Blockchain is a digital ledger that records transactions in cryptocurrency like Bitcoin in a way that is chronological, public, and permanent. It provides an alternative to centralized record keeping of transactions by instead distributing the ledger across multiple users' computers. This addresses issues like corruption, fees, or a single entity controlling the ledger. Users validate transactions and add them to the ledger through a process called mining. Blockchain technology has many potential applications beyond currency, including finance, public records, supply chain management, and more.

1. High Level intro to Blockchain
Konstantins Vasilenko
COO, Co-Founder @ Paybis.com
Board Member of Latvian Blockchain Association
k.vasilenko@paybis.com

2. What is Blockchain? What is Bitcoin?

4.  A digital ledger used to record all
transactions made in bitcoin or another
cryptocurrency
Chronologically
Publicly
Permanently

5. Decentralized money (analogy)
 Yap is a nation in the South Pacific,
living on a set of Islands
 Rai stones – Used for exchange
 circular stone disks that can be up to
3.5 m in diameter and weigh up to
4000 Kg!
 Trading stones of this size is
difficult

6. Centralized Ledger
 Write down every transaction in a book
called a ledger
 Bookkeeper appointed
 Alice pays Bob 10 lbs of Rai,
 Alice goes to bookkeeper’s house and announces
the transaction.
 Everything worked well for a while, but
gradually, problems appeared:
 Fee’s, Availability of Bookkeeper,
 Corruption
 Centralization of Power

7. Decentralization and More Trust
“trustless”
 Decided to find a new way
 Every family would maintain its own ledger!
 Alice pays Bob 10 lbs of Rai,
 Alice announces the new transaction to all other
families.
 Each family would then check their own ledger
 No a single family had more power than any
other!

8. To Centralize or Decentralize?

9. What is Mining?

10. What is interesting in Blockchain?
 The interesting things in Bitcoin Blockchain are:
It’s Open (Anyone can access it)
Immutable
No need to ask for any permission (Permissionless)
Borderless (like internet)
Neutral (race, religion, wealth agnostic)
Decentralized
Censorship resistant

11. Other Blockchains and Altcoins
 1500+ and counting
 Some are Currencies
 Dash, Monero, Litecoins, Ripple, etc…
 Some represent Company/Project Shares
 Steem, Augur, Decent, Iconomi, etc…
 Some are Platforms - Ethereum
 Imagine Public Cloud for Programmers
 Smart Contracts – legal contracts represented
by Code

12. Invest in Bitcoin? Altcoins? Blockchain?
 Bitcoin! Maybe? 500’000$ by 2030? At your own Risk.
 From 1500+, 90% are worthless or Scams (“Scamcoins”)
 “Buy MEGA Coin, earn 100% daily, bla bla” - SCAM
 Invest your time to understand it, get the skills,
understand industry, innovate, make a career or
startup, an opportunity for you as an individual

13. Types of Blockchains
 Public blockchain
Anyone can use it, send transactions, participate, explore the blockchain,
validate it.
 Example: Bitcoin, Ethereum
 Consortium blockchain
Controlled by a pre-selected set of nodes; for example consortium of 15
financial institutions, each operates a node. The right to read the blockchain
may be public, or restricted to the participants.
 Example: R3
 Private blockchain
Permission management is kept centralized to one organization. Read
permissions may be public or restricted to an arbitrary extent.
 Examples: Eris Industries, Multichain

14. Blockchain in Finance and Banking
 The question remains, will Blockchain technology revolutionize
the finance and legal industries in the same way the Internet
changed the media industry, once and for all?
 R3 (R3CEV.com) 80 of the world's leading financial institutions
and regulators joined
 Use Cases:
 Payments
 KYC/AML & Records Management
 Asset Management (“Bank coins”, e.g. Fedcoin, Cadcoin)
 Smart Contracts (Automation of Legal Agreements, Automated Payments)
 Lending, issuing letters of credit, factoring, export credit and insurance.

15. Blockchain in Public Sector
“The part of an economy that is controlled by the state.”
 State Registers
 Various Public Archives
 Company registers
 Various Government Datas
 Distribution of grants
 Land Registers
 E-Residency
 E-Health

16. Blockchain in Logistics & Supply Chain
The blockchain has the potential to transform the supply
chain and disrupt the way we produce, market, purchase
and consume our goods
 Share your product’s journey and your business impact on
environment and society.
 Follow the movement of pork in China with a blockchain.
 Track mineral analysis done by outside vendors
 identifying data on a million individual diamonds to a blockchain
to comply with regulations barring “blood diamond” products.

17. And many more areas
 Crowdfunding (ICO’s, Decentralized Markets)
 Governance (elections, polls)
 File Storage
 Prediction markets
 Protection of intellectual property
 Internet of Things (IoT)
 Stock trading
 Web 3.0?

18. Try out Blockchain
 Hyperledger
 open source cross-industry blockchain technologies hosted by The
Linux Foundation,
 Open Chain, Multi Chain, Chain.com
 Open source technologies for custom Public and Private Blockchains
 Ethereum
 Ethereum is a decentralized platform that runs smart contracts
 Counterparty.io
 open source, create own Crypto Currency, runs smart contracts
 Blockcypher
 Bitcoin Blockchain Web Services and API’s

19. Why Companies and Governments Invest
in Blockchain?
 Main Drivers:
 Efficiency (e.g. Santader estimates $20Bn / year in savings)
 New Businesses (e.g. digital trades between financial
institutions)
 Ecosystem (e.g. removing redundant Ledgers between
banks, regulators, state orgs.)
 Main Challenges:
 Collaboration
 Regulation
 Integration

20. Hype?
 Gartner:
blockchain will
come to be
"transformational"
across a variety of
industries, in 5-10
years away from
now

21. BLOCKCHAIN became an Industry by it self
 Companies: We want Blockchain, red one please!
 Consultants: Yes We Can! More $$$ please
 Silicon Valley - goto random hotel, switch off lights, stand in front of mirror and say blockhain 3 times –
10 VC’s will jump out and throw millions of $$$ at you

22. Google Trends

24. We are Hiring!
 PHP Developer
 Customer Care
Representative
 https://paybis.com/career/