blockchain for notaries

BLOCKNOTARYPATRICE KERREMANS & DANILA SMOLKO

INTRO

THE TEAM

Danila Smolko Patrice Kerremans

Geert Vermeiren Pat(rick) Boens

TEXT

▸ Bitcoin & Blockchain (including Payment Demo)

▸ Ethereum

▸ Hyperledger

▸ Smart Contracts (including cases)

▸ Notary impacts (including cases)

SHORT INTRODUCTION

https://www.youtube.com/watch?v=YIVAluSL9SU

Bitcoin is the tip of the Ice berg

The blockchain can be used for any property transaction

The Blockchain is the single source of truth

It is distributed and doesn’t require middlemen

It is virtually unhackable due to this distributed nature

SUMMARIZED

INTERNET

MOBILE

CLOUD

BLOCKCHAIN

BITCOIN & BLOCKCHAIN

A PURELY PEER-TO-PEER VERSION OF ELECTRONIC CASH [WHICH] WOULD ALLOW ONLINE PAYMENTS TO BE SENT DIRECTLY FROM ONE PARTY TO ANOTHER WITHOUT GOING THROUGH A FINANCIAL INSTITUTION.

2008 - Satoshi Nakamoto - whitepaper

INTRODUCTION OF THE BITCOIN CONCEPT

THE BLOCK CHAIN IS …

A chain of blocks (duh!)

Blocks containing transactions and referencing previous blocks…

Genesis Block

THE TIMES 03/JAN/2009 CHANCELLOR ON BRINK OF SECOND BAILOUT FOR BANKS

BitCoin Genesis Block’s Coinbase Parameter

THE FAMOUS BITCOIN GENESIS BLOCK

SOLVING A VERY DIFFICULT PUZZLE

PROOF OF WORK

Find a hash that starts with a number of leading zeros

The acting of searching for this nonce is called mining

The first miner to find this nonce is rewarded new bitcoins that are created by adding a Coinable Transaction to the block.

Coinbase Transaction = reward

Regular Transactions

MINERMINER

PARTY

PARTY

PARTY

PARTYA

C

0000000000e304476c788cd474fb579a

TEXT

FINDING THIS APPROPRIATE HASH = MINING Find the hash with enough zeroes = mining

MINING BITCOINS

THE ALGORITHM ADAPTS TO MAKE MINING ONE BLOCK TO TAKE APPROXIMATELY

10 MIN

WHAT IS BLOCKCHAIN

NOT CENTRALIZED, NOT DECENTRALIZED, DISTRIBUTED

Every node in the network has a full copy of the entire blockchain

TEXT

THE BLOCKCHAINDistributed No central, nor decentralized power(s) has control over the

system

Immutable means that something is unchanging over time or unable to be changed

Traceable Since all transactions are timestamped and linked to previous transactions they can be traced & audited

public / pseudo anonymous Anyone can join the blockchain and use it to submit transactions. No KYC -yet- so some privacy

Crypto-key based extremely secure

Smart Contracts promising technology

WALLET

THE PLAYERS

U

BLOCK CHAIN

WALLET PROVIDER

WALLET PROVIDER

WALLET PROVIDER

COIN EXCHANGE

COIN EXCHANGE

U

U

WALLET

Users can have their wallet managed at a wallet provider and then buy and sell Coins via a Coin exchange (typically for a fee)

Some exchanges all serve as wallet providers

User can exchange Coins in their managed wallet with other users

User can also manage their own wallets in their own devices (but then the user needs to manage their private keys as well)

MINER

MINER

MINER

MINER

PAYMENT DEMO

II € €

THE BYZANTINE GENERALS PROBLEM

THE PROBLEM EXPLAINED

A1 and A2 have not yet agreed on a attack time

A2 only attacks if A1 attacks and vice-versa

A1 nor A2will perish if they attack B alone

A1 and A2 can only send messages with messengers that have to go through the valley

RULESOf the Fight

GENERAL IMPOSSIBILITY: IN GENERAL, NO SOLUTIONS WITH FEWER THAN 3M+1 GENERALS CAN COPE WITH M TRAITORS

SOLUTION

NAKAMOTO ALGORITHM

by having a large enough amount of generals (miners) fight (mine) a heavy terrain (puzzle) should begged enough a deterrent for traitors (hackers)

OTHER BLOCKCHAINS

ETHEREUM

ETHEREUM

BETTER THAN BITCOIN (?)▸ In Ethereum the block time is set to twelve seconds compared to Bitcoins 10 minutes. This allows for faster transaction times. Ethereum does this by

using the Ghost protocol.

▸ Ethereum has a slightly different economic model than Bitcoin – Bitcoin block rewards halve every 4 years whilst Ethereum releases the same amount of Ether each year ad infinitum.

▸ Ethereum has a different method for costing transactions depending on their computational complexity, bandwidth use and storage needs. Bitcoin transactions compete equally with each other. This is called Gas in Ethereum and is limited per block whilst in Bitcoin it is limited by the block size.

▸ Ethereum has its own Turing complete internal code... a Turing complete code means that given enough computing power and enough time... anything can be calculated. With Bitcoin there is not this form of flexibility.

▸ Ethereum was crowd funded whilst Bitcoin was released and early miners own most of the coins that will ever be mined. With Ethereum 50% of the coins will be owned by miners in year five.

▸ Ethereum discourages centralized pool mining through its Ghost protocol rewarding stale blocks. There is no advantage to being in a pool in terms of block propagation.

▸ Ethereum uses a memory hard hashing algorithm called Ethash that mitigates against the use of ASICS, and encourages decentralised mining by individuals using their GPU’s.

https://www.cryptocompare.com/coins/guides/why-is-ethereum-different-to-bitcoin/

CRYPTOCURRENCY

ETHEREUM’S CURRENCY IS CALLED

ETHER

HYPERLEDGER

HYPERLEDGER (OR THE HYPERLEDGER PROJECT) IS A CROSS-INDUSTRY COLLABORATIVE EFFORT, STARTED IN DECEMBER 2015 BY THE LINUX FOUNDATION, TO SUPPORT BLOCKCHAIN-BASED DISTRIBUTED LEDGERS. IT IS FOCUSED ON LEDGERS DESIGNED TO SUPPORT GLOBAL BUSINESS TRANSACTIONS, INCLUDING MAJOR TECHNOLOGICAL, FINANCIAL, AND SUPPLY CHAIN COMPANIES, WITH THE GOAL OF IMPROVING MANY ASPECTS OF PERFORMANCE AND RELIABILITY.

wikipedia

HYPERLEDGER

R3 (R3CEV LLC) IS A BLOCKCHAIN TECHNOLOGY COMPANY. IT LEADS A CONSORTIUM OF 45 FINANCIAL COMPANIES IN RESEARCH AND DEVELOPMENT OF BLOCKCHAIN USAGE IN THE FINANCIAL SYSTEM.

wikipedia

R3

COMPARISON

COMPARISON

HyperLedger Ethereum BitcoinDescription General Purpose

BlockchainGeneral Purpose

BlockchainTransactions Blockchain

Governance Linux Foundation Ethereum Developers Bitcoin Developers

Currency none Ether Bitcoin

Mining Reward none Ether Bitcoin

Consensus Network Pluggable Mining Mining

Network Private or Public Public or Private Public

Privacy Open to Private Open Open

Smart Contracts Multiple Programming languages

Solidity Programming Language Not baked in

SMART CONTRACTS

Firm A Firm B

SMART CONTRACT

IF (CONDITIONS ARE MET) THEN EXECUTE THESE TERMS

The use of code and a blockchain to execute logic if certain conditions are met.

Execution is not “forgotten”, it is automatic.

No discussion about the conditions or terms, since code is unambiguous.

You still need lawyers to make sure the rules are properly defined.

Faster and cheaper.

THE PHRASE "SMART CONTRACTS" WAS COINED BY LEGAL THEORIST COMPUTER SCIENTIST NICK SZABO IN 1994*

wikipedia

SMART CONTRACTS

* the idea was around since the 70s, though

SMART CONTRACT TEMPLATES

A DECENTRALIZED AUTONOMOUS ORGANIZATION THAT IS RUN THROUGH RULES ENCODED AS COMPUTER PROGRAMS CALLED SMART CONTRACTS. A DAO'S FINANCIAL TRANSACTION RECORD AND PROGRAM RULES ARE MAINTAINED ON A BLOCKCHAIN

wikipedia

DAO - DECENTRALIZED AUTONOMOUS ORGANIZATION

COULD THE BITCOIN NETWORK BE USED AS AN ULTRA-SECURE NOTARY SERVICE?

YES!*

* but mainly for proof of existence, not for all notary services…

ADDING A COMMENT TO THE BLOCKCHAIN

OP_RETURN

80 CHARACTERS

ADDING A “DOCUMENT” TO THE BLOCKCHAIN

C35AD8A76CF51E00E6E3DADAE01712C7DDCFF83CA7125D1D3BB

2A8D7A57B10CD

21/09/2016

TEXT

GHANA - BITLAND

Ghana Blockchain Cadastral Land Registration Registry Technology 2016 by NGO Bitland: ‣ Investigate the issued land title (land commission of Ghana)

‣ Survey the land (real estate)

‣ Confirm the land-title validity (talk to nearby neighbours).

‣ Record the property GPS coordinates with a GPS device

‣ Submit the collected data and information into the Blockchain ledger

‣ Issue a paper certificate to the rightful property owner

TEXT

BLOCK NOTARY AN TIERON

▸ Sending a picture to the blockchain and receiving a receipt for it.

BLOCK NOTARY

UPROOV.COM

LOVE AND MARRIAGE…

TEXT

WHAT DOES LEARN US?

STARTUPS

START-UPS

TEXT

MORE STARTUPS, DIFFERENT VIEW

BANKS & FINANCIAL SERVICES PLAYERS

BANKS