An Introduction to Blockchain Technology and Its Applications

1. An Introduction to BLOCKCHAIN TECHNOLOGY and Its Applications December 12, 2016 Ariel Elkin
2. ME • iOS Developer, > 10 apps in store • Adopted Bitcoin in 2014 • Member of Berlin’s Bitcoin/Blockchain communities • I don’t make Goodenough jokes
3. STRUCTURE I. Introducing Blockchain Technology 1. The problem 2. Centralising trust 3. Blockchains 2. Applications of Blockchain Technology 1. Value transferring 2. Truth machines 3. Smart contracts
4. TAXONOMY BLOCK BLOCK BLOCK BLOCK Blockchain technology is a platform. Bitcoin is an application of this platform.
5. INTRODUCING BLOCKCHAIN TECHNOLOGY BLOCK BLOCK BLOCK BLOCK
6. THE PROBLEM How can we achieve financial transactions at a distance? 10 € ? € ? €
7. CENTRALISING TRUST A trusted third party processes the transactions and keeps track of everyone’s balance. 200 € 5 € 10 €
8. CENTRALISING TRUST: BENEFITS • Fraud detection • Abstraction of complexity • Provision of infrastructure • Customer service • Tradition
9. CENTRALISING TRUST: DISADVANTAGES • 1-3% fee per transaction • High on-boarding costs • Bureaucracy (KYC, AML, PCI) • Slow international transfers • Doesn’t entirely prevent fraud Crucially: Trusting many different intermediaries is required
10. DECENTRALISING TRUST 20€ 5€ BL BL BL BL BL BL BL BL BL BL BL BL BL BL BL BL
11. BLOCK BLOCKS ALICE SENDS BOB €20 BOB SENDS STEVE €10 FRED SENDS JULIA €40 MARY SENDS JIM €10
12. BLOCKCHAIN BLOCK BLOCK BLOCK BLOCK
13. DEMO
14. STRENGTHS • Immutable Ledger • Fast settlement • Easy to Audit • Trustless • Secure
15. WEAKNESSES • Vulnerable to 51% attacks • Vulnerable to DDoS and spam • Slow transaction clearing • Privacy concerns • Slow adoption BLOCK
16. APPLICATIONS OF BLOCKCHAIN TECHNOLOGY BLOCK BLOCK BLOCK BLOCK
17. VALUE TRANSFERRING • No fraud • No monthly fees • Minimal transaction fees • No chargebacks • No special equipment needed • Democratic CURRENCY: BITCOIN PAYMENTS
18. VALUE TRANSFERRING FINANCIAL SERVICES
19. VALUE TRANSFERRING USING THE BLOCKCHAIN FINANCIAL SERVICES bitcoin payments, deposited to your bank account pay your bills with bitcoins and use a bitcoin credit card invest in crowdfunded micro-loans all over the world
20. TRUTH MACHINE • Create a permanent and unchangeable link between a person and an asset • Easily and securely transfer ownership • Blockchain benefits: • Nobody owns the database • Transparent • Auditable
21. TRUTH MACHINE simplify records management, record business processes, and address security and compliance issues. claim attribution over works of art, create limited digital editions and transfer rights. create your own digital assets on the Bitcoin Blockchain.
22. SMART CONTRACTS • Programmable, unbreakable, and self- executing • Transparent • No intermediary, no central authority
23. BLOCKCHAIN IS MORE THAN A TECHNOLOGY. IT’S A STRATEGY. ” “
24. THANK YOU
25. QUESTIONS?