blockchain

24 Articles

Hackaday Prize Entry: Internets Of Energy

May 20, 2016 by 10 Comments

More and more, the power grid is distributed. Houses have solar panels on their roofs, and where possible, that excess power is sold back to the grid. The current trend is towards smart meters that record consumption for an entire household and relay it back to the power plant every day or so. The future is decentralized, through, and a meter that is smart once a day simply won’t do. A team on Hackaday.io has put together the ultimate in decentralized energy modernization. It’s the InternetS of Energy, and it removes the need for power companies completely.

The team has identified a few key features of the current power grid that don’t make sense in the age of the Internet. The power company doesn’t have extremely granular data, and sending power over long distances is either inefficient or expensive. The solution for this is to have distributed power plants, all connected together into a truly intelligent power grid.

This InternetS of Energy uses open-source energy monitoring systems running the Ethereum client to push power-usage data onto the blockchain. This makes the grid secure and pseudonymous, and if the banking industry is any indication, something like this is the future of economic transactions.

While it may not be the best solution for mature power grids, it is an extremely interesting avenue of research for developing nations. Wherever local resources allow it, electricity can be generated and sent to where it’s needed. It’s exactly what the power grid would be if it were re-designed today from scratch, and an excellent candidate for the 2016 Hackaday Prize.

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I Am Satoshi Nakamoto

May 3, 2016 by 74 Comments

OK, you got me. I’m not. Neither is Dorian Nakamoto, pictured above, and neither is this [Craig White] guy. Or at least, his supposed proof that he is “Satoshi” doesn’t stand up to scrutiny. Indeed, you can re-create it yourself and pretend to be “Satoshi” too.

If you haven’t been following along, “Satoshi Nakamoto” is the person or group of people who invented Bitcoin, and who holds a decent fortune’s worth of the currency. He’s been exceedingly careful at keeping his identity secret. So much so, that upon hearing another “We Found Satoshi” story in the news, we actually laughed at our wife this morning. But then it was picked up by the BBC and is forthcoming in the Economist. Serious journalism.

Well, if you read the BBC piece, they note that “Security expert Dan Kaminsky said the procedure was almost ‘maliciously resistant’ to validation.” Hint: If Dan “DNSSEC” Kaminsky can’t verify a signature, there’s a good chance it’s not the real deal.

The really embarrassing part is that this [Craig White] character claimed to be Satoshi in December 2015. If he actually were Satoshi, who is probably a cryptographic genius, do you think it would take him five months to figure out a cryptographically sound way of proving his identity? Nope.

So here’s how he did it, according to [Patrick McKenzie]’s GitHub, linked above. There is a hashed secret out there that only “Satoshi” knows. Hashes are one-way functions; they produce a number that’s easy to calculate if you know the original data, but devilishly hard to work from the hash backwards to get the data out. This hashed value is public, and part of the blockchain, so we can be pretty sure that it hasn’t been altered.

[Craig] claimed to have some text from Sartre hashed with “Satoshi’s” key, and that this proves his identity. But instead of providing the hash of the Sartre text, [Craig] apparently substituted a hash from the blockchain. When this supposed Sartre hash is validated against the blockchain, of course, it works. In short, he swapped hashes, and people failed to notice.

So I’m not “Satoshi”, and neither is this guy. Who is? The mystery continues. And given how careful “Satoshi” has been so far, it’s likely to remain so for a long while. But one thing’s for sure, when “he” does choose to reveal himself, it won’t be difficult to verify. After all “Satoshi” knows “Satoshi’s” password.

Image via the BBC, of another guy who isn’t “Satoshi”.

(Late Edit: Here’s another really nice writeup, this one by [ErrataRob].)

Applications For The Bitcoin Blockchain

October 27, 2015 by 34 Comments

Bitcoin, the libertarian’s dream currency, is far past the heady days of late 2013. When one Bitcoin was worth $1000 USD, there was no end to what could be done; new, gigantic mining rigs were being created, every online store jumped onto the bandwagon, and the price of Bitcoin inevitably crashed. Right now, the exchange rate sits at about $280 USD per coin, valuing all the Bitcoins ever mined somewhere around $4 Billion USD. That’s a lot of coins out there, and a lot of miners constantly verifying the integrity of the greatest thing to come from the Bitcoin community: the blockchain.

The bitcoin is just a record, or the ledger, of every transaction that has ever occurred on the Bitcoin network. It’s distributed, and the act of mining coins creates new blocks, or another set of data committed to the blockchain for eternity. While magical Internet money™ is by far the most visible product of the blockchain, developers, investors, and other people in the know are gushing about the possibilities of what can be done with a distributed record that can’t practically be altered and can’t be deleted.

[Jon Matonis], a figurehead for the entire cryptocurrency movement, recently said Bitcoin has become the strongest computer in the world, and stronger than all of the top 500 supercomputers combined. All of this computational power is effectively funneled in to verifying the integrity of the blockchain.

Bitcoin and other cryptocurrencies are not just a completely anonymous payment system; that’s only a side effect of the blockchain. The blockchain is the only inherently valuable part of a bitcoin; each transaction is logged in the blockchain, providing incredible security over how every coin is spent. No currency in the history of mankind has ever had a record of how every dollar or denarius is spent, and at the very least makes for very interesting economics research. Now, thousands of researchers across the globe are wondering what else the blockchain can do; tapping the power of the most powerful computer on the planet must have some interesting applications, and in the last few months, a few ideas have popped up.

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