The document provides an overview of blockchain technology, explaining its nature as decentralized, immutable databases that facilitate secure transactions. It discusses both the benefits of blockchains, such as creating digital scarcity and enabling innovative applications like smart contracts, as well as potential challenges like issues of identity and legal regulation. Ultimately, it highlights the transformative potential of blockchain in various sectors, especially in providing transparent and auditable records while also addressing privacy concerns.

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Distributed:Health — October 2016
B L O C K C H A I N 1 0 1
www.bloq.com

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BLOCKCHAIN
101

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WHAT ARE BLOCKCHAINS?
HOW DO THEY WORK?

4. 9 FACTORS OF BLOCKCHAIN
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Trust Shifting Decentralization Automation
Cryptography Permission-less Validity
Immutability Uniqueness Authentication
MACHINE TO MACHINE
PKI LIKE THE INTERNET CONTINUAL SYSTEM SELF
& CROSS CHECKING
NO REWRITES NO DOUBLE SPENDING EVERY ACTION IS
AUTHENTICATED

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BLOCKCHAINS ARE
NETWORKS
Like the Internet, blockchain value
derives from network participants.
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BLOCKCHAINS ARE
DISTRIBUTED, IMMUTABLE
DATABASES
They are technological infrastructure.
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They contain an historic
record of every transaction
and are easily auditable
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They are resilient due to network
power and cryptographic integrity
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The distributed computing power provides
certainty (via proof of work) to the data via
“confirmations” of transactions and a large
economic disincentive for malicious actors
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PERMISSIONED CHAINS =
SYNDICATE
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PUBLIC BLOCKCHAINS =
THE INTERNET
PRIVATE CHAINS =
AN INTRANET

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WHAT PROBLEMS CAN
BLOCKCHAINS SOLVE?
HOW DO THEY SOLVE THEM?

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Creating “Digital Scarcity”: making it extremely
difficult (practically impossible) to double spend
Creating immutability: blockchains are
unalterable historic records
DIGITAL UNCERTAINTY / DUPLICITY
– THE “DOUBLE SPEND” PROBLEM –
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Civics 101: Neutral ground, a level playing field.
A “trust-shifted” system: removing the
requirement for an arbitrator for settlement.
No need to trust owner of the remote computer
(such as a clearinghouse).
3RD PARTY & COUNTERPARTY DEPENDENCY
– THE “TRUST” PROBLEM –
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OPPORTUNITIES THAT ARISE
FROM THIS TECHNOLOGY

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Blockchains as public
technology infrastructure: a
greenfield platform for
innovation.
Blockchain technology allows for
the creation of notarised
unalterable “fingerprints” of files,
which is a great tool for open,
secure and permanent record
keeping, with real-time auditing.
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Blockchain digital currencies can
be used as secure tokens for
any asset
Programmable contracts (smart
contracts) that can interact with
blockchains, or even run on
them (eg: Ethereum), allow you
to combine record keeping and
asset transfer in one application.
And More....

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Patient-centric data (self sovereign)
Paradox:
Transparency and data access vs.
privacy (HIPAA)
Claims processing- months!
Secure, multi-party write access
Multi-party, multi-step payouts
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Interoperability - EHR/EMR
Provider credentialing and
enrollment
Transferring provider from state-
to-state:
Slow, painful (DEA numbers)
Audit trails

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WHAT PROBLEMS DO
BLOCKCHAINS CREATE?

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No real world identity: information only
Ownership becomes a matter of what you know, not what
you have
Novel asset forms
are bitcoins a security, commodity, money, etc?
What does this mean for regulators/audit/etc
ubiquitous liquidity: fixed assets embodied in divisible
crypto-tokens
Crypto-tokens are superseding
traditional regulatory frameworks
Legal sovereignty no longer a necessary requirement to
produce a currency
Borderless asset transfer
Smart contracts are incoercible
potentially in contempt of court
a new legal infrastructure
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QUESTIONS?

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Thank You!
Jeff Garzik
Co-Founder | jeff@bloq.com
WeChat/Twitter | @JGarzik
Matthew Roszak
Co-Founder | matt@bloq.com
WeChat/Twitter | @MatthewRoszak
Enterprise Grade Blockchain