Blockchain Ho How Sol olvin ing an Unsolvable e Problem In Inspires In Innovation Be Beverly ly Proh ohaska IT T Co Cons nsult ltant and and Form ormer CIO CIO
Blockchain is the Tech. Bitcoin is merely the first mainstream manifestation of f its potential. Marc Kenigsberg, Founder of Bitcoin Chaser
What is Blockchain and why do we need it? What is Blockchain? Blockchain, or digital ledger technology (DLT), allows digital information (also called transactions) to be distributed but not copied . This means that each individual piece of data can only have one owner . Why do we need it? Digital transactions take place every second of every day — orders, payments, account tracking and much more. Often, each participant has his own system (digital ledger) — and, thus, a version of the truth that may differ from other participants. These multiple ledgers can be a recipe for error, fraud and inefficiency. But because members on a blockchain share a common view of the truth , it’s now possible to see all details of a transaction end-to-end, reducing those vulnerabilities.
Blockchain History ry
The Blockchain Revolution Tamper-proof + Digital fingerprint + Decentralized Encryption = Consensus-based Security Transends borders Single Ledger = Cryptography = one- Reduced Complexity to-one verification Increased Speed No transaction can Improved scalability happen twice
Bitcoin will do to banks what email did to the postal industry. Rick Falkvinge, Founder of the Swedish Pirate Party
The First Majo jor Application The first major application of Blockchain technology was Bitcoin, which was released in 2009. Bitcoin is a cryptocurrency and the Blockchain is the technology that underpins it. Cryptocurrency refers to a digital coin that runs on a Blockchain. Fast Facts about Bitcoin: • It is not issued by a central authority • There is a limit of 21 million • Currently over 17 million are in circulation • The first transaction is widely believed to be carried out by a programmer named Laszlo Hanyecz, who spent 10,000 bitcoin on two Papa John’s pizzas in 2010
Cry ryptocurrencies – Top Ten Today Pric rice in in USD Source: bitinfocharts.com/top-cryptocurrency-list.html
Cry ryptocurrencies Market Visualization Pric rice & Mar arket Tracker Source: Coin360
Cry ryptocurrency Buying and Selling Usi sing a a Sm SmartPhone • Choose an Exchange • Download a Wallet App • Signup & Verify Your Identity • Complete Account Setup • Verify Your Phone Number • Add a Bank Account • You’re Ready to Buy Some Crypto • Check Current Prices • Make Your First Purchase!
Understanding the technology
How Does Blockchain work? Source: IBM.com/Blockchain/What-is-blockchain?
What Makes Blockchain Better? Source: IBM.com/Blockchain/What-is-blockchain?
How can Blockchain Reshape Business and Government? Blo lockchain can do for busin iness what the In Internet did id for communication Gin Ginny Rom ommety, CE CEO IBM IBM Source: IBM.com/Blockchain/What-is-blockchain?
How Solving an Unsolvable Problem inspires In Innovation.
Blockchain will be the Solution Where there is is la lack k of trust The “Freelancer” Problem: There are real trust issues on the part of both the companies who hire them and the freelancers who do the work. They must rely on the “good faith” in one another or on the middleman who takes a fee. What Blockchain Offers: Apps such as Moonlighting provide a platform for freelancers and companies who hire them. Blockchain integration allows for smart contracts and more rapid payments , thereby eliminating the middleman and extra fees.
Blockchain will be the Solution Where the in incumbents are in inefficient The “Pharma” Problem: The length of time and the cost that it takes to get a drug to market is two to three times as much as other industries. In many cases, the extra time is due to a lack of patients in the trial process. What Blockchain Offers: Blockchain can create and store unique identities for patients enrolled into a trial, preventing them from enrolling in multiple trials at the same time. In addition, by securely sharing data on the Blockchain across trial sites, investigators can access the latest results and discover new ways to collaborate in real time.
Blockchain will be the Solution Where there are monopoli lies The “Real Estate” Problem: Real estate information is currently centralized and prone to manipulation between stakeholders. This increases the potential of inaccurate sharing of information. What Blockchain Offers: Blockchain offers a decentralized and open property market database where information is published by the public rather than a central body. This separation enables independence and provides transparency around the validity of property data.
Blockchain will be the Solution Where there are in inequit itie ies in in access The “Ride Share” Problem: Uber disrupted the taxi industry by providing a lower-cost alternative to price- fixing of taxi fares by locale. What Blockchain Offers: Instead of putting the taxi driver out of a job, Blockchain puts Uber out of a job and lets the taxi driver work with the customer directly, again removing the middleman.
Blockchain will be the Solution When there is is nothing The “Voting” Problem: The manual voting problem is time-consuming, expensive, and subject to delays and inaccuracies. What Blockchain Offers: Votes that are stored on the Blockchain network are protected by encryption, ensuring one to one traceability from the voter to the ballot . This also could enable voting to be conducted on a smart device, which saves time and public resources. Last, votes are processed efficiently and accurately, and results published in a timely manner. Remember the Flo Florida re recounts?
Maybe I’m just too old , but I’m going to let this mania go on without me. Jeffrey Gundlach, DoubleLline Capital CEO and Chief Investment Officer
Hurdle: Cybersecurity How will ill all ll data be protected? 51% Attack: If more than half of the mining hash rate (compute power) is controlled by a malicious party , they get to choose what transactions go through. Why it matters: For hackers, the key beauty of permissionless blockchains is anyone can run a node & small cryptocurrencies can be brought down with adequate manpower and financial resources. This is partly the reason for the Bitcoin community’s worry about Chinese domination; they control approximately 45% of hash power.
Hurdle: Legal Complexities How will ill ju juris isdic iction be establi lished? Jurisdictional Issues: Blockchain based transactions could arguably be subject to the jurisdiction and laws of every country where a node is physically located . This creates a mess of laws and regulations (potentially conflicting) that would apply to transactions on the blockchain which muddies legal disputes and drives up costs associated with litigating them. Why it matters: Resolution of disputes will be more complicated as issues relating to jurisdiction, liability, and enforcement with respect to transactions occurring on a decentralized system are much more complex than with standard transactions.
Hurdle: Privacy How will ill personal priv ivacy be protected? The privacy paradox: Most blockchains are public ledger systems and there are certain applications with private data that cannot legally be stored on a public blockchain. This is ironic because data is more secure on a distributed storage system. Why it matters: Consumers are not comfortable with this application yet, and laws prevent this for certain types of data such as financial or health data, or any personal data that could be subject to GDPR in Europe .
Hurdle: Adoption How will ill ris isk k be mit itig igated? Legacy Institutions: There are a lot of third parties making significant amounts of money from the infrastructure currently in place. These middle men include credit bureaus, banks, processors, security services, consultants, associations, etc. Why it matters: Asking people to change the way they do business and cut out their trusted advisors is a big task. Entire industries are built around the need to provide guidance and assurance for large, service-based industries.
Whereas most technologies tend to automate the workers on the periphery ry doing menial tasks, , blockchains automate away the center. Vitalik Buterin, co-founder of Ethereum and Bitcoin Magazine
Turning Blockchain into a S Super Power • Private Blockchain : Allows only a preselected group of people to maintain the integrity of the ledger. It can empower businesses to be more intuitive in the way they manage IoT devices. • AI : Integrating machine learning to the blockchain can efficiently power the blockchain in a cost- effective way. • Big Data : Data quality and security would be enhanced as the blockchain is versatile enough to handle any information that can be digitized.
What Does the Future Hold? • Widespread Distributed Data Models • DLT-based Government Systems • Need for Credible Crypto Backing • Open Standard to allow Collaboration • Ultimate Transparency across Industries • Blockchain-based Security Measures • Continued Blockchain Maturation and Strength
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