Cryptography

Cyrptographic Hashing

1. What is hashing?
2. Why do we use it?

Ethereum is full and using it is expensive

Definition

Takes a message/text of arbitrary length and generates a fixed length output or "digest"  

Properties

1. Deterministic (i.e., not random)
   • the same message always generates the same digest
2. Fast
   • you don't need much time/many computing cycles to compute a hash
3. "unpredictable"
   • if two messages are similar, their digests should look very different
4. not invertible
   • there is no inverse function, i.e., you cannot analytically infer the message from the digest,  nor can an attacker find the message from the digest efficiently by searching (it's VERY hard).
5. ​Collision resistant
   • an attacker cannot find two messages that have the same digest in "normal" time.

Simple Application

• Databases should not store user passwords and usernames in plain text
  • => attacker could immediately impersonate every user
• Store as a hash: attacker cannot easily invert the username & password

What hashing functions are there

• Many!
• MD5
• SHA1 (better than MD5)
• SHA256 (better than MD5)
  • output of 256 bits; 4 bit= 1 characters => 64 characters (hexadecimals)
  • developed by the NSA
  • Code, e.g., https://www.movable-type.co.uk/scripts/sha256.html
• SHA512
• RIPEMD-160 (for 160 bit output)

Demo time!

https://andersbrownworth.com/blockchain/

Why are hashing functions used in blockchain?

1. efficient way to represent data
   • always same-length output
   • => good convention
2. small changes to data trigger large changes in hash
   • (recall the demonstration)
   • => easy to check consistency 
3. they work as "pointers"
   • each block contains a hash of the past block
   • this hash is a pointer
   • pointers make searches easy
4. Hashes of hashes are used to simplify data storage
   • the process of hashing hashes repeatedly creates the "Merkle Tree" 

Encryption

• Problem: send message M that you want no-one to be able to read 
• Basic idea:
  • should be easy to decrypt with the right tool
  • hard to decrypt without it

Alice wants to send Bob money without Charles seeing it

SYMMETRIC: Alice and Bob use the same key to 

encrypt and decrypt a message

ASYMMETRIC: Bob has a public and a private key

Public

Private

Digital Signatures

• Problem: send message and ensure that the other side believes that you sent this particular message
  • worry about manipulation
  • other side may worry about proving what you did, etc.
  • => want to digitally sign the message
• As with encryption:
  • should be easy to prove that you signed 
  • hard to forge your signature

Alice wants to send Bob message and provide proof that it's her 

Uses

• Transaction authorization
• Governance votes
• Consensus protocol votes

Types

• RSA (Rivest-Shamir-Adleman)
  • old school, fast to verify, long keys
  • not used in blockchain
• Elliptic curve
  • shorter keys for same level of security as RSA
  • Ethereum, Bitcoin
• BLS (Boneh–Lynn–Shacham)
  • multiple pub keys and messages into one signature!
  • Ethereum 2.0 

Summary

The main cryptographic primitives

• Collision-resistant hash functions
• Digital signatures

But it doesn't end here...

zk-SNARKS

• Used for privacy and to some extent for scaling
• Covered later in the course

Proof-of-Stake

Proof of X

Proof of Stake (PoS) - What is the goal?

Validation and leader election

Validation and leader election

random

random

random

Committee 1

Committee 2

random

Block formation

Committee 1

Committee 2

...

Committee 32

attest

attest

Slot 1

Slot 2

Slot 32

...

12 seconds

Finality!

...

checkpoint

...

vote

vote

Security

What do we need from validators?

1. Participation
2. Honesty

Security

What is dishonest?

1. Propose multiple blocks for single slot
2. Contradictory attestations

What about forks??

B3

B1

B2

B4

PoS vs PoW

https://ethereum.org/en/developers/docs/consensus-mechanisms/pos/