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With the introduction of Bitcoin in 2009, the use of blockchain has exploded with the creation of various cryptocurrencies, decentralized finance (DeFi) applications, non-fungible tokens (NFTs), and smart contracts. Blockchain technology is on the rise, with Gartner predicting that it will create $3.1 trillion in business value by 2030. And with more industries applying blockchain, data privacy and legal compliance have become critical. GIRE talks to a professor from Carnegie Mellon's Department of Computer Science about how to do it right!

[What is a blockchain?]

A blockchain is a distributed database mechanism shared among nodes on a computer network. Blockchain technology allows information and records to be shared securely and decentralized within a business network. It can be used in any industry, not just cryptocurrency, to create an immutable or unchangeable ledger to track orders, payments, accounts, and other transactions.

[Why blockchain is important]

Traditional database technology relies on unreliable sources or complicated procedures to record financial transactions. For example, when real estate is sold, ownership of the property is transferred to the buyer through money, but both the buyer and seller record the monetary transaction separately, creating unreliable sources on both sides. The seller could claim to have received the money when they didn't, or the buyer could claim to have paid the money when they didn't. Blockchain's decentralized, tamper-proof system solves this problem of trust by creating one ledger for the buyer and seller. Other benefits of blockchain include:

1) Advanced security: Blockchain's three principles of encryption, decentralization, and consensus make it impossible to tamper with transactions, providing a high level of trust.

2) Improved efficiency: In B2B transactions, the presence of a third-party regulator can create an operational bottleneck. Blockchain is a true peer-to-peer network that reduces dependence on intermediaries.

3) Faster auditing: Blockchain records are always in chronological order, allowing for transparent and fast auditing.

“44% of organizations are capable of using blockchain technology to document transactions in a secure manner”
- SAP (Market leader in enterprise application software)
 

[Blockchain and Industry Transformation]

The top five industries that will be revolutionized by blockchain technology are:

1) Banking: Blockchain is revolutionizing the banking system by providing a peer-to-peer payment system with the highest security and lowest fees.

2) Cybersecurity: Quickly identifying malicious attacks and enhancing security through cryptographic algorithms.

3) Supply chain management: enables product traceability, and validates and audits transactions across multiple supply chain partners.

4) Healthcare: Enable instant access to data to enhance privacy, security, and interoperability of medical records.

5) Government: Voters can vote without revealing their identity and information is never erased.

[How Blockchain Works]

1. Record transactions

2. Build consensus

3. Linking blocks

4. Sharing the ledger

[Types of blockchain networks]

▶Public blockchain networks: Anyone can participate in the blockchain. It is mainly used to exchange and mine cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
 

▶Private blockchain networks: The organization decides who can be a member and what power they have on the network. An example of a private blockchain is Ripple, a digital currency exchange network for businesses.
 

▶Hybrid blockchain networks: Combine elements of private and public networks. This allows organizations to control who has access to certain data stored on the blockchain and what data is publicly available.
 

▶Consortium blockchain networks: Also known as federated blockchains, these eliminate the risks that can arise when one entity controls the network in a private blockchain.

[Blockchain and cryptography research: Prof. Vipul Goyal]

GIRE is supporting a research experience with Prof. Vipul Goyal from Carnegie Mellon's Department of Computer Science to delve deeper into 'Blockchain and Cryptography'.

▶Research Interests: #Cryptography #Information Privacy #Computer Science #Artificial Intelligence #Regression Analysis #Computer Science

▶Recommended students: Students who want to major in computer science or pursue related careers.
Students who want to apply blockchain and cryptographic technologies in real life.

These are the current research topics of Prof. Vipul Goyal.

▶ Quantum key leasing for pke and fhe with a classical lessor

▶ Split-state non-malleable codes and secret sharing schemes for quantum messages

▶ Reusable Secure Computation in the Plain Model

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With GIRE, high school students receive direct support from consultants and conduct unprecedented research in research areas they are curious about, acquiring specialized knowledge, discovering new facts, and considering ways to utilize the research results.

​Students who complete this course will be issued a letter of recommendation and a certificate of completion. Furthermore, they will be submitting their paper to a promising high school academic journal.

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