bitcoin presentation at the capital club in dubai (cointalks)

Download Bitcoin Presentation at The Capital Club in Dubai (Cointalks)

Post on 17-Aug-2014

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This has been to date my most effective presentation on Bitcoin. I've been carefully crafting the flow based on feedback from multiple audiences and I think this is it (so far). It's a bit long, but it covers most of the aspects that a broad audience (entrepreneurs, regulators, general public) cares about.

TRANSCRIPT

  • Bitcoin & Crypto-currencies: Preparing for a Paradigm Change Cointalks 2014 The Capital Club, Dubai, April 21 , 2014 by Juan Llanos, MBA. CAMS
  • Agenda 1. WHAT BITCOIN IS 2. WHY BITCOIN IS REVOLUTIONARY 3. HOW BITCOIN WORKS 4.BITCOINS CHALLENGES 5. BITCOIN & FINANCIAL CRIME 6. WHY BITCOIN MATTERS 2014 Juan Llanos
  • WHAT BITCOIN IS 2014 Juan Llanos
  • Think of Bitcoin as a numbered Swiss bank account living on your smartphone. *+ retail and online purchases can be made with virtually no transaction fees. It's the ultimate bank debit card, except there's no card or bank for that matter. Robert Berry 2014 Juan Llanos
  • A Peer-to-Peer Electronic Cash System Satoshi Nakamoto 2014 Juan Llanos
  • A peer-to-peer network that allows for the proof and transfer of ownership without the need of a trusted third party. Goldman Sachs 2014 Juan Llanos
  • A trust-free decentralized transaction ledger for tracking the ownership and transfer of scarce tokens called bitcoins. Richard Brown (IBM) 2014 Juan Llanos
  • D I G I TA L PAY M E N T S N E T WO R K ( B ) D I G I TA L TO K E N ( b ) P ROTO C O L ( B ) 2014 Juan Llanos
  • INSTANTANEOUS, SECURE LOW COST, GLOBAL TRANSFER OF VALUE DIGITAL PAYMENTS NETWORK 2014 Juan Llanos
  • DIGITAL TOKEN MONEY UNIT OF TRANSACTION BITCOIN DOLLAR VALUE OPEN MARKET COUNTERFEIT-PROOF ONLINE CASH TOTAL CAPPED INFLATION-PROOF 2014 Juan Llanos
  • TOKEN Ta n g i b l e r e p r e s e n t a t i o n o f s o m e t h i n g o f v a l u e MONEY | COMMODITY | PROPERTY 2014 Juan Llanos
  • bitcoins (tokens) SCARCE Central Banks cant inflate them DURABLE they dont degrade PORTABLE can be carried and transmitted electronically or as numbers in your head DIVISIBLE into trillionths VERIFIABLE through everyones block chain EASY TO STORE paper or electronic FUNGIBLE each bitcoin is equal DIFFICULT TO COUNTERFEIT cryptographically impossible Naval Ravikant 2014 Juan Llanos
  • PROTOCOL APPLICATIONS BEYOND PAYMENTS SECURE CONTRACTS, ESCROW, TAMPER- PROOF VOTING, NOTARY SERVICES, ETC. P L AT F O R M F O R I N N O VAT I O N 2014 Juan Llanos
  • WHY BITCOIN IS REVOLUTIONARY 2014 Juan Llanos
  • 2014 Juan Llanos
  • PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER PEER NO financial institution or central authority in control M AT H - E N F O R C E D T R U S T PEER PEER PEER PEER Revolutionary D I S T R I B U T E D C O N S E N S U S 2014 Juan Llanos D O U B L E - S P E N D S O LV E D
  • Revolutionary TRANSPARENT LEDGER Every transaction that has ever occurred in the history of the bitcoin economy is publicly viewable in the BLOCK CHAIN. Privacy without anonymity pseudonymity 2014 Juan Llanos
  • Revolutionary PAY M E N T & I D E N T I T Y S E PA R AT E D CONSUMER PRIVACY PROTECTED MERCHANTNO CHARGEBACKS / FRAUD Payment only 2014 Juan Llanos
  • Cathedral (restricted) vs. bazaar (internet) Public source code Users = co-developers Highly modular Dynamic decision-making Revolutionary O P E N S O U RC E S O F T WA R E 2014 Juan Llanos
  • Revolutionary I N C E N T I V ES F O R A L L Miners bitcoins + fees Users speed, security, privacy Developers global experiment Society transparency, financial inclusion, freedom 2014 Juan Llanos
  • HOW BITCOIN WORKS 2014 Juan Llanos
  • Marc Hochstein, Why Bitcoin Matters for Bankers 2014 Juan Llanos
  • BITCOINS CHALLENGES 2014 Juan Llanos
  • REGULATION PRIVACY CONCERNS SPECULATION SECURITY COMPLEXITY DISRUPTION POTENTIAL CHALLENGES 2014 Juan Llanos
  • Virtual currencies promise to benefit commerce on many levels, from serving the unbanked to new financial products . I challenge our innovators: devise creative solutions to prevent virtual currency abuse. FinCEN Director Jennifer Shasky Calvery 2014 Juan Llanos
  • BITCOIN & FINANCIAL CRIME 2014 Juan Llanos
  • Before March 18, 2013 2014 Juan Llanos Financial Action Task Force Groupe dAction Financire (FATF-GAFI)
  • Financial Action Task Force Groupe dAction Financire (FATF-GAFI) Special Recommendation VI Each country should take measures to ensure that persons or legal entities, including agents, that provide a service for the transmission of money or value, including transmission through an informal money or value transfer system or network, should be licensed or registered and subject to all the FATF Recommendations that apply to banks and non-bank financial institutions. Each country should ensure that persons or legal entities that carry out this service illegally are subject to administrative, civil or criminal sanctions 2014 Juan Llanos
  • Financial Action Task Force Groupe dAction Financire (FATF-GAFI) Independent inter-governmental body Develops and promotes policies to protect the global financial system against money laundering and terrorist financing FAFT recommendations define criminal justice and regulatory measures that should be implemented to counter this problem are recognized as the global anti-money laundering and counter-terrorist financing standard (AML/CFT) 2014 Juan Llanos
  • Anonymity = Anathema Anonymous identification No value limits Anonymous funding No transaction records Wide geographical use No usage limits Cash features 2014 Juan Llanos F AT F R e p o r t o n N e w P a y m e n t M e t h o d s ( 2 0 0 6 )
  • Before March 18, 2013 2014 Juan Llanos The Criminal Precedent that Could Curb Bitcoins Enthusiasm
  • E-Gold 2014 Juan Llanos ISSUER OF DIGITAL CURRENCY a medium of exchange offered over the Internet Global acceptance without the need for conversion between national currencies USED FOR ONLINE COMMERCE AND FOR FUNDS TRANSFERS BETWEEN INDIVIDUALS FOUR PRIMARY STEPS 1. Opening a digital currency account 2. Converting national currency into e-gold to fund the account 3. Using e-gold to buy a good or service or transfer funds to another person 4. Exchanging e-gold back into national currency PARTIES NEEDED: Digital currency exchanges Merchants or individuals that accepted e-gold ABILITY TO OPERATE ACCOUNTS ANONYMOUSLY Highly-favored method of payment by operators of get-rich-quick scams ALL TRANSFERS OF E-GOLD WERE IRREVOCABLE AND IRREVERSIBLE
  • 2014 Juan Llanos E-Gold 2008-07 Guilty Plea Conspiracy To Launder Monetary Instruments (federal) Conspiracy To Commit The Offense Against The United States (federal) Operating Of Unlicensed Money Transmitting Business (federal) Transmitting Money Without A License (District of Columbia) The root causes of E-Golds failure were design flaws in the account creation and provisioning logic that led to the unfortunate consequence of vulnerability to criminal abuse . We acknowledge that E -Gold is indeed a financial institution or agency as defined in US law and should be regulated as a financial institution. Douglas Jackson, E-Gold Founder
  • March 18, 2013 2014 Juan Llanos FinCEN Guidance FIN-2013-G001
  • 2014 Juan Llanos FinCEN Guidance FIN-2013-G001 Interpretive Guidance not new rule-making Centralized vs. Decentralized virtual currencies Virtual Currency Actors: USER a person that obtains virtual currency to purchase goods or services. EXCHANGER a person engaged as a business in the exchange of virtual currency for real currency, funds, or other virtual currency. ADMINISTRATOR a person engaged as a business in issuing (putting into circulation) a virtual currency, and who has the authority to redeem (to withdraw from circulation) such virtual currency.
  • FinCEN Guidance FIN-2013-G001 2014 Juan Llanos An administrator or exchanger that (1) accepts and transmits a conve

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