Wide-ranging introduction into blockchain presented for an enterprise client. Structured in 2 parts: - what is blockchain and key concepts: distributed ledgers, consensus mechanisms, permissioned/permissionless, crypto-tokens/assets, smart contracts and DAO - blockchain in practice: do you need blockchain, is it enterprise-ready, case studies Created May 2017.

1. Blockchain introduction and the End of the Middleman
Last updated: 18 May 2017
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2. Hi.
My name is Andries De Vos,
CEO of Slash
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3. Product Foundry.
For innovation teams and ambitious startups/
SMEs. Focus: deep tech (AI, DLT, bots)
Venture Builder.
Serial entrepreneurs. Slash Ventures is where
we build+commercialize our own lean projects.
Offices in Singapore and Phnom Penh
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4. NEW
4
How familiar are you with blockchain?
FAMILIAR GEEKSTUDENT
New Expert

5. PART 1
What is Blockchain,
Why does it matter?
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6. 6

7. Blockchain =
“Email for Money”?
“Assets over IP”?
7
Blockchain? What’s the hype about …

8. Blockchain and “Money / Assets over IP”
8Source: Accenture, www.raconteur.net

9. Example:
USD bill = Legal Tender
Digitize any asset class (current, fixed, intangible …)
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10. Example: Transaction on Bitcoin network
10Source: https://www.slideshare.net/CiscoDevNet/

11. Example: Bitcoin (2)
11Source: https://www.slideshare.net/CiscoDevNet/

12. Example: Bitcoin (3)
12Source: https://www.slideshare.net/CiscoDevNet/

13. Example: Bitcoin (4)
13Source: https://www.slideshare.net/CiscoDevNet/

14. Blockchain is only 8 years old and still in its infancy
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15. 15
Race for blockchain standards ...
Source: Distributed magazine (issue #01)

16. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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17. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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18. 3 types of networks
No single entity controls all
processing. Data storage TBD.
Processing / storage of transactions
done in multiple places. Control TBD.
Single entity controls all
processing
18Source: http://networkcultures.org/unlikeus/

19. CURRENT PAYMENT NETWORK BITCOIN NETWORK
Example networks
19Source: http://networkcultures.org/unlikeus/

20. In distributed ledger technology (DLT), control may or may not be in the hands of 1 entity
(e.g distributed Shell gas stations, all controlled by Shell)
Degrees of database decentralization
20Source: Distributed magazine (issue #01)

21. Distributed databases are NOT new
‘Blockchain’ or Distributed Ledger
Technologies
21Source: medium.com/@sbmeunier

22. DLT 2 differentiators:
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Blockchain is a special kind of distributed database
1. control of read/write access fully decentralized, not
logically centralized as for other distributed DB
2. ability to cryptographically secure transactions in
competing environments, without trusted third parties.
Ps: the term “blockchain” was not used in the original Satoshi Nakamoto whitepaper on Bitcoin
Source: medium.com/@sbmeunier

23. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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24. 24
Byzantine Generals Problem
Source: http://www.cs.uni.edu/~fienup/

25. 25
What is consensus?
Consensus protocols =
• Network of X untrusted computers
• 1 reliable decision process

26. 26
Traditional consensus
Examples:
• Leader-based
• Majority process (e.g democratic elections)
• Traditional centralized IT processes
• 3rd party intermediaries
Challenges:
Not resilient in case of network partition
Require trust in centralized process or network majority
Potential delay in information flow or data status
Prone to censorship or manipulation
Source: https://www.slideshare.net/_hd/demystifying-blockchains

27. 27
DLT: Proof of Work vs Proof of Stake
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28. 28
Many more DLT consensus mechanisms …
Each has properties with pros/cons for certain tasks.
• Delegated proof of stake
• Proof of Elapsed Time
• Tendermint
• Stellar Consensus Protocol (SCP)
• N2N
• Round Robin
• Federated consensus
• Leader based
• PBFT and derivatives
• Etc

29. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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30. Permission = who can read/write data
Bitcoin
Ethereum
Golem
Ripple
HyperLedger
Monax
Multichain
Hyperledger Fabric
NASDAQ’ linq
ASX’ Digital Asset Holding
R3 Corda
30Source: http://www.mdpi.com/1999-5903/8/4/49/htm

31. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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32. 32
What are crypto-assets?
• Originally = financial incentive and reward to verify or
participate in transactions in a blockchain protocol
• Now, also:
o Tokenized real-world assets
o Creation of dApps (decentralized apps) with app-
tokens to fuel user engagement and value
o Even a way to monetize open source projects ….
New paradigm for asset & value creation and distribution.

33. 33
4 types of crypto-assets
Source: Distributed magazine (issue #01), Jeremy Gardner

34. 34
Market cap top crypto-currencies (as of Mar’17)
Source: http://www.coindesk.com/

35. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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36. ‘Programmable’ contracts
A ‘transaction’ specified in a contract is executed automatically when
triggered by the right ‘event’
36Source: https://www.linkedin.com/pulse/smart-contracts-meet-reality-charles-moore

37. Example: trade
37Source: Business Insider

38. Key Concepts
Distributed Ledger / DLT
Consensus mechanism
Permissioned / less
Crypto tokens
Smart Contracts
DAO
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39. • Virtual corporation—control over
assets, voting systems and
managerial power embodied in
code
• Flexibility of form—Distributed
Collaborative Organizations
• Representation by self-sufficient
autonomous agents
• Extensions to political systems
Decentralized Autonomous Org
39Source: https://www.slideshare.net/StephenEFF/beyond-the-blockchainpres

40. • Programmable money + smart
contracts + Internet of things
• Wallet as autonomous agent—like
a digital power of attorney
Future of ‘Autonomy’?
40Source: https://www.slideshare.net/StephenEFF/beyond-the-blockchainpres

41. Recap: promise of blockchain
• Digitize any asset
• Real-time digital asset movement
• Instant transactions (e.g pay = settle)
• Censorship resistance with audit trail
• Option to make the data immutable (unchanging)
• Smart, programmable contracts
• Decentralized autonomous ‘agents’
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42. PART 2
Blockchain in practice
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43. Blockchain is not just a
better mouse-trap or
spam filter
It’s a strategic decision.
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44. What are the design assumptions and goals for using new technology?
What are the business requirements?
Are entities and actors on the network known or unknown, trusted or
untrusted?
Who is allowed or not allowed to validate transactions?
Are the validators spread around globally?
Is communication between them synchronous or asynchronous?
Are faults tolerated?
What type of consensus is needed? Or none at all?
Questions to consider
44Source: Tim Swanson, R3, Slideshare

45. 45
Real business
problem that
needs
solving?
Could it have
been fixed
before
blockchain?
Hybrid
(Conso
rtium)
Private
Public
You probably
don’t need a
blockchain …
You might
need a
blockchain
Do you need
a database?
Do many
people need
to write to it?
Are writers
known or
trusted?
Are writers
interests
unified?
Do you want
to rely on a
trusted 3rd
party?
Will
participants
need systems
upgrade?
Do the
benefits justify
the cost of
adoption?
Do you need
to control read
and write
access?
Is consensus
determined by
multiple
entities?
Coordinate
those entities
into a
consortium?
Choose best
blockchain or
DLT
No need for
blockchain,
but a DLT
may serve
For your use-
case,
determine
blockchain
You probably
need bonafide
public
blockchain
Is censorship,
resistance and
immutability >>
efficiency?
Blockchain or
DLT? Let’s
see.
START
Yes Yes Yes Yes Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No No No
No
No
No
No
No
No
No
Do you really need a blockchain?
Source: Distributed magazine (issue #01), Jeremy Gardner

46. Is Blockchain enterprise-ready?
• Before 2016, no.
• Since 2016, serious POCs and deployments are
happening (BHP, Nasdaq, DeBeer, AXA, SC, etc)
• How? Depends on use case. In most cases: build
private/hybrid permissioned network on top of existing
protocol, or work with cloud platform provider such as
IBM Bluemix (HyperLedger Fabric).
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47. 47
Example: IBM Blockchain on BlueMix
Source: IBM Blockchain team

48. Selection of blockchain use cases
Payments
Healthcare
Trade
Law
Real Estate
Markets
Advertising
Media
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49. BLOCKCHAIN (2)
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50. BUT …
99% of Blockchain
startups or products are
bullsh*t
Source: Convergence VC
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51. Blockchain+
Source: Convergence VC
Consortium
IoT
AI
Mixed Reality
Robotics
3D Printing
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52. Global cross-border payment network – http://ripple.com
Use case: Payments | Ripple
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53. Full healthcare suite on blockchain – https://gem.co/health/
Use case: Health Care | Gem
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54. e-Bill of Lading on Blockchain – http://wavebl.com
Use case: Trade | Wave
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55. Luxury provenance and asset tracking – http://everledger.io
Use case: Trade | EverLedger
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56. e-KYC and identity management – https://kyc-chain.com
Use case: Digital identity | KYC Chain
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57. Easiest way to buy/sell real estate – https://chromaway.com
Use case: Real Estate | ChromaWay
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58. Gold bullion trading on blockchain – https://www.royalmint.com/rmg
Use case: Markets | The Royal Mint
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59. Transparent, programmatic advertising – http://madhive.com
Use case: Advertising | MadHive
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60. Fixing global music royalties – https://ujomusic.com
Use case: Media | Ujo Music
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61. Many. Depends on use case ...
• Ethereum
• HyperLedger suite
• IBM Blockchain on Bluemix / HyperLedger Fabric
• Ripple
• Multichain
• Etc.
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Popular protocols for Apps?

62. Your Next Tech Partner
QUESTIONS?
Andries De Vos
CEO & Co-Founder
andries@slash.us.com
https://www.linkedin.com/in/andriesdevos/
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