blockchain 101
TRANSCRIPT
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
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Intro’s
Q & A
What is the Blockchain ?
Protocol
Bitcoin vs Blockchain vs Distributed Ledger
Key Characteristics
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Intro’s
Q & A
What is the Blockchain ?
Protocol
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“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
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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
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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
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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
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What is the Blockchain ?
A Ledger, held in blocks maintaining lineage
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What is the Blockchain ?A Ledger, held in blocks maintaining lineage
And is Distributed
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What is the Blockchain ?
Key Characteristics
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• 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
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Where can Blockchain be used?
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Existing Use Cases
Where can Blockchain be used?
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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?
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Intro’s
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A few more….
Where can Blockchain be used?
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Insurance?
When can Blockchain be used?
Good targets
Not good ideas
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When can Blockchain be used?
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A few things to be aware of……
When can Blockchain be used?
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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?
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Good Targets …..In Insurance….
When can Blockchain be used?
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Good Targets …..In Insurance….In London?
How can Blockchain be used?
Public (Bitcoin)
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How can Blockchain be used?
Private (Permissioned)
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How can Blockchain be used?
Hybrid
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Why use Blockchain?
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• Immutable / Persistent
• Distributed / Decentralised
• Timestamped & Audit friendly
• Cryptographic security
• Pseudo-Anonymous crypto-key based
• *** Smart Contracts ***
Who will use Blockchain?
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Intro’s
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Who will use Blockchain?
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Who will use Blockchain?
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Who will use Blockchain?
YOU!
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THANK YOU!
Q & A
USEFUL RESOURCES
www.distlytics.com
Gary Nuttall
EMAIL: [email protected]
TWITTER: @GPN01
LINKEDIN: https://uk.linkedin.com/in/garynuttall
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