1. Bitcoin and the Blockchain: Hype springs eternal
Stefano Grazioli

2. Nov.08 Satoshi Nakamoto paper
Mt. Gox bankrupt
Nov.08 Satoshi Nakamoto paper
IRS recognizes BTC as property
German finance ministry recognizes BTC as a unit of account
Jan.09 Bitcoin (BTC) is launched
Silk Road shut down by the FBI
‘09 BTC trades at $0.14
“bitcoin: A Peer-to-Peer Electronic Cash System” was released in the internet by Satoshi Nakamoto

3. The last five years Bitcoin close to $20k Bitfinex (HK) hacked
Mt. Gox bankruptcy
($450m)
Bitfinex (HK) hacked
($72m)

4. Quotes on Bitcoin

5. “Stay Away!”
Warren Buffett

6. “Bitcoin is exciting because it shows how cheap it can be.”
Bill Gates

7. “It is a bubble, there is no question about it.”
Robert J. Shiller, Professor of Economics at Yale
“The central problem with Bitcoin … is that it doesn’t really solve any sensible economic problem.”
A bubble is a special kind of fad, a mania for holding an asset in expectation of its appreciation. amplified by news of price increases justified by inspiring “new-era” stories
attends a session at the annual meeting of the World Economic Forum (WEFT) in Davos January 24, 2014.

8. “Based on everything I know, I’m not guessing that it will work out.”
Lloyd Blankfein, Goldman CEO
A bubble is a special kind of fad, a mania for holding an asset in expectation of its appreciation. amplified by news of price increases justified by inspiring “new-era” stories
attends a session at the annual meeting of the World Economic Forum (WEFT) in Davos January 24, 2014.

9. “…Lots of people will build businesses on top of that.”
“The ability to create something which is not duplicable in the digital world has enormous value.”
Eric Schmidt
“…Lots of people will build businesses on top of that.”
A bubble is a special kind of fad, a mania for holding an asset in expectation of its appreciation. amplified by news of price increases justified by inspiring “new-era” stories
attends a session at the annual meeting of the World Economic Forum (WEFT) in Davos January 24, 2014.

10. “It won’t end well.”
Jamie Dimon, JPM CEO
“It’s a fraud and honestly I’m just shocked anyone can’t see it for what it is … [it is ] worse than tulip bulbs”

11. Gartner’s 2017 Hype Cycle for the Blockchain

12. VC money is drying up

13. Blockchain = the technology powering Bitcoin

15. Blockchain is a write-only fully replicated database that tracks transactions among accounts
Anybody can obtain accounts for free
Anybody can see the full content
Transactions are free or very cheap
Transactions are irreversible
No central authority to mediate disputes
No Central authority to verify transfers or to mediate disputes.
Anybody can obtain accounts for free
Anybody can see the ledger
Transfers are free/very cheap
Transfers are irreversible

16. Use of blockchain requires a pre-existing business agreement
Carlos the consumer
Account ABC123 with secret key Secret1
Mara the merchant Account XYZ456
with secret key Key2
“I accept BitCoin Payment 12 roses = 0.01 BTC Account: XYZ456”
“Please send 12 roses to 839 Hilton Rd., Cville, VA. I am sending a transaction from account ABC123”

17. Blockchain uses cryptography (PKI) to insure non-repudiation and integrity
Carlos the consumer
Account ABC123 with secret key Secret1
Mara the merchant Account XYZ456
with secret key Key2
Transaction
Transfer of funds
Sender: ABC123
Transfer to: XYZ456
Amount: 0.1 BTC
Proof of BTC ownership
Sender: RST234
Transfer to: ABC123
Amount: 0.2 BTC
Account name is the Public key, the secret is the private key
Digital Signature: 973sdskhu9dft

18. Transactions are propagated through a P2P network (no central authority/server)
Carlos the consumer
Account ABC123 with secret key Secret1
Mara the merchant Account XYZ456
with secret key Key2
Blockchain P2P network
Transaction
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature

19. A special type of peers verify the ownership of funds using the block chain
Blockchain P2P client network
Unverified transactions
Verified transactions
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Check
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
‘Locked’ into the next block of the Block Chain
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
Transfer of funds
Proof of ownership
Digital Signature
‘Block Chain’ of verified transactions

20. Blockchain mining requires solving cryptopuzzles by brute-force methods
Application Specific Integrated Circuit
1 ASIC = 70,000 Intel CPUs
HashFast’s Eduardo deCastro says, “It would take 70,000 of Intel’s fastest chips to match one of ours.” (cost $15k)
Source: HashFast

21. Once in the Blockchain, the transaction is irreversible
Mara the merchant Account XYZ456
with secret key Key2

22. Vitalik Buterin 1994

23. Smart Contracts
A smart contract is procedural code that is automatically executed in response to certain events on the blockchain.

24. April 15, 2018

25. What is the original Blockchain?
A database technology
Fully replicated
Write-only
Clear text in transit and at rest
Permissionless
Consensus mechanism: proof-of-work
No central authority
No legal remediation
Slow
Open source

27. Database triggers
“A database trigger is procedural code that is automatically executed in response to certain events on a particular table or view in a database.”
Introduced commercially in 1997, available on all major DB.
- wikipedia

28. What is the state-of-the-art Blockchain?
A database technology
Fully replicated
Write-only
Clear text in transit and at rest
Permissionless
Consensus mechanism: proof-of-work
No central authority
No legal remediation
Slow
Open source
Partially replicated

29. What is the difference? Smart contracts are replicated
Smart contracts are written in XML