Blockchain Basics and Examples from Yap Island to Smart Contracts
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The document discusses blockchain technology through examples from Yap Island and its use of large stone discs (Rai stones) as currency. It provides analogies between the Rai stone system and key aspects of blockchain like distributed ledgers, consensus mechanisms, and resistance to tampering. It also summarizes some key features of blockchain like eliminating intermediaries, ease of use, improved security and transparency. The document discusses potential blockchain use cases for businesses and provides an overview of the Hyperledger Fabric implementation of blockchain.
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Blockchain Basics and Examples from Yap Island to Smart Contracts
- 1. IT.OLS Blockchain Nov 2017 Blockchain The new Internet
- 2. Blockchain Nov 2017 Yap Island & Rai Stone as a Coin • 500 AD. • 2-3 Meters Diameter, 200 KG weight. • Yaps knows Stones (coins) owners. • Any transaction needs ownership change announcement (distributed ledger). • Ledger is known by all people. • Trustworthy person Lead transactions, make rules(Bank). • Distributed leger perfume many light Banking functions. • Yaps contradict ledger tamper.
- 3. Blockchain Nov 2017 Yap Island & Rai Stone as a Coin • If a member losing a copy of transactions, still validated by other members(Fault resistant System). • Yaps can imagine a coin sitting in case of coin destroy or lost, and give a credit or mentally use it for transactions.
- 4. Blockchain Nov 2017 Blockchain != Bitcoin • Blockchain = Process of ownership movement. • Bitcoin = Rai Stone.
- 5. Blockchain Nov 2017 Blockchain in action
- 6. Blockchain Nov 2017 Simplest Example A10-5 = 5 C 0+3 = 3D0 B 0+5-3=2 5$ 3$5$ A-> B10-5 = 5 B-> C 0+5-3=2 B-> D 2-5
- 7. Blockchain Nov 2017 Blockchain identification My Public Key Identifier : 1JwDfJJPGguVWe9N6vkPAqYBovoVCYgobj
- 8. Blockchain Nov 2017 Blockchain • Blockchain is distributed ledger that is completely open for anyone. • If Some data is recorded in Blockchain it becomes very difficult to change.
- 10. Blockchain Nov 2017 Block • Data stored in block depends on the type of block. • Bitcoin Blockchain is storing data as above.
- 11. Blockchain Nov 2017 Block • Once block created its hash is being calculated (unique as fingerprint). • Changing something inside block will cause the hash to change. • Hashes are useful to detect block changes, if changed so it is not the same block.
- 14. Blockchain Nov 2017 New Transaction Consensus • Each Computer node will compare there hash code. • Accurate view of coin ownership.
- 15. Blockchain Nov 2017 Smart Contract
- 16. Blockchain Nov 2017 Car Leasing
- 17. Blockchain Nov 2017 Business Blockchain • Business Networks - benefit from connectivity – Connected customers, suppliers, banks, partners. – Cross geography & regulatory boundary. • Participants - members of a business network – Customer, Supplier, Government, Regulator – Usually resides in an organization – Has specific identities and roles. • Assets - anything that is capable of being owned or controlled to produce value, is an asset: – Tangible, e.g. a house – Intangible e.g. a mortgage, invention. • Transaction - an asset transfer – John gives a car to Anthony (simple). • Contract - conditions for transaction to occur – If Anthony pays John money, then car passes from John to Anthony (simple). – If car won't start, funds do not pass to John (as decided by third party arbitrator) (more complex).
- 18. Blockchain Nov 2017 Blockchain Primary Features • Eliminates the intermediaries. • Ease of use. • Ease in verification of transactions. • Improved security. • Transparency with lower cost. • Decentralization. • Immutability.
- 19. Blockchain Nov 2017 NEGATIVE Indicators • Need high performance (millisecond) transactions • Small organization (no business network) • Looking for a database replacement • Looking for a messaging solution • Looking for transaction processing replacement
- 20. Blockchain Nov 2017 Hyper ledger Fabric An implementation of blockchain technology that is a foundation for developing blockchain applications Emphasis on ledger, smart contracts, consensus, confidentiality, resiliency and scalability. V1.0 released July 2017 159 developers from 27 organizations IBM is one contributor of code, IP and development effort to Hyperledger Fabric One of 67 open projects including…
- 21. Blockchain Nov 2017 Hyperledger members Premier General Associate