RegTech 2.0

6 Age of Massive Multiparty ICCT** 2015 2035a.k.a Blockchain golden age (China)

5 Age of Information 1971 2010 - 2020 2015* & Telcos (USA, Europe, Asia)

4 Age of Oil, Automobile 1908 1960-1970 1974Mass production (USA, Europe)

3 Age of Steel, Electricity 1875 1904-1914 1920& Engineering (USA & Germany)

2 Age of Steam 1829 1866-1873and Railways (Britain & USA)

1 The Industrial 1771 1820Revolution (Britain)

Installation period Deployment periodTechnological revolution

*Carlota Perez, Technological Revolutions and Financial Capital, 2003, p.87

Dept cycle

** Information Coordination Computing Technology: Richard Baldwin, The Great Convergence , 2016

attentiontech 1918

99 years later: Who has the people now?

The tissue connecting 3bn active users*

0.5

1.5

1.0

2.0

Facebook Messenger WhatsApp Instagram WeChat BaiduMaps

iOS GoogleAndroid

ChineseAndroid

Bnmau*

** mau = monthly active users

The tissue connecting 3bn active users*

0.5

1.5

1.0

2.0

Facebook Messenger WhatsApp Instagram WeChat BaiduMaps

iOS GoogleAndroid

ChineseAndroid

- WeChat - messaging service offers 815 million monthly active users access to 12 million Applications & AI -Chat Bots trying to catch your attention and intent 24/7

100200300400

500600700800mau

2013 2014 2015 2016

WeChat monthly active users (MAUs) & est* revenue

*ARPU (Average Revenue Per User) $7

0.71.42.12.8

3.54.24.95.6$ Bn*

Chinese yuan. Rate: US$1 = RMB 6.5.

Tencent Llc owns and develops WeChat and several other Internet Plus Ecosystem companies. They contribute to Massive Multiparty Computing offering a combination of mobile ChatBots + AI + B2C interaction.

WeChat Bots - simple IX-I for B2C service value chain

The tissue connecting 3+bn peoplemobile monthly active users / devices (Bn)

WhatsApp

0.5

1.5

1.0

2.0

Facebook Messenger WhatsApp Instagram WeChat BaiduMaps

iOS GoogleAndroid

ChineseAndroid

- WhatsApp 2017 - enables B2C messaging services - offers businesses access to 1 billion monthly active users

1B 42B

1 Billionmonthly active users

42 Billionmessages sent per day

1B

1 Billiongroups

57 57 Engineers$1bn estimated revenue 2017

B2C B2C MessagingFacebook David Fehner: Business to customer interaction will bring WhatsA$1bn estimated revenue 2017$2bn estimated revenue 2018

WhatsApp ...

B2C

WhatsApp B2C MessagingStarting this year, we will test tools that allow you to use WhatsApp to communicate with businesses and organizations that you want to hear from. That could mean communicating with your bank about whether a recent transaction was fraudulent, or with an airline about a delayed flight. We all get these messages elsewhere today – through text messages and phone calls – so we want to test new tools to make this easier to do on WhatsApp, while still giving you an experience without third-party ads and spam.”https://blog.whatsapp.com/615/Making-WhatsApp-free-and-more-useful

Multisided Platforms - attention - intent - action

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

20153bn people

20205bn people

attention / intent

Platforms’ positive externalities

User User User User User Users Users Users Users Users

massive multiparty attention & intent coordination platforms

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

(prod)user

attention / intent

focusing on: permissions, paying for access gatekeepers, pipe bottlenecks, slow in innovation, 15 years behind in tech

Thin reach Gatekeeper Governments

FIRM HR CAP CUST FIRM TAX HR LAW HR INFR

regulation 1.0

dead registry data /

judiciary- provenance- & identity data

thin data

thin reachthin regulation

Web platformservice paradigm

2000

“Coordination”paradigm

2035Ethereum - GPU - AI

2015

Source:Carlota Perez, Technno-Economic Paradigm ShiftsNick Grossman / Union Square Ventures, Shift 2015 Slides (Slideshare)Richard Baldwin, The Great Convergence , 2016

au revoir Welfare State. Dieu vous bénisse.歡迎 Leviathan with thousand machine brains!

- The Regulation 1.0 Endgame -

3 Strategic Gov Options - Red, Blue and Black oceanThe Dangerous, The Ridiculous, The Impossible

Red: Competeuntil the sea is redof blood.

Blue: Find internal non-customers, create new demand there and respond with pseudo action (to spend all that tax money)

Black ocean: Change the rules, create new policies, gain unfair advantage (Anne Berner showed this is impossible here)

Massive multiparty attention and intention coordination tech:task-oriented, serverless, small data morphing & blending AI, mobile IX, sharded blockhain backend

5 bn smartphones

2035

Regulation 2.0 - Gov Reg

2020