Blockchain Technology
and
Digital Financial Asset
A Primer for Beginners
A Knowledge Sharing Session at
Digital Tech Diamond Community Group TCN
Presenter: Chimezie Chuta, Lead Dev Blockchain Nigeria User Group
The Blockchain Technology
A combination of the openness of the internet with the security of cryptography gives everyone a faster, safer way to verify key information and establish trust.
A Distributed Digital Record of Transactions, Secure, Immutable, Append-only, Decentralized, Time-stamped, Hashed and Transparent.
Demo: http://www.blockchainnigeria.group/blog/explaining-bitcoin-hash-functions-newbie
The Blockchain Technology
READ: http://www.blockchainnigeria.group/blog/explaining-bitcoin-hash-functions-newbie
WHAT'S A HASH FUNCTION?
In the abstract, a hash function is a mathematical process that takes input data of any size, performs an operation on it, and returns output data of a fixed size.
HASH FUNCTION
Core
The Blockchain Technology
In Establishing Trust, the Blockchain provide a simple, paperless way to establish ownership of money, information and objects
An Address, A Public Key, A Private Key (a hash of the address data.)
When to use Blockchain Technology
When there is an advantage to having a public immutable record of something, blockchain is the answer. When there no benefit, it doesn’t make much sense to use a blockchain. When this is the case, stand‐alone cryptography is the solution to your problem.
Some Blockchain Technology Use Case
Supply Chain Management
Digital Identity
Voting
Fundraising (Security token offerings)
Healthcare
Notary
Intellectual Property (IP)
Land Registry
Asset Tokenization
Decentralized Finance
Remmitances/ Payments
The Blockchain Technology
A smart contract is a piece of computer code that describes a transaction step by step. It can connect to multiple blockchains, tracking multiple assets, so it can swap those assets as needed to execute the transaction.
Smart Contract
The Blockchain Technology
It is a transformation that has already begun. Organizations—both the ones that it can help, and the middlemen at risk of disintermediation —will need to be prepared as the technology matures.
The New Technology of Trust
The Blockchain Protocols
The term “protocol” refers to the “cryptoeconomic rules” that are enforced by a blockchain in order to maintain distributed consensus across the blockchain's peer-to-peer network.
Blockchain Solves the double-spend problem!
I send you an asset and wholly relinquish its ownership!
Tokens
A “token” by definition is a representation of any fungible, tradable good such as currency, loyalty points, gold certificates, in-game items, vouchers, IOUs, or even objects in the real world.
It represents that I own an underlying tradable asset.
NOTE: A Token is a Smart Contract!
Tokens
Digital "tokens" represent an exchange medium within a project
A token can act as a store of value.
A token can be bought, sold, or traded for profit
Tokenized assets
Tokenizing assets that are either very illiquid, like real estate, or that can be difficult to physically exchange, like gold, is an interesting concept for investors.
Very expensive assets such as Airplanes, Land or even Intellectual property can be tokenized and sold in fractions.
https://www.etoro.com/
https://latoken.com/
Cryptocurrencies
A trustless Peer-to-Peer "Cash System" to prevent double spend!
– Satoshi Nakamoto, 09 January 2009
Decentralized
Censorship proof
Control Resistant
How new Cryptocurrencies are Created
Satoshi in Bitcoin, set the rules for "miners".
They need to invest some work (Processing Power) of their computers to qualify for this task.
They have to find a "hash" – a product of a cryptographic function – that connects the new block with its predecessor.
This is called the Proof-of-Work. In Bitcoin, it is based on the SHA 256 Hash algorithm.
How new Cryptocurrencies are Created
As an incentive, the "Miner" has the right to add a so-called "coinbase transaction" that gives him a specific number of Bitcoins.
This is the only way to create valid Bitcoins or valid Crypto Using the PoW System.
A "coinbase transaction" is the first transaction in a block.
Cryptocurrency Metrics
Cryptocurrencies: 5,784
Market Cap: $285,910,712,891
24h Vol: $69,524,820,581
|
Total MKT Vol. $175,476,318,827
|
24 Hrs Vol: |
BTC Dominance: 61.4%
As of today 25-07-2020
Cryptocurrency Metrics
Monitoring Platforms
http://coincap.io/
https://coinmarketcap.com/
https://www.cryptocompare.com/
https://tokenmarket.net/
https://prism.exchange
Token Crowd Sale Models
ICOs/ IEO/ IMO etc
An ICO is an event in which a new cryptocurrency project sells part of its cryptocurrency tokens to early adopters and enthusiasts in exchange for money today.
ICOs have been compared to Initial Public Offerings (IPOs) of corporations. There are some notable similarities – both of them are used to sell a stake and raise money, and both have investors who see the potential and risk their capital in order to make a potential profit.
Token Crowd Sale/ ICOs/ IEO/ IMO etc
Individual, and Companies can
Speculate, Buy, Trade and profit from ICOs.
Most Successful ICOs
1. FILECOIN -$257 million
2. TEZOS -$232.319 million
3. EOS (STAGE 1) -$185 million
4. BANCOR - $153 million
5. STATUS -$90 million
6. TENX -$64 million
7. MOBILEGO - $53.069 million
8. SONM - $42 million
9. AETERNITY - $36.96 million
10. MONETHA -$36.6 million
Other Ways to Profit from The Blockchain Tecnology
Investing in Cryptos with a future
Buy and Hold Tokens/ Cryptos
Mining
Trading
Lending
Staking
Node Operation
Careers/ Start Crypto Assets Businesses
Invest in Bockchain Start ups
Speculate in profitable ICOs
Wrapping up
Questions?
Get My Books!
Contact Me
https://web.facebook.com/chimezie.chuta
https://twitter.com/mezie16
https://www.linkedin.com/in/chimeziechuta
https://slides.com/chuta
http://blockchaindev1000.com
http://kinesis.Money West Africa Advisory,
CEO@ http://blockspace.africa | https://blockspace.shop
Coordinator: Blockchain Nigeria User Group
http://blockchainnigeria.group