BLOCKCHAIN TECH

THE JOURNEY

2

Partial customer list

First bank, First

government

Globally recognized

I am CTO of Our latest product:

BITCOIN

2008: THE PAPER

2009: BITCOIN RELEASED

2010: BITCOIN GOT NOTICED BY SLASHDOT

2010: I LEARNED ABOUT IT…

2011: 1 BITCOIN IS WORTH $1

Every node processes every transaction!

Every node keeps a complete copy of the ledger!

BITCOIN

2008: THE PAPER

2009: BITCOIN RELEASED

2010: BITCOIN GOT NOTICED BY SLASHDOT

2010: I LEARNED ABOUT IT…

2011: 1 BITCOIN IS WORTH $12011: ALEX STARTS HIS FIRST CRYPTO PROJECT!

MY FIRST BITCOIN PROJECT

Trade anything — virtually

$

Contract For Difference (CFD)Non-Deliverable Forward (NDF)

NOT REAL

HOW NDF WORKS

ExchangeAlice 2 BTC

Bob 2 BTC

1.

2. Alice agrees to sell to Bob 1 bitcoin for $100 in one month

Alice1 BTC + $100 (virtual)

Bob3 BTC - $100 (virtual)

3. Settlement: parties receive payout in bitcoins according to formula1 BTC = $150 now

ExchangeAlice 1.667 BTC

Bob 2.333 BTC

PROBLEM:The exchange holds all the funds and is a single point of failure.

Funds in a shared wallet can be stolen!

ExchangeAlice 2 BTC

Bob 2 BTC

THIS ACTUALLY HAPPENED MANY TIMES

MtGox Bitcoinica BitFinex BitStamp

MyBitcoin.com …

EXIT SCAM:

Operator just disappears with all the money!

SOLUTION: SMART CONTRACTS?

• Bitcoin has Script! 😀

• …but it can’t do payout computations ☹

• but it can encode authorisation (multi-sig) 🙂

MULTI-SIGNATURE

2 BTC

Alice

2 BTC

Bob

4 BTC

Alice 🔒 Bob 🔒

exchange🔒

Payout

🔒

🔒

2 OF 3

BITCOIN SMART CONTRACTS

Alice’s wallet

BUSINESS LOGIC

KEYS🔑🔑🔑

Bob’s wallet

BUSINESS LOGIC

KEYS🔑🔑🔑

Bitcoin Blockchain

COIN

AUTHORIZATION LOGIC

🔒🔒🔒

Oracle

BUSINESS LOGIC

KEYS🔑🔑🔑

DISPUTE MEDIATION

ALICE BUYER

BOB SELLER

ALICE🔒 BOB🔒

MEDIATION SERVICE🔒

2011-2012: FIRST ALT-COINS

Decentralised DNS

Proof-of-Stake

Different Proof-of-Work

PROOF-OF-STAKE

COLORED COINS

ICO: INITIAL COIN OFFERINGLIKE IPO, BUT MORE COOL

more than BILLION DOLLARS invested this year!

FIRST TRUSTLESS TOKEN EXCHANGEP2PTRADE UI IN ARMORYX

CHROMAWALLET

SCAMS EVERYWHERE :(

ETHEREUM

CAN DO EVERYTHING

Colored coins ERC-20 tokens

Smart contracts logic directly on blockchain

GLOBAL STATE (LEDGER, DATABASE…) CONTROLLED BY COMPUTATIONS

WORLD COMPUTER TRANSACTION

CONTRACT CODE

STATE

ETHEREUM UNDER THE HOOD

CONTRACT CODE (SOLIDITY)

CONTRACT BYTECODE CONTRACT ABI

compilation

Ethereum blockchain

DEPLOYED CONTRACT

CUBER

Colored coins on Bitcoin blockchain

Mobile payments

CUBER

Postchain originsbitcoindBitcoin Network

chromanode

SQL databaseclient software

Sidechain

nodenode

nodenode

BFT consensus

Bitcoin Networkclient

client

private blockchain

SIDECHAINS

PRIVATE BLOCKCHAINSALSO CALLED: FEDERATED, PERMISSIONED BLOCKCHAINS

AND “DISTRIBUTED LEDGER TECHNOLOGY”

FABRIC

ESPLIXPRIVATE SMART CONTRACTS

BLOCKCHAIN TECH STACKIT’S ALL ABOUT APPLIED CRYPTOGRAPHY

PRIVATE BLOCKCHAIN PUBLIC BLOCKCHAIN

SMART CONTRACTS

HASH FUNCTIONS SIGNATURESENCRYPTION

PROOFS ZERO-KNOWLEDGE PROOFS

MERKLE TREESAUTHENTICATION