9 - Distributed Ledger Technology Flashcards
Distributed Ledger Technology
Distributed Ledger Technology (DLT) enables the realization and operation of distributed ledgers , where benign nodes, through a shared consensus mechanism , agree on an (almost) immutable record of transactions in the presence of Byzantine failures and eventually achieve consistency.
Relational Databases
- Clearly defined tables
- Dependencies between those tables
- Four Operations (CRUD): Create, Read, Update, Delete
Centralized databases
- reside on a single storage device
- Better and easier to maintain but less availability
Decentralized databases
- no central storage; data are simply stored on multiple storage devices connected with one another
- organized in a hierarchical structure with a set of
nodes communicating with a particular node,
which can be a node of a superordinate set of nodes - incorporate multiple, hierarchically organized, centralized databases
Distributed Database
A distributed database is a type of database where data are replicated across multiple storage devices (nodes) with equal rights
- increasing availability and avoiding performance issues
- allows requests to be distributed across the storage devices and be processed in parallel
- To achieve consistency between all the nodes, the stored data need to be identical on each of the distributed database replications (complex)
consensus mechanism
A consensus mechanism is designed to achieve an agreement on a single state of a data value (e.g., the replication of stored data) among nodes of a distributed database under consideration of network failures.
Which two consensus mechanisms are there?
- Probabilistic consensus mechanism: current state is assumed and can be changed post hoc
- Finality preserving consensus mechanism: nodes agree on particular state which cannot be reverted
Byzantine fault
A Byzantine fault is a condition of a particularly distributed computer system, where components may fail and there is imperfect information on whether a component has failed.
Forms of Byzantine faults (3)
1) A node can be determined as crashed or not reachable over the network as the node does not respond anymore
2) A monitoring system may not be able to determine the status of a certain node, which can occur when the node crashes or network failures result in inconclusive responses from the node.
3) Nodes may follow malicious intentions such as trying to store incorrect data into the distributed database
Distributed ledger
A distributed ledger is a type of distributed database that assumes the presence of nodes, which have malicious intentions. A distributed ledger incorporates multiple replications of a ledger, where data can only be appended or read
-> Anyone can contribute to the distributed ledger and assure that stored data is not corrupted!
Blockchain 1.0 (2008) features (3)
- Bitcoin Blockchain
- Solution of the Double Spending problem
- Focus on digital currencies
Blockchain 2.0 features (3)
- Turing complete smart contracts
- Additional flexibility
- Initial coin offerings (ICOs) are possible
Blockchain 3.0 features (3)
- Use of directed, acyclic graphs (DAG)
- Improvements in performance, security, and confidentiality
- Development of applications on DLT
Blockchain as a service
DLT designs provided as a cloud service
(SAP Leonardo, IBM Watson IoT, Microsoft Azure,
HyperLedger Fabric)
DLT concept
provides description of the architecture of a DLT and the organization of transactions
- Block-based directed acyclic graphs (blockDAG)
- Transaction-based directed acyclic graphs (TDAG)
Example: Bitcoin and Ethereum employ the DLT concept blockchain