Blockchain how it works and why it is important. Robert Schwentker Blockchain University, President

Transcription

1 Blockchain how it works and why it is important Robert Schwentker Blockchain University, President

2 AGENDA 1. What is a blockchain? 2. Blockchain related VC investments 3. Blockchain use cases

3 How seriously should you take blockchain technology? About as seriously as you should have taken the internet in "the early 1990's. Blythe Masters Chair of the Board of Santander Consumer USA

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5 World Economic Forum Survey Blockchain 'Tipping Point' by 2023 Blockchain technology as one of SIX mega trends Surveyed 800+ information & communications executives & experts "an emerging technology that replaces need for 3 rd party institutions to provide trust for financial, contract & voting activities" E CASH (1990) to BITCOIN (2008)

6 BLOCKCHAIN TECH HAS MANY APPLICATIONS. ONE OF THE FIRST WAS BITCOIN.

7 FROM HTTP TO BTC

8 POWER OF BITCOIN BLOCKCHAIN 13,000 times greater World's 500 super computers combined The Economist January 2015

9 BLOCKCHAIN OF BITCOIN

10 BLOCKCHAIN BITCOIN

11 WHAT S A BLOCKCHAIN Secure System of Record Records transactions Time Based

12 WHAT S A BLOCKCHAIN (cont.) Unalterable Alterations detectable A blockchain is a protocol for building an immutable historical record of transactions

13 WHAT S A BLOCKCHAIN (cont.) Network of communicating computer nodes running blockchain software Each node validates transactions Multiple independent verifications to avoid double spend

14 BLOCKCHAIN CHARACTERISTICS Traceable like Transactions are: Pseudonymous, not anonymous Tracked and logged forever Easier for law enforcement to trace than cash, gold or diamonds Available for all to see

15 Permissioned ledgers Types of Ledgers Permissioned permissionless hydrabinacoin Permissionless ledgers Source: Tim Swanson

16 BLOCKCHAINS AKA LEDGERS Distributed ledgers could save banks as much as $20 billion annually in infrastructure costs by 2022 Spanish bank Santander

17 DISTRIBUTED LEDGER: NETWORK THAT RECORDS OWNERSHIP THRU SHARED REGISTRY Source: Santander Fintech 2.0 Paper

18 AGENDA 1. What is a blockchain? 2. Blockchain related VC investments 3. Blockchain use cases

19 BITCOIN BLOCKCHAIN INVESTMENT ~$1 Billion ~1,000 Startups ~10 incubators / accelerators ~20 countries w/ VC backed startups

20 VENTURE INVESTMENT AREAS Infrastructure Wallets Universal Exchanges Payment processing Financial services Mining

21 With Bitcoin's Price Down, VCs Turning to Blockchain Technology Bart Stephens, Blockchain Capital Eden Shochat, Aleph Venture Capital Marc van der Chijs, Cross Pacific Capital's Jeremy Liew, Lightspeed Venture Partners

22 Chinese Auto Giant Wanxiang Plans $50 Million Blockchain Fund 10 subsidiaries in financial sectors including: Banking Insurance Futures Asset Management

23 FIRMS RESEARCHING BLOCKCHAIN TECH

24 R3 BLOCKCHAIN CONSORTIUM Bank of America Bank of New York Mellon Barclays BBVA Citi Commerzbank Commonwealth Bank of Australia Credit Suisse Deutsche Bank Goldman Sachs HSBC J.P. Morgan Mitsubishi UFJ Financial Group Morgan Stanley National Australia Bank Royal Bank of Canada Royal Bank of Scotland SEB Societe Generale State Street Toronto Dominion Bank UBS

25 AGENDA 1. What is a blockchain? 2. Blockchain related VC investments 3. Blockchain use cases

26 Gold Remittances Syndicated Loans Diamonds Private shares Property titles/ Land records U.S. Treasury Repos Interbank payments Airline Miles Source: Bloomberg Markets magazine, October 2015

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28 COLLATERAL BACKED P2P FINANCING

29 COLLATERAL BACKED P2P FINANCING 1. Fast international money transfer, backed by programmed bond as collateral

30 COLLATERAL BACKED P2P FINANCING 1. Fast international money transfer, backed by programmed bond as collateral 2. Buyer funds bond (a) with dollars

31 COLLATERAL BACKED P2P FINANCING 1. Fast international money transfer, backed by programmed bond as collateral 2. Buyer funds bond (a) with dollars 3. Seller transfers ownership of bond (a) to bond (b) controlled by the Lender. Lender gives Seller the equivalent value in local currency factoring in the interest amount based on bond (a) duration.

32 COLLATERAL BACKED P2P FINANCING 1. Fast international money transfer, backed by programmed bond as collateral 2. Buyer funds bond (a) with dollars 3. Seller transfers ownership of bond (a) to bond (b) controlled by the Lender. Lender gives Seller the equivalent value in local currency factoring in the interest amount based on bond (a) duration. 4. The Seller ships goods and triggers the escrow release

33 COLLATERAL BACKED P2P FINANCING 1. Fast international money transfer, backed by programmed bond as collateral 2. Buyer funds bond (a) with dollars 3. Seller transfers ownership of bond (a) to bond (b) controlled by the Lender. Lender gives Seller the equivalent value in local currency factoring in the interest amount based on bond (a) duration. 4. The Seller ships goods and triggers the escrow release 5. The Lender receives the funds as appropriate

34 WHAT DID WE LEARN? Blockchain Basics Venture Investment & Ecosystem Use Cases: Financial & Non Financial

35 Blockchain how it works and why it is important Robert Schwentker Blockchain University, President

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