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Blockchain
and Smart Contracts
The technology likely to have the greatest impact on
the next few decades has arrived
Fall 2016
Kudrenko Oleg
EXPERIENCE
10 years of developing
06 years with e-Commerce
03 years with Blockchain
THE TECHNOLOGICAL REVOLUTION
THE TECHNOLOGICAL REVOLUTION
Mobility
THE TECHNOLOGICAL REVOLUTION
Mobility Social Web
THE TECHNOLOGICAL REVOLUTION
Internet of Things Mobility Social Web
THE TECHNOLOGICAL REVOLUTION
Big DataInternet of Things Mobility Social Web
THE TECHNOLOGICAL REVOLUTION
Big DataInternet of Things Mobility Social Web The Cloud
THE TECHNOLOGICAL REVOLUTION
Big DataInternet of Things Mobility Social Web The Cloud
Machine Learning Drones & Robotics
Big Data
Internet of Things
Mobility
Social Web
The Cloud
Machine Learning Drones & Robotics
BLOCKCHAIN
THE INTERNET OF
INFORMATION
Web Sites
THE INTERNET OF INFORMATION
Web Sites
Photos
PDFsDocs INFORMATION
Web Sites Photos
PDFs
EmailPPT Slides
Docs
THE INTERNET OF INFORMATION
INFORMATION
ASSETS
VotesArt
Energy
Identity
Visual
Art
Film
Reputation
Aftestations
Carbon
credits
Music
Social
Capital
ASSETS
Money Intellectual
property
Contracts
Other
Financial
Assets
Other
Swaps
Futures
Bonds
Stocks
IOUs
Premiums
Receivables
Coupons
Deeds
Loyalty
points
NEEDED:
AN INTERNET OF VALUE
ASSETS
VotesArt
Energy
Identity
Visual
Art
Film
Reputation
Aftestations
Carbon
credits
Music
Social
Capital
ASSETS
Money Intellectual
property
Contracts
Other
Financial
Assets
Other
Swaps
Futures
Bonds
Stocks
IOUs
Premiums
Receivables
Coupons
Deeds
Loyalty
points
NEEDED:
THE MIDDLEMAN
THE MIDDLEMAN
INTERNATIONAL WIRE TRANSFER
Sender Bank
Sender Bank
INTERNATIONAL WIRE TRANSFER
Sender Bank
INTERNATIONAL WIRE TRANSFER
Receiver Bank
CORRESPONDENT
Sender Bank Slow Bank Receiver Bank
CORRESPONDENT
INTERNATIONAL WIRE TRANSFER
USD EUR
CORRESPONDENT
INTERNATIONAL WIRE TRANSFER
Sender Bank Slow Bank Receiver Bank
RETHINKING
THE FINANCIAL
SERVICES
INDUSTRY
10^9
AN INTERNET OF VALUE
ASSETS
VotesArt
Energy
Identity
Visual
Art
Film
Reputation
Aftestations
Carbon
credits
Music
Social
Capital
ASSETS
Money Intellectual
property
Contracts
Other
Financial
Assets
Other
Swaps
Futures
Bonds
Stocks
IOUs
Premiums
Receivables
Coupons
Deeds
Loyalty
points
NEEDED:
WHO IS SATOSHI NAKAMOTO?
WHAT IS
MONEY?
WHAT IS
MONEY?
accumulation of funds
cost estimate
exchange (absolute liquidity)
VOLATILITY
ЕЙ
ия?
ПОПУЛЯРНЫЕ ВОПРОСЫ
О БИТКОИН СРЕДИ ПОЛЬЗОВАТЕЛЕЙ
Что делает Биткоин интересным?
Является ли биткоин средством инвестирования?
Как можно купить биткоины?
Как хранить биткоины?
Насколько безопасно хранить биткоины?
Как потратить биткоины?
FAQ
BITCOIN & BUSINESS
What merchant need to know to sell
products for Bitcoins
BLOCKCHAIN
DECENTRALIZATION
DECENTRALIZATION OF INFORMATION
Encyclopedia Britanica Wikipedia
Centralized
Content
Decentralized
Content
HOW BLOCKCHAIN PROCESS
BITCOIN TRANSACTIONS
Wake up,
Neo…
User Internet
ASYMERTIC ENCRYPTION
Wake up,
Neo…
User Internet
Private Key Public Key
anyone can encrypt
all know message owner
ASYMERTIC ENCRYPTION
Wake up,
Neo…
User Internet
Private Key Public Key
anyone can encrypt
all know message owner
ASYMERTIC ENCRYPTION
Wake up,
Neo…
User Internet
Private Key Public Key
anyone can encrypt
all know message owner
can encrypt only private key owner
ASYMERTIC ENCRYPTION
Private Key Public Key
anyone can encrypt
all know message owner
What is ENCRYPTED with one key Key Can be DECRYPTED with the other
What is ENCRYPTED with one key KeyCan be DECRYPTED with the other
KEY PAIR
ASYMERTIC ENCRYPTION
Wake up,
Neo…
HASH FUNCTION
Wake up,
Neo…
HASH FUNCTION
0101010101010101010
10101010101001110101
01010101010010000101
10011011010101010100
00101011101001001100
Wake up,
Neo…
32SNa8gkearJ
ATeyAfTjX7ny
HASH FUNCTION
0101010101010101010
10101010101001110101
01010101010010000101
10011011010101010100
00101011101001001100
32SNa8gkearJ
ATeyAfTjX7ny
Wake up,
Neo…
HASH FUNCTION
0101010101010101010
10101010101001110101
01010101010010000101
10011011010101010100
00101011101001001100
32SNa8gkearJ
ATeyAfTjX7ny
Wake up,
Neo…
0101010101010101010
10101010101001110101
01010101010010000101
10011011010101010100
00101011101001001100
8d9029Ddidbvt
gOIDpv9d9d3d
Wake up.
Neo…
BUY Bob and Alice both have
Bitcoin "wallets" on their
computers. Alice want to
buy some goods from
Bob using Bitcoin.
Wallets are provides access to
multiple Bitcoin addresses.
Wallets are provides
access to multiple Bitcoin
addresses.
Wallets are provides access to
multiple Bitcoin addresses.
3 2 S N a 8 g k e
a r J ATe y A f T j
X 7 n y q z t W s
D 4 m n b
An address is a string of
letters and numbers.
Client sign with Alice private
key Bitcoin transaction
which tell that Alice send
some amount to Bob.
Alice client send signed
transaction to miners.
Miners computers bundle
the transactions of the past
10 minutes into a new
"transaction block."
The mining computers
calculate new hash values
based on a combination of
the previous hash value,
the new transaction block
and a nonce
Nonce
Hash
value
Nonce
Hash
value
Hash
value
As time goes on, Alice's
transfer to Bob gets buried
beneath other, more recent
transactions. For anyone to
modify the details require
redo the work of all the
subsequent miners. Such a
feat is nearly impossible.
IMMUTABLE
SMART CONTRACTS
CONTACTING EXTERNAL SERVICES
CONTACTING EXTERNAL SERVICES
Bitcoin
Blockchain
Ethereum
Blockchain Internet
CONTACTING EXTERNAL SERVICES
Bitcoin
Blockchain
Ethereum
Blockchain Internet
CONTACTING EXTERNAL SERVICES
Bitcoin
Blockchain
Ethereum
Blockchain Internet
Bitcoin
Blockchain
Ethereum
Blockchain Internet
CONTACTING EXTERNAL SERVICES
Bitcoin
Blockchain
Ethereum
Blockchain Internet
Bitcoin
Blockchain
Ethereum
Blockchain Internet
Oraclize
CONTACTING EXTERNAL SERVICES
Bitcoin
Blockchain
Ethereum
Blockchain Internet
Oraclize
ENFORCING ON-CHAIN PAYMENTS
FLIGHT DELAY INSURANCE
FLIGHT DELAY INSURANCE
BLOCKCHAIN SMART
CONTRACT
Customer Sales
Insurance rate provider
Flights datafeed
Scheduler
Deloitte
Payment processorBank
FLIGHT DELAY INSURANCE
BLOCKCHAIN SMART
CONTRACT
Customer Sales
Insurance rate provider
Flights datafeed
Scheduler
Deloitte
Payment processorBank
1.Get Insurance Rate
2. Gets insurance rate
3. Create insurance
4. Verifies insurance rate 5. Verifies flight info
6. Departure info
7. Insured case
11. Signed payment approval
14. Insurance case validation
12. Insured case
8. Insured case payment
10. Signed payment approval
9. Make payment
13. Flight data
Flight statistic
POINT OF INTEREST
MICROPAYMENTS
CONCEPT
THANKS FOR ATTENTION
FB: Oleg Kudrenko
oleg.kudrenko@gmail.com

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BlockChain, Bitcoin and Smart Contracts - Oleg Kudrenko