Understanding blockchain space, where it is and where it is heading towards...Journey from 1st Gen Bitcoin to 2nd Gen smart contracts to now more scalable, interoperable and faster blockchains with better governance model around them...

1. Blockchain technology is a powerful decentralised technology disrupting FS
Industry and other Industries at a global scale. ..
Is it an opportunity or threat only time will tell…
Manish Gupta
guptamanishgm@gmail.com

2. It is a vast subject to introduce…
But, it is an amazing space to explore…Future in creation!!!

3. Future technology has arrived, which will transform
every Industry
• FinTech, Insurance, Farming, Healthcare, Media/Content…
• Potential to disrupt the disruptors (AirBnB, UBER)
Internet of Money | Money Protocol | Trust Propotocol
(Internet: Freedom to exchange information “e-mails”)
• Bank in your pocket (You can send digital assets to anyone across the
word without any intermediary banks and without any checks – solving
the problem of trust), Wallet to Wallet transfer of digital assets
Characteristics
• Decentralised,
• Immutable (tamper proof record keeping (e.g. Land Registry)),
• Cryptography,
• Privacy - Anonymous transactions,
• scarcity
Overview
Blockchain - Empowering technology for peer to peer value transfer /
Potential threat for the Intermediaries (banks and remittances Industry…)

4. Token types:
Tokens
Variety ofTokenTypes – Payment tokens, Utility tokens, Asset tokens
Payment
Tokens
(Bitcoin,
Litecoin, Dash)
Asset tokens
(REAL)
UtilityTokens
(Ethereum -
Augur - REP)
(SIA,CVC, NEO)
Regulators
are
confused!!!

5. Actors/Participants:
• Developers, miners, end users, investors, Exchanges
Cryptography:
• Each data block has a hash (digital fingerprint), linking blocks into
blockchain
• Hash is fixed length - Hash has characteristic called “difficulty level” to
make it difficult to calculate hash for a block (Mathematical problem to
solve – called Proof of Work (PoW))
Mining:
• There is a huge reward to solve this mathematical problem, which is
called mining, each block reward for bitcoin is 12.5 bitcoins
Challenges:
• Unregulated Industry - KYC, AML regulations
• Government compliance (Threat or Opportunity): Japan, US, UK,
South Korea, Dubai, Hong Kong, Malta, Switzerland, China, India);
Ecosystem
Actors,Tech, Mining andChallenges

6. Actors/Participants:
• Developers, miners, end users, investors, Exchanges
Cryptography:
• Each data block has a hash (digital fingerprint), linking blocks into
blockchain
• Hash is fixed length - Hash has characteristic called “difficulty level” to
make it difficult to calculate hash for a block (Mathematical problem to
solve – called Proof of Work (PoW))
Mining:
• There is a huge reward to solve this mathematical problem, which is
called mining, each block reward for bitcoin is 12.5 bitcoins
Challenges:
• Unregulated Industry - KYC, AML regulations
• Government compliance (Threat or Opportunity): Japan, US, UK,
South Korea, Dubai, Hong Kong, Malta, Switzerland, China, India);
Ecosystem
Actors,Tech, Mining andChallenges

7. Bitcoin and Ethereum used to be main use case…After
Bitcoin price crash from $18000 to $6000 in early 2018
people have started doubting it as a leader…

8. Use Cases and Marketplace:
• Marketcap for cryptocurrencies is $400Billion+,
expected to touch $1+ Trillion by 2020
• [Perspective: Total Gold as Asset class is c$7 Trillion], with
1600+ cryptocurrencies listed in coinmarketcap.com
• Bitcoin is the most popular cryptocurrency use case,
which has survived through test of time (9 years old)
Popular name for all other cryptocurrencies is alternate
coins (Alt coins)
• Top use cases by market capitalisation are Ethereum,
Bitcoin Cash, EOS, Ripple, ADA (Cardano), Litecoin,
IOTA, NEO etc.
• Content publishing (Steem), exchanges to buy and sell
cryptocurrencies (Bittrex, Bitfinex, Binance, Bancor),
Tokenise physical assets (Polymath), Augur (Predictive
analysis), Golem (distributed supercomputer) etc.
UseCases
Marketplace is buzzing with Innovation!!!

9. Since 2008 there are prominently 3 generations of growth
from digital peer to peer value transfer (Bitcoin – Gen 1)
to smart contracts (Ethereum – Gen 2) and now scalable
and interoperable blockchains (NEO, EOS , TRON and
ADA – Gen 3) with good governance…

10. Gen 1: Bitcoin
• Started in 2009 and stormed the world
• Satoshi Nakamoto published a paper in 2008, perfect timing (time of
financial meltdown)
Problems and solutions:
• Establish trust in the decentralised environment –To transact with
strangers without an intermediary
• Double spend problem in the digital realm – node confirmations
• Reliability - decentralised protocol ensuring that digital asset will
move fromA (sender) to B (receiver) – Protocol
• Fraud - Immutability of data (Using cryptography)
Current Issues:
• Governance – Hard forks
• Bitcoin Cash
• Bitcoin Gold
• Bitcoin diamond, private
• Settlement time – Block created every 10 minutes
Capability
Capability of the decentralised ecosystem has grown from Gen 1, Gen 2 to now @Gen 3,
since 2009…

11. Gen 2: Ethereum Smart Contracts
• Changed the blockchain paradigm by introduction of smart contracts
• Whole world transactions can happen using smart contracts, which can
automatically execute once the conditions are met
Problems and solutions:
• Wide variety of solutions can be built using Ethereum platfrom
• Advertising – BAT
• Predictive Analytics – Augur
• OmiseGo – Open payments platform
• Civic – Identity management
Current Issues:
• Scalability (e.g. Cryptokitties)
• Vitalik Buterin (Founder of Ethereum) - Announced PoC for ‘Sharding’,
which would potentially increase the processing speed of blockchain
Capability
Capability of the decentralised ecosystem has grown from Gen 1, Gen 2 to now @Gen 3,
since 2009…

12. Gen 3: NEO, EOS, ADA, TRON
ADA (Cardano)
• Solving 3 problems – Governance, Scalability and Interoperability
EOS
• Mainnet launched in June 2018
• Improve upon the Ethereum
NEO – Ethereum of China
• May run whole country operations on it (Scalable)
Current Issues:
• Still in infancy, not fully operational, some (EOS) got mainet just
launched, some (ADA) are launching testnets end of June
Capability
Capability of the decentralised ecosystem has grown from Gen 1, Gen 2 to now @Gen 3,
since 2009…

13. FS Industry, many other Industry sectors and
even Governments and experimenting with the
DLT solutions…Interesting huh!!!

14. Unprecedented innovation in this space
• Financial ecosystems
• Buy/Sell properties using Bitcoin
• Diamond Industry (IMB using Hyperledger) –Trace diamond
from mine to users hand (tackling fraud)
• Private blockchain initiatives – “R3 initiative” – Consortium of
more than 200 firms in R&D [Goldman Sachs, J.P. Morgan,
BOA, Barclays] - geared towards financial world (Platform
Corda)…
Solution
Moving into other sectors such as diamond Industry supply chain and shipping Industries,
where systems are in silos and huge frauds!!!

15. IT Giants entering the market (with caution):
Oracle
• Teaming up with Banco de Chile to log interbank transactions
on Hyperledger
• Nigeria's government - custom and import duties using DLT
• Pharmaceutical companies - track and trace batches of
medicine
Amazon:
• AWS - Introduced templates for Ethereum and Hyperledger
Fabric
Microsoft:
• Partnership with Ethereum based startup, ConsenSys to
deliver Ethereum Blockchain as a Service (E BaaS) – On Azure
Solution
IT Giants testing this space!!!

16. Security landscape:
• People are getting familiar with 2 factor authentication – To
protect their digital assets there is a need to learn security traits
to ensure safekeeping of digital assets [10s of Million worth of
cryptocurrency tokens were stolen from major exchanges (e.g.
NEM)]
• Cryptography is key feature in blockchain ecosystem (Hash)
• Wallets – Wallets on Exchange, where you do not control your
private keys; Software Wallets on your computer (Exodus) –You
own your private keys; hardware wallet (Trezor etc.) –You own
your keys on hardware wallet, where firmware of the hardware
stores the private keys and never leave hardware device.
• Recovery – “Seed” - 12 words in a sequence - used to recover your
digital assets, in case your device crashes
Solution
Security!!!

17. It is too early to judge the future of this
worldwide fundamental of Trust and
global political power distribution!!!

18. Early days:
• Industries and Governments are Testing this space
Blockchain Fundamentals:
https://anders.com/blockchain/
Satoshi Nakamoto's White Paper:
https://bitcoin.org/bitcoin.pdf
Popular Use Cases by market capitalisation:
https://coinmarketcap.com/
TED Talk [By Don Tapscott]:
https://www.ted.com/talks/don_tapscott_how_the_blockchai
n_is_changing_money_and_business
Ecosystem
Still Early Days…Long road ahead to travel…

19. Feel free to post your questions and we can try
and learn this interesting space in collaboration
with the Community all around us!!!