Blockchain The protocols and concepts underpinning the hype

Matthew Griffin - Blockchain Analyst & Trainer

Agenda

●  Bitcoin 101 ●  Centralisation/Decentralisation ●  Key insight of Bitcoin ●  Blockchain 101 ●  Business Use Cases & Discussion

Bitcoin 101

Digital Programmable Money

Digital Programmable Money Transactions

Digital Money

Digital Money

Physical Money seldomly changes hands in our system

One centre of control

A little bit more fragile than you would expect..

Digital Money

Digital Money

In 1999, Sharing of Digital Music propagated throughout the world

Digital Money

Digital Money

The marginal cost to duplicate a digital good approximates zero, so when they become a part of a P2P-network, the scarcity was

eliminated and they propagate to everyone in the network

Digital Money

Now with scarcity - built in

Digital Money

Digital Money

●  Create a ledger of account that is not owned or controlled by anyone

●  Existing on a peer-to-peer network ●  Using cryptography to enforce the accuracy of the balance

Think … really big shared spreadsheet

Think … really big shared spreadsheet

But the magic is that only “PERSON A” can only EVER transfer out of that balance of bitcoin

Why?

●  Completely Decentralised ●  User Controlled ●  Powerful and Flexible in its use ●  Can represent more than just “money”

Blockchain 101

https://

Internet Protocols

SMTP

VoIP

Path of Disruptive Technologies

Institutions -------> Platforms --------> Protocols

{#} Post ---------> Google -----------> SMTP

Telco ---------> Skype -----------> VoIP

Bank ---------> Bitcoin ----------> Blockchain

Defining features of a Blockchain

A data structure so secure it can be made public where altering a copy of the data has no effect & records can only be appended, never deleted or

updated

Underpinned by a peer to peer protocol that strictly enforces validity and consensus prior to writing data

Think … really big shared spreadsheet

Think … really big shared spreadsheet

●  Single Source of Truth ●  Its Programmable ●  It can hold valuable data ○  Balance of bitcoins.. ○  But also things like, your identity?

Single Source of Truth

There's only one place in which contains the balances of bitcoin… the bitcoin blockchain

Must Agree to the transaction

You can send a transaction that has

additional logic attached

Programable

If then that logic

Hold Data

Holds Data

Person C

Gives another person the “KEY” to that encrypted data

Holds Data

Business Models & Opportunities

Problem.. Reconciling all that data is hard

●  Use a Blockchain to - ●  Create a Single Source of Truth ●  Audit Trail for Reconciliation

Air Bnb ..

●  When you start to think of AirBnb core features as... ●  Manages Payments ●  Stores Reputation of different parties

Air Bnb ..

Air Bnb ..

Data is controlled by the user

●  The owner of the data controls it ●  Blockchains don’t rely on a central repository ●  We can put data on a blockchain and having clever ways

around how to permission who can access that data

Data is controlled by the user

●  For the tourism industry … ○  Lots of data exists about guests ○  Most is aggregated and centralised and then packaged

as a service ○  A blockchain may enable you to hold onto custody of

the data you put into those services

Data is controlled by the user

●  For your guests ○  Instead of you surveying and holding data about your

guests ○  That data might exist on a blockchain ○  And they give you permission to view it

Matthew Griffin matthew@blockchainlabs.nz