Main takeaways: -Intro to blockchain concepts, public/private keys, signing transactions, wallets, -Product challenges unique to blockchain -Metamask and other tools that people currently use to interact with the Ethereum blockchain -Common design and product considerations when making a blockchain product

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8. Yev Spektor
TONIGHT’S SPEAKERS

9. Creating a
Blockchain
Product
(on Ethereum)
Dec 5, 2018
Yev Spektor

10. What is
blockchain?
Immutable, decentralized
data store & computation
provider
Blockchain creates and
enforces trust between
parties

11. When to use blockchain?
● A database is needed
● The database has multiple writers
● You don’t trust all of the writers
● You don’t want a trusted intermediary

12. Why blockchain now?
● Bitcoin proved blockchain distributed systems are possible
● Native features of blockchain not feasible otherwise
○ Decentralized
○ Always on
○ Self sustaining
○ Immutable
○ Threat-resistant

13. About Yev Spektor
Technology Strategy, Application, and Product Consultant
CTO
Real Estate
Investment Platform
Researcher
Blockchain
Math/Econ
Research Firm
Cofounder
Technology
Consulting
Firm
byg.io

14. Terms & Definitions
Public Key
Publicly visible account identifier. Also called an address. Eth public keys
look like 0x212Ecb7Caf81dF3895cE71d9030F3D55Dc4A3613
Private Key
Secret code used to sign transactions
Transaction (Tx)
A message typically consisting of a “to” and “from” address, value (Eth), and
optional data. A transaction can be used to send Eth or to call smart
contract functions.

15. Terms & Definitions
Transaction Fees/Gas Fees
Every transaction that affects the state of the blockchain has fees required to
process it. Fees are paid in Eth.
Signing a Tx
Cryptographic process that encodes a transaction with a private key. This
process is used to prove sender and authenticity of a transaction.
Wallet
An application (web, offline, hardware) used to manage keys and sign
transactions

16. Terms & Definitions
Smart Contract
A blockchain “program” containing functions that can be called. Able to hold
Eth and tokens
Blockchain Explorer (etherscan.io)
Website to view all Ethereum transactions and blocks. Used to check status of
transactions

17. Terms & Definitions
MainNet/TestNets
MainNet uses real Eth, TestNets use fake Eth. There are various TestNets.
Each net is its own isolated blockchain.
Distributed Application (DApp)
A web, mobile, or desktop application that interacts with the blockchain
Web3
Javascript Framework that allows apps to interact with the Ethereum
Blockchain

18. Blockchain <--> Dapp Interaction
Server
Client
(JS)
Web3
Provider
Eth Node Blockchain

19. https://www.cryptokitties.co/
Cryptokitties Demo

20. We’re in the early days
Blockchain is slow and limited
Not user friendly
Current State of Affairs

21. Blockchain Products
● Blockchain has unique challenges related to Product
● Blockchain PMs will require deeper technical expertise
● PMs & Designers must work and deal with the technical
peculiarities of blockchain

22. Blockchain Product Challenges
● User Education
● Transaction Fees
● Key Management
● Transactions must be signed
● Mining Time & Verification

23. User Education
● Know your app’s average user
● They have no knowledge of tx’s, public/private keys, etc
● Most will not even have an account
● Key Management

24. TX Fees (gas)
● Calling smart contract functions costs TX Fees (Eth)
● Purchasing Eth is not straightforward and can take over a
week
Coinbase account → bank transfer → purchase eth → transfer eth

25. TX Fees (Solutions)
● Airdrop Eth (expensive, will likely be abused)
● Limited workaround - Reading from the blockchain for free, ie
checking a token balance

26. Key Management
● Private Keys must be kept secure
● Solutions
○ Store keys on server
○ Hardware Solutions/integrations
○ Software Wallets
○ Web3 Browsers and browser extensions

27. Signing Transactions
● Transactions must be signed by a user’s private key
● Solutions
○ Can store user’s private key on server (security risk)
○ Build wallet functionality into app front-end (will need to
ask user for the private key)
○ Rely on metamask or other web3 enabled browser

28. Mining Time
● Once a transaction is broadcast it must be mined
● Mining on Main Net can take 30 seconds to several minutes
● Higher TX fees = Faster mining
○ Product should recommend fees for users
● Depending on level of security, you may need to wait for
confirmations
○ # of confirmations = # of blocks built since TX

29. Metamask
● Google Chrome Extension & Ethereum Wallet
● Turns Chrome into a web3 browser
● Provides key management and signs transactions
● Acts as a layer between a web app and the blockchain
● [Demo]

30. Takeaways
● Basic blockchain concepts and functionality
● Common blockchain caveats and product challenges

31. Advice
● Don’t be afraid to explore new ways to solve problems
● This space is growing and evolving at a unbelievable rate
● Go talk to Blockchain companies!

32. Thank you!
@_yev_yev_yev
@yev_yev_yev
@yev_yev_yev

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