“The Future of Money is Digital Currency”

“We need banking but we don’t need banks

anymore..!”

Bill Gates

”
Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
Gartner Hype Cycle for Emerging
Technologies, 2018

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Gartner Hype Cycle for Blockchain
Technologies, 2021

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 According to Gartner, real
blockchain contains five
elements: Distribution,
encryption, immutability,
tokenization and
decentralization. When
combined, these elements enable
organizations to take advantage
of the true benefit of blockchain.

- Blockchain-inspired solutions use three of the five elements: Distribution, encryption and immutability.
- Beginning around 2023, enterprise-ready blockchain-complete solutions will emerge. These will utilize all five
blockchain elements and offer a path to completely new business models that use dynamic smart contracts,
tokenization and decentralized operational structures.
- Moving into 2025, blockchain will incorporate complementary technologies, such as the Internet of Things (IoT),
artificial intelligence (AI) and decentralized self-sovereign identity (SSI).
Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
 Ethereum
Bitcoin
Distributed Ledger Peer-to-Peer Database

The New Internet

Chain of Blocks

dApps

Cryptocurrency
Hyperledger

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 What is Blockchain?

• A Network..?

• A Database..?

• New Internet..?

• Bitcoin..?

• An Extra-terrestrial..?

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Let’s look into the issue of Double
Spending
- Bob is tendering a Rs. 500 bill to Lisa in
exchange of a book

- Once the Lisa receives this physical Rs.

500 note, there is no way for Bob to
reuse this money for some other
transaction, as the physical currency is
now in Lisaʼs possession.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Let’s look into the issue of Double
Spending
- Letʼs consider a situation where the
money is paid in Digital form

- The sender spends the same money

at more than one place for obtaining
services or goods from multiple
vendors

- This is called double-spending

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Bitcoin - What is it?

- The Bitcoin was introduced in this world by Satoshi Nakamoto through a

research-style white paper

- Bitcoin: A Peer-to-Peer Electronic Cash System in the year 2008.

- The Bitcoin could solve the Double Spending Problem and also offered many more
advantages

- An advantage worth mentioning here is the anonymity in the transactions

- Satoshi who created the system and did transact few coins on this system is totally anonymous to
the entire world.
Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
 Bitcoin - What is it?

- Previously:
- A bank maintains a ledger recording each transaction
- This ledger is privately held and maintained by the bank

- Satoshi proposed that let this ledger be public and maintained by the
community.

- Concerns of making the ledger public

- The ledger has to be tamper-proof
- Maintain the anonymity
- The size of ledger

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Blockchain is a

Distributed
Ledger
Technology
Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
 A Network..?

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Centralized Vs Decentralized

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 What exactly is BLOCKCHAIN
• A Public and Decentralized storage of value.
• Can be documents, records, money, work, valuables, votes etc.

• An open public ledger to store information that anyone can view.

Like an Online News Paper..??

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 What exactly is BLOCKCHAIN

• A network where everyone have the same copy of an ever-growing ledger

• Distributed and Decentralized.
• Peer-to-peer network.
• Future Internet.

• Hard to Tamper/Attack
• Have to edit/delete at each copy.
• Practically impossible.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 A Datastore..?

Start Reading from Page 1 for Complete

Storyline…!!
Same Story across the Globe..!!

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Value of Decentralization
• A Tamper-resistant record on an open distributed ledger

• Can be verified by anyone with an internet connection.

• No need for any third parties to authorize transactions.

• No single point of failures and No single owner of data.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 BLOCK + CHAIN
• Data are stored as batches called Blocks ordered in a chronological manner to forms a ever-growing
Chain. i.e. A Chain of Blocks.

• Each line of Page can be a Transaction

• Block can be like Pages – combined in a sequential way to form Book (Blockchain).

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Knowing a BLOCK
• Block is just a group of data in a specific format.
• Header and Body

• Specifically important to store a “Chain of Information”.

• Each Block is Unique (have a unique hash value).

• Hashing
• A one-way mathematical function converting text to unreadable formats.
• Difficult to generate and easy to verify.

Cat 48735c4fae42d1501164976afec76730b9e5fe467f680bdd8daff4bb77674045
cat 77af778b51abd4a3c51c5ddd97204a9c3ae614ebccb75a606c3b6865aed6744e Like an Answer Book..?

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

How a Block is created
• A cryptographic puzzle is solved.
• The solution is broadcasted to all participants across the network. (Proof
of Work)
• If every participants approves the answer, the new block gets added to
the chain.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Making the Chain
• Transactions are added to a Block and signed digitally.

• A computation (cryptographic hashing) is done on each block.

• Every block stores the hash of previous block.

0d87…
3fr5… 62ud…
9e76.. 56ty …
56ty … 0d87…
9e76..

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 How Blocks are Added to chain
• A cryptographic puzzle is solved.

• The solution is broadcasted to all participants across the network. (Proof of Work)

• If every participants approves the answer, the new block gets added to the chain

Block 1 Block 2 Block n

Block 0

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 BLOCKCHAIN
• Unlike storing in a single book or a database, the blockchain is distributed
and decentralized across many parties over the internet.

• An immutable global book for trusted transaction.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Mining in Bitcoin

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Evolution of Chains

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Trust
• No need for Trusted Third Parties to perform a transaction.

• Eliminates the middleman.

• Reduces time and complexity and saves money.

• Peer-to-peer interaction for performing transactions.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Need for Decentralization
• Reduces the ability to steal or tamper information.
• If a member's copy of the information is altered, it will be rejected by the majority of members.

• Evades the necessity to rely on a single point to get things done.

• No one owns the data.
• Resources are shared and owned by all the network members.

• No one has to know or trust each other.

• Each network member has the exact copy of the information in the form of a distributed ledger.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Need for Decentralization
• There is no single point of failure as data is spread across a distributed
network.
• Slowing down of network or dependent failure of components is likely to happen.

• Improved security as hackers to conquer multiple systems to bring down the

blockchain network.

• Greater transparency as every new information is updated in real-time.

• Members of the network are automatically updated with the changes.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Disruptions with Blockchain
• Banking
• Primary role is the storage of value as Money.

• Blockchain can be the digitized, secure, and tamper-proof ledger.

• Moving from CBS to Decentralized Banking.

• Even physical branches can be replaced by the digital ledger.

• Reaching the Unbanked Population over internet (through Dapps)

• Faster Payments reducing the intermediaries in international payments, conversions.

• Better Identity, KYC, Auditing features through smart contracts.

• Kick starting Innovations like P2P transfers, DeFi etc.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
 Disruptions with Blockchain
• Banking Adoptions
• According to Accenture. Banks could save $8 billion or more per year if they used the
tech for their transactions. Blockchain can reduce 30% of banks’ infrastructure
costs.

• Currently, 69 percent of banks are experimenting with blockchain technology to

make their services more secure, seamless and transparent.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Disruptions with Blockchain
• Supply chain
• End-to-end traceability and tamper-proof records for transactions.

• Efficient verification of goods and authenticity of stakeholders.

• Eliminates chances of fake products/ illegal transactions.

• Reduces settlement time, human errors, delays and audit trials.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

• Traditional Supply chain

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

• Blockchain enabled supply chain

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
 Disruptions with Blockchain
• Taxation

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Other Application Areas
• Real estates: Land ownership
• Healthcare: Record securely the patient’s data
• Finance: Reduce the taxes and intermediaries, anti-money laundering,
cross border payment.
• Cybersecurity: DDOS attacks
• Giving the power back to the user: Own your data and share it securely
with whom you want ( DID).

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Beyond the Hype

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

How the World see Blockchain?

- Blockchain isn’t a new technology anymore.

- As per PwC survey on executives in 2018, 84% are actively

looking into blockchain adoption.

- The recent PwC Time for Trust 2020 report predicts

blockchain have potential to add $1.76 trillion to global
economy and 40 million jobs by 2030.

- People started realising Blockchain beyond Bitcoin and

Cryptos..!!

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 From Hype to Adoption
- More than 50% of global organizations view blockchain as a
strategic priority.

- Global spending on Blockchain Solutions is $4 billion (approx.) in

2020 and expected to reach $11.7 billion by 2022 and $18
billion by 2024

- Blockchain Market-size is expected to be $39 billion in size by

2025.

- There are 3,000 blockchain startups registered on AngelList.

- The US accounts for 56% of the global blockchain investments.

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022
Blockchain Economic Impact

Global Blockchain Impact 2025 Global Blockchain Impact 2030

$422 billion $1756.5 billion
China $91.2bn China $440.4bn
United States $91.0bn United States $407.2bn
Germany $22.4bn Germany $95.3bn
Japan $17.0bn Japan $72.3bn
UK $16.2bn UK $72.2bn
India $16.8bn India $62.2bn

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Major Areas of Economic Impact

In 2030
Identity and Credentials $224bn
Provenance and Traceability $961.6bn
Securitisation and Payments $433.2bn
Agreement Thresholds and Disputes $73.5bn
Loyalty and Rewards $53.7bn

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Which industries are leading in the
Blockchain Space?

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Public Sector Adoption in India

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

Do you really need
Blockchain?

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022

 Thank you…!

Thiagarajar School of Management, Madurai | Blockchain Technology | 2022