My talk at IDNOG5 (ID Network Operators Group) Conference, Jakarta, 2018, covers a short overview of fintech, cryptocurrency & blockchain + a networking perspective/use cases at the end

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Blockchain
FinTech, Cryptocurrency & Some
Perspectives
Eueung Mulyana
https://telematika.org/remark/idnog2018
IDNOG5 2018 | CC BY-SA

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Eueung Mulyana
Dr.-Ing. (TUHH/DE 2006)
M.Sc. (Uni Karlsruhe/DE 2001)
ST. (ITB/ID 1997)
Institut Teknologi Bandung
School of Electrical Engineering and Informatics
Head of Telematics Laboratory
Institut for Innovation & Entrepreneurship Dev.
Division Chief - Industrial & Business Incubator

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Past Activities
Researches eg. Legacy IP & Optical Networks
Partnerships eg. CSC,HW,etc.
Startups eg. Infra (Submarine Cable), Software/Apps
Communities eg. GDG
Current Activities
Emerging Connected Services
(IoT, Bots, Blockchain, etc.)
Future Networking & Software-De ned Infrastructure
(SDN, SDS, NFV, etc.)
Startups (LPIK) | Communities (ON-ID)

4. Full / Complete Version
bit.ly/bcfull | HTML 
bit.ly/bcfull-ss | PDF 
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5. Outline
Background
FinTech
Cryptocurrency
Blockchain
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6. Blockchain
Background
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The 2008 nancial crisis caused a lot of people to lose trust in
banks as trusted third parties. Many questioned whether
banks were the best guardians of the global nancial system.
Bad investment decisions by major banks had proved
catastrophic, with rippling consequences.
Bitcoin - also proposed in 2008 -
presented something of an alternative.

10. Google Trends | Last 2 Years | Blockchain vs Cryptocurrency
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11. Google Trends | Last 2 Years | Blockchain vs Cryptocurrency vs Bitcoin
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12. Google Trends | Last 2 Years | Blockchain vs Cryptocurrency vs Bitcoin
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14. Gartner Hype Cycle for Emerging Technologies 2017 | Blockchain 14 / 65

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Gartner Top 10 Strategic
Technology Trends for 2018
Blockchain

17. FinTech
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18. Growth of FinTech Investments Since 2000 | Ref: [IOSCO 2017] 18 / 65

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The term Financial Technologies or FinTech
is used to describe a variety of innovative
business models and emerging
technologies that have the potential to
transform the nancial services industry.
Financial Technology describes tech-enabled products and
services that improve traditional nancial services.

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Innovative FinTech Business
Models
o er one or more speci c nancial products or services in
an automated fashion through the use of the internet.
unbundle the di erent nancial services traditionally
o ered by service providers -- incumbent banks, brokers or
investment managers.
Examples
Equity crowdfunding platforms intermediate share placements
Peer-to-peer lending platforms intermediate or sell loans
Robo-advisers provide automated investment advice
Social trading platforms o er brokerage and investing services

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Emerging Technologies
Cryptography
Big-Data
Machine Learning/ Arti cial Intelligence
Distributed Ledger Technologies (DLTs)
Such emerging technologies can be used to supplement both FinTech new entrants and
traditional incumbents, and carry the potential to materially change the nancial services
industry.

22. Major Technologies Transforming Financial Services | Ref: [Fintech and Financial Services - IMF] 22 / 65

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24. Unbundling the Banking Business Model | Ref: [CBInsights, Adaptive Lab] 24 / 65

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FinTech has Changed the
Competitive Landscape
Since the 2008 Financial Crisis, FinTech
startups have targeted single underserved
nancial products with better UI, digital
marketing, and services that cater to shifting
customer demands.
Ref: [Banks in Fintech]

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Disruption
from Every
Direction
Challengers to the big banks now
range from PayPal, the granddaddy of
e-payments which spun o from eBay
(2015), to cryptocurrency companies
such as Coinbase. Ref: [IOSCO 2017]

27. Cryptocurrency
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Digital
Currency
Most of the traditional money supply
is bank money held on computers.
This is also considered digital
currency.
One could argue that our increasingly cashless society
means that all currencies are becoming digital
("electronic money"), but they are not presented to us
as such. Cf. [Digital currency]
Cryptocurrency
A special kind of digital currency. The most
popular Cryptocurrency is Bitcoin.
"Crypto" refers to the cryptographic method used in the
currency to secure transactions and create new unit of the
currency.
This kind of digital money is a revolutionary technology that
allows people or institutions to transfer funds instantly, securely
and without a middleman.

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Altcoins
Alternative Coins
Coins that were created after Bitcoin.
Because Bitcoin's code is open-source, anyone can use Bitcoin's
code to create an altcoin. Many of them seek to improve on
Bitcoin or expand its capabilities.
Altcoins use di erent rules and engage with other economic
models.

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Cryptocurrencies focus on di erent goals, but almost all shared the original purpose of
removing middlemen.
Some of the most popular cryptocurrencies include Ethereum, Ripple, Litecoin, Dash,
NEO, Monero, and IOTA. The list grows constantly, because new cryptocurrencies are
created all the time.
Anybody is allowed to create their own cryptocurrency. In fact,
there are already over 1,500 di erent ones, and that number is
growing quickly. People are developing new cryptocurrencies
for fun, to solve problems, and to make money.
Because anybody with some technical skills can make them, it's important to know that
some cryptocurrencies are more trustworthy than others.
Ref: [upfolio.com]

31. Cryptocurrency | Top 10
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32. Cryptocurrency | Bitcoin
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34. Cryptocurrency | Top 5 34 / 65

35. Overview & Perspectives
Blockchain
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A (public) Blockchain is a
shared, trusted, public
ledger of transactions, that
everyone can inspect but
which no single user
controls.
It is a distributed database that
maintains a continuously growing list
of transaction data records,
cryptographically secured from
tampering and revision.
Ref: [blockchainhub.net]

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The ledger is built using a
linked list, or chain of
blocks, where each block
contains a certain number
of transactions that were
validated by the network in
a given timespan.
The crypto-economic rulesets of the
blockchain protocol (consensus layer)
regulate the behavioral rulesets and
incentive mechanism of all
stakeholders in the network.

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Blockchain Technology
Stack of Ethereum and
similar Blockchains.
Ref: [blockchainhub.net]

40. Types of Blockchains: Public vs. Enterprise 40 / 65

41. Public vs. Federated/Private
Public Federated/Private
Participants
Permissionless
Anonymous
Could be malicious
Permissioned
Identi ed
Trusted
Consensus
Mechanisms
PoW, PoS, etc.
Large energy consumption
No nality
51% attack
Voting or Multi-Party Consensus Algoritm
Lighter
Faster
Low energy consumption
Enable nality
Transaction
Approval
Freq.
Long
Bitcoin: 10+ mins
Short
100x ms
USP Disruptive
Cost Cutting
E ciency / Automation
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Blockchain
Basics
Hash
Hash Chain
Blockchain
A Sequence of Hash-Chained Records
Procedure for Adding Blocks
Procedure for Validation of New Blocks
Procedure for Resolving Disagreements

43. A Chain of Blocks 43 / 65

44. Proof of Work (PoW) 44 / 65

45. BTC Mining Farm | Ref: [Bitcoin.com] 45 / 65

46. BTC Mining Farm | Ref: [Bitcoin.com] 46 / 65

47. Antminer S9 | Ref: [Bitmain.com]
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48. Mining Pool 48 / 65

49. Mining Pool 49 / 65

50. Mining Calculator 50 / 65

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53. Blockchain/DLT Implementation
Approach What/How Examples
BaaS
IT Services
Build on request ConsenSys
Blockchain
First
Develop using the tools provided
by the blockchain
Ethereum, Bitcoin
Development
Platforms
Tools for IT Professionals
ERIS, Tendermint,
Hyperledger
Vertical
Solutions
Industry speci c
Axoni, Chain, R3, itBit,
Clearmatics
Special APIs &
Overlays
DIY building blocks
Blockstack, Factom, Open
Assets, Tierion
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Blockchain as a Service
BaaS
Accenture, ConsenSys, Cognizant,
Deloitte, IBM, PWC, Ernst & Young
Developers will have a single-click cloud-based
blockchain developer environment, that will allow for
rapid development of smart contracts.
The big players in the cloud industry like Amazon(AWS),
Microsoft(Azure), IBM(BlueMix) have seen the potential
bene ts of o ering blockchain services in the cloud and started
providing some level of BaaS to their customers.
Users will bene t from not having to face the problem of con guring and setting up a
working blockchain. Hardware investments won't be needed as well.
IBM BueMix Blockchain (Hyperledger Fabric).
AWS Blockchain Templates (Hyperledger Fabric,
Ethereum).
Google: "would introduce open-source integrations for
apps built with the blockchain-based platforms
Hyperledger Fabric and Ethereum later this year".

55. MS Azure Blockchain
Ref:[S. Tempesta]
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57. Blockchain Use Cases - Ref:[P. Bergstrom] 57 / 65

58. Enterprise Use Cases - Ref:[IBM] 58 / 65

59. Enterprise Use Cases - Ref:[IBM] 59 / 65

60. Telco / Networking Use Cases - Open CryptoTrust 60 / 65

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Blockchain VXLAN
BaaT
BaaT leverages blockchain to create an
architecture that can connect
geographically dispersed L2 islands
over any available infrastructure.
BaaT achieves control plane (VXLAN)
operation via blockchain. It supports
unicast, multicast & broadcast.
Ref: [OpenCT Whitepaper]

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Blockchain-De ned WAN
BD-WAN
BD-WAN integrates blockchain with
Software-De ned WAN (SD-WAN) for
a secure, scalable virtualization of
WAN transport technologies.
BD-WAN dynamically establishes and
tears down logical and physical circuits
so customers pay only for what they
consume.
Ref: [OpenCT Whitepaper]

63. Refs/Resources
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64. Selected References
1. Discover Bitcoin, Ethereum & Blockchain @Upfolio
2. Machine Intelligence Platform @CBInsights
3. Mastering Bitcoin 2nd Edition - Programming the Open
Blockchain
+Many others cited in-context (on resp. slides).
Credits
Icons made by Pixelmeetup from Flaticon
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ENDEueung Mulyana
https://telematika.org/remark/idnog2018
IDNOG5 2018 | CC BY-SA