Just follow the instructions that is in the word document. I submitted two files.
Blockchain – Hashing & Distributed Ledger Activity
In this Blockchain Activity, we will learn the basics of blockchain technology and apply our knowledge in an accounting context. We outline specific learning objectives for this activity as follows:
Learning Objectives [Slide 2]1
- LO1:Thestudentwillgainabasicunderstandingofblockchainsandthreetechnologiesassociated with blockchains (peer-to-peer networking, public key cryptography, andproof-of-work):
- LO1a: The student will understand concepts related to peer-to-peernetworking.
- LO1b: The student will gain a basic understanding of SHA-256 hashing, a nonce, and how it applies to public keycryptography
- LO1c:Thestudentwillunderstandtheroleofproof-of-workinmanagingtheimmutability of theblockchain.
- LO2: The student will understand concepts associated with a distributed ledger and how a blockchain can be used to create a distributedledger.
- LO3: The student will apply the blockchain concepts and understand the implications of blockchains toaccounting.
1 Slide numbers [in brackets] serve as a reference point and guide as you complete the activity.
Learning Objectives
Part 1: “Preparation”- Understanding Blockchains and Bitcoins
[Slides 3-32]
Introduction to Blockchain [Slides 3-4]
Let’s start by watching a video on bitcoins: Bitcoin: How Cryptocurrencies Work (SciShow) (9:24) https://www.youtube.com/watch?v=kubGCSj5y3k
ABlockchainprotocoloperatesontheInternetusingaP2PnetworkofcomputersthatruntheBlockchain protocol and hold an identical copy of the ledger of transactions, enabling transactions without a middleman though machineconsensus.
Theblockchainitselfisafile–asharedandpublicledgeroftransactionsthatrecordsalltransactionsfrom the genesis block (first block) to thepresent.
In order to understand blockchains, we will focus on understanding three technologies:
- Peer-to-Peer Networking [Slides5-8]
- SHA-256 Hashing, and Cryptography [Slides9-25]
- Proof-of-Work (Game Theory) [Slides26-29]
NotethatBitcoinisaspecificimplementationoftheBlockchainprotocolandutilizesablockchaintostore transactions.
Answer the following questions:
- Inbitcoins,the storestheinformationfromallprevioustransactionsplusthetimestamp
/ ID of the current transactions.
Peer-to-Peer Networking [Slides 6-8]
- What is “Peer-to-Peer Networking?” Find a definition on the Internet and include the source of yourdefinition.
- Which of the following examples use peer-to-peernetworking?
- BitTorrent sites (e.g., The PirateBay)
- Massively Multiplayer Online (MMO) games (e.g., World ofWarcraft)
- Blockchain /Bitcoin
- All of theabove
- True or False: Peer-to-Peer networks are also commonly used for illicit activities such as illegally sharing copyrighted content like movies, music, software orgames.
Hexadecimal, Hashing, and Cryptography [Slides 9 – 13]
- Fill in the following chart. The Decimal System has been completed foryou.
| Numbering System Name | Base | Digits in the Numbering System |
| Decimal System | 10 | { 0,1,2,3,4,5,6,7,8,9 } |
| Hexadecimal System | ||
| Binary System |
- Convert the following numbers to their equivalent numbers in the given base. Hint: You can use the “Programmer” calculator available onWindows.
| Decimal Representation | Binary Representation | Hexadecimal Representation |
| 126 | ||
| 256 | ||
| 255 | ||
| 24 | ||
| 1 | ||
| 12 |
Hashing [Slides 14-25]
- What is hashing? Find a definition on the Internet and include the source of yourdefinition.
- True or False: A hash can be easily decrypted back to the originaltext.
- True or False: Even if only one symbol is changed in a hash input, the algorithm will produce a different hashvalue.
- Go to a SHA-256 Hash Calculator and compute the hash value for the following. Make sure you type the “Hash Input” exactly as specified, with no spaces before or after the inputstring.
Example: https://xorbin.com/tools/sha256-hash-calculator
| Hash Input | SHA-256 Hash |
| Hi | 3639efcd08abb273b1619e82e78c29a7df02c1051b1820e99fc395dcaa3326b8 |
| Blockchain | |
| blockchain | |
| Your First Name and LastName, e.g.“John Jones” (no quotes) |
Proof of Work [Slides 26 – 29]
- What is meant by “Proof of Work” with respect to blockchains and bitcoins? Find a definition from the Internet and cite the source in yourresponse.
- True or False: A hash puzzle is analogous to a combinationlock.
Putting it all together: The Blockchain [Slides 30 – 32]
- Review the Deloitte article: “Democratized trust: Distributed ledgers and the future of value.” Orderthefollowingstepsregardinghowblockchainsworkasdescribedinthearticle(Figure1).
| Step (1-7) | Description |
| Structure: Each block is identified by a hash, a 256-bit number, created using an algorithm agreed upon by the network. A block contains a header, a reference to the previous block’s hash, and a group of transaction. The sequence of linked hashes creates a secure, interdependent chain. | |
| The Chain. When a block is validated, the miners that solved the puzzle are rewarded and the block is distributed though the network. Each node adds the block to the majority chain, the network’s immutable and auditable blockchain. | |
| Transaction: Two parties exchange data; this could represent money, contracts, deeds, etc. |
| Validation. Blocks must first be validated to be added to the blockchain. The most accepted form of validation for open-source blockchains is proof of work – the solution to a mathematical puzzle derived from the block’s header. | |
| Built-in Defense. If a malicious miner tries to submit an altered block, then all of the following (subsequent) blocks would change. The other notes would detect the change and reject the modified block. | |
| Verification: Depending on the network’s parameters, the transaction is either verified instantly or transcribed into a secured record and placed in a queue of pending transactions. | |
| Blockchain mining: Miners try to “solve” the block by making incremental changes to one variable until the solution satisfies a network-wide target. This is called “proof of work” because correct answers cannot be falsified. |
Scenario [Slide 34]
Part 2: ”Do” the Blockchain Activity
[Slides 33-53]
We are creating a blockchain to develop a distributed ledger to track the sales of a candy bar known as “CB1.” Our company sells CB1 at various prices (in U.S. dollars). We want to create an immutable record of the sales transactions (i.e., the transactions cannot be altered).
Key information for this activity includes:
- We will be tracking the date, time, BuyerID, SellerID, asset type, and transactionamount.
- Wehavethreeauthorizedusers(Sally,John,andCaroline)withIDnumbersof(001,002,and003) respectively.
- Wewillbeprocessingfivetransactionsandlinkingthetransactionsintoadistributedledgerbased on blockchainconcepts.
To correctly complete a block in the blockchain, we must perform a hashing task for each transaction. This task consists of three steps: determine the hash input string, determine an appropriate nonce, and record the results.
Assumptions & Difficulty-Level Restriction [Slide 35]
Simplifying Assumptions
- We will only be using the first 8 digits of the hash value in ourblockchain
- Different fields within a transaction are delimited by a“-”
- We only have one transaction perblock.
Difficulty-Level Restriction: Hash value results must start with one single leading “0”.
- Forexample,thehashvale“0abc1234”abidesbyrestrictionbutthehashvalue“1234abc0”does not.
- What nonce willwork?
- In cryptography, a nonce is an arbitrary number that can be used just once in a cryptographiccommunication.
- It is often a random or pseudo-random number issued in an authentication protocol to ensure that old communications cannot be reused in replayattacks.
Transactions
In the following section, you will read each transaction’s details and perform the hashing task previously described.
Transaction #1 [Slides 35-37]
Sally buys a CB1 bar from John for $1.25. This will be the first transaction in our blockchain.
| Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format |
| 6/18/2019 | 14:05:00 | 001 | 002 | CB1 | 1.25 | 06182019-14:05:00-001-002-CB1-1.25 |
Step 1: Determine the Hash Input String
The hash input string consists of {the previous hash + the current transaction + the nonce value}. Note that the three parts of the hash input string (Previous Hash, Current Transaction, Nonce) are delineated by a “+” symbol.
| Previous Hash | + | Current Transaction | + | Nonce |
| 00000000 | 06182019-14:05:00-001-002-CB1-1.25 | xxxx |
Note: Use “00000000” (no quotes) for the “Previous Hash” field in the first block. This identifies a block as the “genesis” (i.e., first) block.
Corresponding Hash Input:
Step 2: Determine the nonce
Problem: What nonce will work for the “xxxx”? Go to a SHA-256 generator site, e.g.: https://www.xorbin.com/tools/sha256-hash-calculator
Task: Find the value of “xxxx” which will return a hashed value starting with a leading “0”
Hash the “transaction information + xxxx” with various values for “xxxx” until you find a nonce that will return a hashed value with a leading 0. In the table below, a nonce of “0000” returns a hash output with a leading “e.” What does a nonce of “0001” and “0002” return? Complete the table below. Hint: Make sure your hash input does not have any extra characters at the end of it, such as a space or a new line. Otherwise, you will get a different hash output.
| Hash Input | Hash Output |
| 00000000+06182019- | |
| 14:05:00-001-002- | |
| CB1-1.25+0000 | |
| 00000000+06182019- | |
| 14:05:00-001-002- | |
| CB1-1.25+0001 | |
| 00000000+06182019- | |
| 14:05:00-001-002- | |
| CB1-1.25+0002 |
Step 3: Record the Results
A nonce of “0002” will work in that it returns a hash output with one leading zero (0). Therefore, we will addthetransactiontothelist;theprevioushashblockis“00000000”;thecurrenthashis“028848af”(the first 8 digits of the hash output); and the nonce is “0002” as illustratedbelow.
Record the information below.
A nonce of “0002” is just one of many possible solutions. For example, a nonce of “0007” would also return an output (hash) with a leading 0.
How do you know which nonce to use?
This is part of the proof of work. All of the nodes in the peer-to-peer network are competing to find a nonce. The first nonce that is found meeting the requirement (i.e. one leading zero) is announced to the network and that miner is awarded a “prize.” The data associated with that nonce are then incorporated into the chain.
Transaction #2 [Slides 38-39]
The next day (6/19/2019), Sally buys another CB1 bar from John for $1.29.
| Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format |
| 6/19/2019 | 12:05:00 | 001 | 002 | CB1 | 1.29 | 06192019-12:05:00-001- 002-CB1-1.29 |
Step 1: Determine the Hash Input String
What is the previous hash (the current hash in Block#1)?
What is the Transaction Format for Transaction#2?
What is the hash input string?
Step 2: Determine the nonce
Whatnoncewillworkforthe“xxxx”toreturnahashwithoneleadingzero?
Hint: You can try various digits, but one nonce that will work is between 0030 and 0050.
Step 3: Record the Results
Once you have found a nonce, fill out the information for Block #2:
Transaction #3 [Slides 40-41]
The next day (6/20/2019), Sally buys another CB1 bar from John for $2.99.
| Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format |
| 6/20/2019 | 11:30:00 | 001 | 002 | CB1 | 2.99 | 06202019-11:30:00-001-002- CB1-2.99 |
Step 1: Determine the Hash Input String What is the previous hash?
What is the Transaction Format for Transaction#3?
What is the hash input string?
Step 2: Determine the nonce
What nonce will work for the “xxxx” to return a hash with one leading zero? Hint: You can try various digits, but one nonce that will work is between 0000 and0020.
Once you have found a nonce, fill out the information for Block #3: Step 3: Record the results
Rogue Transaction #2X [Slides 42 – 44]
Blockchains are immutablein that transactions cannot be altered. What if someone wants to change the blockchain?
Let’s go back to Transaction #2 and attempt to modify the transaction.
| ORIGINAL Transaction #2: | The next day (6/19/2019), Sally buys another CB1 bar from John for $1.29 |
| MODIFIED Transaction #2X: | The next day (6/19/2019), Sally buys another CB1 bar from John for $11.29 |
How can we try to change Transaction #2?
The current blockchain looks like this, with Block #2 containing the price of $1.29. Verify that your values for blocks 1, 2, and 3 match the figure below (assuming you identified the same nonce values).
We now want to modify Block 2 to have a price of $11.29. In Block 2, this will impact the CURRENT HASH and the NONCE, as well as have implications for Block 3.
Step 1: Determine the Hash Input String What is the previous hash?
What is the Transaction Format for Transaction#2?
What is the hash input string?
Step 2: Determine the nonce
What nonce will work for the “xxxx” to return a hash with one leading zero? Hint: One nonce that will work is between 0000 and0020.
Step 3: Record the results
Blockchain Resulting from Rogue Transaction #2X [Slides 45-46]
The blockchain now looks like the following, but there is a problem with the link between Block 2x and Block 3. The “Previous Block Hash” in Block 3 refers to the original Block 2 (not Block 2x).
What happens if we just try to replace the “Previous Block Hash” in block 3 (0a1b1079) with the “current hash” from Block 2x (0b394db6)?
Hash the following hash input string, which replaces the “Previous Block Hash” in block 3 with the current hash from Block 2X. Note that we are using the nonce of “0012” which is associated with block 3.
Hash Input:
Hash output:
What is the problem with this hash output?
Transaction #3X [Slides 47-48]
ModifyBlock3sothattheblockchainwillbevalid,i.e.theblockchainwillincludeTransaction#1,#2x,and the modified #3 (called#3x).
Block 3X
Step 1: Determine the Hash Input String What is the previoushash?
What is the Transaction Format for Transaction #3X? (Note: this will be the same as Transaction #3)?
What is the hash input string?
Step 2: Determine the nonce
What nonce will work? Hint: nonce will be between “0000” and“0020”
Step 3: Record the results
Two Blockchain Versions. Which Do We Use? [Slide 49]
At this point, there are 2 versions of the blockchain:
Version1
Version2
Which version is used?
Rememberthateachnodeinthepeer-to-peernetworkcontainsacopyoftheblockchain.Allofthenodes contain Version 1 except for the rogue node which contains Version2.
As only one node contains the rogue transaction, a consensus will be reached by the network that the rogue node is invalid. The nodes in the network will therefore continue using Version 1.
Transaction #4 [Slides 50-51]
For Transactions 4 and 5, use the valid version (Version 1) of the blockchain that does not contain the rogue transactions.
The next day (6/21/2019), Sally buys another CB1 bar from John for $0.99
| Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format |
| 6/21/2019 | 12:00:00 | 001 | 002 | CB1 | 0.99 | 06212019-12:00:00-001- 002-CB1-0.99 |
Step1: Determine the hash input string What is the previous hash?
What is the Transaction Format for Transaction#4?
What is the hash input string?
Step 2: Determine the nonce
What nonce will work? Hint: A valid nonce will be between “0020” and“0039”
What is the hash output string for the working nonce?
Step 3: Record the results
Transaction #5 [Slides 52-53]
Caroline likes the 0.99 price and buys a CB1 bar from John for $0.99 (same day 6/21/2019, two minutes later)
| Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format |
| 6/21/2019 | 12:02:00 | 003 | 002 | CB1 | 0.99 | 06212019-12:02:00-003-002- CB1-0.99 |
Step1: Determine the hash input string What is the previous hash?
What is the Transaction Format for Transaction#5?
What is the hash input string?
Step 2: Determine thenonce
Hint: a working nonce will be between “0001 to “0019” What nonce willwork?
What is the hash output string for the working nonce?
Step 3: Record the results
Part 3a: “Reflect” and “Think” about the Activity
[Slides 54-59]
1. Use the results from the exercise to fill in the table below. [Slides55-56]
Block #1 has been completed for you.
| Block # | Transaction List | Previous Block Hash | Current Hash | Nonce |
| 1 | 06182019-14:05:00-001-002-CB1-1.25 | 00000000 | 028848af | 0002 |
| 2 | 06192019-12:05:00-001-002-CB1-1.29 | |||
| 3 | 06202019-11:30:00-001-002-CB1-2.99 | |||
| 4 | 06212019-12:00:00-001-002-CB1-0.99 | |||
| 5 | 06212019-12:02:00-003-002-CB1-0.99 |
2. Now complete the following table for the rogue blockchain [Slides55-56]
In the rogue blockchain, Transaction 2X alters the purchase price from 1.29 to 11.29. With this change, blocks 3-5 will also be affected.
Note: You will have to hash block 4X and 5X on your own. Block 3X was completed earlier in this exercise.
| Block # | Transaction List | Previous Block Hash | Current Hash | Nonce |
| 1 | 06182019-14:05:00-001-002-CB1-1.25 | 00000000 | 028848af | 0002 |
| 2X | 06192019-12:05:00-001-002-CB1-11.29 | |||
| 3X | 06202019-11:30:00-001-002-CB1-2.99 | |||
| 4X | 06212019-12:00:00-001-002-CB1-0.99 | |||
| 5X | 06212019-12:02:00-003-002-CB1-0.99 |
3. Read the below quotes and answer questions in the boxes provided. [Slides57-59]
The following in italics describe the blockchain associated with bitcoins from Wikipedia (Source: https://en.bitcoin.it/wiki/Block).
As blocks are buried deeper and deeperinto the blockchain they become harder and harderto change or remove, this gives rise of bitcoin’s Irreversible Transactions.
What aspects of the Chocolate Bar activity make it difficult to change a transaction?
Eachblockcontains,amongotherthings,thecurrenttime,arecordofsomeorallrecenttransactions,and a reference to the block that came immediately before it. It also contains an answer to a difficult-to-solve mathematical puzzle – the answer to which is unique to eachblock.
Describe the difficult-to-solve mathematical puzzle in the Chocolate Bar activity. What term is used to describe the answer?
New blocks cannot be submitted to the network without the correct answer – the process of “mining” is essentially the process of competing to be the next to find the answer that “solves” the current block.
In the Chocolate Bar activity, we followed three basic steps: Step 1: Determine the hash string input
Step 2: Determine the nonce Step 3: Record the results
Which step is analogous to the “mining” process?
The mathematical problem in each block is extremely difficultto solve, but once a valid solution is found, it is very easy for the rest of the network to confirm that the solution is correct.
In the Chocolate Bar Activity, how was the difficulty level of the puzzle defined? How do you think the difficulty level could be increased?
In the Chocolate Bar Activity, how can the solution nonce be verified?
In our Chocolate Bar activity, the difficulty level was set by requiring a hash output of just one leading 0. Itisasimplificationtoviewtheproof-of-workprocessastryingtoguessanumberwithaspecificnumber of leading zeros. The following is from DonchoKaraivanov:
The leading zeros
All the talk about the leading zeros comes from the fact that the target number is usually a very large numberwithalotofleadingzeroswhenrepresentedinbinaryformat.Sincethenumberthatminersneed tofindneedstobelowerthanorequaltothetargetnumber,ithasequalormorezeroscomparedtoit.…
Summary
The Bitcoin proof-of-work system is an extremely clever solution to securing a publicly-shared ledger of monetary transactions, while also creating incentives for miners to keep playing the guessing game.
Miners try to guess a random number that is lower than or equal to a target number set by the Bitcoin network. If they guess right, the block they created is appended to the blockchain and they begin work on the next one.
Every 2016 blocks, the target number is adjusted based on the time it took to create the previous 2016 blocks. If it took more than 2 weeks, the difficulty is lowered and vice versa. The goal is to always make it so new blocks are found, on average, every 10 minutes, no matter the combined hash power of all miners in the Bitcoin network.
Andthat’sit.That’showBitcoin’sproof-of-workconsensusmechanismworks.Ifwediveintotheintricacies thingsgetabitmoreconfusingandinteresting,butinthesimplestterms,thesystemisdesignedtosecure Bitcoin’s blockchain from maliciousactors.
Source: https://chainbulletin.com/proof-of-work-explained-in-simple-terms/
TheaboveexcerptdescribeshowBitcoin’sblockchainissecuredfrom“maliciousactors.”Fillintheblanks ontheexplanationofhowtheCandyBarActivitysecuresthelistoftransactionsfrom“maliciousactors.”
Word Bank: Some words may be used more than once.
| Blockchain | Current Block Hash | Four |
| Hash input string | Nonce | Nodes |
| One | Peer-to-Peer | Previous Block Hash |
IntheCandyBaractivity,thetransactionsarestoredinadatastructurecalleda . Each block in the Candy Barblockchaincontains transaction. Each block in the blockchain contains the details on thetransaction,the ,the ,andthe . In this activity, the noncecontains
digits. The iscombinedwiththetransactiondetailsandthe toformthe . The puzzle is solved once the input string produces ahashwith leading zero. The first eight digits of the hash outputbecomesthe and is also stored in the block. In this blockchain, it is difficult for a malicious actor to modify the transaction details. If any part of the transaction detail is modified, then the associatedwiththeblockwillnolongerproduceavalidhashoutput(i.e.anoutputwith
leadingzero)andthereforetheblockwillberejectedbytheother inthe network.
Do you feel more confident about blockchains now? Yes or No
Could you explain the blockchain processes now to someone else? Yes or No or Maybe How did this activity change your understanding of blockchains?
Part 3b: “Think” about Distributed Ledgers
[Slides 60-64]
1. Read the below article from tradix.com. [Slide60]
“The Difference Between Blockchain & Distributed Ledger Technology” Source: https://tradeix.com/distributed-ledger-
technology/#:~:text=The%20most%20important%20difference%20to,not%20require%20such%20a%20chain.&text=A%20distributed%20ledger%20is%20merely,sites%2C%20regions%2C%20or%20participants.
- Answer the following questions based upon your reading. [Slide61-64]
- Are blockchains and distributed ledgers the same? Yes orNo
- What does DLT standfor?
- According to the article, what is the definition of a distributedledger?
- DLT provides a verifiable and auditable history of all information stored on it. True orFalse
- According to the article, Kleenex : facialtissueas : .
- A blockchain is essentially a shared database filled with entries that must be confirmed and encrypted. True orFalse
- Thenameblockchainreferstothe“blocks”thatgetaddedtothechainoftransactionrecords.To facilitate this, the technology uses cryptographic signaturescalleda .
- Distributed ledgers require a blockchain structure. True orFalse
- Distributed ledgers require proof-of-work. True orFalse
- A distributed ledger is merely a typeof
participants.
spread across multiple sites, regions, or
- All blockchains are distributed ledgers, but not all distributed ledgers are blockchains. True or False.
- Blockchain technology offers a way to securely and efficiently create a tamper-proof log of sensitive activity. What are two examples from the article for blockchainsuse?
(1):
(2):
- Blockchains are said to provide an immutable audit trail. This is supported in blockchains by havingdatastoredinaplacewhereno ownsorcontrolsit,andnoonecan what is alreadywritten.
Part 3b: “Think” about Distributed Ledgers
Part 3c: “Apply” Blockchains
[Slides 65-68]
In this part, you will explore additional implications of bitcoins and blockchains.
1. Hash your name to select a topic number. [Slide66]
InPart1,whatwasthehashvalueofyourfirstnameconcatenatedwithyourlastname?
For example, a hash input string of “Maddie Jones” will produce an SHA-256 hash of:
Basedonthehashofyourname,goingfromlefttoright,identifythefirstdigitbetween1and5toidentify yourtopicnumber.Intheexampleabove,thefirstdigitbetween1and5isa“2”so“MaddieJones”would select topic 2below.
2. Prepare a response to the assigned topic question. [Slide67]
Based on your topic number, prepare a short answer response to the question. Unless otherwise instructed, you only need to answer the question number associated with your hash.
Your response should be between 300 – 500 words. Provide the URL of any sites or documents used to answer the question. Post your response to the appropriate Discussion Board or as directed by your instructor.
| Topic Number | Question |
| 1 | What does the IRS think about bitcoins? What are the tax implications of bitcoins? |
| 2 | Do you think bitcoin or another cyber currency will replace existing traditional currency? Why or why not? |
| 3 | Besides bitcoins, what are some practical applications for blockchains? Why are blockchains appropriate in those scenarios? What companies have implemented blockchains and for what purpose? |
| 4 | How will blockchains impact audit? |
| 5 | How will blockchains impact tax? |
Part 3c: “Apply” Blockchains
Part 4: “Apply” Assignment (Bonus)
[Slide 68]
Imagine Your Own Blockchain Accounting Scenario
In this part, you will build your own blockchain! It could be sales, accounts payable, accounts receivable, or a supply chain/WIP series of transactions.
Create your own firm, product, pricing, and reasons for an adjustment of the accounting records. Here youwillapplywhatyoulearnedintheBlockchain/BitcoinActivity.Aswasshownintheexamplefromthe Blockchain/Bitcoin Activity, you are looking for the four-digit nonce that provides a hash beginning with ONE ZERO for the validation of eachblock.
Assumptions & Difficulty-Level Restriction
Simplifying Assumptions
- We will only be using the first 8 digits of the hash value in ourblockchain
- Different fields within a transaction are delimited by a“-”
- We only have one transaction perblock.
Difficulty-Level Restriction: Hash value results must start with one single leading “0”.
- For example, the hash value “0abc1234” would meet this restriction but the hash value “1234abc0” wouldnot.
Your Scenario Details
Determine and record the following items for your blockchain scenario:
- Your firm name andindustry:
- The asset and its price in dollars or bitcoins for the firstblock:
- Seller and Purchaser names/IDnumbers:
- Describe the company background, scenario, and events in a fewsentences:
- To facilitate the creation of your blocks, fill in the following information for each transaction in Table1.
Note:Youmayneedmoreorfewerrows.Indicateroguetransactionsusingredfont.Foradditional guidance, please look at the Activity (Part 2document).
| Description | Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format | |
| 1 | ||||||||
| 2 | ||||||||
| 3 | ||||||||
| 4 | ||||||||
| 5 | ||||||||
| Table 1: Transactions |
*Red font denotes rogue transaction
- Fill in the first row of Table 3 with the appropriate genesis (i.e., first) block information. Remember the following as you complete Table3:
- Remember that the appropriate information includes a correct four digit nonce and the first eight digits of the previoushash.
- Rogue transactions in both tables should be reported in redfont.
- Remember that the appropriate information includes a correct four digit nonce and the first eight digits of the previoushash.
Note: It may be helpful for you to work through Table 2 first. Using the hash calculator of your choice, try different nonce values until you arrive at a hash beginning with a single zero. This will be the first hash. Then repeat these steps for each subsequent block and complete Table 3.
| Previous Hash | + | Current Transaction | + | nonce | |
| 1 | |||||
| 2 | |||||
| 3 | |||||
| 4 | |||||
| 5 | |||||
| Table 2: Hash Input Strings for Each Transaction |
| Hash Input | Hash Output | |
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 | ||
| Table 3: Hash Inputs and Outputs* |
*Red font denotes rogue transaction
Suggested hash calculator: https://xorbin.com/tools/sha256-hash-calculator
Appendix: Summary Documents / Hints
| Description | Date | Time | Buyer ID | Seller ID | Asset | Amount | Transaction Format | |
| 1 | Sally buys a CB1 bar from John for $1.25. | 6/18/2019 | 14:05:00 | 001 | 002 | CB1 | 1.25 | 06182019-14:05:00-001-002-CB1-1.25 |
| 2 | The next day (6/19/2019), Sally buys another CB1 bar from John for $1.29 | 6/19/2019 | 12:05:00 | 001 | 002 | CB1 | 1.29 | 06192019-12:05:00-001-002-CB1-1.29 |
| 2X | The next day (6/19/2019), Sally buys another CB1 bar from John for $11.29 | 6/19/2019 | 12:05:00 | 001 | 002 | CB1 | 11.29 | 06192019-12:05:00-001-002-CB1-11.29 |
| 3 | The next day (6/20/2019), Sally buys another CB1 bar from John for $2.99 | 6/20/2019 | 11:30:00 | 001 | 002 | CB1 | 2.99 | 06202019-11:30:00-001-002-CB1-2.99 |
| 4 | Next day (6/21/2019), Sally buys another CB1 bar from John for $0.99 | 6/21/2019 | 12:00:00 | 001 | 002 | CB1 | 0.99 | 06212019-12:00:00-001-002-CB1-0.99 |
| 5 | Caroline likes the 0.99 price and buys a CB1 bar from John for $0.99(same day 6/21/2019,two minutes later) | 6/21/2019 | 12:02:00 | 003 | 002 | CB1 | 0.99 | 06212019-12:02:00-003-002-CB1-0.99 |
| Table A.1 – Transaction Summary for Part 2 |
| Transaction | Hash Input {8-Digit Previous Hash} + {Current Transaction} + {Nonce} | Nonce Hint |
| 1 | 00000000+06182019-14:05:00-001-002-CB1-1.25+xxxx | Between 0000 to 0019 |
| 2 | 028848af+06192019-12:05:00-001-002-CB1-1.29+xxxx | Between 0030 and 0050 |
| 2X | 028848af+06192019-12:05:00-001-002-CB1-11.29+xxxx | Between 0000 to 0019 |
| 3 | 0a1b1079+06202019-11:30:00-001-002-CB1-2.99+xxxx | Between 0000 to 0019 |
| 3X | 0b394db6+06202019-11:30:00-001-002-CB1-2.99+xxxx | Between 0000 to 0019 |
| 4 | 03d0925a+06212019-12:00:00-001-002-CB1-0.99+xxxx | Between 0020 and 0039 |
| 4X | 01ebf7c3+06212019-12:00:00-001-002-CB1-0.99+xxxx | Between 0000 to 0019 |
| 5 | 0714be74+06212019-12:02:00-003-002-CB1-0.99+xxxx | Between 0000 to 0019 |
| 5X | 0150a713+06212019-12:02:00-003-002-CB1-0.99+xxxx | Between 0000 to 0019 |
| Table A.2 – Hashing Cheat-Sheet for Transactions |
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