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Blockchain: Consensus Algorithm

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Presented in UST-KISTI Student Seminar at KISTI Meeting room 3 (2 Aug, 2018)

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Blockchain: Consensus Algorithm

  1. 1. Blockchain : Consensus Algorithm Yeongheon Song Research Data Platform Center, KISTI Dept. of Big Data Science, UST 2018. 08. 02.
  2. 2. Blockchain • Blockchain is a system processes continuous transactions of users consisted by a number of distributed nodes which are connected each other. • Once data has been recorded, it cannot be modified or deleted because of its properties. Courtesy of “bitcoinforbeginners.io”
  3. 3. Properties of Cryptographic Hash Functions • Collision-resistance : A hash function ! is said to be collision resistant if it is infeasible to find two values, " and #, such that " ≠ #, but !(") = !(#). • Hiding : A hash function ! is hiding if when a value ( is chosen from a prob. distribution that has high min-entropy, then given !((|") is infeasible to find ". • Puzzle friendliness : A hash function ! is said to be puzzle-friendly if for every possible *-bit output value #, if + is chosen from a distribution with high entropy, then it is infeasible to find " such that !(+|") = # in time significantly less than 2- .
  4. 4. Consensus Algorithm u Aim : Defend nodes from making forks u Permissionless Blockchain • Proof of Work : Require expensive computer calculation called mining. Select Longest chain(Traditional Bitcoin), GHOST(Ethereum) • Proof of Stake : Requires coin holders to utilize their share to validate transactions. u Permissioned Blockchain PBFT(Practical Byzantine Fault Tolerant; Tendermint, Hyperledger Fabric)
  5. 5. Consensus in Permissionless System blk0 blk1 !(#$#%&|()&*_ℎ-.ℎ|/0|/0) < / {0 … 0 -2739493020;394320%39<} SHA256 >-byte 0 : Computation Difficulty 16A blk2 blk2# (created by node0) (created by node6) blk3 ✓ Antonopoulos, A. M. (2014). Mastering Bitcoin: unlocking digital cryptocurrencies. " O'Reilly Media, Inc.". (created by node2) 임종철(J.C.Yim), 유현경(H.K.Yoo) , 곽지영(J.Y.Kwak) , 김선미(S.M.Kim). (2018). 블록체인과 합의 알고리즘. 전자통신동향분석, 33(1): 45-56
  6. 6. Merkle tree in Blockchain Antonopoulos, A. M. (2014). Mastering Bitcoin: unlocking digital cryptocurrencies. " O'Reilly Media, Inc.". • Block #125552 in Bitcoin Blockchain dhash(a) = sha256(sha256(a)) : resistant to Length extension / Birthday attacks
  7. 7. Proof of Work (PoW) u Longest Chain • Bitcoin, H(#) ≤ &/( where (: =difficulty, &: =Maximum of difficulty(2,-. − 1) • Calculation of hash takes approx. 10 min for each block. • When fork has been aroused, select longest chain among forks. u GHOST (Greedy Heaviest Observed Subtree) • Ethereum, Select heaviest chain, not longest one by including Uncle block (for 7th Gen.) Sompolinsky, Y., & Zohar, A. Secure High-Rate Transaction Processing in Bitcoin.
  8. 8. Proof of Stake (PoS) u Proof of Stake • Calculating hash for each block takes too much time and power. • In PoS, Generate block by coinholder’s share. • !(#$%&_ℎ)*ℎ|,|-) < 0)1(,)2/4 where ,: =Address, -: =timestamp, 0)1(,): =balance at , • Peercoin, Nxt, Novacoin u Coin-age based generation • Peercoin, Implementing age for holding coin. • Novacoin, Weighting constant for holding period. • Initial Distribution Problem, Nothing to Stake Courtesy of “coincentral.com” Alice Bob 10 PPC Held for 90 days 900 coin-day
  9. 9. Delegated Proof of Stake (DPoS) u Delegated Proof of Stake • Electing representatives through voting of node by its share. • Takes shorter time than PoS for making consensus because permission for creating / validating blocks are consigned to representatives. • Tendermint(Cosmos), Slasher, BitShares, Ethereum Casper Buchman, E. (2016). Tendermint: Byzantine fault tolerance in the age of blockchains (Master’s Thesis). u Tendermint
  10. 10. Bitcoin-NG u Delegated Proof of Stake • Proof of Work + Longest Chain • Implemented Key blocks and Microblocks Key block : used to choose a leader Microblocks : blocks created by leader node; Do not need PoW Eyal, I., Gencer, A. E., Sirer, E. G., & Van Renesse, R. (2016, March). Bitcoin-NG: A Scalable Blockchain Protocol. In NSDI(pp. 45-59).
  11. 11. Byzantine Fault Tolerant(BFT) u State Machine Replication • System consists of multiple replica, and each replica has its own state. • Each replica is state machine which execute deterministic service logic. • When each command has been succeed, It will propagate for other state machine. u Abnormal status in State Machine • Fail-stop : Failure of node (Paxos, Raft, ZooKeeper Atomic Broadcast) • Byzantine Fault : Adversary changes in status (PBFT) Ongaro, D., & Ousterhout, J. K. (2014, June). In search of an understandable consensus algorithm. In USENIX Annual Technical Conference (pp. 305-319). Castro, M., & Liskov, B. (1999, February). Practical Byzantine fault tolerance. In OSDI (Vol. 99, pp. 173-186). N=3F+1

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