Startup Week Catania - 15/11/2018

1. The Bitcoin revolution
Federico Tenga
federico@chainside.net
Co-founder at Chainside

2. Why money?

8. Bitcoin objective:
Recreate in the digital world a
cash like experience

9. Goals

10. • p2p transactions
Goals

11. • p2p transactions
• Censorship resistant
Goals

12. • p2p transactions
• Censorship resistant
• Permission-less
Goals

13. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
Goals

14. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Goals

15. Decomposing the problem

16. WHO is transacting?
Decomposing the problem

17. WHO is transacting?
WHERE do we keep track of the transactions?
Decomposing the problem

18. WHO is transacting?
WHERE do we keep track of the transactions?
WHAT is the object of the transactions?
Decomposing the problem

19. WHO is transacting?
WHERE do we keep track of the transactions?
WHAT is the object of the transactions?
WHEN are the transactions occurring?
Decomposing the problem

20. CENTRALIZED WAY
A coordinator manages the
identities of everybody with
a credentials system (i.e.
username and password)
WHO is transacting?

21. DECENTRALISED WAY
There is no centralised
coordinator, people identify
each other using digital
signatures
WHO is transacting?

23. CENTRALIZED WAY
A coordinator maintains a
ledger keeping track of
everybody’s transactions
WHERE do we keep track of transactions

24. DECENTRALISED WAY
There is no centralised
coordinator, everybody
keeps a copy of the ledger
WHERE do we keep track of transactions

25. CENTRALIZED WAY
A centralized issuer has the
power to create money for
everybody (e.g. central
bank)
WHAT is the object of the transaction?

26. DECENTRALISED WAY
Whoever is willing to burn
energy for this scope, is
able to create money (with
limitations)
WHERE do we keep track of transactions

32. CENTRALIZED WAY
A centralised coordinator
gives chronological order to
the transactions of
everybody
WHEN are the transactions occurring?

33. DECENTRALISED WAY
Whoever is willing to burn
energy for this scope, can
contribute to give
chronological order the the
transactions and is
rewarded with new bitcoins
WHERE do we keep track of transactions

34. The blockchain

36. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Recap

37. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Recap

38. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Recap

39. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Recap

40. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Recap

41. • p2p transactions
• Censorship resistant
• Permission-less
• Store of value
• Privacy-aware
Recap
almost

42. The ability of an asset to be a good trading token can be
valuated comparing fungibility, divisibility, portability,
scarcity and durability.
Why Bitcoin is a good form of money
Fungibility Divisibility Portability Scarcity Durability
Fiat currency
Coffee beans
Diamonds
Gold
Bitcoin

43. How can Bitcoin become
mainstream?

50. • Data notarization: the blockchain can be use like a
neutral and secure timestamping server
• Issued assets: the blockchain can be used to issue
generic asset that represent a good of a right
guaranteed by a legal framework
Secondary use cases of the blockchain

51. • The monetary use case is the main application of the
blockchain
• Other use cases exist, but with a less significant
potential impact
Conclusion

52. Thanks