what is blockchain - tieke

Lohkoketju / Blockchain���

Bisnestreffit ���TIEKE ���

@juhaviitala

11th November 2016

Testimonials

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”Technology likely to have the greatest impact on next few decades has arrived”

- Don Tapscott

“The blockchain is the most important invention since the Internet itself”

- Mark Andreessen

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PC Era

Semiconductor Technology

Internet Era

TCP/IP Protocol

Mobile Era

Supercomputer In Your Pocket

Blockchain Era BlockchainProtocol

Technology eras

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1995 vs. 2015

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Press

History

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The genesis block of shared distributed ledgers

Bitcoin: A Peer-to Peer Electronic Cash System

Satoshi NakamotoSat, 01 Nov 2008 16:16:33

I’ve been working on a new electronic cash system that’s fully Peer-to-peer, with no trusted third party.

The main properties:

•  Double-spending is prevented with a peer-to-peer network.

•  No mint or other trusted parties.

•  Participants can be anonymous.

•  The proof-of-work for new coin generation also powers the network to prevent double-spending.

The paper is available at: http://www.bitcoin .org/bitcoin.pdf

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Value proposition

+ embedded trust

10 factors of Blockchain

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Shared Ledger Single source of truth

Immutability Tamper proof

Distributed No single point of failure

Cryptography PKI, SHA256

Auditable Prove identity & ownership

Automation Autonomous,

Machine to machine

Uniqueness No double spending or

entries

Digital assets Record depository

Authentication Every action is authenticated

Validity Continuous system self &

Cross checking

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Distributed Ledger

A digital ledger that keeps a record of all transactions taking place on a peer-to-

peer network

Smart Contract

Business terms embedded in transaction database & executed with transactions

Consensus All parties agree to network

verified transaction

Privacy Ensuring appropriate

visibility, transactions are secure, authenticated &

verifiable

Blockchain main components

It is decentralized so there is no single point of failure and no need for any central authority

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A distributed ledger is network that records ownership through a shared registry

In contrast to today’s networks, distributed ledgers eliminate the need for central authorities to certify ownership and clear transactions. They can be open, verifying anonymous actors in the network, or they can be closed and require actors in the network to be already identified. The best known existing use for the distributed ledger is the cryptocurrency Bitcoin Source: https://www.ft.com/ Financial TImes

Clearing House

Distributed ledger technology

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•  Private key: Ø  Digital signature Ø  Allows spending •  Public key: Ø  Allows signature verification Ø  Represents the wallet address •  Transactions are published in the blockchain

mechanism Decentralized control

Low latency Flexible trust Asymptotic security

Proof of work

Proof of stake

Byzantine agreement

Tendermint

maybe maybe

Transaction

Owner 1’s Public key

Owner 0’s Signature

Hash

Owner 1’s Public key

Transaction

Owner 2’s Public key

Owner 1’s Signature

Hash

Owner 2’s Public key

Transaction

Owner 3’s Public key

Owner 2’s Signature

Hash

Owner 3’s Public key

Cryptography & consensus

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Traditional contracts Smart contracts

1-3 Days

Manual remittance

Escrow necessary

Expensive

Physical presence (wet signature)

Lawyers necessary

Minutes

Automatic remittance

Escrow may not be necessary

www.pwc.com/us/en/technology-forecast/blockchain/digital-business.html

Virtual presence (digital signature)

Lawyers may not be necessary

Smart contracts

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Public / Private blockchain

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Miten lohkoketju toimii

http://www.tekniikkatalous.fi/paivan_lehti/digimaailman-kivitaulu-6589399

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Financial Institutions International payments

Corporates Governments Cross-industry

Capital markets

Trade finance

Regulatory compliance & audit

Anti-money laundering & know your customer

Insurance

Peer-to-peer transactions

Supply chain management

Healthcare

Real estate

Media

Energy

Record management

Identity management

Voting

Taxes

Government & non-profit transparency

Legislation, compliance & regulatory over sight

Financial management & accounting

Shareholders voting

Record management

Cybersecurity

Big data

Data storage

Internet of Things

Potential Blockchain Use Cases

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Future technologies

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@juhaviitala

https://fi.linkedin.com/in/juhaviitala