CRYPTOCURRENCY IS…

Blockchain and Distributed Ledger Technology

 WHAT IS BLOCKCHAIN / DISTRIBUTED LEDGER
TECHNOLOGY?

It’s Software

The technology upon which Bitcoin and other cryptocurrencies are built

In essence it’s simply a type of database

Unlike standard databases which store data in centralized, relational tables, blockchain is
an open, peer-to-peer network

Favors communal functionality in lieu of a centralized controlling entity

It’s a shared public ledger

 WHAT IS BLOCKCHAIN / DISTRIBUTED LEDGER
TECHNOLOGY?

A blockchain allows a network of individuals to share potentially valuable data in a tamper-proof way

Data is collected into groupings called blocks. Each block has a certain storage capacity so, when it is
filled, it is linked to the previously filled block forming a chain of data — hence the name blockchain

The type of data in question often depends on the blockchain’s industry or purpose

For example, a cryptocurrency-based blockchain (i.e. Bitcoin) stores information on crypto

transactions, including the trader, recipient, and amount of currency being exchanged
BRIEF HISTORY OF BLOCKCHAIN

Concept first proposed in Stuart Haber and W. Scott Stornetta in a cryptography research project to
create digital timestamps

Studied and experimented with in decade + after that

In 2008 a developer “Satoshi Nakamoto” introduced a model that would become the first functional
blockchain called “Bitcoin” a peer to peer digital currency using a public ledger for trading

Who is Satoshi??????????

https://bitcoin.org/bitcoin.pdf
HOW DOES A BLOCKCHAIN WORK?
HOW DOES A BLOCKCHAIN WORK?
 BENEFITS OF BLOCKCHAIN

Decentralized and Transparent

Most blockchains are entirely open-source software - Anyone and everyone can view its code.

Immutable and uncensored - No real authority on who controls the code or how it is edited

Crowdsourced oversight - Anyone can suggest changes or upgrades to the system

Open to anyone to contribute development on - If a majority of the users agree that the new version of the
code with an upgrade is sound and worthwhile it can be updated

https://github.com/bitcoin/bitcoin/releases
 BENEFITS OF BLOCKCHAIN

Security and Redundancy

New blocks are always stored linearly and chronologically - always added to the “end” of the blockchain.

All copies of a blockchain are cross-referenced against each other

Hacking a blockchain requires a hacker to simultaneously control and alter 51% or more of the copies of the
blockchain

Taking part in the network is more incentivized than attacking it

https://bitnodes.io

https://www.blockchain.com/explorer?view=btc
 NEGATIVES OF BLOCKCHAIN

Transaction Speed

Data storage limitations

Permanency

Lack of clear regulation

Environmental
 USE CASES FOR BLOCKCHAIN

Banking & Finance

Settlement

https://wallethub.com/edu/cc/credit-card-transaction/25511

Defi

Banking the unbanked

 USE CASES FOR BLOCKCHAIN

Currency - Money without borders or central control

Supply Chains - Tracking origin and journeys of products

Smart Contracts - Automating deals

Healthcare - Medical Records

Property Records - Physical and Digital

www.coinmarketcap.com
 LOOKING TO THE FUTURE

The technology will INDEED continue to be developed, expanded upon and evolve

Will continue to grow as a mainstream asset class

Governments will develop central bank digital currencies

Some blockchain products and solutions will succeed and become widely used while many more
will fail

48 percent of dot-com companies founded since 1996 were still around in late 2004… How many
cryptocurrencies will survive?