Introduction to Blockchain Technology

"Article inspired and written based on teachings of BSC MasterClass: African Developer training conducted by Wu Xiao, CEO White Matrix."

Overview

• Defining blockchain technology, its features, and relation to real life
• Bitcoin vs current banks
• smart contracts: DEFI & crypto art examples
• white matrix: chainIDE
• blockchain's future & virtual world

What is Blockchain

It is a new application model of computer technology distributed with data storage, peer-to-peer transactions, consensus mechanisms, and encryption algorithm.

In real life, you can relate blockchain to dating when a "lover either girl or boy" tells the latter that they're in love with them the latter will tell this to close friends and family or post on social media when the lover in case the lover will reject the idea of saying that there will be evidence online or through the other close parties. Hence immutable & public.

Features of blockchain

• Consensus: determine overall performance and scalability of a system through node synchronization on a ledger system.
• Node: there are many computers on the network and each computer acts as a node
• Multi-center: not controlled by a central organization

Characteristics of blockchain

• immutable
• traceability
• privacy protection
• independence

  What can Blockchain Do?

  Rebuilding the financial system today

  Imagine there were no banks how can we create an alternative to the current banking system?

disadvantages of banks

1. High transaction fees

   "According to SNL Financial & CNN money report, JP Morgan Chase, Bank of America, Wells Fargo earned 6 billion from ATM & overdraft fees in 2015"

2. High trust cost

   • banks have to pay for the prevention of double-spending & account book tempering.
   • transfer cost across banks requires counter-check of bank account details among others

3. Risk of centralized storage

   • banks can go bankrupt due to financial reserve & depression where people might experience huge job loss and fail to repay loans like in 2008(America).

In 2008, the Bitcoin White paper was launched by Satoshi Nakamoto(undisclosed identity) which is a peer-to-peer Electonic cash system called Bitcoin.

Blockchain technology from the first day of birth led us to discover the innovation that defines the rules.

Today's Electronic Financial System

characteristics

• centralized storage
• private ledger
• prone to hacks
• double-spending

Bitcoin thinking

Bitcoin uses distributed ledger system

• distributed storage (from the centralized)
• public ledgers: the ledger is open to everyone (from the private ledgers)
• immutable to hacks: transactions can't be tempered with & it's difficult to be modified by hackers. (from prone to hacks)
• No double spending: transactions will not be double spent, a consensus mechanism can guarantee this(from double-spending)

  Bitcoin Innovation

  Bitcoin is the first digital currency that uses cryptographic encryption to create and manage electronic distributed ledger block. Ledger bookkeeping where miners attempt to find Bitcoin through solving complex mathematical problems.

Blockchain technology moved forward all the way & started its own journey

Blockchain Innovations

Trivial experience experiment

• This is based on two examples built by the team from White Matrix
• Cell Evolution

• it's based on blockchain characteristics

  the game is divided into pre-chain puzzle gameplay & on-chain social gameplay. Players cultivate their own cells by chasing high scores, group cooperation/creators & destroyers. Unbalance will destroy the world.

• Retrospective experience

• said to have been built within 48 hours

  • "soul wanders between life & death lost in the dilemma of good and evil", a player in the game but a writer last trip". Upload the blockchain and become an NPC affecting the development of other player's stories.
  • combines characteristics of blockchain

White Matrix

• a technology company specialized in research & development; blockchain middle technology.

ChainIDE:

• cloud-based integrated development environment that helps the development of smart contracts.
• It is in 100+ countries and so far 3.5M smart contracts have been built using chainIDE

Synchronization of information

Information synchronization across trust subjects

1. Medical traceability

   • Rich people in poor areas need to transfer treatment. Own data rights the doctor gives electronic medical record signature patients & private keys
   • Unlock the patient's own information with a private key after transfer. Can easily obtain patient surgical records, allergies, and medical history across trusted subjects.
   • Alliance chain pulled this before the UN health that traditional cloud database solution may cost more

2. Judicial Evidence

   • Traditional evidence deposits evidence collection schemas have more margin costs.
   • In Beijing & Hangzhou internet courts, clients deposited more quickly at a lower cost.

Blockchain native & innovation

• Technology Decoupling consortium & public chain technology
• stacks are decoupled, research direction vision diverges, and cognitive decouple.

Perspective understanding blockchain at the consortium and public chain is separated from the cognition of cutting edge technology. Technology decoupling to cognitive decoupling.

"Any sufficiently advanced technology is indistinguishable from magic" Arthur C. Clarke

dApps

DEFI

1. Compound

2. Uniswap

   Compound

   Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.

It is a lending project which deposits from the unique design of smart contract deal with the logic behind the system. Users borrow from all markets. It is basically a decentralized bank for digital assets.

Why Compound is successful

Stage 1 ~ Bank

• lease business premises
• hire personnel
• absorb savings & lend

Stage 2 ~ Internet Bank

• personal finance
• all algorithm: hire software engineers & data scientist - costly
• absorb savings & lend

Stage 3 ~ DEFI(future)

• Geeks & old

• smart contracts behind systems to save marginal costs. -absorb savings & lend

  DEFI has its won financial rules. Financial technology changes in the eyes of a naive programmer(Code is law). No banking/interest

Uniswap

It is a smart contract that automates transactions. Uniswap is based on 600 lines of Ethereum code (not complex) and has one mathematical equation.

everyone becomes a provider i.e LIquid provider and fees are paid to participants.

Over 60 million transactions have been on Uniswap, the Defi productive transaction was made in 2020.

Crypto-Art

• Crypto-Kitties
• First Supper

1. CryptoKitties: It is a dApp game based on Ethereum and SHA-256 where one can purchase, collect, breed, and sell a virtual cat that has a unique identity.

2. First Supper: Master, main canvas composed of 22 layers and 13 artists collaborative creation. It is a new field of programmable art that is gradually being established by crypto artists. It's dynamic and immutable.

Example of dApps built using Ethereum(solidity)

• Compound
• Uniswap
• Synthesis
• MarkerRaw
• Curve
• YFI
• Balancer

Ethereum is a first-time compile language that allows coders from all over the world to collaborate. You can write your own smart contract by creating your own dApp or even your own bank.

Thinking Blockchain future

Over time people have perceived that blockchain is not landing/ practical/ pseudo-seller, can be tempered with and useless, and only for data traceability.

"We are all in the gutter, but some of us are seeing stars" Wilde Oscar.

What blockchain has made possible:

• clearing & settlement
• cross-border payment
• digital
• credit traceability

"Blockchain attempts in the financial industry are just very small and cautious attempts"

Facebook Libra

Libra supports smart contracts and cross-border payment plus support from Facebook. Facebook the internet head company which has the largest population in the world under their own rules and systems to snatch the coinage adoption

Giant internet companies are pulling package, multinational companies to seize the future place in ten years.

Virtual world to avoid separation of stock It's an undisputed fact that there are limited resources on earth. This requires incremental market and internet colonization. Finite to infinite requires a kind of upgrading technology

Virtual world to avoid mutual division of stocks for once and for all through experiments with cooper surface. The new birth of a virtual world, Code is powerful with endless possibilities.

No technological breakthroughs in the world fallen shadow of anxiety-like political tension and economic turmoil. Here are some solutions:

• Future 90% of people will be in the virtual world eg cypherpunk- the matrix showing finite resources or viewing the world/earth like a for loop
• Breaking the rules of the physical world i.e scientific research, art, teaching among others will have new directions.
• Drop in the sky of rules and institutions' virtual civilization i.e economy & currency.
• Law: banning someone from the internet in the future will be as miserable as being an exile in Siberia today.
• blockchain technology: helping in law enforcement transparency
• Smart contracts enforce a virtual world where there's no restriction on violent organs on rules of credibility.
• Matter of consensus has never been absent in human history, the birth of block means the great possibility of the future.
• Code/openness and transparency for automatic exrs and execution of rules and systems thus everyone monitors and consolidates consensus.
• Sociological significance of blockchain technology, development of technology showing different meanings in psychology and sociology.

Real Life

1. Through deep learning AI is being used to determine the type of fish i.e AI recognizes salmon & sea bass.
2. Aerospace technology: if there are more planets like earth where human civilization in a distributed manner to prevent devasting attacks.