Trust without Trust — Blockchain, The Fundamental Building Block of Metaverse & Industry 5.0

In Summary
- Having trust without trust: decentralization through distributed consensus mechanism with Blockchain; Proof-of-Work (PoW), Proof-of- Stake (PoS.
- Blockchain-based crytocurrency: bitcoin, ethereum.
- Blockchain-based digital asset: NFT.

Distributed System

Let's now take a look at a different implementation, the distributed system — in which there is no single point of failure, such as in the centralized system.

  • Components in the system (e.g., nodes) process information concurrently.
  • Each node maintains its clock; there is no global clock like centralized systems.
  • Protocols protect against the potential failure of individual components.
Factory automation: Four PLCs (four nodes or four processes) determine the output ("Go" or "No-Go") based on sensory input.

Safety and Liveness Properties

In the distributed system, there are two properties: safety and liveness. These two properties determine correctness (edx, 2018).

  • Safety: "This will not happen" the system will not do bad things.
  • Liveness: "This must happen" the system will eventually do good things.

Consensus Mechanism in Distributed System

There are three factors to achieve correctness: validity, agreement, and termination. Correctness is defined as achieving its intended goal.

  • Validity — Any value to be decided must be proposed by one of the processes.
  • Agreement — All non-faulty processes must agree on the same value.
  • Termination — All non-faulty processes eventually decide on a value.

Blockchain

If we talk about the origin of blockchain, we usually refer to Satoshi Nakamoto, who introduced bitcoin in a 2008 whitepaper and later implemented the first blockchain network, Bitcoin. Nakamoto was active until 2010 (Wikipedia, 2022a). Since then, many have claimed to be Nakamoto.

Blockchain as part of Distributed Database system. In contrast with the Centralized Database system (edx, 2018), (Ethereum.org, 2022).

How blockchain works — An Illustration

The following two excellent demo videos show how blockchain works in principle.

Blockchain 101 — A Visual Demo (Anders Brownworth, 2017a).
Blockchain 101 — Part 2 — Public / Private Keys and Signing (Anders Brownworth, 2017b).

Consensus Mechanism in Blockchain

The blockchain has two leading consensus mechanisms: Proof-of-Work (PoW) and Proof-of-Stake (PoS). For years, due to the massive demand for computing power in current implementations, efforts have been underway to transition from PoW to PoS.

Differences: Proof-of-Work and Proof-of-Stake (edx, 2018).

Blockchain-based Cryptocurrency

Bitcoin — BTC

Block 730244: The successful mining in the Bitcoin blockchain on April 3, 2022, at 7:36 PM GMT+7.
Block 14517465: The successful mining in the Ethereum blockchain on April 4, 2022, at 11:49 AM GMT+7.

Blockchain-based Digital Asset — NFT

NFT (Non-Fungible Token) implements blockchain to create trusted digital assets as a unique cryptographic token. The network allows anybody in the blockchain network to verify the digital asset's ownership "digital certificate" as the history of ownership is recorded in the blockchain. The digital certificate can represent the actual physical assets or digital assets, or both.

NFT Creation & Usage (Stephanie Glen, 2021).
Docking Ship — an NFT on Opensea Marketplace https://opensea.io/assets/matic/0x2953399124f0cbb46d2cbacd8a89cf0599974963/112797015316703422565884014352262991504386206174155850827412603785144761843713/.

Blockchain and Metaverse

Many technologies support the Metaverse ecosystem (which becomes the business and investment opportunities). Blockchain is one of them.

The seven layers of the Metaverse (Jon Radoff, 2021a).

Blockchain and Industry 5.0

As part of the top technology enablers, Blockchain (to be more precise: Industrial Blockchain) will play a key role during the transition from Industry 4.0 to Industry 5.0. Other technology enablers include drones, exoskeletons, additive technology, 5G, and mixed realities (Frost and Sullivan, 2019).

Industrial Blockchain is part of the top technology enablers in Industry 5.0.
The transition from Industry 4.0 to Industry 5.0.

Moving On

The distributed consensus mechanism enables trust without trust in the blockchain network. Major implementations have been utilizing the Proof-of-Work consensus mechanism, such as in the most significant two blockchain networks: Bitcoin and Ethereum.

Scaling Up Blockchain

A centralized system can be highly scalable as transaction volume increases (the need for processing higher TPS — transactions per second: e.g., hundreds or thousands of TPS).

Each block size is 1 MB, 546 bytes are generated per transaction, and per block is created every 10 minutes on average (edx, 2018).

References

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store