1. Blockchain technology
Flavien Charlon

2. The origins Early 2009 Satoshi Nakamoto Distrust in banking
The world is in the middle of a financial crisis
Satoshi Nakamoto
Introduces bitcoin to a cyberpunk mailing list

4. How a bank works Alice Charlie Alice $10 Bob $200 Charlie $50 Alice
$60
Bob
$150
Charlie
$50
Bob
Bank

5. How cryptocurrency works
Alice
Alice
$10
Bob
$200
Charlie
$50
Alice
$60
Bob
$150
Charlie
$50
Charlie
Alice
$10
Bob
$200
Charlie
$50
Alice
$60
Bob
$150
Charlie
$50
Bob
Alice
$60
Bob
$150
Charlie
$50
Alice
$10
Bob
$200
Charlie
$50

6. Double spend Bob creates two transactions
Bob has $200
TX1: Pay $150 to Alice
TX2: Pay $150 to Charlie
Send TX1 to half the network, TX2 to the other half
How to decide which is valid?
Time is relative in a distributed network

7. Proof of work Mining: A vote to decide the “truth” Block reward
Hashpower based
“Arms race”
Calculate hashes to find low values
The block is valid if hash lower than a specific value (difficulty)
Block reward
Constant reward: 50 BTC (2009 – 2012), 25 BTC (2012 – 2016), 12.5 BTC (present)
Transaction fees
hash = SHA256(previous_hash, transaction_list, nonce)

9. Bitcoin accounts Accounts are addresses Private key Public key
Can be generated though a mathematical operation
Entirely offline
Generate a public + private key pair
Private key
e.g. L4pm1SnqpZfYLoAXXTWLWKGLGAVNF6YWTrYUdUCRtokTHnwvd42T
Used to sign a transaction
Public key
e.g. 178JCG232ju5DEZFacZSxWmvobKKssu9km
Used to receive a payment

10. Benefits of Bitcoin Censorship resistance Pseudonimity Security
No single entity can control the currency
Pseudonimity
Hard to say which address belongs to who
Security
Based on cryptography
Authentication, integrity, non repudiation
Transparency
The ledger is public

11. Challenges Development process Scalability Slow and cautious
Power struggle
Scalability
Ever-growing database
More transactions means higher fees
Ecological concerns with PoW

12. Beyond Bitcoin 2011 – 2014: Altcoins exprimentations
Bitcoin forks: Namecoin, Litecoin, Dogecoin
New chains: Ripple, NXT, Bitshares
2013 – 2015: Blockchain projects start to emerge
Based on Bitcoin
Colored coins, Mastercoin
First crowdsales

14. Ethereum Proposed late 2013 Turing-complete scripting language
By Vitalik Buterin, large team behind it
Crowdsale July 2014 – 25,000 BTC (50 million ETH)
Launched July 2015
Turing-complete scripting language
Arbitrary code, with limitations
Define smart contracts using scripts
Code run deterministically upon transaction validation

15. Code is law? Replace legal contracts with smart contracts?
Money in escrow, unlocked when shipping container is registered at destination
Plenty of challenges
What if the code has a bug, does not reflect intent
Who resolves disputes
What if contract is illegal
The DAO controversy
Who are you contracting with?

16. Applications Token issuance Create a transferable “coin”
Used for fundraising through “ICOs”
Presented as alternative to VC funding
Some very successful projects (fundraising-wise)
Filecoin ($257M)
Tezos ($232M)
EOS ($185M)
Securities laws
Banned in China, South Korea

18. Enterprise Blockchain
Banks see potential for innovation
And they have a PR problem
Bitcoin has negative image
“It’s not about Bitcoin, it’s about the technology”
Private and consensus Blockchains
Well known participants
No proof of work: 1 vote per participant
No underlying cryptocurrency
Shared database with multiple writers and no central control
If participants are known, why not have a trusted technical provider? E.g. SWIFT

19. Enterprise Blockchain
Hyperledger
Started by IBM, Linux foundation, a few startups R3
Banking consortium
Chain
Sillicon valley based
Product + consulting
Consensys
Mosting consulting

20. Enterprise Blockchain
Started around 2015
NASDAQ announcement with Chain
2016: Me too
Most banks announcing pilot projects and POCs Big focus on enterprise applications
2017: More pilots?
Where are the results?
Focus has been shifting back to cryptocurrency with ICO madness in H2
2018: Make or break for enterprise blockchain
Media attention diverted back completely to public chains and cryptocurrencies

21. Where is it going? Public chains Private chains
ICO craze will continue though 2018
Then probably crash
AAA cryptos (BTC, ETH) will dip but recover
Other tokens will disappear
SEC & other regulators will start enforcement
Private chains
More pilots and proof of concepts (2018, 2019)
10% of them will be deemed useful
Hype will deflate

22. Q&A