Thanks a lot for joining us in this SkillShare Breakfast about Bitcoin & Blockchain.
Today – as mentioned in the title of this breakfast - we will give you a short introduction to Bitcoin and Blockchain.
First of all, we will introduce you Bitcoin and blockchain and Then, we will have a practical training.
In the exercise, you will learn how to setup a bitcoin wallet on your smartphone And how to send and receive bitcoins.
Please do not hesitate to ask us for any questions. even during our presentation.
But before we start, some words about us.
My name is Boris Reinhard and I do not see me as a typical consultant. Why?
I have worked in several areas such as E-Business, Enterprise Architecture and Digital Transformation. My passion is to support companies during the digital transformation and with challenges regarding blockchain technology. My focus is on business value and not on technical features. I have founded and established 3 companies, among othersnet1.digital earlier this year. Beside, I am responsible for the digital community switzerland.
MY PASSION IS TO GUIDE COMPANIES THROUGH THE DIGITAL SHIFT, DRIVE THEIR INNOVATION AND LEVERAGE NEW TECHNOLOGIES AS WELL AS CUSTOMER-CENTRICITY. I IDENTIFY, PLAN AND EXECUTE DIGITAL STRATEGIES AND TRANSFORMATION, LEVERAGE NEW TECHNOLOGIES AND CUSTOMER-CENTRICITY. AND I GUIDE YOU IN PLANNING, MANAGING AND IMPLEMENTING DIGITAL INITIATIVES, VENTURES AND START-UPS.
LESS TALK, MORE ACTION
Currently, there are two hot topics in my new company Blockchain (and Bitcoin respectively) and The digital transformation
Still, most companies do not know how to start and how to Benefit from digital technologies.
That’s where we come into play.
Let’s start with our main topic, Bitcoin
We all know what 2008 happened. The financial crisis damaged the trust of the people in the classical, established banking system and banks in general. Just when the financial crisis happened, A person or group with the pseudonymous SATOSHI NAKAMOTO introduced a white paper about bitcoin.
In fact, nobody knows who Satoshi is Newsweek announced in 2014 that they have found him But, the person they found was not the real Satoshi and did not know anything about bitcoin In the white paper, bitcoin and the underlying bitcoin-blockchain, is explained Based on this document, bitcoin was introduced at the beginning of 2009 Meanwhile, the American NSA has announced that they know who Satoshi is But they remain silent on the fact who this person is.
As mentioned before, the first bitcoin transaction happened in January 2009
An Australian called Dr. Craig Wright claims that he is SATOSHI. But there is no proof yet
Meanwhile, nearly everybody knows about bitcoin, and blockchain.
Even the world economic forum WEF sees a big potential in blockchain At this point we will watch a short film ‘bout Bitcoin, created by „We Use Coins“ to get a better overiew!
What is this great thing in the bitcoin-blockchain. Isn’t Bitcoin just a digital currency?
Since the 90ies, people tried to develop a digital currency, but all of the experiments failed. Bitcoin is the first digital currency that really works.
In addition, You do not need any intermediaries such as banks or payment providers Nobody can censor the bitcoin blockchain Everybody who holds bitcoins, is able to send bitcoin to everybody who has a bitcoin address.
On the one hand, bitcoin causes headaches for bankers. But on the other hand, this new system has a lot of potential, even for banks.
Well, as most of us know, bitcoin is not the only crypocurrency
The most important blockchains in the cryptocurrency area are currently Bitcoin and Ethereum
Bitcoin As already mentioned, Bitcoin was the first digital currency That works
Ethereum Is not just a digital currency with the coin “ether” Ethereum is a platform, On which business logic can be developed In the form of smart contracts and Decentralised apps
Who knows what Bitcoin Cash is?
Since the transaction volume and the fees in Bitcoin have increased, A part of the bitcoin community switched to bitcoin cash, where the fees are lower.
It’s not surprising that Bitcoin is used as a store of value.
It’s not surprising that Bitcoin Cash is more often used for micropayments As you can see in ‘Roger Ver’s tweet here.
In our exercise, we will use Bitcoin wallets, more precisely „paper wallets“
A bitcoin wallet has 2 components The public key This is your payment and wallet address, analogous to an IBAN for banking payments The other component is the private key This is your key to your bitcoins It should be handled with care And the private key should not be lost The person who has the key, has full control over the bitcoins in the wallet
Please be aware that you have the full control over your wallet You are your own bank Nobody can block or steel your bitcoins online given that your private key is offline on a paper wallet And please watch for cameras.... ;)
How can you transact your bitcoins On the wallets, your private keys and public addresses are „stored“
One type of a wallet is an app wallet This app manages your keys and addresses Usually, depending on your wallet, the private key can be exported For example, if you want to backup your wallet or so
An app wallet is the most comfortable way to manage you bitcoins Even though it is a not secure way to store bitcoins
A more secure option are offline wallets Especially wallets you have made yourself
For example you can download a script on bitaddress.org, go offline and print a paper wallet via usb I recommend to store bitcoins on an offline paper wallet
In addition, there are some other ways to store bitcoins You can buy real coins with the address and key on it The key is usually hidden behind a holographic sticker The coin itself has just the value of the raw materials
Where can you buy bitcoins?
One comfortable way is to buy bitcoins at an sbb ticket machine Or at a special bitcoin machine, for example at Kafi Schoffel in the Niederdorf or at SBB Hardbrücke in the Ernst & Young branch office next to the reception
Another way to buy and sell bitcoins are crypto exchanges like kraken or bitfinex, in the internet But, you have to identify yourself there due to regulatory standards
What else is important
The amount of bitcoins is limited to 21 million Every 10 minutes, 12.5 BTC are mined The last bitcoin will be mined around 2140 Hence, the value of bitcoin is increasing continuously Bitcoins can be divided down to 8 decimals (a one hundred millionth of a single bitcoin = satoshi)
Decreasing exchange rates are largely a temporary phenomenon..
Just a few words about how a transaction works
If you think about developing countries and countries with hyperinflation The people there do have nothing to lose There money is almost worthless They do not ask for risks regarding bitcoin, e.g. a loss of value They just use bitcoin to store value…
This is possible since everybody can download a wallet And store bitcoin in the wallet Without identification Without banks Just within minutes
Just to give you a quick insight how smart contracts work…
Unterschiede zu klassischen Verträgen: Vertragspartner können anonym bleiben, Gegenpartei muss also nicht bekannt sein oder durch eine Drittinstanz geprüft werden Der Vertrag wird in einer Computersprache erfasst Wird vollautomatisch ausgeführt Geringe Kosten und Effizienz Sofortige Ausführung bei einem Event Somit auch für Mikrotransaktionen interessant (z.B. Kaffee kaufen)
A practical example could be insurance policies
Nehmen wir eine Versicherung Auf Basis des Smart Contracts wird eine Police vollautomatisch abgeschlossen Event-basiert wird die Schadensfallabwicklung vollautomatisch angestossen Die Auszahung erfolgt auch vollautomatisch
Auch Zug schläft nicht. Zug ist sozusagen neben dem Silicon Valley die zweite Hautptstadt der Crypto Szene Hier sind über 180 Unternehmensideen in den Startlöchern Die Stadt ZG hat die digitale ID für seine Bürger eingeführt, Die Behördengänge und – prozesse stark vereinfacht und automatisiert
Spiegel zu zwei verschiedenen Zeiten … Was ist dran and diesen plakativen Aussagen? Gibt es seit 1978 wirklich weniger Arbeitsplätze? Tatsächlich ist die Arbeitslosigkeit Anfang 2017 in der Schweiz im Vergleich zum Vorjahr gesunken... (bei ca. 3% kann man da von Arbeitslosigkeit sprechen?)
Neu in Zug ist Etherisc Hier lassen sich bereits heute kleine Versicherungen ad hoc abschliessen z.B. für verspätete und ausgefallene Flüge Das ist nur der Anfang
In Brooklyn entsteht ein privates Stromnetz Wo Kunden sich selbst gegenseitig mit Energie versorgen Hintergrund ist auch, dass man Unabhängig sein möchte Und sich die Einspeisung von Solarstrom ins Netz derzeit nicht lohnt
Intro Bitcoin & Blockchain.
From institution-based money to network-based money.
“ I AM NOT A TYPICAL CONSULTANT.
★ Dipl.-Ing. & M.Sc.
★ History: E-Business & UX, EAM, Digital
★ Topics Digital, Bitcoin & Blockchain
★ My mission is to coach and guide companies, ventures and
startups through the digital shift and through blockchain projects
★ Curator for 'Blockchain & Crypto' with Scope
★ Focus on business value, not features
★ Initiator EAM Community CH, Digital Community CH
★ Member of D_BREAK
★ Certified Bitcoin Professional (CBP) , ID 2f7220
The Blockchain (and shared ledger
respectively) are extremely promising
technologies. It has the potential to
change almost every industry.
We help you to identify a viable and
sustainable business model around the
technology and guide you through your
BLOCKCHAIN – USE CASES
Our passion is to guide companies through
the digital shift, drive their innovation and
leverage new technologies as well as
customer-centricity. We make digital
strategies, identify digital opportunities
and initiate transformations.
And we guide you in planning, managing
and implementing digital initiatives,
ventures and start-ups.
DIGITAL TRANSFORMATION – BUT HOW?
net1.digital - What’s hot?
There are some hot topics, which are currently high on the agenda of companies. Some introducing
words regarding these focus topics:
What is Bitcoin – Video.
The death of the Intermediary?
Picture: http://bit.ly/2v1pT7H (Deloitte/dupress.com) Text: http://bit.ly/2vvJaRV
Bitcoins can be owned by any
individual, without permission
from any bank or government.
They can be sent to anybody
else in the world who knows
how to operate a ‘Bitcoin
It is this principle of ‘censorship
resistance’ that captures
breakthrough — and which
explains early concerns by
lawmakers and regulators.
Banks are losing control...
Bitcoin & Ethereum.
BITCOIN (BTC & BCH)
THE TWO LEADING DIGITAL CURRENCIES
ETHEREUM (ETH, NOT ETC)
★ The Bitcoin Blockchain is an example of a
public blockchain and is so called because it
is the blockchain on which the digital
currency Bitcoin rides. Gartner calls it “the
only proven blockchain.”
★ Part of what makes Bitcoin valuable is that
there is a nite supply. Supply is limited by
virtue of the way it is “mined” and by the
fact that Satoshi Nakamoto capped the
number of Bitcoin at 21 million to
counteract inflationary pressure.
★ Ethereum is another public blockchain with its
own digital currency, Ether.
★ Ethereum is a powerful development platform
on which innovators can build a diverse array
of applications due to its core innovation, the
Ethereum Virtual Machine.
★ Ethereum pioneered the concept of “smart
contracts,” programmable conditions that run
automatically, without censorship, fraud or
"I think of it as an
incredible store of value
in the rest of the world.
I don't think it's
… like an IBAN … like your E-Banking-Login
Please note: Never share your private keys!
Bitcoin: Public Address & Private Key.
[Bitcoin] roars (…) above it
all, for it is the people’s
voice. The people who are
taking back their rights
and imposing what is
obviously good – the true
value of market prices,
free from any
by code, governed by us
all.’ (Andrew Quentson)
Smart Contracts Platform.
An option contact between
parties is written as code into
the blockchain. The parties
involved are anonymous, but
the contact is the public
A triggering event like an
expiration date and strike
price is hit and the contract
executes itself according to
the coded terms. The data
comes from oracles.
Regulators can use the
blockchain to understand the
activity in the market while
maintaining the privacy of
individual actors’ positions.
Smart Contracts Platform.
The current problem with insurance policies is that the
claims process can take weeks or even months to be paid.
The process is still very manual and requires a large
degree of human action. This adds up to a lot of
administrative costs, which result in higher premiums for
Insurance companies can automate insurance policies by
writing them into a smart contract.
When the input conditions of the smart contract change
in an insured event, for example in the event of a
catastrophic natural disaster, then the claims process is
Smart contracts in insurance policies
DIGITAL IDENTITY - CRYPTO-VALLEY (ZUG)
Zug, Switzerland, aka Crypto-valley, is now often compared to Silicon Valley, as
it is home to many crypto-related companies and gets its name from the type
of businesses it attracts to the area: crypto.
Furthermore, according to the announcement, Zug is now becoming the first
community in the world to offer all citizens the opportunity to get a digital
identity based on the Ethereum blockchain.
Residents can register their identity by themselves using a special app that
secures personal information using blockchain technology and associates it
with a crypto address. Subsequently, the identity is verified by the identity
control of the city of Zug.
Zug will gather more experience with blockchain in the third quarter in a bid to
hold a non-binding e-referendum in spring of 2018. The software has come to
be seen as a potential technology to revolutionize the Swiss voting system,
which today still relies on ballot papers and hand counted results.
Source: http://bit.ly/2eR2TEn + https://twitter.com/wef/status/904733670673666050
DIGITAL PASSPORT FOR DIAMONDS (EVERLEDGER)
The diamond industry is beginning to implement a system called
Everledger, based on block chain technology, which establishes a
digital ‘passport’ for each diamond. This records its provenance,
travel, and transactions with a unique cryptographic ‘fingerprint’. This
system has three stages:
★ Establish an e-ID (electronic identity) for each diamond, by
digitising its attributes and a laser-inscribed serial number onto an
authoritative block chain ledger
★ Assign a digital passport to the diamond to record its travel,
transaction history and provenance
★ Detect and guard against illegal activities or fraudulent behaviour
DECENTRALISED INSURANCE APPLICATIONS (ETHERISC)
Etherisc's mission is to build decentralized insurance applications, making the
purchase and sale of insurance more efficient, enable lower operational costs,
provide greater transparency into the industry of insurance compared to
traditional operations, and democratize access to reinsurance investments.
They present a token model which enables investors to buy and trade the
“long-tail” risks of a decentralized insurance portfolio and to gain exposure to
its revenue as an income stream. Together with a consumer-facing insurance
application, this shows how a decentralized insurance system could work on
★ Flight Delay Dapp (Issues policies and pays out valid claims completely
Peer-to-Peer Electricity (Brooklyn Microgrid / LO3 Energy)
A community microgrid in Boerum Hill, Gowanus and Park Slope in support of Governor
Cuomo’s goal of creating local energy networks with the ability to separate from the larger
electric grid during extreme weather events or other emergencies. The community
microgrid will create a local energy network with a focus on:
★ Working with community leaders, utilities and technology partners to identify the best
fit for distributed energy resources and critical infrastructure upgrades
★ Developing locally generated energy that provide resiliency for emergency needs of
★ Reducing customer costs and promoting clean, renewable electricity, energy efficiency
and energy storage options within my community
★ Managing these distributed energy resources for times of power outages and
emergencies to protect my community and local economy
★ Identify and create new financial incentives and business models to drive community
involvement and jobs, boosting the local economy
Do you want more information?
Do you want to trade?
★ NOTHING is more important than security, and the best way to secure your
bitcoin longterm is with this Ledger hardware wallet: http://bit.ly/get-ledger
★ Next, set up VPN: https://bitvpn.org/. Buy their basic service, and encrypt your
★ Then get https://malwarebytes.com and https://AVG.com for free!
★ Download https://authy.com/ on your mobile device and set up 2FA
★ Quality trading happens on https://bittrex.com - Get a free account,
set up 2FA, and whitelist your your withdrawal addresses to only
withdraw onto your Ledger Wallet.
★ Buy low, sell high, and store your profits with the utmost care.
ON YOUR OWN RESPONSIBILITY…
THIS IN NO