why how what - the blockchain
TRANSCRIPT
@sdwouters
THE BlockchainWHY HOW WHAT
@sdwouters
Into Bitcoin since 2013
Digital Transformation Consultant at Duval Union Consulting
Sam Wouters
@sdwouters
One of many disruptIVE PLAYERS
@sdwouters
Who has heard of Bitcoin before today?
@sdwouters
“bitcoin is digital money”
@sdwouters
Positive image?
Who has heard of Bitcoin before today?
@sdwouters
Negative image?Positive image?
Who has heard of Bitcoin before today?
@sdwouters
Who fundamentally understands Bitcoin?
Negative image?Positive image?
Who has heard of Bitcoin before today?
@sdwouters
Media that predicted the death of Bitcoin
bitcoinobituaries.com
@sdwouters
Who has heard of Bitcoin before today?
Negative image?Positive image?
Who owns bitcoins?Who fundamentally
understands Bitcoin?
@sdwouters
“We’re trying to make laws for something we don’t understand”
@sdwouters
Banks try to skip learning about Bitcoin
@sdwouters
Nearly all of them are investing in Bitcoin’s technology, the Blockchain
@sdwouters
WHY does the
Blockchain exist?
@sdwouters
HOW does it work?
WHY does the
Blockchain exist?
@sdwouters
WHAT can we do with it?
HOW does it work?
WHY does the
Blockchain exist?
@sdwouters
WHY does the
Blockchain exist?
@sdwouters
How it began in 2008: a financial systemwithout “trusted” third parties
bitcoin.org/bitcoin.pdf
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Banks built the most complex system in the world
*Insert image of global financial system*
@sdwouters
Why do bank transfers take days?
@sdwouters
Why can’t we use microtransactions?
Financial innovation is held back by rules and regulations
But this is innovation!
@sdwouters
Say that to the 40% unbanked adults worldwide…
And to the people who pay 5-20% money transfer fees!
Yet we can do this?
@sdwouters
The Blockchain is about more than global payments
@sdwouters
We have more debt than we can ever repay
@sdwouters
Governments struggle to track expenses
@sdwouters
We have unprecedented money printing
research.stlouisfed.org/fred2/series/AMBSL
The money in your bank loses value
Inflation Interest>
@sdwouters
If Finance is so messed up why don’t we fix it?
@sdwouters
Governments are not in charge in the financial world
Governments
Corporates
Banks
National central banks
International central banks
Central bank of central banks
@sdwouters
Despite regulation, banks won’t stop ‘misbehaving’
cnbc.com/2015/10/30/misbehaving-banks-have-now-paid-204b-in-fines.html
Resulting in "cosy" relationships between financial businesses and regulators.We are fighting a never ending flood
@sdwouters
HOW does it work?
WHY does the
Blockchain exist?
Transactions Security
The Blockchain works fundamentally different
Transactions Security
@sdwouters
Money is sent directly between two parties
@sdwouters
Money is sent directly between two parties
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THE BLOCKCHAIN records who owns what, and when
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Everyone can participate
@sdwouters
Governments and banks dislike…
because they have less control over us. They can't track what
we do with it, so people can use it for illegal activities.
CASH
@sdwouters
Governments and banks dislike…
because they have less control over us. They can't track what
we do with it, so people can use it for illegal activities.
CASH
because they have no control over us. They can however track
exactly what we do with it.
BITCOIN
@sdwouters
Anyone can see where a transaction is sent to and where it came from
@sdwouters
What criminal leaves permanent evidence?
@sdwouters
Digital currencies lowest risk in money laundering
@sdwouters
Transactions are synchronised through the network
@sdwouters
Every X minutes, they are permanently recorded in a new block in the blockchain
…
@sdwouters
Nobody can manipulate it
Transactions Security
Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in charge Trust a fixed set of rules
Centralized
All organizations
Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in charge Trust a fixed set of rules
Centralized Decentralized
All organizations The Internet & Bitcoin
@sdwouters
An open blockchain is secured by computing power from people and companies all over the world
@sdwouters
In return for their efforts, these “miners” earn Digital currency and tiny transaction fees
The miners and nodes verify the transactions and add them to the next block in the Blockchain
@sdwouters
When you change a transaction in the past the link to that block changes as well
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The network will know that your version has been messed with and reject it
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You need to create a longer blockchain than the entire network combined
@sdwouters
The Bitcoin network is over 25.000 times stronger than the top 500 supercomputers in the world
Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in charge Trust a fixed set of rules
Decentralized
Who is in charge of the network/computers?
@sdwouters
Improvements can be proposed by developers around the world
bitcoin.org/bitcoin.pdf
…
github.com/bitcoin/bips
@sdwouters
If the majority of the network agrees, the code can be changed / UPDATED
@sdwouters
WHAT can we do with it?
HOW does it work?
WHY does the
blockchain exist?
@sdwouters
Sending money
1 BTC
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Sending money
0.00000001 BTC1 BTC
Money is the tip of the iceberg
@sdwouters
Logical evolution
INTERNET Transfer information
BLOCKCHAIN Transfer ownership
TEXT IMAGES PROGRAMS VIDEOS
MONEY CONTRACTS PATENTS ASSETS
@sdwouters
Everledger stores unique info and ownership of diamonds on the Bitcoin blockchain
everledger.io
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“The Blockchain could disrupt everything”
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THE BLOCKCHAIN IS AN INEFFICIENT DATABASE
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Better sharing of data?
WHY IS a Blockchain Amazing TO USE?
@sdwouters
3
Censorship resistance
2
Immutability
WHY IS a Blockchain Amazing TO USE?
Decentralization
4
1
Open Innovation
5
Open Access
@sdwouters
3
Censorship resistance
2
Immutability
5
Open Access
Decentralization
4
1
Open Innovation
Banks/governments won’t replicate the Blockchain
@sdwouters
Should we have forbidden these too because criminals can use them?
Technology always reflects society
@sdwouters
Remember them, they outweigh the bad minority
@sdwouters
But all these banks are investing in BLOCKCHAINS!
@sdwouters
They are no longer trying to build a “private blockchain”
@sdwouters
Some still try to build private blockchains
Controlled Innovation
Controlled Access
(Auditable) Privacy
High Transaction Capacity
No Volatile Cryptocurrency
No Mining Security Costs
@sdwouters
The Open Blockchain will create the most value
@sdwouters
Bitcoin is driven by the same force that grew the Internet to billions of users: Open innovation
@sdwouters
Don’t skip learning about it
If Bitcoin is so great, why isn’t everyone using it?
‣ Bitcoin is only 7 years old, it still needs a lot of development.
‣ This has never been tried before and it is about money, not information.
‣ Bitcoin is like the Internet in the 90s:
‣ People don't get it. ‣ It looks ugly.‣ We have few use cases.‣ People don’t see how it will
change the world.‣ Those who are disrupted by it
will do everything to stop it.‣ Mainstream 10 years later‣ Mass adoption 20 years later
@sdwouters
Perhaps you think you don’t really need it
@sdwouters
But the world does
