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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
problems
● 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
invitation
How can we use Blockchain?
● Decentralized autonomous
democratic organizations
● Create platforms for
transactions and contracts
● Networked nodes validate the
system, reducing infrastructure
costs
● 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
blockchains.

Distributed Database Blockchain
(Traditional information repository) (Distributed ledger system)
Ex 1: Democratic Organization
● Interest or Issue Based Direct Democracy
(IBDD)
○ 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
Reference

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
backend
○ 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
Challenges
● “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
readjust.”
- John McAfee, founder of McAfee
References
1. redsunis.com
2. bitcoinquotation.com
3. coindesk.com
4. gendal.me
5. medium.com, voteflux.org
6. daohub.org, slock.it, atlassian.net, ethereum.org
7. gem.co, ibtimes.co.uk
8. pubpub.org
9. bitcoin.com, fec.gov, techcrunch.com
10. steemit.com, hyperledger.org, ethercasts.com, reuters.com, e-dinar.io,
iafrikan.com
11. pubpub.org, computerworld.com.au, twitter.com, softx.com,
bankingexchange.com, bitcoin.com
12. gendal.me, foxbusiness.com, mining.com, bloomberg.com, wikiquote.org