Internals of Cryptocurrencies & Digital Assets

Internals of Cryptocurrencies & Digital Assets Petyo Dimitrov

2/25 Agenda What is Blockchain? Bitcoin Popular Blockchain-s Smart contracts Issues 14.10.2016

3/25 Overview “I believe Blockchain will do for trusted transactions what the Internet has done for information.” “We’re already talking about ten thousand transactions per second, or maybe more” Rometty 14.10.2016

Distributes trust vs Intermediaries 14.10.2016 4/25

What is Blockchain? 14.10.2016 5/25

Distributed Ledger 14.10.2016 6/25

Transactions, not Balance 14.10.2016 7/25

8/25 Bitcoin Overview Started in 2008 by Satoshi Nakamoto* Most popular crypto-currency Non-government controlled Fiat currency Anonymous Current Bitcoin price: ~9000 lv 14.10.2016

9/25 Bitcoin’s price 14.10.2016

10/25 Bitcoin wallet 14.10.2016

Bitcoin: transactions (1) 14.10.2016 11/25

Bitcoin: transactions (2) 14.10.2016 12/25

Bitcoin: transaction order 14.10.2016 13/25

Bitcoin: blockchain 14.10.2016 14/25

Bitcoin: conflict resolution 14.10.2016 15/25

16/25 Bitcoin: fraud 14.10.2016

Bitcoin: fraud prevention / mining 14.10.2016 17/25

Bitcoin: fraud prevention 14.10.2016 18/25

Bitcoin alternatives • • • • • • • Bitcoin + SegWit (soft fork) Bitcoin cash (8mb block hard fork) Bitcoin SegWitx2 (2mb hard fork) Bitcoin gold (ASIC resistance PoW algorithm) Ether Litecoin Namecoin (decentralized DNS) 14.10.2016 19/25

Other Popular Blockchain-s • Ethereum - aims to allow development of distributed applications (DApps) • Hyperledger Fabric - developed by IBM and Linux Foundation & aims to give developers the ability to create private blockchains 14.10.2016 20/25

Comparison of Blockchains 14.10.2016 21/25

Smart Contracts / DApps 14.10.2016 22/25

23/25 Blockchain Issues • Solution looking for a problem • Expected transaction cost increase • Performance • Security • Immutability (GDPR) 14.10.2016

Applicability of blockchain • use where it… F raud risk I ntermediaries T hroughput S table data 14.10.2016 24/25

Petyo Dimitrov 14.10.2016

Discussion panel • Norbert Kouwenhoven • Delyan Lilov • Iancho Dimitrov • Petyo Dimitrov 14.10.2016