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Block chain 101 what it is, why it matters

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The Blockchain is an important new technology, but it is shrouded in mystery: what does it do? Why is it such a big deal? How is it related to bitcoin? In this short presentation (with attached video), I attempt to answer those questions.

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  • The blockchain is an undeniably ingenious invention – the product of an individual or group of individuals. however since then, it's evolved into one thing greater, and therefore the main question each single person is asking is: what's Blockchain? By permitting digital information to be distributed however not copied, blockchain technology created the backbone of a new type of internet. Originally devised for the digital currency, Bitcoin, the tech community is currently finding alternative potential uses for the technology. For get more information about this latest technology visit: https://www.draglet.com/blockchain-applications
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Block chain 101 what it is, why it matters

  1. 1. BitCoin Basics: Doing Ordinary Things in Amazing Ways Paul Brody, Americas Technology Strategy Leader @pbrody Linkedin.com/in/pbrody December 2015
  2. 2. BitCoin, the first real implementation of BlockChain technology is in many ways not at all revolutionary. 2 What bitcoin does is nothing special. How bitcoin works is revolutionary.
  3. 3. BitCoin is the re-invention of the most basic workload in the world of modern computing: transaction processing. 3 The Block Chain CICS in 1966
  4. 4. The Blockchain is the generic name for the database and transaction processing capabilities that power BitCoin 4 One individual transaction record. The Hash is an encryption algorithm that provides a unique result for each block. Tampering with any record in the block will cause the hash to change and show attempted fraud. A group of transactions that are all approved at once and added to the database are called a Block. #
  5. 5. The Blockchain is the generic name for the database and transaction processing capabilities that power BitCoin 5 String multiple blocks together and you get a BlockChain.
  6. 6. Though the results look similar to other systems, the way that BitCoin works is profoundly different 6 Distributed processing Every node in the network checks the work of other notes. Confirming transactions involves solving a small math problem with random numbers. Multiple parties work on this simultaneously. Transactions are confirmed by a kind of digital majority vote. The result is that collusion to approve fraudulent transactions is difficult. Original Transaction Copies for Verification & Processing
  7. 7. Though the results look similar to other systems, the way that BitCoin works is profoundly different 7 Synchronized Records Every participant in the network keeps a copy of all the transactions. Transactions are secured by encryption to prevent tampering. Change your transaction history, and your hash numbers will be out of sync with all others, exposing tampering. Distributed processing # # # # # #
  8. 8. Though the results look similar to other systems, the way that BitCoin works is profoundly different 8 Distributed processing Synchronized Records Smart Information Transactions can be sent with rules attached - small programs that govern when and how money is delivered.
  9. 9. BitCoin may the single most secure piece of commercial information technology ever created 9 Secure Efficient Open Commercial Resilient and reliable. Using the resources already there. Open source, transparent. Designed for commerce.
  10. 10. You can use BitCoin and it’s core technology in number of different ways. 10 As A Bank & Currency As originally intended.# # # # # #
  11. 11. You can also use the public BitCoin BlockChain as a kind of digital records & operations platform 11 BitCoin As A Platform You can insert information and records into transactions and do so in very tiny amounts - $0.00001 cents, for example. You can take advantage of the public nature of the blockchain and the large number of people securing it with their computing power. As A Bank & Currency # Car Ownership Shipping Records Notary Records Power Usage
  12. 12. You can also take the technology and build your own entirely new platform and fresh blockchain 12 As A Bank & Currency BitCoin As A Platform Blockchain Platforms You can replace the currency component with any transactional data you want and build your own programming & transaction platform. It can be public, private or a hybrid. # # # # # #
  13. 13. The future is already here, it’s just not evenly distributed. William Gibson
  14. 14. The computing power required to run Blockchain-based applications is now spreading far and wide 14 Powerful System on Chip costs are dropping so quickly, they are converging with traditional embedded chip costs: Non-Recurring Engineering Cost for Customized Embedded Chips Shift to SOC with software customization here Illustrative: As SOCs drop in price, customization will shift to software, not hardware Time + + + + Embedded Unit Cost Average Embedded Cost Average SOC Cost At higher end of the market, this shift has already started: These high powered SOC chips can run the full technology stack - they are servers in their own right, no need for a data center any more. Apple Lightning HDMI Adapter • Full ARM SoC with over 256MB of RAM • Boots OS X Core when plugged in • Conducts software conversion of MPEG to HDMI in real time
  15. 15. The computing power in every-day things is already more than everything in every data center. 15 Global Installed Base of Computing Devices
 Millions of Units in 2015 1 10 100 1,000 10,000 AWS Servers PCs SmartPhones 2,222 890 5.6 Global Installed Base of Computing Storage
 Estimated Petabytes in 2014-5 1 100 10,000 1,000,000 Dropbox Facebook Microsoft AWS PC Storage 890,000 900 300300 40 Installed base and company data center sizes are estimates based on limited public information. PC & Smartphone shipments from statistia.com. Storage data estimated assuming 1TB per PC.
  16. 16. The result will be nothing less than a complete shift in how technology solutions and designed and architected 16 Modern Era Expensive Computing Post-Modern Era Free Computing High Trust Environment Centralized Internet Low Trust Environment Distributed Internet
  17. 17. @pbrody linkedin.com/in/pbrody 17

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