Decentralizing Everything with BlockchainDavid PaluySep 2017

Double Entry Bookkeeping

Alice wants to send Bob $100

Alice asks Trent (Bank) to send $100 to Bob

Double Entry Bookkeeping

-$100+$100

Momentum accounting or triple-entry bookkeeping

“...changes in balances are the recognized events”

1989

Alice sends Bob $100

Shared Ledger

Distributed Ledger (Shared Ledger)

Distributed Ledger is a consensus of replicated, shared, and synchronized digital data

geographically spread across multiple sites.

Distributed Ledger (Shared Ledger)

There is NO central administrator or centralised data storage

Blockchain

Blockchain - Database and transaction processing

Bitcoin

The first real implementationof the Blockchain technology

decentralized platform that runs smart contracts

Ethereum

Smart Contract - Programmable Money

Each transaction may have a set of rules (smart contract) that govern what and how money is delivered.

dApp ~= App

ERC-20 Token Standard

Basic standard for new Tokens on Ethereum network

ICO - Initial Coin Offering

In an ICO campaign, a percentage of the cryptocurrencyis sold to early backers of the project in exchange forother cryptocurrencies (Bitcoin and/or Ether)

ICO ~= IPO

ICOs have raised more than $1.3 billion so far in 2017

Coindesk, Aug 2017

What exactly are these tokens?

“Tokens give the holder a right to participate in a given blockchain activity”

Token benefits

1. Token can be an alternative to traditional equity-based financings2. Token can be bought by anyone3. Liquidity improvement4. A new business model: better-than-free5. Instant custody without intermediaries

Is it Legit?

ICO Whitepaper

Token buyers are buying Private Keys

Tokens = Equity

If advertised, as a way to share in the profits of the company

Blockchain Hurdle

1. Difficult to understand2. Difficult to use3. More difficult to use securely4. Cultural change5. Trusting mathematics protocol is never been acceptable6. Users should trust themselves to keep their keys secured

Blockchain needs

● Better applications● Better security● Better user interface

Blockchain will transform the technology tomorrow