Harnessing Blockchain: Advantages, Challenges & Implementation

1. Blockchain Principles

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).

3. BlockchainProtocols • Public blockchains (e.g., cryptocurrencies - Bitcoin) • Permissioned blockchains • Private blockchains

6. Bitcoin COO • Warren Buffet Bitcoin Analysis

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15. 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

16. Blockchain Advantages

17. Challenges for Implementing Blockchain • New Technology • Scalability • Process Redesign

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

25. http://www.blockchain-basics.com/HashFunctions.html

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