Key concepts of blockchain

Transcription

1 Advisory

2 A brief history of blockchains 2008 The mysterious Satoshi Nakamoto publishes his Bitcoin white paper Nov. 23 rd Ethereum crowd sale Number of crypto tokens: BTC $8.216 The first Bitcoin was minted 2009 BTC reach $415 in March according to CoinDesk DAO forked ETH staff working on blockchain 2

3 The Blockchain Revolution!? DApps & DAOs 3.0 Autonomous decentralized applications Decentralized autonomous organizations.? Potential activities 1.0 Coins Cryptocurrencies Payment services Trading of resources beyond payments 2.0 Tokens Smart Property ICOs Smart Contracts Time for Business cases 3

4 (Distributed) ledger Every participant in the network has simultaneous access to a view of the information Cryptography Integrity and security of the information on the blockchain are ensured with cryptographic functions Consensus Verification is achieved by participants confirming changes with one another, replacing the need for a third party to authorise transactions Smart contracts Additional business logic can be embedded in the blockchain 4

5 All transactions are distributed in blocks and all nodes hold all transactions. Node blocks centralized disributed ledger shared ledger Chain of transactions without blocks Centralized golden copy of data 5

6 Data has to be signed and to be hashed to the ledger by the proper party. Hashing Function Digital Signature Process Transforming Data Identification Raw Data User s Private Key Sample sentence Sample sentence. Hashing Function d5cc9ef92c611395e8ca 2e6b4796facd 85e748010af1b44d3a1 2bacddf135d50 Hashed Data Algorithm transforms data of any size to a new fixed size Signed Message Verification 6

7 Each block contains a validated pointer to the previous block. This chains each block to the previous one. Block 20 Block 21 Block 22 Block 23 Block Hash: 57ec2fdb62. Previous Block Hash: 57ec2fdb54. Block Hash: 57ec2fda71. Previous Block Hash: 57ec2fdb62. Block Hash: 48cd3adb18. Previous Block Hash: 57ec2fda71. Block Hash: 58ex2uda21. Previous Block Hash: 48cd3adb18. Time Stamp Time Stamp Time Stamp Time Stamp Transaction Transaction Transaction Transaction Other Other Other Other time 7

8 Nodes have to agree on a single source of history. Proof of Work Proof of Stake? proposes appends votes Trade-off decisions: Energy Consumption Network Resilience Timing 8

9 A Smart contract is a business logic that can be assigned to transactions. A contract between parties is written as code in the blockchain. Individuals are anonymous but contract is in the public ledger. A triggering event (e.g. expiration date) is hit. Contract executes itself according to coded terms. 10

10 Is blockchain technology right for you? High performance, Millisecond transactions? Are you managing a contractual relationship? Does identity matter? Does this require trust/a Market Approach? No Yes Yes Yes 10

11 Key factors for the future of blockchain Interoperability Scalability Volumes Vulnerability Attacks Regulatory Issuance of assets Standardisation Response times Confidentiality Compliance rules Messages Oversight Consensus API s 9

12 blockchain propositions Business Modelling Prototyping Proof of Concept Code Review Mag. Thomas Hillebrand, MBA Senior Manager Consortium buildout Erdbergstraße Wien Telefon: Mobil: thomas.hillebrand@at.pwc.com Architecture