GE103 - 11: Block Chain and Cryptocurrency

Related considerations

Dr Robert Batzinger
Instructor Emeritus

2022-10-19

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

1.2 Hacker attempt

All attempts to alter will be detected.
The history will not be lost
Requires decryption to be read

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

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 Some parting Words

4 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

A Prophetic warning

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