Things to do with a blockchain

Things to do with a blockchain

Evolution of theblockchain

Blockchain 1.0

Blockchain 2.0

Blockchain 3.0

BasicsBlockchain-Design

Basic Design

Alice Bob

Create

Read

Update

Delete

1 btc

Decentralized payment systems

Alice‘s

bank

Bobs

bank

Alice Bob

Edmund

Alice sent this

coin to me!

Alice

Bob

priv

pub

What if I send the

same coin to both

Edmund and Bob?

Consensus-Algorithm

PoW-Mining

▪ External resource (calculation power) is used – the reward is the underlying cryptocurrency

▪ Finality is achieved after ~ 6 blocks (in Bitcoin)

▪ Randomness of participants due to the mathematical problem

▪ Faster block solving times result in less security

PoS-Mining

▪ Internal resource (relative stake of coins) is used

▪ Randomness needs to come out of the system

▪ Block solving times are limited by the speed of the participants network

Choose a participant who creates the next block

Basic applicationsOracles, decentralized payment systems, token systems and identity systems

Oracles

Decentralized data stream

▪ Parties „bet“ on a specific result

▪ Median is defined and set as the correct result

▪ All parties inside of a certain quantile of the median get a reward

Central service provider

▪ A trustworthy third-party delivers data to the blockchain

▪ Can be used by other programs on the blockchain

Provide reliable external data to the blockchain

Decentralized payment systems

Oracle4. Delivery confirmation

2 of 3

Oracle can be used if problems arise.

The tracking ID could bes used as a

proof that the delivery happened

Smart

contract

Buyer Seller

1. Payment of goods2. Verification of the

payment

5. Allow transaction

to the seller 5. Allow transaction

to him or herself

6. With two of three

confirmations: Payment

goes to the seller

3. Delivery of goods

Token systems

Way ofminting

AutomatedDirectly

controlled

Tradeability

Freely Not tradeable

Divisibility

Freely divisible Not divisible

Amount

Fixed amountVariable amount

Identity systems

1. Data to service2. Verification

3. Confirmation /

DenialSmart

contract

pub pub

User Service

User

pub

KYC-Provider

Smart

contractWebsite

1. Data to KYC-Provider

2. Post card with

verification code

3. Enter the

verification code

4. Confirmation

5. Registration

Thank you!

[email protected]

LinkedIn: Felix Albert