How to describe it to your grandmother! Blockchain How to describe it to your grandmother! Mehran Davoudi http://mehrandvd.me @mehrandvd

As a part of series at

The Journey Overview Bitcoin Cryptocurrency Blockchain Blockchain 2.0

The 5th disruptive computing paradigm

Bitcoin History http://historyofbitcoin.org/

Growth Price Transactions (logarithmic scale) https://www.blockchain.com/charts

Trust concept Real money Cryptocurrency Centralized Ledger Banks Accounts E-banking Cryptocurrency Distributed Ledger No one responsible

How Bitcoin works? Bitcoin as a money, as a gold

Gold Ecosystem A Rare Stone Miners Earning Spending Traders

Semi-Bitcoin Ecosystem A Rare Number Numbers with just 2 prime factors that have at least 5 zeros 348008406070353 At least 8 zeros 72800856544000607038302153 At least 8 sequential zeros 9183588565446084352400000000684652146584153 At least 8 sequential zeros starting at second digit 500000000185562143546987496546549635885654460843524684652146584153 Mathematical proof

Semi-Bitcoin: Miners Computers and algorithms to find such a number.

Semi-Bitcoin: Earning and Spending People should accept to earn these numbers for their works, services and … People should be able to spend these numbers to buy services or products.

Semi-Bitcoin: Traders

Mainstream Adoption Too complicated for mainstream adoption: Same was true for the Internet, Not necessary to know how TCP/IP works 32-character public key is not easy to use as a public address. Circle Internet Financial and Xapo: Gmail of Bitcoin

Byzantine’s General problem Double-Spend problem resolved by blockchain

Decentralized Nature It is decentralized by design, that’s what we call the Blockchain

Blocks, chains of them… 20$ Mehran to Maryam 80$ Maryam to Mohsen Afshin to Mohsen Block 4 … … …

Decentralized chains 20$ Mehran to Maryam 80$ Maryam to Mohsen Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … … Block 1 20$ Mehran to Maryam Block 2 80$ Maryam to Mohsen Block 3 Afshin to Mohsen Block 4 … … …

Proof of Work Who can change the entire blockchain?

Blockchain as an infrastructure At 2010 a communication from Satoshi Nakamoto: The design supports a tremendous variety of possible transaction types that I designed years ago. Money transfer is just a fact. Why just money? Why not to manage the other facts?

Blockchain revolution Currency Money Payments Blockchain 2.0 Contracts Financial Market Blockchain 3.0 Government Health Science Literacy Culture Art

Blockchain 2.0 DApp: Decentralized Applications DAO: Decentralized Autonomous Organizations DAC: Decentralized Autonomous Corporations To transfer of many other kinds of assets beyond currency.

Storj Decentralized cloud storage platform Completed a $461,802 crowdfunding in 2014 Enable users to rent out their unused hard disk space and store heir files on the Storj network.

Automatic Tradenets Self-operating, self-owned assets: Self-driving car, self-owning car

Melk Radar Aggregation of all estates from online vendors: Divar, Sheypour, Hamshahri, … Real estates do not trust each other, so multi-level transactions can not be made. A transaction could have different stakeholders with trusted portions of profit.

Everything is like Economy Every system in life, is economic to some degree Systems and interactions: Awareness and discovery Value attribution Potential interaction and exchange

Distributed Censorship-Resistant No comment!

Namecoin Alternative to verify DNS registrations URLs permanently embedded in blockchain would be resistant to the government seizing of domains. Top-level domains are being controlled by centralized authorities. United States controls .com URLs. Top-level domain for Namecoin is .bit

Blockchain as a Service: BaaS Microsoft Azure Ethereum Blockchain as a Service IBM Blockchain on Bluemix Deloitte Rubix

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