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What is Blockchain?2016-12-14, The Big Building
Three points
1. Incumbents do not get it
2. Most people talk about ‘blockchain” but don’t get it
3. …
@RonaldMulder en @lykle
The Incumbents don’t get it(they are your clients!)
@RonaldMulder en @lykle
35
I’ve come up with a set of rules that describe our reaction to technologies:
1.Anything that is in the world when you’re born is normal and ordinary and is just a natural part of the way the world works.
2.Anything that’s invented between when you’re fifteen and thirty-five is new and exciting and revolutionary and you can probably get a career in it.
3.Anything invented after you’re thirty-five is against the natural order of things.
Douglas Adams - The Salmon of Doubt
1970 20161992 2007200920001988
@RonaldMulder en @lykle
Most people do not understand what Blockchain is
(that means, you, your client, and their advisors)@RonaldMulder en @lykle
What is this?@RonaldMulder en @lykle
Tone Vays@RonaldMulder en @lykle
Bitcoin - How it worksweeelllll….
@RonaldMulder en @lykle
Bitcoin• public/private key cryptography
• hashing
• endogenous digital asset (“coin”)
• peer-to-peer, distributed
• permissionless
• proof of work
@RonaldMulder en @lykle
Public/Private Key Infrastructure(elliptic curve digital signature algorithm)
Bitcoin transacties@RonaldMulder en @lykle
Transaction Chain
Bitcoin Proof of Workdone by Miners
@RonaldMulder en @lykle
Miner’s incentive
Network1. New transactions are broadcast to all nodes
2. Each node collects new transactions into a block
3. Each node works on finding a difficult proof-of-work for its block
4. When a node finds a proof-of-work it broadcasts the block to all nodes
5. Nodes accept the block only if all transactions in it are valid and not already spent
6. Nodes express their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previous hash
@RonaldMulder en @lykle
two chains, actually(in Bitcoin)
Bitcoin has no balancesNo ledger in the traditional sense
Distributed Ledger Technologylike Blockchain, but (totally) different
Bitcoin vs DLT• public/private key
cryptography
• hashing
• endogenous digital asset (“coin”)
• peer-to-peer, distributed
• permissionless
• proof of work
@RonaldMulder en @lykle
• public/private key cryptography
• hashing
• endogenous digital asset (“coin”)
• peer-to-peer, distributed
• permissionless
• proof of work??
Bitcoin vs Ethereum• 10 minute cycle
• Finite amount of coins
• Transaction costs
• hashing: SHA256
• Mining Pools possible
• proof of work
• Transactions
• Stack based Language
@RonaldMulder en @lykle
• 12 second cycle
• Yearly new coins forever
• “Gas” to charge transactions on complex criteria
• hashing: ethash
• Mining pools not attractive
• proof of work becomes Proof of Stake
• State
• Turing Complete Language
Three points
1. Incumbents do not get it
2. Most people talk about ‘blockchain” but don’t get it
3. …
@RonaldMulder en @lykle
You STILL do not get it@RonaldMulder en @lykle
Seriously, you don’t
Why is Blockchain hard to understand?
• In the case of Bitcoin, it is at the crossroads of:
• Game Theory
• Cryptography
• Computer networking and data transmissions
• Economic and monetary policies
Gartner Hype Cycle 2016
Build! Fail! Build! Test!Lead the World
@RonaldMulder en @lykle
Thank you
@RonaldMulder en @lykle
