Blockchain Technology

and

Digital Asset Tokens

An Executive Primer

A Knowledge Sharing Session at

United Capital Securities Limited

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

Demo: 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

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.

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

Total Crypto Market Capitalization $147.96b

Total Bitcoin Market Capitalization: $73.21b

Altcoins Market Capitalization: $74.75b

Bitcoin Dom Index:  49.5%

Total Exchange Vol. (24 Hours):  $2619.83m

Total Exchange Vol. Bitcoin: $1172.59m

Total Exchange Vol. Altcoins: $1447.24m

Bitcoin Dom Index: 44.8%

BTC Price: $4403.70

Nodes: 9,687

Average Fee: $2.11

Last Block: 0:06 (4.55% full)

As of today 10-06-2017

Cryptocurrency Metrics

Monitoring Platforms

http://coincap.io/

https://coinmarketcap.com/

https://www.cryptocompare.com/

https://tokenmarket.net/

https://prism.exchange

Top 10 Cryptocurrencies You should keep your eyes on

#	Name	Market Cap	Price	24hour VWAP	Available Supply	24 Hour Volume	%24hr
1	Bitcoin BTC	$73,207,386,226	$4409.85398367	$4349.2308	16,606,475	$1,181,910,000	4.97%
2	Ethereum ETH	$28,462,489,792	$301.00000000	$295.1592	94,976,274	$240,033,000	3.21%
3	Ripple XRP	$9,175,405,285	$0.23460696	$0.2340	38,343,841,883	$242,845,000	6.47%
4	Bitcoin Cash BCH	$6,118,806,954	$360.30463001	$353.7943	16,674,225	$264,011,000	4.43%
5	Litecoin LTC	$2,789,672,475	$52.50000000	$51.6214	53,252,557	$70,364,500	3.21%
6	Dash DASH	$2,363,120,455	$304.12810168	$304.0418	7,604,620	$25,274,800	3.98%
7	NEM XEM	$1,947,864,152	$0.20869257	$0.2164	8,999,999,999	$4,267,600	2.63%
8	NEO NEO	$1,714,999,999	$34.29500000	$32.9993	50,000,000	$66,257,600	13.41%
9	IOTA IOT	$1,545,015,805	$0.55570000	$0.5529	2,779,530,283	$7,593,400	3.78%
10	Monero XMR

$1,393,749,108

$91.85430000

$91.3061

15,173,477

$27,802,400

3.21%

Token Crowd Sale/ ICOs

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.

New crowdsales of crypto assets have pulled in more than $1 billion this year.

Token Crowd Sale/ ICOs

Individual, and Companies can

Speculate, Buy, Trade and profit from ICOs.

Most Successful ICOs 2017

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

Invest in Bockchain Start ups

Speculate in profitable ICOs 

Wrapping up

Questions?

Get My Book!

http://blockchainnigeria.group/pay

About Me

https://web.facebook.com/chimezie.chuta

 

https://twitter.com/mezie16

 

https://www.linkedin.com/in/chimeziechuta

 

https://slides.com/chuta

Coordinator:  Blockchain Nigeria User Group

http://blockchainnigeria.group

Founder: StartUPBits.fund | Ayori.io | fragcom.com

Thank You!