Blockchain Introduction
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Blockchain Introduction by Russell Castagnaro for Inaugural Built on Blockchain Denver Meetup Video at https://livestream.com/accounts/26318239/events/7960438/videos/172166399
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Blockchain Introduction
- 1. 1 Wampei helps businesses accept electronic payments directly with or without the use of a bank. TM CopyLeft Wampei, Inc 2018
- 2. 2 CopyLeft Wampei, Inc 2018
- 3. 3 Bitcoin: The First Blockchain • Double spending • Fake money • Agreeing on “The Truth” CopyLeft Wampei, Inc 2018
- 4. 4 CopyLeft Wampei, Inc 2018 Centralized • Spreadsheet • Website (No LB) • Database • Federal Government CopyLeft Wampei, Inc 2018
- 5. 5 Distributed •Replicated RDBMS •Websites (CDN) •Cell Phone Nets •DNS •Military CopyLeft Wampei, Inc 2018
- 6. 6 CopyLeft Wampei, Inc 2018 Decentralized No Single Authority • Blockchains • Torrents • Self-organizing CopyLeft Wampei, Inc 2018
- 7. 7 Which Type of Network? •Points of failure •Stability/ fault tolerance •Scalability •Ease of development •Evolution/ Innovation CopyLeft Wampei, Inc 2018
- 8. 8 Determining the TRUTH • Centralized – 1o1 • Distributed – Replication (Master / Slave) • Decentralized – Consensus Mechanism CopyLeft Wampei, Inc 2018
- 9. 9 Finding Consensus • Proof of Work • Proof of Stake • Proof of Activity • Proof of Burn • Proof of Capacity • Proof of Elapsed Time CopyLeft Wampei, Inc 2018
- 10. 10 Types of Blockchains Public • Anyone can post • Anyone can view Public Permissioned • Only sanctioned users can post • Anyone can view Private Permissioned • Only sanctioned users can post • Only sanctioned users can view. CopyLeft Wampei, Inc 2018
- 11. 11 Wampei helps businesses accept electronic payments directly with or without the use of a bank. TM CopyLeft Wampei, Inc 2018
Editor's Notes
- I’m Russell Castagnaro the CEO of Wampei. Previously I was the President of an eCommerce/ eGovernment company in Hawaii responsible for processing about $2,.1B in payments per year. We spent hundreds of hours and tens-of-thousands of dollars annually on compliance programs and audits. I learned that banks like paper checks much more than electronic payments and that the industry was desperately afraid of fraud because its technology and systems were obsolete. Which led me to cofound Wampei to free merchants from the tyranny of third-party processors.
- I know that you’ve heard that Blockchain will solve the world’s problems. This is overly optimistic. The same things have been said about computers, guns, relational databases, basically all innovations are touted to be the end-all-be-all. Lets unpack this thing called the blockchain
- The first blockchain was the Bitcoin blockchain. Without going too much into the detail. Satoshi, et al needed to handle a few big problems that had stopped progress for electronic cash. Double spending – no spending BTC more than once Fake Money – You can’t just will money into being there The Truth – There has to be a framework where disparate nodes can all agree on what the truth is. That truth in Bitcoin is a Distributed Ledger that tracks all funds in the network. That is where Consensus comes in. The Bitcoin blockchain revolutionized things with a decentralized consensus mechanism. More on that in a minute.
- Backing up a bit lets talk about systems really quickly: Centralized systems are easy to understand. We work with them every day. Companies that track things in a spreadsheet or database. Websites that aren’t load balanced even – some would argue – the federal government.
- A distributed system spreads nodes out from the centralized system. You need a method to keep everything in sync so replication or a website with a Content Delivery Network or even cell phone Networks are good examples of a Distributed Network. Loosing a node or two doesn’t shut the system down.
- Decentralized systems or peer to peer systems don’t have a main node, each node is essentially equal. Loosing a number of nodes does not bring down the network. They use distributed consesus mechanisms to stay in sync. Torrents, Blockchains, economic markets and even Ants act like decentralized systems .
- There are many reasons why you might choose one type of network over another. We won’t get into that here…
- In centralized systems there is one and only one truth Distributed systems depend on one of a few different replication strategies to stay in sync. If you loose one or two nodes, you can get out of sync, but still run. Not good for finances Decentralized leverages consensus mechanisms. The network determines the consensus mechanism to be used.
- These consensus mechanisms are very different POW – the nodes (miners) perform validatable work that CPU time that runs the system. POS – nodes invest (lock up funds) that essentially vouch for transactions POA – Combines POW and POS – its confusing POB – Nodes destroy value (coins/ currency) for the privalege to mine POC –Pay to play with your capacity POET – Intel specific
- Public blockchains are open to anyone for transactions or viewing – Bitcoin / Eth In public permissioned blockchains certain users can write, but all can view – Public Business or Bourbon Registry Private Permissioned are typically run by a single entity or a consortia who lock down access to the blockchain at all levels – SAP Database