The document is a presentation on blockchain technology, explaining its nature as a decentralized digital ledger and its potential to revolutionize various industries. It highlights the security benefits, functionality of smart contracts, and applications in finance, government, and healthcare. The document also discusses the differences between public and private blockchains and includes insights from experienced professionals in the field.

1. BLOCKCHAIN – A REVOLUTION
YOU CAN’T STOP
DECEMBER 14th, 2017
WEBINAR

2. 9+ years of experience in tech
Co-founder and CTO of multiple startups
12+ years of experience in tech and consultancy
Microsoft, Western Union, Transpay
TIM KOZAK
Head of Blockсhain department
at Intellectsoft
SERGEI BULGAKOV
Senior FinTech Consultant at
Intellectsoft
INTRODUCTION

3. MEET INTELLECTSOFT
Enterprise software solutions
FinTech projects
www.intellectsoft.net
300+
DEVELOPMENT
TEAM
200+
PROJECTS
DELIVERED
10
YEARS
Blockchain-based solutions
Mobile product development
EXPERTS IN:
7
OFFICES AROUND
THE WORLD

4. What is blockchain and how it works
Main benefits of blockchain
Smart contracts
Real-life use cases
AGENDA
Public vs Private blockchains
Q&A
Announcements

5. WILL BLOCKCHAIN CHANGE OUR LIVES?
YES, RADICALLY!
WHAT BLOCKCHAIN IS

6. CHALLENGE:
WHAT BLOCKCHAIN IS:
UNDERSTAND BLOCKCHAIN
IN 10 MINUTES

7. A FORMAL DEFINITION:
A blockchain is a decentralized and distributed
database, a public digital ledger that is used to
record transactions.
WHAT BLOCKCHAIN IS

8. IT’S NOT JUST ONE THING
ACCESS KEYS
DATA
FINGERPRINTING MULTIPLE COPIES THE WATCHDOG
BLOCKCHAIN BUILDING BLOCKS

9. BLOCKCHAIN BUILDING BLOCKS
It’s a mathematical technique used to validate the authenticity
and integrity of a message, software or digital document.
ACCESS KEYS
Holds account address
Gives access
Signs transactions
Impossible to guess
No “Forgot my password”
You can have a bunch of them

10. Creates the chain
Gives immutability
Integrity can be checked
Used everywhere
A cryptographic hash function is a kind of algorithm that can be
run on a piece of data, like an individual file or a password, to
produce a value called a fingerprint.
DATA FINGERPRINTING
BLOCKCHAIN BUILDING BLOCKS

11. DATA FINGERPRINTING
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718b3ba4d288a23b8fdb5aee2d64e580da4e04da506013409c363471285
add7619137296248fb3738da9819e61fff3fa21b011c72508e9a61f60c0b73c0
intellect
Intellect
EXAMPLE

12. Creates the chain
Gives immutability
Integrity can be checked
Used everywhere
A cryptographic hash function is a kind of algorithm that can be
run on a piece of data, like an individual file or a password, to
produce a value called a fingerprint.
DATA FINGERPRINTING
BLOCKCHAIN BUILDING BLOCKS

13. No single place to hack
Multiple copies to compare
Distributed across the world
A blockchain database isn’t stored in any single location,
meaning the records it keeps are easily verifiable. No centralized
version of this information exists for a hacker to corrupt.
MULTIPLE COPIES
BLOCKCHAIN BUILDING BLOCKS

14. BLOCKCHAIN BUILDING BLOCKS
New data approval
Runs 24/7 on all copies
Checks signatures and balances
(Consensus) Algorithm that runs on a distributed network and
decides which version of data is a valid one.
THE WATCHDOG

15. COMPONENTS IN ACTION
From
To
Amount
Sign
User with an Access Key It’s suggested as
a new row to the
last record
Shared with everyone!
Every dog checks
funds and signatures
PRIVATE KEY
Majority approves Record gets closed and
fingerprinted
BLOCK 25 BLOCK 26
TRANSACTION
addr1
addr2
10
{ }
2 NETWORK4
CONSENSUS6
1
CONSENSUS5
BLOCK 253
BLOCK 257 BLOCKCHAIN8
It is there forever.

16. THE END RESULT:
Highest level of security — no one except you can access your account
Self sufficient and unstoppable
Fast and works 24/7
No stealing. No editing. No guessing. No hacking
If you gave something away there, it’s not yours anymore
HOW IT WORKS

17. BLOCKCHAIN IS NOT ONLY ABOUT
TRANSFERRING MONEY
SMART CONTRACTS

18. IT’S ALSO ABOUT TRUST
Sell a house
Borrow a car for 2 hours
Run an auction for your baseball cards
Collectively buy gold
Release securities
Run crowdfunding with no fees
Share medical data
SMART CONTRACTS

19. AND ALL THIS:
Can’t be broken
Can’t be changed
Can’t be stopped
And no need to trust someone to watch the rules or keep the papers
SMART CONTRACTS

20. Code that runs on a blockchain
Can accept money, store assets, securities, company
structures, payment rules, tokens, anything
THAT’S EXACTLY WHAT SMART
CONTRACTS ARE
SMART CONTRACTS
Every step is recorded
Completely transparent and trustworthy
Can automate complex processes
Decentralized and autonomous

21. WHICH INDUSTRIES WILL BENEFIT FIRST?
Cross-border payments
settlement &
reconciliation
Bill payments
Lending
Equity trading
Crowdfunding
KYC/AML
Birth certificates
Tax filing
Authentication
Licensing
Record
management
Voting
Permits
Cargo tracking
Full transparency &
real-time reporting
Record
management
Prescription
management
Mortgages
Smart utility grids
Land registry
Property records
FINANCIAL
SERVICES
GOVERNMENT
LOGISTICS /
SUPPLY CHAIN
HEALTHCARE REAL ESTATE
BLOCKCHAIN AND FINTECH

22. POTENTIAL APPLICATIONS
The blockchain is radically changing the future of transaction based industries

23. BLOCKCHAIN FOR FINANCIAL SERVICES
BLOCKCHAIN AND FINTECH
Real-time payments
Lower fees
Higher transparency
Full accountability
Seamless experience
Straight-through processing (5 sec)
Lower fees and FX rates
Full transparency about the parties involved
Full KYC & AML
Transactions at your fingertips
– As a result banks can save up to $20* Billion a year by leveraging blockchain technology.
(Source: Santander Bank research data)
CUSTOMERS DEMAND: BLOCKCHAIN CAN OFFER:

24. CURRENT PROCESSING
VS. BLOCKCHAIN
5-7 days less FX/corresponding banks fees

25. CURRENT PROCESSING VS. BLOCKCHAIN
Real-time transaction with immediate settlement and
reconciliation - Ideal for high-volume, low-value 24/7 payments
Open source distributed payment protocol
with transactions in any currency
Uses a consensus ledger to settle
transactions
Doesn’t require an intermediary
Offers enhanced security & KYC
Provides real-time FX rate
Allows a drastic cost reduction and
improves operational efficiency
BLOCKCHAIN AND FINTECH

26. BLOCKCHAIN FOR GOVERNMENT
BLOCKCHAIN AND GOVERNMENT
Massive paperwork
Data breaches
Disparate legacy systems
Fraud
Long response times
Automated document flow
Data can’t be modified
Coordination between agencies
Resistant to hacking
Direct access to data without intermediaries
ONE common ledger instead of a hundred
CURRENT CHALLENGES: RESULT:

27. e-ESTONIA
The Estonian government built a blockchain ecosystem for various public services:
e-Identity e-Court e-Police e-Healthcare
e-Vote e-Register e-Tax e-School
BLOCKCHAIN AND GOVERNMENT
Source: www.e-estonia.com

28. BLOCKCHAIN FOR HEALTHCARE
Growing number of patients
Overloaded facilities
Limited access to medication
Fraudulent prescriptions
Faster processing of new patients
Faster data and inventory updates
Easy access to suppliers/pharmacies
Efficient tracking and consumption
ONE common ledger instead of a hundred
CURRENT CHALLENGES: RESULT:
BLOCKCHAIN AND HEALTHCARE

29. e-ESTONIA HEALTHCARE
In order to keep health information completely secure and at the same time
accessible to authorised individuals, the electronic ID-card system used by the
e-Health uses blockchain to ensure data integrity:
A record of personal medical history is kept, tracked, and updated
Full visibility of who checks a person’s health data, who modifies it and why
As a result 97% of prescriptions are digital
Medical errors are minimized
Insurance claims settle much faster
Permissions allow restricting access to sensitive personal information
Immutable
BLOCKCHAIN AND HEALTHCARE
Source: www.e-estonia.com

30. PUBLIC VS PRIVATE
BLOCKCHAIN
HOW TO BUILD YOUR BLOCKCHAIN
VS

31. PUBLIC BLOCKCHAIN DOWNSIDES
All information is public
Not so fast
Rules are set by creators
Permissionless (anyone can use it)
Code is opensource
HOW TO BUILD YOUR BLOCKCHAIN

32. PRIVATE BLOCKCHAIN BENEFITS
All benefits of a public blockchain
High performance
Customizable rules
Integrations with existing systems
Permissions levels
Control over level of transparency
HOW TO BUILD YOUR BLOCKCHAIN

33. EXPERTISE REQUIRED
HOW TO BUILD YOUR BLOCKCHAIN
Business analysis
Knowledge of different kinds of Blockchains (Multichain, Parity, Hyperledger, NXT, etc.)
Networks and security
Expertise in Smart Contracts
Experience in building client and server applications

34. QUESTIONS?
THANK YOU

35. THANK YOU
ANNOUNCEMENTS
Free eBook about blockchain in all details

36. THANK YOU!
www.intellectsoft.net/solutions/blockchain
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