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HashChain Technology - Disruptive Blockchain Solutions

HashChain Technology

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Despite the popular notion, Blockchains are not that complex once you get the general idea behind them. What makes Blockchain so interestingly difficult to implement is that it is made up of some many different components of varying complexity and a good Blockchain developer needs to know how to connect these components in the right order to build good Blockchains. In this post, I will explain what a Blockchain actually is, then start talking about various features of Blockchain such as Hashing, Immutability, and Distributed P2P Network. This is Part 1 of 2 of my series on Blockchain. Part 2 will be out soon! Defining Blockchain The credit for inventing Blockchain technology is generally given to an anonymous entity (could be one person or a group, nobody knows) named Satoshi Nakamoto and his academic paper titled published in 2008. “Bitcoin: A Peer-to-Peer Electronic Cash System” But there were two other people before Satoshi who spoke about something very similar to Blockchain. These individuals were Stuart Haber and Scott Stornetta and they released a paper titled “ ”. How to timestamp a digital document While this paper doesn’t openly discuss anything related to Blockchain, several concepts, features, and ideas of what makes Blockchain… Blockchain are present in this paper. But what is a Blockchain? If you go to Wikipedia — the universal collection of definition, you will see that it is defined as “ ”. a growing list of records, called blocks, which are linked using cryptography In simple terms, it is a list of blocks, where the blocks are linked to each other in the form of a chain. The next question in your mind should be: What is a Block? A Block in a Blockchain is defined as a record that consists of some data, a pointer called that addresses the block that comes before it, and another pointer called that addresses the block itself. previous hash hash Here is an example of a simple blockchain made of 2 blocks: The first block is called the Once this block is created, it will stay the same for all of eternity. There is no way, any other block can take its place. Like any other block, it will have some data stored in it. But because it is the first block in the chain, and there is obviously no block before it, its previous hash value will be a string of zeros. The block also has a hash value, which is a string of hexadecimal characters. genesis block. The second block will also have some data stored inside it. And it’s previous hash value will be the same as the previous block’s hash value. Apart from that, it will also have a hash value which will the previous hash value of the next block in the chain, and so on. The hashes are what link the blocks to each other. Each block knows its own identity and the identity of the block before it. This method of linking also secures the blockchain from any changes to the data of the block. The hash of a block is created by taking the data stored inside it and the previous hash. So if I was somehow able to change the data of one block, then that block’s hash will also change. But now the next block’s previous hash value will not match with the new hash value of the changed block. And then the blockchain will know that the block has been corrupted, and the blockchain will then become . invalid Hashing The previous few paragraphs describe how hashing connects the block to each other, and how it can also be used to secure the blocks. But what exactly is Hashing? When it comes to human beings, there are a couple of things that can be used to differentiate and identify each of them: DNA Fingerprint And while identical twins share the same DNA, they do not have the same fingerprints. So fingerprints can be considered as the ultimate unique identifier of any individual. Hashing is a blockchain’s version of fingerprints! There are different algorithms that can be used for Hashing, the most popular one is the SHA 256 and it is what is used in most blockchains and cryptocurrencies. SHA stands for Secure Hashing Algorithm and it has many different versions. SHA-2 is a set of cryptographic hash functions that are designed by the National Security Agency (NSA) and contains six hash functions. The “256” part of SHA-256 is used because that’s the number of bits it takes up in memory. The Hash created by this algorithm will be 64 characters long and it will be in hexadecimal format. Hexadecimal stands for 16, so each character of the hash takes up 4 bits (4² = 16, and 16*4 = 64). Hashing can be used on any kind of data, be it money, documents, programs or videos. _SHA-256 produces a 256-bit (32-byte) hash value. The SHA (Secure Hash Algorithm) is one of a number of cryptographic…_www.xorbin.com SHA-256 hash calculator. Online SHA-256 hash generator. Mining Bitcoin The above link takes you to an online hash generating website. Try entering different words in the input area and see what SHA-256 Hash you get. Here are couple that I got: Rajat -> 126e11da02566f50f0f9449586cd9069ba908ce82ebfd69d6c3b9f48f56853a5 rajat -> a2acfac793fcfd3ced6506d76fabfcaea56fcb07d59a173663f003b85465a18f Block ->211d0bb8cf4f5b5202c2a9b7996e483898644aa24714b1e10edd80a54ba4b560 You will notice that both “Rajat” and “rajat”, while being the same word, have completely different hashes due to one of them being capitalized. This complete change of hashes due to slight changes in data is known as the avalanche effect. It doesn’t matter if your use hash on a single letter, a single word, or an entire Harry Potter book, the length of the hash will always be 64 characters. There are a few things you need to keep in mind while working with a hash function: The hash function works one way only. You will not be able to figure out what the original data was using the hash. The hash function should give the same output regardless of time. So if I use hash function on “Rajat” and get some hash, and then a couple days later I do the same thing again, I should get the same hash. Hash function should give the hash quickly. Even the smallest changes in data should completely change the hash. Because the hash will always be 64 bits long, we have a limited number of potential hashes to work with. So chances are that sooner or later, you will get two blocks with the same hash value. But such collision will rarely occur and there are ways to work around them in case they happen. But hackers can also create collisions cases, which leads to further problems in blockchain. You can read more about Secure Hash Algorithms . here Immutability Immutability is one of the most popular features of Blockchain. To be immutable means to remain unchanged. So in terms of Blockchain, once you create a block, no one change make any changes to it. No even the person who created. This is a great way of maintaining trust in Blockchain. In the real world, when you buy something big, like a house, you are actually exchanging a fixed amount of money for a deed that says that the house is yours. But then anyone can write up a deed saying that the house that you just bought, is actually theirs! To prevent such practices, you go to a central authority such as the city council and register your ownership. And now you legally own that house! Similarly, in the blockchain, there needs to be some way to prevent anyone from taking unauthorized ownership of a block or the entire chain. But Blockchain doesn’t have any central authority where users can register their blocks! While you may think of this as a drawback of the blockchain, it is actually an advantage! If blockchain had a central authority that recorded any data about the blocks, then a hacker simply needs to hack into it and can then make any unauthorized changes. Instead, a blockchain is decentralized. This decentralization of systems was one of the main things that people like Satoshi Nakamoto and Vitalik Buterin (the guy behind Ethereum) spoke about. Previously, I spoke about how changing the data on a block will change its hash value. If someone manages to do this, they will have to change the previous hash value of the next block as well, which will then change the hash value of that block as well. The hacker will then have to change the previous hash value of the next hash value, and so on. So in order to change the data of one block, the hacker will have to make changes to the rest of the blocks as well! This will require some serious computing power and hence is considered to be an impossible task for an average hacker. And this how Hashing is used to implement immutability in a Blockchain! Distributed P2P Network A Blockchain network is known as a will have multiple computers (aka nodes) interconnected to each other, with no central authority. Here is an example: distributed Peer to Peer Network Each node will have a copy of the Blockchain. Here you see a small network of 5 computers. But in reality, Blockchain networks can have anywhere from hundreds to thousands of computers connected to each other. And these computers don’t have to be high-end. Any average laptop or desktop can become a node in a blockchain network. While each node has a copy of the blockchain, they cannot actually someone else’s data without proper authorization. When a node adds a block to the end of the blockchain, other nodes are notified by the network about it, and all the copies of the blockchain are updated accordingly. It’s not just hackers that we need to worry about. Sometimes, glitches occur that can lead to different kinds of error in one of the blockchain copies. Due to Blockchain’s immutability, users cannot make changes to the blocks once they are added to the blockchain. How can we then correct the chain if one of its copies shows different data than the rest, without there being any malicious force behind it? The Blockchain network is constantly syncing all the nodes with each other. So when one of the node’s copies of Blockchain gets corrupted, the network will realize that something is wrong with this copy, and the network will replace the corrupted blocks of that chain with the uncorrupted blocks from the other copies. The only way to fool the Blockchain network is by making changes to majority nodes of the network. So if a network has 100 nodes, the hacker will have to change more than 50 nodes, which is still a huge number. Hence the security of a Blockchain network increases as its number of users increases. To be continued… This seems like a good place to pause. Stick around for more posts about Blockchain. In the next post, I will explain about: Mining Concensus Thanks for reading this long post! I hope this post helped you understand Blockchains a little better. If you liked this post, then please do give me a few 👏 and please feel free to comment below. Cheers! This concludes Part 1 of 2 of my series on Blockchain. Part 2 will be out soon!

Understanding The Elusive Blockchain Technology — Part 1

State of Bitcoin (Fall 2018)

This paper is under CC 4.0 license. available on arxiv Authors: (1) Kota Chin, University of Tsukuba, National Institute of Information and Communications Technology Japan; (2) Keita Emura, Kanazawa University, Japan National Institute of Information and Communications Technology Japan; (3) Kazumasa Omote, University of Tsukuba National Institute of Information and Communications Technology Japan. Table of Links Abstract & Introduction Preliminaries Proposed Anonymous Yet Accountable Contract Wallet System Implementation Conclusion & References II. PRELIMINARIES A. Accountable Ring Signatures As a generalization of ring signatures [29] and group signatures [13], Xu and Yung proposed accountable ring signatures [34]. Briefly, as in ring signatures, each user generates their own public key pk and secret key sk. This decentralized structure matches blockchain systems. An opener has a public key opk and a secret key osk. When a user who has (pk,sk) generates a ring signature Σ on a message M, the user selects a set of public keys, which we refer to as ring R, and we assume that pk ∈ R, and selects the opener by indicating opk. We say that (Σ, M) is valid if the signer is a member of R, i.e., there exists pk ∈ R for which the corresponding sk has been used to generate Σ. As in group signatures, the designated opener can trace the signer using osk. Moreover, the opening algorithm produces a proof π proving that Σ is generated by sk corresponding to pk ∈ R. We introduce the syntax defined by Bootle et al. [10] as follows. Definition 1 (Syntax of Accountable Ring Signatures [10]): • Setup(1λ ): The setup algorithm takes the security parameter λ ∈ N as input and outputs the common parameter pp. • OKGen(pp): The opener key generation algorithm takes pp as input and outputs the opener public and secret keys opk and osk, respectively. • UKGen(pp): The user key generation algorithm takes pp as input and outputs the user public verification key pk and user secret signing key sk. • RSign(opk, M, R,sk): The signing algorithm takes opk, a message M to be signed, a ring R, and sk as inputs and outputs a ring signature Σ. Here, R is a set of user public keys and the pk corresponding to sk is assumed to be pk ∈ R. • RVerify(opk, M, R, Σ): The verification algorithm takes opk, M, R, and Σ as inputs and outputs 1 (accept) or 0 (reject). • Open(M, R, Σ, osk): The open algorithm takes as M, R, Σ, and osk as inputs and outputs pk ∈ R of the signer and its proof π or ⊥ otherwise. • Judge(opk, M, R, Σ, pk, π): The judge algorithm takes opk, M, R, Σ, pk, and π as inputs and outputs 0 if RVerify(opk, M, R, Σ) = 0; otherwise, it outputs 1 to indicate that Σ is generated by sk corresponding to pk, and 0 otherwise. We require correctness holds where an honestly generated signature is always valid (the RVerify algorithm outputs 1), and a proof generated by the Open algorithm against the signature and corresponding verification key is always accepted by the Judge algorithm. Bootle et al. defined full unforgeability, anonymity, traceability, and tracing soundness, which are briefly explained as follows. Refer to the literature [10] for details on these security definitions. • Full Unforgeability: It ensures that no adversary A (who may control the opener) can falsely accuse an honest user of creating a ring signature, nor A can forge a ring signature on behalf of an honest ring. • Anonymity: It ensures that no adversary A (who does not have osk) can identify the signer, i.e., a signature does not reveal the identity of the ring member who generated it. • Traceability: It ensures that no adversary A can produce a signature that is valid but untraceable. • Tracing Soundness: It ensures that no adversary A can produce proofs for a signature that are accepted by the Judge algorithm for different verification keys. Some studies have employed accountable ring signatures in blockchain systems [19], [31] due to its decentralized structure. In addition, Qiao et al. [28] removed the opening functionality from group signatures to reduce its centralized structure; however, it still has a centralized structure because a group manager issues signing keys to the group members unlike to (accountable) ring signatures. Linkable ring signatures [8], [23], [24] have been employed to provide a pseudonymity level privacy protection. As mentioned previously, this is insufficient; thus, anonymity level privacy protection is desirable. Delegatable anonymous credentials (DAC) [12] have been employed for eKYC systems [9], [32], where KYC stands for Know-Your-Customer. However, DACs are not applicable in the proposed system because they do not provide tracing functionality. Connolly et al. [14] proposed a revocable and auditable anonymous credential scheme called Protego, and they considered its application to Hyperledger Fabric. Although it might be employed in the proposed system, Connolly et al. only considered permissioned blockchains. Thus, accountable ring signatures are employed in the proposed system. B. Layer 2 Ethereum is widely recognized as providing high security as a smart contract-enabled blockchain. However, in terms of ensuring security and providing a distributed structure, there is room for improvement regarding scalability. Concretely, the number of transactions that can be processed within a certain time period is less than that of other blockchain systems. Thus, transaction fees (gas costs) will increase when many EOAs want to issue transactions. To solve this problem, we can issue a transaction off-chain, and the proof that the transaction is generated correctly, is only stored on the Ethereum blockchain. In this case, the blockchain and off-chain are referred to as Layer 1 (L1) and Layer 2 (L2), respectively. For example, when a Merkle tree is used to generate a hash chain, the proof that the hash chain satisfies the Merkle tree is stored in L1. To reduce the proof size stored in L1, the zk-STARK (zeroknowledge Scalable Transparent ARgument of Knowledge) [6] or zk-SNARK (zero-knowledge Succinct Non-interactive ARguments of Knowledge) [21], [27] are employed. zkSync [3] is an Ethereum L2 network technology that supports zk-SNARK. The goal of L2 technologies to provide the same execution environment of Ethereum (i.e., the EVM: Ethereum Virtual Machine), and zkSync nearly supports the same execution environment of Ethereum, i.e., it is EVMcompatible and can run a smart contract programed by Solidity. Thus, we can utilize Ethereum ecosystem tools, and smart contracts on zkSync are described by Solidity. This means that the proposed system can be used directly when Ethereum supports account abstraction. C. Account Abstraction In the following, we describe account abstraction. A user sends the code of a contract wallet to nodes that support account abstraction, and requests to its deployment. Note that the user does not need to be an issuer of a transaction. After deploying the contract wallet, an issuer sends transaction data to blockchain via nodes. Finally, the contract wallet runs the transaction according to the rule described in the code. We illustrate the flow of transaction issuing when account abstraction is/is not employed in Figure 3 and Figure 4. Here, the issuer (User (EOA)) communicates with nodes, their IP address is known by nodes which break anonymity trivially. Thus, we exclude the nodes in our anonymity requirement.[6] [6] This restriction can be removed if a user (who issued a transaction) prepares a node. However, currently only a test net su

Anonymous, Accountable Contract Wallet System With Account Abstraction: Preliminaries

Quantum ledgers, Blockchains and The Times In early January 2009, the first of the Bitcoin was mined. Hard-coded into the block was the following newspaper headline. block Blockchain “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks. This headline provided a timestamp for the first block of Bitcoin, just like when hostages hold up the day’s newspaper in hostage videos to show they were still alive after a certain date. The Bitcoin blockchain began by using the power of a newspaper to say with certainty, “this event happened this moment in time”. after But this newspaper-inspired technique isn’t enough to completely timestamp an event or transaction. You also need to be able to prove the opposite, i.e. “this event happened this moment in time”. before What’s more, if the event is a financial transaction, or the creation of a digital record, you also need to prove that the underlying data hasn’t changed at any point since the original event occurred ( ). immutability There is no use time-stamping a transaction if you can change the details of the transaction at a later date. Many blockchains are trying to do just this on a grand scale, especially the permissioned corporate ones. That is, blockchains are designed to guarantee the following three properties of a transaction: A transaction occurred after a moment in time, A transaction occurred before a moment in time, The details of the transaction haven’t changed since the transaction occurred (immutability). We’ve just seen how a humble newspaper can provide the first property. If a transaction contains the title of a certain day’s paper, then the transaction must have occurred after that paper was printed. But can a newspaper provide Properties 2 and 3? Quantum Ledgers In November 2018, AWS introduced a new product during the conference called the QLDB (Quantum Ledger Database). It is an attempt to take most of the things people seem to want from a (corporate) blockchain solution, but offer it as a centrally managed database. re:Invent This may seem counter-intuitive when one of the main pillars of blockchain technology is . But the decentralisation of databases (distributed ledgers) isn’t what blockchain pioneers want. They want to decentralise power and trust, and enable data privacy. decentralisation Distributed ledgers are very hard to work with and, in many use-cases, don’t offer much added value over well-thought-out centrally-managed alternatives. Is it possible to decentralise power and trust, without distributing the ledger? In the , they talk about what (of a transaction) means (27:00). Essentially, it boils down to proving that a transaction on the ledger has occurred between two moments in time and is immutable. This is exactly the three properties we listed above. launch video of QLDB verifiability The QLDB video offers an example where a car has been involved in a crime on August 2nd but it was sold from Alice to Bob on either August 1st or August 3rd. The question is: Is the database “immutable enough” to say when the car was really sold? If the transaction had been stored in a traditional database, then the database administrator (who, let’s imagine for this example, is in cahoots with Bob) could’ve simply changed the date column of the transaction from the 1st August to the 3rd August, and help convict Alice of the crime. In an AWS Quantum ledger, this is apparently no longer possible. It is designed so that no transaction can be fiddled with after it is added to the ledger. It works by creating a “hash-chain” of all the transactions in the database (which includes their timestamps). This means, due to , when someone comes along to audit the ledger and find out when the car was sold, they can be sure that no-one, not even those in cahoots with Bob, could have tweaked the database without the change having been written into the hash-chain. the amazing properties of hash functions What more does a corporate blockchain offer? Where this differs from a blockchain, or distributed ledger solution, is that there is still a possibility for the car sales company which controls the quantum ledger to act fraudulently. For if the car sales company really wanted to make a change to the ledger in Bob’s favour, they can create a completely new ledger and new hash-chain out of all the transactions that have occurred on their ledger but with a tweak to Alice and Bob’s transaction. Since the ledger is private, and timestamps are just strings in the database, there is no way for the auditor to know exactly when certain transactions were added to the ledger. (Or even if the ledger he is viewing is genuine at all!) I.e the Quantum ledger satisfies Property 3, the immutability one, but not Properties 1 and 2, the time-stamping ones. A whole chain of transactions claiming to cover many months of car sales could’ve been created before breakfast on the day of the trial. On the other hand, with a blockchain solution, the ledger is distributed and so the transaction timestamps are fixed in time (so long as there is an honest node in the ). Therefore, any such rewinding, rewriting or fraudulent timestamping would be noticed by the other members of the network. network But blockchains are really hard to implement. Is there a way to ensure that the company with the car sales ledger play around with timestamps, but still have a centrally managed ledger? can’t can Back to the newspaper! Here is a solution using once again the humble newspaper. What if… the car sales company takes the final hash of the day from their Quantum ledger and hashes it with The Times’ morning headline. The company then sends it in to The Times to print in the newly created “Daily Hashes” page. Placing such a hash in the Times would satisfy all three properties: The morning’s headline is in the hash, so any transaction that contributed to this hash value must’ve occurred that day’s paper was published. after The hash value appears in the next day’s paper, so any transaction that contributed to this hash value must’ve occurred the hash appeared in the next day’s paper. before Since finding two strings that give the same hash is , once a hash is in the paper, it is impossible to change the data that created the hash, and so any transaction that contributed to that hash value is impossible immutable. The Daily Hashes page could go in the middle of the paper, next to the deepest pages of the sports section. It wouldn’t make for great reading but it could help to effectively audit companies in which we place a lot of trust. In fact, a company called offers such a service, but it is just that: a service. What if it was for banks and other institutions in which we place a lot of trust to release a daily hash of their ledger and have it printed in The Times? Surety compulsory Summary Both Newspapers and blockchains can provide the three key properties listed above. But the paper-based blockchain is so much simpler. No sharding, forking, 51% attacks, Byzantine Generals, tokens, crypto bear markets, gas, secret keys, distributed ledgers, privacy issues etc. just to list a few!

Why The Newspaper Is Mightier Than The Blockchain

Holochain is a git (free and open source distributed version control system) that does not require Proof of Work (PoW) and Proof of Stake (PoS). It is based on the DHT (distributed hash table) protocol utilized by BitTorrent for data lookup and file sharing. The Concept Holochain was conceived and developed as a decentralized progression from . It is designed to embody and support social coherence based on a set of agreements for reliable data and value sharing. Holochain transcends high computational overhead for consensus achievement, which eliminates unnecessary effects. blockchain Pareto Principle Holochain is a git (free and open source distributed version control system) that does not require . It is based on the (distributed hash table) protocol utilized by for data lookup and file sharing. However, holochain implementation is also , (horizontally partitioned), and centered around a . Each node operates its own source chain that can be shared to a mass-distributed . Proof of Work (PoW) and Proof of Stake (PoS) DHT sloppy BitTorrent peer validating sharded monotonic distributed hash table git repository Subsystemic Architecture Holochain is composed of three primary sub-systems: Application (Nucleus) Connected to a web browser for user interface, the nucleus unifies the entire holochain ecosystem. It reads and writes on the local source hash chain while inputting or extracting data via the shared DHT confirmed by common nodal rules and projections. Local Chain In the holochain ecosystem, each participant owns a local chain for item signing prior to shared DHT publication. Multi-party interactions (e.g., currency transfer between two people) are signed by each participant, committed to their respective chains, and mutually shared to the DHT. Shared Storage (Validating DHT) In holochain DHT systems, data content is addressed via cryptographic hash, so unaltered data reception is confirmed via self-hashing. When validating DHT, the provenance of each data bit is confirmed; thus validating author signatures and local chain commitments. Holochain allows meta-data to join DHT data for information publication about a person or node (transactions, top of hash chain) as well as a data element (tags, comments, ratings). Within each subsystem, there exist two holochain participation modalities- and : chain author DHT node – Your chain is a signed, sequential record of the data you create and share on the holochain. Depending on the holochain’s validation rules, this data may be immutable and non-repudiable. Your local chain/data storage pattern is as follows: Local chain authorship Validates your new data Stores the data in a new chain entry Signs the data to your chain Indexes the content Shares the data to the DHT Responds to validation requests from DHT nodes – Your node receives a request from another node to publish DHT data. It validates signatures, chain links, and other application-specific data of the publishing source chain. DHT node validation and publication Each modality may be run in a separate container, which communicates via network interface. Holochain is powered by , which quantifies blockchain security and information quality within shared information system designs and processes: holographic data 'Holochain’s core takes an agent-centric view of data, with user autonomy built directly into its architecture and protocols. Since data is really about remembering our lived and shared experiences (warm data), and governance is about recognizing and evolving our mission and processes through those experiences, distributing the storage and processing of that data fundamentally changes how we coordinate and interact with each other. - Collaborative Governance Technologies (Originally published ) here

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