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 patients complete
dosage and history
Pharmacies can access a patients
ledger for distribution
Ex 3: Digital Currency Tools
Ten percent of my net worth is in this
space. [] Its 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, Senegals 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 cant 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