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Tokyo FinTech Meetup #5
September 8, 2017

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How to reach us:
Tokyo FinTech Meetup Page
YouTube Recordings
Tokyo FinTech Meetup #5
September 8, 2017

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Presentation #1
Jeff Wentworth
Curvegrid
Tokyo FinTech Meetup #5
September 8, 2017

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Introduction to Ethereum
A blockchain app platform
Tokyo FinTech Meetup
September 8, 2017
curvegrid.com

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Building a blockchain application server to help companies use this technology.
Established May 2017
2
Jeff Wentworth
Previously Vice President in Storage
Engineering at Goldman Sachs
William Metcalfe
Former CTO at Gilt Japan

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Consider a double-entry bookkeeping ledger.
Blockchain is a decentralized ledger
3
Account Debit Credit
Alice 2,000 Ξ
Bob 2,000 Ξ
Ξ is the currency symbol for Ether

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Transactions are an atomic entry on the ledger.
Introduction to the Ethereum blockchain
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Transaction Account Debit Credit
1 Alice 2,000 Ξ
Bob 2,000 Ξ

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Transactions are grouped together into blocks. Blocks are appended to the ledger
and immutable.
Introduction to the Ethereum blockchain
5
Block Transaction Account Debit Credit
12938 1 Alice 2,000 Ξ
Bob 2,000 Ξ
2 Carl 1,500 Ξ
Diana 1,500 Ξ

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Introduction to the Ethereum blockchain
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Block Transaction Account Debit Credit
12938 1 0x177569f45f04bfbde900af
fa623910f5b28d5295
2,000 Ξ
0x1c4e909083d80185df10a
60fd5ed25402e996eeb
2,000 Ξ
2 0xf26b36ee790c3d04c84c
488e067b37ef47f43ffe
1,500 Ξ
0x08780e78886ed5662a4
59d318b70ec738a9188cc
1,500 Ξ
Account “names” are actually very large
numbers (represented here in base-16)

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Introduction to the Ethereum blockchain
7
Block Transaction Account Debit Credit
12938 1 0x177569f45f04bfbde900af
fa623910f5b28d5295
2,000 Ξ
0x1c4e909083d80185df10a
60fd5ed25402e996eeb
2,000 Ξ
remit(“0x08780e78886ed5662a459d318b70ec738a9188cc”,
“0x51391b8604587e3c”, 3600)
Transactions can include computer code that will
run on the blockchain.
This is invoking a function called remit() with
some parameters.

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Introduction to the Ethereum blockchain
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Block Transaction Account Debit Credit
12938 1 Alice 2,000 Ξ
Bob 2,000 Ξ
remit(“0x08780e78886ed5662a459d318b70ec738a9188cc”,
“0x51391b8604587e3c”, 3600)
Who or what is Bob?
(account 0x1c4e909083d80185df10a60fd5ed25402e996eeb)

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Introduction to the Ethereum blockchain
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Block Transaction Account Debit Credit
6054 1 contract Bob {
...
function remit(address _recipient, bytes32 _pwHash, uint _timeout)
public payable
returns (bool success) {
trackedBalance = msg.value;
remitter = msg.sender;
recipient = _recipient;
pwHash = _pwHash;
deadline = now + _timeout;
return true;
}
...
}
Bob is a computer program that was uploaded to,
and runs on, the Ethereum blockchain.
remit() is one of the
functions that Bob can
perform.

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Computer programs on the blockchain
Also called smart contracts.
Can hold and dispense value (Ether).
Are governed by the rules of their computer code.
Like other credit and debit entries on the Ethereum ledger, are immutable.
Can be inspected and invoked by anyone who has access to the blockchain.
Cost “gas” to invoke. Currently ¥19 for a simple transaction.
A limit on gas prevents runaway contracts.
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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Decentralized Apps (DApps)
A DApp is the combination of traditional software with a smart contract running on
a blockchain.
Potential applications include:
Document attestation: a contract was signed by person X at time Y
Know your customer (KYC) and anti-money laundering (AML)
Securities: stocks, bonds, futures, options, insurance
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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Blockchain as a decentralized ledger
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Block Tx Account Debit Credit
12938 1 0x177569f45f0 2,000 Ξ
0x1c4e909083 2,000 Ξ
2 0xf26b36ee79 1,500 Ξ
0x08780e7888 1,500 Ξ
Ethereum Ledger
Node A
Node B
Node C
Node D
Node X
Every node has a copy
of the ledger
Nodes communicate
peer-to-peer over the
Internet to update the
ledger
Node E
Nodes are servers,
desktops or laptops

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Safeguarding the integrity of the Ethereum ledger
Node A
Node A
Node A
Node ANode A
Node X
Block 0
(Jul 30, 2015)
Block 4,248,573
(Sep 8, 2017)
“Mining” nodes race to solve a complex math
problem
Winning mining node gets an Ether reward
created out of thin air (money supply
increase), plus all of the gas (fees) for the
transactions in the block
Work
When a block is added
to the ledger, it is linked
to the block before it
and includes proof of
the “mining work”
Hence the process is
called “Proof of Work”

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Safeguarding the integrity of the Ethereum ledger
Node A
Node A
Node A
Node ANode A
Node X
Block 0
(Jul 30, 2015)
Block 4,248,573
(Sep 8, 2017)
Work
Node Z
Node Y
Work
Malicious actors
would have to start
from scratch to spoof
an entry in the ledger
They would never be
able to catch up
Would need to beat the formula:
Effort = Blocks x Work x Time

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
People, organizations and technologies
Ethereum founders include
Vitalik Buterin: Ethereum White Paper, Lead developer
Dr. Gavin Wood: Ethereum Yellow Paper (technical details)
Organizations and consortiums include
Ethereum Foundation Enterprise Ethereum Alliance ConsenSys
Fiat currency to Ethereum exchanges in Japan include
BitFlyer CoinCheck Quoinex
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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
People, organizations and technologies (Cont).
Ethereum node software (clients) include
Geth Parity CppEthereum MyEtherWallet
Technologies include
Ethereum Naming Service (ENS) Initial Coin Offering (ICO)
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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Initial Coin Offering (ICO) or Token Sale
Raising money on the blockchain via a crowdsale of tokens.
Ownership of a token is recorded within a smart contract on the Ethereum ledger.
ICOs globally1
: Jan 2017: US$15M
Jul 2017: US$637M
VC funding globally2
: US$500M/month
Possibly subject to securities regulations.
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1
CoinSchedule Cryptocurrency ICO Stats 2017, https://www.coinschedule.com/stats.php?year=2017
2
Has ICO Cryptocapital Exceeded Early Stage Venture Capital Funding? Yes., http://startupmanagement.org/2017/07/10/has-ico-cryptocapital-exceeded-early-stage-venture-capital-funding-yes/

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Sample Tokens
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Source: Coin Market Cap, CryptoAsset Market Capitalizations, https://coinmarketcap.com/assets/views/all/, retrieved 2017-09-08

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Ethereum to USD Historical Price
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Ether/USD Price
Jul 30 2015 to Sep 8, 2017
Source: Ethereum Price, http://www.ethprice.com/, retrieved 2017-09-08
Feb 23, 2017
US$12.69
Sep 8, 2017
US$332.31

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© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08
Thank you
20curvegrid.com

24.
Presentation #2
Geoff Wells
IBM
Tokyo FinTech Meetup #5
September 8, 2017

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• A collaborative effort created to advance cross-industry
blockchain technologies for business
• Announced December 2015, now around 150 members
• Open source, open standards, open governance
• Five frameworks and three tools projects
• IBM is a premier member of Hyperledger
www.hyperledger.org
Brian Behlendorf
Executive Director
Blythe Masters
Board Chair
Chris Ferris
TSC Chair

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Source: https://www.hyperledger.org/about/members
Updated 21 August 2017

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• An implementation of blockchain technology that
is a foundation for developing blockchain
applications
• Emphasis on ledger, smart contracts, consensus,
confidentiality, resiliency and scalability.
• V1.0 released July 2017
– 159 developers from 27 organizations
– IBM is one contributor of code, IP and
development effort to Hyperledger Fabric
http://hyperledger-fabric.readthedocs.io/

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• A suite of high level application abstractions for business networks
• Emphasis on business-centric vocabulary for quick solution creation
• Reduce risk, and increase understanding and flexibility
• Features
– Model your business networks, test and expose via APIs
– Applications invoke transactions to interact with business network
– Integrate existing systems of record
• Fully open and part of Linux Foundation Hyperledger
• Try it in your web browser now:
http://composer-playground.mybluemix.net/
https://hyperledger.github.io/composer/
Business Application
Hyperledger Composer
Blockchain
(Hyperledger Fabric)

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•
•
•
•

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www.ibm.com/blockchain
developer.ibm.com/blockchain
www.hyperledger.org

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Presentation #3
Munetoshi Yamada
R3
Tokyo FinTech Meetup #5
September 8, 2017

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The R3 Consortium
- Leading the world’s largest Distributed Ledger consortium for F.I.
- Focusing on developing a next generation financial transaction network.
Our goal
Build R3Net with Corda

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What is R3Net ?
# Network participant Role description
1 F.I. (Financial institution)  F.I.s transact each other in any
type of financial agreements.
2 Oracle  Provide external facts such as
interest rate, foreign exchange
rate, etc.
 Think of Tomson Reuters and
Bloomberg.
3 Notary  Prevent double spending
 Provide signatures when a peer
commit a transaction
 Validating notary and non-
validating notary
4 Regulator  Receive all the transactions
within their jurisdictions
 Real-time monitoring
 Regulatory reporting 
Regulatory querying
Oracle
F.I.
Notary
Regulator
F.I.
F.I.

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Node internals
Corda Enterprise
CorDapps
Corda Open Source
Multi-
threading
…SGX
Modular
RDBMS
Trade
Finance
…
OTC
derivatives
Identity
Corda
components
…
Network
Map Service
Vault
Oracle
F.I.
Notary
Regulator
F.I.
F.I.

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What is Corda?
Purpose：Build an enterprise grade platform specialized in financial transaction
Data Sharing Model
”Need-to-know” basis, No
broadcasting
Transaction validation
Validated by parties to the
transaction, No Block, No PoW
Consensus
Uniqueness service provided
Transaction style
UTXO model employed, Execute
in parallel
Regulatory requirement
Enable regulatory nodes,
ensuring transparency
Scripting language
Kotlin, Java

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Roadmap 2017
Q1 2017 Q2 2017 Q3 2017 Q4 2017
Corda Open Source
& Enterprise
Corda Enterprise
announcement
with key partners
Corda
maintenance
contract launch
Initial R3 Corda
network services
launch
Corda open
source v1.0 release
Corda Enterprise
v1.0 launch
Platform capable
of supporting pilots
First community-
organized Corda
Meetup
HQLAx announce
live pilot on Corda
Corda Testnet live
Corda Training
launched globally
Corda
DemoBench
released
Corda open
source Beta
announcement
Corda support
contract launch
5