Shape APAC Blockchain Workshop
- 1. Blockchain in Real Life! Nichanan Kesonpat @nichanank nichanank.com October 2018
- 2. • Types of blockchains • Unique properties & Use cases enabled Goals & Overview @nichanank • Distributed ledger • Decentralization • Cryptoeconomics Shared source of truth No single party is in control of the data What enables security in a trustless environment Foundations & Core Ideas What the big deal is • Cross-Industry use case primitives How might this be useful tomorrow
- 4. Transactions • “Blocks” of transaction data • Append-only (no edits or deletions) • Distributed ledger of past transactions • The older the block, the harder it is to manipulate • Observable, auditable @nichanank Questions? slido.com # shapeblockchain oldest most recent
- 5. @nichanank Questions? slido.com # shapeblockchain Exploring a public blockchain
- 6. @nichanank Questions? slido.com # shapeblockchain Exploring a public blockchain
- 7. What else can we do? @nichanank Questions? slido.com # shapeblockchain • CONDITIONAL transactions • Enforced by rules* on the blockchain • Transact to update the state of the world Old capability: P2P transactions Bob Alice 10 BTC New capability: P2P conditional transactions Bob Alice 10 BTC …IF it’s the first of the month, and the year is <2020
- 8. What else can we do? @nichanank Questions? slido.com # shapeblockchain • CONDITIONAL transactions • Enforced by rules* on the blockchain • Transact to update the state of the world • Updates recorded and can’t be changed (… what problems may arise from this?) ^ State: cash inserted State: item vended State: change given oldest
- 9. Consensus @nichanank Questions? slido.com # shapeblockchain oldest A most recent most recentoldest C oldest D most recent most recentoldest B
- 10. Consensus @nichanank Questions? slido.com # shapeblockchain oldest A most recent most recentoldest B most recentoldest C oldest D most recent
- 11. Because everyone has read and write access, we need to… @nichanank Questions? slido.com # shapeblockchain 1. Ensure that history cannot be tampered with 2. Incentivize people to secure and update the data
- 12. @nichanank Crypto… Questions? slido.com # shapeblockchain Questions? slido.com # shapeblockchain oldest most recent Each block is linked to the previous block using cryptography
- 13. @nichanank Why would someone want to be the one adding new blocks? Questions? slido.com # shapeblockchain
- 14. …economics! @nichanank align incentives to create a win-win situation GOAL when I do what’s good for me, I’m automatically also doing what’s good for the network Questions? slido.com # shapeblockchain oldest most recent New block wanted! Reward: 12.5 BTC a system of rewards for good behavior and penalties for malicious behavior …….
- 15. Code and economics intrinsically interlinked @nichanank Questions? slido.com # shapeblockchain
- 16. Ways to achieve cryptoeconomic consensus @nichanank …and many more! Proof of Work * Mining * A difficult task * Energy Intensive * Rewards: block rewards & fees * Penalties: wasted energy Delegated Proof of Stake * Delegate voting power to someone * Rewards: depends * Penalties: delegates’ locked up tokens are slashed Proof of Stake * “Lock up” an amount of tokens * Rewards: gain transaction fees * Penalties: locked up tokens are slashed Questions? slido.com # shapeblockchain
- 17. @nichanank Public Private Consortium (hybrid) Types of Blockchains Anyone can: * Observe & Perform transactions * Good for: Disintermediation of current business models The owner can: * Perform and validate transactions internally * Intra-business * Control read/write permissions * Good for: ??? Internal database management, auditing, and company-related processes “Traditional centralized system with cryptographic auditability” A pre-selected group can: * Gain permission to read, write to, observe the blockchain * Inter-business * Good for: communication between companies, with the option to limit access Questions? slido.com # shapeblockchain
- 18. • SHARED: multiple stakeholders relying on the same data to be a “source of truth” • TRUSTLESS: parties can transact without needing to trust that others will behave • DECENTRALIZED: no central trusted authority to execute various transactions • SECURE: cannot be brought down or hacked • IMMUTABLE: timestamped, cannot retroactively manipulate data — “unchangeable” Desired Features (?) @nichanank Questions? slido.com # shapeblockchain
- 19. Do I really need a blockchain? Which type? @nichanank Questions? slido.com # shapeblockchain
- 20. Unique features of the blockchain give rise to a set of cross-industry use case primitives @nichanank Questions? slido.com # shapeblockchain
- 21. Use Cases at a Glance * Global network for payments * Borderless currency * Remittences * Financial Inclusion * “The Internet of Value” * Asset Tokenization and Tracking * Various industry use cases * Savings * Digital Gold * Scarcity —> “Hard Money” * Hedge against government instability, hyperinflation, corruption Store of Value Distributed LedgerMethod of Payment @nichanank Questions? slido.com # shapeblockchain
- 22. Cross-Industry Use Case Primitives • Identity/Reputation • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset tokenization @nichanank Questions? slido.com # shapeblockchain Key Themes * Disintermediation * Sovereignty * Transparency
- 23. • Identity/Reputati on • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset tokenization Cross-Industry Use Case Primitives + Proof of Identity + “Portable” reputation + Certificate Authentication + Credential Issuance @nichanank Questions? slido.com # shapeblockchain
- 24. Cross-Industry Use Case Primitives Problems tackled Document tampering Fraudulent claims Double financing + Ensure ethical trade + Shared visibility of records + Audit trail + Added accountability @nichanank • Identity/Reputation • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset tokenization Questions? slido.com # shapeblockchain
- 25. Cross-Industry Use Case Primitives • Identity/Reputation • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset tokenization +collect, hold, and conditionally release money or documents once an agreement is satisfied @nichanank Questions? slido.com # shapeblockchain
- 26. Cross-Industry Use Case Primitives • Identity/Reputation • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset tokenization + asset preservation + predictable monetization + low volatility @nichanank Questions? slido.com # shapeblockchain
- 27. Cross-Industry Use Case Primitives • Identity/Reputation • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset tokenization + adjudication + dispute resolution + token curated registries @nichanank Questions? slido.com # shapeblockchain
- 28. Cross-Industry Use Case Primitives• Identity/Reputation • Document Registry • Escrow • Stable Assets • Electronic Voting • Asset Tokenization The ability to represent any kind of physical asset as a digital asset. + easy trading/exchange + real-time settlement (if purely digital) + transparency + tracking: NFC, RFID, sensor-driven IoT Provable Existence Provable Authenticity Provable Ownership @nichanank Questions? slido.com # shapeblockchain
- 29. • Blockchain is not the answer to everything • Use cases are still being tested • User experience is key to mass adoption • Consensus is hard • Many opportunities to get involved • Keep learning! In closing… @nichanank Questions? slido.com # shapeblockchain
- 30. ~ WORKSHOP ~
- 31. Blockchain Design Workshop Three parts: * Understand core concepts and real world use cases that are enabled by the technology * Identify opportunities to address inefficiencies and problems in current centralized systems in various domains * Present potential solutions, discuss further implications with the group
- 32. Part I: Ecosystem & Stakeholder Mapping Who are the stakeholders involved? * Stakeholder 1 * Stakeholder 2 * Stakeholder 3 * ….. How do the stakeholders interact with each other? Identify a trust-loop to focus on, what are the specific transactions that occur? Intermediary Provider Consumer Problem to address:
- 33. Part II: Stakeholder Motivations & Journey Author Reade r Content publishe r Create content Find audience Get paid Build reputation Gather feedback before publishing Needs: fair compensation, accreditation, accurate representation, audience reach Onboard new contributors Curate/edit content Publish content Compensat e contributors Needs: monetization, grow user base, increase site traffic Discover new content Digest content Share/reco mmend Needs: truthful material, relevant content, good UX, discover topics of interest Subscribe to publications
- 34. Part III: Issues & Opportunities Are there misalignments of motivation and incentives throughout each step? Are there room for potential mistakes or misuses of power by the intermediary? Clickbait content Fake reviews Irrelevant/a nnoying ads Author uncredited Bad reader exp. Author not fairly compensated Plagiarized content Issues Opportunities Portable reputation Digital IP User-curated lists Monetize based on reads/views/s hares Verified author Reduce fake reviews Publishers’ site goes down How might we tackle these issues with the use case primitives?
- 35. Part IV: Design & Evaluate potential solution Desired outcome Integration with other platforms Open QuestionsImplications & Potential Risks Author Reader Direct monetization Verifiable accreditation Content portability Ability to opt in/out Relevant content Good UX Identity Reputation Document registry Asset Tokenization Escrow Solution: Offensive content?
- 36. Identity Reputation IP Registered Revenue Distribution Escrow New stakeholder interaction Author Reader Advertisers Publishers Freelance opportunities Purchase rights to publish content Content Revenu e Ad revenue