(2015 0401) crowdfunding and social enterprise v02 (transferred)
Lecture on Blockchain, Bitcoin, and FinTech
1. Blockchain, Bitcoin & Fintech
Revolution of Disruptive Innovation in Financial Service Industry
Chaiyoot Chamnanlertkit
Chitralada Technology Institute
24 July 2019
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The Origin of Blockchain and Bitcoin
The origin of blockchain sounds like the plot of an
unbelievable thriller. It opens with a 9- page whitepaper
published in 2008 by an anonymous scientist under the name
of Satoshi Nakamoto. Satoshi’s work outlines in detail how to
make a completely novel cryptocurrency based on a
sophisticated mathematical formula and a resilient distributed
architecture.
The Satoshi’s publication described how bitcoin can be used to
send payments between two willing entities without requiring a
third-party financial body. Each transaction was stored in the
blockchain ledger, the latest block linked to the preceding
ones using a digital signature. To make sure there is trust in
the ledger, the network participants ran complex algorithms to
authenticate those signatures and add transactions to the
blockchain.
Blog: What is Blockchain ? – Definition, Origin, and Historyt, Lee Grant, September 6, 2016.
Blog: Three People Who Were Supposedly Bitcoin Founder Satoshi Nakamoto. Rakesh Sharma. Investopedia. Jun 25, 2019
Paper: Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto. 2008-10-31
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Cryptography Hash
The Basic of Trust
Playing with Hash Value
Calculation at
http://www.blockchain-
basics.com/Hashing.html
Book: Blockchain Basic: A Non-Technical Introduction in 25 Steps. Danial Drescher. Apress. 2017. Page-74
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Chain of Trust
Blog: Blockchain. Wikipedia. Captured on 2019-0720
Bitcoin Network Data
Blockchain formation. The main chain
(black) consists of the longest series of
blocks from the genesis block (green) to
the current block. Orphan blocks
(purple) exist outside of the main chain.
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Chain of Trust
Programming Perspective
Paper: Catena: Efficient Non-equivocation via Bitcoin. Alin Tomescu & Srinivas Devadas. May 2017
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Chain of Trust
Concept of Registration: Ownership & Block
Book: Blockchain Basic: A Non-Technical Introduction in 25 Steps. Danial Drescher. Apress. 2017. Page-42 and 44
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Distributed Ledger Technology
The Blockchain and Smart Contract Concept
Blog: Distributed Ledger Technology – Fundamentals You Must Know. Pramod Chandaryan, May 17, 2018
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Application of DLT
• Healthcare
• Offers better clinical support
• Speed up diagnosis and protect patient
information
• Legal Contracts
• Offer protection for legal contracts and
documentations
• Streamlining property information and
validating inheritances
• Entertainment
• Streamlining entertainment channels and
ensuring better artist value
• Providing higher-end technology for gaming
• Manufacturing
• Enables smart manufacturing
• Optimizes time, speed and reduce cost
• Governmental Services
• Can give a transparent election system
• Offers “smart cops” and upgrades the law
department
• Supply Chain
• Can track and monitor luxury goods
• Ensure logistic based processes
Blog: Distributed Ledger Technology: Where Technological Revolution Starts. Hasib Anwar. January 30, 2019
• Global Payment Method
• Offer faster transactions worldwide
• Provide digital currencies
• Internet of Things
• Provide security for Internet of Things
• Offer a better ecosystem to deal with
operational challenges
• Transportation
• Ensures better upgradation for “smart cars”
with more accuracy
• Connect passenger with better quality
transport
• E-Commerce
• Connect users with better merchandisers
• Promote fairness in the digital marketplace
• Cybersecurity
• Provides a high level of online security
• Offers better firewalls and blacklists
• Trading
• Ensures a safe platform for cryptocurrency
trading
• Provides a higher level of security for your
assets
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Challenge DLT Needs to Overcome
•UNCERTAINTY OF REGULATION
Lack of regulation or limited regulation is compromising user rights on the network
•LIMITED EVIDENCE OF GLOBAL IMPACT
How DLT can be globally implemented is still a theoretical approach. There isn’t much hard evidence of
present global impact
•IMMATURITY OF THE TECHNOLOGY
Distributed ledger technology is still on immature technology. Each DLT comes with its own set of flaws. It
needs to be more mature.
•PROTECHING DATA AND MAINTAIN SECURITY
Maintaining security and protecting data becomes a much more difficult task as the network grows.
•OVERCOMING PRIVACY ISSUES
Preserving full user privacy along with transparency is another massive challenge for DLT.
•CONFLICT WITH TRADITIONAL APPROACH
The whole concept of DLT conflicts with the already existing approaches. The technology needs to prove
tit worth.
Blog: Distributed Ledger Technology: Where Technological Revolution Starts. Hasib Anwar. January 30, 2019
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Public vs. Private Blockchain
Blog: Exploring Ethereum Blockchain for Enterprise Use. Marko Zovko. Captured 2019-0722
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Design Thinking in DLT Development
Blog: Blockchain and Business Ecosystem Design, Michael Lewrick, May 2018
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Key Takeaway
Digital Asset and New Trust Model
• Blockchain ถูกกล่าวขวัญว่าเป็น Global Disruption เนื่องจากได้
นาเสนอ Trust Model ที่แหวกแนวจากของดั้งเดิม ซึ่งอาศัยคนกลางหรือผู้
มีอานาจมาค้าประกัน Trust Model ของ Blockchain เรียกว่า Self-
Sovereignty กล่าวคือตัวเราเป็นผู้ค้าประกันตัวเอง โดยอาศัย Records ที่
อยู่ใน DLT
• การใช้ Blockchain จึงไม่จากัดอยู่เฉพาะในการทา Cryptocurrency เช่น
Bitcoin เท่านั้น โดยหลักการ Blockchain สามารถนามาใช้สร้าง Digital
Asset ทั้งที่เป็นของที่มีอยู่จริง หรือ ของที่สร้างขึ้นใหม่ในโลกดิจิทัล เช่น
การใช้ Blockchain มาเก็บ Score และ Status ต่างๆ ของการเล่นเกมส์
ออนไลน์
• ปัจจุบันมีหลายวงการ ที่ได้เริ่มทดลองการใช้ Blockchain เช่น ในการ
ประกันภัยและประกันชีวิต, ในเรื่องการบริหารพลังงาน, ในแอพพลิเคชั้นของ
Smart City, ในการลงคะแนนเสียงเลือกตั้ง, เป็นต้น ซึ่งการค้นหาวิธีการใช้
Blockchain ใหม่ๆ เหล่านี้ เราเรียกรวมกันว่า Use Cases