When not to use blockchain?

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When not to use Blockchain? Evaluating Suitability of Blockchain Technology on Projects - Koshik Raj

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Agenda ● Understand the key properties of the blockchain technology. ● Differentiate DLT from databases. ● Understand decentralized application architecture. ● Understand the blockchain suitability evaluation framework.

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When did it all start?

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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.

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Why was it created?

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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.

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How Bitcoin solved it?

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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

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Blockchain 1234 1234 1235 1235 1237

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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.

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How is it different from distributed databases?

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DLT vs Distributed databases ● Disintermidiation (DLT wins) ● Confidentiality (DB wins) ● Robustness (DLT wins) ● Performance (DB wins)

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Centralized vs Decentralized application architecture HTTP RPC

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What else does blockchain bring to the table?

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Immutability Non repudiation Transparency Reduced cost Redundancy Security

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When to use blockchain?

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Birch model

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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?

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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)

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Use case evaluation Cross-border payments Supply chain Stock market Asset management/ DAO Electron health records

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Is blockchain there yet? New internet?

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Thanks! Contact me: Koshik Raj linkedIn: koshikraj GitHub: koshikraj twitter: rajkoshik [email protected] www.koshik.me “keep calm and use blockchain wisely”