GE143 - 11: Block Chain and Cryptocurrency

Related considerations

Dr Robert Batzinger
Instructor Emeritus

2023-10-19

1 Block chain

  • a shared, immutable ledger for recording transactions, tracking assets and building trust

1.1 Block chain

  • ledger is encrypted or digitally signed

  • copies are compared before reading or updating

  • no data is ever deleted; updates are appended

  • stored in multiple systems

Block chains

1.2 Hacker attempt

  • All attempts to alter will be detected.

  • The history will not be lost

  • Requires decryption to be read

Hacker attempt

1.3 Hacker attempt

  • All copies need to altered and encrypted.

  • The history needs to be altered to avoid detection

  • Requires decryption and alteration on all copies simulataneously

Hacker attempt

1.4 Applications

  • Asset accounts: Bank accounts, shares, property deeds

  • Ownership: photographs, music, antiques, asset registry

  • Credentials: academic records, vaccines

  • Product identity: warranty, repair records

2 Cryptocurrency

  • Each unit has a unique id that is mined
  • There are limited id’s
  • The value is driven by a free economy with no price support
  • The industry is not regulated
  • Governments do not back their value
  • Ledgers kept as blockchains

2.1 Bitcoin value

Bitcoin

2.2 Highlights of Bitcoin

  • Start trading in 2010 at $0.39/share
  • Peeked in 2017 at $17,262/share
  • Rallied in 2918 to $11,831/share
  • Peeked in 2021 to $61539/share
  • Rallied to $64,739/share
  • Currently trading at $16,655/share

2.3 QuadrigaCX

  • Worth $150,000,000, largest crypto in Canada
  • Founder and CEO Gerald Cotton died on December 9, 2018 in India
  • Majority of the currency held required his validation key
  • Loss of keys makes it impossible to trade in this currency
  • Source of many rumors and stories

2.4 Crypto and the black market

  • ownership is kept secret
  • used on the dark web for illegal transaction
  • used for payment of ransomware malware
  • used by North Korea to circumvent economic sanctions
  • illegal trading currency in many countries

3 A note about the final exam

  • Date: 4 December 2023

  • Time: 13:00 - 16:00

  • Venue: PC402

  • You can bring:

    • An A4 page of notes

4 Some parting Words

A Prophetic warning {.scrollable}

Don’t be naive.
There are difficult times ahead.

As the end approaches, people are going to be self-absorbed, money-hungry, self-promoting, stuck-up, profane,
contemptuous of parents, crude, coarse, dog-eat-dog,
unbending, slanderers, impulsively wild, savage,
cynical, treacherous, ruthless, bloated windbags,
addicted to lust, and allergic to God.

They’ll make a show of religion,
but behind the scenes they’re animals.

Stay clear of such people.

                 2 Timothy 3:1-5

A Blessing

May the Lord bless you
and keep you;

May the Lord make his face shine on you
and be gracious to you;

May the Lord turn his face toward you
and give you peace.

  • Numbers 6:24-26