blockchain: a game-changing technology
TRANSCRIPT
Eddy TraviaCEO at Coinsilium
@startupeddy
(c) Coinsilium November 2016 - not for redistribution
Blockchain: A Game-Changing Technology
Disclaimer
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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
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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
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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
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Raistones: another way to keep wealth records
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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.
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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.
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Industry Initiatives
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• 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. “
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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
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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”
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Blockchain Overview
Blockchain IndustryInvestment Landscape
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Investments in Blockchain
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More than US$1Bn invested to date (since 2013)
Investments in Blockchain
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Blockchain Ecosystem
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Investments in Blockchain
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• 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
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• 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
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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
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Private & Public Sectors
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Multi-blockchain Anchoring : Redundancy Architecture
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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
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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
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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
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Blockchain Tech Marketplace
Risks & Benefits
• Resilience
• Immutability
• Auditability
• Trust
• Cost Savings
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• Security
• Scalability
• Attacks
• Collusion
Challenges
• Costs vs Benefits
• Adoption
• Privacy
• Legality
• Regulation
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Thank you
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Eddy Travia
@startupeddy@CoinsiliumGroup