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Red Sun Campaigns and

Information Systems Cyber Security

George Hardigg
June 13, 2017 David Foran
What is Blockchain?
● Distributed ledger system
○ Availability provided by a network
○ Reducing single point-of-failure
● Decentralized validation authority
○ Data integrity is protected by
Mathematical Proofs
○ Community of trust
● History-based authentication
○ Authentication via transaction history
○ New users must contribute or receive
How can we use Blockchain?
● Decentralized autonomous
democratic organizations
● Create platforms for
transactions and contracts
● Networked nodes validate the
system, reducing infrastructure
● Immutable public ledger with
high availability
● Transfer funds without
middlemen, while maintaining
an audit-trail
Distributed Database All blockchains
are distributed
vs Blockchain ledgers, but
not all
● Trust is inherent internally in organizations distributed
● How do we trust information outside our org? ledgers are

Distributed Database Blockchain
(Traditional information repository) (Distributed ledger system)
Ex 1: Democratic Organization
● Interest or Issue Based Direct Democracy
○ A single vote is distributed to each
voter per issue
○ Vote delegation (liquid democracy)
○ Voters can forgo voting on a
particular issue, trading votes for a
variable number of liquidity tokens

Ex 1: Democratic Organization
● Decentralized Autonomous Organization (DAO)
○ Tokens represent membership as well as
ownership of a portion of the organization
○ Members cast votes weighted by the amount of
tokens they control
○ Members submit proposals to spend a portion of
the tokens
○ The organization exists only to hold tokens
○ Projects are fulfilled by Contractors
Ex 2: Healthcare Market
● Healthcare claims transactions
○ Faster insurance payments
○ Increased transparency
Ex 2: Patient Records Database

● Tracking Patient prescriptions
○ Doctor knows the patient’s complete
dosage and history
○ Pharmacies can access a patient’s
ledger for distribution
Ex 3: Digital Currency Tools
“Ten percent of my net worth is in this
space. […] It’s the “best investment of my
life” - Michael Novogratz (est. $1.5B)
● The DAO - business bylaws written in code
● Cutting out the middleman (Fiat)
○ Cryptocurrency - $114B market
○ Crowdsale - tokens are rewards
○ Tokens - coins, loyalty points, IOUs
● FEC regulations - BTC as an investment tool
Products Under Development
● Steemit - social news service
● Ethereum - smart contracts scripting language
○ Dapp (Decentralized App) - software consisting
of a user interface (UI) and a decentralized
○ The DAO - investor-directed venture capital fund
● Hyperledger (Linux Foundation) - open source cross-
industry blockchain technologies
● Commercial Offerings: Microsoft, IBM, Deloitte, Disney
● R3 team with 42 banks including: Goldman Sachs,
Barclays, JP Morgan, State Street, UBS, Royal Bank of
Scotland, Credit Suisse, BBVA and Commonwealth
Bank of Australia
● Countries experimenting with a national blockchain
currency: Tunisian e-Dinar, Senegal’s eCFA
● “The blockchain is pseudonymous, not anonymous. The organization of
pointer data via public key address allows for data forensics by inferring
patterns of interaction from frequency analysis. Though a person's
name and PII may remain private, one could infer that some ID has
repeatedly interacted with a certain provider.” -Ariel Ekblaw, Asaf Azaria
● “If you could attack or damage the blockchain creation tools on a
private corporate server, you could effectively control 100 per cent of
their network…” -Nikolai Hampton
● “I think it's in a bubble. I just don't know when or how much it corrects.
When everyone is bragging about how easy they are making $=bubble”
-Mark Cuban
Blockchain Quotes
"On the Blockchain, no one knows you're a fridge"
- Richard Brown, Head of Technology at R3CEV
“I think it's [Bitcoin] a technical tour de force, but that's an
area where governments are gonna maintain a dominant role.”
- Bill Gates, founder of Microsoft
“I understand the political ramifications of [bitcoin] and I
think that government should stay out of them and they should
be perfectly legal.”
- Ron Paul, former American politician
“You can’t stop things like Bitcoin. It will be everywhere and the
world will have to readjust. World governments will have to
- John McAfee, founder of McAfee