsk.no
From client-server to peer-to-peer
Traditional web technology
Equal peers, no server
www.vestforsk.no
Cryptographic underpinnings
 Public key cryptography and digital signatures
 Hashing algorithms
 Merkl...
www.vestforsk.no
Bitcoin definition
 Bitcoin is proof of ownership without the need for a third-party
 ownership of curr...
www.vestforsk.no
Bitcoin’s core architecture
 Peer-to-peer technology
 Blockchain as a storage structure
 Consensus mec...
www.vestforsk.no
Nakamoto Consensus
 The process by which a number of computers come to agree
on some shared set of data ...
www.vestforsk.no
Cross-disciplinary
www.vestforsk.no
The Bitcoin blockchain structure
Important! Tamper evident vs. tamper proof!
www.vestforsk.no
Bitcoin i praksis
www.vestforsk.no
Bitcoin constituencies
 Bitcoin users
 Full node: Those who download the whole blockchain and participa...
www.vestforsk.no
Content
 Short history of Bitcoin and blockchain development
 Introduction to Bitcoin and blockchain te...
www.vestforsk.no
Myths about Bitcoin and blockchain technology
 «Blockchain» is a pretty meaningless concept by its own
...
www.vestforsk.no
Open vs. closed blockchains
Open
(permissionless)
Closed
(permissioned)
Who can update Everybody with
eno...
www.vestforsk.no
What is genuine with (open) blockchains?
 Immutability
 «tamper proof» vs. «tamper evident»
 .. but no...
www.vestforsk.no
Content
 Short history of Bitcoin and blockchain development
 Introduction to Bitcoin and blockchain te...
www.vestforsk.no
Bitcoin as a platform
Network/Protocol
layer
Currency/token
Application
www.vestforsk.no
Blockchain layered structure
www.vestforsk.no
Internet and blockchain technology stacks
Support infrastructures
www.vestforsk.no
Content
 Short history of Bitcoin and blockchain development
 Introduction to Bitcoin and blockchain te...
www.vestforsk.no
Open or closed blockchains in public sector?
 Openness should be the main rule in public sector
 Howeve...
www.vestforsk.no
Bitcoin and blockchain technology in public sector
 Authentication of documents
 badges, course certifi...
www.vestforsk.no
Certificates (birth cert. ++) on the blockchain
www.vestforsk.no
Domain name and password on the blockchain
 «One password to rule them all»
 Secure web (HTTPS)
 Domai...
www.vestforsk.no
Relevant literature
www.vestforsk.no
More literature..
 «Bitcon – A Peer-to-Peer Electronic Cash System»
Satoshi Nakamoto, 2008
 «Open Matte...
www.vestforsk.no
Other resources
 News about Bitcoin and blockchain technology
 CoinDesk (www.coindesk.com)
 Coin Teleg...
www.vestforsk.no
Content
 Short history of Bitcoin and blockchain development
 Introduction to Bitcoin and blockchain te...
www.vestforsk.no
Thank you for your attention!
Email: sol@vestforsk.no
This presentation:
http://www.slideshare.net/sveino...
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eGov2017Keynote

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Keynote speech at the eGov/ePart conference 2017 in St. Petersburt, 04.09.2017

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eGov2017Keynote

  1. 1. www.vestforsk.no Bitcoin and blockchain in eGovernment Svein Ølnes, Vestlandsforsking, eGov/ePart 2017 ITMO University, St. Petersburg, 04.09.2017
  2. 2. www.vestforsk.no Blockchain is a hot topic!
  3. 3. www.vestforsk.no  Located in Sogndal, by the Sognefjord, est. 1985  Research areas:  Climate change  Tourism  Technology and society  Around 25 researchers  Part of the research infrastructure in Norway Western Norway Research Institute
  4. 4. www.vestforsk.no  Researcher at WNRI since 1996  Main research field: eGovernment  Discovered Bitcoin in 2011  fascinated by the technology since then..  my interest is primarily in the intersection of tech., economy and society  MSc in Digital Currencies (2017) at the University of Nicosia  Disclosure: Own bitcoin and several other crypto currencies About me
  5. 5. www.vestforsk.no Content  Short history of Bitcoin and blockchain development  Introduction to Bitcoin and blockchain technology  Myths and facts  Bitcoin/blockchain as a platform and possible infrastructure  Use cases for public sector  Q&A
  6. 6. www.vestforsk.no Bitcoin – «mother of all blockchains» Published 31.10.2008 (Halloween Day) Launched 03.01.2009 Running continually since
  7. 7. www.vestforsk.no Lukewarm reception, apart from..
  8. 8. www.vestforsk.no A classic innovation  Building on decades of ground research in cryptography  All components known on beforehand  Put together in a novel way  Solved decades of failed attempts to solve the double- spending problem in a decentralized way (the Byzantine Generals’ Problem)
  9. 9. www.vestforsk.no Bitcoin builds on  David Chaum’s blind signatures and work with Digital Cash  Adam Back’s HashCash and Proof of Work  Hal Finney’s RPOW (Reusable Proof of Work)  Wai Dei’s b-money  Nick Szabo’s BitGold
  10. 10. www.vestforsk.no Content  Short history of Bitcoin and blockchain development  Introduction to Bitcoin and blockchain technology  Myths and facts  Bitcoin/blockchain as a platform and possible infrastructure  Use cases for public sector  Q&A
  11. 11. www.vestforsk.no Back to start: Distributed Internet Paul Baran: «On Distributed Communications Network» [Baran invented packet switching, together with (and ind.p. of) Donald Davies, UK]
  12. 12. www.vestforsk.no From client-server to peer-to-peer Traditional web technology Equal peers, no server
  13. 13. www.vestforsk.no Cryptographic underpinnings  Public key cryptography and digital signatures  Hashing algorithms  Merkle trees (of hashes)
  14. 14. www.vestforsk.no Bitcoin definition  Bitcoin is proof of ownership without the need for a third-party  ownership of currency (bitcoin)  ownership of any physical or digital object that this currency represents
  15. 15. www.vestforsk.no Bitcoin’s core architecture  Peer-to-peer technology  Blockchain as a storage structure  Consensus mechanisms (Nakamoto Consensus)  Nodes for validating transactions and blocks  Miners with PoW for securing transactions (avoid double-spending)  The Nakamoto Consensus is the real disruptive part! (not the blochchain!)
  16. 16. www.vestforsk.no Nakamoto Consensus  The process by which a number of computers come to agree on some shared set of data and continually record valid changes to that data (Van Valkenburgh, 2016)
  17. 17. www.vestforsk.no Cross-disciplinary
  18. 18. www.vestforsk.no The Bitcoin blockchain structure Important! Tamper evident vs. tamper proof!
  19. 19. www.vestforsk.no Bitcoin i praksis
  20. 20. www.vestforsk.no Bitcoin constituencies  Bitcoin users  Full node: Those who download the whole blockchain and participates in validation  Lightweight nodes: Mobile apps  Miners  Secures the blockchain  Developers  Maintenance and further development of the open source software  Exchanges  Exchanging between crypto currencies and fiat money and betw. CCs  Merchants  Those who accept crypto currencies for goods and services
  21. 21. www.vestforsk.no Content  Short history of Bitcoin and blockchain development  Introduction to Bitcoin and blockchain technology  Myths and facts  Bitcoin/blockchain as a platform and possible infrastructure  Use cases for public sector  Q&A
  22. 22. www.vestforsk.no Myths about Bitcoin and blockchain technology  «Blockchain» is a pretty meaningless concept by its own  Need to specify what type of blockchain  Open/Closed, security model  Bitcoin only for criminals and shady affairs  Recent research shows this is no longer the case (Tasca et al., 2016)  Need to distinguish between open and closed blockchains  Blockchain as a universal solution  Blockchain techn. makes sense in many situations and scenarios  However, must always ask: Why not a tradional (DB) solution?
  23. 23. www.vestforsk.no Open vs. closed blockchains Open (permissionless) Closed (permissioned) Who can update Everybody with enough resources Selected people/org. Who prod. data Everybody participat. Customers of org. Incentive to follow rules Direct economic (carrot & stick) Reputation Storing Distributed Centralized Trust in central actors No Yes Transaction costs - + Speed (trans./sec.) - + Immutability + - Currency/»token» Yes No Example Bitcoin, Ethereum HyperLedger, Corda (?)
  24. 24. www.vestforsk.no What is genuine with (open) blockchains?  Immutability  «tamper proof» vs. «tamper evident»  .. but not in itself (ref. Ethereum and The DAO)  Censor-ship resistant  «unwanted» transactions will also be processed as long as they follow the consensus rules  Open for all and at the same time protect privacy
  25. 25. www.vestforsk.no Content  Short history of Bitcoin and blockchain development  Introduction to Bitcoin and blockchain technology  Myths and facts  Bitcoin/blockchain as a platform and possible infrastructure  Use cases for public sector  Q&A
  26. 26. www.vestforsk.no Bitcoin as a platform Network/Protocol layer Currency/token Application
  27. 27. www.vestforsk.no Blockchain layered structure
  28. 28. www.vestforsk.no Internet and blockchain technology stacks Support infrastructures
  29. 29. www.vestforsk.no Content  Short history of Bitcoin and blockchain development  Introduction to Bitcoin and blockchain technology  Myths and facts  Bitcoin/blockchain as a platform and possible infrastructure  Use cases for public sector  Q&A
  30. 30. www.vestforsk.no Open or closed blockchains in public sector?  Openness should be the main rule in public sector  However, cannot rule out the benefits of closed/private BCs  Blockchain technology should be perceived as a platform- enabling technology  as a platform technology for public sector, it should be open  as an information infrastructure, it needs to be open  Look at the development of blockchain technology the same way as the development of the Internet  gradually developed to an open network  the web also developed into an open platform (remember the extranets?)
  31. 31. www.vestforsk.no Bitcoin and blockchain technology in public sector  Authentication of documents  badges, course certificates, CVs  other certificates and licenses  ++  Proof of ownership  property  +++  Security and privacy  secure, decentralized identity management  enhanced privacy  Think of Bitcoin/blockchain as a new Internet-based platform!
  32. 32. www.vestforsk.no Certificates (birth cert. ++) on the blockchain
  33. 33. www.vestforsk.no Domain name and password on the blockchain  «One password to rule them all»  Secure web (HTTPS)  Domain names registered directly on the blockchain (e.g. NameCoin)
  34. 34. www.vestforsk.no Relevant literature
  35. 35. www.vestforsk.no More literature..  «Bitcon – A Peer-to-Peer Electronic Cash System» Satoshi Nakamoto, 2008  «Open Matters - Why Permissionless Blockchains are Essential to the Future of the Internet” Peter van Valkenburgh, Coin Center  «Beyond Bitcoin – Enabling Smart Government Using Blockchain Technology»  Svein Ølnes, eGov 2016, Springer LNCS  «Deja vú all over again: Thinking through law & code, again Lawrence Lessig, https://vimeo.com/148665401
  36. 36. www.vestforsk.no Other resources  News about Bitcoin and blockchain technology  CoinDesk (www.coindesk.com)  Coin Telegraph (www.cointelegraph.com)  Bitcoin Magazine (www.bitcoinmagazine.com)  + many more  Bitcoin blockchain (and other BCs) in real time  www.bitcoin.info  www.tradeblock.com/bitcoin  https://data.bitcoinity.org  www.statoshi.info  + many more
  37. 37. www.vestforsk.no Content  Short history of Bitcoin and blockchain development  Introduction to Bitcoin and blockchain technology  Myths and facts  Bitcoin/blockchain as a platform and possible infrastructure  Use cases for public sector  Q&A
  38. 38. www.vestforsk.no Thank you for your attention! Email: sol@vestforsk.no This presentation: http://www.slideshare.net/sveino/eGov2017 Bitcoin-addresse: 171cQgAyEkrMn2xntQfARz4XFeWzNHK8iZ

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