Presentation used at 54th CryptoCurrency focused Devclub .lv meetup

1. High Level intro to Blockchain
Konstantins Vasilenko
COO, Co-Founder @ Paybis.com
Board Member of Latvian Blockchain Association
k.vasilenko@paybis.com

2. What is Blockchain? What is Bitcoin?

4.  A digital ledger used to record all
transactions made in bitcoin or another
cryptocurrency
Chronologically
Publicly
Permanently

5. Decentralized money (analogy)
 Yap is a nation in the South Pacific,
living on a set of Islands
 Rai stones – Used for exchange
 circular stone disks that can be up to
3.5 m in diameter and weigh up to
4000 Kg!
 Trading stones of this size is
difficult

6. Centralized Ledger
 Write down every transaction in a book
called a ledger
 Bookkeeper appointed
 Alice pays Bob 10 lbs of Rai,
 Alice goes to bookkeeper’s house and announces
the transaction.
 Everything worked well for a while, but
gradually, problems appeared:
 Fee’s, Availability of Bookkeeper,
 Corruption
 Centralization of Power

7. Decentralization and More Trust
“trustless”
 Decided to find a new way
 Every family would maintain its own ledger!
 Alice pays Bob 10 lbs of Rai,
 Alice announces the new transaction to all other
families.
 Each family would then check their own ledger
 No a single family had more power than any
other!

8. To Centralize or Decentralize?

9. What is Mining?

10. What is interesting in Blockchain?
 The interesting things in Bitcoin Blockchain are:
It’s Open (Anyone can access it)
Immutable
No need to ask for any permission (Permissionless)
Borderless (like internet)
Neutral (race, religion, wealth agnostic)
Decentralized
Censorship resistant

11. Other Blockchains and Altcoins
 1500+ and counting
 Some are Currencies
 Dash, Monero, Litecoins, Ripple, etc…
 Some represent Company/Project Shares
 Steem, Augur, Decent, Iconomi, etc…
 Some are Platforms - Ethereum
 Imagine Public Cloud for Programmers
 Smart Contracts – legal contracts represented
by Code

12. Invest in Bitcoin? Altcoins? Blockchain?
 Bitcoin! Maybe? 500’000$ by 2030? At your own Risk.
 From 1500+, 90% are worthless or Scams (“Scamcoins”)
 “Buy MEGA Coin, earn 100% daily, bla bla” - SCAM
 Invest your time to understand it, get the skills,
understand industry, innovate, make a career or
startup, an opportunity for you as an individual

13. Types of Blockchains
 Public blockchain
Anyone can use it, send transactions, participate, explore the blockchain,
validate it.
 Example: Bitcoin, Ethereum
 Consortium blockchain
Controlled by a pre-selected set of nodes; for example consortium of 15
financial institutions, each operates a node. The right to read the blockchain
may be public, or restricted to the participants.
 Example: R3
 Private blockchain
Permission management is kept centralized to one organization. Read
permissions may be public or restricted to an arbitrary extent.
 Examples: Eris Industries, Multichain

14. Blockchain in Finance and Banking
 The question remains, will Blockchain technology revolutionize
the finance and legal industries in the same way the Internet
changed the media industry, once and for all?
 R3 (R3CEV.com) 80 of the world's leading financial institutions
and regulators joined
 Use Cases:
 Payments
 KYC/AML & Records Management
 Asset Management (“Bank coins”, e.g. Fedcoin, Cadcoin)
 Smart Contracts (Automation of Legal Agreements, Automated Payments)
 Lending, issuing letters of credit, factoring, export credit and insurance.

15. Blockchain in Public Sector
“The part of an economy that is controlled by the state.”
 State Registers
 Various Public Archives
 Company registers
 Various Government Datas
 Distribution of grants
 Land Registers
 E-Residency
 E-Health

16. Blockchain in Logistics & Supply Chain
The blockchain has the potential to transform the supply
chain and disrupt the way we produce, market, purchase
and consume our goods
 Share your product’s journey and your business impact on
environment and society.
 Follow the movement of pork in China with a blockchain.
 Track mineral analysis done by outside vendors
 identifying data on a million individual diamonds to a blockchain
to comply with regulations barring “blood diamond” products.

17. And many more areas
 Crowdfunding (ICO’s, Decentralized Markets)
 Governance (elections, polls)
 File Storage
 Prediction markets
 Protection of intellectual property
 Internet of Things (IoT)
 Stock trading
 Web 3.0?

18. Try out Blockchain
 Hyperledger
 open source cross-industry blockchain technologies hosted by The
Linux Foundation,
 Open Chain, Multi Chain, Chain.com
 Open source technologies for custom Public and Private Blockchains
 Ethereum
 Ethereum is a decentralized platform that runs smart contracts
 Counterparty.io
 open source, create own Crypto Currency, runs smart contracts
 Blockcypher
 Bitcoin Blockchain Web Services and API’s

19. Why Companies and Governments Invest
in Blockchain?
 Main Drivers:
 Efficiency (e.g. Santader estimates $20Bn / year in savings)
 New Businesses (e.g. digital trades between financial
institutions)
 Ecosystem (e.g. removing redundant Ledgers between
banks, regulators, state orgs.)
 Main Challenges:
 Collaboration
 Regulation
 Integration

20. Hype?
 Gartner:
blockchain will
come to be
"transformational"
across a variety of
industries, in 5-10
years away from
now

21. BLOCKCHAIN became an Industry by it self
 Companies: We want Blockchain, red one please!
 Consultants: Yes We Can! More $$$ please
 Silicon Valley - goto random hotel, switch off lights, stand in front of mirror and say blockhain 3 times –
10 VC’s will jump out and throw millions of $$$ at you

22. Google Trends

24. We are Hiring!
 PHP Developer
 Customer Care
Representative
 https://paybis.com/career/