Bitcoin & the Blockchain:the future of programmable money

July 17th, 2015

A brief history lesson

• Money has always existing in different forms– Barter, Island of Yap and Stone Money– Commodities (Foodstuff, Gold, Gems)– Coins, Paper Money (Fiat Currency)

• Credit Instruments– Merchant banking letters of credits (Milan

clearing house)

Digital Money?

• Dr. David Chaum published in mid 80s series of papers to define digital money

• Mid-90’s various attempts – all failed– Digicash, PayPal (X.com), Flooz, Cybercash,

Zeroknowledge• Who do you trust? All required trusted

intermediares

2009

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2015 / Today

2008

Open source software released2009

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2015 / Today

Commerce Begins2009

2010

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2015 / Today

2009

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2015

Source: josicmedia.com

2009

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2011

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2015

“Bitcoin is evil”

“we do not see this particular experiment lasting”

Paul Krugman - Econonist

Paul Singer – Hedge fund manger

Bitcoin price rise ($10-$100)2009

2010

2011

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Rise in Merchant Adoption2009

2010

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2015 / TodaySource: CoinTelegraph

Bitcoin drama – the dark web2009

2010

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2015 / Today

Oct-November 2013 ($125-$1120)2009

2010

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Bitcoin Mining Goldrush

Source: http://bitcoinomics.net/your-toaster-isnt-mining-bitcoins/

2009

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2015 / Today

“Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014”January 21st 2014

Marc AndreessenFounder of Netscape

Source: Andreessen Horowitz

Bitcoin drama continues Mt. Gox

Source: https://www.cryptocoinsnews.com/mt-gox-delay-investigation/

2009

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Bitcoin price crashes2009

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Bitcoin price crashes2009

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TODAY $240-$2602009

2010

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2015 / Today

A new digital asset• Divisible

• Scarce

• Transferrable

• Unforgeable

• Decentralized

Source: rollsscaffold.com

Bitcoin Infrastructure Investments

21 Inc.$116m $30.5m $30m

$106m $21m

< $500m invested in Bitcoin ecosystem

Wall Street wakes up to Bitcoin

(in a big way)

Wall St. Wakes up to Bitcoin

Blockchain Infrastructure

Source: http://bitcoinomics.net/your-toaster-isnt-mining-bitcoins/

Jan’09 (0.0000) - April’15 (346,028,0956)

PowerfulDistributed

Limited

The Blockchain is a Ledger

All Ledgers Too

Stocks & Bonds

Currency

Trading

Settlement

Traditional Ledgers

Closed Systems

Hacked & Accessed

Heavy Transaction Fees Laborious Verifications

Slow Centralized

Shared Cryptographic Ledger

Using Proven Cryptography

Nodes Updates Copies of the Ledger

No Central Point of Failure

Traditional Ledgers

Closed Systems

Hacked & Accessed

Heavy Transaction Fees Laborious Verifications

Slow Centralized

Blockchain

Open Sourced

Cryptographically Secure

Network Verified Beyond Borders

Fast Decentralized

Potential Markets

• Remittances• Payments• Crowdfunding• Equity offerings (Crypto)• Derivatives, FOREX, Bonds• Smart contracts• Smart property• …

TCP/IP

Fiber Optics

TCP/IP

Fiber Optics

Provably Fair Financial Plumbing

Source: http://www.chicagomag.com/Chicago-Magazine/May-2008/Plumbers-Who-Wont-Drain-Your-Wallet/

Provably Fair, Open, Global Financial Markets

Source: http://http://www.adls.org.nz/cpd/cpd-events/170/the-financial-markets-conduct-regulations-charting-the-changes

Expanding to 2.5 Billion Unbanked

Source: social.yourstory.com

Cross-Border Commerce

Source: crossborder-ecommerce.com

Removing Third Party Friction in International Business

Source: http://tonyortega.org/

Decentralized Secure Infrastructure

Source: http://www.coda.co/

For Identity

For Assets

For Trust

Source: http://blog.bcwinstitute.org/

For Assurance

Source: http://blog.bcwinstitute.org/