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A Distributed Ledger for Gamification of Pro-Bono Time

Written by Anonymous

Paper category

Master Thesis


Computer Science




Thesis: Distributed Ledger Technology Distributed Ledger Technology (DLT) is a form of peer-to-peer network in which the ledger is replicated to all participating nodes distributed in multiple sites, countries or institutions. The chain usually consists of copied, shared, and synchronized data, and using DLT, there is no need for a trusted third party to verify, process, or verify transactions. Each participant can access and own a copy of the ledger, and if any changes are made or new copies added to the ledger will be distributed to each participant within a few seconds. Centralized ledgers are more vulnerable to cyber attacks, while DLT is more difficult to manipulate them through attacks. In order for the attack to succeed, each distributed copy of the ledger needs to be attacked at the same time. Even if this is possible, DLT can resist malicious changes by a single person or party. Figure 1 illustrates two types of networks and two types of distributed ledgers. On the left is a centralized network. All data is stored centrally on the right of the centralized network. We are a decentralized network, where data is distributed across multiple nodes in the network. The two ledgers on the right are two different types of distributed ledgers . The red one is a public ledger in which each node or user is anonymous and can participate in confirming transactions through methods called mining or equity. The blue is a private ledger in which peers or users cannot be anonymous. In order to participate in confirming transactions, users must obtain permission. Compared with centralized and decentralized ledgers, both types of ledgers increase security because these ledgers are usually completely decentralized, which means that each node has a copy of the ledger . Due to the number of validators that can contribute to the consensus process, the public ledger will be the most secure. 2.2 Blockchain The first blockchain was implemented by an individual or group under the pseudonym Satoshi Nakamoto in 2008/2009 to create the well-known cryptocurrency Bitcoin. Blockchain is just an implementation of distributed ledger, which means that all data stored on the blockchain is distributed across multiple sites or nodes. Therefore, the blockchain is a distributed ledger of economic transactions, which can be programmed to record all valuable things, such as financial transactions or agreements in the form of contracts. [1] All transactions are stored on the ledger and sorted in time. This ledger will then be replicated on all nodes connected to the blockchain. If the transaction is a valid transaction, the transaction is accepted and then grouped into blocks stored on the blockchain. In order to store this block, it needs to obtain an ID, which can be found in different ways, but usually requires the help of proof of work. 2.2.1 Blockchain implementation Before introducing you to different types of consensus processes (such as proof of work), it is best to understand some of the different blockchains that use these different types of consensus methods. Perhaps the one who knows blockchain and cryptocurrency best is Bitcoin. Bitcoin is the first of its kind, allowing payments to be made directly between users without a trusted third party, which gives the world a taste of the future. The blockchain is a peer-to-peer network that uses proof-of-work consensus to verify transactions between users and works as a fully decentralized ledger. As Bitcoin became more and more popular, other companies found interest in developing their own blockchains, and then Ethereum appeared. Ethereum, which is similar to Bitcoin, has its own cryptocurrency called Ether or Gas. But what makes these different is that Ethereum uses a proof-of-stake consensus method and so-called smart contracts. Ethereum introduces a new smart contract into the blockchain world. The Ethereum project is not only a cryptocurrency blockchain, but also an engine for applications that can run without a trusted third party. These smart contracts are developed in a language called Solidity, which is specifically designed for this purpose. Recently, people have talked a lot about the new blockchain, NEO. The blockchain was established in China in 2014 under the name Antshares, but was later renamed NEO. The special thing about this blockchain is that they take smart contracts to a new level. As mentioned earlier, Ethereum smart contracts must be developed using Solidity, while smart contracts on the NEO blockchain can be developed using some high-level languages, such as javascript, C#, Java, etc. You no longer need to learn a unique language to develop Smart contracts. [5] NEO also uses another consensus method called Delegated Byzantine Fault Tolerance (dBFT). The ultimate goal of NEO Smart Economy is to seamlessly integrate the traditional economy and the digital economy, allowing all assets to flow freely. 2.2.2 Proof of Work Proof of work is used by Bitcoin and is the most popular of the two. In this step, the node is calculating advanced mathematical problems, and the goal is to find the ID of the next block in the blockchain. This calculation requires the ID of the previous block to calculate the ID of the next block, which makes the blockchain immutable, because if someone wants to change a block, you need to calculate the ID of each previous block. Each node participating in the proof-work consensus competes to solve mathematical problems. The first node to solve the problem for the block will be rewarded. 2.2.3 Proof-of-stake Others' Proof-of-stake uses very different methods to verify transactions. Read Less