A discussion of why so many different distributed ledger technologies exist today, and what makes them different from one another. It is non-technical but assumes some familiarity with blockchain and cryptocurrency concepts. Think "Blockchain 201". Originally presented to the Orlando Blockchain in Business Meetup on 12/10/18. Contact Chuck Bair on LinkedIn to schedule a live presentation of this material or other blockchain-related topics.

1. Distributed
Ledger Technologies
What’s up with all these different blockchains?
For the Orlando Blockchain Technology and Business Meetup
Presented by Chuck Bair, Partner

2. Tonight we will discuss these three questions:
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Why are there so many different Distributed
Ledger Technologies?
1
What makes one Distributed Ledger Technology
different from another?
2
What’s Next?3

3. Why are there so many different
Distributed Ledger Technologies?
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1

4. Bitcoin led the way, proving the case for
blockchain technology.
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Tamper-Resistance
Using hash signatures to tie
blocks of transactions together
protects data in the ledger
from alteration or deletion.
Transparency
Anyone (with the right skill
set) can verify transactions
and balances in the ledger.
Reliability and Resilience
Nodes can come and go, but
the blockchain network and all
its data history continues on.
Encryption as Identification
Access is controlled with
user-generated cryptographic
keys rather than a centralized
user database.

5. Many saw potential for the new technology
beyond cryptocurrencies.
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Smart Contracts
Evaluate and execute conditional agreements or
complex transaction instructions.
Digital Ownership Records
Track ownership of real-world assets by
representing them as tokens on a blockchain.
Voting
Provide a highly secure, low-cost, auditable platform
for voting. Potential uses include corporate
governance and eventually public elections.
Social Media & IoT
Enable anonymized sharing of personal data while
leaving individuals in control of access and use.
Auditing & Compliance
Provide a single high-integrity source of
transaction records to enable real-time compliance
and auditing capabilities.
Supply Chain
Improve transparency and authenticity in
supply chains. Facilitate trade finance.

6. To meet these needs, existing DLTs have been
enhanced, and new ones have been created.
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From Scratch
New DLTs can be built
from the ground-up, sharing
concepts but having their
own unique design.
Reuse
A number of new DLTs
were build based on existing
designs or frameworks.
Soft Fork
Changes that are backwards
compatible; nodes only need
to update if they want new
features.
Create New DLTEnhance Existing DLT
Hard Fork
Changes that require nodes to
update. If some nodes do not
change, the DLT may split
into separate networks.

7. What makes one Distributed Ledger
Technology different from another?
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2

8. New DLTs include additional or enhanced
features, such as:
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Transaction Capacity and Speed Smart Contract Capabilities
Native Currency and Tokens Access Controls and Data Privacy
Node Operator Incentives Intangible Factors

9. Transaction Capacity and Speed
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“Left over” transactions must try
again according to the same rules
Newly submitted transactions
wait to be included in a block
How much stuff is allowed in one block? Can
we make the blocks more space-efficient? This
defines the maximum transaction capacity.
Which transactions take priority
when blocks are full? Can be based
on fees, wait time, or other factors.
How often will blocks be signed?
This dictates the expected time to
confirm transactions.
Faster block timing and larger blocks provide quicker
confirmations and more transaction capacity.
Faster and bigger blocks make for a larger ledger over time,
and may allow for wasteful or malicious transactions.
If block capacity is limited, rules are
applied to decide which are included

10. Smart Contract Capabilities
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Where and how is
contract code executed?
How bad is it if someone
makes a mistake?
What programming languages can
be used to write contract code?
What functionality is available?
More capability means that distributed apps for the DLT
can be more complex and potentially serve broader needs.
Simpler smart contract implementations may be more
secure and may lower development cost and risk.
Parties enter in to the contract by
sending transactions to it.
Contract is submitted
to the blockchain
Contract code is created based on the
intended agreement or functionality

11. Native Currency and Tokens
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Security Tokens represent
ownership of an asset or investment
Utility Tokens enable use of a
specific decentralized application
Non-Fungible Tokens are all
unique from one another
Including features to make token creation and
management easier may encourage use of the platform.
Built-in features may not cover more complex needs. In
other cases, a native token may be all that is needed.
Native Tokens are built in to the
DLT and available to all users.
Fungible Tokens are all identical and
interchangeable (e.g. ERC20 tokens)
App Tokens are defined by
smart contracts.

12. Access Controls and Data Privacy
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Anyone Restricted
PublicPrivate
Whocanseethedata?
Who can use the DLT network?
For some use solutions, control over access and data
visibility is an essential requirement.
Open access and public visibility enable DLT platforms to
serve as a versatile public resource.

13. Node Operator Incentives
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Proof of Work (Mining)
Nodes “mine” for the solution to
a cryptographic puzzle. Rewards
are according to the amount of
computing power being applied.
Proof of Stake
Operators “stake” (deposit)
cryptocurrency on their nodes
and receive rewards based on
the amount.
Proof of Work is the most proven node incentive system,
but requires expensive hardware and electricity.
Alternate incentives may avoid the power demands of
mining, but may be less secure.
“Proof of Node”
Users must operate one or more
nodes in order to access services
on the DLT network.
.

14. Intangible Factors
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Development Organization & User Community
Use Cases
Promotion, Awareness, Momentum
Maturity
Distributed Ledger Technologies need a critical mass of
users, and these intangibles can make a big difference.
Beware of projects that appear to strong in these areas but
do not have a viable platform available for use.
(Do you really need a blockchain?)

15. What’s next?
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16. The future for Distributed Ledger Technologies is
exciting, but uncertain.
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Early Days
Things are still evolving
quickly, and most current
technologies are not fully
ready for broad use.
Be Skeptical
There are lots of great ideas
out there, but also lots of
bad or malicious ones. Do
your homework before you
dive in.
Embrace Uncertainty
Expect to be right about
some predictions &
assumptions, and wrong
about others. Anticipate
the unexpected.
Expect Resistance
Not everyone wins with
blockchain solutions.
Middlemen and others who
are impacted will actively
resist change.

17. Chuck Bair, Partner
Thanks!
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