Blockchain 101

 
blockera103
 

What is Blockchain?

  • A decentralized or distributed ledger that verifies transactions
  • These ledgers are shared and synchronized among participants of the blockchain network
  • All participants in the network have a copy of the blockchain
  • Blockchains can be Public or Permissioned
 

Public vs. Permissioned

Public

  • Analogous to the global internet, open to anyone
  • No privacy but fully immutable
  • No single point of failure

Permissioned

  • Analogous to corporate intranets, permissioned access
  • Provides privacy at cost of security
  • Easier to scale
 
How do systems compare?
 

A Chain of Blocks

  • Blockchains consist of a chain of "blocks"
  • These blocks store transaction data that are in a specific order
  • Transactions can represent money, assets, information, etc.
  • Each new block contains a summary or "hash" of the previous block
 
chainblocks
 

Consensus Algorithms

  • Blocks are validated by participants in the network through computational power
  • Hashes link the next block
  • Conflicting transactions within a block create a different hash
  • Different hashes are kicked off the main chain by validators through consensus
 
consensus
 

What Does Blockchain Solve?

Double-spend problem is solved in a decentralized way

  • Opens the door for P2P transactions and distributed asset transfer systems

Transactions are immutable

  • Guarantees that transaction data can't change once submitted to the blockchain, increasing security of data

Transactions are verifiable

  • Anyone in the network can validate a transaction which prevents fraud
 

Trust Between Parties

  • Blockchains add the dimension of trust to data
  • Data that others can trust
  • This trust can create new value networks and break down information silos internally and externally
 

What Does Blockchain Mean for Business?

  • Saves time by eliminating reconciliation processes
  • Saves money by reducing or eliminating middleman
  • Reduces risk by providing immutable and verifiable data
  • Creates opportunities for new business models

 

adoption
 

Blockchain Adoption

  • 6 out of 10 large enterprises expect the technology to be integrated into their systems by Q4 2018
  • $1.2 Billion raised YTD by startups through blockchain token sales (August 2017)
 

Where Do You Go from Here?

  • Education
  • Find niche use-cases
  • Build prototypes
  • Keep learning
  • Be blockchain agnostic

Sources

"Blockchain basics: Introduction to distributed ledgers - IBM." 9 May. 2016, http://www.ibm.com/developerworks/cloud/library/cl-blockchain-basics-intro-bluemix-trs/index.html. Accessed 29 Aug. 2017.

"Ethereum: Blockchains, Digital Assets, Smart Contracts - Amazon.com." https://www.amazon.com/Ethereum-Blockchains-Decentralized-Autonomous-Organizations/dp/1523930470. Accessed 29 Aug. 2017.

"Distributed Publication | Distributed - Blockchains for Enterprise." https://distributed.com/publication/. Accessed 29 Aug. 2017.

"Initial coin offerings now surpass early stage VC funding - CNBC.com." 9 Aug. 2017, https://www.cnbc.com/2017/08/09/initial-coin-offerings-surpass-early-stage-venture-capital-funding.html. Accessed 29 Aug. 2017.

"Blockchain technology considered by 57% of big corporations: Study." 31 Jul. 2017, https://www.cnbc.com/2017/07/31/blockchain-technology-considered-by-57-percent-of-big-corporations-study.html. Accessed 29 Aug. 2017.

 

 

 

 
Kyle Tut