Blockchain Tech Briefing

Blockchain – Tech Briefing

Hi Everyone! My name is Almog Paz and for my tech briefing I wanted to talk to you all about a technology called Blockchain.

Before I start, I want to preface this briefing with the fact that Blockchain is an incredibly complicated and controversial topic. I will do my best to present the facts that will help you understand the technology and its business uses, however, even through my research I still do not personally understand all the details and intricacies of Blockchain.

So, I’ll give you a definition now (a combined one I created from several that I found online) to introduce you to what it is, then we’ll talk about what it means later.

“Blockchain is a decentralized ledger of transactions that is virtually incorruptible and can be programmed to record value, information, and other forms of cryptocurrency"

But first, a little history…

Blockchain was first introduced to the world in 2008 by a person or group who anonymously go by the name of Satoshi Nakamoto. The original intent was to create a public ledger, a peer-to-peer network with distributed timestamping, that would serve as the backbone for a new digital currency: Bitcoin.

Many of you have probably heard about Bitcoin, especially the negative stigma around it regarding its involvement with the dark web and buying drugs/weapons on the black market. However, though to this day no one knows who Satoshi is, the technology behind Blockchain has since developed and is now one of the hottest and most revolutionary topics in the tech world.

How Blockchain technically works…

Trade is the essence of transactional interactions between people. When a trade is or transaction is made, it is usually recorded on a leger (book keeping). We trust banks, governments, accountants, and other middle men (trusted 3rd parties) to ensure that bookkeeping is done appropriately, although it’s done in private. The Blockchain allows this bookkeeping to happen collectively and publically, without one party controlling the book.

This is the part where we start breaking down our earlier definition. The first part of is “decentralized ledger of transactions” – much like any ledger, its functionality is depended on the information that it holds. For our purposes, this “decentralized ledger”, is simply a distributed (shared) database. Imagine it’s like a spreadsheet with transactions and information, that is not stored in one single location or file but instead thousands of times across an entire network. Each node in the network owns an entire copy of this ledger, so this “spreadsheet” is updated and cross checked for inconsistencies continually.

The next part of our definition “virtually incorruptible” is related to the way this ledger is cross checked. Blockchain uses complex mathematical principles (cryptographic hashing) to ensure the legitimacy of each transaction and that everyone with the ledger “agree” about the current state of it. This means, that if anyone tries to corrupt the ledger (fraud) the nodes will not unanimously agree, making it impossible to corrupt.

Now the Blockchain works regardless of what type of information is being recorded on the ledger. Whether it’s a monetary value (like bitcoin or dollars), information (like intellectual property, contracts, ownership certificates), or other things of value (like a kilowatt of energy, vote during elections, or even a barrel of oil) the Blockchain can store this information through metadata.

Obviously, you have to just take what I’m saying at face value, but if you’d like to learn exactly how all of this works please watch the following videos:

Essence of Blockchain (non-technical) – https://youtu.be/t5JGQXCTe3c

Blockchain in 5 minutes (technical) – https://youtu.be/l9jOJk30eQs

Also for a great article covering the “big picture” check out this: http://hackeducation.com/2016/04/07/blockchain-education-guide

So why is it revolutionary …

1. Can set rules for how currency can be used – values can be specified for purpose, so you could create a currency called “MIS441 Grade Points” and our professor would send you those to your ledger. Meaning that another currency for example “Dollars” couldn’t be used to replace grade points.  
2. Cryptocurrency Wallets – Imagine if you could have 1 wallet to store everything of value, so you had let’s say $1000, your bachelor’s degree in MIS, the title to your vehicle, etc. all represented in different currency.
3. Cuts out the middle man – there is no more need for a one “trusted 3rd party” we can trust that the ledger is being maintained accurately by “everyone”.
4. Can enforce contracts – To explain in music terms, if a friend and I create a song and we are 50/50 owners, then you buy that song for a $1. The Blockchain can automatically send 50% of that $1 to each of our ledgers, we don’t have to count one people truly getting their “fair share”.
5. History set in stone – Because of the nature of the “blocks” in a time-bound “chain”, the order of transactions and their legitimacy cannot be disputed. (You will need to watch the videos to understand this further)
6. Anonymity – Although the information is “public” it is kept anonymous because it uses a combination private and public keys (these are unique identifiers, like a complex password). The video will explain this more as well.

Use cases beyond bitcoin… 

The Blockchain has a lot of unique benefits that surround ownership, trust, governance, and trade which is what makes it so special. Its most commonly known use right now is for Bitcoin but many companies are investing in Blockchain as the tech of the future and many start-ups are catching on.

Though there are hundreds of great examples, I wanted to share some companies in different industries that are building their business around Blockchain technology. When you look through these, think about how the benefits of Blockchain highlight above relate.

Healthcare – Using Blockchain-based data that manages medical/health records. Could allow access only when authorized by multiple people (reducing fraud, increasing privacy, and allowing for healthcare payments)

MedRec – https://www.pubpub.org/pub/medrec
Gem – https://gem.co/health/

Banking & Fintech – Trust in major banks (3rd party), especially after the financial crisis of 2008, has been an ongoing issue. Additionally, payments could be made easier (with no wait times for big transactions) and the Blockchain could help eliminate fees.

Ripple – https://ripple.com/
Digital Asset Holdings – https://digitalasset.com/
Vault OS – https://www.thoughtmachine.net/
Abra – https://www.goabra.com/

Government – Government departments that work in silos cause the exchange of information to be delayed, negatively impacting citizen services (also increased transparency and decreased corruption). This could also be used for voting!

FollowMyVote – https://followmyvote.com/online-voting-technology/blockchain-technology/

Reply – http://www.reply.com/en/content/ballotchain

Law – Holding information (intellectual property, ownership, etc.). Also, the “Smart Contracts” that can be implemented on the block chain.

RSK Smart Contracts – http://www.rsk.co/
Ethereum – https://www.ethereum.org/
Blockai Copyright -- https://blockai.com/

Music – The music industry is one where there are a lot of players involved and ownership is incredible complex. Blockchain could help promote fair trade, empower artists to own and control their creative content, and more!

Ujo Music – https://ujomusic.com/
Mycelia – http://myceliaformusic.org/

There are many more uses for Blockchain in several other industries and fields like supply chain, real estate, and smart city initiatives. Hundreds of companies are currently finding different ways to implement it. But hopefully I was able to give you a glimpse of what could be with this technology. Finally, I’d like to share a real-life example of how this might work:

DocuSign & Visa Partnership Demo – https://youtu.be/2rLNbd6MQXg

Thank you for listeningJ

Tech Briefing - Netflix

For those of us who, well, exist, Netflix is not something that needs to be explained. It’s how we watch Movies and TV shows. 

For years, though, the streaming giant that has, today, revolutionized the entertainment industry was merely a novelty -- a way for the meticulous to streamline and simplify stay at home movie nights. Carve out a few minutes of your day on Wednesday, click a few buttons on your computer, have a movie in your mailbox by Friday. Within a few years, Netflix successfully cornered the physical video-rental market, sending Blockbuster and Hollywood Video -- once profitable companies who scoffed at the concept of having DVDs sent to you via mail -- into a downward spiral that culminated in both of their filing for the 'bad' kind of bankruptcy (Chapter 7 -- except Blockbuster sidestepped the liquidation process through a hail-mary deal with Dish Network).

When Reed Hastings launched Netflix back in 1997 -- he didn't have his sights set on obsoleting an industry (and destroying two hundred-million dollar companies in the process) -- his goal was, and still is, to revolutionize and disrupt entertainment. He wanted to bring one of the first industries to cash in on technology, in entertainment, up to speed with the digital age. Hollywood will be the first, albeit the most salesman-like, to admit that the studios are not built to keep speed with today's innovation curve. For years, studios have run via antiquated, legacy processes that leak inefficiencies from its poorly patched over seams. It was only a matter of time before someone realized that the customers of the industry, the ones who ultimately determine how the industry will spend its money, are hungry to consume TV and Movies the same way they do everything else -- via their devices. Netflix was the first to open these floodgates, and, since they introduced streaming in 2007, studios have been either playing catch up by thinking up ways to compete with Netflix, or thinking up ways they can ensure Netflix doesn't impact its core businesses -- production and distribution -- and thus its core revenue.

Fortunately for the studios, for many years, it seemed like Netflix was only going to impact the rental companies. Netflix being there actually helped them. By allowing customers to have content at their fingertips at all times, Netflix gave the studios a new vehicle for their films to find niche audiences. Netflix also materialized the renaissance of television that HBO ushered in nearly 20 years ago with The Sopranos, and its ensuing stream of film-grade television series. The ability to have a series on Netflix, as evidenced by the Flix-induced colossal popularity of shows like Breaking Bad,  gave financial justification to the investment it would take to produce a series with the quality of resources studios do for feature films.

Kevin Spacey (L), Robin Wright, and Netflix CEO Reed Hastings (R)

At some point, it's hard to tell when, Netflix got wise to the fact that its platform had become a cash cow for nearly every network, and it reacted by making the landmark decision to produce its first piece of original content: House of Cards. To many consumers, this decision was surprising and unwelcome, but the proof was in the pudding, as the series proved to be an enormous critical success -- due in large part by its A-List leading man (Kevin Spacey) and director (David Fincher - The Social Network, Gone Girl). HOC opened the door -- not just for Netflix, but all streaming services (Amazon, Hulu, etc.) -- to produce original content. The obvious threat here, now, is directly to the studios. Although HOC was a TV show, this was evidence that they had the resources and infrastructure to undercut the entire industry's robust process by packaging every piece of it -- from pre-production to distribution -- in one place.

Since the 2013 release of HOC Netflix has released over 100 more original productions, including a handful of feature films (most notably Beasts of No Nation). None of them have been released in theaters. The conundrum, though, is that the film industry -- from the perspective of revenue -- has been growing rather consistently, and is projected to continue to do so (by accounting firm PWC) through at least 2019.

US Film Industry Total Revenue - Actual and Projected (2010 - 2019)

So, then, what should the studios do? Stop releasing films in theaters? The answer, at least in the short term, is absolutely not. global box office, not just industry revenue, has been steadily climbing, too, and shows no signs of slowing down. And, the lone streaming service that has seen some tangible success in feature film production, Amazon, has done so primarily because its chosen to expose audiences to its films via theaters before allowing them to stream on their devices (this has been true for the class of films that studios are worried about streaming services taking away from theaters, like this years heralded Manchester by the Sea).

While Netflix has certainly revolutionized entertainment for good, and will likely have a more substantial impact on the film industry than we've seen, it doesn't appear like it will do away with theaters any time soon, so, in that respect, it seems like the studios have little to fear.

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Sources:

Variety

Fortune

TV.com

Why Voice Recognition Hates People with Disabilities

As someone who has a speech impediment, I sometimes find it difficult to use the speech recognition software that has become so ubiquitous in our everyday lives. This software can be found in devices like the Amazon Echo, Apple's Siri, the Google Home, and many other bluetooth and home devices.

Some examples of these speech impediments are stuttering, dysarthria, cerebral palsy, brain injuries, vocal cord paralysis, and apraxia.

There are about 9 million people in the U.S. with speech issues and just about all of the speech recognition technologies are not made to help those people be understood. Todd Mozer, CEO of a company called Sensory, says that, "Speech recognizers are targeted at the vast majority of people at that center point on a bell curve. Everyone else is on the edges.” To make matters even worse, speech impediments can very much be different for every person, which would make it even harder for companies to tailor their technologies to these people.

There are several solutions out there some companies have been trying, but their focus is still not on the smaller part of the population who has these issues. In 2012, some companies began using neural networks to power their products. These networks learn from a variety of speech samples and predictable patterns. Some of these newer technologies only have about an 8% error rate.

Some other companies are looking into lip reading technologies, which would be a small fix (because some speech issues have to do with motor skills, which may make your speech unreadable) but it would nonetheless be a supplement to the technology they are already using.

As data becomes more available in the realm of speech recognition software, we can only hope that companies will implement that data to create a more inclusive environment for those of us who aren't so lucky to have fluent speech. Check out these two videos below that poke some fun at speech recognition technologies.

P2Pe Description and Protection

A P2P solution for a business is a way encryption through algorithmic calculations to secure payment card information including everything given by the simple swipe of a credit card.

With this type of encryption, businesses provide P2Pe solutions that follow a type of standard that must hold in order for a business to correctly use P2P to transfer their customers payment card information. This type of solution must include certified devices, processes and services that may be offered by a third party consultant or organization.

An example of a way of standards or certifications is the PCI standards, also known as the PCI Security Standards council (https://www.pcisecuritystandards.org/). PCI standards must follow the following standards:

• Secure encryption of payment card data at the point-of-interaction (POI) 
• P2PE-validated application(s) at the point-of-interaction 
• Secure management of encryption and decryption devices 
• Management of the decryption environment and all decrypted account data 
• Use of secure encryption methodologies and cryptographic key operations, including key generation, distribution, loading/injection, administration and usage. 

Any company wishing to help establish a P2P connection must go through the right processes and services to ensure their clients and/or customers have a certified/standard following P2P encryption for the businesses customers' payment card information.

Although these standards to exist, and are implemented across many businesses, these standards do not have to be established by a third party company such as PCI. Companies follow PCI's standards because these standard shows their customers that the business is securing their payment card information. With that being said, businesses gathering payment card information must have a P2P connection to ensure their customer's payment card information is secure from unwanted hackers. The standards of a P2P connections can be self-assessed on a business or needs a third party, depending different factors such as size of business, type of business, etc.

For more information, here is a video on P2P Encryption standards, and the link below is on how to secure your data stream with P2P Encryption:



Securing Your Data Stream with P2P Encryption

Thank you!

Why the security of IoT is lacking, and what is being done about it

In my tech briefing, I will focus on the security of the internet of things (IoT) and why companies do not go to any great lengths to make secure devices. The biggest reason isn’t necessarily that companies don’t think of securing these devices, but that it is a secondary concern. Because the adoption of these ‘smart’ devices is so rapid, companies are moving fast to push out products without the same rigorous security testing that is conducted on more mature products like smartphones or servers.

AT&T’s Cybersecurity Insights Report surveyed more than 5,000 companies worldwide, 85% of which were in the process of deploying IoT devices, and only 10% of those surveyed felt confident that they could secure them. Many of these companies are much smaller and do not even have security professionals on their payroll, instead using third-party electronics that may or may not have been tested for security.

Devices considered in the IoT range from washers and dryers to thermostats. Recently the most popular devices are those like Amazon's Alexa-powered Echo in-home speaker. Devices like these are extremely attractive, making virtually everything just one voice command away. It is also devices like these that can be the most vulnerable.

Amazon has around 250 devices that are certified to work with Alexa, and Amazon has encouraged a rapid development of these devices. All companies need to do to get this certification is write code and submit it to Amazon for review. Although they do require physical testing, they allow that testing to happen at third-party locations. Once Amazon reviews the code and the products are physically tested, they give a decision on giving it the "Works with Alexa" stamp of approval within 10 days. Even though devices can go through the process to get this stamp of approval, they do not need to to be able to be used with Alexa; it is more of a certification that helps market their product.

One of Amazon's competitors in this market, Apple, only has around 100 devices that can be used with its HomeKit. In order to be certified for use with HomeKit, devices need to use a special HomeKit chip, and specific WiFi and Bluetooth chips. Their method can be substantially more expensive, can take 3-5 months, and device makers are not allowed to publicly announce they are seeking HomeKit certification. These restrictions tend to be off-putting to developers, however those that do endure the process believe it is well worth it. CEO of Nanoleaf (a smart lighting system), Gimmy Chu, said, "they found issues with our product before we released it that we didn't find in our testing. We know that after we have the certification that it's rock solid."

Amazon acknowledges that unlike Apple, it can't guarantee the security of third-party devices. This strongly backs the aforementioned reason for lack of security being to simply get devices on the market, even if it means security taking a back seat. The good news is now that it is a very well-known issue that many devices are not secure, larger companies like Belkin are starting to respond to and patch these issues. This won't be something that can be fixed overnight, and going forward, hopefully companies will start to put security before profit.

Sources:

Defining the IoT Security

Why IoT Security is So Critical (TechCrunch)

The IoT Threat to Privacy (TechCrunch)

How the Internet of Things will affect security & privacy

Apple strategy in 'smart home' race threatened by Amazon

Apple and Amazon Adopt Opposing Strategies as Smart Home War Heats Up