MRP Databases

BLOCK
CHAIN

Zulkifli (302212)
Spv: dr inż. Robert Wojtachnik 1
Why should we use
BC and How to
optimize it?

Block Chain Technology

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ABOUT
The distributed shared ledger technology as a permanent
record of transactions that no-one can go back and
change [1].
The system provided the first solution to the problem of
establishing trust in an unsecure environment without
relying on a third-party. For use as a distributed ledger, a
block chain is typically managed by a peer-to-peer
network are particularly appealing to finacial services
markets are that is distributed, decentralized, transparent,
time-stamped, persistent and verifiable [2].
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HISTORY
▪ Being well-known as Bitcoin –A peer-to-peer Electronic
Cash System on the 31st October 2008 by Satoshi Nakamoto
was circulated among an email list of cryptographers[3].
▪ Actually, in 1991 by Stuart Haber and W. Scott Stornetta
were built a crypthographically works secured chain of
blocks. Where document timestamps could not be tampered
with.
▪ Then, they with Bayer incorporated Merkle Tress to the
design, which improved its efficiency by allowing several
document certificates to be collected in one block. It was in
1992[4].

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OPERATION
How it works? Does the systems could not be
tampered?
▪ The basic idea behind the Block Chain Technology (BCT) is that it
allows actors in a system (called nodes) to transact digital assets using
P2P network that stores these transactions is distributed way across
the network [5].
▪ If the nodes agree on its legitimacy, they confirm the transaction and
this transaction is laid down in a block. Then the new blok is added to
the previous chain of blocks and as such locked. So, the latest block
maintains a shared, agreed-upon view of the current state of the BC
[6].
▪ Each block includes the hash cash of the prior block. But, it doesn’t
mean that the BC is unalterable.
▪ BC could be tampered if we couldn’t control the parties that set up it. 5
From the hash-based linking of blocks.
 Authentication
Process that ensures and confirms a user’s identity. Begins when user
tries to access information. The Public Key Infrastucture (PKI)
authentication method uses digital certificates to prove a user’s
identity.
TECHNOLOGY
STATUS
Authorization
A security of mechanism used to determine user/client previleges or
A lot of research to develop BC for more safety access levels related to system resources, including computer
(enhanced security), reduced costs and increased data programs, files, services, data and appllication features
transfer speed.

Accounting
The record-keeping and tracking of user activities on a computer
network including planning for expected capacity, performing user
trend analysis, record bills, accomplishing audits and allocating
costs.

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DESIGN RULES
Nodes Actors in a system

Blocks Nodes decision for the transaction

Ledger Storage of all transactions

Chain Locking and combining the new block

with previous one

Mining Creating the new block

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 POTENTIAL BENEFITS AND PROMISES
Strategic
▪ Transparancy (history of transctions remains visible and
every nodes has complete overview of transactions);
▪ Avoiding fraud and manipulation (information is stored in
multiple ledgers that are distributed);
▪ Reducing corruption (storage in distributed ledgers allows
for preventing corruption).
Blockchain in government, 2017.
This technology doesn’t have central authority
and it’s extremely efficient and scalable.
Reliability and integrity are provided by this
technology.
Organizational
▪ Increased trust (Trust in in process by increased control due to
immutable recordkeeping nd by verification of the data by
multiple nodes);
▪ Transparancy and auditability (Being able to track transaction
history and create an audit trail);
▪ Increse predictive capability (as history can be traced back, this
availibility of the historic information increased the predictive
capability);
▪ Increased control (by needing consensus to add transactions);
▪ Clear ownerships (need clearly defined and how information can
be changed)
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 POTENTIAL BENEFITS AND PROMISES
Economical
▪ Reduced costs (reduced as no human involved is needed);
▪ Increase resiliance to spam and DDOS attacks (higher
level of resilience and security reduces the costs of
measure to prevent attacks)
But, the development, execution, maintenance
and adaption of this technology need to be
guided.
Informational
▪ Data integrity and higher data quality;
▪ Reducing human errors (automatic transactions and controls);
▪ Access to information;
▪ Privacy (users can be anonymous by providing encryption keys);
▪ Reliability (information is stored at multiple place, and only
information changed when all relevant parties agrees).
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 POTENTIAL BENEFITS AND PROMISES

Policy-makers should play a prominent role to ensure

that public values and social needs are fulfilled and
taken into account in the design of BC architectures
and applications.

Technological
▪ Resilience (resilient to malicious behaviour);
▪ Secuity (Data is stored in multiple databases and using
encryption manipulation is more difficult and hacking
them all is less likely);
▪ Persistency and irreversibility (immutable) (Once data has
been written to a BC it is hard to change or delete it
without noticing);
▪ Reduced energy consumption (energy consumption of the
network is reduced by increased efficiency and
transaction mechanisms).

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 DLT in Modern
Industry
We always overstimate the change that will
occur in the next two years and
underestimate the change that will occur in
the next ten. Don’t be yourself be lulled
into inaction –Bill Gates

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BUSINESS MODEL
There’s no such thing as BCT comes in many different forms, with different
properties.

1 2
Private or Public Private or Public open
closed BCs BCs
Termed as a private/public permisioned Termed as a permisionless Blockchain.
Blockchain.

Whether a ledger is public or private determines who has access to

copies of the ledger, whereas the attribute of permissioned versus
permisionless determines who maintains the ledger.

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 Block Chain Technology Design Space
Public
▪ Permissioned: No restricted data access or transactions.
Only a restricted set of nodes can participate in the
consensus mechanism.
▪ Permissionless: No restriction on access, transaction
(data wiring) or validation.
Many researchers are developing this
technology because they are understand it will
be powerful technology in the future.
Private
▪ Permissioned: Restricted access, data wiring and validation.
Only the owner determines who can participate.
▪ Permissionless: Restriction on access and who can transact. No
restriction on participation in the consensus mechanism.
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And the BC winner is

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 Supply-Chain
Communications & Proof-
of-Provenance

What’s BC nowadays? Will enable a real-time,

validated ledger providing
visibility of the location,
condition and owner of an
asset, which should cut fraud
costs and streamline order
Cloud Storage management.
Proactively provide digitally
Simply using excess hard permanent, audit-able records
Smart Contracts drive space user cloud that show stakeholders the
store that traditional cloud state of the product at each
Are self-automated 300 times over. value-added step.
computer programs that
can carry out the terms of
any contract.

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 Paying Employees

Could be used as an
application to
compensate employees
because this technology
What’s BC has it’s roots in

nowadays?
cryptocurrency.

Electronic Voting

Delegated Proof of
Stake (DPOS) is the
fastest, most efficient,
most decentralized and
most flexible consensus
model available

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FUTURE
Global Blockchain Survey by Deloitte 2018

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RESULT
Global Blockchain Survey by Deloitte 2018

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 SUMMARY
Some recommendation for better future with BCT

▪ In BC both software and algorithms need to be audited to ensure its

proper functioning and the compliance with legislation should be
analyzed and improve the quality;
▪ Requires research into the changes in the data stewardship and
accountability role of company.

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REFERENCES
▪ Olnes., Ubach., & Janssen. 2017. Benefits and Implications of Distributed Ledger Technology for Information Sharing. Elsevier,
Government Information Quarterly (356-363).
▪ Aztori, M. 2015. Blockchain technology and decentralized government: Is the state still necessary? Retrieved from
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2709713
▪ Buterin. 2014. Ethereum White Paper: A Next-Generation Smart Contract and Decentralized Application Platform. Retrieved from
https://weusecoins.com/aasets/pdf/library/Ethereum_white_paper-a-
next_generation_smart_contract_and_decentralized_application_platform-vitalik-buterin.pdf
▪ Cai,Y., & Zhu, D. 2016. Fraud Detection for Online Business: A Perspective from Blockchain Technology. Financial Innovatio, 2(1),
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▪ Nakamoto. 2008. Bitcoin: A-peer-to-peer Electronic Cash System. Consulted, 1(2012), 8
▪ Zyskind & Nathan. 2015. Decentralizing Privacy. Using Blochchain to Protect Personal Data. IEEE Security and Provacy
Workshops (SPW2015) (pp. 180-184)
▪ David G Birch. 2018. Ambient Accountability: Shared Ledger Technology and radical Transparancy for Next Generation Digital
Finance Services. Elsevire, Handbook of Blockchain, Digital Finance and Inclusion Vol. 1
▪ Joseph, Woodside. 2017. Blockchain Technology Adoption Status and Strategies. Journal of International Technology and
Information Management Vol 26 Issue 2
▪ Aviva Rutkin. 2016. Blockchain Aids Solar Sales. Technology Newspaper.
▪ Deloitte. 2018. Breaking Blockchain Open. Blockchain Survey. Retrieved 24.10.2018 10.02 ECT
▪ Bloomberg Intelligence. 2018. Blockchain is Coming Everywhere, Ready or Not. Retrieved 20.10.2018 08.15 ECT
▪ https://blockgeeks.com/guides/blockchain-applications-real-world/ Retrieved 24.10.2018 10.15 ECT 20
 MRP Databases

THANK
YOU!
Warsaw University of
Technology
Phone: Email:
+48 796142812 zulkifli@onet.pl

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THANK YOU!
APPLICATIONS
Some Applications were combined with AI

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