04__Blockchain_lite.md

title
blockchain-lite library - Build Your Own Blockchains with Crypto Hashes

Revolutionize the world with blockchains, blockchains, blockchains one block at a time!

github: openblockchains/blockchain.lite.rb, rubygems: blockchain-lite, rdoc: blockchain-lite ++ more: comments on reddit, please!

What's a Blockchain?

A blockchain is a distributed database with a list (that is, chain) of records (that is, blocks) linked and secured by digital fingerprints (that is, crypto hashes).

See the Awesome Blockchains page for more.

Let's Get Started.

Build your own blockchain one block at a time. Example:

require 'blockchain-lite'

b0 = Block.first( 'Genesis' )
b1 = Block.next( b0, 'Transaction Data...' )
b2 = Block.next( b1, 'Transaction Data......' )
b3 = Block.next( b2, 'More Transaction Data...' )

blockchain = [b0, b1, b2, b3]

pp blockchain

will pretty print (pp) something like:

[#<Block:0x1eed2a0
  @index         = 0,
  @timestamp     = 2017-09-15 20:52:38,
  @data          = "Genesis",
  @previous_hash = "0",
  @hash          ="edbd4e11e69bc399a9ccd8faaea44fb27410fe8e3023bb9462450a0a9c4caa1b">,
 #<Block:0x1eec9a0
  @index         = 1,
  @timestamp     = 2017-09-15 20:52:38,
  @data          = "Transaction Data...",
  @hash          = "eb8ecbf6d5870763ae246e37539d82e37052cb32f88bb8c59971f9978e437743",
  @previous_hash = "edbd4e11e69bc399a9ccd8faaea44fb27410fe8e3023bb9462450a0a9c4caa1b">,
 #<Block:0x1eec838
  @index         = 2,
  @timestamp     = 2017-09-15 20:52:38,
  @data          = "Transaction Data......",
  @hash          = "be50017ee4bbcb33844b3dc2b7c4e476d46569b5df5762d14ceba9355f0a85f4",
  @previous_hash = "eb8ecbf6d5870763ae246e37539d82e37052cb32f88bb8c59971f9978e437743">,
 #<Block:0x1eec6d0
  @index         = 3,
  @timestamp     = 2017-09-15 20:52:38
  @data          = "More Transaction Data...",
  @hash          = "5ee2981606328abfe0c3b1171440f0df746c1e1f8b3b56c351727f7da7ae5d8d",
  @previous_hash = "be50017ee4bbcb33844b3dc2b7c4e476d46569b5df5762d14ceba9355f0a85f4">]

Blocks

Supported block types / classes for now include basic and proof-of-work.

Basic

class Block

  attr_reader :index
  attr_reader :timestamp
  attr_reader :data
  attr_reader :previous_hash
  attr_reader :hash

  def initialize(index, data, previous_hash)
    @index         = index
    @timestamp     = Time.now.utc    ## note: use coordinated universal time (utc)
    @data          = data
    @previous_hash = previous_hash
    @hash          = calc_hash
  end

  def calc_hash
    sha = Digest::SHA256.new
    sha.update( @index.to_s + @timestamp.to_s + @data + @previous_hash )
    sha.hexdigest
  end
  ...
end

Comments from the reddit ruby posting:

Wait, so a blockchain is just a linked list?

No. A linked list is only required to have a reference to the previous element, a block must have an identifier depending on the previous block's identifier, meaning that you cannot replace a block without recomputing every single block that comes after. In this implementation that happens as the previous digest is input in the calc_hash method.

Proof-of-Work

class Block

  attr_reader :index
  attr_reader :timestamp
  attr_reader :data
  attr_reader :previous_hash
  attr_reader :nonce        ## proof of work if hash starts with leading zeros (00)
  attr_reader :hash

  def initialize(index, data, previous_hash)
    @index         = index
    @timestamp     = Time.now.utc    ## note: use coordinated universal time (utc)
    @data          = data
    @previous_hash = previous_hash
    @nonce, @hash  = compute_hash_with_proof_of_work
  end
  ...
end

Let's add a proof of work to the blockchain. In the classic blockchain you have to compute a block hash that starts with leading zeros (00). The more leading zeros the harder (more difficult) to compute. Let's keep it easy to compute with two leading zeros (00), that is, 16^2 = 256 possibilites (^1,2). Three leading zeros (000) would be 16^3 = 4_096 possibilites and four zeros (0000) would be 16^4 = 65_536 and so on.

(^1): 16 possibilties because it's a hex or hexadecimal or base 16 number, that is, 0 1 2 3 4 6 7 8 9 a (10) b (11) c (12) d (13) e (14) f (15).

(^2): A random secure hash algorithm needs on average 256 tries (might be lets say 305 tries, for example, because it's NOT a perfect statistic distribution of possibilities).

Example:

def compute_hash_with_proof_of_work( difficulty="00" )
  nonce = 0
  loop do
    hash = calc_hash_with_nonce( nonce )
    if hash.start_with?( difficulty )  
      return [nonce,hash]     ## bingo! proof of work if hash starts with leading zeros (00)
    else
      nonce += 1              ## keep trying (and trying and trying)
    end
  end
end

def calc_hash_with_nonce( nonce=0 )
  sha = Digest::SHA256.new
  sha.update( nonce.to_s + @index.to_s + @timestamp.to_s + @data + @previous_hash )
  sha.hexdigest
end

Let's rerun the sample with the proof of work machinery added. Now the sample will pretty print (pp) something like:

[#<Block:0x1e204f0
  @index         = 0,
  @timestamp     = 1637-09-20 20:13:38,
  @data          = "Genesis",
  @previous_hash = "0",
  @nonce         = 242,
  @hash          = "00b8e77e27378f9aa0afbcea3a2882bb62f6663771dee053364beb1887e18bcf">,
 #<Block:0x1e56e20
  @index         = 1,
  @timestamp     = 1637-09-20 20:23:38,
  @data          = "Transaction Data...",
  @previous_hash = "00b8e77e27378f9aa0afbcea3a2882bb62f6663771dee053364beb1887e18bcf",
  @nonce         = 46,
  @hash          = "00aae8d2e9387e13c71b33f8cd205d336ac250d2828011f5970062912985a9af">,
 #<Block:0x1e2bd58
  @index         = 2,
  @timestamp     = 1637-09-20 20:33:38,
  @data          = "Transaction Data......",
  @previous_hash = "00aae8d2e9387e13c71b33f8cd205d336ac250d2828011f5970062912985a9af",
  @nonce         = 350,
  @hash          = "00ea45e0f4683c3bec4364f349ee2b6816be0c9fd95cfd5ffcc6ed572c62f190">,
 #<Block:0x1fa8338
  @index         = 3,
  @timestamp     = 1637-09-20 20:43:38,
  @data          = "More Transaction Data...",
  @previous_hash = "00ea45e0f4683c3bec4364f349ee2b6816be0c9fd95cfd5ffcc6ed572c62f190",
  @nonce         = 59,
  @hash          = "00436f0fca677652963e904ce4c624606a255946b921132d5b1f70f7d86c4ab8">]

See the difference? All hashes now start with leading zeros (00) and the nonce is the random "lucky number" that makes it happen. That's the magic behind the proof of work.

Transactions

Let's put the transactions from the (hyper) ledger book from Tulips on the Blockchain! on the blockchain:

From	To	What	Qty
Dutchgrown (†)	Vincent	Tulip Bloemendaal Sunset	10
Keukenhof (†)	Anne	Tulip Semper Augustus	7
Flowers (†)	Ruben	Tulip Admiral van Eijck	5
Vicent	Anne	Tulip Bloemendaal Sunset	3
Anne	Julia	Tulip Semper Augustus	1
Julia	Luuk	Tulip Semper Augustus	1
Bloom & Blossom (†)	Daisy	Tulip Admiral of Admirals	8
Vincent	Max	Tulip Bloemendaal Sunset	2
Anne	Martijn	Tulip Semper Augustus	2
Ruben	Julia	Tulip Admiral van Eijck	2
Teleflora (†)	Max	Tulip Red Impression	11
Anne	Naomi	Tulip Bloemendaal Sunset	1
Daisy	Vincent	Tulip Admiral of Admirals	3
Julia	Mina	Tulip Admiral van Eijck	1

(†): Grower Transaction - New Tulips on the Market!

b0 = Block.first(
        { from: "Dutchgrown", to: "Vincent", what: "Tulip Bloemendaal Sunset", qty: 10 },
        { from: "Keukenhof",  to: "Anne",    what: "Tulip Semper Augustus",    qty: 7  } )

b1 = Block.next( b0,
        { from: "Flowers", to: "Ruben", what: "Tulip Admiral van Eijck",  qty: 5 },
        { from: "Vicent",  to: "Anne",  what: "Tulip Bloemendaal Sunset", qty: 3 },
        { from: "Anne",    to: "Julia", what: "Tulip Semper Augustus",    qty: 1 },
        { from: "Julia",   to: "Luuk",  what: "Tulip Semper Augustus",    qty: 1 } )

b2 = Block.next( b1,
        { from: "Bloom & Blossom", to: "Daisy",   what: "Tulip Admiral of Admirals", qty: 8 },
        { from: "Vincent",         to: "Max",     what: "Tulip Bloemendaal Sunset",  qty: 2 },
        { from: "Anne",            to: "Martijn", what: "Tulip Semper Augustus",     qty: 2 },
        { from: "Ruben",           to: "Julia",   what: "Tulip Admiral van Eijck",   qty: 2 } )
...

resulting in:

[#<Block:0x2da3da0
  @index              = 0,
  @timestamp          = 1637-09-24 11:40:15,
  @previous_hash      = "0",
  @hash               = "32bd169baebba0b70491b748329ab631c85175be15e1672f924ca174f628cb66",
  @transactions_count = 2,
  @transactions       =
   [{:from=>"Dutchgrown", :to=>"Vincent", :what=>"Tulip Bloemendaal Sunset", :qty=>10},
    {:from=>"Keukenhof",  :to=>"Anne",    :what=>"Tulip Semper Augustus",    :qty=>7}]>,
 #<Block:0x2da2ff0
  @index              = 1,
  @timestamp          = 1637-09-24 11:50:15,
  @previous_hash      = "32bd169baebba0b70491b748329ab631c85175be15e1672f924ca174f628cb66",
  @hash               = "57b519a8903e45348ac8a739c788815e2bd90423663957f87e276307f77f1028",
  @transactions_count = 4,
  @transactions       =
   [{:from=>"Flowers", :to=>"Ruben", :what=>"Tulip Admiral van Eijck",  :qty=>5},
    {:from=>"Vicent",  :to=>"Anne",  :what=>"Tulip Bloemendaal Sunset", :qty=>3},
    {:from=>"Anne",    :to=>"Julia", :what=>"Tulip Semper Augustus",    :qty=>1},
    {:from=>"Julia",   :to=>"Luuk",  :what=>"Tulip Semper Augustus",    :qty=>1}]>,
 #<Block:0x2da2720
  @index              = 2,
  @timestamp          = 1637-09-24 12:00:15,
  @previous_hash      = "57b519a8903e45348ac8a739c788815e2bd90423663957f87e276307f77f1028",
  @hash               = "ec7dd5ea86ab966d4d4db182abb7aa93c7e5f63857476e6301e7e38cebf36568",
  @transactions_count = 4,
  @transactions       =
   [{:from=>"Bloom & Blossom", :to=>"Daisy",   :what=>"Tulip Admiral of Admirals", :qty=>8},
    {:from=>"Vincent",         :to=>"Max",     :what=>"Tulip Bloemendaal Sunset",  :qty=>2},
    {:from=>"Anne",            :to=>"Martijn", :what=>"Tulip Semper Augustus",     :qty=>2},
    {:from=>"Ruben",           :to=>"Julia",   :what=>"Tulip Admiral van Eijck",   :qty=>2}]>,
 ...

That's it. Now revolutionize the world with blockchains one block at a time.