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Blockchain

Alessandro Confetti
Alessandro Confetti

A Resilient City - Designing services for the future of Milan, Politecnico of Milan, 26/04/2018 What is a blockchain from a designer's point of view? What kind of services could be imagined with cryptocurrencies? Discover more at http://blog.zigolab.it

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PRODUCT-SERVICE SYSTEM DESIGN COURSE BLOCKCHAIN April 26th 2018 Politecnico, Milan A l e s s a n d r o C o n f e t t i
2 Image from Julia Donaldson's books in pictures Alessandro Confetti - April 26th 2018 Politecnico, Milan THERE IS NO SUCH A THING AS A BLOCKCHAIN
3 Alessandro Confetti - April 26th 2018 Politecnico, Milan Bitcoin's Academic Pedigree By Arvind Narayanan, Jeremy Clark Communications of the ACM, Vol. 60 No. 12, Pages 36-45 10.1145/3132259
4 Alessandro Confetti - April 26th 2018 Politecnico, Milan Courtesy of blockchainhub.net
5 Alessandro Confetti - April 26th 2018 Politecnico, Milan Courtesy of blockchainhub.net
6 Alessandro Confetti - April 26th 2018 Politecnico, Milan Cryptographic Hashes and Bitcoin By Kalle Rosenbaum Chryptography CRYPTOGRAPHIC HASH FUNCTION
7 Alessandro Confetti - April 26th 2018 Politecnico, Milan Bitcoin's Academic Pedigree By Arvind Narayanan, Jeremy Clark Communications of the ACM, Vol. 60 No. 12, Pages 36-45 10.1145/3132259 Chryptography
8 image from the work of Paul Baran, On Distributed Communications Networks 1964 Alessandro Confetti - April 26th 2018 Politecnico, Milan P2P Network
9 Images from Evolving terminology pt. 2: topology vs ownership January 10, 2016 Alessandro Confetti - April 26th 2018 Politecnico, Milan P2P Network
10 Alessandro Confetti - April 26th 2018 Politecnico, Milan Ok, I need a blockchain, but which one? By Pavel Kravchenko Sep 26, 2016 Game Theory
11 Alessandro Confetti - April 26th 2018 Politecnico, Milan Ok, I need a blockchain, but which one? By Pavel Kravchenko Sep 26, 2016 Game Theory OPENNESS CONSENSUS ANONYMITY IMMUTABILITY SCALABILITY Permissionless/Public PoW High High Low Permissioned/Public PoS High Moderate Moderate Permissionless/Public FBA Moderate Moderate Moderate Permissioned/Private PBFT/Multisignature Low Low Low
12 QUESTIONS TO ASK BEFORE YOU START Who can set or change the rules of the protocol? Who runs the nodes and pay for them? Who validates the block and at which cost? Who can read and/or write the blocks? Alessandro Confetti - April 26th 2018 Politecnico, Milan
13 CHALLENGES TO SOLVE BEFORE GOING PUBLIC What is the service actually enabled by the blockchain? What hw, sw, bandwith is the user required to own? How and where the users private keys are stored? How and where the users assets are stored?
14 Alessandro Confetti - April 26th 2018 Politecnico, Milan
15 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business 2000 2008 Implementing Organization Type Numberofinitiatives Unknown Foundation Government Nonprofit or Academia For-Profit 2010 2011 2012 2013 2014 2015 2016 2017 2018 our research captured which applications have already begun to demonstrate proven social impact, which industries and use cases are more or less advanced, and what we should be learning from the hundreds of test cases, pilots, and experiments that are using blockchain for social impact. A surge in new projects, organizations, and platforms oriented toward the use of blockchain technology began in 2013. Figure 1: Year Founded by Implementing Organization Type
16 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business in the early days 34% were started in 2017 or later, and 74% are still in the pilot or idea stage. But, 55% of social-good blockchain initiatives are estimated to impact their beneficiaries by early 2019. Fifty-five percent are estimated to have an end impact on their beneficiaries by early 2019. Figure 2:Time Frame for Proof of Impact Democracy and Governance initiatives are the furthest along, with 62% of all projects expected to have demonstrated impact in the 0% 10% 20% 30% 40% 50% Time Frame for Proof of Impact 06 months Unknown2+ years 12 years612 months Philanthropy, Aid, and Donors Energy, Climate and Environment Land Rights Financial Inclusion Agriculture Health Democracy and Governance 60% 70% 80% 90% 100%
17 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business Blockchain is most often used to facilitate payments and verify records. Figure 5: Primary Ways in Which Blockchain Is Used Blockchain is most often used to facilitate payments and verify records. The most common use cases for blockchain initiatives are payments and money transfers (25%) and records and verification (26%). Blockchains most popular primary benefits are being able to reduce risk and fraud (38%) and increase efficiency (24%) Reducing risk and fraud is seen as Records and Verification Payments and Money Transfers Platforms and Marketplaces Digital Identity Various Supply Chain Management Smart Contracting Percentage of Catalogued Initiatives Reduction of Risk/Fraud or Increase in Integrity/Transparancy Increased Efficiency
18 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business Blockchain for Social Impact 4Stanford Graduate School of Business Reducing risk and fraud is seen as blockchains primary benefit. Figure 6: Primary Benefits of Using Blockchain Smart Contracting Percentage of Catalogued Initiatives Percentage of Catalogued Initiatives 35% Increased Scale / Reach New People Unknown Enable a Process or Action That Was not Possible Before Reduction of Risk/Fraud or Increase in Integrity/Transparancy Other Increased Efficiency Reduction of Costs
$ tail -f questions 19 Alessandro Confetti aconfet@thoughtworks.com twitter @zigolab blog http://blog.zigolab.it

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Blockchain

  • 1. PRODUCT-SERVICE SYSTEM DESIGN COURSE BLOCKCHAIN April 26th 2018 Politecnico, Milan A l e s s a n d r o C o n f e t t i
  • 2. 2 Image from Julia Donaldson's books in pictures Alessandro Confetti - April 26th 2018 Politecnico, Milan THERE IS NO SUCH A THING AS A BLOCKCHAIN
  • 3. 3 Alessandro Confetti - April 26th 2018 Politecnico, Milan Bitcoin's Academic Pedigree By Arvind Narayanan, Jeremy Clark Communications of the ACM, Vol. 60 No. 12, Pages 36-45 10.1145/3132259
  • 4. 4 Alessandro Confetti - April 26th 2018 Politecnico, Milan Courtesy of blockchainhub.net
  • 5. 5 Alessandro Confetti - April 26th 2018 Politecnico, Milan Courtesy of blockchainhub.net
  • 6. 6 Alessandro Confetti - April 26th 2018 Politecnico, Milan Cryptographic Hashes and Bitcoin By Kalle Rosenbaum Chryptography CRYPTOGRAPHIC HASH FUNCTION
  • 7. 7 Alessandro Confetti - April 26th 2018 Politecnico, Milan Bitcoin's Academic Pedigree By Arvind Narayanan, Jeremy Clark Communications of the ACM, Vol. 60 No. 12, Pages 36-45 10.1145/3132259 Chryptography
  • 8. 8 image from the work of Paul Baran, On Distributed Communications Networks 1964 Alessandro Confetti - April 26th 2018 Politecnico, Milan P2P Network
  • 9. 9 Images from Evolving terminology pt. 2: topology vs ownership January 10, 2016 Alessandro Confetti - April 26th 2018 Politecnico, Milan P2P Network
  • 10. 10 Alessandro Confetti - April 26th 2018 Politecnico, Milan Ok, I need a blockchain, but which one? By Pavel Kravchenko Sep 26, 2016 Game Theory
  • 11. 11 Alessandro Confetti - April 26th 2018 Politecnico, Milan Ok, I need a blockchain, but which one? By Pavel Kravchenko Sep 26, 2016 Game Theory OPENNESS CONSENSUS ANONYMITY IMMUTABILITY SCALABILITY Permissionless/Public PoW High High Low Permissioned/Public PoS High Moderate Moderate Permissionless/Public FBA Moderate Moderate Moderate Permissioned/Private PBFT/Multisignature Low Low Low
  • 12. 12 QUESTIONS TO ASK BEFORE YOU START Who can set or change the rules of the protocol? Who runs the nodes and pay for them? Who validates the block and at which cost? Who can read and/or write the blocks? Alessandro Confetti - April 26th 2018 Politecnico, Milan
  • 13. 13 CHALLENGES TO SOLVE BEFORE GOING PUBLIC What is the service actually enabled by the blockchain? What hw, sw, bandwith is the user required to own? How and where the users private keys are stored? How and where the users assets are stored?
  • 14. 14 Alessandro Confetti - April 26th 2018 Politecnico, Milan
  • 15. 15 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business 2000 2008 Implementing Organization Type Numberofinitiatives Unknown Foundation Government Nonprofit or Academia For-Profit 2010 2011 2012 2013 2014 2015 2016 2017 2018 our research captured which applications have already begun to demonstrate proven social impact, which industries and use cases are more or less advanced, and what we should be learning from the hundreds of test cases, pilots, and experiments that are using blockchain for social impact. A surge in new projects, organizations, and platforms oriented toward the use of blockchain technology began in 2013. Figure 1: Year Founded by Implementing Organization Type
  • 16. 16 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business in the early days 34% were started in 2017 or later, and 74% are still in the pilot or idea stage. But, 55% of social-good blockchain initiatives are estimated to impact their beneficiaries by early 2019. Fifty-five percent are estimated to have an end impact on their beneficiaries by early 2019. Figure 2:Time Frame for Proof of Impact Democracy and Governance initiatives are the furthest along, with 62% of all projects expected to have demonstrated impact in the 0% 10% 20% 30% 40% 50% Time Frame for Proof of Impact 06 months Unknown2+ years 12 years612 months Philanthropy, Aid, and Donors Energy, Climate and Environment Land Rights Financial Inclusion Agriculture Health Democracy and Governance 60% 70% 80% 90% 100%
  • 17. 17 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business Blockchain is most often used to facilitate payments and verify records. Figure 5: Primary Ways in Which Blockchain Is Used Blockchain is most often used to facilitate payments and verify records. The most common use cases for blockchain initiatives are payments and money transfers (25%) and records and verification (26%). Blockchains most popular primary benefits are being able to reduce risk and fraud (38%) and increase efficiency (24%) Reducing risk and fraud is seen as Records and Verification Payments and Money Transfers Platforms and Marketplaces Digital Identity Various Supply Chain Management Smart Contracting Percentage of Catalogued Initiatives Reduction of Risk/Fraud or Increase in Integrity/Transparancy Increased Efficiency
  • 18. 18 Alessandro Confetti - April 26th 2018 Politecnico, Milan BLOCKCHAIN for social impact moving beyond the hype Stanford Graduate School of Business Blockchain for Social Impact 4Stanford Graduate School of Business Reducing risk and fraud is seen as blockchains primary benefit. Figure 6: Primary Benefits of Using Blockchain Smart Contracting Percentage of Catalogued Initiatives Percentage of Catalogued Initiatives 35% Increased Scale / Reach New People Unknown Enable a Process or Action That Was not Possible Before Reduction of Risk/Fraud or Increase in Integrity/Transparancy Other Increased Efficiency Reduction of Costs
  • 19. $ tail -f questions 19 Alessandro Confetti aconfet@thoughtworks.com twitter @zigolab blog http://blog.zigolab.it