Blockchain & Cryptocurrencies Explained

Blockchain & Cryptocurrencies Explained

TechNovation Day: Blockchain

Jorge Martinez-Navarrete, OICT & Vanessa Ko, Munk School of Global Affairs, University of Toronto.

RUSLAN BEYDULLAYEV
Subject: İngilis dilində akademik və işgüzar kommunikasiya-3
Teacher: Ph.d Ziyafət Hüseynova
Imagine you are a small farmer and your local land registry office is destroyed by a natural disaster.

Having distributed copies of all land registries is useful in case of loss

Being able to compare multiple trusted the copies is useful against fraud
Town C
Local Registry
Town B
Local Registry
Town A
Local Registry
Town D
Local Registry
- Lost -
Tampered
Accurate
Also Accurate!
How could we prepare against this risk?

A distributed ledger technology can help solve this type of problem. “Blockchain”

Types of Blockchain

• Public, Consortium, Private
• Privacy and transparency

Blockchain, a metaphor.

Picture a spreadsheet that is duplicated millions of times on the Internet and is continuously updated.

On this spreadsheet:

• You can add new rows

but

• You can never modify a row

Practical implementations

Blockchain-based land registries are being tested by:

• Sweden’s Land Registry Authority.(Source: Lantmäteriet, Aug 10, 2017)
• India’s Andhra Pradesh and Telangana States are being planned.(Reuters, Aug 7, 2017)

Blockchain is also used in other sectors…

Example in the financial sector

Banks monitor and manage their international accounts in other banks to exchange foreign currency to facilitate cross-border payments.

Banks want to receive real-time liquidity data to manage funds throughout the business day.

Example in the financial sector

E.g. Australia and New Zealand Banking Group, BNP Paribas, Wells Fargo, ABN AMRO Bank, BBVA, Banco Santander, China Construction Bank, China Minsheng Banking, Commerzbank, Deutsche Bank, JPMorgan Chase Bank, Lloyds Bank, Société Générale, Sumitomo Mitsui Banking Corporation, etc. Source: www.swift.com, July 6, 2017.

Cryptocurrencies, e.g. Bitcoin

What is it?

What are Token sales or Initial Coin Offerings?

What are the risks or open questions?

An example: Initial Coin Offering (ICO)

Much like an IPO, an ICO is an unregulated way to raise money for business purposes

• The company creates digital tokens in cryptocurrencies.
• The tokens are issued based on the amount that the company wants to raise. These tokens have a predetermined value and sold.
• The tokens are on a blockchain and derive their value based on demand.
• Anyone can invest in an ICO. You can buy it online on cryptocurrency exchanges that supports it.

Core benefits of the blockchain

• Distributed
• Lower transaction costs
• Faster transaction times
• Transparency & accountability & integrity
• Usage information and traceability
• Data security through encryption

Thank You