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Blockchain Consensus Ppt

World Decentralized Ai On Blockchain With Cognitive Mining And Open Markets For Data And Algorithmspandoraboxchain

World Decentralized Ai On Blockchain With Cognitive Mining And Open Markets For Data And Algorithmspandoraboxchain

#AI & #Blockchain expert, scientist. Founder & visionary at @PandoraBoxchain project World decentralized AI on blockchain with cognitive mining and open markets for data and algorithms PandoraBoxchain The industry of artificial intelligence (machine learning, ML) and big data is at the very core of the 4th Industrial revolution. Today, there exist no decentralized or even centralized open markets for each of the components required for machine learning: big data, ML models and computing power. Our mission is to decentralize and disrupt the whole ML industry by creating open market inclusive for all key players, which will stimulate synergy and speed up development of artificial intelligence. In other words, Pandora aims to create world decentralized artificial intelligence the same way Bitcoin has created world decentralized payments and Ethereum world decentralized computer. According to Forbes , big data market was estimated at $122 billions in 2015 and it will grow to more than $187 billions till 2019. Pandora can speed up its growth. Pandora targets to capture most of the market with its disruptive new way to compute ML models, which could bring total Pandora Network capitalization to tens of billions and more in term of 58 years. Our core strategy to capture the market is to give its players the ability to do things that they cannot do today: sell their computing power to AI tasks, sell their ML models to a broad community, monetize AI research, monetize datasets on an open market with fair price, easily find and acquire datasets required for training and computing ML models for business and research tasks. Our team has already self-funded the development of technological description and economic model for the Pandora Network and Proof of Cognitive Work algorithm, Continue reading >>

The Blockchain Explained To Web Developers, Part 1: The Theory

The Blockchain Explained To Web Developers, Part 1: The Theory

The Blockchain Explained to Web Developers, Part 1: The Theory The blockchain is the new hot technology. If you haven't heard about it, you probably know Bitcoin. Well, the blockchain is the underlying technology that powers Bitcoin. Experts say the blockchain will cause a revolution similar to what Internet provoked. But what is it really, and how can it be used to build apps today? This post is the first in a series of three, explaining the blockchain phenomenon to web developers. We'll discuss the theory, show actual code, and share our learnings, based on a real world project. To begin, let's try to understand what blockchains really are. Although the blockchain was created to support Bitcoin , the blockchain concept can be defined regardless of the Bitcoin ecosystem. The literature usually defines a blockchain as follows: A blockchain is a ledger of facts, replicated across several computers assembled in a peer-to-peer network. Facts can be anything from monetary transactions to content signature. Members of the network are anonymous individuals called nodes. All communication inside the network takes advantage of cryptography to securely identify the sender and the receiver. When a node wants to add a fact to the ledger, a consensus forms in the network to determine where this fact should appear in the ledger; this consensus is called a block. I don't know about you, but after reading these definitions, I still had troubles figuring out what this is all about. Let's get a bit deeper. Decentralized peer-to-peer networks aren't new. Napster and BitTorrent are P2P networks. Instead of exchanging movies, members of the blockchain network exchange facts. Then what's the real deal about blockchains? P2P networks, like other distributed systems, have to solve a very dif Continue reading >>

A Primer On Iota (with Presentation)

A Primer On Iota (with Presentation)

I recently gave an introductory presentation to IOTA at the IoT and Blockchain meetup in Berlin. Since this meetup was recorded (and the video will be available on Youtube soon), I thought I would write up a quick blog post that accompanies the presentation so that other people can read through it and have an overview of what IOTA is, where we come from and where were going. If you want to hold a presentation about IOTA at a local meetup, feel free to use the content below, or even reach out to us so we can provide further assistance. This blog post will be a bit more comprehensive (expect a ~15min read), but its clearly divided into sections so you can just skip the ones which are not relevant to you. Heres the presentation: IoT and Blockchain: A relationship that makessense? The exploration of Blockchain-related use case has been actively pursued by pretty much everyone in this space (corporates, startups, researchers, individuals) over the last 4 years. One of the areas that most excites us and many others is the Internet of Things. Not only has IoT a tremendous potential since its going to be everywhere (after all, its an ubiquitous computing and sensor platform), but it also has a whole range of problems where distributed ledgers could be the solution. Well write an in-depth blog post on Why IoT Needs a Ledger, but the obvious reasons are: M2M Payments, Security of Things (including identity) and automated execution of processes. The simple reality when it comes to Blockchain + IoT (or Blockchain and anything else), is that were simply not there yet. The technological limitations are apparent to everyone (including consultants) at this point. The two major problems that I want to elaborate on in this post are scalability and transaction fees. In Bitcoin were alrea Continue reading >>

Decentralized Objective Consensus Without Proof-of-work

Decentralized Objective Consensus Without Proof-of-work

Decentralized Objective Consensus without Proof-of-Work Decentralization and objective consensus are two of the main challenges faced by todays cryptocurrencies. While the lack of objectivity is commonly attributed to Proof-of-Stake blockchains, the actual degree of decentralization is questionable in any existing consensus algorithm whether based on financial stake or computational resources. We will analyse both difficulties and present a novel blockchain model that offers objective consensus along with a strong tendency of decentralization. Although Bitcoin was designed in an attempt to decentralize control over the underlying currency, serious concerns have been raised whether Proof-of-Work (PoW) as its core mechanism can live up to this aim. Several factors indeed compromise Bitcoins main design goal: Profitability of mining significantly depends on electricity costs and thus on the location of the mining equipment. The unequal distribution of resources and economies of scale impacts on the consensus and gets reinforced by the mining rewards. Current block hash difficulty makes it infeasible for private users to mine unless they take part in mining pools (which again leads to centralization). Unfortunately, PoWs main competitor, Proof-of-Stake (PoS), suffers from similar, even worse problems. It pays interests to stake holders and centralizes control in proportion to stake (coin ownership), which is an unevenly distributed, finite resource. As a result, numerous vulnerabilites impair the security of PoS coins. Attacking the currency is a one-time cost of stake that sustains forever, whereas for PoW the attacker must continue to expend resources on mining to maintain an attack. One might even profit from attacking the coin by shorting it while never needing to sell Continue reading >>

The Authoritative Guide To Blockchain Development

The Authoritative Guide To Blockchain Development

Entrepreneur. @Airbnb, @earndotcom alum. Instructor @Outco. Writer. Effective Altruist. Blockchainist. Former poker pro. The authoritative guide to blockchain development Cryptocurrencies, ICOs, magic internet money its all so damn exciting, and you, the eager developer, want to get in on the madness. Where do you start? Im glad youre excited about this space. I am too. But youll probably find its unclear where to begin. Blockchain is moving at breakneck speed, but theres no clear onramp to learning this stuff. Since I left Airbnb to work full-time on blockchain, many people have reached out to me asking how to get into the blockchain space full-time. Consider this my authoritative (and inevitably incomplete) guide on how to get into blockchain engineering. Why should you learn blockchain development? Why should you learn blockchain development? Before I answer that question, let me first note: blockchain is a massively overvalued space right now. These prices are unsustainable, and a crash is definitely coming. This has all happened before, and will probably happen again. But if you work long-term in this space, youll learn to shrug off prices. In the words of Emin Gun Sirer prices are the least interesting part of cryptocurrencies. These are massively important technologies, and they are going to irrevocably change the world. If youre unsure, I cant tell you whether or not you should jump in. But I can tell you five reasons that convinced me to take the leap: Bitcoin was invented 10 years ago, but the rate of innovation has only reached a fever pitch in the last couple of years, especially with the launch of Ethereum in 2015. Most of the new companies and ideas in this space have been built on top of Ethereum, which is still very immature. Even if you start now, you Continue reading >>

Iota Consensus | Untangled World

Iota Consensus | Untangled World

PowerPoint slides about IOTA transactions, validation and consensus In contrast to blockchain technologies, IOTA does not build a clocked sequence of static blocks, each one containing a number of transactions. Instead, every single transaction can be attached to a by itself and in parallel to other transactions. The following slides will describe how adding transactions, validation and consensus works in IOTA. The graph above shows a sample of a tangle which will be used in the subsequent slides to walk through some examples. In this and subsequent examples, green transactions are already confirmed by the network with high certainty (Youll find out why later. Spoiler: As with blockchain, it is about probabilities and there never going to be 100% carved-in-stone certainty), while the blue ones are only partially confirmed (with lower certainty). The grey (and later yellow) boxes represent tips without any validation. Red transactions, on the later slides, are conflicting or invalid ones. In the graph above transaction is an example of an unusual transaction. It is referencing transaction h and l. Since transaction h is already referenced by transaction l, would select one tip (l) and one transaction that is obviously no tip at that time anymore (h). Such behavior seems to be no issue and tolerated by the network, currently. In order to add a new transaction to the tangle, a user has to randomly pick two tangle tips (yet unconfirmed transactions) and validate them. Validating means that the user is checking the tips signature, its PoW (little Proof of Work as spam protection) and makes sure that the tip is not in conflict with any of the previous (directly or indirectly referenced) transactions. If the chosen tips are legit, the user adds its new transaction by referenc Continue reading >>

A Simple Guide To What Bitcoin Forks Are And Why They Happen

A Simple Guide To What Bitcoin Forks Are And Why They Happen

A Simple Guide to What Bitcoin Forks Are and Why They Happen Right now people keep hearing about the pending fork scheduled for on or around November 16 . Because software forks and blockchain splits can be a confusing subject, we want to explain just what a fork is and what it means for all the network participants involved. Also read: Preparing for the Bitcoin Hard Forks: A Step-by-Step Walkthrough If you are just getting involved in cryptocurrencies, and youve done a little research, you might have read about the great scaling debate and the topic of bitcoin forks recently. Forks represent changes to the bitcoin protocol that make previous rules valid or invalid. Cryptocurrency forks are merely protocol upgrades, and there are two types of blockchain forks that bitcoin enthusiasts refer to: a soft fork and a hard fork. Both types of forks can be radical changes to the underlying protocol, but they have two key differences. A soft fork is a rule change that is backward compatible; which means the new rules can still be interoperable with the legacy protocol. In contrast to this method, a hard fork enables a rule change to the software, but it does not have backward compatibility. This means a hard fork is a permanent split from the legacy rule-set, or version, of the blockchain before the fork occurred. The bitcoin blockchain has forked several times over the course of the technologys existence. Bitcoin forked back in March of 2013 , and a few months later in August 2013 . Back then the ethereum creator, Vitalik Buterin, wrote a very vivid description of the March 2013 fork event, stating: Starting from block 225430, the blockchain literally split into two, with one half of the network adding blocks to one version of the chain, and the other half adding to the other, Continue reading >>

Blockchain Introduction

Blockchain Introduction

A lot of people are talking about blockchain these days.Theyre talking about blockchain as the next big thing after mainframes, computers, the internet and social networking.This introduction is the first part in a series of blockchain posts. First of all, Bitcoin and blockchain are two different things.People tend to use both words by each other in three different contexts: 2. Protocol and client for executing transactions 3. The blockchain which stores all Bitcoin transactions So when talking about Bitcoin or blockchain with people, its important to mind this terminology.Heres a funny quote I read in the book Blockchain: A Blueprint for a New Economy ,which describes this ambiguity very well: It's as if PayPal called the internet PayPal on which the PayPal protocol was run to transfer PayPal currency. In January 2009, the Bitcoin network came into existence.Bitcoin isnt the first attempt to digital currency, but its the first one that uses a peer-to-peer network to create a platform for executing transactions without depending on central authorities who validates them. You should see Bitcoin as the first platform that implemented blockchain technology. So forget about Bitcoin now.Thats not what this post is about.People say blockchain is as important as the introduction of the internet. The internet is a worldwide network to share information with one another, but it is far less suitable for transferring value.If you send someone a file, it is always a copy of your file, which means you and the receiver are both in possession of the file.As we already stated, that is ideal for sharing information, but not applicable for money, certificate of ownership, and so forth.And the latter is exactly what blockchain enables: digitalizing and transferring such values. Lets take Continue reading >>

On Settlement Finality

On Settlement Finality

Special thanks to Tim Swanson for reviewing, and for further discussions on the arguments in his original paper on settlement finality. Recently one of the major disputes in ongoing debate between public blockchain and permissioned blockchain proponents is the issue of settlement finality. One of the simple properties that a centralized system at least appears to have is a notion of finality: once an operation is completed, that operation is completed for good, and there is no way that the system can ever go back and revert that operation. Decentralized systems, depending on the specific nature of their design, may provide that property, or they may provide it probabilistically, within certain economic bounds, or not at all, and of course public and permissioned blockchains perform very differently in this regard. This concept of finality is particularly important in the financial industry, where institutions need to maximally quickly have certainty over whether or not the certain assets are, in a legal sense, theirs, and if their assets are deemed to be theirs, then it should not be possible for a random blockchain glitch to suddenly decide that the operation that made those assets theirs is now reverted and so their ownership claim over those assets is lost. In one of his recent articles , Tim Swanson argues: Entrepreneurs, investors and enthusiasts claim that public blockchains are an acceptable settlement mechanism and layer for financial instruments. But public blockchains by design cannot definitively guarantee settlement finality, and as a result, they are currently not a reliable option for the clearing and settling of financial instruments. Is this true? Are public blockchains completely incapable of any notion of settlement finality, is it the case, as some p Continue reading >>

Blockchain Technology & The Future Of Transactions

Blockchain Technology & The Future Of Transactions

Blockchain Technology & The Future of Transactions The Blockchain and the Future of Transactions Blockchain technology is transformative, and several commentators expect that it will have a massive economic impact similar to the one the Internet has had in the past few decades. Since blockchain technology is at the heart of Bitcoin and other virtual currencies, it can at the very least be expected to power even more consequential mediums of exchange in the future. However, virtual currencies are merely the first use case of blockchain technology. The blockchain is an open and distributed ledger. It uses an append-only data structure, meaning new transactions and data can be added on to a blockchain, but past data cannot be erased. This results in a verifiable and permanent record of data and transactions between two or more parties. This has the potential to increase transparency and accountability, and positively enhance our social and economic systems. A blockchain is built by running software and linking several nodes together. A blockchain is not one global entity there are several blockchains. Imagine a network of connected computers inside a highly secure office, which are connected to each other, but not to the internet. A blockchain is similar to this: it can have numerous connected nodes, but remain totally separate and unique from other blockchains. Institutions and banks can build internal blockchains with their own features for various organizational purposes. A consensus mechanism and a reward system are required to maintain the integrity and functionality of a blockchain. In the Bitcoin blockchain, consensus is achieved by mining, and the reward system is a protocol awarding a miner some amount of Bitcoin upon successfully mining a block. Mining is undert Continue reading >>

The Stellar Consensus Protocol: Decentralization Explained

The Stellar Consensus Protocol: Decentralization Explained

The Stellar Consensus Protocol: Decentralization Explained Click here to share this article on LinkedIn First, I wanted to address the misconception that Stellar and Ripple do the same things. Im excited to see the Stellar community growing. The new interest in Stellar is amazing but the code is completely different. Stellar is a decentralized protocol. Ripple is not. Federated Byzantine Agreement (FBA) is a model for consensus using nodes, quorum slices and quorums. Quorum slices are sets of nodes used for reaching an agreement. An agreement that can never change in the future is a quorum. How does FBA relate to Stellar? The Stellar Consensus Protocol (SCP) is an evolution of FBA. Previous FBA protocols had a determined membership list. The main point to remember is that SCP uses open membership. Anyone can join. In SCP, an important concept is that nodes have the ability to choose trust. Sounds simple enough but how does this work? I spent weeks trying to figure this out. I reached out to David Mazires, creator of SCP, and the answer was simple. Trust is setup in a nodes config file. A eureka moment to say the least. Not all nodes will have the same config file so slices and quorums will form dynamically. The ability to choose trust decentralizes the network. The image below is a screenshot taken from David Mazires SCP talk at Google. You can view that talk here and a link is available at the end of this post. The image shows how nodes have the ability to choose whom they trust. In this example, nodes 7 and 8 are setup to not trust banks. Thus, an agreement with the banks requires another quorum slice the nodes trust. When an agreement forms, a quorum is created. For a detailed explanation, I highly recommend watching the full presentation. Continue reading >>

What Is Blockchain And How Does It Work?

What Is Blockchain And How Does It Work?

Bitcoin exploded on to the worlds stage in 2012 as a currency backed by everyone and controlled by no one. But what exactly makes it work from a technology standpoint? Use commas to separate multiple email addresses How to minimize the risks of phishing scams Blockchain technology backs up Bitcoin to this day, but theres been a recent groundswell of interest from a variety of industries in making distributed ledger technology work. A blockchain is the structure of data that represents a financial ledger entry, or a record of a transaction. Each transaction is digitally signed to ensure its authenticity and that no one tampers with it, so the ledger itself and the existing transactions within it are assumed to be of high integrity. The real magic comes, however, from these digital ledger entries being distributed among a deployment or infrastructure. These additional nodes and layers in the infrastructure serve the purpose of providing a consensus about the state of a transaction at any given second; they all have copies of the existing authenticated ledger distributed amongst them. When a new transaction or an edit to an existing transaction comes in, generally a majority of the nodes within a blockchain implementation must execute some algorithms and essentially evaluate and verify the history of the individual blockchain block that is proposed, and come to a consensus that the history and signature is valid, then the new transaction is accepted into the ledger and a new block is added to the chain of transactions. If a majority of nodes do not concede to the addition or modification of the ledger entry, then it is denied and not added to the chain. This distributed consensus model is what allows blockchain to run as a distributed ledger without the need for some cent Continue reading >>

Blockchain At Berkeley

Blockchain At Berkeley

Introduction to Cryptocurrency DeCal Fall 2016 The Cryptocurrency Decal is a comprehensive survey of relevant topics in cryptocurrency and the wider blockchain space. From a technological standpoint, we start with the basics of cryptography and economics, establish a solid fundamental understanding of Bitcoin by building it from the bottom up, and from there, explore the myriad of ideas and technologies relating to blockchain technology. On the non-technical side, we start with the history of digital currency, then look at the laws, organizations, trends, and communities behind it to build a complete picture of the ecosystem surrounding blockchain technology. Many people find it difficult to understand cryptocurrency because cryptocurrencies require the coordination of many components for it to function, and it's hard to see the full picture until all the individual components are fully understood. Furthermore, since the field is very technical and relatively new, cryptocurrency-related discussion by nature is full of jargon. Therefore, it is easy to get lost trying to follow nearly any conversation on cryptocurrency if you have not built up the right background. Therefore, the goal of this course is to surmount the steep learning curve of cryptocurrency. By the end of this course you will understand how cryptocurrencies work and the ideas, technologies, and organizations sprouting from it. Day and Time: Section 1: Wed 4-5pm, Section 2: Wed 7-8pm Course Staff: Max Fang, Philip Hayes, Sunny Aggarwal Class Format: 1 hour a week. 30-45 minutes of the class will be lecture, and the rest will be dedicated to questions, discussion, and announcements. Communication: All of the necessary communication for this course will be done through email. Weekly homework prompts will be Continue reading >>

Blockchain Explained In Plain English

Blockchain Explained In Plain English

Understanding how blockchain works and identifying myths about its powers are the first steps to developing blockchain technologies After spending two years researching blockchain and the evolution of advanced ledger technologies, I still find a great spectrum of understanding across my clients and business at large about blockchain. While ledger superpowers like Hyperledger, IBM, Microsoft and R3 are emerging, there remains a long tail of startups trying to innovate on the first generation public blockchains. Most of the best-selling blockchain books confine themselves to Bitcoin, and extrapolate its apparent magic into a dizzying array of imagined use cases. And I'm continuously surprised to find people who are only just hearing about blockchain now. It can seem that everyone is talking about blockchain and ledger technologies, but the truth is most people are not yet up to speed. No one should be shy to ask what blockchain is really all about. Many blockchain primers and infographics dive into the cryptography, trying to explain to lay people how "consensus algorithms", "hash functions" and digital signatures all work. In their enthusiasm, they can speed past the fundamental question of what blockchain was really designed to do. I've long been worried about a lack of critical thinking around blockchain and the activity it's inspired. If you want to develop blockchain applications you only need to know what blockchain does, and not how it does it. So I've written a report that explains how the blockchain works . It examines the founding principles of blockchain, describes its properties, and dispels common myths about its powers. The explanation below is an abridged excerpt from the report. Blockchain is an algorithm and distributed data structure for managing electr Continue reading >>

Quorum | J.p. Morgan

Quorum | J.p. Morgan

J.P. Morgan has long used open source software and we are excited to have this opportunity to give back to the community. Quorum is a collaborative effort and we look forward to partnering with technologists around the world to advance the state of the art for distributed ledger technology. J.P. Morgan Corporate and Investment Bank Quorum can privatise transaction blocks and restrict their delivery without breaking the blockchain; this ensures your data is only routed to its intended recipient and no one else. Quorum also allows us to support upgradable contracts, and in this space, I believe JP Morgan's technology is superior. -John Olesky, Managing Director, Co-head Loan Platforms, [International Business Times: How IHS Markit's syndicated loans blockchain arrived at cash, Ian Allison, 19 May 2017] What experts and industry leaders say about QuorumTM One of the key features we need for a blockchain to be used in enterprise settings is privacy. Incorporating zero knowledge cryptography to Quorum is a great step forward, since it makes Ethereum a lot more suitable to build enterprise grade solutions. -Julio Faura, Chair of the Enterprise Ethereum Alliance [International Business Times: Quorum: J.P. Morgan's Ethereum fork could eat your lunch Staff Reporter, 9 June 2017] AMISs integration of PBFT into J.P. Morgans Quorum using geths new pluggable consensus interface serves as a great example of how EEA is enabling collaboration across enterprise and public Ethereum communities. -Alex Batlin, global head of emerging business & technology and global blockchain lead at BNY Mellon [ Press Release: Enterprise Ethereum Alliance Announces Support for Blockchain Consensus Algorithm Integration, Enterprise Ethereum Alliance, 7 July 2017 ] Open source, free to use, and enterprise Continue reading >>

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