Blockchain is a new protocol that allows for decentralized verification of transactions without an intermediary. It uses cryptography and a distributed ledger to securely record transactions in a way that is publicly verifiable. This could transform business models by reducing costs and increasing trust between parties without centralized authorities. Examples include using blockchains for land registries, tracking ownership of luxury goods, and implementing "smart contracts" on platforms like Ethereum. While still early, blockchain technology has potential to impact many industries and aspects of society through distributed networks with shared ledgers.

1. Blockchain
In a Nutshell
BlockchainHub ■ Dr. Shermin Voshmgir ■ November 4, 2015

2. What is Blockchain?

3. Internet
of
Value
● Internet of Information
TCP/IP = communication protocol
revolutionized the way we exchange
information
aka ‘Information Data Highway’
1st use case: email
● Internet of value
Blockchain = value exchange protocol
can fundamentally transform business,
economy & politics
by ‘Decentralizing Trust’
1st use case: Bitcoin

4. Trust
Machine
Blockchain lets people who have no
particular confidence in each other
collaborate,
without having to go through a
neutral central authority
aka
trusted 3rd party

5. Blockchain replaces the trusted 3rd party!
Secure, decentralized peer to peer transactions
instead of central authorities

6. How to get rid
of the trusted 3rd party?
● Shared
● Trusted
● Public ledger of transactions
● That everyone can inspect
● But which no single user controls

7. Blockchain
Combination of technologies that
we have had for a while
● Peer to Peer Networks
Every node of the network is client as
well as server, holding identical copies
of the application state
● Cryptography
Distributed hash trees for
security & privacy
● Proof of Work
Distributing Transaction Validation:
Validating transactions in a distributed
network to find consensus about what
transaction is true or false

8. How?
Consensus instead of
trusted 3rd party
Each transaction on the blockchain is
verified by all nodes in the network
(true or false?)
If the majority of the network agrees
that a certain transaction is true, it is
validated and a new Block is created
and added on ‘top’ of the chain

9. Why
is ist better to distribute trust?
● Faster
● Cheaper
● Minimises errors

10. Numbers
● Bitcoin
- transactions (few cent vs. 5-10%)
- faster (m/seconds vs. days)
- more secure: hard to quantify
● Fintech Use Case
Santander Bank reckons that it
could save banks up to $20 billion
a year by 2022

11. Which
Blockchains
exits today?
● Bitcoin
first use case of Blockchain
● Altcoins
Forks of Bitcoin
● Ethereum
Universal World Computer

12. Ethereum
Crypto Economy
Crypto Law
Most ambitious crypto-ledger project
● Beyond transferring value
● Can verify if a party to a contract
has fulfilled its side of the bargain
● Smart contracts: computer can
verify or auto-enforce any type of
business transaction / legal
agreement

13. Use Cases
We can build all kinds of dApps on
top of the Blockchain
● Tamper-proof public databases
land registries (i.e. Honduras & Greece
are interested)
● Registers of the ownership
of luxury goods or works of art
● Get rid of the Notary!
Documents can be notarised by
embedding information about them
into a public blockchain
● Fintec
Using blockchains as a record of who
owns what instead of having a series of
internal ledgers

14. Challenges
on the Blockchain
● Education
● Scalability
● Privacy
● Business Models
● We are still building the protocol
Layer!

15. Outlook
We are in the fetal stage of the technology.
It will be several years before the blockchain’s full potential becomes clear.

16. Beyond
Engeneering
Blockchain affects
all aspects of society
● Constitutional Law
● International Law
● Business
● Economy
● Politics
● Philosophy

17. Blockchain
Hub
What we do ...
InformationHub
PeopleHub
ThinkingHub

18. Sources & Further Reading
http://www.economist.com/news/leaders/21677198-technology-behind-bitcoin-could-transform-how-economy-works-trust-machine
http://www.economist.com/news/briefing/21677228-technology-behind-bitcoin-lets-people-who-do-not-know-or-trust-each-other-build-dependable
http://www.economist.com/news/special-report/21650295-or-it-next-big-thing
http://www.forbes.com/sites/anthonykosner/2014/12/31/tech-2015-block-chain-will-break-free-from-bitcoin-to-power-distributed-apps/
http://www.economist.com/news/special-report/21650295-or-it-next-big-thing