Blockchain Technology

Financial Technology (FinTech)

 FinTech is an innovation in economic industry composed of companies that
use technology to make financial services more efficient
 FinTech companies are consist both startups and established financial and
technological companies
 FinTech’s purpose: to disrupt the existing financial systems and companies
by replacing / enhancing the existing financial services with the usage of
technology.
 3

FinTech Infrastructure
Mobile
Big Data
Comm.

FinTech

Cloud Block
Service chain

Biometrics

Courtesy: Tso, Raylin. Tutorial Blockchain Technology and Its Applications.

 4

Blockchain
 A continuously growing list of records (blocks) which is maintained in a
distributed network
 A shared ledger secured from tampering and revision

 Concepts used in Blockchain:

 Hash functions
 Time-stamping
 Proof-of-work

 Each block contains a timestamp and a link to a previous block (the hash of
the previous block)
 5

Blockchain
Bitcoin
Cryptocurrency based on Blockchain Technology
 7

What is Bitcoin?

Source: Franco, Pedro. Understanding Bitcoin. 2015.

 8

Introduction to Bitcoin
 In 2008, an unknown person or group of people under the name Satoshi
Nakamoto write a white paper describing the protocol of Bitcoin
 In 2009 Bitcoin is released as open source software

 bitcoin: the currency used in Bitcoin network

 The heart of Bitcoin network: a distributed database (ledger) holding the

transactions that have occurred in the past as well as the current holders
of the funds
 9

Decentralized System
 Bitcoin is based on a peer-to-peer network of computers running the
software
 The connected computers are known as nodes

 The monetary policy in Bitcoin follows a simple rule:

 “The final monetary base is fixed at around 21 millions of bitcoins and new
bitcoins are minted at a planned schedule and paid to users who help secure the
network”

 Control in a peer-to-peer network is more subtle because changes in a peer-

to-peer network have to be agreed by a majority of the peers at least
 10

Decentralized System
 Decentralized system is more resilience and robust against attacks either by
insides or by external forces
 Bitcoin does not require a central trusted party to operate

 Bitcoin is designed to resist the attacks of malicious participants in the peer-

to-peer network
 Note: as long as the malicious participants do not control the majority of the
network

 Bitcoin solves the double-spending problem in a distributed financial

database
 11

Open Source
 Bitcoin is an open source software
 Its source codes are available for anyone to use, modify, and redistribute free of charge

 Open source license grant the user the right to use, copy, modify, and redistribute
the software
 Two types of open source license:
 Copyleft: the licenses impose the obligation to distribute derived works under the same
license. E.g. GNU Public License (GPL)
 Permissive: the licenses impose very few restrictions on the redistribution of the
software, usually just that the derived software acknowledges the original software and
retains the copyright notice. E.g. BSD license, MIT license, and the Apache license
 12

Open Source
 Forking: the process of starting a new independent software project from a
copy of an original project
 One problem faced by many open source projects: tragedy of the commons
 Although many people benefit from an open source project, few developers might
have an incentive to contribute to it
 Many open source projects face difficulties in getting appropriate funding or
development time
 13

Other Applications of Blockchain

Technology ??
 https://www.youtube.com/watch?v=FkUn86bH34M

 https://www.youtube.com/watch?v=G3psxs3gyf8
 14

Blockchain Technology Adoption in

Supply Chain
 https://www.youtube.com/watch?v=jMihd-gqb6I

 https://www.youtube.com/watch?v=QDBFqlqPFVM

 https://www.youtube.com/watch?v=hpFQgtad8QQ
 15

Blockchain Technology in
Healthcare
 https://www.youtube.com/watch?v=Oga9J0NFwAA

 https://www.youtube.com/watch?v=CsxjlsBYmrI

 https://www.youtube.com/watch?v=md0K6nGewTU

 https://www.youtube.com/watch?v=J-jD3vtZj38

 https://www.youtube.com/watch?v=FYdDxA-RHXc
 16

Discussion
 Find all possible applications of Blockchain technology and write an essay
about:
 The main idea of the application of Blockchain technology in the corresponding
field
 How the application works
 Group discussion result on how this application could impact human life or
environment. Elaborate your group reasoning.
 Do not forget to list out all references that support your findings.