Blockchain Tech Briefing

Blockchain – Tech Briefing

Hi Everyone! My name is Almog Paz and for my tech briefing I wanted to talk to you all about a technology called Blockchain.

Before I start, I want to preface this briefing with the fact that Blockchain is an incredibly complicated and controversial topic. I will do my best to present the facts that will help you understand the technology and its business uses, however, even through my research I still do not personally understand all the details and intricacies of Blockchain.

So, I’ll give you a definition now (a combined one I created from several that I found online) to introduce you to what it is, then we’ll talk about what it means later.

“Blockchain is a decentralized ledger of transactions that is virtually incorruptible and can be programmed to record value, information, and other forms of cryptocurrency"

But first, a little history…

Blockchain was first introduced to the world in 2008 by a person or group who anonymously go by the name of Satoshi Nakamoto. The original intent was to create a public ledger, a peer-to-peer network with distributed timestamping, that would serve as the backbone for a new digital currency: Bitcoin.

Many of you have probably heard about Bitcoin, especially the negative stigma around it regarding its involvement with the dark web and buying drugs/weapons on the black market. However, though to this day no one knows who Satoshi is, the technology behind Blockchain has since developed and is now one of the hottest and most revolutionary topics in the tech world.

How Blockchain technically works…

Trade is the essence of transactional interactions between people. When a trade is or transaction is made, it is usually recorded on a leger (book keeping). We trust banks, governments, accountants, and other middle men (trusted 3rd parties) to ensure that bookkeeping is done appropriately, although it’s done in private. The Blockchain allows this bookkeeping to happen collectively and publically, without one party controlling the book.

This is the part where we start breaking down our earlier definition. The first part of is “decentralized ledger of transactions” – much like any ledger, its functionality is depended on the information that it holds. For our purposes, this “decentralized ledger”, is simply a distributed (shared) database. Imagine it’s like a spreadsheet with transactions and information, that is not stored in one single location or file but instead thousands of times across an entire network. Each node in the network owns an entire copy of this ledger, so this “spreadsheet” is updated and cross checked for inconsistencies continually.

The next part of our definition “virtually incorruptible” is related to the way this ledger is cross checked. Blockchain uses complex mathematical principles (cryptographic hashing) to ensure the legitimacy of each transaction and that everyone with the ledger “agree” about the current state of it. This means, that if anyone tries to corrupt the ledger (fraud) the nodes will not unanimously agree, making it impossible to corrupt.

Now the Blockchain works regardless of what type of information is being recorded on the ledger. Whether it’s a monetary value (like bitcoin or dollars), information (like intellectual property, contracts, ownership certificates), or other things of value (like a kilowatt of energy, vote during elections, or even a barrel of oil) the Blockchain can store this information through metadata.

Obviously, you have to just take what I’m saying at face value, but if you’d like to learn exactly how all of this works please watch the following videos:

Essence of Blockchain (non-technical) – https://youtu.be/t5JGQXCTe3c

Blockchain in 5 minutes (technical) – https://youtu.be/l9jOJk30eQs

Also for a great article covering the “big picture” check out this: http://hackeducation.com/2016/04/07/blockchain-education-guide

So why is it revolutionary …

1. Can set rules for how currency can be used – values can be specified for purpose, so you could create a currency called “MIS441 Grade Points” and our professor would send you those to your ledger. Meaning that another currency for example “Dollars” couldn’t be used to replace grade points.  
2. Cryptocurrency Wallets – Imagine if you could have 1 wallet to store everything of value, so you had let’s say $1000, your bachelor’s degree in MIS, the title to your vehicle, etc. all represented in different currency.
3. Cuts out the middle man – there is no more need for a one “trusted 3rd party” we can trust that the ledger is being maintained accurately by “everyone”.
4. Can enforce contracts – To explain in music terms, if a friend and I create a song and we are 50/50 owners, then you buy that song for a $1. The Blockchain can automatically send 50% of that $1 to each of our ledgers, we don’t have to count one people truly getting their “fair share”.
5. History set in stone – Because of the nature of the “blocks” in a time-bound “chain”, the order of transactions and their legitimacy cannot be disputed. (You will need to watch the videos to understand this further)
6. Anonymity – Although the information is “public” it is kept anonymous because it uses a combination private and public keys (these are unique identifiers, like a complex password). The video will explain this more as well.

Use cases beyond bitcoin… 

The Blockchain has a lot of unique benefits that surround ownership, trust, governance, and trade which is what makes it so special. Its most commonly known use right now is for Bitcoin but many companies are investing in Blockchain as the tech of the future and many start-ups are catching on.

Though there are hundreds of great examples, I wanted to share some companies in different industries that are building their business around Blockchain technology. When you look through these, think about how the benefits of Blockchain highlight above relate.

Healthcare – Using Blockchain-based data that manages medical/health records. Could allow access only when authorized by multiple people (reducing fraud, increasing privacy, and allowing for healthcare payments)

MedRec – https://www.pubpub.org/pub/medrec
Gem – https://gem.co/health/

Banking & Fintech – Trust in major banks (3rd party), especially after the financial crisis of 2008, has been an ongoing issue. Additionally, payments could be made easier (with no wait times for big transactions) and the Blockchain could help eliminate fees.

Ripple – https://ripple.com/
Digital Asset Holdings – https://digitalasset.com/
Vault OS – https://www.thoughtmachine.net/
Abra – https://www.goabra.com/

Government – Government departments that work in silos cause the exchange of information to be delayed, negatively impacting citizen services (also increased transparency and decreased corruption). This could also be used for voting!

FollowMyVote – https://followmyvote.com/online-voting-technology/blockchain-technology/

Reply – http://www.reply.com/en/content/ballotchain

Law – Holding information (intellectual property, ownership, etc.). Also, the “Smart Contracts” that can be implemented on the block chain.

RSK Smart Contracts – http://www.rsk.co/
Ethereum – https://www.ethereum.org/
Blockai Copyright -- https://blockai.com/

Music – The music industry is one where there are a lot of players involved and ownership is incredible complex. Blockchain could help promote fair trade, empower artists to own and control their creative content, and more!

Ujo Music – https://ujomusic.com/
Mycelia – http://myceliaformusic.org/

There are many more uses for Blockchain in several other industries and fields like supply chain, real estate, and smart city initiatives. Hundreds of companies are currently finding different ways to implement it. But hopefully I was able to give you a glimpse of what could be with this technology. Finally, I’d like to share a real-life example of how this might work:

DocuSign & Visa Partnership Demo – https://youtu.be/2rLNbd6MQXg

Thank you for listeningJ