When not to use blockchain?

A talk on evaluating the suitability of blockchain for various use cases.
Agenda:
Understand the key properties of the blockchain technology.
Differentiate DLT from databases.
Understand decentralized application architecture.
Understand the blockchain suitability evaluation framework.

Transcript

1. When not to use Blockchain? Evaluating Suitability of Blockchain Technology on Projects - Koshik Raj
2. Agenda • Understand the key properties of the blockchain technology. • Differentiate DLT from databases. • Understand decentralized application architecture. • Understand the blockchain suitability evaluation framework.
3. When did it all start?
4. Bitcoin history • Several cypherpunks attempted to implement cryptocurrencies in 1990s. ◦ Bit gold, DigiCash • "Bitcoin: A Peer-to-Peer Electronic Cash System" a paper was published by Satoshi Nakamoto. • It was implemented as a decentralized accounting system.
5. Why was it created?
6. Centralization concerns in the past • Cyber attacks on major institutions. ◦ Sony pictures, JP Morgan Chase data breach. ◦ Target customer confidential data breach. • Expensive transaction fee. • Subprime mortgage crisis in 2008.
7. How Bitcoin solved it?
8. Distributed Ledger Technology (DLT) • A shared ledger that is distributed without borders. • Achieves a single truth in the decentralized network. • Blockchain + Peer to peer network + Consensus mechanism = DLT
9. Blockchain 1234 1234 1235 1235 1237
10. Consensus algorithm • A mechanism to reach an agreement in the decentralized network. • Achieves immutability and solves double spend problem. • Bitcoin uses Proof-of-work to achieve the consensus.
11. How is it different from distributed databases?
12. DLT vs Distributed databases • Disintermidiation (DLT wins) • Confidentiality (DB wins) • Robustness (DLT wins) • Performance (DB wins)
13. Centralized vs Decentralized application architecture HTTP RPC
14. What else does blockchain bring to the table?
15. Immutability Non repudiation Transparency Reduced cost Redundancy Security
16. When to use blockchain?
17. Birch model
18. Questions to ask • Whether the scenario requires multiple entities? • Is the operation centralized? • Is the integrity of transaction history is required? • Is high performance required? • Is there any trusted third party? • Is there confidential data to store? • Does data need to be modified often?
19. Blockchain decision model • Multiple entities. • The operation is not centralized. • Integrity of transaction history is required. • Performance is not the priority. • There is no trusted party involved. • Data transparency is desired. • Inserted data shouldn’t be modifiable (immutable)
20. Use case evaluation Cross-border payments Supply chain Stock market Asset management/ DAO Electron health records
21. Is blockchain there yet? New internet?
22. Thanks! Contact me: Koshik Raj linkedIn: koshikraj GitHub: koshikraj twitter: rajkoshik koshik.raj@gmail.com www.koshik.me “keep calm and use blockchain wisely”