CRYPTOCURRENCY | EPISODE 4

 Episode 4   | The story of Cryptonia

The main draw back of the dragonbuck is  bandits could  rob dragonBucks and insisted that they modified the system. The dragon would not be able to tell if someone exchanging a note had procured it honestly or through malicious means.

The mathematician suggested the note should be signed to a specific person , Dragon could write unforgeable signs as well. Using this ability dragon could write receiver , and sender names that no one in village could write. The  sender should fill the amount of gold to send. This method was convenient and safer. The receiver can get the note and redeem it later from the dragon , This method was named “blank check method” , Dtagon had to provide tons of differenet checks to a person in village to do a transection.

Using this system some times, the mathematician and dragon found some flaws of the system.

Those are ,

·        the gold receiver could change the amount of golden in the note

·        One person would need to get tons of different notes

·        The notes can still have some value to thieves

Because of those flaws , These blank check method aren’t that much more convenient.

Which of the following features would we need in order to deter thieves from trying to steal blank notes, while ensuring that the transaction outlined in a note couldn't be modified after the note had been written? Select all that apply.

Authentication would be the best way to deter thieves from stealing blank notes since without a signature the note is worthless. Tamper resistance is needed to ensure that the terms of the transaction can't be changed.

Note that authentication and tamper resistance aren't valuable unless the system has both:

·         Without authentication, someone could just write a new note even if existing notes are tamper-resistant.

·         Without tamper resistance, someone could modify a note that already has a legitimate signature.

In fact, for the systems we'll explore later in this course, these two features are linked such that you can't achieve one without the other.

Chargebacks could help against stolen notes, but they'd also introduce new problems since they would offer a way to change the terms of the transaction after the note had been written.

Encryption might be helpful for preventing the theft of signed notes (a thief wouldn't be able to ransom an encrypted note as effectively), but it isn't helpful for deterring the theft of blank notes. The thief could steal the blank note, fill in the amount, encrypt the note, and use it in the same ways as before.

Now you can see what are the main flaws of dragonbuck must be improved.In the next episode we will discuss how to over come these issues ……