Blockchain The protocols and concepts underpinning the hype
Matthew Griffin - Blockchain Analyst & Trainer
Agenda
● Bitcoin 101 ● Centralisation/Decentralisation ● Key insight of Bitcoin ● Blockchain 101 ● Business Use Cases & Discussion
Bitcoin 101
Digital Programmable Money
Digital Programmable Money Transactions
Digital Money
Digital Money
Physical Money seldomly changes hands in our system
One centre of control
A little bit more fragile than you would expect..
Digital Money
Digital Money
In 1999, Sharing of Digital Music propagated throughout the world
Digital Money
Digital Money
The marginal cost to duplicate a digital good approximates zero, so when they become a part of a P2P-network, the scarcity was
eliminated and they propagate to everyone in the network
Digital Money
Now with scarcity - built in
Digital Money
Digital Money
● Create a ledger of account that is not owned or controlled by anyone
● Existing on a peer-to-peer network ● Using cryptography to enforce the accuracy of the balance
Think … really big shared spreadsheet
Think … really big shared spreadsheet
But the magic is that only “PERSON A” can only EVER transfer out of that balance of bitcoin
Why?
● Completely Decentralised ● User Controlled ● Powerful and Flexible in its use ● Can represent more than just “money”
Blockchain 101
https://
Internet Protocols
SMTP
VoIP
Path of Disruptive Technologies
Institutions -------> Platforms --------> Protocols
{#} Post ---------> Google -----------> SMTP
Telco ---------> Skype -----------> VoIP
Bank ---------> Bitcoin ----------> Blockchain
Defining features of a Blockchain
A data structure so secure it can be made public where altering a copy of the data has no effect & records can only be appended, never deleted or
updated
Underpinned by a peer to peer protocol that strictly enforces validity and consensus prior to writing data
Think … really big shared spreadsheet
Think … really big shared spreadsheet
● Single Source of Truth ● Its Programmable ● It can hold valuable data ○ Balance of bitcoins.. ○ But also things like, your identity?
Single Source of Truth
There's only one place in which contains the balances of bitcoin… the bitcoin blockchain
Must Agree to the transaction
You can send a transaction that has
additional logic attached
Programable
If then that logic
Hold Data
Holds Data
Person C
Gives another person the “KEY” to that encrypted data
Holds Data
Business Models & Opportunities
Problem.. Reconciling all that data is hard
● Use a Blockchain to - ● Create a Single Source of Truth ● Audit Trail for Reconciliation
Air Bnb ..
● When you start to think of AirBnb core features as... ● Manages Payments ● Stores Reputation of different parties
Air Bnb ..
Air Bnb ..
Data is controlled by the user
● The owner of the data controls it ● Blockchains don’t rely on a central repository ● We can put data on a blockchain and having clever ways
around how to permission who can access that data
Data is controlled by the user
● For the tourism industry … ○ Lots of data exists about guests ○ Most is aggregated and centralised and then packaged
as a service ○ A blockchain may enable you to hold onto custody of
the data you put into those services
Data is controlled by the user
● For your guests ○ Instead of you surveying and holding data about your
guests ○ That data might exist on a blockchain ○ And they give you permission to view it
Matthew Griffin [email protected]