Implication of Blockchain on Traditional Business

We would like to explore a blockchain use case, that gets into how some of these
components come together in a project. In the last decade much of the internet has moved
onto "cloud storage" which has powered the new web. Most of the applications we use on a
daily basis have our data stored in server farms owned by Amazon, Google, or Microsoft. In
this new era of decentralized applications, developers are turning to decentralized storage
as a way to avoid censorship, server outages, and hacks.

Following the trend set by earlier iterations, the idea of Web 3.0 posits a change in the way
content and programs interact. If central intermediaries like Facebook and Google are cut
out of the picture, many of the problems we have today will change in scope.
Instead, content addressing and related techniques will allow content and programs to link
to one another directly and in a more robust fashion. Blockchain technologies like the digital
currency Bitcoin and the smart contract platform Ethereum use unbreakable public key
cryptography to secure the connection between programs and protect data.

This is an alternative to the centrally issued SSL (Secure Sockets Layer) Certificates used
today. Because there is no central intermediary routing traffic, connections can dynamically
find the most efficient pathway through the Internet and route around congestion or
damage.

These systems were designed for financial transactions though. They are not suited to
storing and relaying the volume of information required to replace a central server.
BitTorrent is a popular solution that has excellent storage and scaling characteristics.
However, navigating the Distributed Hash Table used to index content on the network can
take seconds. This kind of latency (wait time) is fine for large file transfers but no good for
datacenter use cases.

Described by Viktor Tron as “the lego kit for the third web,” IPFS is a new system for storing
data on a large number of computers. It is transport layer agnostic, meaning that it can
communicate through transport layers like transmission control protocol (TCP), uTP, UDT,
QUIC, TOR, and even Bluetooth)

Instead of a central server, a peer to peer network is used to establish connections. Public
key cryptography is built into the node addressing system and content addressing is used to
index content. Both node and content addresses are stored in a decentralized naming
system called InterPlanetary Naming System (IPNS).

Node addressing and connection security

• Nodes in the peer to peer network each hold private keys and release public keys, just
like in Bitcoin or Ethereum.

• Node addresses are derived through hashing their public keys. Allowing connection
verification through message signing.

• Their public keys can be used to encrypt data before it is transferred, preventing
interception and theft.

Solutions to the security issues of today’s web are built into this addressing system. There is
no need for a trusted central certificate issuer to provide connection verification tools and all
connections can easily be encrypted by default. No more SSL.