Use cases

1. Introduction

Asymmetric cryptography is widely used to ensure secure subject interaction in various Internet activity domains, for instance, in digital audio communications using VoIP technology, instant text messages exchange in both individual and group modes, video conferences, etc.

Working efficiency of any asymmetric cryptography instrument is inextricably linked to the authentication mechanism that is used.

The suggested document is created in an attempt to conceptualize the authentication mechanism within the distributed ledger framework. We also touch upon adjoining topics that are directly connected with the outlined interest and discuss potential solutions.

The term "confirmation of authenticity" will be further used in the text as a conceptual equivalent to the term "authentication"

The author of the document intended to present the material in a lucid and accessible manner. Therefore, the author intentionally avoided using formal definitions and notations converntionally used in the mathematical literature.

2. Distributed ledger

A public ledger, or blockchain, is a distributed data repository that consists of an inerconnected list of records. A network of nodes controls the ledger. All nodes share rights equally and participate in control execution. Therefore, a network is decentralized and peer-to-peer.

Initially, ledgers wew used for storing electronic payment orders (transactions) in the process of virtual funds transferring within networks. The very first example of this type of ledger application is Bitcoin. ALongside this, the principle of load calculations was translated into practice. The principle, also known as Proof-of-Work or PoW, allows actualizing transactions that are accumulated in the network by creating a new record (or block, as they are called in Bitcoin network). Since such activity is rewarded, it activates the virtual monetary funds (cryptocurrency) emission. This process is called minig.

Every new added record is inseparably connected to every other record in the ledger. The interconnectedness is achieved by using cryptograpic hash function, which means that, for instance, to falsify a transaction one would need to enter required changes into every other record in the ledger, which implies almost unfeasible amount of calculations. Therefore, distributed ledger technology is a secure and safe instrument of storing and distributing data within peer-to-peer networks.

Two independent routs can be generated in a ledger. Branching takes place when two records appear in a ledger simultaneously. The conflict is resolved by automatic preference of a longer rout.

Distributed ledger is an institution for collective action that excludes any kind of discrimination. Therefore, the principles of publicity and neutrality are foundational in ledger development.

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