April 2011: 1BTC = 1USD April 2011: 1BTC = 1USD February 2018: 1BTC - PowerPoint PPT Presentation

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo FROM BITCOIN TO THE BLOCKCHAIN presented by Roberto Capodieci – 15 th March 2018 for the Business Information Industry Association Regional Meeting – March 14th to 15th, 2018 Sofitel Phnom Penh Phokeethra Hotel, Phnom Penh, Cambodia

April 2011: 1BTC = 1USD April 2011: 1BTC = 1USD February 2018: 1BTC = 10’000USD February 2018: 1BTC = 10’000USD

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo IS EVERYONE EXCITED ABOUT BITCOIN ?

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo BITCOIN IS SCARY , BLOCKCHAIN IS SEXY !

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo SOMEONE NOTICED THIS BLOCKCHAIN EUPHORIA IN THE NEXT FEW MINUTES I WANT TO EXPLAIN WHY WE ALL SHOULD BE VERY EXCITED ABOUT BLOCKCHAIN TECHNOLOGY

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo WHY BLOCKCHAIN IS SO SEXY?

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo BLOCKCHAIN IN PRACTICAL TERMS: EXAMPLE 1

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo BLOCKCHAIN IN PRACTICAL TERMS: EXAMPLE 2 2009 2009 - IDR 500.000 2010 2010 - IDR .............. BTC 55 - 2011 2011 - IDR .............. ........... - 2012 2012 - IDR .............. ........... - 2013 2013 - IDR .............. ........... - 2014 2014 - IDR .............. ANGELINA ANTONIO ........... - 2015 2015 - IDR .............. 2010 2008 ........... – 2016 2016 - IDR .............. ........... - 2017 2017 - IDR .............. BTC 55 - 2018 2018 - IDR 0

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo SO, WHAT IS MAGIC ABOUT BLOCKCHAIN ?

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo AS CONTENTS AND ASSETS ARE BECOMING DIGITAL THE BLOCKCHAIN AND ITS DERIVATIVES WILL BE THE TECHNOLOGY OF CHOICE USED TO MANAGE THEM

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci DAPPS EXAMPLES ON NXT A decentralised application platform

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo ALL THE PREVIOUS APPLICATION RUN ON A BLOCKCHAIN! A blockchain functions as a decentralized database accessible by everyone, that is managed by computers belonging to a peer-to-peer network, where no computer is more important than any other.

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo HOW DOES THE BLOCKCHAIN WORK ?

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo WHAT DOES THE BLOCKCHAIN GUARANTEE? • TRUTH: Removes the need to trust others • PRIVACY: Brings encrypton to the hands of the common user • TOKENIZATION: Allows to assetise goods and sell them • REPUTATION: Allows to create reputation on digital identities • IDENTITIES: Cryptographic signatures on agreements • DELEGATION: Ease job assignments on a distributed team • ESCROW: ease financial transactions • AUDIT: A very effective and secure accounting system

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci BLOCKCHAIN What is it?

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci … SO, WHAT IS A BLOCKCHAIN? • It is essentially a chain of blocks of data kept in a distributed system. • Blocks of data contain instructions sent by the users. • Instructions are executed ONLY if they follow the pre-established rules. As with many new words the meaning of “blockchain” change on a daily basis. • In basic technical terms the blockchain is a P2P system where each node: • makes sure to be always up to date with the network, • makes sure the other nodes behave properly, • process the instructions received using the rules coded in the consensus layer, • votes on correctness of data, transactions results, and network, • stores the data necessary for the system to function.

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo IN SUMMARY , THE BLOCKCHAIN: Guarantees with mathematic security the uniqueness of a title (digital asset)

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo IN SUMMARY , THE BLOCKCHAIN: Is the only publicly available system to timestamp digital assets

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo IN SUMMARY , THE BLOCKCHAIN: Removes the need to depend on others, and trust others, to manage ownerships of titles (digital asset), with 24/7 availability

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo IN SUMMARY , THE BLOCKCHAIN: Uses cryptography (mathematics) for signatures and identities (a special kind of digital asset)

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo IN SUMMARY , THE BLOCKCHAIN: Allows electronic devices to identify themselves (have a digital identity) and create unique content.

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo THE FUTURE OF BLOCKCHAIN IN GOVERNMENTS Blockchain will lead to substantial improvements in transparency, speed, and functionality, as well as cutting the costs of managing private and public records.

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo BLOCKCHAIN BASICS The 4 elements of a Blockchain: • Peer to Peer network • Cryptography • Data management • The consensus system

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo DOWNSIDES OF A P2P NETWORK - COMPARISON: CENTRALIZED SYSTEMS TRANSACTION ORDERING C 10:02 B 10:01 D A 10:03 10:00 Transactions: A: 10:00 B: 10:01 C: 10:02 D: 10:03 In a centralized system there is a unique and clear order and timing for transactions

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo DOWNSIDES OF A P2P NETWORK - COMPARISON: UNKNOWN ORDER OF TRANSACTIONS A 10:00 Transactions: A: 10:00 A: 10:01 B: 10:04 B: 10:03 A: 10:02 B: 10:02 B Transactions: B: 10:01 The Nodes may have the transactions 10:01 listed in a different order and timing A: 10:03

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo Roberto Capodieci WHAT ARE SMART CONTRACTS? • Conditional transaction • Lightweight computer code • Executes when requested • Needs “GAS” to run

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo REGULATION Blockchain itself is a technology (like cloud computing) and can’t be really regulated. Only particular business application can be regulated (like putting private data of the bank customers to the cloud). In case of blockchain, the biggest challenge is to define the rules, risks and responsibilities of each party in a decentralized environment.

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo OPERATING SYSTEMS: ELASTOS SMARTWEB IS A WEB OF APPS AND DAPPS . WE ARE CREATING AN OPERATING SYSTEM FOR THE SMARTWEB. SAFETY Applications are forbidden from directly accessing the network. The elastos operation library provides end-to-end solutions. INTELLIGENCE Totally decentralized P2P economic infrastructure reduces the need for humans as intermediaries. WEALTH elastos authenticates digital rights, transfers contracts, and turns digital information into assets through blockchain technology.

Roberto Capodieci - r@bcz.ooo - http://bcz.ooo QUESTIONS & ANSWERS Roberto Capodieci +62 822 62226666 (Telegram Preferred) roberto.capodieci@blockchainzoo.com Consultant on Blockchain , big data, and LI for LEAs