Blockchain

“When we link information in the Web, we enable ourselves to

discover facts, create ideas, buy and sell things, and forge new
relationships at a speed and scale that was unimaginable in the
analogue era.”
Tim Berners-Lee, 1990
 Satoshi Nakamato’s 2008 paper,
“Bitcoin: A Peer-to-Peer Electronic Cash System,”
u peer-to-peer version of electronic cash without going through a
Non-technical
financial institution.
u A trusted third party is not required to prevent double-spending rather it u Peer-to-peer electronic
is governed through the p-2-p network. transactions and
u The network timestamps transactions by hashing them into an ongoing interactions
chain of hash-based proof-of-work, forming a record that cannot be
changed without redoing the proof-of-work. u Without financial
u The longest chain not only serves as proof of the sequence of events institutions
witnessed, but proof that it came from the largest pool of CPU power. u Cryptographic proof
As long as a majority of CPU power is controlled by nodes that are not
cooperating to attack the network, they’ll generate the longest chain instead of central trust
and outpace attackers.
u Put trust in the network
u The network itself requires minimal structure. Messages are broadcast
on a best-effort basis, and nodes can leave and re-join the network at instead of in a central
will, accepting the longest proof-of-work chain as proof of what institution
happened while they were gone.
 Technical
(distributed
ledger, openly
inspected)

Blockchain

Legal Business
(transaction (exchange
validation network for
mechanism, moving values
without any between
intermediary) peers)

Web-users Cellular phone users Web/Mobile applications owners Things

Internet Growth - Segments

 Integrity

Distributed
Inclusion
power

Design
principles
Value as
Rights
incentive

Privacy Security