JIM, Sixty, Two Thousand discussed on Technology Untangled
Of slain. You saw big marketing budgets and elon musk's tweets blockchain has been hyped beyond belief. And it's also been made more complicated than it leads to be. More i could up angolan go. My name's ingram go. I'm senior vice. President and chief technology officer for a special intelligence at hewlett packard enterprise. So first question. What exactly is a blockchain. Let's start with a public blockchain first. Let's use an example of a analogy of a of a ring binder. You've got this notebook with many blank pages bound by a ring ring binder on page one the record number of transactions. You know. maybe. Jim pays john two bitcoins and sarah pays jim ten bitcoins and so on and so on then on the next page You have the same again. Set of transactions being written down on it and the knicks page and then expansion so on so if if you imagine each page is a block and all the pages of bound by the ring bind up being the chain. You actually have a a blockchain there right. So that's what blockchain is except for the fact that in a public blockchain this ledger or this record. Write this chain of pages. Chain of blocks is digital and is distributed to everyone publicly equally publicly with no central custodian. Why you want to use a blockchain. There are two major reasons. Why you want us a blockchain right first and foremost this when you wanna keep record of an entire sequence of transactions especially if you want to go all the way to genesis the beginning and secondly you won that record to be transparent that is you want the decentralize it by distributing copies of the same sequence records to everyone equally with no central custodian and within that de fall. How'd you than the fact that with everyone having a copy how to have any tempering capability and his swear you would apply a cryptographic hash and finely within transparency. How do make decisions if everyone is equal in the sense right in a public blockchain they have heavy cryptographic puzzle to solve and if the application has a need for any one of these capabilities. This is where you would use a public blockchain. Now you might use the phrase public blockchain in fact also a private blockchain and the as but we'll get to that in just a minute first to understand why people are so excited by blockchain. There's no better example than the world's most famous use case cryptocurrency and the world's most famous crypto currency bitcoin. In two thousand eight the white paper. Could bitcoin appear to peer. Electronic cash system was published by an elusive person or persons under the pseudonym satochi nakamoto people was published in two thousand eight and then a solution mine the first block the genesis blocked right right to the beginning call blocks zero in two thousand nine and after mining that block he was awarded the very first and therefore created the very first fifty bitcoins and then in twenty ten december. Twelve thirteen he. She evaded when quiet and he has been quiet for more than ten years. Now so that's how. That was always thought that i'm what was so revolutionary in the way that bitcoin was setup it is applying the idea of public blockchain to financial transactions and the implications. That comes with it right. If you look back at the two points is a record of enticed and sex and sequence going back to genesis imagine now having financial transactions that you can trace back all the way to the very beginning timestamped botching forward in time and it is transparent meaning everyone can have a copy to look at all the transactions albeit debt. There is privacy associated with the entities making those transactions and there is no central custodian and in order to make decisions as to what transactions are valid. There is this competition why because there is no central custodian to make that call therefore you need a consensus to be reached as to what transactions are valid. You have to have a competition to solve that problem. You hear the cryptographic competition referred to as proof of work offer bitcoin. It's most common. Monica bitcoin mining now minus. Oh compete by using their compute power to try and solve a complex hashing problem and for bitcoin. They get paid in bitcoin. Sweet what's the problem. As solved the transaction or block is added to the blockchain and then finally because get a copy. How do you make sure like in financial transaction that no-one tempest with it. If everyone has a copy of it right the answer is the cryptographic hash right. If you go back to the analogy of the ring bound notebook with all the transaction on each patient therefore each block at every page you can use a cryptographic hash to consume the entire page of tax transaction on that page right and then produce you a sixty four digit Number cryptographic hash is what makes blockchain impossible to tamper with or immutable. And if anyone changes the information of the block the hash that is out will be outed. But it doesn't stop after that you take the cryptographic hash of each block and then hash them again to get overall hashtag mba sixty four digit heche number so that if anyone touches any block in history changed at blocks hash therefore it will also change the overall hash and you will know it. This is how the ensure that in a public blockchain where everyone has a copy of that entire chain and tie history that.