Assignment 7
Discussion 1
Tokenization refers to the act of substituting a sensitive piece of information with an equivalent non-sensitive piece of information. Such that the important information is being tokened based on a certain criteria to trace back the information using a tokenization system. This replaced text of information have no meaning of its own but is being used in order to trace back the real information. This is done in order to protect the real data from being breached by the hackers or unauthorized personals. This token may act as an identifier or a reference. This being a really secure system such as the hackers if gained access to the information can by no means access the real information without having the access to the tokenization system which made the tokens at the first place. Thus, making the token systems preferable to attacks by the hackers requiring an extra secure protection on them to secure all the sensitive information. These systems can be made secure by adding extra layer of security by adding the process such as data protection, secure storage, audit, authentication, and authorization. All these processes make the system impossible to be breached making the information more secure. There are several protocols which can be followed during the process. These protocols can be listed as Secure Multi-party Computation, Policy Backed token and open asset protocol.
Secure Multi-party computation refers to the act in which a number of parties can compute a function on their inputs while keeping the input values to themselves. Such as the protocol is a subfield of cryptography in which the main goal is the production of such functions in which the input values or the information on which the functions are to be run should be safe. This is made sure by allowing the user to compute the function on the user provided values while keeping these values to themselves during the process. This process can be used by the organizations running large scale computation, but they want to keep the data secure.
Policy backed token can refer to the block-chain based unit of values that represents the real entities of the world. These entities can be enlisted as land, diamond, companies, shares or any such expensive entity. This such tokens can be defined as the block chain created values that represents the real-world entities. The main organization using such a protocol is block chain.
Open asset protocols are protocols which are implemented on top of the block chain. The main purpose of these protocols being that they can be used in order to issue or transfer of the user created assets. These protocols are actually the new form of the concept of colored coins.
Discussion 2
Secure multi party computation SMPC, is a privacy preservation application which allows a group of participants to conduct a joint computation without revealing the participants individual inputs. The participants must agree to on a computing function and then uses a SMPC protocol to compute the output jointly on their secret inputs without revealing their inputs (Evans, Kolesnikov, & Rosulek, 2017). The methods of performing the calculations ensure the secrecy of the data is maintained. Open Asset Protocol OAP is a tokenization protocol which define the minimum interfaces that must be implemented by smart contract to allow the trading and management of tokens. There are numerous protocol in OAP where each contains a several interfaces defined by the smart contract. Example, the OAP 701 protocol defines interfaces for sub-token purchase, such as sub tokens 501, and 502 separately (Li, Wu, Pei, & Yao, 2019).
Other interfaces defined include an interface for token query, which takes user inputs of blockchain address and gives all tokens within the address as an output. A certificate token which receives sub tokens and returns token certificate. Policy Backed Token, PBT, is an instance of OAP which have token categories such as PBT701. The tokens are mainly applied in the insurance industry with various applications (Li, Wu, Pei, & Yao, 2019). One of the applications of PBT701 is the E-life token which comprises of aviation policy and other minor polices including luggage and delay policies. The tokens can be accessed and queried through sub tokens interfaces separately. PBT tokens are immutable thus hindering the possibilities of multiple purchase of the same token from different companies for fraud compensations.
SMP, OAP, and PBT ensure the security of the system by providing multi-party privacy, secure use of interfaces, and immutability respectively. PBT is an instance of OAP, and they both function to ensure the privacy preservation which is the main aim of SMP using the secure interfaces. Apart from the insurance industry discussed, banking industries and aviation can highly benefit from these privacy security mechanisms by utilising the standard distributed business systems to enhance capacity and quality using the transparent blockchain applications.
Please make sure two response posts to given discussions substantive. A substantive post will do at least TWO of the following:
1.Ask an interesting, thoughtful question pertaining to the topic
2.Answer a question (in detail) posted by another student or the instructor
3.Provide extensive additional information on the topic
4.Explain, define, or analyze the topic in detail
5.Share an applicable personal experience
6.Provide an outside source (for example, an article from the UC Library) that applies to the topic,
along with additional information about the topic or the source (please cite properly in APA)
7.Make an argument concerning the topic.
8.At least one scholarly source should be used in the initial discussion thread. Be sure to use information from your readings and other sources from the UC Library. Use proper citations and references in your post.
