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The Blockchain Game
J Scott Christianson
This work is licensed under a
Creative Commons Attribution-
NonCommercial-ShareAlike 4.0
International License.
Blockchain Basics
• A Distributed Ledger
• No central server or authority.
• Everyone (aka node) on the network
has a copy of the ledger.
• A huge variety of information can be
stored on a blockchain ledger.
The Blockchain Game
Blockchain Basics
• A Distributed Ledger Can Store:
• Financial Transactions
• Property Records
• Shipments and Inventory
• Grades????
The Blockchain Game
Blockchain Basics
• A Distributed Ledger For Grades
• All teachers calculate student grades and
then enter the grades into a central
repository (the registrar or central office ).
• Why not eliminate the registrar (save
some $$) and just have the teachers
maintain the ledger of grades?
The Blockchain Game
The Grade Blockchain
• Let’s try it!
• I need six “faculty” volunteers.
• Three will act as nodes
• Three will act as “special” nodes called
“Miners”
• I need seven “student” volunteers
The Blockchain Game
The Grade Blockchain
• Student identities are concealed.
• Each student has a public ID that
matches with a private ID that only
the student knows.
The Blockchain Game
Below is your key pair for the grade blockchain. Your teacher
will assign a grade to your public key. You can then use any of
the grade scanning tools to review the blockchain and retrieve
your grades.
1Student
Public Key Private Key
ad59da c8fc47b6fe
Block 1
Course:
Student:
Grade:
The Blockchain Game
Parks 320
ad59da
F
Our First Block
The Blockchain Game
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 12
Finishing the block:
Hashing
The Blockchain Game
• Miners will solve a puzzle to create a unique
number for the block (aka a hash) using the
information contained in our block and use
that to make our ledger secure!
• First to generate a correct hash wins
• Other miners and nodes will verify if that hash
is correct
Miners Mine!!
N 78
O 79
P 80
Q 81
R 82
S 83
T 84
U 85
V 86
W 87
X 88
Y 89
Z 90
A 65
B 66
C 67
D 68
E 69
F 70
G 71
H 72
I 73
J 74
K 75
L 76
M 77
Table
a = Value of the first letter of the course
b = Value of the first letter of the student Public
Key
c = Value of the Grade
value between 1 and 3 that you will
adjust to calculate a hash that can be
equally divisible by 3
Nonce =
Hash = Nonce + a + b + c - Value of Last 2 digits of prev Hash
Our First Block
The Blockchain Game
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 12 80 65 70
Miner Worksheet
Nouse + a + b + c -
Value of Last 2 digits of
prev Hash
= Hash
Divide by 3
Remainder
1 + + + - =
2 + + + - =
3 + + + - =
All Miners and Nodes
Verify and Vote
Hash = Nonce + a + b + c - Value of Last 2 digits of prev Hash
Finishing the block:
Hashing
The Blockchain Game
1
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
Block 2
Course:
Student:
Grade:
The Blockchain Game
Engineering 300
bd9ebc
B
Miners Mine —> Verify and Vote —>
Finishing the block:
Hashing
The Blockchain Game
1 2
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
2 Engineering 300 bd9ebc B 1 4 69 66 66 198
3
4
5
6
Block 3
Course:
Student:
Grade:
The Blockchain Game
Business 200
c67445
C
Miners Mine —> Verify and Vote —>
Finishing the block:
Hashing
The Blockchain Game
1 2 3
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
2 Engineering 300 bd9ebc B 1 4 69 66 66 198
3 Business 200 c67445 C 3 98 66 67 67 105
4
5
6
Block 4
Course:
Student:
Grade:
The Blockchain Game
Parks 320
e2dd8a
B
Miners Mine —> Verify and Vote —>
Finishing the block:
Hashing
The Blockchain Game
1 2 3 4
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
2 Engineering 300 bd9ebc B 1 4 69 66 66 198
3 Business 200 c67445 C 3 98 66 67 67 105
4 Parks 320 e2dd8a B 3 5 80 69 66 213
5
6
Block 5
Course:
Student:
Grade:
The Blockchain Game
Engineering 300
e2dd8a
D
Miners Mine —> Verify and Vote —>
Finishing the block:
Hashing
The Blockchain Game
1 2 3 4 5
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
2 Engineering 300 bd9ebc B 1 4 69 66 66 198
3 Business 200 c67445 C 3 98 66 67 67 105
4 Parks 320 e2dd8a B 3 5 80 69 66 213
5 Engineering 300 e2dd8a D 2 13 69 69 68 195
6
Block 6
Course:
Student:
Grade:
The Blockchain Game
Engineering 300
bde7af
B
Miners Mine —> Verify and Vote —>
Finishing the block:
Hashing
The Blockchain Game
1 2 3 4 5 6
Grade BlockChain
Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
2 Engineering 300 bd9ebc B 1 4 69 66 66 198
3 Business 200 c67445 C 3 98 66 67 67 105
4 Parks 320 e2dd8a B 3 5 80 69 66 213
5 Engineering 300 e2dd8a D 2 13 69 69 68 195
6 Engineering 300 bde7af B 2 95 69 66 66 108
Questions?
The Blockchain Game
• Anyone, what courses did
c67445 take and what grade
did they earn?
• Student 7 what grades have you
received?
What if….
The Blockchain Game
• We change block 1
Block 1
Course:
Student:
Grade:
The Blockchain Game
Parks 320
ad59da
F -> A
What if….
The Blockchain Game
• A grade is announced by someone
other than a faculty member?
• Student pays off a node (any node)
to record an A in for their grade?
• Student 5’s Private Key is lost.
Finishing the block:
Hashing
The Blockchain Game
1 2 3 4 5 6
Grade BlockChain
Block Course Student Grade Nonce (1-6) Prev Hash a b c Hash
212
1 Parks 320 ad59da F 1 12 80 65 70 204
2 Engineering 300 bd9ebc F 1 4 83 66 70 216
3 Business 200 c67445 C 2 16 66 67 67 186
4 Parks 320 e2dd8a B 3 86 80 69 66 132
5 Engineering 300 e2dd8a D 3 32 69 69 68 177
6 Engineering 300 bde7af B 2 77 69 66 66 126
What if….
The Blockchain Game
• A miner changes a transaction and
announces the hash to the network
before anyone else calculates it?
• The difficulty of calculating a hash
increases as the blockchain grows?
What did we observe in this “Game”
• Distributed Ledger
• No central authority to hold ledger or
be attacked.
• All people (aka nodes) have complete
ledger.
• Transparent but anonymous Ledger
• Ledger can be public while concealing
identity.
• Append only Ledger
• Each entry (aka block) is linked to the
previous entry via some math (aka
hash).
• Some nodes (aka miners) are paid for
performing calculations (aka proof of
work).
• Immutable Ledger
• Attacks to ledger are impractical due
to need for majority of nodes (aka 51%
attack) to agree to a change and the
computational power required.
Grade Blockchain
• While a grade blockchain provides a good
exercise to explain blockchain in a class,
storing grades is probably not a great
application for blockchain.
• What are good applications for
blockchain? I recommend the DHS
flowchart to get you started.
The Blockchain Game
The Blockchain Game
Review
• Distributed Ledger
• No central authority to hold ledger or
be attacked.
• All people (aka nodes) have complete
ledger.
• Transparent but anonymous Ledger
• Ledger can be public while concealing
identity.
• Append only Ledger
• Each entry (aka block) is linked to the
previous entry via some math (aka
hash)
• Some node (aka miners) are paid for
performing calculations (aka proof of
work)
• Immutable Ledger
• Attacks to ledger are impractical due
to need for majority of nodes to agree
to a change and the computational
power required.
Photo and Graphics Credits
• All Graphics and photos are either self created or creative commons 0 (public
domain). Most are from pixabay.com

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The blockchain game

  • 1. The Blockchain Game J Scott Christianson This work is licensed under a Creative Commons Attribution- NonCommercial-ShareAlike 4.0 International License.
  • 2. Blockchain Basics • A Distributed Ledger • No central server or authority. • Everyone (aka node) on the network has a copy of the ledger. • A huge variety of information can be stored on a blockchain ledger. The Blockchain Game
  • 3. Blockchain Basics • A Distributed Ledger Can Store: • Financial Transactions • Property Records • Shipments and Inventory • Grades???? The Blockchain Game
  • 4. Blockchain Basics • A Distributed Ledger For Grades • All teachers calculate student grades and then enter the grades into a central repository (the registrar or central office ). • Why not eliminate the registrar (save some $$) and just have the teachers maintain the ledger of grades? The Blockchain Game
  • 5. The Grade Blockchain • Let’s try it! • I need six “faculty” volunteers. • Three will act as nodes • Three will act as “special” nodes called “Miners” • I need seven “student” volunteers The Blockchain Game
  • 6. The Grade Blockchain • Student identities are concealed. • Each student has a public ID that matches with a private ID that only the student knows. The Blockchain Game
  • 7. Below is your key pair for the grade blockchain. Your teacher will assign a grade to your public key. You can then use any of the grade scanning tools to review the blockchain and retrieve your grades. 1Student Public Key Private Key ad59da c8fc47b6fe
  • 9. Our First Block The Blockchain Game Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 12
  • 10. Finishing the block: Hashing The Blockchain Game • Miners will solve a puzzle to create a unique number for the block (aka a hash) using the information contained in our block and use that to make our ledger secure! • First to generate a correct hash wins • Other miners and nodes will verify if that hash is correct
  • 11. Miners Mine!! N 78 O 79 P 80 Q 81 R 82 S 83 T 84 U 85 V 86 W 87 X 88 Y 89 Z 90 A 65 B 66 C 67 D 68 E 69 F 70 G 71 H 72 I 73 J 74 K 75 L 76 M 77 Table a = Value of the first letter of the course b = Value of the first letter of the student Public Key c = Value of the Grade value between 1 and 3 that you will adjust to calculate a hash that can be equally divisible by 3 Nonce = Hash = Nonce + a + b + c - Value of Last 2 digits of prev Hash
  • 12. Our First Block The Blockchain Game Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 12 80 65 70
  • 13. Miner Worksheet Nouse + a + b + c - Value of Last 2 digits of prev Hash = Hash Divide by 3 Remainder 1 + + + - = 2 + + + - = 3 + + + - =
  • 14. All Miners and Nodes Verify and Vote Hash = Nonce + a + b + c - Value of Last 2 digits of prev Hash
  • 15. Finishing the block: Hashing The Blockchain Game 1 Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204
  • 16. Block 2 Course: Student: Grade: The Blockchain Game Engineering 300 bd9ebc B Miners Mine —> Verify and Vote —>
  • 17. Finishing the block: Hashing The Blockchain Game 1 2 Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204 2 Engineering 300 bd9ebc B 1 4 69 66 66 198 3 4 5 6
  • 18. Block 3 Course: Student: Grade: The Blockchain Game Business 200 c67445 C Miners Mine —> Verify and Vote —>
  • 19. Finishing the block: Hashing The Blockchain Game 1 2 3 Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204 2 Engineering 300 bd9ebc B 1 4 69 66 66 198 3 Business 200 c67445 C 3 98 66 67 67 105 4 5 6
  • 20. Block 4 Course: Student: Grade: The Blockchain Game Parks 320 e2dd8a B Miners Mine —> Verify and Vote —>
  • 21. Finishing the block: Hashing The Blockchain Game 1 2 3 4 Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204 2 Engineering 300 bd9ebc B 1 4 69 66 66 198 3 Business 200 c67445 C 3 98 66 67 67 105 4 Parks 320 e2dd8a B 3 5 80 69 66 213 5 6
  • 22. Block 5 Course: Student: Grade: The Blockchain Game Engineering 300 e2dd8a D Miners Mine —> Verify and Vote —>
  • 23. Finishing the block: Hashing The Blockchain Game 1 2 3 4 5 Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204 2 Engineering 300 bd9ebc B 1 4 69 66 66 198 3 Business 200 c67445 C 3 98 66 67 67 105 4 Parks 320 e2dd8a B 3 5 80 69 66 213 5 Engineering 300 e2dd8a D 2 13 69 69 68 195 6
  • 24. Block 6 Course: Student: Grade: The Blockchain Game Engineering 300 bde7af B Miners Mine —> Verify and Vote —>
  • 25. Finishing the block: Hashing The Blockchain Game 1 2 3 4 5 6 Grade BlockChain Block Course Student Grade Nonce (1-3) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204 2 Engineering 300 bd9ebc B 1 4 69 66 66 198 3 Business 200 c67445 C 3 98 66 67 67 105 4 Parks 320 e2dd8a B 3 5 80 69 66 213 5 Engineering 300 e2dd8a D 2 13 69 69 68 195 6 Engineering 300 bde7af B 2 95 69 66 66 108
  • 26. Questions? The Blockchain Game • Anyone, what courses did c67445 take and what grade did they earn? • Student 7 what grades have you received?
  • 27. What if…. The Blockchain Game • We change block 1
  • 28. Block 1 Course: Student: Grade: The Blockchain Game Parks 320 ad59da F -> A
  • 29. What if…. The Blockchain Game • A grade is announced by someone other than a faculty member? • Student pays off a node (any node) to record an A in for their grade? • Student 5’s Private Key is lost.
  • 30. Finishing the block: Hashing The Blockchain Game 1 2 3 4 5 6 Grade BlockChain Block Course Student Grade Nonce (1-6) Prev Hash a b c Hash 212 1 Parks 320 ad59da F 1 12 80 65 70 204 2 Engineering 300 bd9ebc F 1 4 83 66 70 216 3 Business 200 c67445 C 2 16 66 67 67 186 4 Parks 320 e2dd8a B 3 86 80 69 66 132 5 Engineering 300 e2dd8a D 3 32 69 69 68 177 6 Engineering 300 bde7af B 2 77 69 66 66 126
  • 31. What if…. The Blockchain Game • A miner changes a transaction and announces the hash to the network before anyone else calculates it? • The difficulty of calculating a hash increases as the blockchain grows?
  • 32. What did we observe in this “Game” • Distributed Ledger • No central authority to hold ledger or be attacked. • All people (aka nodes) have complete ledger. • Transparent but anonymous Ledger • Ledger can be public while concealing identity. • Append only Ledger • Each entry (aka block) is linked to the previous entry via some math (aka hash). • Some nodes (aka miners) are paid for performing calculations (aka proof of work). • Immutable Ledger • Attacks to ledger are impractical due to need for majority of nodes (aka 51% attack) to agree to a change and the computational power required.
  • 33. Grade Blockchain • While a grade blockchain provides a good exercise to explain blockchain in a class, storing grades is probably not a great application for blockchain. • What are good applications for blockchain? I recommend the DHS flowchart to get you started. The Blockchain Game
  • 35. Review • Distributed Ledger • No central authority to hold ledger or be attacked. • All people (aka nodes) have complete ledger. • Transparent but anonymous Ledger • Ledger can be public while concealing identity. • Append only Ledger • Each entry (aka block) is linked to the previous entry via some math (aka hash) • Some node (aka miners) are paid for performing calculations (aka proof of work) • Immutable Ledger • Attacks to ledger are impractical due to need for majority of nodes to agree to a change and the computational power required.
  • 36. Photo and Graphics Credits • All Graphics and photos are either self created or creative commons 0 (public domain). Most are from pixabay.com

Editor's Notes

  1. Today we are going to b e
  2. Anonymous (for Grades)
  3. -Distribute Ledger Hand out all the stuff to the miners and the nodes
  4. -Distribute Ledger -Distribute Student Key Pairs
  5. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  6. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  7. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  8. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  9. From CIO Magazine: “the "proof of work" is a piece of data that is difficult (costly, time-consuming) to produce but easy for others to verify and which satisfies certain requirements. In short, it's difficult to solve the puzzle but easy to verify it's solved correctly.” We have consensus ! We have proof of work?
  10. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  11. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  12. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  13. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  14. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  15. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  16. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  17. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  18. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  19. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  20. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  21. delete a student key
  22. delete a student key
  23. Demonstrate with the spreadsheet Changing one block will make all following blocks invalid
  24. 51% Attack
  25. -Distribute Ledger -Distribute Student Key Pairs —-then hash —-then voting
  26. explain why
  27. -Distribute Ledger -Distribute —-then hash —-then voting