Tokyo FinTech Meetup #5 - Blockchain All-Stars

Tokyo FinTech Meetup #5 September 8, 2017

How to reach us:

Tokyo FinTech Meetup Page

YouTube Recordings


https://www.meetup.com/tokyofintech/

https://www.youtube.com/channel/UCCVBX9QpW9Q4TRrYrXS2Wow/videos

Presentation #1

Jeff Wentworth Curvegrid


© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08

Introduction to EthereumA blockchain app platform

Tokyo FinTech MeetupSeptember 8, 2017

curvegrid.com

http://curvegrid.com


© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08

Building a blockchain application server to help companies use this technology.

Established May 2017

2

Jeff WentworthPreviously Vice President in Storage Engineering at Goldman Sachs

William MetcalfeFormer CTO at Gilt Japan



Consider a double-entry bookkeeping ledger.

Blockchain is a decentralized ledger

3

Account Debit Credit

Alice 2,000 Ξ

Bob 2,000 Ξ

Ξ is the currency symbol for Ether


Transactions are an atomic entry on the ledger.

Introduction to the Ethereum blockchain

4

Transaction Account Debit Credit

1 Alice 2,000 Ξ

Bob 2,000 Ξ


Transactions are grouped together into blocks. Blocks are appended to the ledger and immutable.


5

Block Transaction Account Debit Credit

12938 1 Alice 2,000 Ξ

Bob 2,000 Ξ

2 Carl 1,500 Ξ

Diana 1,500 Ξ



6


12938 1 0x177569f45f04bfbde900affa623910f5b28d5295

2,000 Ξ

0x1c4e909083d80185df10a60fd5ed25402e996eeb

2,000 Ξ

2 0xf26b36ee790c3d04c84c488e067b37ef47f43ffe

1,500 Ξ

0x08780e78886ed5662a459d318b70ec738a9188cc

1,500 Ξ

Account “names” are actually very large numbers (represented here in base-16)



7


12938 1 0x177569f45f04bfbde900affa623910f5b28d5295

2,000 Ξ

0x1c4e909083d80185df10a60fd5ed25402e996eeb

2,000 Ξ

remit(“0x08780e78886ed5662a459d318b70ec738a9188cc”, “0x51391b8604587e3c”, 3600)

Transactions can include computer code that will run on the blockchain.

This is invoking a function called remit() with some parameters.



8


12938 1 Alice 2,000 Ξ

Bob 2,000 Ξ

remit(“0x08780e78886ed5662a459d318b70ec738a9188cc”, “0x51391b8604587e3c”, 3600)

Who or what is Bob?

(account 0x1c4e909083d80185df10a60fd5ed25402e996eeb)



9


6054 1 contract Bob { ...

function remit(address _recipient, bytes32 _pwHash, uint _timeout) public payable returns (bool success) {

trackedBalance = msg.value;remitter = msg.sender;recipient = _recipient;pwHash = _pwHash;deadline = now + _timeout;

return true;}

...}

Bob is a computer program that was uploaded to, and runs on, the Ethereum blockchain.

remit() is one of the functions that Bob can

perform.


Computer programs on the blockchain

Also called smart contracts.

Can hold and dispense value (Ether).

Are governed by the rules of their computer code.

Like other credit and debit entries on the Ethereum ledger, are immutable.

Can be inspected and invoked by anyone who has access to the blockchain.

Cost “gas” to invoke. Currently ¥19 for a simple transaction.

A limit on gas prevents runaway contracts.

10


Decentralized Apps (DApps)

A DApp is the combination of traditional software with a smart contract running on a blockchain.

Potential applications include:

Document attestation: a contract was signed by person X at time Y

Know your customer (KYC) and anti-money laundering (AML)

Securities: stocks, bonds, futures, options, insurance

11


Blockchain as a decentralized ledger

12

Block Tx Account Debit Credit

12938 1 0x177569f45f0 2,000 Ξ

0x1c4e909083 2,000 Ξ

2 0xf26b36ee79 1,500 Ξ

0x08780e7888 1,500 Ξ

Ethereum Ledger

Node A

Node B

Node C

Node D

Node X

Every node has a copy of the ledger

Nodes communicate peer-to-peer over the Internet to update the ledger

Node E

Nodes are servers, desktops or laptops


Safeguarding the integrity of the Ethereum ledger

Node ANode A

Node ANode ANode A

Node X

Block 0(Jul 30, 2015)

Block 4,248,573(Sep 8, 2017)

“Mining” nodes race to solve a complex math problem

Winning mining node gets an Ether reward created out of thin air (money supply increase), plus all of the gas (fees) for the transactions in the block

WorkWhen a block is added to the ledger, it is linked to the block before it and includes proof of the “mining work”

Hence the process is called “Proof of Work”


Safeguarding the integrity of the Ethereum ledger

Node ANode A

Node ANode ANode A

Node X

Block 0(Jul 30, 2015)

Block 4,248,573(Sep 8, 2017)

Work

Node Z

Node Y

Work

Malicious actors would have to start

from scratch to spoof an entry in the ledger

They would never be able to catch up

Would need to beat the formula:

Effort = Blocks x Work x Time


People, organizations and technologies

Ethereum founders include

Vitalik Buterin: Ethereum White Paper, Lead developer

Dr. Gavin Wood: Ethereum Yellow Paper (technical details)

Organizations and consortiums include

Ethereum Foundation Enterprise Ethereum Alliance ConsenSys

Fiat currency to Ethereum exchanges in Japan include

BitFlyer CoinCheck Quoinex

15


People, organizations and technologies (Cont).

Ethereum node software (clients) include

Geth Parity CppEthereum MyEtherWallet

Technologies include

Ethereum Naming Service (ENS) Initial Coin Offering (ICO)

16


Initial Coin Offering (ICO) or Token Sale

Raising money on the blockchain via a crowdsale of tokens.

Ownership of a token is recorded within a smart contract on the Ethereum ledger.

ICOs globally1: Jan 2017: US$15M

Jul 2017: US$637M

VC funding globally2: US$500M/month

Possibly subject to securities regulations.

17

1CoinSchedule Cryptocurrency ICO Stats 2017, https://www.coinschedule.com/stats.php?year=20172Has ICO Cryptocapital Exceeded Early Stage Venture Capital Funding? Yes., http://startupmanagement.org/2017/07/10/has-ico-cryptocapital-exceeded-early-stage-venture-capital-funding-yes/


Sample Tokens

18Source: Coin Market Cap, CryptoAsset Market Capitalizations, https://coinmarketcap.com/assets/views/all/, retrieved 2017-09-08


Ethereum to USD Historical Price

19

Ether/USD PriceJul 30 2015 to Sep 8, 2017

Source: Ethereum Price, http://www.ethprice.com/, retrieved 2017-09-08

Feb 23, 2017US$12.69

Sep 8, 2017US$332.31

© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08© Curvegrid Inc. Tokyo FinTech Meetup 2017-09-08

Thank you

20curvegrid.com



Presentation #2

Geoff Wells IBM


• A collaborative effort created to advance cross-industry

blockchain technologies for business

• Announced December 2015, now around 150 members

• Open source, open standards, open governance

• Five frameworks and three tools projects

• IBM is a premier member of Hyperledger

www.hyperledger.org

Brian Behlendorf

Executive Director

Blythe Masters

Board Chair

Chris Ferris

TSC Chair

http://www.hyperledger.org/

Source: https://www.hyperledger.org/about/members Updated 21 August 2017

https://www.hyperledger.org/about/members

• An implementation of blockchain technology that

is a foundation for developing blockchain

applications

• Emphasis on ledger, smart contracts, consensus,

confidentiality, resiliency and scalability.

• V1.0 released July 2017

– 159 developers from 27 organizations

– IBM is one contributor of code, IP and

development effort to Hyperledger Fabric

http://hyperledger-fabric.readthedocs.io/




• A suite of high level application abstractions for business networks

• Emphasis on business-centric vocabulary for quick solution creation

• Reduce risk, and increase understanding and flexibility

• Features

– Model your business networks, test and expose via APIs

– Applications invoke transactions to interact with business network

– Integrate existing systems of record

• Fully open and part of Linux Foundation Hyperledger

• Try it in your web browser now:

http://composer-playground.mybluemix.net/

https://hyperledger.github.io/composer/

Business Application

Hyperledger Composer

Blockchain

(Hyperledger Fabric)




https://hyperledger.github.io/composer/

•

•

•

•

http://ibm.biz/Platform_Demo

www.ibm.com/blockchain

developer.ibm.com/blockchain

www.hyperledger.org

Presentation #3

Munetoshi Yamada R3


The R3 Consortium- Leading the world’s largest Distributed Ledger consortium for F.I.- Focusing on developing a next generation financial transaction network.

Our goal

Build R3Net with Corda

What is R3Net ?# Network participant Role description

1 F.I. (Financial institution) F.I.s transact each other in any

type of financial agreements.

2 Oracle Provide external facts such as

interest rate, foreign exchange

rate, etc.

Think of Tomson Reuters and

Bloomberg.

3 Notary Prevent double spending

Provide signatures when a peer

commit a transaction

Validating notary and non-

validating notary

4 Regulator Receive all the transactions

within their jurisdictions

Real-time monitoring

Regulatory reporting

Regulatory querying

Oracle

F.I.

Notary

Regulator

F.I.

F.I.

Node internals

Corda Enterprise

CorDapps

Corda Open Source

Multi-

threading…SGX

Modular

RDBMS

Trade

Finance…

OTC

derivativesIdentity

Corda

components…

Network

Map ServiceVault

Oracle

F.I.

Notary

Regulator

F.I.

F.I.

What is Corda?

Purpose：Build an enterprise grade platform specialized in financial transaction

Data Sharing Model

”Need-to-know” basis, No

broadcasting

Transaction validation

Validated by parties to the

transaction, No Block, No PoW

Consensus

Uniqueness service provided

Transaction style

UTXO model employed, Execute

in parallel

Regulatory requirement

Enable regulatory nodes,

ensuring transparency

Scripting language

Kotlin, Java

Roadmap 2017

Q1 2017 Q2 2017 Q3 2017 Q4 2017Corda Open Source

& Enterprise

Corda Enterprise announcement with key partners

Corda maintenance contract launch

Initial R3 Corda network services launch

Corda open source v1.0 release

Corda Enterprise v1.0 launch

Platform capable

of supporting pilots

First community-organized Corda Meetup

HQLAx announce live pilot on Corda

Corda Testnet live

Corda Training launched globally

Corda DemoBenchreleased

Corda open source Beta announcement

Corda support contract launch

5

Technology

Tokyo FinTech Meetup #5 - Blockchain All-Stars