This presentation gives a short introduction into the design-patterns that are used to create crypto-currencies and describes 4 basis-applications the technology can be used for: Oracles, decentralized payment systems, token-systems and identity systems
9. Consensus-Algorithm
PoW-Mining
âȘ External resource (calculation power)
is used â the reward is the underlying
cryptocurrency
âȘ Finality is achieved after ~ 6 blocks (in
Bitcoin)
âȘ Randomness of participants due to the
mathematical problem
âȘ Faster block solving times result in
less security
PoS-Mining
âȘ Internal resource (relative stake of
coins) is used
âȘ Randomness needs to come out of the
system
âȘ Block solving times are limited by the
speed of the participants network
ïChoose a participant who creates the next block
11. Oracles
Decentralized data stream
âȘ Parties âbetâ on a specific result
âȘ Median is defined and set as the
correct result
âȘ All parties inside of a certain quantile
of the median get a reward
Central service provider
âȘ A trustworthy third-party delivers
data to the blockchain
âȘ Can be used by other programs on
the blockchain
ïProvide reliable external data to the blockchain
12. Decentralized payment systems
Oracle
4. 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 goods
2. 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
14. Identity systems
1. Data to service
2. Verification
3. Confirmation /
Denial
Smart
contract
pub pub
User Service
User
pub
KYC-Provider
Smart
contract
Website
1. Data to KYC-Provider
2. Post card with
verification code
3. Enter the
verification code
4. Confirmation
5. Registration