Slides presented by the BlockTren team at the YU Fintech Hackathon.

1. Introduction To
Blockchain Technology
By Menajem Benchimol
Founder & Educator.
mbenchimol@blocktren.com

2. What is “blockchain”
• The term “blockchain” refers to a computer code based system (a
“chain”) on which transactions (each, a “block”) between two
parties take place and are recorded.
• Blockchain is a “dual ledger technology” - each party gets a copy of
the transaction; only if each copy reconciles will the transaction
“complete”, which means that one-sided fraud is impossible..
• Blockchain is a record keeping system that stores and distributes
data amongst parties.
• Because everyone has a copy of the ledger, it is impossible to change
the information transacted, making the technology immutable,
transparent, and easily auditable.

3. Lets send some Eth

4. The 4 key
factors
Identity- Every
account contains a
unique public and
private key to
transact value
across the network.
A public key is like an
email address to
send and receive
transactions and the
private key is the
password to access
the account.
Transactions- Similar
to a check, In order
for a transaction to
be verified, the
sender must prove
he owns the value
sent with an
available balance,
and a signature.
Blockchain- a record
keeping distributed
database that
everyone has access
to its history.
Consensus- Miners
verify transactions
using a consensus
mechanism. Bitcoin
uses the Proof of
Work consensus.

5. First use case: Bitcoin
• After many attempts to create a truly decentralized
network, Satoshi Nakamoto introduces the Bitcoin
whitepaper in 2008. It is considered the first
successful decentralized network that registered each
transaction within a public blockchain.
• The crypto network was created to allow users to
transact value anonymously in a decentralized and
secured network, across the globe with just a
connection to the internet.
• The creator of bitcoin, Satoshi Nakamoto is an
anonymous entity unknown to this day.
• The coin first started trading at >$0.01 with a total
supply of 21 million coins being minted over time.
Today, a Bitcoin is worth $4000, has a circulating
supply of 17 million, a market cap of $60 Billion, and
33 million digital wallets in service.
• Use cases- SoV, medium of exchange, and electronic
cash for hyperinflated currencies.

6. Biggest benefits
Transparency- Every
transaction is recorded
within the distributed ledger,
thus anyone interested in
auditing a certain aspect of a
transaction, can do so freely.
Accountability- Once a
transaction happens, it
becomes immutable making
it impossible to change the
occurrence of a transaction.
Global- Everything is run
across the internet, giving no
border limits for
international transactions.
Efficiency and time- Since
the infrastructure doesn't
need middleman to verify,
time can be saved based on
direct needs with automated
processes.
Traceability- Be able to
trace the proof of origin of a
certain product.
Trust- Instead of trusting
unknown third parties,
businesses will be able to
deal peer to peer.

7. Corporations Involved With Blockchain

8. Industries that could
benefit from blockchain
• Lending- margin/derivatives, custody, token
backed loans, microloans.
• Real Estate- token backed REITs and
investments, smart contracts, land and title
registry.
• Financial Services- cross border transactions,
instant settlements, open finance, prediction
markets.
• Supply Chain- transparency of data,
traceability of products, visibility of proof of
origin.
• Healthcare- medical record management,
simplified claim processes, patient consent.

9. Open Finance

10. Lending Use
Case: Token
Backed
Collateral Loans
• Token backed collateral loans are facilitating holders to obtain
instant capital by collaterzing their tokens.
• Borrowers offer their tokens as collateral in exchange for another
asset. The most common token collateral is Ether and Bitcoin.
Borrowers prefer USD sent to their bank account as a loan.
• Platforms providing lending blockchain services: Maker,
Compound, Dharma, DyDx, Nexo.
• Lenders- asset managers, family offices and high-net-worth
individuals with a long-term view of the asset class that want to
earn additional yield from a easily liquified asset collateral.
• Borrowers- quantitative trading desks, cryptocurrency hedge
funds and active traders with a short time horizon and a desire to
capitalize on volatility in the market.
• Borrowers APR rate- Dharma offered 0.1% (sub) for
borrowing ETH, Maker 3.5% for DAI, Compound 6% for
BAT.
• Decentralized lending protocols processed $251 million in 2018.
Maker fulfilled 81% of originations.

12. Financial Services use case: Global Transactions
The internet has connected worldwide communities by allowing instant messages being sent amongst
users. Money needs an extra layer of trust in order to be sent instantly. It usually takes 3-5 days to
complete an International transaction.
Blockchain provides that extra layer of trust with its components. Cross border transactions can be
instantly settled and registered inside a distributed ledger.
•Platforms providing financial blockchain services: Bitcoin, Ripple, Stellar, R3.
JP Morgan launched the JPM Coin, a stablecoin powered by an enterprise blockchain that allows
Institutional investor clients to settle international payments at any time of the day.
Banco Santander provides same day International transactions to users with their built in
blockchain powered application run with Ripple.

14. Lightning Network
Scaling Solution
• The Lightning Network proposal: Constant transactions are
settled in an open channel that remains open for a while.
The main blockchain only interacts with opening and
closing transactions.
• For example if Bob shops at Starbucks a lot, the LN will
keep the channel open because Bob transacts often with
Starbucks thus creating a “deposit box” between the two.
Now Amy is a friend of Bob, and she wants to shop at the
same Starbucks Bob is a constant buyer of, the LN will use
the same channel Bob uses with Starbucks to settle her
transaction via Bob. This will happen with everyone in the
network as the LN will find the faster route alongside the
distributed ledger to settle a transaction within the open
channel.
• This method allows millions of transactions to happen,
minimizes transaction fees, and helps Bitcoin compete with
the likes of other payment processors like Visa that allows
40,000 TPS.

15. Where We Are Now, & Where We Are Heading

16. There are many factors for blockchain to
succeed
Regulation- Countries
are taking different
approaches to
blockchain regulatory
frameworks.
Adoption- Will users or
businesses find the
need to leverage
blockchain technology in
their everyday lives?
Escalation-- Blockchain
needs to scale up
transactions in order to
serve worldwide needs.
Education- There are a
lot of misconceptions
and knowledge gaps
about the industry.
Innovation- What will
be the killer apps?
Where will they be
developed?
Investing- VCs, Hedge
Funds, and investors are
analyzing how to take
advantage of the early
stage phase the
industry is in.
Ecosystem-
Communities worldwide
are preparing their
respective ecosystems
for mass adoptions by
making events,
educating, and
attracting top talent.

17. Questions?

18. Resources
• News and insights- Delphi Capital, TheBlock, Coindesk, BreakerMag.
• Data markets- CoinMarketCap, Messari.
• Podcasts- Off the chain, What Bitcoin Did, Unchained,
• Newsletter- Unbankd, Off the chain, Messari Unqualified Opinions.
• Books- The Bitcoin Standard by Saifedean Ammous, Debt: The First 5,000 Years by David Graeber, Mastering Bitcoin by Andreas
Antonopoulos
• Documentaries- Banking on Bitcoin (Netflix), Rizqi Presents: Blockchain (Prime), The Blockchain and Us (Youtube).
• Conversation- Reddit, Twitter, Telegram.
• Block explorers: EtherScan, blockexplorer

19. About Blocktren, LLC
We have offices in New York City, Miami and Bogota and provide training, consulting and
advice to clients across industries. Please contact our founders as follows:
Menachem Benchimol (Miami, Bogota):: mbenchimol@blocktren.com
Jonathan Ross (New York City):: jross@blocktren.com
Follow me!
Twitter: @mbenchi10
Medium: Menajem Benchimol