BLOCKCHAIN
OVERVIEW To familiarize ourselves with the potential implementations of blockchain technology, we must explore the concept through three separate paradigms: technology, business, and user experience. Bellow are questions whose answers are integral to understanding and applying blockchain. We hope to answer through graphic visualizations of conceptual systems
TECHNOLOGY
What is a distributed vs centralized ledger? What is a blockchain? How does it work? How is it maintained?
BUSINESS
How will blockchain inpact business enterprise? What businesses should adopt blockchain? What are the advantages of switching to a blockchain platform? How can blockchain enterprise be integrated to current systems?
DESIGN
What design opportunities does blockchain open? What constraints does it set? How should an experience designed on blockchain look and feel?
Currently, most transaction computing is managed in a centralized infrastructure, wherein all computing resources reside in a primary data-center. The alternative to this is a distributed ledger, in which components are located on individual, networked computers.
Centralized Database Internal and external reconciliation required No restrictions Single point of failure Single point of control Unnecessary gateways and middlemen Cryptography must be added as afterthought Backups must be set up manually
Distributed Ledger
Blocks are records of transactions whose content has been pushed through a hash function. This hash function creates a cybercriptic hash (a unique fingerprint) for that file.
HASH FUNCTION
transaction #1 This hash is now assigned to the transaction and is a direct result of the document’s content. Because of this, no two hashes are the same.
hash: e03fswe4
OPPORTUNITIES: CASES App Development
Proof of ownership of modules in app development
Digital content:
Proof of ownership for digital content storage and delivery
Ride-sharing:
Points-based value transfer for ride-sharing
Decentralized storage using a network of computers on blockchain
dk ee p Re co r
Valuable assets Digital content:
P2P transction
Company incorporations:
Digitizing company incorporations, transfer of equity/ownership and governance
Digital security trading
Decentralized Internet and computing resources:
Ride-sharing
Decentralized Internet and computing resources to cover every home and business
Prediction platform
Decentralized storage Digitization of documents/contracts
Home automation:
Platform to link the home network and electrical devices to the cloud Marketplace for sales and purchases of digital assets:
Digital identity:
Company incorporations
Provides digital identity that protects consumer privacy
Digitizing assets
Escrow/custodian service:
Escrow/custodian service for the gaming industry; loan servicing and e-commerce
App Development
Decentralized Internet and computing resources Digitizing assets
IT portal:
A smart contract IT portal executing order fulfillment in ecommerce/manufacturing
Patient records Home automation
IT portal
Patient records:
Decentralized patient records management
Digitizing assets:
Improves anti-counterfeit measures
Reputation management:
Helps users engage, share reputation and collect feedback
Prediction platform:
Decentralized prediction platform for the share markets, elections, etc.
Digital identity
Reputation management
Enables authenticity of a review
Enables authenticity of a review:
Enables authenticity of a review through trustworthy endorsements for employee peer reviews
Marketplace for sales and purchases of digital assets: Proof of ownership and a marketplace for sales and purchases of digital assets
Valuable assets:
tracks and protects valuable assets throughout their lifetime journey
P2P transction:
Makes the transaction entire process easier and cheaper without mediator.
Information Reliability
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Decentralized storage:
en m ay
Digitization of documents/contracts and proof of ownership for transfers
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Digitization of documents/contracts:
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Ownership and transfer
in g
Digital security trading:
Small Merchants in lieu of cash
Data Ownership + Sales
Steamlined
Personal Data
Bearer Instrument Supply Chain
Rent Shipping Music Distribution
IoT Logs Copyright
Smart Contracts Auditing
Antifraud Travel
Consensus +Truth
Information Reliability
ts
Standardization
en m ay
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co rd ke ep i
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There are considered opportunities for organizations that adopt blockchain technology internally using bespoke blockchains or so-called side-chains, which provide some interoperability with public blockchains, like Bitcoin. while adding new functionality. Perhaps the most significant opportunity, though, comes from blockchains that link currently disparate parts of one enterprise together or even many different organizations from within the same sector. -From Deloitte UK
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OPPORTUNITIES
Blocks are connected in a chain to other blocks which each have individual hashes. They hold this and the hash of the previous block in the sequence.
HASH FUNCTION
transaction #1 hash: e03fswe4
transaction #2 previous: e03fswe4
hash: we832fw1
HASH FUNCTION
transaction #3 previous: we832fw1
hash: ff94023a
If any document is changed within the blockchain, it will produce a new hash that will not correspond to what the subsequent block had encrypted as the previous. This makes any apparent tampering of documents immediately identifyable.
transaction #1 hash: e03fswe4
transaction #2 previous: e03fswe4
hash: we832fw1
transaction #3 previous: we832fw1
hash: ff94023a
transaction #4 previous: ff94023a
hash: q129f2w1
transaction #5 previous: q129f2w1
hash: f28h39fs
transaction #6 previous: f28h39fs
hash: bl90s8v
we832fw1 == we832fw1
Within this blockchain, every hash corresponds to what is indicated as the previous hash on the next block. The blockchain is valid.
transaction #1 hash: e03fswe4
transaction #2 previous: e03fswe4
hash: pp21ef8
transaction #3 previous: we832fw1
hash: ff94023a
transaction #4 previous: ff94023a
hash: q129f2w1
transaction #5 previous: q129f2w1
hash: f28h39fs
transaction #6 previous: f28h39fs
hash: bl90s8v
pp21ef8 != we832fw1
HASH FUNCTION
In this blockhain, the original file within a block have been altered in some way. When pushed through the hash function, the different data will generate a different hash. However, this new hash does not correspond to what is indicated as the previous hash on the next block. It is clear data was tampered with.
This unique characteristic of the blockchain, in addition to the distributed infrastructure, creates a system in which if one server is fails, the system stays in tact, and if any document is altered, it is immediately identifiable.
CAR LIFE CYCLE RECORD: BLOCKCHAIN SYSTEM This diagram shows how a blockchain system could keep a record of each event along a vehicle’s life cycle. Each of these touch points represents an need for interaction designers to create an interface or system to facilitate the recording.
SUPPLY CHAIN
PRODUCTION
DEALERSHIP
INSURANCE
MAINTANENCE
COLLISION
RESALE
Voitures
$
Blockchain
GOVERNMENT
GOVERNMENT
CAR LIFE CYCLE RECORD: BLOCKCHAIN SYSTEM While the task in every touch point is to upload transaction information onto the blockchain, the context, content, and user will differ in each. This means each have unique design considerations.
SUPPLY CHAIN
PRODUCTION
DEALERSHIP
INSURANCE
MAINTENANCE
COLLISION
RESALE
Voitures
$
Blockchain
User: worldwide parts manufacturers Content: proof of part production Context: shipping stage of manufacturing
User: car salesman Content: proof of sale Context: auto dealership facilities
User: car manufacturer Content: vehicle certifications Context: car manufacturing facilities
User: service engineer Content: proof servicing Context: auto service facilities
User: insurance company Content: proof of sale Context: insurance purchase platform
User: used car salesman Content: proof of sale Context: used auto dealership platform
User: police officer Content: evidence of collision Context: on-the-scene location
This diagram describes the current system of recording transactions between a customer, mechanic, and manufacturer in the process of servicing a car.
MANUFACTURER
#1 #1 #1
request for parts cost of parts*
broken car cost of parts* cost of labor
CUSTOMER #2
parts labor
MECHANIC
parts
#1
The manufacturer and the mechanic both receive the same record of the transaction that occurred between them
#1
#2
#2 The customer and the mechanic both receive the same record of the transaction that occurred between them
#1
#2
This diagram describes a system of recording transactions between a customer, mechanic, and manufacturer in the process of servicing a car through a blockchain platform.
MANUFACTURER #1
#2
CUSTOMER
request for parts cost of parts*
broken car cost of parts* cost of labor
parts
The transaction between the manufacturer and mechanic is recorded as a block within a distributed ledger
MECHANIC
parts labor
the transaction between the mechanic and the customer is recorded as the next block in that ledger
#1
#2
*The blockchain platform, wherein one transaction is built on top of the other, links the data within the interactions and makes it impossible for information from the previous one to be altered. The mechanic cannot alter the cost of parts.
MUSIC SALE RECORD: BLOCKCHAIN SYSTEM This diagram shows how a blockchain system could keep a record of each event following the making and sales of music. Each of these touch-points represents an need for interaction designers to create an interface or system to facilitate the recording. tr acking ownership
Writing
rough cuts
recording
tr acking numbers
t akes
post produc
tion
distribution
record sales
money f lo w
$
Blockchain
preventing theft
MUSIC SALE RECORD: CURRENT SYSTEM This diagram describes the current system of tracking music between the artists, producers, and the customers in the process of writing and selling songs.
WRITER MANUFACTURER
#1 #1 #1
contract
lyric and composition
#1
the contract between writer and producer ensures a strict record of what music gets released and the copy-write of that music.
money
CUSTOMERS
PRODUCER #2
rights to the music
#1
#2
#1
#2
#2 the customer and the producer both have a receipt of the sale.
*because there are so many directions that a song can travel once it leaves the hands of the writer, there is a vast margin for copy-write infringement, contract abuse and illegal use of the song
MUSIC SALE RECORD: BLOCKCHAIN SYSTEM This diagram describes a system of recording transactions and tracking the journey of a song between a writer, producer and customer in the process of writing and selling songs.
WRITER #1
#2 contract
lyric and composition
the transaction between thewriter and producer is recorded as a block within a distributed ledger
money
CUSTOMERS
PRODUCER rights to the music
the transaction between the producer and the customer is recorded as the next block in that ledger
#1
#2
*the blockchain platform, wherein one transaction is built on top of the other, links the data within the interactions and makes it impossible for information from the previous one to be altered. Every transaction is recorded and linked to the consumer – therefore preventing theft.