Prof. Dr. Paul Müller

13th of November 2017

Jours fixes usually take place on the first monday of the month, starting at 5:00 p.m., in HoF E.01 / Deutsche Bank of the House of Finance (Campus Westend).

[Prof. Dr. Paul Müller, TU Kaiserslautern]

THE BLOCKCHAIN - a new foundation for building trustworthy and secure distributed applications (DAPP's) of the future

Bitcoin took the world by surprise in the year 2009 and popularized the idea of decentralized secure monetary transactions. The concepts behind it, however, the BlockChain can be extended to much more than just digital currencies. A blockchain in general is a distributed, verifiable datastore, which works by the confluence of public-key cryptography with the concept of the proof-of-work.

While the Bitcoin BlockChain is restricted to only one application: money transfer, Ethereum extents this idea by marrying the power of decentralized transactions with a Turing-complete contract system. A Turing-complete system is a system that, by definition, can perform any computation. In other words, if there is an algorithm for something, it can express it. Ethereum scripts, called smart contracts, can thus run any computation.

In the first part of the talk we will highlight some architectural design decisions of the Bitcoin idea and its implications to the blockchain. In the second part we focus on a 2nd generation blockchain called Ethereum. Here we discuss the differences to the 1st generation Bitcoin blockchain as well as the concept of smart contracts, Distributed Applications (DAPP’s), Democratic Autonomous Organizations (DAO’s) and Decentralized autonomous corporations/companies (DAC’s). The talk ends with some examples and experiments.