- By 2027, 10% of global GDP is projected to be stored on blockchain platforms according to one estimate. Blockchain technologies could reduce banks' infrastructure costs by $15-20 billion per year by 2022.
- Blockchain has the potential to save the global financial industry up to $110 billion annually according to McKinsey. By 2025, a government may collect taxes for the first time using blockchain according to the World Economic Forum.
- Early blockchain and digital currency projects failed due to issues like central authorities as single points of failure, fraud, and the double spending problem. The blockchain solved these issues through decentralization, an immutable shared ledger, and cryptographic security without the need for central authorities or
2. By 2027, 10% of global GDP is likely to
be stored on blockchain platforms.
”
Blockchain technologies could
reduce banks' infrastructural
costs by $15-20bn a year by
2022.
Santander
”
”
Gartner’s Top 10 Strategic
Technology Trends for 2017
”
”
By 2025 :
Tax collected for the first time
by a government via a
blockchain
WEF
Blockchain has potential to
save global financial
industry up to $110bn,
McKinsey ”
”
4. WHY THE BLOCKCHAIN?
CHINA 800 AD 700 BC Ancient Lidya Turkey
October 1994, Stanford Federal Credit Union: Internet banking
CONTINUING THE INTERNET REVOLUTION
DIGITAL ERA DIGITAL
CURRENCY
Rai, or stone money
8. RESHAPE THE PROBLEM : VIRTUAL CURRENCY
UNSTOPPABLE
• How to create an unstoppable cash system
without any Central authority?
TRUSTFULL
• How to establish the trust in such system
if there is no authority behind?
UNFORGEABLE
• How to avoid the double spending
problem?
SOLUTION 2008 BLOCKCHAIN
WHY THE BLOCKCHAIN?
13. Ledgers, the foundation of
accounting, are as ancient
as writing and money.
A DISTRIBUTED LEDGER
WHAT IS THE BLOCKCHAIN?
Definition N3
14. WHAT IS THE BLOCKCHAIN?
• A blockchain is a tamper-proof,
shared digital ledger that records
transactions(history) that take
place between the peers in a peer-
to-peer network.
• All the confirmed and validated
transaction blocks are linked and
chained from the beginning of the
chain to the most current block,
hence the name blockchain.
BLOCK CHAINDefinition N4
15. In the Context of protocol stack, cryptocurrency is a blockchain service
15
THE DIGITAL CURRENCY
CONSENSUS PROTOCOL
TRANSACTION PROTOCOL
THE LEDGER : SHARED DATA
LAYER
GMAIL
SMTP – SIMPLE MAIL
TRANSFER PROTOCOL
TCP/IP – TRANSMISSION
CONTROL
PROTOCOL/INTERNET
PROTOCOL
Application
Layer
Application
Protocol Layer
General
Protocol Layer
HOW IT WORKS?
STACK VUE (Blockchain System):
Definition N5
16. FEATURES
DECENTRALIZED
CONSENSUS
Ensure Consensus
within a decentralized
Network.
TRANSPARENCE
& ANONYMITY
DATA is available to the
participants.
Users are anonymous
IMMUTABILITY
Data is stored for ever
in the blockchain and
can’t be altered
*The genesis blockchain
WHAT IS THE BLOCKCHAIN?
19. N5545 N5546
Block validated by the network
and added into the blockchain (updated)
TX+Signature
Transaction cryptographically
signed and sent to the network
Nodes
ADDRESS:
1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2
ANNONYME
Transaction is complete
N5547
Block processed(Mining Process)Verified and included in a
block (timewindow)
TXj+Signature
TXi+Signature
N5547
HOW IT WORKS?
22. MORE DETAILS
• 1 Vote = 1 CPU (Proof-of-work), Byzantine general problem.
• Only miners add Blocks (Data) to the blockchain.
• Everybody could become a miner.
• One miner is rewarded at time and its block is added to the blockchain.
HOW IT WORKS?
23. The computing power of the Bitcoin
network is 7468 times higher than the
one of the cumulative 500 world
supercomputers.
X7500
THE POWER OF DECENTRALISATION
HOW IT WORKS?
24. THE POWER OF DECENTRALISATION
BTC HASH RATE : 3,576,533,297 GH/S
194 MH/S
HOW IT WORKS?
33. SMART
CONTRACT
“A smart contract is a program that
runs on the blockchain
and has its correct execution
enforced by the consensus
protocol”
They enable trustless financial
services like loans,
micropayments, and more.
Get rid of intermediaries and third
parties
BLOCKCHAIN BENEFITS?
36. CREDIT PERIOD OF 30 DAYS, 60 DAYS, 90 DAYS, 120 DAYS
USE CASE : LETTER OF CREDIT
37. LETTER OF CREDIT AS SMART CONTRACT :
• Accelerating payment and simplifying the creation
and delivery of trade payment documentation.
USE CASE : LETTER OF CREDIT
42. TUNISIA
2015, Tunisian poste adopted an
internal blockchain system with
cryptocurrency (E-dinar)
SENEGAL
Introduce a Blockchain-Based National Digital
Currency eCFA. Announced in 2016, the digital
currency will be legal tender just as the
current currency, CFA Franc. It will be
introduced in all West Africa.
SOUTH AFRICA :
Barclays Africa and its UK parent company
Barclays plc completed the world’s first trade
finance transaction using blockchain
technology.
South African Reserve Bank (SARB) plans to
launch a blockchain-based digital version of
the South African Rand
KENYA :
Kenyan Government is
implementing Blockchain-based
education management system
that would make it hard to forge
academic certificate
NIGERIA :
Nigerian government offers
support to blockchain
development group
BLOCKCHAIN STATE (AFRICA)
44. Nascent
technology
Resolving challenges such as lack
of standards transaction speed, the
verification process, and data limits
will be crucial in making blockchain
widely applicable.
Uncertain regulatory
status
Because modern currencies have
always been created and regulated by
national governments, blockchain and
Bitcoin face a hurdle in widespread
adoption by pre-existing financial
institutions if its government regulation
status remains unsettled.
Cost & volatility
Blockchain offers tremendous
savings in transaction costs and time
but the high initial capital costs could
be a deterrent.
Control, security,
and privacy
While solutions exist, including private
or permissioned blockchains and
strong encryption, there are still cyber
security concerns that need to be
addressed before the general public
will entrust their personal data to a
blockchain solution.
Integration
concerns
Blockchain applications offer
solutions that require significant
changes to, or complete replacement
of, existing systems. In order to make
the switch, companies must
strategize the transition.
Cultural adoption
Blockchain represents a complete
shift to a decentralized network
which requires the buy-in of its
users and operators.
Scalability
Data inside a blockchain
cannot be deleted.
CHALLENGES