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Similar to Blockchain: Understanding the blockchain and its impact on financial services by ConsenSys at ArabNet Beirut 2018 (20)
More from ArabNet ME (20)
Blockchain: Understanding the blockchain and its impact on financial services by ConsenSys at ArabNet Beirut 2018
- 4. 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 +
browser
tokens
rewards
WOW
Ripple Protocol
EGold
B i t c o i n
P r o t o c o l
Ven
Ripple XRP
Litecoin
Linden Dollars
Entropia Universe
QQ
Online
Exchanges
Altcoin Explosion
Regulated
Exchanges
Beenz
Flooz
Colored Coins
Square Cash
Amazon Coin
E t h e r e u m
Sovereign Coin
Real Estate
Equities
Derivatives
B i t c o i n O p e n S o u r c e
P r o t o c o l S o l v e s
D o u b l e S p e n d P r o b l e m
v i a O p e n L e d g e r
S m a r t
C o n t r a c t s
© 2018 Juan Llanos
- 5. “A peer-to-peer network that allows for the
proof and transfer of ownership without the need of
a trusted third party.”
Goldman Sachs
“An open platform for value exchange.”
Richard Brown
“A Peer-to-Peer Electronic Cash System”
Satoshi Nakamoto
© 2018 Juan Llanos
- 7. N O C E N T R A L A U T H O R I T Y
D I S T R I B U T E D C O N S E N S U S
B I T C O I N REVOLUTION
© 2018 Juan Llanos
- 9. D I S T R I B U T E D CONSENSUS PROTOCOL
state and state changes guaranteed via...
• D I S T R I BU T E D → one trusted computer made up of many untrusted computers
• C O N S E N S U S
• Traditional → supermajority or benevolent dictator
• “Nakamoto” → forked-choice rule (compromise)
• P R O T O C O L → Mechanism to make faults expensive:
• Proof-of-Work (PoW) → Make changing the state expensive
© 2018 Juan Llanos
- 10. N O C E N T R A L A U T H O R I T Y
O P E N + P R O G R A M M A B L E
D I S T R I B U T E D C O N S E N S U S
N O D O U B L E - S P E N D
P2P TRANSFER WITHOUT IDENTITY
B I T C O I N REVOLUTION
T R A N S PA R E N T L E D G E R
© 2018 Juan Llanos
- 14. 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 +
browser
tokens
rewards
WOW
Ripple Protocol
EGold
B i t c o i n
P r o t o c o l
Ven
Ripple XRP
Litecoin
Linden Dollars
Entropia Universe
QQ
Online
Exchanges
Altcoin Explosion
Regulated
Exchanges
Beenz
Flooz
Colored Coins
Square Cash
Amazon Coin
E t h e r e u m
Sovereign Coin
Real Estate
Equities
Derivatives
B i t c o i n O p e n S o u r c e
P r o t o c o l S o l v e s
D o u b l e S p e n d P r o b l e m
v i a O p e n L e d g e r
S m a r t
C o n t r a c t s
E t h e r e u m
G l o b a l S u p e r
C o m p u t e r i s
B o r n
© 2018 Juan Llanos
- 15. D I S T R I B U T E D CONSENSUS PROTOCOLS
state and state changes guaranteed via...
• D I S T R I BU T E D → one trusted computer made up of many untrusted computers
• CONSENSUS
• Traditional → supermajority or benevolent dictator
• “Nakamoto” → forked-choice rule (compromise)
• PROTOCOLS → Mechanisms to make faults expensive:
• Proof-of-Work (PoW) → Make changing the state expensive
• Proof-of-Stake (PoS) → Use security deposits to punish nodes who propose
competing updates to the consensus
© 2018 Juan Llanos
- 19. © 2018 Juan Llanos
“The basic idea behind smart contracts is
that many kinds of contractual clauses (such
as collateral, bonding, delineation of
property rights, etc.) can be embedded in
the hardware and software we deal with, in
such a way as to make breach of contract
expensive (if desired, sometimes
prohibitively so) for the breacher.”
Nick Szabo, 1997
- 20. © 2018 Juan Llanos
“Smart contracts utilize protocols and user
interfaces to facilitate all steps of the
contracting process. This gives us new ways
to formalize and secure digital relationships
which are far more functional than their
inanimate paper-based ancestors.
Smart contracts reduce mental and
computational transaction costs imposed by
either principals, third parties,
or their tools.”
Nick Szabo, 1997
- 21. © 2018 Juan Llanos
“A contract is essentially an automated
agent that lives on the Ethereum network,
has an Ethereum address and balance, and
can send and receive transactions.
A contract is “activated” every time
someone sends a transaction to it, at which
point it runs its code, perhaps modifying its
internal state or even sending some
transactions, and then shuts down.”
Vitalik Buterin, 2013
- 27. freedom to own
freedom to transfer
freedom to innovate
© 2018 Juan Llanos
P E R M I S S I O N L E S S I N N O V A T I O N
CORRUPTION- & CENSORSHIP-RESISTANCE
- 28. PARADIGMS
challenged
m o n e y
s o v e r e i g n t y
s e c u r i t y
r e g u l a t i o n
p r o p e r t y
i d e n t i t y
l a w
g o v e r n a n c e
© 2018 Juan Llanos
- 33. Quorum is an enterprise-
focused version of
Ethereum ideal for any
application requiring high
speed and high throughput
processing of private
transactions within a
permissioned group of
known participants.
© 2018 ConsenSys
- 51. C R Y P T O T O K E N S
key management
© 2018 Juan Llanos