How to Leverage Blockchain and Ethereum for Business | Damanick Dantes, CMT | Skillshare

How to Leverage Blockchain and Ethereum for Business

Damanick Dantes, CMT, Macro Trader at Dantes Outlook

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6 Lessons (24m)
    • 1. Welcome

      0:41
    • 2. Blockchain Explained

      2:24
    • 3. Ethereum Explained

      3:27
    • 4. Ether Explained

      2:45
    • 5. ICOs and Poker Demo

      7:34
    • 6. DApps and Beer

      6:40

About This Class

Developers around the world are busy leveraging blockchain technology. Entrepreneurs of all kinds will need to keep up with the pace of innovation as conventional industries are replaced with more efficient systems. The potential is massive. This course will outline the basics of Blockchain and Ethereum platforms that enable developers to create future solutions. Students will explore innovative blockchain projects that disrupt standard contracts, the global workforce and even online poker. This class is a starting ground for developers and entrepreneurs who want to understand and apply the future of blockchain technology.

  • Blockchain and Ethereum 101
  • Ether digital currency
  • The rise of Initial Coin Offerings
  • Explore Interesting Ethereum Applications
  • Explore Interesting Apps: Poker and Beer!

Transcripts

1. Welcome: Welcome to 2018 a time when developers around the world are busy leveraging Blockchain technology. Entrepreneurs will need to adapt as traditional industries are replaced with more efficient systems. Potential is massive. This course will outline the basics of Blockchain and Ethereum platforms that power innovation. Students will explore Blockchain projects that disrupt standard contracts, global workforce and even online polar. This class is starting point for developers and entrepreneurs who want to understand and apply the future of Blockchain technology. It's a spark of inspiration for the New Year and beyond. See you there. 2. Blockchain Explained: before we delve into some use cases of watching technology, the Ethereum platform and some inspiration for entrepreneurs. Let's first start with the brief primer of what is Blockchain technology, how it's used and a little bit about cryptocurrencies. Basically, the first step is that someone requests a transaction on the network in this transaction. Once it's verified and involve anything from crypto currencies, contracts, records, exchanges of information, you name it. And a Cryptocurrency is basically the digital currency that's used to fuel this Blockchain or as a result of that Blockchain technology. It's got no intrinsic value, meaning that it is not redeemable for any other commodities such as gold. It's kept within this network. It has no physical form and exist Onley in this network of Blockchain, and it supplies not determined by any middle man or central authority or for a regular Fiat currencies essential bank. The network is completely decentralized and bike essential eyes. They mean it's period peer network that consists of computers, which they call knows, and that's displayed here. So once someone storage quest to transaction along this network, that transaction is in broadcast it to this decentralized period here, Network once it's broadcasted and then goes to this. This validation process and that validation process creates math problems along this this network, these mouth problems have been solved using algorithms. These algorithms are also organized in a way to keep everyone anonymous along the transaction on That's using crypto that's using a cryptology cryptography once that's very by, and the transaction is sent along the Blockchain. Each block records this letter so that Ledger is an added to the existing Blockchain in a way that it's permanent and no one can alter it. Once that transaction is completed, it's verified, and that user gets whatever value that was requested at the get go. So you can see the Blockchain is this sort of efficient platform less costly than the bureaucratic systems that we have currently, And it's fueled using this crypto currency. We'll learn a little bit more about how this supply to ethereal 3. Ethereum Explained: So now that I've introduced Blockchain, let's talk a little bit about what it means for entrepreneurs like yourself who aspire to achieve large scale disruption. Using a theory, which is a platform that's based on Blockchain technology. In order to do so, let's take a step back and talk more about the institutions that we grant authority to verify and keep track of transactions. And in the Blockchain community, the refer to these authorities authorities as fire or F i R E financial insurance, real estate, these air of the oftentimes large institutions that are expensive, slow process, often times less transparent. And along this system you got points of failure. And when we got points of failure, we're left with this feeling broken trust and a good example of this was 2000 and eight financial crisis, in which large banks created collateralized products, which are securities that have grouped up in order to limit risk. But often times when you limit that risk. No one can really source the point of that risk, and regulators had to go through this long process of figuring out who owns these contracts who owns these mortgages, and it makes it very difficult to value them, which is why they had they were stuck with these large, unforeseen liabilities, which resulted in a bailout, broken trust and this sort of cycle of dependency that enables that the end of the day cost taxpayers money. So in light of this 2008 global financial crisis, that really triggered the creation of Bitcoin, which was created to run on this block. Chain technology, which eliminates 1/3 party, risks with this alternative of immediate transactions using digital coins. Now Ethereum is a decentralized software platform that's based on this Blockchain technology. It's really meant to host new applications or developer applications, the theory and community calls developer applications, de APS and these D ops or developers. They use the program in line language that is similar to Java, script thes developers uses to build what we call smart contracts. What are smart contracts? They're able to execute pre program commands to settle trades and facilitate transactions without the use of a middleman, third party or central authority that we use today. These smart contracts use cryptography, which is this sort of way of their off using anonymous transactions. But those anonymous transactions get as we talked earlier this unique I get a fire that's kept along the ledgers. Everyone knows what happened prior to this occurrence. It sent through this verified system and its efficiently changing ownership or contracts throughout this system. Once you got that, you've eliminated the middleman or fire. And that enables this this process or this opportunity for entrepreneurs to step in and really disrupt these industries by looking at things like insurance, real estate as a peer to peer network instead of this third party costly, delayed, less transparent system that we've got today. 4. Ether Explained: in order to truly understand how with theory works, we have to talk about either the digital token that but pretty much fuels this ecosystem. Let's talk about history of Ethereum. Remember back in 2000 and eight, we had the global financial crisis, which triggered the emergence of Bitcoin in 2014. We have the Ethereum project, which created either or e th digital currency meant to fuel this developer application platform. Thea Theory Um foundation was established, which is a Swiss legal entity that oversees illegal and marketing efforts of I. C E O campaigns and a nice CEO with initial coin offering, which entrepreneurs or developers used to issue out digital coins or ethers. Teoh investors and investors see the potential of scalability on this platform, which increases demand along the block chain, which then increases the amount of transactions and thereby the value of these icy owes or digital coins. And that's how they get repaid. And it's further incentivizes development along the network. Folks over at the theory in project at this point created 60 million pre sale of ethers to build projects and foster this'll community of software developers, miners and investors and this community was charged with developing this broader ecosystem . Now to talk more about the ether currency, it's basically the crypto fuel that powers thes distributed developer applications along the Ethereum platform. It's used as a reward for investment developers. Then use these ethers to further phone hardware, electricity costs, processing power. They have two choices. They can either exchange her ethers for US dollars or sell the ethers to other de up or digital Ortiz Digital application developers well, then reinvest to help run the network in summary. Here's a neat tool that helps us explain flow along the theory of platform theory. Um, host these decentralized applications or developer applications de ops, who then use ether to either, um, another awarded it. Or they reinvest or sell to other developers investors and realize the potential for scale . And that further empowers a community and hopes that these tokens, or digital currencies, were increasing value as the system increases its scale and functionality. The hope is that these new applications will eliminate the forces off financial, insurance and real estate. Conventional institutions 5. ICOs and Poker Demo: So this is a neat chart that I found online basically shows the total amount fundraise over the course of maybe 3 to 4 years from 2014 to about November of 2017 and the amount of ice EOS, which is the initial coin offerings, grace to fund these Blockchain projects and take it your sense. What did it? What this is about. Estimated $6.4 billion over this time span from 2014 to November 17 on the rate is about $1.3 billion per month, and this is compared to about $300 million per month for conventional seed stage or angel venture capital deals. So the amount of money that's being flooded into these initial coin offerings isn't massive . And as you can see, they're just Pete or not peak, but like it want exponential toe around. November 17 was a flood of activity, and you could see it's mostly in developed countries. From the starts, he saw the explosive growth in Europe in North America. But now we are also seeing some little pockets of growth, and I think in the Middle East and some other spots, as well as a Caribbean, so we'll talk about some of the different projects that is really fueling the rise. And I CEOs. A good example is Virtue. Poker Thing is a Blockchain project that runs on Ethereum. It's a peer to peer, decentralized poker platform, which is really interesting. And if you scroll through the website, you get a lot more information about how it works, why they launched it and so on. And I picked poker because it's really interesting to think about Blockchain as a sort of logic framework. Great. It's a decentralized, warm, and it's really interesting to see its use case for gaming entrepreneurs who want to access the online gaming world, especially for pay. This is a whole new trajectory, in a way, because it used to be highly regulated, regulated. After a series of unfortunate events that occurred in about 2010 to 2011 there was a massive indictment poker websites on. If you guys remember like around 2010 to 2011 you had ultimate bad full tit, full tilt in all these different websites where you can go online and play poker for the exchange of money. Now that's no longer the case because regulators shut down on it. There was a lot of embezzlement and fraudulent uses off folks is money, and this is also because there was really no wave or the players to have control over there over there games or their wallets. And now, with Blockchain, the players control their digital while it via the smart contracts. And they buy in with secret cards using cryptography, which will talk about and typically you had a change in fees for the hands played on withdraws. That's with the poker companies used to charge. But now virtual poker is partnering with payment processors and financial institutions to enable Claire's Teoh freely deposit and withdraw funds, and that typically in the past, your funds were not insured. If the operator shuts down and becomes insolvent or seized and they were not required, a whole depositors money separate from their operating expenses. So that is she that opened up a huge lucky of mistrust in the system and there waas. And that's what caused this massive indictment 2012 2010 to 2011. So this is a massive opportunity for online gaming. For for money, Teoh establish itself with the unit of Trust. And I think what Blockchain and Ethereum will enable developers to enter this field and compete for. For users who want this were trustful, um, platform to be able to play freely. And typically, clearers were blindly trusting the system with her deposits that they thought were secure and properly managed. And that's not the case. But in this case, clears have full control over their digital wallet. And if you navigate over to the white people, you can see a little bit more about Albert True Poker works. It works with players downloading voter poker software. And if you think about the smart contracts, will be talked about earlier. Each table in this poor being represents a smart contract that's put onto the area Blockchain. So everyone knows what occurred in different games, and that digital wallet is kept sort of. It's kept transparent and also recorded simultaneously along that chain. If that makes sense, the tables are published along the Blockchain. The players join table, using the funds from their theory and wallet each table. Contractors should get payouts based on the game's outcome and all game results published on the Blockchain, so everyone knows would occur. And your doctor, your wallet is kept safe, anonymous and instantly paid out without any middleman transaction fees or anything like that. So you have no worry about your funds being used to cover operating expenses. And you don't have to really worry about the game holder being coming insolvent because your money is automatically set within. You keeps calling. Now the white paper. You get a little bit more about how the user you could identifiers and their cryptography, But it's really interesting into any game logic, and I'll just do a brief walk through of shuffling and encrypting deck and decrypting the deck. If you start here with Bob as a dealer, he starts to deck with his cards. He shuffles done when this happens on his computer, only so no one else use what's going on. Next bother dealer Crips, each card using the same what we call the shuffle key for each, and he uses the locks that can be added or removed in any order. He then sends it over to Alice, and she cannot read the cards because they're encrypted. She shuffles thumb and applies her shuffle key. She then passes over to Ted. He does the same thing, shuffles them with his shuffles keys, and if they were most below the players, they would do the same thing. Now this tech is indexed. Ted, who was the last player that shuffled the cards, then passes it back to Bob, the dealer who now removes his shuffle lock and the deck is now in its final, shuffled older and it will not change during the plate. He indexes a shuffle. He indexes the debt. Comes are putting a different encryption key for each car. 13 52 sense in tow. Alice. And with each card encrypted, the deck is passed and she removes the shuffle lock and adds a different index lock for each card sent. Pass it with the Ted who does the same thing that I was just did. Now it's time to decrypt the gameplay. Bob is now able to Alison talk share. There are corruption key with Bob, and now he's able to show the card in his hand as a dealer, and vice versa. So Alice has the keys. A one a two has keys T one and T two in order to read the dealer's cards of a 95. Now the community cards for everyone to show are exposed. Your hand. All players share their keys for the community card so everyone can then see them. So Bob Alice Tot Ted can all see the cards on the table. That's where the way it's kept encrypted, deep, indexed and then decrypted. So it's kept along the system where everyone knows the winner of the game, what occurred during that game and so on and so forth. Your digital wallet, your digital wallet is simultaneously updated in that process, so there's really no middleman. This speed of transactions air simultaneous. And that's what's really interesting. Or entrepreneurs want to happen to the Blockchain gaming at work. Next, we'll see some other use cases. 6. DApps and Beer: So the last step is really, really cool. I figured out a way for us to sort of engage and interact with one another as entrepreneurs . And to start at once, we learned about Blockchain and theory on how these tokens were the rise of I CEOs of the use case for poker. Other use cases can be found by logging on to state of the op stock calm. So Diaz, remember we talked about earlier, um are basically these projects along the block chain running on a theory built on ethereum and what you could do the challenge. Now it's a lot into, stated the app. So just scroll through some of the different projects and if you click on one of them, you can go to the website. You can see more about the project of the author, which is really, really cool. So these are all entrepreneurs. Team developed developers who have developed code along the Blockchain built on a theory up to disrupt different industries, whether they be financial insurance, realistic gaming, lotteries, you gave it. There's a lot of different things here, and you can also search for different use cases, one that I saw earlier this month. I don't think it's on here anymore. But it was insurance for farmers, which is actually pretty great Cool because farmers, if you know, having feast by declining crop prices and high they think it was high land values or something like that. But insurance is a really, really tough industry out Midwestern United States, and Blockchain can be one of those things. Can I could mitigate some of that risk of, you know, high fees or getting lost in translation things like that. And it really breaks down this thesis centralized system to make it more decentralized and efficient. So that's just some of the interesting examples. The challenges look through some of this and figure out different areas, um, or different d upset you find promising. Note them down in the projects or the common section, and we can talk about it. I didn't think about some areas that you find are sort of inefficient, costly and slow, and think about some ways that Blockchain or Ethereum can top into that offer a much more efficient method of transaction. And I think that would be really, really cool for us to sort of brainstorm and then the next step in the Entrepreneur Series will be talking about How do you develop a team? How do you get that idea and how do you find out the feasibility of a project? And then we'll tie it all back to Blockchain, which is the future of business, if you think about it. Lastly, use case, which is really fun, is if you search beer on safety ops on this is a really good one. It's called Next Craft Beer, and they look at craft your supply chain management using tokens and a mobile up to increase engagement and rewards by linking quality from the brewery or the farm to the consumer, which is really need. If you click on it, you could see the office, your CR Rogers and that, and you can go to the website and see more about next craft. Here you can see here they created a crafted, crafted a platform for breweries. You can also see the white paper and learn more about it. Schools, white paper. Most of these sites do help. Wipe. It was explain more about how it works, so take some time and go through it. And as you're learning about these different use cases in real time, you can learn about how a theory works, the technological stuff behind it. They talk more about the opportunity behind beer, and this is essentially your business plan geared towards people in the developer world, right? They want to know what's the opportunity. They also want to know the challenges and solutions and how this can scale and how it will Companies adopt lunch in technology. So the solution that they have here is that it's a layer built on top of the block chain, which we've established utilizes a smart contract technology similar to the cooker app that we just saw and allows craft beer breweries to track the products progress from the farm to the bottle tracking goods view the Blockchain raises the bar all the production and distribution and also uses accountability. So the ingredients that you used that consumers demand the ability aku accurately source and figure out if these are the type of ingredients that they want it. They also have, ah, way off engagement or loyalty to that brand because they know exactly what they're getting and tokens that they're using these beer tokens gives them rewards for using the air, so it's a good way to engage with your customers and lock them it. Here's a supply chain use case, so farm uploads the details regarding the crop, origin and production. Three. Use of pesticides, fertilizers, chemicals in this barley knots, then sent to the brewery received a notification and should deliberate off these ingredients that were made on the farm. They didn't receive detailed information. The upload that beer recipe onto the data bays the Marie then add secure QR code on the packaging and that provides an app for the consumer at the end. These. Then it's sent to the distributor that is sure to receive notification shipments. And they also see the details of guarding origin instructions on how to serve the beer sent sent over to the retailer, who gains transparency of this notification of shipments and delivery of the bear and then used a transparent details to upload, maybe potential food hearing suggestions along database. They also accrued the programs, according lastly, the consumer and then scans the QR code via the APP. They receive full transparency regarding the ingredients in beer, the origin delivery, the time frames They also receive those food pairing suggestions that were from the retailer that sourced it directly along the block chain, back to the farm and then the consumer as a buy and drink the beer. They also earn tokens, this loyalty program that keeps them engaged. It also increases the value of these tokens of beer. And it creates this whole adoption along the Blockchain, which we want scalability and also enables them to tap into new markets and really focus on every link long chain being transparent, cost efficient and engaging to the end user being the consumer. So I thought that was really fun to just end on the high note of beer so you can't go wrong with beer poker Blockchain and teaching the next series Entrepreneurs and hope you enjoyed it.