Presented during Blockchain Vlaanderen #7 on 20/04/2017, organised by Kunstmaan and Antwerp Management School. The assignment: host a basic introduction into blockchain, share some insights on smart contracts and explain why financial institutions choose other ledgers than bitcoin.

1. Koen Vingerhoets – find me on

2. Agenda
1. Shortest blockchain intro ever
2. A high level view on distributed ledger technology
3. Capita selecta : smart contracts
4. Capita selecta : which blockchain?
5. Closing thoughts

3. 2008 – “Satoshi Nakamoto” writes…

4. Bitcoin is a unique transfer of value

5. Blockchain persists all the unique transfers

8. Agenda
1. Shortest blockchain intro ever
2. A high level view on distributed ledger technology
3. Capita selecta : smart contracts
4. Capita selecta : which blockchain?
5. Closing thoughts

9. Blockchain : a new paradigm

10. Blockchain : a technical definition
The blockchain is, from a technical point of view,
 A unique, public and transparent distributed ledger
 That stores all transactions immutably and
 Permits predefined actions on those transactions
 In a cryptographically secured environment.

11. Blockchain : a business definition
The blockchain is, from a business point of view,
 A shared platform
 On which parties who don’t know or trust each other
 Are able to collaborate with respect for privacy
 Without relying on a possibly corrupt administrator.

12. Understanding distributed ledgers
Nomen est omen : blockchain
A transaction is
- Declaration of an incident
- Pictures of the accident
- Signed contract
- A proof of payment
- An offer from car repair
- Steps in the RDR wizard
- …

13. Understanding distributed ledgers
Encryption vs hashing
vs
1. Every hash is unique
2. Infinitly reproducable
3. One way traffic
A hash is NOT unique

15. Blockchain : a database with benefits

16. Transparency
Blockchain : a database with benefits

17. Understanding distributed ledgers - transparency
Permissioned vs permissionless
vs

18. Ownership
Transparency
Blockchain : a database with benefits

19. Understanding distributed ledgers - ownership
How value is stored
Nicki -> KoenIN 0,8 BTC
Wim -> KoenIN 0,6 BTC
Koen -> ThomasOUT 1 BTC
Wim -> KoenREST 0,4 BTC
Koen receives two payments
- 0,8 BTC from Nicki
- 0,6 BTC from Wim
Koen transfers 1 BTC to Thomas
- 0,8 BTC + 0,2 BTC
- 0,4 BTC is unspent transaction
• (A defined number of) assets are
stored on the blockchain
• Each asset is identified
• Assets are divided
• Assets are transferred (not copied)
=> Clear view on who owns what when.

20. Ownership
Transparency
Traceability
Blockchain : a database with benefits

21. Understanding distributed ledgers - traceability
Defense of the sequence

22. Ownership
Transparency
Traceability
Distributed
Blockchain : a database with benefits

23. Understanding distributed ledgers - distributed
Centralized vs distributed
Trusted party &
Single point of failure

24. TrustOwnership
Transparency
Traceability
Distributed
Blockchain : a database with benefits

25. Understanding distributed ledgers - trust
Consensus as a service

26. TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain : a database with benefits

27. Understanding distributed ledgers – smart contracts
Smart contracts

28. TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain : a database with benefits…
… to share with our friends ...

29. Blockchain : a database with benefits…
… to share with our friends ...
… to have a single shared source of truth.
Blockchain:

30. Agenda
1. Shortest blockchain intro ever
2. A high level view on distributed ledger technology
3. Capita selecta : smart contracts
4. Capita selecta : which blockchain?
5. Closing thoughts

31. The problem with smart contracts

32. Smart contracts : a definition
A smart contract is an agreement whose execution is both automated and enforceable.
• The actual “transaction” among parties is expressed through and independently
executed by computer code, no party can block it or otherwise tamper with.
• It constitutes legally binding rights and obligations of the involved parties.
Advantages:
• Parties are in consensus at all times as to the existence, nature and evolution of
the facts shared among them, which are governed by the program.
• Used to satisfy
• common contractual conditions,
• lower transaction costs and risk, and
• eliminate the need for trusted intermediaries.

33. Smart contracts : a workflow

34. Smart contracts : a Ricardian Contract

35. Agenda
1. Shortest blockchain intro ever
2. A high level view on distributed ledger technology
3. Capita selecta : smart contracts
4. Capita selecta : which blockchain?
5. Closing thoughts

36. Blockchain taxonomy
Stakeholders
Public
Consortium
Private
Permissions
Permissionless
Permissioned
on
Permissionless
Permissioned
Granularity
of trust
Blockchain
Distributed
ledger
BITCOIN
FINANCIAL
INSTITUTIONS

37. Blockchain & financial institutions : the forgotten words
LIABILITY GOVERNANCE REGULATIONS

38. Agenda
1. Shortest blockchain intro ever
2. A high level view on distributed ledger technology
3. Capita selecta : smart contracts
4. Capita selecta : which blockchain?
5. Closing thoughts

39. 1. Blockchain strategy is about collaboration.
2. Not just IT, also business is involved (risk appetite).
3. Unpredictable reactions of regulator & Government.
4. Financial signals (ROI) are problematic.
5. Radical uncertainty is the norm.

40. We
The financial system relies on trust & data.
Blockchain is trust & data.

41. While I catch my breath now,
some people have to catch their breath
all their life.
With public speaking, I raise bitcoin to support
improving the daily lives of people with cystic fibrosis.
Open your BTC wallet on your smartphone, scan this code.
Or use 1JmSPfvJ751BYi7TVD8xXqWzPpGXqrW9Fj as recipient.
Proceeds go to Muco vzw (www.muco.be)
Thank you for your support and appreciation.
More info, questions or remarks?
Koen.Vingerhoets@kbc.be
Twitter : @IthronKoen
Distributed Ledger Technology Adviser
@ KBC Bank & Insurance