Blockchain is changing the way we interact and trust each other, starting with our money. In this talk I present the potential of the technology and warn about some known pitfalls. I work with some analogies for an easier understanding of this complex new computational paradigm and play with the "status quo".

1. Blockchain
The Trust Machine
Rafael Sarres de Almeida
The ideas shared in this
presentation reflect only
the author´s personal
opinion

2. Money
A matter of trust

3. The history of Yap
3

4. The history of Zimbabwe
41014 ZWD ~= 0,40 USD

5. When we need trust
5
• We use third-parties
• Public Registries
• Banks
• Uber, AirBnB
• Credit Cards
• Government

6. Sometimes they do not deserve it
6
• Land fraud
• Global financial crisis
• Personal data breaches
• Inflation
• Corruption

7. But without a bank…
But without a credit card…
But without Uber and AirBnB…
But without public registries…
But without a government...
Who will store and lend money?
How will I buy in international marketplaces?
How will sharing economy work?
Who will keep the public records?
Who will build the roads?

8. 8

9. The beginning of the revolution: Bitcoin
9
• 2008: A Peer-to-Peer Electronic Cash System,
Satoshi Nakamoto
• The first digital bearer asset
• Rules
• Defined by algorithm
• Consensus maintained
• 10 billion USD in custody
• An unbroken virtual piñata

10. Blockchain: The Bitcoin foundation
10
• A Distributed Ledger
• A decentralized database
• Open to participation and use
• Write privilege defined by consensus
• Every node must validate
• Immutable data after “commit”
• The is no DBA or roolback

11. Um registro de transações
11
• Decentralized maintenance by miners
• Proof of work
Tempo

12. Blockchain 2.0
The decentralized computer

13. 13
What if....

14. Blockchain 2.0
14
Smart Contracts
Transactions
Events
Transactions
Events
Balance State
• Does it answer our questions?

15. But without a bank…
But without credit cards…

16. Who will store and lend money?
How will I buy in international marketplaces?
16
• Cryptocurrency stored in
blockchain
• Frictionless registration
• Borderless money

17. But without public registries…

18. Who will keep the public records?
18
• A public database
• Immutable after writing
• Fraud resistant
• Censorship resistant
• Authentication of the record keeper
• Auditable

19. But without a government

20. Who will build the roads?
20
• Decentralized demmocracy
• A program that uses predictive market to
decide between projects
• The Wisdom of the Crowds
• Should I build a road or a hospital?

21. But without Uber and AirBnB…

22. How will sharing economy work?
22
• Smart Contract + IoT
• The Third-party of the Future
• Prime Directives:
1. Serve the public trust without interference;
2. Protect the digital assets;
3. Uphold the availability;
And this time…
4. No value judgement

23. 23
Internet
Smartphone
Sharing Economy
Millennials

24. The risks of a new paradigm

25. The challenge of the regulators
25
• Money laundry and tax evasion
• Know your customer
• Illegal items and services marketplaces
• Financial and commercial blockages
• New risks to the financial system

26. Ready to rule the world?
26
• Governance
• Scalability
• Performance
• Transparency vs Privacy
• Key management

27. A dangerous new world
27
• Mt.Gox (2014)
• USD 450 million
• Bitfinex (2016)
• USD 70 million
• Smart contract flaw - DAO
• USD 60 million

28. An unpredictable new world...
281014 ZWD ~= 3USD

29. In short…

30. A world of opportunities
30
• Product life-cycle management
• A new financial system
• Identity management
• Central Bank issued Digital Currencies

31. 31

32. Thank you!
Questions?
Rafael Sarres de Almeida
@rsarres