blockchain: a game-changing technology

Eddy TraviaCEO at Coinsilium

@startupeddy

(c) Coinsilium November 2016 - not for redistribution

Blockchain: A Game-Changing Technology

Disclaimer

The views and information in this presentation and document are intended solely for educational and general information purposes.

The document and presentation are not intended to influence any financial or legal decisions.

Coinsilium Group and its representatives do not take any responsibility for actions taken as a result of this presentation.

2

Eddy Travia - @startupeddy

• CEO of London-quoted blockchain technology investment and development company (ISDX:COIN)

• Private equity fund manager in Greater China (2004-2013)

• Co-founded first Bitcoin startup incubator 'Seedcoin' in 2013

• Pioneer investor 15 blockchain companies around the world

3

What is a blockchain?

“ Blockchain is a peer-to-peer distributed ledger technology for a new generation of transactional applications that establishes trust, accountability and transparency while streamlining business processes. ”

source: hyperledger.org

4

What’s so special?

“ The distributed ledger is a permanent, secure tool that makes it easier to create cost-efficient business networks without requiring a centralized point of control. With distributed ledgers, virtually anything of value can be tracked and traded. ”

source: hyperledger.org

5

Raistones: another way to keep wealth records

6

Where does blockchain come from?

The concept of a blockchain was first introduced by Satoshi Nakamoto in 2008, in the midst of the financial crisis, to serve as the ledger for Bitcoin, a purely peer-to-peer version of electronic cash.

7

Public vs Enterprise Chains

• This peer-to-peer network can deliver access to a public or a private infrastructure.

• Running a network node may or may not require permission.

• Participating in data updates may or may not require permission.

• Transacting or accessing some or all of the data may or may not require permission.

8

Industry Initiatives

9

• R3CEV : consortium of 60 banks• Experimenting with more than 5 ledgers (R3 collab)• Hyperledger : led by Linux foundation and IBM• Digital Asset Holdings : post trading settlement revamping with

ASX & DTCC (PoC for repurchase agreements)

“ The Hyperledger Project is a collaborative effort created to advance blockchain technology by identifying and addressing important features for a cross-industry open standard for distributed ledgers that can transform the way business transactions are conducted globally. “

10

Hyperledger

Smart Contracts & Oracles

• Smart contracts are sets of encoded instructions, embedded in the blockchain, that can be executed by the network nodes.

• Some blockchains offer basic smart contracts capabilities (i.e. multisig) others offer advanced smart contracts capabilities (a.k.a. turing-complete).

• The outcomes of the smart contract executions is often one or more transactions.

• Execution of a smart contract may require accessing external data.

• Oracles are trusted smart contracts in charge of collecting external data for consumption by others

11

DAO

“ A DAO (decentralized autonomous organization) is […] an entity that lives on the internet and exists autonomously, but also heavily relies on hiring individuals to perform certain tasks that the automaton itself cannot do. “

source: Vitalik Buterin - May 2014

“DAOs, DACs, DAs and More: An Incomplete Terminology Guide”

12

Blockchain Overview

Blockchain IndustryInvestment Landscape

13

Investments in Blockchain

14

More than US$1Bn invested to date (since 2013)

Investments in Blockchain

15

Blockchain Ecosystem

16

Investments in Blockchain

17

• Bitcoin startups focus on payments, exchanges, trading, remittances or other digital currency activities

• Blockchain startups focus on ‘non-currency’ activities, i.e. securities settlement, property titles, asset provenance...

• In Q1 2016 VC investment in blockchain and bitcoin companies outpaced that for startups in other industries.

• Number of blockchain startups has grown four-fold in the last year.

• Total investment in the space exceeded $1bn across 2015 - 2016

New Financing Methods : ICOs

18

• ICOs are Initial Coin Offerings • Controversy about legal status (Howey test)• Appcoins vs. company shares• More than $200m raised through ICOs, ex.: Golem Project raised

$8.6m (in ETH) in less than 2 hours

19

enterprisepublic

turing-completesmart contracts

Tech Ecosytem

“ Businesses and governments can use Factom to simplify records management, record business processes, and address security and compliance issues. ”

“ [Factom enables developers to] create applications that store data in the blockchain without the speed, cost, or size limitations of writing data directly to the Bitcoin blockchain. “

source: factom.org

20

21

Private & Public Sectors

22

Multi-blockchain Anchoring : Redundancy Architecture

23

Land Registry Project

The Economistcover article on blockchain

technologyOctober 31st, 2015

“ Rather than trying to scale up blockchain technology, BigchainDB starts with a big data distributed database and then adds blockchain characteristics - decentralized control, immutability and the transfer of digital assets. “

source: bigchaindb.com

24

ethereum

“ Ethereum is a decentralised platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference. ”

source: ethereum.org

25

RSK smart (Rootstock)

“ RSK is the first open-source smart contract platform with a 2-way peg to Bitcoin that also rewards the Bitcoin miners via merge-mining, allowing them to actively participate in the Smart Contract revolution. RSK goal is to add value and functionality to the Bitcoin ecosystem by enabling smart-contracts, near instant payments and higher-scalability. ”

source: rootstock.io

26

27

Blockchain Tech Marketplace

Risks & Benefits

• Resilience

• Immutability

• Auditability

• Trust

• Cost Savings

28

• Security

• Scalability

• Attacks

• Collusion

Challenges

• Costs vs Benefits

• Adoption

• Privacy

• Legality

• Regulation

29

Thank you

30

Eddy Travia

@startupeddy@CoinsiliumGroup