slides/slides08.tex
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    59 %transactions, 
    59 %transactions, 
    60 %
    60 %
    61 %\end{frame}
    61 %\end{frame}
    62 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
    62 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
    63 
    63 
       
    64 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
       
    65 \begin{frame}[t]
       
    66 \frametitle{Last Week's Survey}
       
    67 
       
    68 {\bf About Bitcoins:}
       
    69 
       
    70 \begin{textblock}{2.5}(11.5,10)
       
    71 \begin{bubble}[2.5cm]
       
    72 \it anonymous? 
       
    73 \end{bubble}
       
    74 \end{textblock}
       
    75 
       
    76 \begin{textblock}{5}(3.5,4)
       
    77 \begin{bubble}[5cm]
       
    78 \it cannot be controlled by the government?
       
    79 \end{bubble}
       
    80 \end{textblock}
       
    81 
       
    82 \begin{textblock}{4}(2,9)
       
    83 \begin{bubble}[4cm]
       
    84 \it untracable spending of money?
       
    85 \end{bubble}
       
    86 \end{textblock}
       
    87 
       
    88 \begin{textblock}{5.7}(3,13)
       
    89 \begin{bubble}[5.7cm]
       
    90 \it it takes 0..10 mins to pay with Bitcoins
       
    91 \end{bubble}
       
    92 \end{textblock}
       
    93 
       
    94 \begin{textblock}{5.6}(8,7)
       
    95 \begin{bubble}[5.6cm]
       
    96 \it Should one mine for Bitcoins?
       
    97 \end{bubble}
       
    98 \end{textblock}
       
    99 
       
   100 \begin{textblock}{2}(12,12.5)
       
   101 \begin{bubble}[2cm]
       
   102 \it mined by GPUs
       
   103 \end{bubble}
       
   104 \end{textblock}
       
   105 
       
   106 \begin{textblock}{3.6}(10,2.3)
       
   107 \begin{bubble}[3.6cm]
       
   108 \it can be lost or stolen
       
   109 \end{bubble}
       
   110 \end{textblock}
       
   111 
       
   112 \end{frame}
       
   113 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%     
       
   114 
       
   115 
       
   116 
    64 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   117 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
    65 \begin{frame}[t]
   118 \begin{frame}[t]
    66 \frametitle{Bitcoins from 10,000m}
   119 \frametitle{Bitcoins from 10,000m}
    67 
   120 
    68 \begin{itemize}
   121 \begin{itemize}
    69 \item a crypto ``currency'' by Satoshi Nakamoto (likely a pen name)
   122 \item a crypto ``currency'' by Satoshi Nakamoto (likely a pen name)
    70 \item a digital resource designed to be scarce 
   123 \item a digital resource designed to be scarce 
    71   (max 21 Mio bitcoins---deflationary currency) 
   124   (max 21 Mio bitcoins---deflationary currency) 
    72 \item mined by solving special puzzles involving hashes
   125 \item mined by solving special puzzles involving hashes
    73 \item transaction history (ledger/blockchain) is P2P distributed (12 GB)
   126 \item transaction history (ledger/blockchain) is P2P distributed (12 GB)
    74 \item two ``mining pools'' produce\\ currently more than 50\% 
   127 \item three ``mining pools'' produce\\ currently more than 50\% 
    75   of bitcoins 
   128   of bitcoins 
    76 \item can be stolen and also lost
   129 \item can be stolen and also lost
    77 \item anonymous?\pause
   130 \item anonymous?\pause
    78 \item surely a scam/ponzi scheme!
   131 \item surely a scam/ponzi scheme!
    79 \end{itemize}
   132 \end{itemize}
   138 \end{center}\bigskip
   191 \end{center}\bigskip
   139 
   192 
   140 \begin{itemize}
   193 \begin{itemize}
   141 \item no-one else could have created that message
   194 \item no-one else could have created that message
   142 \item Alice cannot deny the ``intend'' of sending Bob money\pause\bigskip
   195 \item Alice cannot deny the ``intend'' of sending Bob money\pause\bigskip
   143 \item forgery possible only after Alice created the string
       
   144 \item Q: What is money?\\ 
   196 \item Q: What is money?\\ 
   145   A: Well a string like above
   197   A: Well a string like above
   146   (or later messages like that)
   198   (or later messages like that)
   147 \end{itemize}
   199 \end{itemize}
   148 
   200 
   159 \bl{$\{\text{I, Alice, am giving Bob one infocoin.}\}_{K^{priv}_{Alice}}$}
   211 \bl{$\{\text{I, Alice, am giving Bob one infocoin.}\}_{K^{priv}_{Alice}}$}
   160 \end{center}
   212 \end{center}
   161 
   213 
   162 \begin{itemize}
   214 \begin{itemize}
   163 \item Alice could keep sending Bob this message over and over
   215 \item Alice could keep sending Bob this message over and over
   164       again (did she mean to send 10 ICs?)\pause
   216       again (did she mean to send 10 ICs?)\bigskip\pause
   165 \item we need to have a serial number
   217 \item we need to have a serial number
   166 \begin{center}
   218 \begin{center}
   167 \bl{$\{\text{I, Alice, am giving Bob infocoin \#1234567.}\}_{K^{priv}_{Alice}}$}
   219 \bl{$\{\text{I, Alice, am giving Bob infocoin \#1234567.}\}_{K^{priv}_{Alice}}$}
   168 \end{center}\pause\medskip
   220 \end{center}\pause\medskip
   169 
   221 
   176 
   228 
   177 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   229 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   178 \begin{frame}[c]
   230 \begin{frame}[c]
   179 \frametitle{No Banks Please}
   231 \frametitle{No Banks Please}
   180 
   232 
   181 With banks we could implement:
   233 With banks we could implement:\medskip
   182 
   234 
   183 \begin{itemize}
   235 \begin{itemize}
   184 \item Bob asks the bank whether the infocoin with that serial
   236 \item Bob asks the bank whether the infocoin with that serial
   185       number belongs to Alice and
   237       number belongs to Alice and
   186 \item Alice hasn’t already spent this infocoin.\bigskip 
   238 \item Alice hasn’t already spent this infocoin.\bigskip 
   187 \item If yes, then Bob tells the bank he accepts the infocoin.
   239 \item If yes, then Bob tells the bank he accepts the infocoin.
   188 \item The bank updates the records to show that the infocoin
   240 \item The bank updates the records (ledger) to show that the infocoin
   189       with that serial number is now in Bob’s possession and
   241       with that serial number is now in Bob’s possession and
   190       no longer belongs to Alice.
   242       no longer belongs to Alice.
   191 \end{itemize}
   243 \end{itemize}
   192 
   244 
   193 \end{frame}
   245 \end{frame}
   260 
   312 
   261 How should other people update their blockchain (public
   313 How should other people update their blockchain (public
   262 register)?\\[-10mm]\mbox{}\pause
   314 register)?\\[-10mm]\mbox{}\pause
   263 
   315 
   264 \begin{center}
   316 \begin{center}
   265 \hspace{15mm}\includegraphics[scale=0.35]{../pics/bitcoindisagreement.png}
   317 \hspace{15mm}\includegraphics[scale=0.31]{../pics/bitcoindisagreement.png}
   266 \end{center}
   318 \end{center}
   267 
   319 
   268 \end{frame}
   320 \end{frame}
   269 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   321 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   270 
   322 
   517 network.\medskip
   569 network.\medskip
   518 
   570 
   519 \footnotesize
   571 \footnotesize
   520 BTCC, the largest mining pool, has limited its members to 
   572 BTCC, the largest mining pool, has limited its members to 
   521 not solve more than 6 blocks in a row.
   573 not solve more than 6 blocks in a row.
       
   574 \hfill\url{https://blockchain.info/pools}
   522 
   575 
   523 \end{frame}
   576 \end{frame}
   524 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   577 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   525 
   578 
   526 
   579 
   534 
   587 
   535 \item if you want to receive bitcoins, you publicise 
   588 \item if you want to receive bitcoins, you publicise 
   536 this address
   589 this address
   537 
   590 
   538 \item there are $2^{160}$ possibilities\\ 
   591 \item there are $2^{160}$ possibilities\\ 
   539 (no check for duplicates)
   592 (no check for duplicates)\bigskip\pause
   540 \end{itemize}
   593 
   541 
   594 \item transactions contain ``payment scripts''
   542 \end{frame}
   595  (non-Turing-complete scripting language)\bigskip
   543 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   596  
       
   597  \small simplest script: pay-to-public-key
       
   598 \end{itemize}
       
   599 
       
   600 \end{frame}
       
   601 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
       
   602 
       
   603 
       
   604 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
       
   605 \begin{frame}[t]
       
   606 \frametitle{Multi-Signature Addresses}
       
   607 
       
   608 \begin{itemize}
       
   609 \item \ldots Bitcoin Improvement Proposal\bigskip\pause
       
   610 \item pay-to-public-key (explained so far)
       
   611 \item pay-to-script-hash (since 2012)\bigskip\pause
       
   612 
       
   613 can specify: requires \bl{M} out of \bl{N} signatures\medskip
       
   614 
       
   615 {\small for example\\
       
   616 1-of-2: me and my wife, or\\
       
   617 2-of-2 in banking/companies}
       
   618 
       
   619 \end{itemize}
       
   620 
       
   621 \end{frame}
       
   622 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
       
   623 
       
   624 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
       
   625 \begin{frame}[t]
       
   626 \frametitle{Dispute Mediation}
       
   627 
       
   628 \begin{itemize}
       
   629 \item say, client and (online) merchant do not trust 
       
   630   each other\bigskip\pause
       
   631 
       
   632 \item 2-of-3: mutually trusted escrow service
       
   633   \begin{enumerate}
       
   634   \item client sends money to 2-of-3 transaction
       
   635   \item merchant sends out goods
       
   636   \item if goods are OK, client sends signed transaction
       
   637     to merchant, merchant can sign and receive the money
       
   638     (publish in blockchain)
       
   639   \item if goods are defective, merchant sends signed transaction
       
   640     to client, client can sign and receive the money back
       
   641   \item if client and merchant disagree, then they ask escrow
       
   642   servive who signs a transaction and sends it to ``winning''
       
   643   party 
       
   644  \end{enumerate}
       
   645 \end{itemize}
       
   646 
       
   647 \end{frame}
       
   648 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
       
   649 
   544 
   650 
   545 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   651 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   546 \begin{frame}[c]
   652 \begin{frame}[c]
   547 \frametitle{A Transaction Msg}
   653 \frametitle{A Transaction Msg}
   548 \small
   654 \small
   670 \only<1>{
   776 \only<1>{
   671 ledger is public ``forever''; everybody can inspect
   777 ledger is public ``forever''; everybody can inspect
   672 how money was transferred from which address to
   778 how money was transferred from which address to
   673 which address; maybe not ideal for money laundering}
   779 which address; maybe not ideal for money laundering}
   674 \only<2>{
   780 \only<2>{
   675 You should use a new pp-pair for \alert{every} transaction;
   781 You should use a new PKI-pair for \alert{every} transaction;
   676 but few do (merchants). A design flaw(?): combining transactions.}
   782 but few do (merchants). A design flaw(?): combining transactions.}
   677 
   783 
   678 \end{frame}
   784 \end{frame}
   679 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   785 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   680 
   786 
   695 de-anonymize `anonymous' social networks. The block chain is a
   801 de-anonymize `anonymous' social networks. The block chain is a
   696 marvellous target for these techniques.''
   802 marvellous target for these techniques.''
   697 
   803 
   698 \end{frame}
   804 \end{frame}
   699 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
   805 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
       
   806 
       
   807 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% 
       
   808 \begin{frame}[t]
       
   809 \frametitle{Other Cryto-Currencies}
       
   810 
       
   811 Coloured Coins:
       
   812 
       
   813 \begin{itemize}
       
   814   \item record a 1 bitcoin transfer, say, and give it a
       
   815         ``colour'' 
       
   816         
       
   817   \item the transaction stands for a share in ``Foo Inc, UK''.
       
   818   
       
   819     
       
   820   \item only makes sense if the share is much more
       
   821   valueable than just 1 Bc.          
       
   822 \end{itemize} 
       
   823 
       
   824 \end{frame}
       
   825 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
       
   826 
       
   827 
   700 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   828 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
   701 \begin{frame}[t]
   829 \begin{frame}[t]
   702 \frametitle{Bitcoin vs Gov}
   830 \frametitle{Bitcoin vs Gov}
   703 
   831 
   704 Purported absence of potential government interference?
   832 Purported absence of potential government interference?