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Blockchain Beyond Finance
Towards the internet of value & trust
Dimitri De Jonghe
@DimitriDeJonghe
● 2008 Master micro-electronics (KULeuven)
● 2013 PhD on applying machine learning to
micro-electronics design (KULeuven)
● 2014 Machine learning startups (sydelity, scriptbook)
● >2014 founding member ascribe.io / BigchainDB
○ ascribe.io - bitcoin blockchain for online licensing
○ BigchainDB - scalable blockchain database
○ IPDB Foundation - interplanetary database, public
BigchainDB for commons
○ Interledger co-chair - the internet of blockchains
Micro-electronics
Machinelearning
Blockchain
● Dimitri De Jonghe
Blockchain technologist & enthusiast
“My conclusion is that whatever you put on the
internet you lose it.
Maybe keep the rights, but lose the power over
it.”
-User on Shapeways blog (3D printing marketplace)
(digital) attribution, title, value
Your assets, your claims
(Digital) Trust by intermediaries & institutions
$ ping www.google.com
< PING 172.217.17.36
Here’s
your
personal
data
Do you need the middlemen?
Can you take control of your data?
2008 - Bitcoin
Shared single source of
truth and conduct
Inter-
mediary
Trusted third parties
peer to peer
decentralizedcentralized
Blockchain disrupts
Trusted Third Parties
Shared Single Source of Truth and Conduct
Blockchain:
A “Spreadsheet
in the Sky”
Shades of trust, reputation, blockchain...
Public: Open networks
Writers: Everyone can participate
Trust: World consensus
Applications:
● Decentralized apps
● Cryptocurrencies, programmable money
● Smart contracts
Private: Ecosystems, federations
Writers: Participants known/reputation
Trust: Federated consensus (eg vote)
Applications:
● Enterprise
● Disintermediation: Clearing & settlement
● Transparency: Supply chain, AML, audit
trails, provenance
● Ownership: exchange, partial, trustless
To develop shared global
compute infrastructure,
we must first understand the
status quo of infrastructure,
…and how to change it
accordingly.
To blockchain or not to blockchain?
● Need interaction with one or more parties?
● Do you want a crypto-secured shared single source of truth?
● Do you need apply and comply with a shared set of rules?
Status quo compute infrastructure
Modern apps use processing, file system, database
FILE SYSTEM
e.g. S3, HDFS
APPLICATION
PROCESSING
e.g. EC2, Azure
DATABASE
e.g. MySQL, MongoDB
PLATFORM
e.g. AWS, Google App Engine, Heroku
CONNECTNETWORKS
e.g.TCP/IP
Towards a decentralized compute infrastructure
FILE SYSTEM
e.g. S3, HDFS
APPLICATION
PROCESSING
e.g. EC2, Azure
DATABASE
e.g. MySQL, MongoDB
Bitcoin Blockchain?
PLATFORM
e.g. AWS, Google App Engine, Heroku
CONNECTNETWORKS
e.g.TCP/IP
Towards a decentralized compute infrastructure
FILE SYSTEM
e.g. S3, HDFS
APPLICATION
PROCESSING
e.g. EC2, Azure
DATABASE
e.g. MySQL, MongoDB
PLATFORM
e.g. AWS, Google App Engine, Heroku
CONNECTNETWORKS
e.g.TCP/IP
e-Cash/e-Gold
Bitcoin
Towards a decentralized compute infrastructure
FILE SYSTEM
e.g. S3, HDFS
IPFS, SWARM
APPLICATION
PROCESSING
e.g. EC2, Azure, Ethereum, Hyperledger, Tendermint, Lisk, Corda
DATABASE
e.g. MySQL, MongoDB
BigchainDB, IPDB
PLATFORM
e.g. AWS, Google App Engine, Heroku, Eris/Monax, BlockApps
CONNECTNETWORKS
e.g.TCP/IP,InterledgerILP
e-Cash/e-Gold
Bitcoin, zCash, Ripple,
Blockstream, Multichain
Decentralized Stack Interoperability
FILE SYSTEM
e.g. IPFS, SWARM
PROCESSING
e.g. Ethereum, Hyperledger, Tendermint, Lisk, Corda
DATABASE
e.g. BigchainDB, IPDB
PLATFORM
e.g. Eris/Monax, BlockApps
e-Cash/e-Gold
Bitcoin, zCash, Ripple,
Blockstream, Multichain
Protocols:
Interledger
IPLD
Hash Registry:
E.g uPort
Contract
Registry:
E.g dapp.registry
Oracles:
Push data
E.g. Oraclize
Backend
specific
OP-Codes
Configure stack: contract scripts, consensus, storage backends
2016 onwards
● BaaS: Blockchain as a Service (Azure, Amazon, IBM, IPDB)
● Internet of value: connect blockchains and legacy (Interledger)
● Standardization: Asset definitions, comm. Protocols, API’s
● Borderless and instantaneous micropayments and exchanges
● Scalability: Big-data meets Blockchain (BigchainDB)
● Internet of things: digitization of real world assets
● Privacy: zero-knowledge proofs to mask transaction content
● Identity: e-governance, IoT identity on-chip
● ...
Provenance is important for
Authenticity
Chain of Ownership
Valuation
Why fight the physics of bits?
How to get
PROVENANCE
Of TITLE?
How to get
PROVENANCE
Of COPIES?
Status quo compute infrastructure
Modern apps use processing, file system, database
FILE SYSTEM
e.g. S3, HDFS
APPLICATION
PROCESSING
e.g. EC2, Azure
DATABASE
e.g. MySQL, MongoDB
PLATFORM
e.g. AWS, Google App Engine, Heroku
CONNECTNETWORKS
e.g.TCP/IP
ascribe: a partly decentralized app (DApp)
FILE SYSTEM
e.g. S3, HDFS
APPLICATION: ascribe.io
PROCESSING
e.g. EC2, Azure
DATABASE
e.g. MySQL, MongoDB
Bitcoin Blockchain
PLATFORM
e.g. AWS, Google App Engine, Heroku
CONNECTNETWORKS
e.g.TCP/IP
OP_RETURN: copyright + author + metadata/URIs
Examples
Creative Commons
cc.ascribe.io
Cyland Video Archive
IkonoTV
left.gallerycointemporary.comlumenus.co
Online Marketplaces
Swallow the WEB
ML Image Search
Analytics
How to get Provenance of COPIES?
whereonthe.net
Provenance of the COPIES
According to
WhereOnTheNet, Detail from
The Creation of Adam,
appeared on 4,548 websites
and 18,796 unique pages.
This image has had around 56
occurrences on Twitter, which
is less then 1% of all
occurrences.
Rogier van der Weyden, Portrait of a young Lady, around 1440/45, Staatliche Museen zu Berlin,
Gemäldegalerie
(Image: Public Domain)
Where is Portrait of a young Lady ?
Over 1279 copies
Website : wikiart.org/
Occurrences : 164
Provenance of TITLE (IP)
ascribe.io
Provenance of COPIES
whereonthe.net
70 GB
3 tx/s
What about planetary scale?
Netflix uses 37% of Internet bandwidth
Using a modern distributed “big data” database
http://techblog.netflix.com/2011/11/benchmarking-cassandra-scalability-on.html
Writes / s vs. # nodes
Blockchain meets Big Data
Scalability
Queryability
2 ways to scale up
Big data-fy blockchains
• Builds on man-decades of work
• Significant scalability hurdles
<or>
Blockchain-ify big data
• Builds on man-centuries (millennia?) of work
• Scalability challenges already resolved
• How to blockchain-ify? …
payment channels /
trust lines /
side chains (e.g. blockstream)
high-speed
trust line slow-speed sync
Big data-fy the blockchain
What’s the difference between a database and a csv file?
Querying. From M’s of records, find the relevant ones.
1 Line of standard code, optimized
vs
50-500 lines of slow custom code, unoptimized
How do “big data” databases scale?
Answer: Distribute storage across many machines, i.e. sharding
A “consensus” algorithm keeps
distributed nodes in sync.
Native assets
How to build a scalable blockchain database (BigchainDB)
1. Start with an enterprise-grade distributed DB, e.g. MongoDB
2. Engineer in blockchain characteristics
• Each DB node is a federation node
Decentralized /
Shared Control
• Append-only
• Chain hashes
Immutable /
Audit Trails
• “Own” = have private key
• Asset lives on the database
Federated Consensus Architecture
Blockchain Consensus
Database Consensus
IMPLEMENT A 2 PHASE CONSENSUS
FEDERATION
Single Database
or
MongoDB RethinkDB
Database Options
BigchainDB: Big Data meets Blockchain
- a blockchain database
Immutability
Decentralized Control
Native Assets
Scalable
Queryability
Operationalized
Traditional
Databases
Traditional
blockchains
BigchainDB
BigchainDB: simple contracts iso smart contracts
Product Roadmap
Fault
Tolerant
Multi-IN
Multi-OUT
Tx
Divisible
Tx
VM +
Policies
Tx +
Status
API
RethinkDB
Simple
Contracts
Query
Contracts
Change-
Feed
Watch
DB Wire
Firewall
Global
Block
ordering
List Query
API
Amazon
Blocks
Votes
API
Assets
Docker MongoDBAzure
BFT Block
ordering
Python
Driver
JS
Driver
Custom
Queries
Ethereum
IPFS
Zero
Knowledge
BigchainDB v0.8 V.0.9 + Q1 Q2 > Q2
Where is BigchainDB used today
Vertical:
IP – Music rights
Value proposition:
A streaming service owned by all
Vertical:
IP – Digital art
Value proposition:
Enables creators of digital art to get
compensated, via claiming attribution &
licensing
ascribe
Interledger
Vertical:
Identity
Value proposition:
Low-friction assurance, sovereign personal
data
Authenteq
©ITU/L.Berney, (CC BY
Interledger
Vertical:
Government – Land Registry
Value proposition:
Low-cost registry, less risk of corruption
BenBen
©ITU/L.Berney, (CC BY
Vertical:
ID - Education Credentials
Value proposition:
reduce fraudulent degrees, lower HR
friction
Recruit
Vertical:
Energy
Value proposition:
manage $ flow in energy deregulation
Vertical:
Supply Chain / Health
Value proposition:
government-mandated
transparent $ flow
Generating Opportunities: Vertical x Benefit
Decentralized /
Shared Control
Immutability /
Audit trail
Tokens /
Exchanges
Intellectual Property
Identity
Finance
Energy
Government
Dig art – ascribe
Supply Chain
R3
Retail marketplace -
OpenBazaar
RWE You?
You?
You?
Res( )nate
Tangent90 Everledger
Recruit
BenBen
Ownage
IPDB: Interplanetary Database
Powered by BigchainDB
• For everyone, everywhere
• Free until heavy usage, then pay web service style
• Initial tech is BigchainDB
• Member caretakers will operate validating nodes
IPDB Caretakers
Long-standing commitment to the decentralized internet
At least half non-profit
Fewer than half in any given country
IPDB Caretakes (so far)
Blockstack
COALA
Dyne.org
Internet Archive
OpenMedia
UnMonastery
ascribe / BigchainDB
Consensys
Eris/Monax Industries
Protocol Labs (IPFS)
SmartContract.com
Synereo
Tendermint
Taking the next step with blockchains
• Identify use cases, e.g. using tools here
• Validate use cases with blockchain experts
• Start experimenting, e.g github.com/bigchaindb
• Find the right expertise ;-)
Dimitri De Jonghe
dimi@bigchaindb.com
@DimitriDeJonghe
https://be.linkedin.com/in/dimitridejonghe
+32 496 80 94 14
My projects:
https://ascribe.io
https://bigchaindb.com
https://ipdb.foundation
https://github.com/bigchaindb
https://interledger.org
http://datanews.knack.be/ict/nieuws/bigchaindb-maakt-blockchain-principe-schaalbaar/article-normal-720789.htm
l
Thanks for listening

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Blockchain Beyond Finance Towards the Internet of Value & Trust

  • 1. Blockchain Beyond Finance Towards the internet of value & trust Dimitri De Jonghe
  • 2. @DimitriDeJonghe ● 2008 Master micro-electronics (KULeuven) ● 2013 PhD on applying machine learning to micro-electronics design (KULeuven) ● 2014 Machine learning startups (sydelity, scriptbook) ● >2014 founding member ascribe.io / BigchainDB ○ ascribe.io - bitcoin blockchain for online licensing ○ BigchainDB - scalable blockchain database ○ IPDB Foundation - interplanetary database, public BigchainDB for commons ○ Interledger co-chair - the internet of blockchains Micro-electronics Machinelearning Blockchain ● Dimitri De Jonghe Blockchain technologist & enthusiast
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11. “My conclusion is that whatever you put on the internet you lose it. Maybe keep the rights, but lose the power over it.” -User on Shapeways blog (3D printing marketplace)
  • 14.
  • 15. (Digital) Trust by intermediaries & institutions $ ping www.google.com < PING 172.217.17.36
  • 17. Do you need the middlemen? Can you take control of your data?
  • 19.
  • 20. Shared single source of truth and conduct Inter- mediary Trusted third parties peer to peer decentralizedcentralized
  • 21. Blockchain disrupts Trusted Third Parties Shared Single Source of Truth and Conduct
  • 23. Shades of trust, reputation, blockchain... Public: Open networks Writers: Everyone can participate Trust: World consensus Applications: ● Decentralized apps ● Cryptocurrencies, programmable money ● Smart contracts Private: Ecosystems, federations Writers: Participants known/reputation Trust: Federated consensus (eg vote) Applications: ● Enterprise ● Disintermediation: Clearing & settlement ● Transparency: Supply chain, AML, audit trails, provenance ● Ownership: exchange, partial, trustless
  • 24. To develop shared global compute infrastructure, we must first understand the status quo of infrastructure, …and how to change it accordingly.
  • 25. To blockchain or not to blockchain? ● Need interaction with one or more parties? ● Do you want a crypto-secured shared single source of truth? ● Do you need apply and comply with a shared set of rules?
  • 26. Status quo compute infrastructure Modern apps use processing, file system, database FILE SYSTEM e.g. S3, HDFS APPLICATION PROCESSING e.g. EC2, Azure DATABASE e.g. MySQL, MongoDB PLATFORM e.g. AWS, Google App Engine, Heroku CONNECTNETWORKS e.g.TCP/IP
  • 27. Towards a decentralized compute infrastructure FILE SYSTEM e.g. S3, HDFS APPLICATION PROCESSING e.g. EC2, Azure DATABASE e.g. MySQL, MongoDB Bitcoin Blockchain? PLATFORM e.g. AWS, Google App Engine, Heroku CONNECTNETWORKS e.g.TCP/IP
  • 28. Towards a decentralized compute infrastructure FILE SYSTEM e.g. S3, HDFS APPLICATION PROCESSING e.g. EC2, Azure DATABASE e.g. MySQL, MongoDB PLATFORM e.g. AWS, Google App Engine, Heroku CONNECTNETWORKS e.g.TCP/IP e-Cash/e-Gold Bitcoin
  • 29. Towards a decentralized compute infrastructure FILE SYSTEM e.g. S3, HDFS IPFS, SWARM APPLICATION PROCESSING e.g. EC2, Azure, Ethereum, Hyperledger, Tendermint, Lisk, Corda DATABASE e.g. MySQL, MongoDB BigchainDB, IPDB PLATFORM e.g. AWS, Google App Engine, Heroku, Eris/Monax, BlockApps CONNECTNETWORKS e.g.TCP/IP,InterledgerILP e-Cash/e-Gold Bitcoin, zCash, Ripple, Blockstream, Multichain
  • 30. Decentralized Stack Interoperability FILE SYSTEM e.g. IPFS, SWARM PROCESSING e.g. Ethereum, Hyperledger, Tendermint, Lisk, Corda DATABASE e.g. BigchainDB, IPDB PLATFORM e.g. Eris/Monax, BlockApps e-Cash/e-Gold Bitcoin, zCash, Ripple, Blockstream, Multichain Protocols: Interledger IPLD Hash Registry: E.g uPort Contract Registry: E.g dapp.registry Oracles: Push data E.g. Oraclize Backend specific OP-Codes Configure stack: contract scripts, consensus, storage backends
  • 31. 2016 onwards ● BaaS: Blockchain as a Service (Azure, Amazon, IBM, IPDB) ● Internet of value: connect blockchains and legacy (Interledger) ● Standardization: Asset definitions, comm. Protocols, API’s ● Borderless and instantaneous micropayments and exchanges ● Scalability: Big-data meets Blockchain (BigchainDB) ● Internet of things: digitization of real world assets ● Privacy: zero-knowledge proofs to mask transaction content ● Identity: e-governance, IoT identity on-chip ● ...
  • 32.
  • 33.
  • 34. Provenance is important for Authenticity Chain of Ownership Valuation
  • 35. Why fight the physics of bits?
  • 36. How to get PROVENANCE Of TITLE? How to get PROVENANCE Of COPIES?
  • 37.
  • 38.
  • 39. Status quo compute infrastructure Modern apps use processing, file system, database FILE SYSTEM e.g. S3, HDFS APPLICATION PROCESSING e.g. EC2, Azure DATABASE e.g. MySQL, MongoDB PLATFORM e.g. AWS, Google App Engine, Heroku CONNECTNETWORKS e.g.TCP/IP
  • 40. ascribe: a partly decentralized app (DApp) FILE SYSTEM e.g. S3, HDFS APPLICATION: ascribe.io PROCESSING e.g. EC2, Azure DATABASE e.g. MySQL, MongoDB Bitcoin Blockchain PLATFORM e.g. AWS, Google App Engine, Heroku CONNECTNETWORKS e.g.TCP/IP OP_RETURN: copyright + author + metadata/URIs
  • 41.
  • 42.
  • 43.
  • 45.
  • 46.
  • 47.
  • 52. Swallow the WEB ML Image Search Analytics How to get Provenance of COPIES?
  • 53. whereonthe.net Provenance of the COPIES According to WhereOnTheNet, Detail from The Creation of Adam, appeared on 4,548 websites and 18,796 unique pages. This image has had around 56 occurrences on Twitter, which is less then 1% of all occurrences.
  • 54. Rogier van der Weyden, Portrait of a young Lady, around 1440/45, Staatliche Museen zu Berlin, Gemäldegalerie (Image: Public Domain) Where is Portrait of a young Lady ?
  • 55.
  • 58. Provenance of TITLE (IP) ascribe.io Provenance of COPIES whereonthe.net
  • 59. 70 GB 3 tx/s What about planetary scale?
  • 60. Netflix uses 37% of Internet bandwidth Using a modern distributed “big data” database http://techblog.netflix.com/2011/11/benchmarking-cassandra-scalability-on.html Writes / s vs. # nodes
  • 61. Blockchain meets Big Data Scalability Queryability
  • 62. 2 ways to scale up Big data-fy blockchains • Builds on man-decades of work • Significant scalability hurdles <or> Blockchain-ify big data • Builds on man-centuries (millennia?) of work • Scalability challenges already resolved • How to blockchain-ify? …
  • 63. payment channels / trust lines / side chains (e.g. blockstream) high-speed trust line slow-speed sync Big data-fy the blockchain
  • 64. What’s the difference between a database and a csv file? Querying. From M’s of records, find the relevant ones. 1 Line of standard code, optimized vs 50-500 lines of slow custom code, unoptimized
  • 65. How do “big data” databases scale? Answer: Distribute storage across many machines, i.e. sharding A “consensus” algorithm keeps distributed nodes in sync.
  • 66. Native assets How to build a scalable blockchain database (BigchainDB) 1. Start with an enterprise-grade distributed DB, e.g. MongoDB 2. Engineer in blockchain characteristics • Each DB node is a federation node Decentralized / Shared Control • Append-only • Chain hashes Immutable / Audit Trails • “Own” = have private key • Asset lives on the database
  • 67. Federated Consensus Architecture Blockchain Consensus Database Consensus IMPLEMENT A 2 PHASE CONSENSUS FEDERATION Single Database or MongoDB RethinkDB Database Options
  • 68. BigchainDB: Big Data meets Blockchain - a blockchain database Immutability Decentralized Control Native Assets Scalable Queryability Operationalized Traditional Databases Traditional blockchains BigchainDB
  • 69. BigchainDB: simple contracts iso smart contracts
  • 70. Product Roadmap Fault Tolerant Multi-IN Multi-OUT Tx Divisible Tx VM + Policies Tx + Status API RethinkDB Simple Contracts Query Contracts Change- Feed Watch DB Wire Firewall Global Block ordering List Query API Amazon Blocks Votes API Assets Docker MongoDBAzure BFT Block ordering Python Driver JS Driver Custom Queries Ethereum IPFS Zero Knowledge BigchainDB v0.8 V.0.9 + Q1 Q2 > Q2
  • 71. Where is BigchainDB used today
  • 72. Vertical: IP – Music rights Value proposition: A streaming service owned by all
  • 73. Vertical: IP – Digital art Value proposition: Enables creators of digital art to get compensated, via claiming attribution & licensing ascribe
  • 74. Interledger Vertical: Identity Value proposition: Low-friction assurance, sovereign personal data Authenteq ©ITU/L.Berney, (CC BY
  • 75. Interledger Vertical: Government – Land Registry Value proposition: Low-cost registry, less risk of corruption BenBen ©ITU/L.Berney, (CC BY
  • 76. Vertical: ID - Education Credentials Value proposition: reduce fraudulent degrees, lower HR friction Recruit
  • 77. Vertical: Energy Value proposition: manage $ flow in energy deregulation
  • 78. Vertical: Supply Chain / Health Value proposition: government-mandated transparent $ flow
  • 79. Generating Opportunities: Vertical x Benefit Decentralized / Shared Control Immutability / Audit trail Tokens / Exchanges Intellectual Property Identity Finance Energy Government Dig art – ascribe Supply Chain R3 Retail marketplace - OpenBazaar RWE You? You? You? Res( )nate Tangent90 Everledger Recruit BenBen Ownage
  • 81. • For everyone, everywhere • Free until heavy usage, then pay web service style • Initial tech is BigchainDB • Member caretakers will operate validating nodes
  • 82. IPDB Caretakers Long-standing commitment to the decentralized internet At least half non-profit Fewer than half in any given country
  • 83. IPDB Caretakes (so far) Blockstack COALA Dyne.org Internet Archive OpenMedia UnMonastery ascribe / BigchainDB Consensys Eris/Monax Industries Protocol Labs (IPFS) SmartContract.com Synereo Tendermint
  • 84. Taking the next step with blockchains • Identify use cases, e.g. using tools here • Validate use cases with blockchain experts • Start experimenting, e.g github.com/bigchaindb • Find the right expertise ;-)
  • 85. Dimitri De Jonghe dimi@bigchaindb.com @DimitriDeJonghe https://be.linkedin.com/in/dimitridejonghe +32 496 80 94 14 My projects: https://ascribe.io https://bigchaindb.com https://ipdb.foundation https://github.com/bigchaindb https://interledger.org http://datanews.knack.be/ict/nieuws/bigchaindb-maakt-blockchain-principe-schaalbaar/article-normal-720789.htm l Thanks for listening