Andreas Bolfing
- Published in print:
- 2020
- Published Online:
- October 2020
- ISBN:
- 9780198862840
- eISBN:
- 9780191895463
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198862840.001.0001
- Subject:
- Mathematics, Computational Mathematics / Optimization, Logic / Computer Science / Mathematical Philosophy
Many online applications, especially in the financial industries, are running on blockchain technologies in a decentralized manner, without the use of an authoritative entity or a trusted third ...
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Many online applications, especially in the financial industries, are running on blockchain technologies in a decentralized manner, without the use of an authoritative entity or a trusted third party. Such systems are only secured by cryptographic protocols and a consensus mechanism. As blockchain-based solutions will continue to revolutionize online applications in a growing digital market in the future, one needs to identify the principal opportunities and potential risks. Hence, it is unavoidable to learn the mathematical and cryptographic procedures behind blockchain technology in order to understand how such systems work and where the weak points are. The book provides an introduction to the mathematical and cryptographic concepts behind blockchain technologies and shows how they are applied in blockchain-based systems. This includes an introduction to the general blockchain technology approaches that are used to build the so-called immutable ledgers, which are based on cryptographic signature schemes. As future quantum computers will break some of the current cryptographic primitive approaches, the book considers their security and presents the current research results that estimate the impact on blockchain-based systems if some of the cryptographic primitive break. Based on the example of Bitcoin, it shows that weak cryptographic primitives pose a possible danger for the ledger, which can be overcome through the use of the so-called post-quantum cryptographic approaches which are introduced as well.Less
Many online applications, especially in the financial industries, are running on blockchain technologies in a decentralized manner, without the use of an authoritative entity or a trusted third party. Such systems are only secured by cryptographic protocols and a consensus mechanism. As blockchain-based solutions will continue to revolutionize online applications in a growing digital market in the future, one needs to identify the principal opportunities and potential risks. Hence, it is unavoidable to learn the mathematical and cryptographic procedures behind blockchain technology in order to understand how such systems work and where the weak points are. The book provides an introduction to the mathematical and cryptographic concepts behind blockchain technologies and shows how they are applied in blockchain-based systems. This includes an introduction to the general blockchain technology approaches that are used to build the so-called immutable ledgers, which are based on cryptographic signature schemes. As future quantum computers will break some of the current cryptographic primitive approaches, the book considers their security and presents the current research results that estimate the impact on blockchain-based systems if some of the cryptographic primitive break. Based on the example of Bitcoin, it shows that weak cryptographic primitives pose a possible danger for the ledger, which can be overcome through the use of the so-called post-quantum cryptographic approaches which are introduced as well.
Andreas Bolfing
- Published in print:
- 2020
- Published Online:
- October 2020
- ISBN:
- 9780198862840
- eISBN:
- 9780191895463
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198862840.003.0001
- Subject:
- Mathematics, Computational Mathematics / Optimization, Logic / Computer Science / Mathematical Philosophy
This chapter gives an outline of Nakamoto’s main idea when introducing Bitcoin as first blockchain system in history of computer sciences. The scope of the book and its outline is described.
This chapter gives an outline of Nakamoto’s main idea when introducing Bitcoin as first blockchain system in history of computer sciences. The scope of the book and its outline is described.
Andreas Bolfing
- Published in print:
- 2020
- Published Online:
- October 2020
- ISBN:
- 9780198862840
- eISBN:
- 9780191895463
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198862840.003.0006
- Subject:
- Mathematics, Computational Mathematics / Optimization, Logic / Computer Science / Mathematical Philosophy
This chapter gives an introduction to blockchain technology which was proposed by the pseudonymous Nakamoto (2008) with his well-known Bitcoin paper to enable online payments in a decentralized ...
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This chapter gives an introduction to blockchain technology which was proposed by the pseudonymous Nakamoto (2008) with his well-known Bitcoin paper to enable online payments in a decentralized digital cash system, solving the double-spending problem where someone can make two payments with the same coin. The chapter starts with an informal outline of the application of a blockchain and a brief explanation of how a blockchain network is able to reach consensus about the common state of a transaction history. Furthermore, it introduces the Proof-of-Work (PoW) algorithmwhich needs to be donein order to extend the blockchain with new blocks. Since the PoW is a very costly computational algorithm, the transaction data is stored in previous blocks resistant to modification, and thus the PoW safeguards the order of blocks, forming a tamper-proof history of transactions. As a last step, it examines the double-spending attack, which is a fundamental attack to the integrity of a blockchain based system.Less
This chapter gives an introduction to blockchain technology which was proposed by the pseudonymous Nakamoto (2008) with his well-known Bitcoin paper to enable online payments in a decentralized digital cash system, solving the double-spending problem where someone can make two payments with the same coin. The chapter starts with an informal outline of the application of a blockchain and a brief explanation of how a blockchain network is able to reach consensus about the common state of a transaction history. Furthermore, it introduces the Proof-of-Work (PoW) algorithmwhich needs to be donein order to extend the blockchain with new blocks. Since the PoW is a very costly computational algorithm, the transaction data is stored in previous blocks resistant to modification, and thus the PoW safeguards the order of blocks, forming a tamper-proof history of transactions. As a last step, it examines the double-spending attack, which is a fundamental attack to the integrity of a blockchain based system.
Andreas Bolfing
- Published in print:
- 2020
- Published Online:
- October 2020
- ISBN:
- 9780198862840
- eISBN:
- 9780191895463
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198862840.003.0007
- Subject:
- Mathematics, Computational Mathematics / Optimization, Logic / Computer Science / Mathematical Philosophy
Bitcoin was proposed by Nakamoto (2008) as the first electronic payment system, which fully relies on cryptographic primitives in order to work over a purely peer-to-peer system, where everyone can ...
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Bitcoin was proposed by Nakamoto (2008) as the first electronic payment system, which fully relies on cryptographic primitives in order to work over a purely peer-to-peer system, where everyone can participate in spending funds to other users without the need for a trusted third party. This chapter first introduces the basic ideas of Satoshi Nakamoto, who defined an electronic coin as a chain of digital signatures. It explains how the addresses in Bitcoin are derived, and how the elliptic curve cryptography (ECC) key pair is used in order to transact funds from one user to another. For this, it shows how the transactions are constructed in Bitcoin, based on the most common transaction, which is the Pay-to-Public-Key-Hash transaction. The last section then shows how the transactions are permanently stored in the public ledger, the blockchain, and how the miners solve the Proof-of-Work in order to safeguard the records.Less
Bitcoin was proposed by Nakamoto (2008) as the first electronic payment system, which fully relies on cryptographic primitives in order to work over a purely peer-to-peer system, where everyone can participate in spending funds to other users without the need for a trusted third party. This chapter first introduces the basic ideas of Satoshi Nakamoto, who defined an electronic coin as a chain of digital signatures. It explains how the addresses in Bitcoin are derived, and how the elliptic curve cryptography (ECC) key pair is used in order to transact funds from one user to another. For this, it shows how the transactions are constructed in Bitcoin, based on the most common transaction, which is the Pay-to-Public-Key-Hash transaction. The last section then shows how the transactions are permanently stored in the public ledger, the blockchain, and how the miners solve the Proof-of-Work in order to safeguard the records.
Chris Bleakley
- Published in print:
- 2020
- Published Online:
- October 2020
- ISBN:
- 9780198853732
- eISBN:
- 9780191888168
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198853732.003.0013
- Subject:
- Mathematics, History of Mathematics, Logic / Computer Science / Mathematical Philosophy
Chapter 13 investigates cryptocurrency and quantum computing. Bitcoin – the world’s first cryptocurrency - was released by Satoshi Nakamoto in 2009. Unlike conventional money, Bitcoin transactions ...
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Chapter 13 investigates cryptocurrency and quantum computing. Bitcoin – the world’s first cryptocurrency - was released by Satoshi Nakamoto in 2009. Unlike conventional money, Bitcoin transactions are anonymous - maintained by a worldwide collection of computers operated by volunteers. Bitcoin took off on the black market but then migrated to legitimate business. The current value of all bitcoins is a staggering $41 billion. Strangely, no one knows who Nakamoto is – he, she, or they have yet to reveal themselves. Quantum computing was first proposed by physicist Richard Feynman in 1981. His idea was that the weird behaviour of sub-atomic particles could be exploited to perform computations. In theory, quantum computing allows huge numbers of calculations to be performed simultaneously. Google, IBM and others are now in race to build a practical quantum computer. Such a machine might well crack the encryption algorithms that currently underpin both the Internet and Bitcoin.Less
Chapter 13 investigates cryptocurrency and quantum computing. Bitcoin – the world’s first cryptocurrency - was released by Satoshi Nakamoto in 2009. Unlike conventional money, Bitcoin transactions are anonymous - maintained by a worldwide collection of computers operated by volunteers. Bitcoin took off on the black market but then migrated to legitimate business. The current value of all bitcoins is a staggering $41 billion. Strangely, no one knows who Nakamoto is – he, she, or they have yet to reveal themselves. Quantum computing was first proposed by physicist Richard Feynman in 1981. His idea was that the weird behaviour of sub-atomic particles could be exploited to perform computations. In theory, quantum computing allows huge numbers of calculations to be performed simultaneously. Google, IBM and others are now in race to build a practical quantum computer. Such a machine might well crack the encryption algorithms that currently underpin both the Internet and Bitcoin.
Richard Bowring
- Published in print:
- 2016
- Published Online:
- December 2016
- ISBN:
- 9780198795230
- eISBN:
- 9780191836534
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198795230.003.0012
- Subject:
- History, World Early Modern History, History of Ideas
Although there is a tendency to see Buddhism as being in constant decline during this period, this is a misreading of the situation. Although Buddhist institutions had lost the secular power they had ...
More
Although there is a tendency to see Buddhism as being in constant decline during this period, this is a misreading of the situation. Although Buddhist institutions had lost the secular power they had enjoyed in the medieval period, Buddhist scholarship (especially historiography) flourished in the Tokugawa period and many reforms were set in motion. Buddhism also penetrated the everyday life of the common man in a way not seen before, with a growth in street preaching and the growing popularity of pilgrimage across Japan. At the same time, however, it was subject to heavy criticism from Confucian scholars. This was not all. The writings of Tominaga Nakamoto in Ōsaka reveal a strain of sceptical thought that questioned the whole basis of any faith in divinity of any kind. This was never allowed to become mainstream but shows that radical ideas were certainly allowed to circulate.Less
Although there is a tendency to see Buddhism as being in constant decline during this period, this is a misreading of the situation. Although Buddhist institutions had lost the secular power they had enjoyed in the medieval period, Buddhist scholarship (especially historiography) flourished in the Tokugawa period and many reforms were set in motion. Buddhism also penetrated the everyday life of the common man in a way not seen before, with a growth in street preaching and the growing popularity of pilgrimage across Japan. At the same time, however, it was subject to heavy criticism from Confucian scholars. This was not all. The writings of Tominaga Nakamoto in Ōsaka reveal a strain of sceptical thought that questioned the whole basis of any faith in divinity of any kind. This was never allowed to become mainstream but shows that radical ideas were certainly allowed to circulate.
