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It uses peer-to-peer solution: opposite to client server architecture
Client server architecture
problems - if you have an interesting product. there will be too many requests and you will have capacity problems
BitTorrent is an example of client server, and it gets weaker however, Peer-to-peer gets stronger with increasing requests.
Bitcoin is a peer-to-peer system
A distributed ledger, example: Block chain
Public Key Encryption: more powerful than private or symmetric, it has two keys, one is for public, and the other is for the controller.
If the teacher sends us the results, he wants only me to see it, specific student as per his results, this is called symmetric encryption
If the teacher uses public key system, he will send us the results and then we will be able to access it via our private key and the professor can lock it using public key
if we turn it around it will have different consequences
CIA- Confidentiality, Integrity (no one can alter the data), Availability/Authenticity
Text- Public key- Encryption with Sender's private key- receiver deciphers it with sender's private key for authenticity- receiver opens it with his private key to access the message or text
HASH Functions are collision resistant; it will never create the same two functions that it collides, and it is one way only, there is no going back
Block-chain is a public/permissioned form of Distributed Ledger Technology
Byzantine Generals Problem: Read slides
Consensus Algorithms for Blockchain
Proof of Work - Bitcoin uses it
and Several Others
UTXO Model (much like cash) See slide: Unspent transaction output
Block: Set of Transactions
There are only 2500 transactions of Bitcoin worldwide every ten minutes=> Which is very low
Block Header:
Proof of Work
We have a cryptographic function and calculations
Heygen
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