The Blockchain

1. Innovation Report:
Blockchain in a
nutshellDaniel Voignac • 08.2017

2. Overview
I. Definition
II. Issues
III. Applications

3. Motivation

4. Motivation
On the 17th of August a Tesla 3 would have
cost you 7.9 Bitcoin
In 2011 it would have cost you 17,500,000
Bitcoin

5. Motivation
Figure 1: Bitcoin/USD exchange rate,10 year period
(source: xe.com (date of access: 14/08/2017))
START

6. I. Definition

7. The Concept
Block is
broadcast to
every party in
the network
Youssef
wants to send
Tanguy some
money
1st Block is
created online
and represents
the transaction
Those in the
network
approve the
transaction and
validate it
Block is added to the
chain which provides
permanent
nonrepudiable and
transparent record of
the transaction
Tanguy
receives the
money from
Youssef

8. The Concept
● Distributed Database
● Trust and consensus
● Decentralised organisation
○ Removing the middleman
○ Increasing Authenticity

9. Digital Record
● Transaction Number
● Address
● Size
● Block Number
● Date & Time

10. II. Issues

11. So what makes Blockchain so secure?
● Hash function enforces clear and thorough records
● Multiplicity of miners (5000+ for Bitcoin) and consensus
requirement
● Proof-of-work
● Protocol definition 1 MB max data per block
● Quantity of addresses ( 10⁴⁸ for Bitcoin while there are 10⁵⁰
atoms on constituting Earth)

12. Issues
● Decentralized Autonomous Organisation (DAO)
● Finance
● IoT
● Smart Contracts
● Smart Governance
● Ethics

13. III. Applications

14. Source : https://blog.coinbase.com/a-beginners-guide-to-ethereum-46dd486ceecf (date of access: 04/08/2017)
Bitcoin vs. Ethereum
Info from end of Feb 2017. What about today in terms of market cap?

15. Source : https://coinmarketcap.com/ (date of access: 04/08/2017)

16. HyperLedger
● A Linux Foundation initiative
● Five projects : Fabric, Iroha, Sawtooth, Burrow, Indy
● Fabric is the most used one for developing blockchain based
applications
● Open-source as everything from Linux
● Allows components such as consensus to be plug-and-play
Source: https://www.hyperledger.org/about

17. How about groups like AWS?
● AWS annouced partnership with Digital Currency Group (DCG)
in May 2016 to research on a possible intgration
● In turn, DCG announced in May 2017 DCG connect dcg.co
● Updates are coming in very fast
● Race to who is the quickest
● https://azure.microsoft.com/fr-fr/blog/the-microsoft-vision-for-
accelerating-enterprise-blockchain-development/

18. Thank you !
● Distributed database
● Smart Contracts
● Financial application
● IoT application