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Implementing the business logic as a decentralized Smart Contracts

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Digital Currency Summit
Digital Currency Summit

"Cryptocurrencies future/regulation" conference held in Gibraltar (on 9th May 2017). Speaker: Martin Koeppelmann from Gnosis

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Implementing the
 BUSINESS LOGIC AS
 DECENTRALIZED SMART CONTRACTS
 
 Digital Currency Summit Gibraltar 2017
Ethereum Blockchain | An Overview Cryptographically Secure Uses tried and true public/ private signature technology. Blockchain applies this technology to create transactions that are impervious to fraud and establishes a shared truth. Decentralized There are many replicas of the blockchain database and no one participant can tamper it. Consensus among majority participants is needed to update the database. Data & Smart Contract The Ethereum blockchain can store both data and Smart Contract (“Logic”) in the blockchain Immutable Ledger Blockchain is a write-once database so it records an immutable record of every transaction that occurs. The blockchain provides a trust framework that allows systems to be developed for actors to interact reliably and securely
Blockchain Characteristics Blockchain technology enables decentralized ledgers and secure value transfer mechanisms to provide significant infrastructure and business processes for financial institutions. Blockchain Characteristics Decentralized Programmable and Secure Immutable Digitized Benefits ● Simplicity and efficiency through use of digital identity of all actors in the system ● Auditability and improved access by storing coded references to documents and signatures ● Ability to trade physical assets through representative digital token of value with provenance tracking ● Eliminates need for central approving authority for transaction and related latency ● No single point of failure or attack ● Reduced need for supervision and associated costs ● Reduced settlement risks and transaction costs ● Transactions are cryptographically signed using industry leading protocols like SHA-256 ● Smart contracts enable data and process to co-exist reducing process redundancies and errors ● Support for multi-signature authentication and authorization helps further reduce fraud ● Immutable ledger for improved auditability and record keeping ● Reduced risk of accounting fraud ● Improved access and monitoring for regulators
Blockchain Configurations There are three patterns of blockchain configurations to suit varied use case needs ● Trust-less due to consensus algorithm enabling anyone to join as a participant ● Must be expensive and difficult to publish a block to prevent fraud and spam (proof of work/mining) ● Examples include the public Ethereum and Bitcoin networks ● Digital currency or tokens (e.g. Ether) are used to pay to process transactions and smart contracts Private Blockchains Consortium Blockchains Public Blockchains ● Consortium blockchains are also called Semi-Private or Shared Permissioned Blockchains ● Only verified participants are allowed to publish blocks ● Optimized consensus algorithms enable much faster transaction times than public networks ● Does not require digital currency for transaction processing, though tokens may be valuable ● Private blockchains are also called Permissioned Blockchains or Sandboxes ● Designed for rapid application development and instant deployment ● Suited for single enterprise solutions that can be configured for high throughput ● Does not require digital currency for transaction processing, but tokens could be useful DetailsConfiguration
Connecting buyer and seller with existing processes
Integrating blockchain in a decentralised energy solution Pairing Construct: − Smart contract C2B − Meter data − Load profiles − Prognostic info Prosumer SELLER Local Business
 BUYER Direct Marketer Energy Supplier Ethereum Blockchain and Smart Contracts
The Ethereum blockchain is a transactional and business logic framework Prosumer SELLER Ethereum Blockchain and Smart Contracts Financial Institutions Utilities Tele- communications Self-Sovereign Identity

 BASIC TOKEN CONTRACT
 (conditional tokenized payments) COLLATERAL TOKEN TOKEN OUTCOME 1 TOKEN OUTCOME 2 Oracle
 (data feed)
Contact Martin Köppelmann @koeppelmann
 Gnosis Inc. martin@gnosis.pm

More Related Content

Implementing the business logic as a decentralized Smart Contracts

  • 1. Implementing the
 BUSINESS LOGIC AS
 DECENTRALIZED SMART CONTRACTS
 
 Digital Currency Summit Gibraltar 2017
  • 2. Ethereum Blockchain | An Overview Cryptographically Secure Uses tried and true public/ private signature technology. Blockchain applies this technology to create transactions that are impervious to fraud and establishes a shared truth. Decentralized There are many replicas of the blockchain database and no one participant can tamper it. Consensus among majority participants is needed to update the database. Data & Smart Contract The Ethereum blockchain can store both data and Smart Contract (“Logic”) in the blockchain Immutable Ledger Blockchain is a write-once database so it records an immutable record of every transaction that occurs. The blockchain provides a trust framework that allows systems to be developed for actors to interact reliably and securely
  • 3. Blockchain Characteristics Blockchain technology enables decentralized ledgers and secure value transfer mechanisms to provide significant infrastructure and business processes for financial institutions. Blockchain Characteristics Decentralized Programmable and Secure Immutable Digitized Benefits ● Simplicity and efficiency through use of digital identity of all actors in the system ● Auditability and improved access by storing coded references to documents and signatures ● Ability to trade physical assets through representative digital token of value with provenance tracking ● Eliminates need for central approving authority for transaction and related latency ● No single point of failure or attack ● Reduced need for supervision and associated costs ● Reduced settlement risks and transaction costs ● Transactions are cryptographically signed using industry leading protocols like SHA-256 ● Smart contracts enable data and process to co-exist reducing process redundancies and errors ● Support for multi-signature authentication and authorization helps further reduce fraud ● Immutable ledger for improved auditability and record keeping ● Reduced risk of accounting fraud ● Improved access and monitoring for regulators
  • 4. Blockchain Configurations There are three patterns of blockchain configurations to suit varied use case needs ● Trust-less due to consensus algorithm enabling anyone to join as a participant ● Must be expensive and difficult to publish a block to prevent fraud and spam (proof of work/mining) ● Examples include the public Ethereum and Bitcoin networks ● Digital currency or tokens (e.g. Ether) are used to pay to process transactions and smart contracts Private Blockchains Consortium Blockchains Public Blockchains ● Consortium blockchains are also called Semi-Private or Shared Permissioned Blockchains ● Only verified participants are allowed to publish blocks ● Optimized consensus algorithms enable much faster transaction times than public networks ● Does not require digital currency for transaction processing, though tokens may be valuable ● Private blockchains are also called Permissioned Blockchains or Sandboxes ● Designed for rapid application development and instant deployment ● Suited for single enterprise solutions that can be configured for high throughput ● Does not require digital currency for transaction processing, but tokens could be useful DetailsConfiguration
  • 5. Connecting buyer and seller with existing processes
  • 6. Integrating blockchain in a decentralised energy solution Pairing Construct: − Smart contract C2B − Meter data − Load profiles − Prognostic info Prosumer SELLER Local Business
 BUYER Direct Marketer Energy Supplier Ethereum Blockchain and Smart Contracts
  • 7. The Ethereum blockchain is a transactional and business logic framework Prosumer SELLER Ethereum Blockchain and Smart Contracts Financial Institutions Utilities Tele- communications Self-Sovereign Identity
  • 8. 
 BASIC TOKEN CONTRACT
 (conditional tokenized payments) COLLATERAL TOKEN TOKEN OUTCOME 1 TOKEN OUTCOME 2 Oracle
 (data feed)