Ismail Hakkı Polat's presentation on "Bitcoin Blockchain and more; From Digital Trust Protocols to Smart Contract based Networks" @ 6th International Management Information Systems Conference in Istanbul

1. Bitcoin Blockchain & More;
From Digital Trust Protocols
to Smart Contract based Networks
Ismail Hakkı Polat – 10.10.2019
6th International MIS Conference -Istanbul

2. Big Picture 

3. Decentralisation of Communications
Centralised Decentralised Dağıtık
?

4. Decentralisation of Media
Dağıtık
?
Centralised Decentralised

5. Decentralisation of Money
Merkezî GayriMerkezî Dağıtık
?

7. Cypherpunks
The Digital hippies of 21st Century

8. A Cypherpunk’s Manifesto
"Privacy is necessary for an open society in
the electronic age. Privacy is not secrecy. A
private matter is something one doesn't want
the whole world to know, but a secret matter is
something one doesn't want anybody to know.
Privacy is the power to selectively reveal
oneself to the world."
Eric Hughes; A Cypherpunk’s Manifesto,1993.

9. Cypherpunks in 90’s
• Jacob Appelbaum: Tor devleoper
• Julian Assange: Founder of WikiLeaks
• Adam Back: Inventor of Hashcash, Co-founder of Blockstream
• Bram Cohen: Creator of BitTorrent
• Hal Finney: Main Author of PGP 2.0, Creator of Reusable PoW
• Tim Hudson: Co-author of SSLeay, the Precursor to OpenSSL
• Paul Kocher: Co-author of SSL 3.0
• Moxie Marlinspike: Founder of Open Whisper Systems (Signal)
• Zooko Wilcox-O'Hearn: DigiCash developer, Founder of Zcash
• Philip Zimmermann: Creator of PGP 1.0

10. Cypherpunk Highlights
• 1990lar
– Wei Dai: b-money (Smart Contracts, Proof of Stake)
– Adam Back: Hashcash (Double Spending)
• 2000ler
– Hal Finney: Hashcash+ (Reusable Proof of Work)
– Nick Szabo: Bitgold (Computational Mining)
Satoshi Nakamoto; A peer-to-peer electronic cash system
https://medium.com/swlh/the-untold-history-of-bitcoin-enter-the-cypherpunks-f764dee962a1

12. Satoshi Paper
"The traditional banking model achieves a level of privacy
by limiting access to information to the parties involved
and the trusted third party. The necessity to announce all
transactions publicly precludes this method, but privacy
can still be maintained by breaking the flow of information
in another place: by keeping public keys anonymous. The
public can see that someone is sending an amount to
someone else, but without information linking the
transaction to anyone. This is similar to the level of
information released by stock exchanges, where the time
and size of individual trades, the 'tape', is made public, but
without telling who the parties were."

13. Satoshi Paper
"The traditional banking model achieves a level of privacy
by limiting access to information to the parties involved
and the trusted third party. The necessity to announce all
transactions publicly precludes this method, but privacy
can still be maintained by breaking the flow of information
in another place: by keeping public keys anonymous. The
public can see that someone is sending an amount to
someone else, but without information linking the
transaction to anyone. This is similar to the level of
information released by stock exchanges, where the time
and size of individual trades, the 'tape', is made public, but
without telling who the parties were."

14. 10 years of Bitcoin
1 USD = 1.309 BTC
(5.10.2009)
1 BTC = 1.309 USD
(29.11.2013)

15. The Evoulution of Money

16. Digital? Crypto?
Electronic
Money
Digital
Currency
Crypto
Currency
Network Central Decentral
User Open Private
Transaction Private Public
Security Digital Crypto

17. Bitcoin; Basics
• Decentralised Network (p2p)
• Private User
• Public Ledger
• Crypto Security
Blockchain

18. Blockchain; Decentralised
• Decentralised Network (p2p)
• Private User
• Public Ledger
• Crypto Security

19. Blockchain; Private but Public & Crypto
• Decentralised Network (p2p)
• Private User
• Public Ledger
• Crypto Security

20. Bitcoin
A network protocol
which enables
p2p (decentralised)
user-anonymous but ledger-transparent
and crypto-secure
financial transactions which provide
faster, cheaper and trust-free
monetary systems for all
Digital Finance Protocol

21. Blockchain is more…
A network protocol
which enables
p2p (decentralised)
user-anonymous but ledger-transparent
and crypto-secure
financial transactions which provide
faster, cheaper and trust-free
monetary systems for all
Digital Trust Protocol

22. The Industries Blockchain Disrupt
• Finance
• Cyber Security
• Supply Chain Management
• Forecast Systems
• Insurance
• Internet of Things
• Pool transportation
• Cloud Systems
• Charity Systems
• Voting
• Utilities
• Public Charity
• Enegry Grids
• CopyRight Systems
• Health Systems
• Online Retailing
• Real Estate
• Crowd Funding

25. Pros-Cons
• Fast, cheap, money/info transfer
• Secure & transparent transactions
• Privacy
• Time-space (customs!) free network structure
• Trust and intermediary free operation
• Irrevocability of transactions
• The excessive consumption of energy

26. Bitcoin/CryptoCurrency vs Blockchain
Satoshi Paper IBM Blockchain Concept My Hybrid

27. Cryptocurrency vs Blockchain
MONETARY PROTOCOLS
Decentralised Network
Public Ledger
Anonym User
Crypto Security
NON-MONETARY
TRUST PROTOCOLS
Smart Contracts
Governance Chains
NON-BLOCKCHAIN
MONETARY PROTOCOLS
HashGraph
DAG
Holochain

28. Smart Contracts
Digitalisation of traditional social or commercial protocols
into algorithmic codes in order to initialize and manage the
contract period by eliminating the middlemen

29. Why ”Smart”?
All promises and conditions are run by an
BlockChain based algorithmic protocol
turned into a Smart Contract code

32. A Smart Contract Code (Escrow)

33. A SC Code Sample (Car Lease)

34. A SC Code Sample (2)

35. A SC Code Sample (3)

36. A SC Code Sample (4)

37. Law is Code/Code is Law

38. Examples: Musicoin
YouTube
Spotify Apple Music
Deezer

39. Supply Chain Smart Contracts

40. SC based Insurance

41. https://medium.com/@propy/propy-completes-the-1st-real-estate-deal-recorded-on-blockchain-edcec38b5f19
SC based Real Estate (Vermont-USA)

42. SC based Real Estate (Vermont-USA)

44. Decentralised Wikipedia

45. FacebookChain  Libra

46. Libra; Pandora’s Box

47. Wall Street

48. Goldman Sachs – Circle Coin

49. Central Bank Digital Currencies

50. The Future of Monetary System
Government Backed Digital Currency1 Government Backed Digital CurrencyN…
Company Crypto1 Company CryptoN… Company Crypto1 Company CryptoN…
CryptoStartup1 CryptoStartup2 CryptoStartupN CryptoStartup1 CryptoStartup2 CryptoStartupN
Blockchain Monetary Ecosystem

51. The Future of Economy & Commerce
Government Blockchain1 Government BlockchainN…
Company BC1 Company BCN… Company BC1 Company BCN…
BCStartup1 BCStartup2 BCStartupN BCStartup1 BCStartup2 BCStartupN
Govenance over Blockchains

52. Evolution of Governance
Autocracy Aristocracy Meritocracy
Centralised
Economy & Society
Distributed
Economy & Society
TRANSFORMATION
Decentralised
Economy & Society

53. Critical Issues
• The balance between privacy and security
– Pseudonym
• The resistance from intermediaries
• Lack of literacy on Digital & Blockchain

54. THANKS
ismail.polat@khas.edu.tr