Blockchain technology promises major changes for the banking and financial sectors similar to how the internet changed things in the 1990s. Blockchain uses distributed ledger technology to record transactions in digital blocks that are linked together, growing over time into a permanent chain. This allows transactions to be validated and settled across a distributed network without a central authority. While Bitcoin was an early use of blockchain, the technology has potential applications beyond cryptocurrencies if other ways can be found to incentivize network participants and reach consensus without native digital assets.

1. Blockchain
Technology
: Bitcoin

2. • “Blockchain , not bitcoin will prove revolutionary in banking
sector”

3. Bitcoin in 2014 is as same as
internet in 1994.
• Blockchian technology seems to promise a major change for
capital marketing and financial banking sector.

4. Why bitcoin hard to understand
• Game theory
• Cryptography
• Computer networking and data transmission
• Economics and monetary theory

5. What Is blockchain ?
[A hash pointer linked list of blocks]
• An append only sequential data structure
• New blocks can only be appended at the end of the chain
• To change a block in the middle of the chain , all subsequent
block need to be changed
• Very inefficient compared to a traditional relational database
but provides more security

6. Blockchain: A Distributed
Transaction Ledger
• Every block contains multiple transactions
• Massively duplicated across network nodes
• Shared with p2p file transfer protocol (ftp)
• Updated by peculiar nodes, minors; appending new blocks of
transactions

7. A Distributed Back-Office
• All network nodes perform transection validation and clearing.
• Minors perform the additional work required for settlement .
• Consensus in a distributed network with faulty nodes is a vey
hard problem known as Byzantine General Problem.

8. Blockchain without Bitcoin
• No bitcoin =>
• No asset available to reward minors
• Appointed validators officials required
Why should validators use blockchain?

9. What is Bitcoin?
• Bitcoin is the native digital asset , tracked by the first
blockchain.
• It exists only as scriptural asset i.e. validates transaction
recorded in the blockchain.
• It is a bearer instrument : the private key holder is the actual
effective owner

10. • Bitcoin is digital gold: this is the brilliant groundbreaking
achievement by Satoshi Nakamoto.

11. Blockchain Transactional Economy
• Bitcoin is the only blockchain asset
• Everything else tracked with blockchain is somebody’s liability
• Blockchain needs a native digital asset to be used for payment
and collateral.

12. Blockchain beyond bitcoin
• In 1992: email was killer internet application
• Future is companies like Google,Facebook
• In 2017: bitcoin is killer Blockchain app
• More ambitious apps will be built over this platform.

13. The shifting Narrative
• 2014: bitcoin
• 2015: blockchain technology
• 2016: distributed ledgers
• 2017: bilateral DataBases + secure messaging
• 2018: bitcoin hype again;

14. R3 Corda
• R3 was originally touted as “a project intended to bring
blockchain to finance”
• Its distributed ledger group is developing a proprietay platfom
named corda
• CORDA: “Corda is a distributed ledger platform ……we are not
building a blockchain.”

15. Why is finance fascinated with
blockchain?
• Blockchain transactions are immediately validated and cleared
, then settled shortly thereafter , automatically without a
cental authority.
• In the financial world, cash transections only are cleared and
settled automatically without a central authority.