Blockchain and Decentralization presentation in https://www.meetup.com/India-Blockchain-Cryptocurrency-Meetup/events/247242260/

1. Blockchain &
Decentralization
Priyabrata Dash (AKA Priyab Satoshi)
Twitter: twitmyreview
Medium: medium/Crypt-Bytes-Tech

2. Agenda
• Origins of Blockchain
• Decentralization
• DAO
• Open vs Closed Blockchain
• Realities of Decentralization
• Q&A

3. Origins of Blockchain

4. Origins of Blockchian

5. Origins of
Blockchain

6. Origins Of
Blockchain
What is Blockchain?
“The blockchain is an
incorruptible digital ledger of
economic transactions that can
be programmed to record not
just financial transactions but
virtually everything of value.”

7. Origins Of Blockchain
Blockchain Design
•A blockchain, is a continuously growing list of records, called blocks,
which are linked and secured using cryptography
•Each block typically contains a hash pointer as a link to a previous
block, a timestamp and transaction data
•By design, blockchains are inherently resistant to modification of the
data

8. Origins Of Blockchain
Genesis Block
•The blockchain is an undeniably ingenious invention – the brainchild
of a person or group of people known by the pseudonym, Satoshi
Nakamoto.
•The first block #0 created in 2009 is referred as Genesis block in
Bitcoin Blockchain.
•It is common ancestral parent of all the new blocks created and if
traversed backward in time we will reach genesis block in the end.

9. Origins Of Blockchain
A Distributed Database
•Information held on a blockchain exists as a shared — and
continually reconciled — database.
•The blockchain database isn’t stored in any single location, meaning
the records it keeps are truly public and easily verifiable.
•No centralized version of this information exists for a hacker to
corrupt.
•Hosted by millions of computers simultaneously, its data is accessible
to anyone on the internet or Blockchain network.

10. Origins Of Blockchain
A Network Of Nodes
• A network of so-called computing “nodes” make up
the blockchain.
• Node gets a copy of the blockchain, which gets
downloaded automatically upon joining the
blockchain network.

11. Origins Of Blockchain
Transparent and incorruptible
• The blockchain network lives in a state of consensus, one
that automatically checks in with itself every few minutes.
A kind of self-auditing ecosystem of a digital value, the
network reconciles every transaction that happens in
ten-minute intervals. Each group of these transactions is
referred to as a “block”.
• Transparency - Data is embedded within the network as a
whole, by definition it is public.
• It cannot be corrupted altering any unit of information on
the blockchain would mean using a huge amount of
computing power to override the entire network.

12. Decentralization
The Idea of Decentralization
• Decentralization means the network operates on
a user-to-user (or peer-topeer) basis.
• A global network of computers uses blockchain
technology to jointly manage the database that
records Bitcoin transactions.
• That is, Bitcoin is managed by its network, and
not any one central authority.

13. Decentralization
Centralization vs Decentralization
• “Centralization” is the systematic and
consistent reservation of authority at central
points in the system.
• “Decentralization” is a systematic delegation
of authority at all levels of management and in
all of the system.

14. Decentralization
Organizational Flow

15. Decentralization
Advantage of Centralized Organizational Structure
• Reduced cost
• Uniformity in action
• Personal leadership
• Flexibility
• Improved quality of work
• Better co-ordination
Disadvantage of Centralized Organizational Structure
• Delay in work
• Remote control
• No loyalty
• No Secrecy
• No special attention

16. Decentralization
Advantage of Decentralized Organizational Structure
• Distribution of burden
• Increased motivation and morale
• Greater efficiency and output
• Diversification of Activities
• Better Co-ordination
• Maintenance of Secrecy
• Facilitate effective control and quick decision
Disadvantage of Decentralized Organizational Structure
• More cost
• No specialization
• Need more specialists
• No uniform action
• No equitable distribution of work
• Control Systems
• Branches of organization

17. Decentralization
Blockchain & Decentralization

18. Decentralization
Defining Technology Eras

19. Decentralization
Innovation Outcomes in Decentralization

20. Decentralization
The New Stack

21. DAO
Smart Contracts

22. Decentralized
Autonomous
Organizations
(DAOs) • Complex SC - For multiple parties to interact
• Self-governed Org - Incorruptible set of rules
• Autonomous Governance - Independent from creator
• Decentralized -Cannot be switched off
• Self-sufficient - May charge users to pay for services

23. DAO
Smart Contracts
• Emulate traditional contracts
• Voluntary agreements
• Enforced by law
• “Trustless” & self-enforcing
• Efficiency
• Reduction of costs (negotiation,
verification)
• No ambiguity
• Automatically execute terms

24. DAO
Smart Contracts on Blockchain
• Snippets of code
• Deployed on the blockchain
• Executed by the network
• Autonomous
• Independent from any third-party to operate
• Potentially not controlled

25. DAO
Challenges of Current Organizations

26. DAO
Building DAOs

27. DAO
Collaboration

28. DAO
Governance

29. DAO
Resulting Architecture

30. DAO
New Generation Collaborative Economy

31. Open vs Closed Blockchain

32. Open vs Closed Blockchain

33. Open vs Closed Blockchain

34. Open vs
Closed
Blockchain

35. Open vs Private Blockchain

36. Open vs Private
Blockchain
Opportunities

37. Open vs Private Blockchain

38. Open vs Private Blockchain
Potential solutions: Sidechains or Interledger or Child Chains

39. Open vs
Private
Blockchain
Blockchain could disrupt
everything

40. Open vs
Private
Blockchain
• THE BLOCKCHAIN is an inefficient database
• But all these banks are investing in blockchains!

41. Open Vs Private Blockchain

42. Open vs Private Blockchain

43. Open vs Private Blockchain

44. Realities of Decentralization

45. Realities of Decentralization

46. Realities of Decentralization

47. Realities of Decentralization

48. Realities of Blockchain
• You never change things by fighting the existing reality. To
change something, build a new model that makes the existing
model obsolete.” ---- Buckminster Fuller
• The killer app for the blockchain is not tokens, but it is the
creation of private economies or ecosystems.Tokens are just
enablers to that.
• What is Tokenomics?
• How you design your token role
• How you distribute your tokens
• How you govern your token monetary policy

49. Realities of Decentralization
Staying True to Blockchain
Technology
• Removal of an intermediary or
counterparty, and letting the
blockchain enact consequences
• Peer-to-peer as infrastructure
• Network effects with new
protocols
• Decentralization at many levels
• Autonomy in governance

50. Realities of
Decentralization
Question to Ask
• Do you understand the economic model behind
your token?
• Will decentralized open source protocols be
more powerful than their web equivalent?
• Will decentralization deliver?
• Will there be a crash? How? When?
• How high is the sky, and how shaky is the
ground?
• Will regulators poke the blockchain in the eye, or
ship it in shape?
• Is every asset in the world destined to become
liquid?
• Are tokens here to stay, and will we see more
standards beyond ERC 20 & ERC 721?

51. Realities of Decentralization

52. Q & A