What is blockchain
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Blockchain is an incorruptible digital ledger that can record transactions of value such as financial or other transactions. It transitions trust from entities to trust in an algorithm through cryptography, blockchains, and consensus algorithms. This allows for decentralized trust and even anonymous transactions. Blockchain has evolved from cryptocurrencies like Bitcoin to include smart contracts on platforms like Ethereum that allow many use cases across private, consortium, and public networks. It could revolutionize how we think about concepts like money, organizations, social networks, and trade.
What is blockchain
- 1. What is Blockchain Why a Trustless Trust Algorithm can Change the World
- 2. Revolution Started After the 2008 Financial Crash Bitcoin the first Blockchain based decentralized crypto currency was designed by Satoshi Nakamoto in 2009. His identity is still unknown. “The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” Don & Alex Tapscott, authors Blockchain Revolution (2016)
- 3. Trustless Trust Transition from Trusting an Entity to Trusting an Algorithm. Now we can even transact anonymously.
- 4. Centralized Trust to Trustless Decentralization Trust is built into the design through Cryptography, Blockchains, Consensus & Proof-of-work Algorithms. Source: IBM
- 6. Blockchain Evolution First Generation Bitcoin, ZCash (new): Cryptocurrencies 1.5 version Colored Coins : Multiple cryptocurrencies on same network Second Generation Ethereum, Chain, Hyperledger: Smart Contracts Many Blockchain networks for specific use cases. Private, Consortium and Public Networks.
- 7. Rethink Everything Rethink Money Rethink Firms & Organizations Rethink Social Networks Rethink Trade (P2P, B2B)
- 8. Rethink Money Money is an artificial instrument to : Store Economic Value Measure Economic Value (Accounting Unit) Transfer Economic Value USD will LOSE VALUE SWIFT & VISA are implementing Blockchains
- 9. Rethink Organization Firms and Organization are a group of individuals who have opted to come together, centered around an economic activity, to create an economic value greater than the sum of the individual contributions. Borderless Communities governed by DAO
- 10. Rethink Social Networks and Trade Blockchain enabled truly unmediated and secured transactions between two or multiple entities governed and enforced by Smart Contract algorithms powered by Cryptocurrencies . Aggregators are the Potential Road Kills: Amazon, Flopcart, Ebay, Facebook, Uber, OLA
- 11. All is Well? First Generation Problems: Mt. Gox, Dark web, Ranson wares, Silk road, Money laundering... Multiple blockchain economic offenders arrested. Less than 1000 entities (mostly Chinese) control 60% of Bitcoins. Next Generation Frauds: Ethereum DAO hijack. DDOS attack. Both resulted in hard forks.
- 12. It’s Time to Rethink!