blockchain 101

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Blockchain 101

A Dummy’s Guide to Distributed Ledger technology and how it applies to insurance

Gary Nuttall

Distlytics Ltd

Feb 2016

Briefing Agenda

I Keep six honest serving-men:(They taught me all I knew)

Their names are What and Where and WhenAnd How and Why and Who.

I send them over land and sea,I send them east and west;

But after they have worked for me,I give them all a rest.

Rudyard Kipling – The Elephant’s Child

Introductions

You

Me

Who

Why

How

When

What

Where

Intro’s

Q & A

What is the Blockchain ?

Who

Why

How

When

What

Where

Intro’s

Q & A

What is the Blockchain ?

Protocol

Bitcoin vs Blockchain vs Distributed Ledger

Key Characteristics

Who

Why

How

When

What

Where

Intro’s

Q & A

What is the Blockchain ?

Protocol

Who

Why

How

When

What

Where

Intro’s

Q & A

“In information technology, a protocol is the special set of rules that end points

in a telecommunication connection use when they communicate. Protocols

specify interactions between the communicating entities” (TechTarget)

“How we do things” (Me)

A few protocols:

• TCP/IP – 1980 (Vinton Cerf and Robert Kahn)……..led to THE INTERNET

• HTTP – 1990 (Tim Berners-Lee)…….Enabled the WORLD WIDE WEB

• Bitcoin – 2008 (Satoshi Yakomoto, although it wasn’t called Blockchain)

…..We quickly forget the protocol but what they enable are transformational

What is the Blockchain ?

Bitcoin vs Blockchain

Who

Why

How

When

What

Where

Intro’s

Q & A

Bitcoin = Crypto-currency

“The” Blockchain = Public,

permissionless, distributed

ledger based on the Bitcoin

protocol

What is the Blockchain ?

Bitcoin vs Blockchain vs Distributed Ledger

Who

Why

How

When

What

Where

Intro’s

Q & A

Bitcoin = Crypto-currency

“The” Blockchain = Public,

permissionless, distributed

ledger based on the Bitcoin

protocol

“A” Blockchain is typically

based on the Bitcoin

protocol principle and takes

the form of a Mutually

Distributed Ledger.

Example protocols:

Bitcoin

Ethereum

Hyperledger

Ripple

What is the Blockchain ?

Bitcoin vs Blockchain vs Distributed Ledger

Who

Why

How

When

What

Where

Intro’s

Q & A

Summary……

Bitcoin is a protocol that “The” Blockchain uses

There are other Blockchains which use a Distributed Ledger approach BUT not all

Distributed Ledgers necessarily use a (or the) Blockchain.

Conclusion….

This presentation uses, perhaps incorrectly, the terms Distributed Ledger and

Blockchain interchangeably.

Similarly, we use terms such as “Internet” and “World Wide Web”

interchangeably (and don’t even talk about TCP/IP and HTTP!)

Unless you’re a purist it doesn’t matter what ‘it’ is…it’s what it enables

What is the Blockchain ?

A Ledger

Who

Why

How

When

What

Where

Intro’s

Q & A

What is the Blockchain ?

A Ledger, held in blocks maintaining lineage

Who

Why

How

When

What

Where

Intro’s

Q & A

What is the Blockchain ?A Ledger, held in blocks maintaining lineage

And is Distributed

Who

Why

How

When

What

Where

Intro’s

Q & A

What is the Blockchain ?

Key Characteristics

Who

Why

How

When

What

Where

Intro’s

Q & A

• Immutable / Persistent

• Distributed / Decentralised

• Timestamped & Audit friendly

• Cryptographic security

• Pseudo-Anonymous crypto-key based

• *** Smart Contracts ***

Where can Blockchain be used?

Existing Case Studies

Generic Use Cases

Who

Why

How

When

What

Where

Intro’s

Q & A

Where can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

Existing Use Cases

Where can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

Generic Use CasesValue transfer

• Payments & Settlements

Asset Management

• Land Registry

• Diamonds

Removal of Trusted Third Party

• Conveyancing

• Banking (payments)

• Escrow

Accreditation

• KYC

• AML

• Professional Membership

Document Management

• Contracts

• Policies

• Electronic Signatures

Government Services

• UK GDS

• Local Government

Media

• Music

• Digital Images

Supply Chain

• Ethical Sourcing

• Consignment Tracking

Where can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

A few more….

Where can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

Insurance?

When can Blockchain be used?

Good targets

Not good ideas

Who

Why

How

When

What

Where

Intro’s

Q & A

When can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

A few things to be aware of……

When can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

Good targets….?

• Immutable / Persistent Is a permanent, uneditable, record required?

• Distributed / Decentralised Is there value in it being cyber-resistant?

• Timestamped & Audit friendly Is auditing a significant overhead?

• Cryptographic security Does the CPU cost outweigh trust issues?

• Pseudo-Anonymous crypto-key based Is level of consensual sharing needed?

• *** Smart Contracts *** Can a contract be represented programmatically?

When can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

Good Targets …..In Insurance….

When can Blockchain be used?

Who

Why

How

When

What

Where

Intro’s

Q & A

Good Targets …..In Insurance….In London?

How can Blockchain be used?

Public (Bitcoin)

Who

Why

How

When

What

Where

Intro’s

Q & A

How can Blockchain be used?

Private (Permissioned)

Who

Why

How

When

What

Where

Intro’s

Q & A

How can Blockchain be used?

Hybrid

Who

Why

How

When

What

Where

Intro’s

Q & A

Why use Blockchain?

Who

Why

How

When

What

Where

Intro’s

Q & A

• Immutable / Persistent

• Distributed / Decentralised

• Timestamped & Audit friendly

• Cryptographic security

• Pseudo-Anonymous crypto-key based

• *** Smart Contracts ***

Who will use Blockchain?

Who

Why

How

When

What

Where

Intro’s

Q & A

Who will use Blockchain?

Who

Why

How

When

What

Where

Intro’s

Q & A

Who will use Blockchain?

Who

Why

How

When

What

Where

Intro’s

Q & A

Who will use Blockchain?

YOU!

Who

Why

How

When

What

Where

Intro’s

Q & A

THANK YOU!

Q & A

USEFUL RESOURCES

www.distlytics.com

Gary Nuttall

EMAIL: GNUTTALL@DISTLYTICS.COM

TWITTER: @GPN01

LINKEDIN: https://uk.linkedin.com/in/garynuttall

Who

Why

How

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What

Where

Intro’s

Q & A

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