Not all blockchain networks are based on the same code, though many of them share the same ideas. In this presentation, the speaker will walk the group through some of the fundamental aspects of blockchains, comparing some of the technology options currently available today. Also covered are some use cases of blockchain technology, from reinventing internet service business models to baking more accountability, transparency, and automation into transactional processes in all aspects of industry.

1. All opinions in this talk are my own and not official
statements of EOS Detroit, or the EOS decentralized
autonomous community. This presentation does not
constitute investment advice.
Blockchain Fundamentals
Presented By Rob Konsdorf
CEO, EOS Detroit

2. Thanks to @iang for this slide.

3. Why Do Blockchain Protocols Matter for Business?
➔ Enables configurable and secure
mechanisms for governance.
➔ Eliminates need to trust in single points
of failure.
➔ Equitable business models possible.
◆ Revenue streams to active participants.
➔ Data stored “on chain” in globally
redundant, openly verifiable databases.
◆ Auditability

4. Pale Blue Dot Theory by Lawrence Lessig
Code + Market:
● Code is used to tweak
market incentives.
● BTC, ETH, EOSIO, etc
behaviors.
Social Norms:
● Open source governance.
● BIP, EIP, and other open
standards.
Physics:
● Code is the
architectural layer.
● Core protocols.
● Smart contracts.
Legal:
● Light touch off-chain
legal enforcement
(mostly hacks).
● Ricardian contracts
enable digital signing
of legal contracts.
Market:
● Aggregates
signals in prices.
● Skin in the game.
● Staking.
Social Norms + Code:
● Token voting
systems.
Market + Law:
● Regulation and
compliance
requirements.
Norms + Law:
● Spectrum of support
across global jurisdictions.

5. Blockchain Systems as Identity Providers
➔ Blockchains are just newfangled
PKIs. (e.g. HTTPS/TLS)
◆ Asymmetric key cryptography
➔ Globally accessible
authentication.
➔ Authority comes from one or
many clients.
➔ No more password breaches.

7. What is Governance?
➔ A system of:
a. Making collective decisions
b. Carrying out those decisions -
auditably, verifiably, accurately,
correctly, completely
c. Tweaking the decision-making rules
➔ Some means of “carrying out”
decisions:
a. Corporate Governance (board)
b. Administration
c. Reporting

8. Blockchains Enable Programmable Governance
➔ Ricardian contracts for prose
agreements.
◆ Signify “intent of code”
➔ Varying modes of representation
across protocols.
◆ Hashpower, Token holder, Democratic
➔ Enables a variety of consortium
networks.
◆ Standard and interoperable supply
chain layer, Auto?

10. Blockchain Systems for Equitable Economies
➔ Tokens enable business models
that remunerates those who
create value in the network.
➔ Token holders can also partake in
platform governance.
➔ Users actively contribute more
effort due to aligned incentives.
Reed’s law: see green line.

11. The Emergent Internet of Value
➔ Traditional internet democratized
access to information.
◆ Torrent networks, file sharing.
➔ Blockchain systems hold promise to
democratize access to value.
◆ The missing half of the internet!
➔ Enables creation of innovative
coordination frameworks, monetary
systems, and equitable services.

12. Blockchain Criteria
1. A growing list of records, grouped into blocks.
2. Blocks are linked using cryptography.
3. Each block contains a cryptographic hash of
the previous block, a timestamp, and
transaction data.
4. Transactions and blocks are validated by
multiple independent devices who reach
agreement via a consensus mechanism.

13. Blockchains are Append-only Excel Spreadsheets
➔ Append-only, meaning the history of
records can’t be tampered with.
◆ Byzantine Fault Tolerance
➔ Each row is a transaction.
➔ You can track all kinds of stuff:
◆ Cryptographically-scarce tokens
(BTC, ETC, EOS, etc.)
◆ Actions
◆ In-game items (Non-fungible tokens)
◆ Local complementary currencies
◆ Auto parts, raw materials, food, etc.

14. Cryptographic Aspects
➔ Blocks are a security mechanism for
maintaining shared information /
state by batching transactions.
➔ Hash functions utilized for unique
signature, transaction, and block
identifiers.
➔ New blocks must reference previous
blocks via hashes.

17. Distributed Consensus and Validation
➔ Mechanism to incentivize service
providers and secure network.
➔ Service providers get paid when
they validate blocks.
➔ Creates global redundancy.
➔ Various algorithms available.
◆ Proof of Work (POW)
◆ Proof of Stake (POS)
◆ Delegated Proof of Stake (DPOS)

18. The Commons and Access Control
➔ Transparency via Open Source
◆ Code is freely usable, and auditable
(MIT License)
➔ Public networks used for global
read and write access.
● e.g. EOS, TLOS, ETH, BTC
➔ Consortium networks use peer
whitelists for access control.
● e.g. Worbli, ORE, PassageX

19. Time to Start Building
➔ Standards are being established.
◆ BITA.studio - Transportation alliance.
➔ Developers - Make Decentralized
Apps a.k.a “DApps”
◆ https://developers.eos.io
◆ https://dev4eos.com
➔ Decision Makers - Start R&D!
◆ EOS Detroit kindly offers product
development consulting services.

20. Follow EOS Detroit.
@eosiodetroit
@eosdetroit
EOS Detroit
eosdetroit