To Blockchain or not to Blockchain, that is the question…or is it……

2. To Blockchain or not to Blockchain, that is the question…or is it…… • What is it? • How does it work? • Crypto currency? • Fad or Fundamental Change? • Trust

3. What is Blockchain? • First block chain was in 1494, manual accounting ledger with DUAL ENTRY – debit and credit – clean books? Double-byte accounting? • Blockchain technology offers a way for untrusted parties to reach agreement (consensus) on a common digital history. A common digital history is important because digital assets and transactions are in theory easily faked and/or duplicated. Blockchain technology solves this problem without using a trusted intermediary. • Opposite of everything in IT that we have strived for, centralization vs. decentralization • There are “coin-based” blockchains, like Bitcoin • There are “contract” based blockchains, like Etherium • There are “identity” based blockchains, like

7. How does it work? Banking today…. Banking tomorrow…there is no Dave…

8. Fad of Fundamental Change? • Identity - Mobile App and Device Token with Biometric Ledger • Land Title – Irrefutable proof of ownership - digitally • Contracts – impossible to dispute – legal process would radically change • Gambling Betting – must post asset to block prior to bet, no credit • Health Care – Medical Record is universally available with biometric and mobile app token for identity, prescription fraud is eliminated, and medical malpractice is virtually impossible due to bad information or missing information • Wealth Management – SEC – if they get their way, insider trading would not be possible as all trades would need to be approved by a computer • Tax Liability – if regulated, CPA’s will not exist, and neither will the IRS

9. Healthcare?

11. Trust • “Blockchain will drastically reduce the “Cost of TRUST” by mean of radical and decentralized approach to accounting, and by extension, create a new way to structure economic organizations” • “Ethereum’s blockchain allows for the creation of a decentralized supercomputer. This supercomputer is the first one of its kind. Computational power is limited, and developers pay with ether to use the Ethereum blockchain. Ether’s dollar value is subject to the supply-and-demand mechanics found in any marketplace. If investors find the Ethereum blockchain valuable — and developers are building decentralized applications— then demand for ether might rise and its price could rise. The opposite could also happen”.

13. Next we have the method that is used to initialize instances of the contract. This method is called a constructor, and it is given the same name as to the class we created at the beginning (WeatherBet), a naming practice typical to object-oriented programming. The method has parameters that are defined within the parentheses. Here we define the time when the bet ends (betEndTime = _betEndTime;) and the account numbers of Adeline and Bob that function as identification markers (bettor1.addr = _bettor1; and bettor2.addr = _bettor2;). // Create a new weather bet between bettor1 and bettor2 that will be resolved at _betEndTime // using temperature oracle at `_tempOracle`. function WeatherBet(uint _betEndTime, address _tempOracle, address _bettor1, address _bettor2) {// end bet and reimburse both bets function kill() external { // only bettor1 or bettor2 can end the bet if(msg.sender != bettor1.addr && msg.sender != bettor2.addr) return; bettor1.addr.send(bettor1.value); bettor2.addr.send(bettor2.value); suicide(msg.sender); Source: Scripted – Blockchain for online dispute resolution, smart contracts, and betting…

14. Resources… • https://azure.microsoft.com/en-us/solutions/blockchain/ • https://www.ibm.com/blockchain • https://www.bloomberg.com/news/articles/2018-03-21/google-is-said-to-work-on-its-own-blockchain-related-technology • https://aws.amazon.com/partners/blockchain/ CONTACTS: • Bobby Simpson, CIO – Finley & Cook • bsimpson@finley-cook.com • Dave Bailey, CTO – Arctic IT • dbailey@arcticit.com

15. Q & A