1. Blockchain Principles
TCU - Neeley School of Business

2. What is Blockchain?
“A blockchain is a tamper-evident, shared digital ledger that records transactions in a public or private peer to peer network. Distributed to all member nodes in the network, the ledger permanently records, in a sequential chain of cryptographic hash-linked blocks, the history of asset exchanges that take place between the peers in the network .”
(Brakeville and Perepa, 2018).
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

3. Blockchain Protocols
Public blockchains (e.g., cryptocurrencies - Bitcoin)
Permissioned blockchains
Private blockchains

4. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

5. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

7. W
Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

8. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

9. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

10. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

11. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

12. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

13. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

14. Implications for SCM
Supply chain operational costs account for 2/3 of the final cost of traded goods
Distributed/Decentralized Ledger fits well with SC partners with different systems
Cryptokeys allow for selective data access ensuring privacy
Blockchain aligned with GS1

15. Blockchain Advantages
Speed
Security
Efficiency
Faster transaction times
Less required oversight
Immutable records, pre- venting tampering and fraud
Involvement of fewer intermediaries
Improved trust among members
Less duplication effort
Privacy (e.g. in private permissioned blockchains)

16. Challenges for Implementing Blockchain
New Technology
Scalability
Process Redesign

17. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

18. Volume: “More data cross the internet every second than were stored in the entire internet just 20 years ago.” McAfee and Brynjolfson 2012, p.63
Velocity: MIT used sensor data in Macy’s parking lots to estimate sales that day. P.63
Variety: social networks, sensors, mobile phones (we are now a walking data generator)

19. Blockchain Hashing

21. Cryptographic Hash Function Properties
Deterministic
Pseudo-Random
One-way Function
Collision Resistant

22. Hash Values
Digits 0-9
Letters A-F (converted to 11-16)

23. Standard Hashing Alogorithms
MD5
SHA1
SHA256
SHA512

24. Patterns of Hashing Data
Independent Hashing
Repeated Hashing
Combined Hashing
Sequential Hashing
Hierarchical Hashing

26. https://anders.com/blockchain/

27. Independent Hashing

28. Repeated Hashing

29. Combined Hashing

30. Sequential Hashing

31. Hierarchical Hashing

33. Blockchain Mining
Proof of Work
Proof of Stake

34. Merkle Tree

35. Merkle Tree