A broad-ranging introduction into Blockchain, the Mental Models to use to think about its implications (Blockchain as a Database, as a City and as a Continent); and a technical introduction into the key ingredients to build a blockchain as well as dApps.

1. www.slash.co
Prepared for Startup Jungle - Blockchain event
15 September 2018
New Business Models
Enabled by Blockchain
1

2. www.startupjungle.org
Learning Community
2

3. 3

4. Blockchain Mental Models
Blockchain as a Database
Blockchain as a City
Blockchain as a New Continent
Blockchains and Examples
4

5. 5
Cha r 1 - Blo c
as a Database
5

6. Blockchain =
‘Database’
6

7. 7

8. Each database entry =
● time-stamped
● cryptographically secured
● linked to previous entry / ‘block’
8

9. 4 ke n i s B c ha
● Decentralized (no single
controller)
● Trustless (encrypted and
immutable)
● Incentives (for entire user
base & network)
● Programmable (embed logic)
9

10. 1. Decentralized
10

11. 11

12. 2. Trustless
12

13. Con s P ot s
Network of X untrusted
computers / nodes
1 “reliable” decision process
(this minimizes the trust required
from any single node)
13

14. “Tru l ”
No n Nod , En y ed Im u b
14

15. 3. Programmable
15

16. 16

17. Smart Contracts =
securely automate
workflows with assets
17

18. 4. Incentives
18

19. Exa l : As e s’ ov IP
Tokenize any assets
(real estate, money, company equity,
credits, etc)
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20. 20 20

21. 21

22. 22
Cha r 2 - Blo c
as a City
22

23. Not just 1 blockchain
But many blockchains
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24. 24

25. Think of blockchains
like Cities
25

26. Each City is different
Each City is like an
ecosystem of services
Layered on top of each other
26

27. Phnom Penh
Singapore
London
Tokyo
etc
27

28. 28

29. Each Blockchain is different
Each Blockchain is like an
ecosystem of services
Layered on top of each other
29

30. 30

31. Pop Blo c Pro l
Transactions
in last 24h
31

32. Why care?
What do users want?
32

33. Users want
Security
“Web scale” / performance
Usability
Reliable service / governance
33

34. For example
Transactions/Second (TPS)
Visa Card 24000 TPS
EOS only 300 TPS (1% of Visa)
34

35. Blockchain is still young
Like the Internet in 1994?
35

36. Yet, some say Blockchain is
the Future of Internet
36

37. 37
Cha r 3 - Blo c
as a Continent
37

38. The consumer Internet
(“the Web”)
is 25+ years old
and changing fast
38

39. Evo on T eb
Web 1.0 (~1990-2000)
“Read-only” Web
Directories
Static content/websites
Limited media
Web 2.0 (~2000-2015)
“Social” Web
Search & keyword-based
Dynamic & rich content
Social, user-driven
Web 3.0 (~2015- ??)
“Semantic” Web
Machine-readable / ‘Smart’
Personalized, decentralized
Execute files in Web
TBD if Open!? 39

40. 40

41. Blockchain seems like the
first NATIVE
business model for the internet
41

42. 2 reasons
42

43. 1. Customer-centric
43

44. Blockchain sees
3rd party applications
as its customers
44

45. Consider how
Blockchain movement
is an evolution (upgrade?) from
the Open Source movement
45

46. Ope S ce M en
(re y i d en n ~1998)
● Open license & free software
● Code collection & libraries
(without service, users or data)
● Weak long-term incentives (no
business model)
● “Weekend developers” vs
Enterprise Contributors
(asymmetry in power) 46

47. “But it’s not because I can run MySQL
database for free ...
… that I can get a billion users and all
the data Facebook has”
47

48. From Open Source ...
Libraries & Code
No “instance”
No users
No data
No incentive
… to Blockchain
Live “Services”
“Instantiated”
Community of users
Data
Programmable Incentives
48

49. From Open Source ...
● Blueprints (of roads, power
grids, schools), no City
● Take blueprint and build your
own City from scratch
● Deploy your new Service and
work to get actual people in
there
… to Blockchain
● Participate in existing City
● Road system already exists(a service
deployed by someone else)
● Build your Service on top of others. Easier
to deploy Services.
● If City successful, Incentive to Participate!
● Same open & collaborative properties as
Open Source.
Bac C t a l ...
49

50. For Blockchain
the kind of applications
you can contribute
is fundamentally different
50

51. The question becomes:
“How is what I am contributing
as Service
going to impact
the ecology of this symbiotic
ecosystem?”
51

52. 2. Community-approach
52

53. How un n r u t?
53

54. Centralized
Go direct to user
Platform for Community
Community adds ‘Services’
54

55. Centralized
Go direct to user
Platform for Community/Devs
Community adds ‘Services’
55

56. This community-approach
opens up
marketplace
for innovation and experiments
56

57. Cha r 4 - Blo c
and Examples
57

58. 58

59. 59

60. BUT
90%+ of Blockchain startups
are bullsh*t
(not sustainable businesses )
60

61. Blockchain +
IoT
AI
Mixed Reality
Robotics
3D Printing
61

62. Cro r Pay t
w .Rip .co
62

63. Tra (eB l Lad )
w .wa l.co
63

64. Re l E te
w .fa c .ci
64

65. Lux Pr e n
w .ev d e .i
65

66. Mus al
w .uj ic.co
66

67. an B c h i ...
67

68. 68

69. First local community initiatives …
Khmer Crypto Foundation
Blockchain Warriors
A Small World
Slash and Startup Jungle :)
69

70. Regulation will follow soon?
Early 2019 TBD
70

71. Blockchain Technical Introduction
71
Prepared for Startup Jungle - Blockchain event
15 September 2018
www.slash.co

72. BLOCKCHAIN
4 ingredients
Step by Step
Consensus
72

73. 73
Blo c
4 ingredients
73

74. 74
Pe r Pe t o k
Decentralised
Distributed
Shared database
Node 74

75. 75
Consistent output
One way function
Digital fingerprint
Has c o
aaf4c61d
dcc5e8a2
dabede0f
3b482cd9
aea9434d
hello
#
75

76. 76
Public / Private Key Pair
Private - Sign
Public - Verify
En y i n K
76

77. 77
Proof of Work
Proof of Stake
Proof of Authority
Con s Me h m
77

78. 78
Blo c
Step by Step
78

79. Computers
Server
Client
Centralised Computing
Centralised Decision
Tra on
79

80. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
Distributed Computing
Decentralised Decision
Pe r Pe
80

81. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
Alice wants to send 1 coin to Bob
Tra c o
Alice
Bob
TRANSACTION
Sender: Alice
Recipient: Bob
Amount: 1
81

82. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
Alice needs to sign the transaction
with her private key
En y i n
TRANSACTION
Sender: Alice
Recipient: Bob
Amount: 1
Ali
Alice
Private Key
Alice
Bob
82

83. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
Alice shares her private key so
everyone can verify her signature
En y i n
TRANSACTION
Sender: Alice
Recipient: Bob
Amount: 1
Ali
Alice
Private Key
Alice
Public Key Alice
Bob
83

84. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
Alice sends the signed transaction
to the network
Bro s i g
Alice
Bob
84

85. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
Miners add the new transaction to
their list of transaction to validate
Bro s i g
Alice
Bob
Transactions
85

86. To validate transactions, miners need to
solve a complex mathematical problem
Min
Transactions
aaf4c61d
dcc5e8a2
dabede0f
3b482cd9
aea9434d
#
00000000
000008a2
dabede0f
3b482cd9
aea9434d
#c41975d1
dae1cc69
b16ad889
2b8c7716
4e84ca39Nonce
Block hash
than starts
with N zeros
86

87. By solving the mathematical problem, the
miner has created a block
Blo
00000000
000008a2
dabede0f
3b482cd9
aea9434d
Pending transactions
Timestamp
Difficulty target
Nonce
Previous block hash
Reward
1 Bitcoin
87

88. And can append it to the previous one to
create a (block) chain
BloPending transactions
Timestamp
Difficulty target
Nonce
Previous block hash
00000000
000008a2
dabede0f
3b482cd9
aea9434d
00000000
00000ede
0f3b482c
d9aea943
8a2dab4d
00000000
0000082c
d9aea943
4d8a2dab
ede0f3b4
88

89. Computers (Nodes)
Miners (Full Nodes)
Users (Partial Nodes)
The miner broadcast the new
block to the rest of the network
Bro s
89

90. 90
Blo c
Consensus
90

91. Mining a block
rewards me 1BTC.
Why should I accept
someone else’s block?
91

92. 92

93. 93
Miners always try to mine
blocks with the longest &
valid chain they have.
It should be difficult to
mine a block.
Rul 1
Rul 2
93

94. Do b S en g (1)
Someone tries to spend the same coin 2 times,
at the same time.
94

95. Do b S en g (2)
Someone sends you a coin.
Then he revert the transaction by creating another block
to replace the one where your transaction was validated.
95

96. https://www.codementor.io/learn/blockchain/tutorials
https://medium.com/slash-digital/if-you-still-dont-understand-bitcoin-38d376e551af
https://medium.com/@coriacetic/the-four-layers-of-the-blockchain-dc1376efa10f
http://www.usv.com/blog/fat-protocols
https://richtopia.com/emerging-technologies/review-6-major-blockchain-protocols
https://www.youtube.com/watch?v=Er_-MW8i9KE
Use l s
96

97. Decentralized APP (DAPP)
What is it?
Tools and frameworks for DAPP
Public vs Private Blockchain
97

98. 98
Blo c
What is DAPP?
98

99. Dec r i d A li on
● Open Source
● Decentralized
● Incentivized
● Protocol
An application that is run by many users on a
decentralized network (not controlled by any
single entity)
99

100. Ad a t of DA
● Inherent Security
● Cryptocurrency Integration
● Resistance To Corporate
Intervention
● Potential For Innovation
100

101. Top A P
101

102. Top A P la r
102

103. Blo c
Centralized vs Decentralized APP
103

104. Pro m g i C t iz s De t iz AP
Decentralized APP
● Database: Blockchain, BigchainDB, Mediachain, ...
● Deployment: (IPFS, Ethereum SWARM, FileCoin).
● Frontend: HTML, JS, CSS
● Backend: Smart Contract -> Blockchain
● Browser: Metamask, Mist, uPort, ...
● Framework: Truffle, Embark, Blockstack, ...
● DNS or ENS (Ethereum Name Service)
Centralized Web APP
● Database: MySQL, PostgreSQL, MongoDB, ...
● Deployment: DigitalOcean, Amazon EC2, …
● Frontend: HTML, JS, CSS
● Backend: API -> Database
● Browser: Google Chrome, Firefox, …
● Framework: Symfony, Laravel, Rails, ...
● DNS (Domain Name System)
104

105. 10
5
Blo c
Tools & Frameworks for DAPP
105

106. To l & Fra r or DA
106

107. To l & Fra r or DA
Sma n c & Sol y
● Speed and accuracy
● Trust
● Security
● Savings
107

108. To l & Fra r or DA
Tru l
● Automated contract testing
● Configurable build pipeline
● Generators (new contracts and tests)
● Instant rebuilding of assets
● Console
● External script runner
● Contract compilation and deployment
Development environment, testing framework and asset
pipeline for Ethereum
108

109. 10
9
To l & Fra r or DA
Web3.j
● web3-eth: Ethereum Blockchain &
Smart Contracts
● web3-shh: Whisper Protocol
to communicate p2p.
● web3-bzz: Swarm Protocol,
decentralized file storage.
● web3-utils: useful helper functions for
DAPP developers.
Ethereum JavaScript API
109

110. To l & Fra r or DA
Met k
● Don’t need to download 10+GB
blockchain
● Store your ETH in a chrome
extension
● Easy to set up
● Safe
● Not only a wallet, but also works on
DAPP.
METAMASK
Brings Ethereum to your browser
110

111. To l & Fra r or DA
IP
● Peer-2-Peer Transfer
● Content Addressing (Unique Identifier)
● No Duplication
● Tamper Proof
● Fast browsing of data
Open-source, peer-to-peer distributed hypermedia protocol
111

112. Blo c
Public vs Private Blockchain
112

113. 11
3
Pub v P iv B oc h
Sim it
● Peer-to-peer network
● Consensus
● Immutability
113

114. Pub v P iv B oc h - Dif n e
Public Blockchain
● Anyone can join
● Incentivize participants to join.
Private Blockchain
● Need invitation
● No incentive
114

115. Pub v P iv B oc h - Pro & Con
Public Blockchain
Pros
● Users protected from developers
● Network effects
Cons
● Limited scalability
● Limited privacy
● Storage constraints
Private Blockchain
Pros
● Rule changing
● Known validators
● Transaction speed is high
● Cheaper transactions
● Well-connected nodes
● Privacy
Cons
● Lack of decentralized power
● Trust
● Higher probability of going down 115

116. Pub v P iv B oc h - Pla r
Public Blockchain Private Blockchain
116

117. THANK
YOU

118. CONTACT US
hello@slash.co