BCHGraz - Meetup #8 - Intro & Ethereum
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The document details the eighth meetup of BlockchainHub Graz held in February 2017, which aimed to connect participants interested in blockchain technology, share updates about Bitcoin and Ethereum, and discuss new projects and regulations. Key highlights include discussions on Bitcoin ETF developments, real-time cross-border transactions via SWIFT's gpi project, and the differences between Bitcoin and Ethereum, specifically regarding scalability, consensus mechanisms, and smart contracts. Additionally, the document provides insights into emerging technologies and concepts like payment channels, sharding, and the importance of community engagement in the blockchain space.
BCHGraz - Meetup #8 - Intro & Ethereum
- 1. BlockchainHub Graz Meetup #8 BlockchainHub Graz■ Thomas Zeinzinger■ Feb. 27, 2017
- 2. Thomas Max Sandra Tom Didi Shermin Jean-Luc Hannes # Not-For-Profit # Translate Blockchain to Non Techies # Connect various Networks and Organizations
- 3. Get to know each other Find yourself a buddy! My name is “_____”, and I am interested in “_____”. I am a: 1. Blockchain Tech newbie 2. Blockchain Tech intermediary 3. Blockchain Tech expert I am here to: 1. Find someone who explains Blockchain Tech to me 2. Socialize 3. Talk about a project 4. Search for investments 5. …
- 4. Collective ... getting things started So – who was first? Money Collective Project
- 5. Collective Communication Interested in the “lab10 collective“ or the “BlockchainHub“ – shoot a message to graz@blockchainhub.net stating the e-mail address you would like to be invited with.
- 6. Meetup – BlockchainHub Graz NEWS
- 7. Bitcoin Unlimited vs. Segwit NEWS Status: 20.02.2017 Activation threshold is ≥1916 blocks (95% of last 2016 blocks)
- 8. Winklevoss brothers seek to launch ETF (Exchange Traded Fund) NEWS Today ETF investors can only access bitcoins through a small allocation in the ARK Web x.0 ETF (ARKW), which obtains its exposure through publicly traded shares of Grayscale’s Bitcoin Investment Trust (OTCQX: GBTC). If launched, COIN would list on Bats, which owns ETF.com. Next decision by SEC: March 11th, 2017 100 Mill. $
- 9. Swift reveales “real-time” x-border transactions NEWS As part of the formal rollout, Swift (or the Society for Worldwide Interbank Financial Telecommunication) revealed that 12 of the world's largest banks have been conducting real- time transactions via its Global Payments Innovation (GPI) project for some months. As of early this morning, initial GPI users – a group that includes the Bank of China, BBVA, Citi, ING Bank and Standard Chartered – will have conducted "tens of thousands of transactions" between 60 country corridors, Raymaekers said. Instead of rebuilding Swift's cross-border payments infrastructure from scratch, the GPI has been constructed as a set of business rules encoded on top of the existing infrastructure with an eye to increasing speed, transparency and the traceability of transactions. On top of those rules, Swift has further created a transaction tracking mechanism supported by cloud computing, with a graphical user interface designed to show exactly where a payment will be, should it get held up. • Faster, same day use of funds • Transparency of fees • End-to-end payments tracking • Remittance information transferred unaltered
- 11. Ethereum News Dubbed Enterprise Ethereum, the project's founding membership is said to include major financial institutions, tech giants and natural resources companies. According to sources, participating firms include JP Morgan, CME Group, BNY Mellon, Banco Santander, Microsoft, Red Hat, Cisco, Wipro and British Petroleum, among others. Blockchain startups BlockApps, Brainbot Technologies, ConsenSys, Nuco and Tendermint – as well as the Ethereum Foundation, the non-profit that oversees its code creation – are also said to be involved. NEWS
- 12. ... a little bit of history 1997: Adam Back proposed “hashcash“ incorporating proof-of-work to limit e-mail spam and denial-of-service attacks. 1998: Wei Dai created “b-money“, Nick Szabo created “Bit Gold“ and Hal Finney developed “RPOW”. All these cryptocurrencies used hashcash as their proof-of-work algorithm. 2004: BitTorrent emerged – it is the most used Peer-2-Peer file sharing communication protocol with approx. 250 million users per month. 2008: Bitcoin was introduced by Satoshi Nakamoto (identity unknown) with a paper called “bitcoin: A Peer-to-Peer Electronic Cash System”. 2009: The first open source bitcoin client went live and mining of bitcoins started. By definition there are only 21 million Bitcoin (BTC) possible. 2013: Ethereum was first described by Vitalik Buterin: “Ethereum: A Next-Generation Cryptocurrency and Decentralized Application Platform”
- 13. Bitcoin “Depending on your point of view, you could see some problems with Bitcoin.” • Block Time high variation, 10 min. average • Finality very long lead time, 6 blocks • Consensus - PoW security vs. waste of energy • Governance long consensus time, e.g. Segwit vs. BU • Extensibility very tough, scripting language • Scalability limited by protocol, ~ 280 kTx per day
- 14. Bitcoin – Ethereum Comparison Block Time High variation, average 10 min. High variation, average 15 sec. Finality 6 block confirmations, ≈ 60 min. 12 (25) block confirmations, ≈ 3 (6) min. Consensus PoW, energy waste for security PoW for distribution, Plan: transition to PoS Governance slow decisions, conservative actively developed, leadership Scalability 3 Tx/s, Plan: payment channels 15 Tx/s, Plan: payment channels, sharding Extensibility hard, simple scripting language simple, smart contract + EVM
- 15. Web 3.0 Platform
- 16. Ethereum – Devcon 0 / Berlin 2014
- 17. Ethereum Software Release Dates Source: http://decentral.ca/wp-content/uploads/2016/03/infographic.jpg
- 18. Basic Differences Ethereum vs. Bitcoin Ether Ether – Main purpose: • Cryptocurrency to run the state machine of Ethereum • Cryptocurrency traded on exchanges
- 19. Basic Differences Ethereum vs. Bitcoin Accounts Externally Owned Accounts (EAOs) simple „Accounts“ State: Balance Contract Accounts simple „Contracts“ State: Balance & Storage State Objects • has an ether balance, • can send transactions (ether transfer or trigger contract code), • is controlled by private keys, • has no associated code. • has an ether balance, • has associated code, • code execution is triggered by transactions or messages (calls) received from other contracts. • when executed - perform operations of arbitrary complexity (Turing completeness) - manipulate its own persistent storage, i.e., can have its own permanent state - can call other contracts
- 20. Basic Differences Ethereum vs. Bitcoin Smart Contracts Smart Contracts are: Ø pre-written logic, Ø stored and replicated on a blockchain, Ø executed/run by a network of computers Ø and can result in blockchain updates If blockchains give us distributed trustworthy storage, then smart contracts give us distributed trustworthy calculations. Source: https://bitsonblocks.net/2016/02/01/a-gentle-introduction-to-smart-contracts/
- 21. Basic Differences Ethereum vs. Bitcoin GAS Messages • Inter-contract communication • Messages are triggered by Transactions (defines GASPRICE) • STARTGAS applies for the transaction and all subsequent computations Transactions • Signed Message from EOA (Externaly Owned Accounts) • Signature Sender / Address Recipient / Ether transferred • STARTGAS - is the amount of ”GAS" that the transaction assigns itself • GASPRICE - is the fee that the transaction pays per unit of gas Attention: Insufficient STARTGAS à pay miner / no state change
- 22. Basic Differences Ethereum vs. Bitcoin • “GAS“ limit defines transactions per second • Adjustment of “GAS“ limit with every block • Also used to counteract DDoS attacks Bitcoin Ethereum GAS limit can increse by 1+1/1024 with every block and in the early olympic testnet it reached around 25tx/s. Live View: https://ethstats.net/ Source: http://ethereum.stackexchange.com/questions/3308/how-do- i-compare-the-scalability-capabilities-between-ethereum-and-bitcoin
- 23. Basic Differences Ethereum vs. Bitcoin Consensus: GHOST Protocol The modified GHOST (Greedy Heaviest-Observed Sub-Tree) of Ethereum tackles two problems by including stale blocks: • Network Propagation Time • Miner Centralization GHOST Protocol: http://www.cs.huji.ac.il/~avivz/pubs/13/btc_scalability_full.pdf 122 Source: https://genius.com/Ethereum-ethereum-whitepaper-annotated 123 124 125 126 A 123 124 B
- 24. Basic Differences Ethereum vs. Bitcoin Mining Ethash (Dagger – Hashimoto) • ASIC-resistance • Light client verifiability Source: https://github.com/ethereum/wiki/blob/master/Dagger-Hashimoto.md Mining Block Reward • 5 ETH/Block • 1/32 of Block Reward for every Uncle Block (max. 2) • All ETH for transactions and EVM computation Uncle Block Reward • 7/8 of Block Reward à 4.375 ETH/Block
- 25. Basic Differences Ethereum vs. Bitcoin Inflation Source: https://bitsonblocks.net/2016/10/02/a- gentle-introduction-to-ethereum/
- 26. Basic Differences Ethereum vs. Bitcoin Merkle Patricia trees provide a cryptographically authenticated data structure that can be used to store all (key, value) bindings. Merkle Patricia Tree Source: https://github.com/ethereum/wiki/wiki/Patricia-Tree
- 27. Bitcoin – Ethereum Comparison Block Time High variation, average 10 min. High variation, average 15 sec. Finality 6 block confirmations, ≈ 60 min. 12 (25) block confirmations, ≈ 3 (6) min. Consensus PoW, energy waste for security PoW for distribution, Plan: transition to PoS Governance slow decisions, conservative actively developed, leadership Scalability 3 Tx/s, Plan: payment channels 15 Tx/s, Plan: payment channels, sharding Extensibility hard, simple scripting language simple, smart contract + EVM
- 28. Block Time, Finality & Consensus: Proof-of-Stake (Casper) Proof-of-Work (Ethash) Proof-of-Stake (Casper) (1) Source: https://motherboard.vice.com/en_us/article/bitcoin-could-consume-as-much-electricity-as-denmark-by-2020 Bitcoin Pessimistic Szenario: 14 Gigawatts of electricity by 2020 (1) Casper tackles following issues: • Energy Wastage • Security • Speed Casper wants to solve problems with “crypto economics”: • 'nothing-at-stake' problem • 'long-range-attack' problem • 'bounding the griefing factor' problem • 'repeated signing of finalized blocks'
- 29. Extensability: Example – ERC 20 Token Can represent any asset, e.g. local currency, voucher, 1 hour worth of baby sitting, promise for a crowd funded product, insurance policy, event ticket, … Token standard ERC-20 Smart contract can implement features like: multi-party issuance control, asset freezing rules, dependency on events in the real world, ...
- 30. Scalability: Raiden (Payment Channels) Developed by Brainbot Technologies AG, Berlin Scalable: it scales linearly with the number of participants (1,000,000+ transfers per second possible) Fast: Transfers are confirmed and final within the fraction of a second Confidential: Single transfers don’t show up in the global shared ledger Interoperable: Works with any token that follows Ethereum’s standardized token API Low Fees: Transaction fees can be 7 orders of magnitude lower than on the blockchain Micro-payments: Low transaction fees allow to efficiently transfer tiny values Raiden is implemented as an extension to Ethereum. A Raiden node runs alongside an Ethereum node and communicates with other Raiden nodes to facilitate transfers and with the Ethereum blockchain to manage deposits. It offers a simple API which makes it easy to use Raiden in DApps.
- 31. Scalability: Raiden (Payment Channels) Source: Lefteris Karapetsas - https://www.youtube.com/watch?v=JuVP4iDVkoQ&feature=youtu.be&list=PLaM7G4Llrb7wPiT2G75tj2JQr8qg6P5hi • All balances are updated off-chain. • Bidirectional – Two deposits • Settlement is comprised of two netted balances • Each participant tracks both balances
- 32. Scalability: Blockchain Sharding Known concept Tradeoff: Security vs. Cost Distributes the distributed database
- 33. Exploring Ethereum - Statistics 50 kTx/d 4 Mill Gas Limit Feb. 24th, 2017 Source: https://etherscan.io/charts Approx. 23*109 Wei = 23*10-9 Ether
- 34. Exploring Ethereum - Statistics https://ethereumwisdom.com/ https://etherchain.org/ https://www.ethernodes.org https://ethstats.net/
- 36. Use Cases – Ethereum Smart Contracts INSURANCE MESSENGER IDENTITY Today we demonstrate the following Ðapps: SOCIALMEDIA