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The End of Data Silos: Interoperability via Cryptocurrencies

749c111168bcee4d556ac780537ed9e6?s=47 Neha
November 03, 2016

The End of Data Silos: Interoperability via Cryptocurrencies

We're stuck in a world of data silos: my photos are spread across dozens of apps and most services try to capture my data instead of working together. Bitcoin and the blockchain's novel form of consensus might inspire us to think about new ways of running databases in a more decentralized manner. With these systems, we're pushed to think about issues like interoperability, transparency, and open access when we start to design our applications, making it easier to work on data across trust domains.

From codemesh.io 2016 in London

749c111168bcee4d556ac780537ed9e6?s=128

Neha

November 03, 2016
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  1. The End of Data Silos: Interoperability via Cryptocurrencies Neha Narula

    Digital Currency Initiative
  2. +

  3. interoperability

  4. None
  5. None
  6. None
  7. DB (EMRs) Application Application

  8. DB (EMRs) Application Doctor DB (EMRs) Application Hospital APIs

  9. Problems: Back office reconciliation Hard to share – need to

    have n2 APIs Compromises still happen!
  10. DB (EMRs) Application Doctor DB (EMRs) Application Hospital APIs

  11. DB Hospital Pharmacist Doctor

  12. A new (again) database: The blockchain

  13. distributed consensus public key cryptography common data formats and protocols

  14. Distributed consensus Problem of multiple computers agreeing on a value

    Used to build a log of operations with state machine replication Works as a distributed database
  15. Distributed consensus log

  16. Byzantine fault tolerant distributed consensus log

  17. Consensus: a very old problem 1982 Byzantine Generals Problem formulated

    1999 Practical Byzantine Fault Tolerance paper published 2009 Bitcoin introduces Nakamoto Consensus 1990 Leslie Lamport writes about Paxos 2014 1980 1985 1990 1995 2000 2005 2010 2015 Raft paper published 2006 Google publishes Chubby paper
  18. Public key cryptography Hash functions Digital signatures Sharing data selectively

  19. Public key cryptography Hash functions Digital signatures Sharing data selectively

  20. Common data formats Rules for what can go in the

    log records Agreement on valid operations and states
  21. Components of blockchains distributed consensus public key cryptography common data

    formats + +
  22. using a log to build a decentralized digital currency Alice

    Bob 1MHepPtrqAxZ
  23. Potential problems with digital token transfer 1.  Intercept transfer and

    steal funds 2.  Spend money without authorization 3.  Replay attack 4.  Double spend
  24. “I, Alice, would like to send Bob one coin” Alice!

    “I, Alice, would like to send Bob 1MHepPtrqAxZ” Alice! Alice Bob Eve 1.  Intercept transaction and steal funds 2.  Spend money without authorization 3.  Replay attack 4.  Double spend Eve Alice!
  25. “I, Alice, would like to send Bob 1MHepPtrqAxZ” Alice! “I,

    Alice, would like to send Carol 1MHepPtrqAxZ” Alice! Bob Carol 1.  Intercept transaction and steal funds 2.  Spend money without authorization 3.  Replay attack 4.  Double spend Alice! Uniqueness and ordering Alice
  26. Don’t trust, verify.

  27. Blocks merkle root hash of prev block timestamp # txns

    txns
  28. Merkle tree H(HA HB ) H(B) H(C) H(D) H(A) H(HC

    HD ) H(HAB HCD ) A B C D merkle root
  29. Merkle tree H(HA HB ) H(B) H(C) H(D) H(A) H(HC

    HD ) H(HAB HCD ) A B C D C in MY merkle root? merkle root
  30. log Participation based on identity Sybil attack

  31. Proof of work: Bitcoin mining Nakamoto Consensus

  32. None
  33. Blocks created by solving a computational puzzle merkle root hash

    of prev block timestamp nonce difficulty # txns txns
  34. None
  35. None
  36. Why do people solve this puzzle and follow the rules?

  37. $$$

  38. distributed consensus public key cryptography common data formats and protocol

  39. distributed consensus public key cryptography common data formats and protocol

    mechanism design
  40. Rational behavior in Bitcoin Try to solve the puzzle for

    bitcoins Build on the longest valid chain The one the other rational ones are building on All valid transactions Why are bitcoins worth anything??
  41. log

  42. log ? ? ? ?

  43. Downsides of Bitcoin Energy usage for proof of work Performance

    Concentration of mining power Difficulty of use Uncertainty of new currency
  44. What we can learn from Bitcoin Open-admissions, rationality-based protocols work

    at large scale! Simple transaction formats are useful Giving users the power to audit their own transactions is powerful More open systems with less trust → -  Choice -  Interoperability
  45. Savings and credit practices in the developing world Mobile money

    Real time gross financial settlement Credentialing Property titling and asset transfer Global rights management for music Medical records Decentralized publishing Many real world applications
  46. None
  47. A vicious cycle: •  High fees •  Unproven creditworthiness • 

    Fraud, mistrust in documentation •  Unenforceable contracts •  Communities without access to basic infrastructure Our current financial system is not serving everyone
  48. Blockchain The power of peer-to-peer and open systems Payments Smart

    contracts Privacy
  49. Thank you! MIT Digital Currency Initiative dci.mit.edu ted.com/talks/neha_narula_the_future_of_money narula@media.mit.edu @neha