TCP/IP of Money

Felix Crisan, Co-Founder/NETOPIA

whoami

TCP/IP for Internet

● Robert Kahn and Vint Cerf in 1973-1974● Two way test in 1975 (Stanford to London)● DoD standard in 1982● Corporate (DEC, IBM, AT&T) adoption in 1985● RFC 1182 in 1989

Bitcoin

● Initial paper published on 31-Oct-2008● First block mined on 3-Jan-2009 (“Chancellor on brink of

second bailout for banks”)● Based on previous work (b-money / Wei Dai, bit gold /

Nick Szabo, Hashcash / Adam Back)● Created by an “entity” called Satoshi Nakamoto● Relies 100% on PKI/ECC

Bitcoin is

● Transmission protocol● Distributed ledger (and consensus protocol)● Stored Value Account (i.e. no settlement needed)● Currency

Blockchain is

● Transmission protocol● Distributed ledger (and consensus protocol)● Stored Value Account● Currency

Bitcoin is for Blockchain what

Internet is for TCP/IP

Let’s build a blockchain

Then (internet) and now (blockchain)● = Excitement● = Investments● = Visions of use● > adoption rate● > evolution (already: sidechains, colored coins, OAP)

It’s all about the Blockchain

Blythe Masters Tells Banks the Blockchain Changes Everything

The banker who helped give the world credit-default swaps wants to upend finance again—this time with the code that powers bitcoin.

Barclays / BBVA / Commonwealth Bank of Australia / Credit Suisse / Goldman Sachs / J.P. Morgan / Royal Bank of Scotland / State Street / UBS Bank of America / Bank of New York Mellon / Mitsubishi UFJ Financial Group / Citi / Commerzbank / Deutsche Bank / HSBC / Morgan Stanley / National Australia Bank / Royal Bank of Canada / SEB / Societe Generale / Toronto-Dominion Bank

Banking heavyweights invest in blockchain

Banking sector involvement

● Investment● Research/Reports● Experiments

Frenzy

5 Areas

● Exchanges / Financial Services● Infrastructure● Payment processing● Mining (mostly related to BTC as currency)● Wallets (mostly related to BTC as currency)

Use Cases

● Proof of ownership (digital content storage and delivery)● Proof of existence / Notary Services / Immutable Audit

Trails● Digital securities trading (ownership and transfer)● Decentralised storage ● Escrow / Custodial services● Electronic companies● Electronic voting● … and others

Blockchain is the TCP / IP of Money

Sources and Further Reading

● https://bitcoin.org/bitcoin.pdf● http://www.amazon.com/Age-Cryptocurrency-Bitcoin-

Challenging-Economic-ebook/dp/B00L73JQ18● http://www.amazon.com/Blockchain-Blueprint-

Economy-Melanie-Swan-ebook/dp/B00SNS9JLW● http://www.finextra.com/finextra-

downloads/newsdocs/The%20Fintech%202%200%20Paper.PDF