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High Level intro to Blockchain


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From the ancient use of codes and ciphers to today’s ICO bubble, cryptography - the technology used to protect sensitive information, began thousands of years ago. Today, the cumulative knowledge of some of the brightest minds has lead to one of the most controversial inventions of all times - one, which has the potential to impact almost every aspect of our lives, social and economic.

Published in: Technology

High Level intro to Blockchain

  1. 1. High Level intro to Blockchain Konstantins Vasilenko COO, Co-Founder @ Board Member of Latvian Blockchain Association
  2. 2. What is Blockchain? What is Bitcoin?
  3. 3.  A digital ledger used to record all transactions made in bitcoin or another cryptocurrency Chronologically Publicly Permanently
  4. 4. Decentralized money (analogy)  Yap is a nation in the South Pacific, living on a set of Islands  Rai stones – Used for exchange  circular stone disks that can be up to 3.5 m in diameter and weigh up to 4000 Kg!  Trading stones of this size is difficult
  5. 5. Centralized Ledger  Write down every transaction in a book called a ledger  Bookkeeper appointed  Alice pays Bob 10 lbs of Rai,  Alice goes to bookkeeper’s house and announces the transaction.  Everything worked well for a while, but gradually, problems appeared:  Fee’s, Availability of Bookkeeper,  Corruption  Centralization of Power
  6. 6. Decentralization and More Trust “trustless”  Decided to find a new way  Every family would maintain its own ledger!  Alice pays Bob 10 lbs of Rai,  Alice announces the new transaction to all other families.  Each family would then check their own ledger  No a single family had more power than any other!
  7. 7. To Centralize or Decentralize?
  8. 8. What is Mining?
  9. 9. What is interesting in Blockchain?  The interesting things in Bitcoin Blockchain are: It’s Open (Anyone can access it) Immutable No need to ask for any permission (Permissionless) Borderless (like internet) Neutral (race, religion, wealth agnostic) Decentralized Censorship resistant
  10. 10. Other Blockchains and Altcoins  1500+ and counting  Some are Currencies  Dash, Monero, Litecoins, Ripple, etc…  Some represent Company/Project Shares  Steem, Augur, Decent, Iconomi, etc…  Some are Platforms - Ethereum  Imagine Public Cloud for Programmers  Smart Contracts – legal contracts represented by Code
  11. 11. Invest in Bitcoin? Altcoins? Blockchain?  Bitcoin! Maybe? 500’000$ by 2030? At your own Risk.  From 1500+, 90% are worthless or Scams (“Scamcoins”)  “Buy MEGA Coin, earn 100% daily, bla bla” - SCAM  Invest your time to understand it, get the skills, understand industry, innovate, make a career or startup, an opportunity for you as an individual
  12. 12. Types of Blockchains  Public blockchain Anyone can use it, send transactions, participate, explore the blockchain, validate it.  Example: Bitcoin, Ethereum  Consortium blockchain Controlled by a pre-selected set of nodes; for example consortium of 15 financial institutions, each operates a node. The right to read the blockchain may be public, or restricted to the participants.  Example: R3  Private blockchain Permission management is kept centralized to one organization. Read permissions may be public or restricted to an arbitrary extent.  Examples: Eris Industries, Multichain
  13. 13. Blockchain in Finance and Banking  The question remains, will Blockchain technology revolutionize the finance and legal industries in the same way the Internet changed the media industry, once and for all?  R3 ( 80 of the world's leading financial institutions and regulators joined  Use Cases:  Payments  KYC/AML & Records Management  Asset Management (“Bank coins”, e.g. Fedcoin, Cadcoin)  Smart Contracts (Automation of Legal Agreements, Automated Payments)  Lending, issuing letters of credit, factoring, export credit and insurance.
  14. 14. Blockchain in Public Sector “The part of an economy that is controlled by the state.”  State Registers  Various Public Archives  Company registers  Various Government Datas  Distribution of grants  Land Registers  E-Residency  E-Health
  15. 15. Blockchain in Logistics & Supply Chain The blockchain has the potential to transform the supply chain and disrupt the way we produce, market, purchase and consume our goods  Share your product’s journey and your business impact on environment and society.  Follow the movement of pork in China with a blockchain.  Track mineral analysis done by outside vendors  identifying data on a million individual diamonds to a blockchain to comply with regulations barring “blood diamond” products.
  16. 16. And many more areas  Crowdfunding (ICO’s, Decentralized Markets)  Governance (elections, polls)  File Storage  Prediction markets  Protection of intellectual property  Internet of Things (IoT)  Stock trading  Web 3.0?
  17. 17. Try out Blockchain  Hyperledger  open source cross-industry blockchain technologies hosted by The Linux Foundation,  Open Chain, Multi Chain,  Open source technologies for custom Public and Private Blockchains  Ethereum  Ethereum is a decentralized platform that runs smart contracts   open source, create own Crypto Currency, runs smart contracts  Blockcypher  Bitcoin Blockchain Web Services and API’s
  18. 18. Why Companies and Governments Invest in Blockchain?  Main Drivers:  Efficiency (e.g. Santader estimates $20Bn / year in savings)  New Businesses (e.g. digital trades between financial institutions)  Ecosystem (e.g. removing redundant Ledgers between banks, regulators, state orgs.)  Main Challenges:  Collaboration  Regulation  Integration
  19. 19. Hype?  Gartner: blockchain will come to be "transformational" across a variety of industries, in 5-10 years away from now
  20. 20. BLOCKCHAIN became an Industry by it self  Companies: We want Blockchain, red one please!  Consultants: Yes We Can! More $$$ please  Silicon Valley - goto random hotel, switch off lights, stand in front of mirror and say blockhain 3 times – 10 VC’s will jump out and throw millions of $$$ at you
  21. 21. Google Trends
  22. 22. We are Hiring!  PHP Developer  Customer Care Representative 