Introduction to Blockchain

Igor Pejic

Bankers and non-bankers alike have become familiar with the terms cryptocurrencies and distributed ledgers. In this video, Igor explains some key concepts relating to blockchain including what it is, the difference between centralised and decentralised blockchains and smart contracts.

Blockchain

Fintech

Overview

Following the global financial crisis of 2008, a short, mysterious paper written by Satoshi Nakamoto outlined the world’s first real cryptocurrency, Bitcoin. The underlying technology behind Bitcoin is known as blockchain: a computer protocol enabling distributed ledgers and promising almost instantaneous and near free-value transactions. Blockchain allows money and assets to be moved without a central authority; validation is performed via a peer-to-peer network without the need for intermediaries to authenticate, clear or settle transactions. The second generation of blockchain utilises smart contracts which can automatise a series of blockchain-based actions and thereby have a disruptive impact, not only on payments but on the economy as a whole.

Key learning objectives:

What are the fundamental differences between blockchain and the current payment systems?
Outline the differences between centralised and decentralised blockchains
Define ‘smart contracts’ and explain how they can be used to evolve blockchain

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Summary

Expert

Igor Pejic

Igor is the author of “Blockchain Babel: The Crypto-Craze and the Challenge to Business.” The book was a Financial Times Book of the Month and a finalist in the Bracken Bower Prize. He has published more than 50 articles on blockchain and financial technology. Moreover, Igor is the Head of Marketing and Product Management for BNP Paribas Personal Finance in Austria.