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Understanding  the  Value  of  Blockchain
Michael  L.  Mathews  
Blockchain  – A  Global  Agenda  
• Definition  of  Blockchain  
• How  did  the  concept  of  a  global  Blockchain  chain  
get  started?
• What  Blockchain  is;  and  what  it  is  not!
• Metaphoric  descriptions  – Generative  learning  
between  the  Internet  and  Blockchain.
• How  does  Blockchain  influence  and  impact  
education?
• Greatest  transformations  with  Blockchain.
2/9/18
3
Blockchain  defined  in  one  paragraph  
“Blockchainshould  be  viewed  as  the  next  generation  of  the  
Internet  that  designs  trust,  personalization,  security,  and  
integration  to  all worldwide  data.  It  has  the  sophistication  to  
blend  the  best  of  Artificial  Intelligence,  Mixed  Realities,  Machine  
Learning,  Deep  Learning,  fluidity,  and  the  Internet  of  things  for  
full  personification  of  intelligence.”      ~Michael  L.  Mathews
4
Blockchain  defined  in  one  paragraph  
“Blockchain  is  a  geovisionfor  what  the  Internet  was  intended  to  
be  – the  Internet  of  freedom,  the  internet  of  dignity,  the  Internet  
of  light,  the  Internet  of  people  – not  the  Internet  of  Things.”    
~  Michael  L.  Mathews,  United  Nations,  April  2016
“No  army  can  stop  an  idea  
that  has  come  its  time.”  
~Victor  Hugo
Blockchain  is  like  a  digital  vending  machine
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That  allows  you  to  buy  all  cloud-­‐based  services  on  your  phone  without  a  middle-­‐person
What  is  that  idea  that  has  come  its  time?
What  is  that  idea  that  has  come  its  time?
C
B
A
Nomadic  Lifestyle
.  
Agricultural  
Age
Industrial  Age
Information  Age
Knowledge  
Society  
.  
Global  and  Digital  
Society  .  
How  did  the  global  concept  of  Blockchain  start?  
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C
B
Nomadic  Lifestyle
.  
Agricultural  
Age
Industrial  Age
Information  Age
Knowledge  
Society  
.  
Global  and  Digital  
Society  .  
Each    Age    Develops    the    Next    Type    of    Famine
Famine  
Food  
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Trust  Famine  
Trust  Famine  
Trust  Famine  
Trust  Famine  
Trust  Famine  
F A
B
CD
E
Trust  Famine
How  did  Hillary  Clinton  
have  access  to  a  data  
server  with  email  -­‐-­‐ and  
did  she  really  delete  the  
emails  with  no  back-­‐
up?  
Trust  Famine
Did  Russia  plant  
data,  take  data,  
both  or  did  
nothing.  
Trust  Famine  
Is  the  news  ’Fake’  and  
how  would  we  know  
the  source  of  true  or  
fake  news  sources.
Trust  Famine  
How  did  major  sex  scandals  
exist  with  the  ability  to  hide  
predators  in  church  
databases?
Trust  Famine  
How  did  the  best  
accounting  practice  
of  a  ‘double  ledger’  
become  the  means  
for  corporate  
corruption.    
Trust  Famine  
How  does  $18B  in  credit  card  
fraud  happen  annually,  43%  of  
adults  have  their  personal  
records  hacked,  and  47%  of  
companies  hacked?        
The  Global  Trust  Famine
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What  is  Blockchain
• A  framework  with  technology  that  allows  a  
globalized  and  central  and  ‘trusted’  system  
across  all  lesser  ‘untrusted’  databases.  
• A  universal  and  central  database  that  
distributes  all  data  across  all  the  systems  to  
date.  Could  be  thought  of  as  a  global  meta-­‐
level  database.
• A  reality  that  has  come  its  time  due  to  the  
global  success  and  dependence  on  the  
Internet.  
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What  Blockchain  is  not
• It  is  not cryptocurrency!
• It  is  not bitcoin!
• Bitcoin  will  disappear  over  time.  
• The  product  Bitcoin  uses  Blockchain  
technology  to  transfer  between  systems.  
• Cryptocurrency  will  continue  on  with  newer  
versions  that  all  operate  on  Blockchain.  There  
are  about  six  versions  of  cryptocurrency.  
• Cryptocurrency  makes  up  about  10%  of  what  
Blockchain  is  used  for  – but  receives  99%  of  
the  attention.  
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Metaphoric  Description  
• Bitcoin  is  to  Blockchain  what  Mosaic  was  to  the  Internet.
• Mosaic  and  Netscape  disappeared,  but  the  Internet  lived-­‐on.  
• Bitcoin  will  disappear,  but  Blockchain  will  live  on.  
• Cryptocurrency  is  to  Blockchain  what  DarpaNet,  HTML  or  Cyber  
Security  is  to  the  Internet.  
• DARPA-­‐Net,  HTML,  and  cybersecurity  is  a  methodology  of  using  the  
Internet  and  changes  regularly.  Cryptocurrency  is  merely  playing  off  the  
stock  market  – and  will  constantly  change.  
• Blockchain  is  to  the  world  of  digital  data  what  the  U.S.  Library  of  
Congress  is  to  all  books,  journals,  periodicals.    One  central  
system  run  by  ISBN  numbers  tracks  and  secures  the  legacy  of  all  
written  content.      
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• All  digital  works  will  leverage  the  Blockchain  infrastructure
• Contracts  
• Health  records  
• Legislative  bylaws  and  laws
• Information  that  leads  to  legislative  laws
• Archives  
• Banking  records  
• Shopping  and  retail  documents  and  receipts  
• Educational  transcripts  
• News  records  
• Voter  registration
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Blockchain  is  the  Center  of  the  Future  
2/9/18
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Blockchain  is  the  Center  of  the  Future  
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Accessible  and  Neutral  for  all  Peoples  -­‐Trusted
U.S.  Library  of  Congress,  The  Internet,  and  now  Blockchain
Each  entity  is  non-­‐threatening,  neutral,  and  
accessible  – and  thus  the  meta-­‐layer  of  data  above  
all  untrusted  entry  points  makes  it  all  extremely  
useful  and  heads  toward  ‘trusted’    by  checking  
‘data  in  and  all’.  
Blockchain  is  the  neutral  framework  that  acts  like  
U.S.  Library  of  Congress  for  all  data,  records,  and  
documents  – whereby  people  need  to  check-­‐in-­‐and  
check-­‐out  the  documents  as  there  is  only  one  
master  in  the  future.  
2/9/18
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How  Blockchain  works
This  sample  master  data  record  
cannot  be  checked-­‐out  with  out  
the  proper  ‘key-­‐token’  for  every  
link  in  the  chain  that  connects  
to  that  master  data  element.  
If  this  data  record  is  modified   by  
the  owner,  it  cannot  be  checked  
back  into  the  same  location,  as  
that  location  is  no  longer    the  
master  record  location  – and  
there  can  only  be  one  master.  
Blockchain   technology   is  able  
to  use  the  Internet  to  chain  
all  data  able  to  chain  all  
worldwide   web  data  into  a  
meta-­‐database  that  makes  
all  data  be  chained   together.  
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Education  Meta-­‐data  Schema  – Proposal
"The  White  House  Office  of  Science  and  Technology  
and  Department  of  Education  continues  to  challenge  
the  public  to  get  creative  to  solve  some  of  the  most  
difficult  decisions  in  education.  We  appreciate  the  
creative  submission  on  meta-­‐data  schemas  by  thought  
leaders  like  Michael  Mathews  at  the  national  level.  It  
will  be  thought  leaders  like  this  that  continue  to  help  
solve  the  future  student  success  issues  for  future  
generation."   ~2015
Nick  Sinai  
United  States  Deputy  Chief  Technology  
Officer  at  the  White  House
2/9/18
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Blockchain  is  a  personal  hyper-­‐ledger
Personalized
ledger that spans
all digital assets
2/9/18
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UT  – Austin  using  Blockchain
2/9/18
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Source: Phil Komarny
22
Source: Phil Komarny
Educational  Uses
“What will be the most important technology
to change higher education? In our view, it’s
not big data, the social web, MOOCs, virtual
reality, or even artificial intelligence. We see
these as components of something new, all
enabled and transformed by an emerging
technology called the blockchain.” ~
EDUCAUSE
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Sony  Moves  to  Blockchain  For  Education  Data
Sony  Partners  
with  IBM
2/9/18
Sony  and  IBM’s  Educational  Push
Sony is unleashing a new patent application with the
use of Blockchain as part of its educational platform.
The Japanese conglomerate highlights how their
technology upgrades create a new high that is helpful
to building society. (Dec. 2017)
US  Patent  and  Trademark  Office  (USPTO)  examined  
the  patent  and  actually  see  improvements  for  the  
educational  system  through  this  application.
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Sony  and  IBM’s  Educational  Push
The  idea  is  to  make  use  of  the  Blockchain  as  a  
centralized  ledger  for  storing  educational  
information,  such  as  degrees,  diplomas,  tests  and  
more,  as  a  kind  of  ‘digital  transcript.’  Sony  said  the  
system  has  been  developed  to prevent  fraud while  
providing  access  to  third-­‐parties  for  job  interviews  
and  assessment  among  other  purposes.
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Four  Main  Changes  for  Education
Identity  and  Student  Records: How  we  identify  students;  protect  their  privacy;  measure,  
record,  and  credential  their  accomplishments;  and  keep  these  records  secure.  Blockchain  
Universities  will  be  ‘Trusted  Agents’.  
New  Pedagogy: How  we  customize  teaching  to  each  student  and  create  new  models  of  
learning.  Give  each  student  their  personal  education  and  career  ledger  with  credible  
evidence  of  success.  
Links  Augmented  Reality,  Virtual  Reality,  and  Artificial  Intelligence  to  students  Blockchain.  
Costs  (Student  Debt): How  we  value  and  fund  education  and  reward  students  for  the  
quality  of  their  work.
The  Meta-­‐University: How  we  design  entirely  new  models  of  higher  education  so  that  
former  MIT  President  Chuck  Vest’s  dream  can  become  a  reality1.  
(1) https://er.educause.edu/articles/2006/1/open-­‐content-­‐and-­‐the-­‐emerging-­‐global-­‐metauniversity
2/9/18
Use  Case  Explanations
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Blockchain  is  like  a  vending  machine
Kastech	
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That  allows  you  to  buy  all  cloud-­‐based  services  on  your  phone  without  a  middle-­‐person
Blockchain  for  Smart  Contracts
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Greatest  Transformations  with  Blockchain
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1. Any  area/process  where  distrust  exists  and  the  ‘middle-­‐
layers’  can  be  cut  out  to  increase  efficiency  and  reduce  costs.  
2. Areas  that  are  most  controlled  by  legislation  and  funded  by  
the  State.  
3. Any  area  where  technology  is  broken,  outdated,  or  can  be  
consolidated.    
4. Area  where  ‘public-­‐eye’  sees  transformation  as  long  overdue.
Prioritizing  where  the  greatest  gains  can  be  made  
Sources  
https://er.educause.edu/articles/2017/3/the-­‐blockchain-­‐revolution-­‐and-­‐higher-­‐education
https://er.educause.edu/articles/2017/4/credentials-­‐reputation-­‐and-­‐the-­‐blockchain
https://www.youtube.com/watch?v=85MgX1idyZ8&feature=youtu.be&t=28m48s
The Blockchain Revolution for Education
2/9/18 Kastech	
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Contact  – Michael  L.  Mathews
715-­‐379-­‐9530  – mmathews@oru.edu
Questions?
More  Information?
mmathews@oru.edu
715-­‐379-­‐9530
https://works.bepress.com/michael-­‐mathews/
2/9/18 Kastech	
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Mathews blockchain presentation

  • 1. Understanding  the  Value  of  Blockchain Michael  L.  Mathews  
  • 2. Blockchain  – A  Global  Agenda   • Definition  of  Blockchain   • How  did  the  concept  of  a  global  Blockchain  chain   get  started? • What  Blockchain  is;  and  what  it  is  not! • Metaphoric  descriptions  – Generative  learning   between  the  Internet  and  Blockchain. • How  does  Blockchain  influence  and  impact   education? • Greatest  transformations  with  Blockchain. 2/9/18
  • 3. 3 Blockchain  defined  in  one  paragraph   “Blockchainshould  be  viewed  as  the  next  generation  of  the   Internet  that  designs  trust,  personalization,  security,  and   integration  to  all worldwide  data.  It  has  the  sophistication  to   blend  the  best  of  Artificial  Intelligence,  Mixed  Realities,  Machine   Learning,  Deep  Learning,  fluidity,  and  the  Internet  of  things  for   full  personification  of  intelligence.”      ~Michael  L.  Mathews
  • 4. 4 Blockchain  defined  in  one  paragraph   “Blockchain  is  a  geovisionfor  what  the  Internet  was  intended  to   be  – the  Internet  of  freedom,  the  internet  of  dignity,  the  Internet   of  light,  the  Internet  of  people  – not  the  Internet  of  Things.”     ~  Michael  L.  Mathews,  United  Nations,  April  2016 “No  army  can  stop  an  idea   that  has  come  its  time.”   ~Victor  Hugo
  • 5. Blockchain  is  like  a  digital  vending  machine Kastech  Services  and  Solutions That  allows  you  to  buy  all  cloud-­‐based  services  on  your  phone  without  a  middle-­‐person
  • 6. What  is  that  idea  that  has  come  its  time?
  • 7. What  is  that  idea  that  has  come  its  time?
  • 8. C B A Nomadic  Lifestyle .   Agricultural   Age Industrial  Age Information  Age Knowledge   Society   .   Global  and  Digital   Society  .   How  did  the  global  concept  of  Blockchain  start?   2/9/18 Kastech  Services  and  Solutions
  • 9. C B Nomadic  Lifestyle .   Agricultural   Age Industrial  Age Information  Age Knowledge   Society   .   Global  and  Digital   Society  .   Each    Age    Develops    the    Next    Type    of    Famine Famine   Food   2/9/18 Kastech  Services  and  Solutions
  • 10. Trust  Famine   Trust  Famine   Trust  Famine   Trust  Famine   Trust  Famine   F A B CD E Trust  Famine How  did  Hillary  Clinton   have  access  to  a  data   server  with  email  -­‐-­‐ and   did  she  really  delete  the   emails  with  no  back-­‐ up?   Trust  Famine Did  Russia  plant   data,  take  data,   both  or  did   nothing.   Trust  Famine   Is  the  news  ’Fake’  and   how  would  we  know   the  source  of  true  or   fake  news  sources. Trust  Famine   How  did  major  sex  scandals   exist  with  the  ability  to  hide   predators  in  church   databases? Trust  Famine   How  did  the  best   accounting  practice   of  a  ‘double  ledger’   become  the  means   for  corporate   corruption.     Trust  Famine   How  does  $18B  in  credit  card   fraud  happen  annually,  43%  of   adults  have  their  personal   records  hacked,  and  47%  of   companies  hacked?         The  Global  Trust  Famine 2/9/18 Kastech  Services  and  Solutions
  • 11. What  is  Blockchain • A  framework  with  technology  that  allows  a   globalized  and  central  and  ‘trusted’  system   across  all  lesser  ‘untrusted’  databases.   • A  universal  and  central  database  that   distributes  all  data  across  all  the  systems  to   date.  Could  be  thought  of  as  a  global  meta-­‐ level  database. • A  reality  that  has  come  its  time  due  to  the   global  success  and  dependence  on  the   Internet.   2/9/18 Kastech  Services  and  Solutions
  • 12. What  Blockchain  is  not • It  is  not cryptocurrency! • It  is  not bitcoin! • Bitcoin  will  disappear  over  time.   • The  product  Bitcoin  uses  Blockchain   technology  to  transfer  between  systems.   • Cryptocurrency  will  continue  on  with  newer   versions  that  all  operate  on  Blockchain.  There   are  about  six  versions  of  cryptocurrency.   • Cryptocurrency  makes  up  about  10%  of  what   Blockchain  is  used  for  – but  receives  99%  of   the  attention.   2/9/18 Kastech  Services  and  Solutions
  • 13. Metaphoric  Description   • Bitcoin  is  to  Blockchain  what  Mosaic  was  to  the  Internet. • Mosaic  and  Netscape  disappeared,  but  the  Internet  lived-­‐on.   • Bitcoin  will  disappear,  but  Blockchain  will  live  on.   • Cryptocurrency  is  to  Blockchain  what  DarpaNet,  HTML  or  Cyber   Security  is  to  the  Internet.   • DARPA-­‐Net,  HTML,  and  cybersecurity  is  a  methodology  of  using  the   Internet  and  changes  regularly.  Cryptocurrency  is  merely  playing  off  the   stock  market  – and  will  constantly  change.   • Blockchain  is  to  the  world  of  digital  data  what  the  U.S.  Library  of   Congress  is  to  all  books,  journals,  periodicals.    One  central   system  run  by  ISBN  numbers  tracks  and  secures  the  legacy  of  all   written  content.       2/9/18 Kastech  Services  and  Solutions
  • 14. • All  digital  works  will  leverage  the  Blockchain  infrastructure • Contracts   • Health  records   • Legislative  bylaws  and  laws • Information  that  leads  to  legislative  laws • Archives   • Banking  records   • Shopping  and  retail  documents  and  receipts   • Educational  transcripts   • News  records   • Voter  registration Kastech  Services  and  Solutions Blockchain  is  the  Center  of  the  Future   2/9/18
  • 15. Kastech  Services  and  Solutions Blockchain  is  the  Center  of  the  Future   2/9/18
  • 16. Kastech  Services  and  Solutions Accessible  and  Neutral  for  all  Peoples  -­‐Trusted U.S.  Library  of  Congress,  The  Internet,  and  now  Blockchain Each  entity  is  non-­‐threatening,  neutral,  and   accessible  – and  thus  the  meta-­‐layer  of  data  above   all  untrusted  entry  points  makes  it  all  extremely   useful  and  heads  toward  ‘trusted’    by  checking   ‘data  in  and  all’.   Blockchain  is  the  neutral  framework  that  acts  like   U.S.  Library  of  Congress  for  all  data,  records,  and   documents  – whereby  people  need  to  check-­‐in-­‐and   check-­‐out  the  documents  as  there  is  only  one   master  in  the  future.   2/9/18
  • 17. 17 How  Blockchain  works This  sample  master  data  record   cannot  be  checked-­‐out  with  out   the  proper  ‘key-­‐token’  for  every   link  in  the  chain  that  connects   to  that  master  data  element.   If  this  data  record  is  modified   by   the  owner,  it  cannot  be  checked   back  into  the  same  location,  as   that  location  is  no  longer    the   master  record  location  – and   there  can  only  be  one  master.   Blockchain   technology   is  able   to  use  the  Internet  to  chain   all  data  able  to  chain  all   worldwide   web  data  into  a   meta-­‐database  that  makes   all  data  be  chained   together.  
  • 18. Kastech  Services  and  Solutions Education  Meta-­‐data  Schema  – Proposal "The  White  House  Office  of  Science  and  Technology   and  Department  of  Education  continues  to  challenge   the  public  to  get  creative  to  solve  some  of  the  most   difficult  decisions  in  education.  We  appreciate  the   creative  submission  on  meta-­‐data  schemas  by  thought   leaders  like  Michael  Mathews  at  the  national  level.  It   will  be  thought  leaders  like  this  that  continue  to  help   solve  the  future  student  success  issues  for  future   generation."   ~2015 Nick  Sinai   United  States  Deputy  Chief  Technology   Officer  at  the  White  House 2/9/18
  • 19. Kastech  Services  and  Solutions Blockchain  is  a  personal  hyper-­‐ledger Personalized ledger that spans all digital assets 2/9/18
  • 20. Kastech  Services  and  Solutions UT  – Austin  using  Blockchain 2/9/18
  • 23. Educational  Uses “What will be the most important technology to change higher education? In our view, it’s not big data, the social web, MOOCs, virtual reality, or even artificial intelligence. We see these as components of something new, all enabled and transformed by an emerging technology called the blockchain.” ~ EDUCAUSE 2/9/18 Kastech  Services  and  Solutions
  • 24. Kastech  Services  and  Solutions Sony  Moves  to  Blockchain  For  Education  Data Sony  Partners   with  IBM 2/9/18
  • 25. Sony  and  IBM’s  Educational  Push Sony is unleashing a new patent application with the use of Blockchain as part of its educational platform. The Japanese conglomerate highlights how their technology upgrades create a new high that is helpful to building society. (Dec. 2017) US  Patent  and  Trademark  Office  (USPTO)  examined   the  patent  and  actually  see  improvements  for  the   educational  system  through  this  application. 2/9/18 Kastech  Services  and  Solutions
  • 26. Sony  and  IBM’s  Educational  Push The  idea  is  to  make  use  of  the  Blockchain  as  a   centralized  ledger  for  storing  educational   information,  such  as  degrees,  diplomas,  tests  and   more,  as  a  kind  of  ‘digital  transcript.’  Sony  said  the   system  has  been  developed  to prevent  fraud while   providing  access  to  third-­‐parties  for  job  interviews   and  assessment  among  other  purposes. 2/9/18 Kastech  Services  and  Solutions
  • 27. Kastech  Services  and  Solutions Four  Main  Changes  for  Education Identity  and  Student  Records: How  we  identify  students;  protect  their  privacy;  measure,   record,  and  credential  their  accomplishments;  and  keep  these  records  secure.  Blockchain   Universities  will  be  ‘Trusted  Agents’.   New  Pedagogy: How  we  customize  teaching  to  each  student  and  create  new  models  of   learning.  Give  each  student  their  personal  education  and  career  ledger  with  credible   evidence  of  success.   Links  Augmented  Reality,  Virtual  Reality,  and  Artificial  Intelligence  to  students  Blockchain.   Costs  (Student  Debt): How  we  value  and  fund  education  and  reward  students  for  the   quality  of  their  work. The  Meta-­‐University: How  we  design  entirely  new  models  of  higher  education  so  that   former  MIT  President  Chuck  Vest’s  dream  can  become  a  reality1.   (1) https://er.educause.edu/articles/2006/1/open-­‐content-­‐and-­‐the-­‐emerging-­‐global-­‐metauniversity 2/9/18
  • 28. Use  Case  Explanations Kastech  Services  and  Solutions
  • 32. Blockchain  is  like  a  vending  machine Kastech  Services  and  Solutions That  allows  you  to  buy  all  cloud-­‐based  services  on  your  phone  without  a  middle-­‐person
  • 33. Blockchain  for  Smart  Contracts Kastech  Services  and  Solutions
  • 34. Greatest  Transformations  with  Blockchain Kastech  Services  and  Solutions 1. Any  area/process  where  distrust  exists  and  the  ‘middle-­‐ layers’  can  be  cut  out  to  increase  efficiency  and  reduce  costs.   2. Areas  that  are  most  controlled  by  legislation  and  funded  by   the  State.   3. Any  area  where  technology  is  broken,  outdated,  or  can  be   consolidated.     4. Area  where  ‘public-­‐eye’  sees  transformation  as  long  overdue. Prioritizing  where  the  greatest  gains  can  be  made  
  • 35.
  • 36.
  • 38. Contact  – Michael  L.  Mathews 715-­‐379-­‐9530  – mmathews@oru.edu