TTULO DA PALESTRA Nome do Palestrante

BlockchainThe Trust MachineRafael Sarres de Almeida

The ideas shared in this presentation reflect only the authors personal opinion

MoneyA matter of trust

The history of Yap 3

Yap is an island in Micronesia where money was represented by large disks carved out of limestone: the Rai Stones. The possession of a disk is maintained by oral and diffuse knowledge.A history of trust

The history of Zimbabwe4

1014 ZWD ~= 0,40 USD

Hiperinflation2015: 100 trillions ZWD = 0,40 USD.How a currency can failThe population trust has been betrayed

When we need trust5We use third-partiesPublic RegistriesBanksUber, AirBnBCredit CardsGovernment

The world evolved to a third-party trust system.

Sometimes they do not deserve it6Land fraudGlobal financial crisisPersonal data breachesInflationCorruption

But without a bank

But without a credit card

But without Uber and AirBnB

But without public registries

But without a government...Who will store and lend money?

How will I buy in international marketplaces?

How will sharing economy work?

Who will keep the public records?

Who will build the roads?

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The Trust Machine

The beginning of the revolution: Bitcoin92008: A Peer-to-Peer Electronic Cash System, Satoshi Nakamoto The first digital bearer assetRules Defined by algorithmConsensus maintained10 billion USD in custodyAn unbroken virtual piata

Blockchain: The Bitcoin foundation10A Distributed LedgerA decentralized databaseOpen to participation and useWrite privilege defined by consensusEvery node must validateImmutable data after commitThe is no DBA or roolback

Um registro de transaes11Decentralized maintenance by minersProof of work

Tempo

Blockchain 2.0The decentralized computer

13What if....

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Blockchain 2.014Smart ContractsTransactionsEventsTransactionsEventsBalanceState

Does it answer our questions?

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But without a bankBut without credit cards

Who will store and lend money?How will I buy in international marketplaces?16Cryptocurrency stored in blockchainFrictionless registrationBorderless money

But without public registries

Who will keep the public records?18A public databaseImmutable after writingFraud resistantCensorship resistantAuthentication of the record keeperAuditable

But without a government

Who will build the roads?20Decentralized demmocracyA program that uses predictive market to decide between projectsThe Wisdom of the CrowdsShould I build a road or a hospital?

But without Uber and AirBnB

How will sharing economy work?22Smart Contract + IoTThe Third-party of the FuturePrime Directives:Serve the public trust without interference;Protect the digital assets;Uphold the availability;And this timeNo value judgement

This time the smart contract will not judge its own actions, remember its family, rise against its creators ( I hope )22

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InternetSmartphoneSharing EconomyMillennials

We have a unique set of factors:1- The ubiquitous communication of the Internet2- The computational power of the smartphone in the hands of 37% of the world population, and 60% of the developed world.3- The rising of the sharing economy;4- The technological intimacy and will of experimentation of the Millennials.

The blockchain is the technology that closes the gap that prevented these factors to combine and work together to fulfill its true potential.

The risks of a new paradigm

The challenge of the regulators25Money laundry and tax evasionKnow your customer Illegal items and services marketplacesFinancial and commercial blockagesNew risks to the financial system

Mercado de assassinatos

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Ready to rule the world?26GovernanceScalabilityPerformanceTransparency vs Privacy Key management

Some issues still need to be addressed

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A dangerous new world27Mt.Gox (2014)USD 450 millionBitfinex (2016)USD 70 millionSmart contract flaw - DAOUSD 60 million

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An unpredictable new world...28

1014 ZWD ~= 3USD

DAO crisis comparison to Brexit where you can declare independence of part of your country: The Ethereum Classic

In short

A world of opportunities30Product life-cycle managementA new financial systemIdentity managementCentral Bank issued Digital Currencies

Example:Car life-cicle in the blockchain:1- Asset created by the manufacturer;2- Validation made by the local DMV;3- Transfer of ownership written by the dealer;4- Personal car renting made possible with smart locks and smart contracts that holds colateral;5- Repair logs are written by the local mechanic;6- Recalls are easier as all parts serial numbers and the actual owner are recorded in the blockchain;7- The dismantle is recorded by the junkyard.

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There is no escape, blockchain will knock on your door sooner or later. My advice: Study, research, develop in a sandbox, understand this new computational paradigm. Blockchain knowledge is already a valuable skill.31

Thank you!Questions?

Rafael Sarres de Almeida@rsarresrsarres@yahoo.com.br