2018 Lunch & Learn Blockchain Overview
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The document discusses blockchain technology, its myths, and various applications including voting, supply chains, and smart contracts. It covers foundational concepts such as private key cryptography, hash functions, and consensus mechanisms like proof of work and proof of stake. Additionally, it addresses challenges to adoption and introduces tokenization as a method for creating liquid markets in digital media.
![Decentralized Application, or DApp—
"A highly structured computer-assisted
interpersonal interactive protocol
whose social contract has a well-known
and sufficiently high difficulty of
attack."
Aleksandr Bulkin, Coinfund [link]](https://image.slidesharecdn.com/2018adma-blockchainoverview-180821052303/85/2018-Lunch-Learn-Blockchain-Overview-41-320.jpg)
![Decentralized Application, or DApp—
"A highly structured computer-assisted
interpersonal interactive protocol
whose social contract has a well-known
and sufficiently high difficulty of
attack."
Aleksandr Bulkin, Coinfund [link]](https://image.slidesharecdn.com/2018adma-blockchainoverview-180821052303/85/2018-Lunch-Learn-Blockchain-Overview-56-320.jpg)
2018 Lunch & Learn Blockchain Overview
- 1. LUNCH & LEARN BLOCKCHAIN Daniel Dewar @danielkdewar
- 2. ABOUT ME ● Sound engineer / designer ● Big data / analytics (“Datalicious”)
- 3. “Blockchain is a technology that allows natively digital transfer of value.” Karl Kreder, co-founder of Grid+
- 4. BLOCKCHAIN MYTHS â—Ź Can't verify any data â—Ź Doesn't allow instant transactions â—Ź Isn't immutable â—Ź Isn't encrypted â—Ź Can't replace your servers
- 5. WHAT CAN BLOCKCHAIN BE USED FOR? â—Ź Voting â—Ź Public registries â—Ź Supply chains â—Ź Decentralized trading â—Ź Reconciliation Why? Eliminate institutions & intermediaries
- 6. CORE TECHNOLOGIES â—Ź Distributed network â—Ź Cryptography â—Ź Protocol (incentivisation)
- 8. DISTRIBUTED NETWORKS â—Ź Large network where validators (nodes) reach a consensus that they witnessed the same thing at the same time â—Ź Use mathematical verification â—Ź Size of the network is important to secure network
- 11. PRIVATE KEY CRYPTOGRAPHY Private Key: b13a1d831cd311673c4a2c04932b96d09326ec29dc8b885c5deb266c4f623656 Corresponding Public Key: 0x0FD20Bdce5F2072b89FD2099070BB4cD8cA18Aa3
- 12. PRIVATE KEY CRYPTOGRAPHY Goal of a digital signature is for anyone who receives a transaction/message to be able to confirm the person who wrote the message knew the corresponding private key
- 16. PRIVATE KEY CRYPTOGRAPHY To have a 1% chance of guessing a digital signature on the entire Bitcoin network would have to work together for: ~5,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000 years
- 17. CRYPTOGRAPHY > HASH FUNCTIONS ● Returns a string of characters of a fixed size from a dataset of an arbitrary size; ● They are deterministic; ● Small changes in the input changes the output; ● Quick to compute, “one-way functions”.
- 18. CRYPTOGRAPHY > SHA â—Ź SHA (Secure Hash Algorithm) published by US National Institute of Standards and Technology; â—Ź Most blockchains use either SHA or similar cryptographic hash functions; â—Ź Bitcoin uses SHA-256.
- 19. CRYPTOGRAPHY > SHA EXAMPLE “This is my password for this website.” = 5CC98B74EEC5440694DCB70C55AE60BDB227D3DC81A4A65193660DDED7E60A43
- 20. CRYPTOGRAPHY > SHA EXAMPLE “This is my password for this website” = 75ED430F31FADC17699A513A95FA3D21F413704AF08221657FD525DCE9C91483
- 21. CRYPTOGRAPHY > SHA EXAMPLE 75ED430F31FADC17699A513A95FA3D21F413704AF08221657FD525DCE9C91483 5CC98B74EEC5440694DCB70C55AE60BDB227D3DC81A4A65193660DDED7E60A43
- 22. CRYPTOGRAPHY > HASH FUNCTIONS â—Ź Allows to compare and validate passwords or private information without revealing the information to network.
- 23. â—Ź Each transaction has a number (hash of input variables); â—Ź Transactions are rolled up into blocks; â—Ź Hash generated for blocks; â—Ź Block input includes, previous block hash, transactions, miner address & random number. HASH FUNCTIONS ON BLOCKCHAIN
- 25. TRANSFER SENT TO NETWORK coindesk.com
- 27. HASH FUNCTIONS ON ACCOUNTS
- 28. HASH POINTING 28 1cd08afb9c196bec 347a4183668dd987 d1822af8a10167 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 55987e57bd010081 77f7377036664e73 3606fff6e6e5de Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 296bad123bcde8c8 89101cf3986df66da b81b578343332 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 14f71613fc675d00c bf20006c3b2328fb4 c8426720e665 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 5a7c9d18b7b97a12 0f3d4d3040260da5 4e074a5abbd6db Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 33b9d989d759c991 db657ac6356bd825 1942fd724bd241 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 259108061b9cc5 b0e36cdbcc28fa 75e60ae6fce7ea 4314ade8d292ac e805da43c001f4 cd81d42777456d 3052c5e2c185fa 655ae5f67a378c 6193f4b6ab1ea9
- 29. HASH POINTING 1cd08afb9c196bec 347a4183668dd987 d1822af8a10167 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 55987e57bd010081 77f7377036664e73 3606fff6e6e5de Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 296bad123bcde8c8 89101cf3986df66da b81b578343332 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 14f71613fc675d00c bf20006c3b2328fb4 c8426720e665 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 5a7c9d18b7b97a12 0f3d4d3412350975 54e074a5abbd6db Tx …. 00823b3 Tx … 390d1234t6 Tx … 4231400 Tx … 63432al7 33b9d989d759c991 db657ac6356bd825 1942fd724bd241 Tx …. 008ab3 Tx … 390dt6 Tx … 4fbs00 Tx … m32al7 259108061b9cc5 b0e36cdbcc28fa 75e60ae6fce7ea 4314ade8d292ac e805da43c001f4 cd81d42777456d 3052c5e2c185fa 655ae5f67a378c 6193f4b6ab1ea9
- 30. PROTOCOL â—Ź Network mining solves the incentivization problem â—Ź By offering your computer processing power to service the network, there is a reward available for one of the computers. â—Ź Self-interest is being used to help service the public need
- 31. PROTOCOL EXAMPLE - BITCOIN â—Ź Protocol eliminates double-spend â—Ź Nodes serving network create and maintain a history of transactions â—Ź When majority of miners arrive at same solution, new block is added. Block is timestamped.
- 32. Proof of Work ● Based on computing power ● Competition on who can solve first each block’s problem ● Fundamental chain structures are similar or derivative ● Differences in how network is mined (incentivized) BLOCKCHAIN Proof of Stake ● Creator of new block determined by wealth, or “stake” in network
- 33. Proof of Work ● Based on computing power ● Competition on who can solve first each block’s problem ● Fundamental chain structures are similar or derivative ● Differences in how network is mined (incentivized) BLOCKCHAIN Proof of Stake ● Creator of new block determined by wealth, or “stake” in network Goal is to make it unaffordable to hack the network
- 34. SMART CONTRACTS â—Ź Multi-functional code that governs protocol â—Ź Autonomy â—Ź Decentralized â—Ź Self-sufficiency
- 35. SMART CONTRACTS â—Ź Can create a tokenized asset â—Ź Asset can be coin or alternative currency â—Ź Can also represent real assets (land title, energy units, minerals, goods & services, record keeping)
- 36. Cryptocurrencies â—Ź Digitized currencies, encrypted through cryptography â—Ź Run on their own blockchains Tokens â—Ź Assets or utilities (represent coins, loyalty points, in-game assets) â—Ź Issued on blockchains (Ethereum, Waves, etc) CRYPTOCURRENCIES VS TOKENS
- 37. CRYPTOCURRENCIES
- 38. TOKENS
- 39. â—Ź Decouple from underlying cryptocurrency â—Ź Configure for behaviour and economic outcomes WHY TOKEN?
- 40. â—Ź Decentralization or disintermediation is a process targeted at entities not responsibilities â—Ź Network actors must assume responsibility TOKEN ENGINEERING
- 41. Decentralized Application, or DApp— "A highly structured computer-assisted interpersonal interactive protocol whose social contract has a well-known and sufficiently high difficulty of attack." Aleksandr Bulkin, Coinfund [link]
- 42. MEDIA LIQUIDITY, INVESTMENT RISK â—Ź 3-4 months average payment cycle â—Ź 10%-30% average cost of capital â—Ź -62% YOY media revenue growth due to high content investment cost
- 45. MEDIA REMITTANCE CYCLES SPOTIFY APPLE YOUTUBE DISTRIBUTOR LABEL Consumption event 45 DAYS 45 DAYS
- 46. MEDIA REMITTANCE CYCLES SPOTIFY APPLE YOUTUBE DISTRIBUTOR LABEL ARTIST ARTIST ARTIST 180+ DAYS45 DAYS 45 DAYS Consumption event
- 47. MEDIA REMITTANCE CYCLES SPOTIFY APPLE YOUTUBE DISTRIBUTOR LABEL ARTIST ARTIST ARTIST 180+ DAYS45 DAYS 45 DAYS MIN. 90 DAYS Consumption event
- 48. EXISTING SOLUTIONS â—Ź Credit cards â—Ź Loans â—Ź Invoice financing/factoring â—Ź Advance models How to connect media companies looking for finance options with investor market looking for alternative assets?
- 49. Tokenizing daily transaction data into tradable asset classes creates a liquid, global marketplace for digital media receivables MARKETPLACE Investor Media consumption data Investor Investor
- 50. MEDIA REMITTANCE CYCLES SPOTIFY APPLE YOUTUBE DISTRIBUTOR LABEL ARTIST ARTIST ARTIST MARKETPLACE 24-48 HOURS
- 51. PAPERCHAIN PROTOCOL Digital Asset Liquidity Protocol Marketplace Dapp TNFT TPX C Ethereum Proofs of Consumption Takers Makers Oracle APIs SuppliersUsers Application Layer Protocol Layer Data / Trust Layer Token / Incentive Layer Blockchain
- 52. â—Ź Prediction market â—Ź REP tokens used to incentivise knowledge contribution & outcomes â—Ź 2,000+ spot markets augur.net AUGUR
- 53. â—Ź Prediction market â—Ź REP tokens used to incentivise knowledge contribution & outcomes â—Ź 2,000+ spot markets augur.net AUGUR
- 54. Basic Attention Token (BAT) â—Ź Native Brave browser â—Ź Blockchain based digital advertising â—Ź BAT traded between publishers, advertisers and users basicattentiontoken.org
- 55. AdChain â—Ź adToken used to economically incentivise publisher domain registry (quality, data proofing) adtoken.com
- 56. Decentralized Application, or DApp— "A highly structured computer-assisted interpersonal interactive protocol whose social contract has a well-known and sufficiently high difficulty of attack." Aleksandr Bulkin, Coinfund [link]
- 60. â—Ź Metamask link run decentralized apps in browser without running full node IMPROVING ADOPTION HTML CSS JS WEB3.JS METAMASK
- 61. METAMASK
- 62. â—Ź ICO scams â—Ź Criminal activity â—Ź Scalability â—Ź Energy â—Ź Signal:Noise MEDIA COVERAGE
- 63. ICOs â—Ź Initial Coin Offerings â—Ź Pre-buy tokens to be used on DApps â—Ź Fundraising mechanism â—Ź $5.5bn raised in 2017
- 64. ICOs â—Ź Initial Coin Offerings â—Ź Pre-buy tokens to be used on DApps â—Ź Fundraising mechanism â—Ź $5.5bn raised in 2017
- 65. â—Ź Product & business principles still hold true â—Ź There is an end-user (or multiple) â—Ź Need to solve a problem STILL NEED TO SOLVE A PROBLEM
- 66. â—Ź Building violations registry â—Ź Document & content persistence â—Ź Identity NYC GOVERNMENT
- 67. â—Ź Bitcoin has been running for 9 years â—Ź $2bn in transactions with no central authority â—Ź Has never gone down â—Ź Has never been hacked IMPORTANT TO REMEMBER
- 68. â—Ź truffleframework.com â—Ź metamask.io â—Ź consensys.net â—Ź consensys.net/academy â—Ź tokenengineering.net RESOURCES
- 69. â—Ź coindesk.com â—Ź Tokendaily.co â—Ź the-blockchain.com â—Ź ccn.com â—Ź nulltx.com NEWS