#ICT Hub Playground

#ICT Hub Playground

Ivan Bjelajac
Passionate about Products,
People and Processes

Operating Director @ GoDaddy Europe

CEO @ Devana Technologies

Co-Founder @ MVP Workshop

President @ SBI

linkedin.com/in/ivanbjelajac
 #ICT Hub Playground

Mališa Pušonja
Passionate about developing
innovative technology

R&D engineer

Co-Founder @ MVP Workshop

Board Member @ SBI

linkedin.com/in/malisapusonja
 #ICT HUB Playground

Blockchain
opportunities and limitations
ICT Hub Playground

Belgrade – December 26th 2017

 #ICT Hub Playground

What is Blockchain?
 #ICT Hub Playground

Double Spend Problem

 #ICT Hub Playground

2 Generals Problem
 #ICT Hub Playground

Byzantine Generals Problem

 #ICT Hub Playground

Blockchain History - Bitcoin

 #ICT Hub Playground

How It Works?
Attributes
● Transparency

● Immutability

● Decentralization
 #ICT Hub Playground

How It Works?
Security
 #ICT Hub Playground

How It Works?
Proof of (X)
#ICT Hub Playground
#ICT Hub Playground
 #ICT Hub Playground

New opportunities
 #ICT Hub Playground

Smart Contracts - Ethereum Use Case

Back in ~2013
 #ICT Hub Playground

Ethereum

Ethereum is decentralized Turing-complete

virtual machine, the Ethereum Virtual
Machine (EVM), which can execute scripts
(smart contracts) using an international
network of public nodes.
 #ICT Hub Playground

Ethereum Transaction structure

use case
● nonce (anti-replay-attack)
● gasprice (amount of ether per unit gas)
● startgas (maximum gas consumable)
● to (destination address)
● value (amount of ETH to send)
● data (readable by contract code)
● v, r, s (ECDSA signature values)
 #ICT Hub Playground

Ethereum Ethereum is a blockchain with a totally new

use case feature:
It has a built-in programming language

Two types of account

■ User accounts
■ (Smart) Contracts (it's code)
 #ICT Hub Playground

Smart Contract Smart contract is a term used to describe

definition computer program code that is capable of
facilitating, executing, and enforcing the
negotiation or performance of an agreement
(i.e. contract) using blockchain technology.

The entire process is automated can act as a

complement, or substitute, for legal
contracts, where the terms of the smart
contract are recorded in a computer language
as a set of instructions.
 #ICT Hub Playground

Smart Contract
example
 #ICT Hub Playground

Smart Contract Transaction has a address to which it sends to

(unless it’s creating a contract)
execution
The destination's (address) [i.e. smart contract]
code runs

Contract's code can:

■ Send ETH to other contracts
■ Read/write storage
■ Call other contracts
#ICT Hub Playground
#ICT Hub Playground
#ICT Hub Playground

coinmarketcap
#ICT Hub Pla
yground
 #ICT Hub Playground

Industries to be
Disrupted
#EKOF Startup Centar
 #ICT Hub Playground

D
● Transparency and immutability
DRIVERS ● Faster transactions
● Reduced total cost of ownership

R RESTRAINTS
●
●
Uncertain regulatory status
Lack of awareness about blockchain technology

O
● Disruption in technology across various industries
● High adoption of blockchain technology for payments,
OPPORTUNITIES
smart contracts, and digital identities
● New breed of programmable blockchain platforms

C
● Security, privacy, and control
CONSTRAINTS ● Scalability
● Lack of engineers that understand blockchain
 #ICT Hub Playground

BLOCKCHAIN TECHNOLOGY MARKET

IS POISED TO WITNESS GROWTH
IN THE GLOBAL MARKET FOR THE PERIOD 2016–2021

Sources: Press Releases, Investor Presentations, Expert Interviews, and MarketsandMarkets Analysis
 #ICT Hub Playground

BLOCKCHAIN TECHNOLOGY MARKET SIZE

BY APPLICATION, 2015-2021 (USD MILLION)

e-Estimated; p-Projected
Source: Secondary Literature, Expert Interviews, Wall Street Blockchain Alliance (WSBA), R3 CEV Consortium
and MarketsandMarkets Analysis
 #ICT Hub Playground

New business
models
 #ICT Hub Playground

How to impact at scale through blockchain

decentralization tokenization
 #ICT Hub Playground

#1 Decentralization
 #ICT Hub Playground

Protocol Decentralization
IPFS wants to replace HTTP; in other word P2P
protocol wants to replace client/server architecture
 #ICT Hub Playground

Tokenization is the process of converting rights

#2 Tokenization to an asset into a digital token on a blockchain.
#ICT Hub Playground
 #ICT Hub Playground

How to impact at scale through blockchain

Decentralization and Tokenization are possible

because of blockchain.
 #ICT Hub Playground

New business models

 #ICT Hub Playground

Three
Blockchain
related architectures
November 22nd 2017
 #ICT Hub Playground

Two case studies of blockchain

projects

Decentralized Email service

Decentralized lending service

 #ICT Hub Playground

#1
On-chain
architecture
 #ICT Hub Playground

On-chain architecture

Business logic is done on blockchain. Smart

Contracts are must for this.

Also, all user generated data is stored in

blockchain.
#ICT Hub Playground
#ICT Hub Playground
 #ICT Hub Playground

Example Gas Costs

 #ICT Hub Playground On-chain architecture

Pros & Cons

Tamper resistance Performance/speed

Total trust in data Unknown engineering path

Code is law Ever changing cost of operations

Code (exec) is public Code (exec) is public

Search complexity
 #ICT Hub Playground

#2
Client king
architecture
 #ICT Hub Playground

Client king architecture

Large part of business & middleware logic is

done at the Client-side.

Also, all user generated data is stored not on

blockchain, but on some other network.
Blockchain stores metadata.
#ICT Hub Playground
 #ICT Hub Playground

Case study #1

Decentralized
email service
and more
#ICT Hub Playground
 #ICT Hub Playground Client king architecture

Pros & Cons

Cheap(er) Complicated client side

Total trust in a product Backward compatibility

Code (exec) is public Code (exec) is public

Data can be lost Search complexity

 #ICT Hub Playground

#2.1
Extended Client king
architecture
#ICT Hub Playground
 #ICT Hub Playground

#3
Oracles
architecture
November 22nd 2017
 #ICT Hub Playground

Oracles architecture
Because Smart Contract cannot fetch external data itself, we need to
use third party’s help. This works by using Oracle. Namely, instead of
doing everything on top of Blockchain or on the Client Side, Smart
Contracts contact trusted parties, i.e. Oracle.

Oracle watches blockchain for events and responds to them by

publishing results to the Contract again.
Lenders & Borrowers
 Oracles architecture

Pros & Cons

Performance Trust issues

Using existing technologies (AWS) Decentralization is harder to

achieve
Easily upgradable

Can do anything that any SaaS can

(e.g. Search)
How to pick
the right
architecture
November 22nd 2017
 Rule of thumb
If you need it now and for the masses pick Oracles architecture. Or, go
AWS.

Don’t use On-chain arch if people use the product for non-fintech
stuff.

Client king is for totally personal apps.

If you just promise things, go with total decentralization. People like

it, I guess.
 #BlockchainAdria 2017

Two types of blockchain

projects at the moment

Without ICO

With ICO
 #EKOF Startup Centar

Blockchain in Energy
Industry
 #BlockchainAdria 2017

Developing the global open source blockchain

To tackle pain points and drive investments in renewable energy markets

Energy Web Foundation

EWF’s mission

Foster
ICOvalue creation in the energy
sector by promoting an open,
decentralized With ICO
software infrastructure
built around blockchain technology
 EWF’s Objectives
● Identify, assess, and help bring to market blockchain applications in the energy sector
● Build an open source IT infrastructure upon which these applications can be
implemented
● Develop an ecosystem of users, application developers, and infrastructure providers
● Educate regulators and other stakeholders and provide input to standardization bodies

1 Application Taskforces Leads Supports

2 IT Infrastructure Supports Leads
3 Ecosystem Leads Supports
4 Regulation / standards Leads Supports
Assembling the largest energy sector players
To poise EWF’s blockchain for widespread use immediately after launch

EWF’s Advisory Board of 10 utilities and energy market participants from across the globe

More TBA utilities and energy market participants continue to join as EWF Affiliates
 Prioritizing the most valuable applications
To inform and demonstrate EWF’s blockchain technology development

Utilities / third parties use cryptographic identities to manage

1 Utility billing customers.

Renewable generators create certificates; certificates are issued,

2 Certificates of origin traded, tracked, redeemed, and retired on a blockchain.

Demand response aggregators (utilities / third parties) use secure

3 Demand response smart contracts to conduct instant M&V and settlement.

A market design to balance and control the grid using temporal and
4 Transactive Energy locational price signals while maintaining grid reliability. From a list of 184
applications, EWF
5 Electric vehicles
Utilities/third parties use cryptographic identities to manage identified 7 KEY
APPLICATION DOMAINS
customers, vehicles, and charging infrastructure.

Metered energy Energy efficiency aggregators use secure smart contracts to conduct
where blockchain can
6
efficiency instant M&V, settlement. offer valuable solutions to
existing pain points and
7 Supply chain tracking
Utilities/third parties use cryptographic identities to validate and unlock markets
track assets (e.g. wind turbine gearboxes, transformers)
 Cultivating a broader “ecosystem”
To bring users, app developers, and infrastructure providers to EWF’s chain

EWF is creating
this ecosystem
to support RFPs,
hackathons, and
new app
development
Pursuing an aggressive timeline Test net available at www.energyweb.org

pt

Feb

eb
Se

nF
ase

on

izo
riz
ele

or
o
201 nt H
201 ha R

201 nt H
8

9
Eve

Eve
7
Alp

en e
g

ing

tes

tes

ts
cem tur
din

Sal
tho
da
et

da

van ruc
Fun

cka

en
Me
ork l

se

ive
Up

Up
Ne loba

Ad frast
Tok
lea

Ha

-L
te
dB
tw
yg

ilia

Re

Go

In
un
plo

Aff

ta
Ro

Be
De

Start building
Proof of
Minimum Viable Test Phase MVP
Concept
Products (MVPs)

Software updates in 3 month cycles—with constant community feedback

 #EKOF Startup Centar

How to Implement
Blockchain?
#EKOF Startup Centar
#EKOF Startup Centar
#BlockchainAdria 2017
#BlockchainAdria 2017
 #EKOF Startup Centar

Thank you!
 #EKOF Startup Centar

Q&A
mvpworkshop

@mvpworkshop

mvpworkshop