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blockchain beyond the hype -what we learned since 2017

Jan Paul Buchwald, Jochen Kaßberger

51nodes GmbH

Stuttgart, 10.05.2019

Stuck at the end of the peak

https://www.gartner.com

Overview – What is Blockchain?

Blockchain – Distributed Ledger

"an open, distributed ledger that can record transactions between two

parties efficiently and in a verifiable and permanent way.”Iansiti, Marco; Lakhani, Karim R. (January 2017)

”Decentralized, chronologically updated database with a network-based

consensus mechanism, used for the permanent securitization of

property rights.”Gabler Wirtschaftslexikon, translated from German

”The Slowest (and most Fascinating) Database in the World”Stefan Tilkov

Mining based Blockchain

Non-mining

Nodes Mining Nodes

Block n

Hash

Block n-1

Hash Txs

Tx Pool

Block n-2

Hash Txs

Can easily

verify validity

of existing

transactions

New Transactions

Verification of new

transactions, solving a

cryptographic puzzle to

mine new block (PoW)

Programmable Blockchain

Ethereum Smart Contracts

Adapted from https://www.sciencedirect.com/science/article/pii/S0167739X17318332

Where do we come from, where do we go?

2015 - 2019: Blockchain Community Stuttgart

8

2015 2016 2017 2018

Gründung blockLAB

Blockchain Camp WG Blockchain

Gründung Special Interest

Group Blockchain bwcon1. BC-Hackathon Stuttgart

BC-Strategie für

Baden-

Württemberg

Meetup Blockchain

Stuttgart

2019

Some of our projects…

Project: Diamond asset backed token - ERC-721 (NFT)

Value transfer and

storage

Cryptocurrencies

Crowdfunding ICOs

Tokenization (of real assets)

Token classification

https://medium.com/fabric-ventures/an-entrepreneurial-investors-take-on-the-utility-of-tokens-beyond-payment-ccef1d5bb376

1

2

3

Ethereum token standards exhaustive list

https://github.com/PhABC/ethereum-token-standards-list/blob/master/README.md

What is a non-fungible token (NFT)?

https://twitter.com/toddg777/status/965795801279512576

Asset-backed token - basic model

Asset-backed token

Money in exchange for asset ownership

Underlying Asset

• Tangible

• (Unique)

• (Identifiable)

• (Valuable)

Technical framework for a non-fungible asset-backed token

© 51nodes GmbH

Untitled Inc. token classification framework -tokenized asset

http://www.untitled-inc.com/the-token-classification-framework-a-multi-dimensional-tool-for-understanding-and-classifying-crypto-tokens/

terranets bw ConnectCapacity

▪Gas grid operator of Baden-Württemberg

▪ Process for ordering gas throughput capacities by othernetwork operators (publicutilities, companies)

▪Disclosure requirements wereenriched by storing relevant steps of the process in thepublic Ethereum main net

CC Architecture

Linux Server (virtualised)

Public Ethereum

Blockchain

Existing Systems

MS Exchange

SOAP Service

Oracle DB

Web UIAngular

REST ServiceSpring Boot

System Wallet

HTTP Servernginx

SOAP

JDBC/

JPA

SMTPweb3j

CC Token Transfers

Critical Appraisal

CON

▪ Blockchain only small part(<10%) of solution

▪Had to work aroundlimitations▪ Transaction queue

▪ Failover mechanism

▪ Admin user interface forcontrol and recovery

PRO

▪ Real-life use case

▪Goes live on Ethereum mainnet in May

▪ Potential for further usecases▪ capacity trading

▪ connect gas networkoperators from source to end consumer

Ongoing project: Tokenisation of industrial investmentgoods

What if you combine ICOs…

https://www.coindesk.com/ico-tracker

… with industrial assets?

Anleger

Industrielles Investitionsgut, integrierter Chip

Smart Contract, Blockchain

Token, Anlegerwallet

Which role will the Stuttgart region play?

24

Further Projects and Topics

Mileage2blockchain: trustable vehicle mileage

Blockchain-based Digital Rights Management

Tokenization of Real Estate

Study Blockchain in Supply

Chain Management

Concept for Blockchain based

traceability of Intellectual Property

Review of Mobility Platform

Prototype based on Stellar

…

Where does blockchain make sense?

“[…] the ability to create something that is not duplicable in the digital

world has enormous value.”Eric Schmidt, CEO of Google

Solving the double spend problem

The 3 dimensions of blockchain innovation

imutableledger

decentral, P2P network

consensusalgorythem

cryptography

tokenisation

incentivation

open-source

communitydriventechnology

governance

„internet ofvalue“

cryptocurrencies

protocolleconomy

2. social3. economical

1. technological

blockchain-technology

Blockchain P2P networks as future economicinfrastructure?

Blockchain-basierter

Integration Ledger

Service Service Service

BörseAsset

Asset

Asset

Solarm

.

1 2 3

https://medium.com/the-

blockchain-consumer/heres-my-

ongoing-exploration-of-blockchain-

fat-protocols-1aaf53e0b69d

Outlook and Current Trends

Blockchain/DLT Implementations

2nd generation

3rd generation

DAG based

Blockchain inspired enterprise

ledgers

Second Layer Technologies

▪ Smart solutions on top of existing base blockchain

State ChannelsLightning Network (BTC)

Raiden (ETH)

Counterfactual (ETH)

Side ChainsPlasma (ETH)

POA Network (ETH)

Blockchain PlatformsRSK / Rootstock (Bitcoin)

Blockstream Elements (Bitcoin)

Agoric (ETH)Off-Chain ComputationTrueBit (ETH)

Ethereum 2.0

▪ Series of updates to Ethereum to make it faster and better

▪ Final stage Serenity 2019-2021

Proof of Stake (PoS)Beacon Chain, Casper FFG

Sharding

eWASM

Blockchain Bridging

Relay ChainParachains

Bridges

Validators

Collators

https://polkadot.network/technology.html

https://cosmos.network/intro

Thank you

Questions ?

&

Discussion !

Jan Paul Buchwald

buchwald@51nodes.io

Jochen Kaßberger

kassberger@51nodes.io

51nodes GmbH Stuttgart

https://www.51nodes.io

Backup

Blockchain in the Stuttgart Region

Source: www.blocklab.de

What is a token?

Ethereum tokens can represent anything from a physical object like gold(Digix) to a native currency used to pay transaction fees (Golem).

The properties and functions of each token are entirely subject to itsintended use.

https://blog.coinbase.com/a-beginners-guide-to-ethereum-tokens-fbd5611fe30b

Remember? Development of the World Wide Web

https://de.wikipedia.org/wiki/Akustikkoppler#/media/File:Acoustic_modem_and_phone_plugged.jpg

1989

Akustikkoppler Typ AM211

2019

https://www.networkworld.com/article/3247775/servers/facebook-and-amazon-are-causing-a-memory-shortage.html

https://www.pexels.com/photo/uber-smartphone-iphone-app-34239/

Where will blockchain be in 30 years?

https://bitcoin.org/bitcoin.pdf

2008 2038