1. Blockchain OVERVIEW B. Ramamurthy ©2018, all rights reserved
Research Associate Professor
Computer Science and Engineering
Director, Blockchain THinklab
University at Buffalo
April 13, 2018

2. Overview 3. Computations and Smart contracts (Ethereum)
1. Blockchain Concepts
A brief history of blockchain
What is a blockchain?
2. Beyond Cryptocurrency
Non-cryptocurrency payload (Multichain)
Permissioned blockchain (Hyperledger Fabric, Enterprise Ethereum)
3. Computations and Smart contracts (Ethereum)
Expanding Ecosystem
4. Dapp Stack, Development Environment and Tools
Smart Contracts (Ethereum), Remix IDE (Tool)
Dapp stack and Truffle IDE (Tool)
5. Disrupting Your Business Ecosystem
Disrupting Energy Markets: Grid+
6. Opportunities
Summary
References
Q & A

3. Blockchain Concepts
11/9/2018

4. A Brief History of Bitcoin Blockchain
E-Commerce
Communication
mobile apps …
Cryptocurrency: Bitcoin: 2008/2009
Peer-to-peer autonomous digital currency system among unknown peers with no intermediaries
Validation, Verification, Immutable recording
The Blockchain Protocol
Need better graphics for all figures
Where is the innovation? Bitcoin is a live proof of a robust
The Internet Protocol (TCP/IP)
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5. Blockchain: THE DECENTRALIZATION INFRASTRUCTURE - 1
Traditional Centralized System
Decentralized System
Functions of the intermediaries are shifted
to the peer participants and the blockchain nodes:
Disintermediation: validation, recording, verification using blockchain software

6. Blockchain: THE DISTRIBUTED Immutable Ledger - 2
Transactions
Eve
Chain
invalid
Block
Modify
Validate &
Gather
Transactions
Consensus &
Verify &
Confirm
Block
Block
Block
Chain link is the hash of elements of the previous block

7. Blockchain: The DISINTERMEDIATION - 3
The Blockchain infrastructure supports methods to:
-- validate, verify and confirm transactions
-- record the transactions in a distributed ledger of blocks
-- implement a consensus protocol for agreement on the validity of blocks
-- create a tamper-proof record of blocks (chain of blocks)
Validation, Verification, Consensus, Immutable Recording  Trust, Security
All defined by the blockchain protocol, and implemented by software.
& Recording

8. Summarizing, Blockchain is about
Decentralization
Disintermediation
Distributed Immutable Ledger
On a strong foundation of more than 40 years of scientific research (cryptography, hashing, p2p, consensus protocols)
Enabling automation, accountabilty, auditability, efficiency, accuracy, fidelity, fairness, and inclusivenes.
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9. Beyond cryptocurrency
Smart contracts
11/9/2018

10. Non-cryptocurrency payload
Bitcoin core enabled transactions that enabled a peer-to-peer payment system.
Can we transact something other than digital currency?
Payload of the blockchain could be genetic assets, proxy vote, warning signals, governance data, provenance data, etc.
Many next generation blockchain platforms focused on non-crypto payloads: Hyperledger Fabric.
Some others such as Zcash and Multichain focused on privacy through permissioned network.
11/9/2018

11. Blockchain is not about Cryptocurrency anymore!
E-Commerce
Communication
mobile apps …
Cryptocurrency: Bitcoin: 2008/2009
Autonomous, Decentralized, applications: 2013
Validation, Verification,
Immutable recording
Computing infrastructure:
Smart contracts
The Blockchain
The Internet
11/9/2018

12. Transfer of currency vs. Smart contract Transaction (BY Sean Sanders)
Let us compare Bitcoin transaction and a smart contract transaction.
As you can see in Bitcoin, all the transactions are about “SendValue”.
In the case of a blockchain that supports smart contract, a transaction could embed a function implemented by a smart contract.
In this case, we have a Voting Smart contract. The functions are validateVoter(..), vote (..), count (..), declareWinner(..)

13. Smart Contracts (ETHEREUM Blockchain)
A business transaction may involve conditions, rules, policies, laws, regulations and governing contexts.
Smart contract allows for these real-world scenarios to be realized on a blockchain.
Thus a smart contract enables a wide variety of decentralized applications of arbitrary complexity to be implemented on the Blockchain:
from supply chains to disaster recovery.
Probably many of the applications for the blockchain technology have not been conceived of yet.
11/9/2018

14. Expanding Ecosystem Type 4: Blockchain platform as a service:
Example: Microsoft Azure
Type 2: Cryptocurrency +
Smart contract business logic
Example: Ethereum
Type 3: Only business logic
+ NO cryptocurrency
Example: Hyperledger
Type 1: only cryptocurrency
Example: Bitcoin

15. Smart contract Language, REMIX Tool
In Ethereum context, Soldity is a language for writing smart contracts.
It is similar to any object-oriented language.
Remix is an intregrated prototyping environment for Ethereum smart contracts.

16. Dapp Stack
Decentralized Applications on the Blockchain
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17. Dapp Stack (Decentralized APPLICATION STACK)on ETHEREUM Blockchain
Smart contract provides a layer of computational logic that can be executed on the blockchain thus availing the features enabled by the blockchain framework.
Observe the smart contract providing the application framework for a domain application. For example, consider home mortgage applications. Smart contract could embed all the business logic and intelligence for the rules and regulations to allow for automatic computations and initiation of operations. How might this be different from the existing systems you may ask? Here all the operations are transparent and are recorded on the blockchain. Customers can directly access the tools without an intermediary like a bank. It is like ATM for mortgage initiation! You are holding the assets instead of an intermediary.

18. How to solve a problem – Ethereum App Level
Blockchain is NOT solution for all your problems. It is NOT a data repository.
You save only the “sliver” of info that is needed for business logic, provenance and governance on the blockchain.
Write the use cases
Choose your blockchain. Lets say we chose Ethereum. And Ethereum is not the only blockchain technology. There are many others.
Design and Implement a smart contract solution in Solidity Language
Test it using Remix IDE (Integrated Development Environment)
Develop end-to-end Dapp using Truffle IDE with a graphical user interface
Deploy it on a blockchain for the whole decentralized world to use.
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19. Disrupting Your market Place
Example: Green Energy with Grid+ Ethereum blockchain
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20. Blockchain in your Business
Do not over-fit blockchain into existing working systems.
It is NOT a database. (Instead, use a decentralized database in tandem with blockchain provenance.)
Blockchain is NOT a panacea for all your problems.
Then what is good for?
Problems with
inefficiencies,
barriers to adoption,
decentralized users,
peers or users who are operating beyond boundaries of trust, that do not fit well into our centralized model,
Problems with policies, rules, governance, provenance: US Government? NY State?
Leapfrog newer initiatives on the blockchain: countries of Estonia, Dubai, India

21. Disrupting the Energy Markets

22. Energy retail: 50% Admin Overhead

23. Energy Retail Grid+ on Ethereum Blockchain

24. Blockchain Opportunities
Blockchain reporters (e.g. Augur)
Users of blockchain application platforms (e.g. Grid+ energy customer)
Blockchain education and application development ( e.g. Coursera)
Disruptive applications of blockchain in vertical domains (e.g. energy, legal, healthcare, government, fintech)
Blockchain Dapp development tools and frameworks (e.g. Remix, Truffle)
Blockchain protocol improvement research and decision makers (e.g. EIP)
Blockchain alternatives for decentralized systems (e.g. Hashgraph)
Fundamental research in blockchain algorithms (e.g. Cryptography)

25. Blockchain Opportunities
Example
Users of blockchain application platforms
Augur: Prediction market traders
Blockchain education and application development
Coursera specialization on blockchain
Disruptive applications of blockchain in vertical domains
Grid+ energy retailer
Blockchain Dapp development tools and frameworks
Remix, Hyperledger Composer
Blockchain protocol improvement
Ethereum improvement protocol
Blockchain alternatives for decentralized systems
Hashgraph
Fundamental research
Cryptography

26. UB Initiatives: How can we help?
UB SEAS is at the leading edge of educating people about this technology.
SEAS’ Coursera Blockchain “Specialization”
4 courses of 4 weeks of online instruction each with hands-on components.
UB Blockchain Thinklab supported by President’s Circle Club funding
Educating UB students across the campus
Locating resources for your research
Consulting with regional and international businesses
Promoting Buffalo as a world renowned blockchain hub
Premier event: UB Blockchain Buildathon April 13-15, 2018 See ethBuffalo.org

27. Summary Blockchain technology is not about cryptocurrency anymore.
It is used for broad range of applications across many industries: finance, healthcare, government, manufacturing, and distribution.
Blockchain can enable an inclusive economy.
Blockchain has created exciting new opportunities and innovative application models:
Global colloboration systems, self-governing systems, open government.
Private, public and permissioned (consortium) models to meet diverse business needs.
There is a role to play for each and everyone of you.
11/9/2018

28. References
S. Nakamoto. Bitcoin: A Peer-to-Peer Electronic Cash System
Ethereum Project: Homestead and Platform. last view
Introduction to Smart Contract. Last viewed 2017.
Remix IDE: remix.ethereum.org, last viewed 2018.
Truffle IDE : last viewed 2018.
Grid+ White paper, last viewed 2018.