Blockchain for Identity Management IBM part 1 of 3

© 2016 IBM Corporation

Blockchain for Identity ManagementPart 1 (of 3)

Mike Chung | Associate Partner IBM Security

November 2016 Seoul

2© 2016 IBM Corporation

Items

§ What is blockchain? Part 1

– Blockchain explained in layman’s terms

§ How can we use blockchain? Part 2 Use case A; Part 3 Use case B

– Potential applications in Identity Management

§ Whom to watch? Part 3

– Initiatives and developments


What is blockchain?


Blockchain foundations

§ Foundation in cryptography; cryptography applied

§ Concept, technology, protocol

§ Various ‘projects’ applying the blockchain e.g. Bitcoin, Ethereum, Ripple


Blockchain foundations

Block TBlock T – 1

Parent block for block T

Genesis block


Blockchain: transactions

Transactions


Blockchain: block

Block T

Transactions


Blockchain: block chained

Block T

Transactions

Transactions

Block T – 1Block T – 2

Block

Reference to previous block


Blockchain: proof of work

Block T

Mining

Transactions

Transactions


Block


Proof of work


Blockchain: consensus and verification (confirmation)

Block T

Mining

Transactions

Transactions


Block


Proof of workYes No

Yes


Blockchain: hash function explained

Text

Hash function explained by Mike

Cryptographic hash function

(SHA-2 (256) algorithm mostly used)

hash



Text

0362d887


Digest



hash



Text

0362d887


Digest

One

way

func

tion



hash



TextText



0362d887


hash

Digest

One

way

func

tion Hash function explained

by mike

66b15569

hash

Digest


Blockchain: referencing to previous block

Block TBlock T – 1Block T – 2

Transaction xyz

02ac6580

hash

225f00b0


Blockchain: referencing to previous block

Block TBlock T – 1Block T – 2

Transaction xyz

02ac6580

Transaction bcd

225f00b0

Transaction lmn

b76dd051

hash

225f00b0 b76dd051 29b7cd0d

hash hash


Old-fashioned centralization


Centralization/middlemen issues

SPF

Lack of verifiable trails

Dependency


Blockchain: distributed & shared ledger

SPF


Dependency


Blockchain: solving the issues of centralization/middlemen

SPF


Dependency

DistributedVerifiable

Based on consensus


Blockchain: solving the issues of centralization/middlemen


Blockchain: distributed ledger

1

Transaction



1

Transaction

2Update



1

Transaction

2Update

3 Consensus and validation


Blockchain characteristics

§ Centralized record/ledger

– Database on a “trusted” node

§ Leaving no verifiable audit trails

– Tampering with data possible

§ Updated by a central authority

– Central point of failure

§ Decentralized/distributed record/ledger

– Database for every (untrusted) participant

§ Leaving audit trails

– Once it’s there and verified, it stays there

§ Updated by consensus of the majority

– Extremely hard/expensive to breach

Traditional concept Blockchain


Basic “functionality”

§ Provides data storage

§ Performs computation: e.g. verification of transactions

§ Reaches consensus about the abovementioned items


Blockchain types

§ Public blockchain

– Permissionless; trustless (e.g Bitcoin blockchain)

– Permissioned; trusted (e.g. Ripple)

– Bitcoin blockchain as (by far) the most secure blockchain

§ Private (internal) blockchain

– Permissioned; trusted (e.g. Bankchain)

– Bypassing the limitations/constraints of the public blockchain(s), but theoretically less secure/robust


Blockchain typesPublic: permissionless


Blockchain typesPublic: permissionless Public: permissioned


Blockchain typesPublic: permissionless Public: permissioned Private: permissioned


Using blockchain: concept/technology

Blockchain concept


Using blockchain: different blockchains

Bitcoin blockchain Other blockchain(s)

Blockchain concept


Using blockchain: different services

Bitcoin blockchain

Bitcoin Services using bitcoin blockchain

Other blockchain(s)

Blockchain concept

Other services


Using blockchain: different use cases

Bitcoin blockchain

Bitcoin

Financial transactions

Services using bitcoin blockchain

Use cases using bitcoin

Other blockchain(s)

Blockchain concept

Other services

Other use cases


Blockchain assumptions

§ Decreasing data storage prices – blockchain grows bigger with each transaction/change

§ Controllable volume/sequence of transactions/changes

§ Users are competent enough to secure their private keys

§ No or very limited service needed

§ Consensus is reached by a honest majority

§ Blockchain is with us forever


Contact details

Drs. Mike Chung RE CISSP

Associate Partner IBM Security

[email protected]

+31 6 2565 7593 (the Netherlands)

+82 10 3521 7754 (South Korea)

Blockchain for Identity Management IBM part 1 of 3

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