Webinar: Hype and hope of Blockchain - Dino Esposito
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Dino Esposito discusses the complexities and misconceptions surrounding blockchain technology at the blockchain & crypto values conference in Milan. He highlights that while blockchain promises decentralization and security, it often faces scalability issues and is not the universal solution it is marketed as, particularly in various business domains like finance and healthcare. Esposito argues that the hype surrounding blockchain tends to overshadow the real needs for flexibility and efficiency in existing IT infrastructures.
Webinar: Hype and hope of Blockchain - Dino Esposito
- 1. BLOCKCHAIN & CRYPTO VALUES CONF | June 14 - Milan The Hope and the Hype of Blockchain Dino Esposito
- 2. Dino Esposito Corporate Digital Strategist BaxEnergy https://twitter.com/despos https://linkedin.com/in/dinoesposito
- 3. “A horse. A horse. My kingdom for a horse.” King Richard the Third, William Shakespeare
- 4. “A block. A block. My kingdom for a block in the chain.”
- 5. The hottest buzzword of 2017 BLOCKCHAIN Neither a technology nor a product
- 7. Same Trigger? Money Success Stability Change of life Whatever but QUICK
- 8. Bitcoin success created an aura of magnetic mystery around Blockchain Use of Blockchain advocated in business domains ❑ Finance, healthcare, supply-chain, identity, education, energy
- 9. WHAT IS BLOCKCHAIN, EXACTLY? Linked list of blocks A block is a group of ordered transactions A transaction is a collection of information ❑ Atomic ❑ Consistent ❑ Integer ❑ Durable
- 10. Immutable, append-only, distributed A new type of database
- 12. BLOCKCHAIN FACTS Created to solve specific Bitcoin problems ❑ Decentralized storage of financial transaction outcomes ❑ Avoid double-spending of digital money ❑ Clear breakthrough for the cryptocurrency space Information replicated on all nodes of the network ❑ Maintains full history of assets in the node Update operations subject to consensus ❑ Necessary to ensure transactions are synced up across the network
- 13. Decentralization is the magic word! No single point of failure No single authority to trust Immutable status of facts
- 14. ISSUES of DECENTRALIZATION What if the database gets corrupted? ❑ Development issues—must work right the first time and forever ❑ Any fix requires the coordination and consensus of all actors Actors must validate but must be rewarded for it ❑ Incentive system is tough to design ❑ It must be effective to ensure data is consistent and coherent Costs of operations ❑ Thousands of copies to stay in sync
- 15. Centralized vs. Decentralized Consistency and reliability are far cheaper in a centralized system Control of users is much easier in a centralized system ❑ Including misbehaving users Backward compatibility must be a certainty (in any case)
- 16. Costs of Scalability Same data kept in hundreds or thousands of places than in a single place Transmission, verification and storage overhead Vertical scalability of a distributed system!
- 17. VS
- 19. Finance Energy Supply chain Healthcare THE INDUSTRY Long overdue IT upgrades
- 20. Upgrading IT is Hard and Expensive Blockchain is an attempt to sugarcoat the (real) IT bill Blockchain doesn’t fit the use-cases it is pushed for ❑ Hard to update whereas all industry needs is freedom and flexibility to change and expand to seize business opportunities
- 21. Not a breakthrough Blockchain is a storage paradigm It’s not something you download and install Applications to use this storage paradigm ❑ Highly inefficient compared to centralized storage Different from what was Internet 20 years ago
- 22. What if I want to use it, anyway?
- 23. BAIDU Trust Oracle Blockchain Cloud Service IBM Blockchain Service Microsoft Azure Blockchain SAP Blockchain Service
- 24. Four core modules ❑ Distributed ledger, consensus, membership, smart contracts Permissioned and private Consensus at transaction level only involving parties Smart contracts written in Go and Java Maintained by The Linux Foundation Hyperledger Fabric Modular and extendable, generic Blockchain platform
- 25. Explicit purpose of recording business agreements among registered financial institutions Permissioned and private Consensus at transaction level only involving parties Smart contracts written in Kotlin and Java ❑ Contracts contain legal prose Maintained by R3 Corda Specialized distributed ledger for financial industry
- 26. Generic Blockchain platform Permissioned and permissionless Consensus via proof-of-work ❑ All participants have to agree upon a common ledger ❑ All participants have access to all entries ever recorded Smart contracts written in Solidity Maintained by community of developers Ethereum Decentralized platform to run smart contracts
- 28. 1. A software engine defines the Blockchain algorithm and the ad hoc marketplace 2. Software is distributed in a networks of nodes 3. A portion of the software will also monitor access to the power grid 4. Prosumers and consumers get an account to the marketplace app 5. Prosumers have an IoT device that monitors what’s been produced and receives signals from the marketplace to start/stop 6. Prosumer’s device generates tokens of energy to be produced 7. Prosumer’s device places SELL orders to the marketplace via the app for tokens of energy 8. Consumers place BUY orders to the marketplace via the app 9. The marketplace matches orders and stores results permanently 10. The database of the marketplace is shared across the network Using Blockchain in the energy space
- 29. IoT device Ad hoc cloud Upload to the cloud Domestic consumption Domestic production Production forecasts Weather forecasts Price forecasts Algorithmic decision P2P energy trading
- 30. Do we really need a Blockchain for this?
- 31. Ever used DocuSign? It could have been Blockchain but it’s not.
- 32. E-commerce Nobody did it until Internet became a commodity IoT Nobody did it until smart devices became affordable ??? Nobody did it until Blockchain became affordable BREAKTHROUGH
- 33. Identity ❑ One global digital identity owned by everyone Health ❑ Medical records can be shared across countries and hospitals Education ❑ Certificates, immutable and certain, held and shared across companies Property ❑ Whether land or intellectual, property is a contract globally valid
- 34. Fight corruption? Fight fraud? Fight costs of intermediation? Fight costs of financial operations? Fight costs of figuring out identities? World Economic Forum https://www.weforum.org/communities/the-future-of-blockchain
- 35. “Most of the time, Blockchain is a solution waiting for a problem.” https://www.youtube.com/watch?v=uaYfD6_xX30
- 37. BLOCKCHAIN & CRYPTO VALUES CONF | June 14 - Milan