Demystifying Blockchain In 8 Days: Part 1

Source: https://blog.makersacademy.com/demystifying-blockchain-in-8-days-part-1-a22e8eda37ce

by

Daniel Miller

For our final project at Makers our project team was united by our desire to complete a technical project. We had very different opinions on what this represented though. Some people expressed interest in developing prototypal programming languages. There were also discussions about developing compilers, web browsers and machine-learning driven chat rooms.

After around 45 minutes of discussions we decided to build a blockchain based product. We all shared several reasons for going in this direction. All of us wanted to demystify a technology that is not well understood and has become wrapped up in cryptocurrency hysteria. The process of building a blockchain also presented a sufficiently technical challenge to pique everybody’s interest in the group. Once the initial product — an array that would detect if an index was altered after creation — was developed, there was also considerable scope to expand the blockchain and eventually we incorporated the blockchain algorithm we wrote into a web app.

This allowed us to apply the web development skills we picked up at Makers to the project. We eventually incorporated the blockchain into a prescription management application.

I’ll go into more detail on this in part two. The final product illustrated how blockchain technology could be used to prevent prescription fraud and store a secure record of patient prescriptions that were authorised by doctors.

What Is A Blockchain?

At the very core, a blockchain is a ledger, or record of transactions that is secure. The diagram below shows the basic data that each block contains.

Blockchains can be used to store any types of transactions. These can be financial transactions like the purchase of property or financial instruments. They can also be social transactions, like votes for political candidates. Whenever a new transaction is added to the blockchain the transaction becomes encrypted. The encrypted transaction then becomes the unique key or ID for each block. When a new block is added to the blockchain, in addition to encrypting it’s own data it also stores the key of the previous transaction. Every new block in the chain points to the preceding block except for the genesis transaction, which simply is used to signify the beginning of the blockchain.

The security of the blockchain rests on two pillars. The first pillar is the fact that all the data is encrypted. Only those who have access to the encryption key can review the data. The second (and more interesting) pillar of security lies in the blocks themselves.

Every block contains the previous blocks encryption key (which is also referred to as a hash). You can loop through and compare the previous key of the subsequent key of the current block. If they are not equal then you know that one of the blocks has been changed post creation and the security of the blockchain has been compromised. Unlike user authentication, where passwords are encrypted when they are sent to databases, and decrypted when the user logs in, the hash remains permanently encrypted. If any index or record or in the blockchain is modified, then a new hash is generated from the modified data.

Building & Testing The Basic Blockchain

Once we understood the basic principles of a blockchain we realised, in algorithmic terms, that the blockchain could be represented by an array of encrypted objects that held the unique encryption of the previous object. We decided to develop this using NodeJS for a number of reasons. Our group were all familiar with JavaScript from the Makers course and understood that JavaScript is a flexible programming language that we could use throughout our application. The NodeJS ecosystem is also incredibly exciting and there are great tutorials and libraries that we used to support the development of the project.

We took an Object-Orientated (OO) approach to the project and began by creating and testing block objects. OO JavaScript was used due to our familiarity with OO programming and testing.

Block Object Testing

The screenshot below is a screenshot of the Block object that we created and the basic tests we used. The prescription object is created separately and is simply three strings.

To test the block objects were being successfully created we created a fake Blockchain object (or double). The fake Blockchain only has the functionality for adding additional blocks to the chain. This is just enough functionality to enable us to test that new blocks contain the hash generated upon the creation of the previous block.

To test that the hashing is working we pass in two blocks to the Blockchain double, then compare that the previous hash of the block at index 2 is equal to the hash of the block at index 1.

We also test that the hash generation function calculates hashes at the stated complexity. The mineBlock function uses the “nonce” variable to determine the complexity of the encryption.

The “nonce” is used to determine the number of 0s that each hash must begin with. The greater number of 0s, the more computational resources are required to generate a hash as the hash generator will keep running until the encrypted string has the correct number of 0s.

We tested this by passing a difficulty/nonce value of 3 and mine the block. We then ensure that the encrypted string begins with the same number of 0s as the nonce.

Chain Object Testing

Below is a screenshot of the Blockchain that is used to store the blocks.

The first thing we ensure is that the create genesis/first block method is working as intended. This is achieved through a simple (and slightly self-referential test) that the function returns the same value as the first element in the blockchain.

From there it’s a simple case of testing that the add block and return last block methods do actually return the correct blocks:

In the algorithm most of the functionality is delegated to the block objects. The role of the chain is very simple; the chain simply creates a genesis block as a reference point, adds new blocks and has the capacity to return the last block.

Ensuring the blockchain is valid is delegated to a validity checker object.

Validity Testing

The final object that makes up the core of the blockchain is the validity checker object. The validity checker receives the array of block items as an argument and loops through all the blocks in the array. The loop begins at index 1, and also selects the block in the preceding index. If the previous hash variable in the “current block” does not match the current hash of the previous block then the security of the blockchain has been compromised.

This was tested by creating a double blockchain that was composed of double block objects. We then went through and changed elements inside the objects to test the following scenarios:

• The current block has been compromised
• The previous block has been compromised
• The blockchain is valid

Having the three components of the blockchain separated out into different objects made it easier to test that each object was demonstrating the correct behaviours that we expected. It also allowed us to develop more functionality for the blockchain with confidence as we knew that the core product was fully tested and devoid of bugs.

This confidence enabled our team to extend out the blockchain algorithm into a full-stack web application. We decided to use pharmaceutical prescriptions to illustrate how the blockchain could be deployed to the web, and how it could be used to solve real-world problems.

In the follow-up article, I’ll discuss how we incorporated the blockchain into a full-stack web application. The web application is very interesting as we created two different user types, and set different authorisation levels to represent how the blockchain could be used by different users.

**If you want to review the code, here it is! **