open & private blockchains at cscmp benelux supply chain event
TRANSCRIPT
@SDWOUTERS
BlockchainsOPEN & Private
samwouters.com
Speaker on Bitcoin & Blockchain
Digital Transformation Consultant at Duval Union Consulting
WWW
Sam Wouters
@sdwouters
‣ We are a digital consulting company.
‣ Founded in 2009 as DearMedia.
‣ We work for large European clients.
‣ We have a strong vision on the impact of digital and act accordingly.
‣ We are advisors, writers, coaches and entrepreneurs.
One of many DISRUPTIVE PLAYERS
Invented in 2008: a system to eliminate the need for “trusted” third parties
bitcoin.org/bitcoin.pdf
@SDWOUTERS
“bitcoin is digital money”
Who has heard of Bitcoin before today?
Positive image? Negative image?
Who fundamentally
understands Bitcoin?
Media that predicted The Death of Bitcoin
bitcoinobituaries.com
Deaths by publication:
DailyPaulCNNCity A.M.ChronBroken Librarian BTC Feed Business InsiderBloombergAbout.com Acton BizNews.comArduino TronicapenwarrAOL
Financial TimesFester’s DenDavid Seaman FortuneForbesFool.com FusionGizmodo Australia IEX International Business Times Javamazon Moneygeek
MyBroadBandMother Jones News.com.au NewStatesman NY Mag OUI Share
The New York TimesThe KernelThe Calculating InvestorStreet InsiderSputnik NewsPYMNTS.com Reuters Robert Nielsen Salon Seeking Alpha
The Underground EconomistThe Telegraph The Washington Post The Weekly StandardUSA Today Valley News VICE News Wired YahooWall Street Daily
@SDWOUTERS
Bitcoin has been running non-stop for 7+ years
160M 434K $150M $105B
Transactions Blocks in the blockchain
in transactions per day currently
Transferred over the blockchain
466M 16M 11B 160K
bitcoins transferred over the blockchain
Amount of Bitcoins that currently exist
Value of all bitcoins
companies (indirectly) accept bitcoins
Banks: Bitcoin can’t work, it’s all about the Blockchain
@SDWOUTERS
Bitcoin is a way to digitally transfer ownership
without a middleman
The blockchain is a database that records
ownership throughout time
What’s the difference?
A 5 minute explanation won’t make you understand why they matter
@SDWOUTERS
WHAT can we do with them?
HOW do they work?
WHY do blockchains
exist?
@SDWOUTERS
WHY do blockchains
exist?
@SDWOUTERS
WHY do blockchains
exist?Open Blockchains
@SDWOUTERS
Why do digital money transfers take days?
@SDWOUTERS
Fees hurt profit margins for businesses
9% FEE?
@SDWOUTERS
Financial innovation is held back by rules and regulations
@SDWOUTERSBut this is innovation!
Say that to the 40% unbanked adults worldwide…
And to the people who pay 5-25% money transfer fees
@SDWOUTERS
@SDWOUTERS
If you want to send money you have to
WAIT PAY
@SDWOUTERS
Yet we can do THIS?
@SDWOUTERS
@SDWOUTERS
This is about more than global payments
@SDWOUTERS
We have more debt than can EVER be repaid
@SDWOUTERS
We have unprecedented money printing
@SDWOUTERS
Soon you’ll be PAYING banks so they can do risky investments with your money
Resulting in "cosy" relationships between financial businesses and regulators.
We are fighting a never ending flood
@SDWOUTERS
@SDWOUTERS
WHY do blockchains
exist?Open Blockchains Private Blockchains
Make existing players a few % more efficient
Make the world a fairer place
@SDWOUTERS
HOW do they work?
WHY do blockchains
exist?
@SDWOUTERS
Open Blockchains
HOW do blockchains
work?
1 Censorship resistance
@SDWOUTERS
Ownership is TRANSFERRED directly between two parties
@SDWOUTERS
Transactions are synchronised through the network
How do we Record
transactions so nobody can change them?
@SDWOUTERS
The blockchain is a global “bookkeeping” system
It records who owns what, and when
@SDWOUTERS
@SDWOUTERS
Open Blockchains
HOW do blockchains
work?
1 Censorship resistance
2 Decentralization
@SDWOUTERS
Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in charge Trust a fixed set of rules
Centralized
All organizations
@SDWOUTERS
Problems Solutions
Central point of failure Decentralized network
Expensive to secure Shared security cost
Trust who is in charge Trust a fixed set of rules
Decentralized
The Internet & Bitcoin
Centralized
All organizations
The Bitcoin network is 20.000 times stronger than the top 500 supercomputers in the world
Blockchains are secured by computing power from people and companies all over the world
@SDWOUTERS
@SDWOUTERS
Open Blockchains
HOW do blockchains
work?3 Immutability
1 Censorship resistance
2 Decentralization
…
The “miners” verify transactions and add them to the next block in the Blockchain
@SDWOUTERS
Change a transaction? Change the link
@SDWOUTERS
The network will see and reject your fraud
@SDWOUTERS
To convince them you need to create a longer
blockchain than the entire network combined
@SDWOUTERS
Miners earn new currency and tiny transaction fees for their work and electricity
@SDWOUTERS
Open Blockchains
HOW do blockchains
work?3 Immutability
1 Censorship resistance
2 Decentralization
4 Open access
Send payments on any network,
without risk
An open blockchain is open to anyONE
without identification or authentication
@SDWOUTERS
@SDWOUTERS
No criminal wants to leave permanent evidence
@SDWOUTERS
Open Blockchains
3 Immutability
5 Open innovation
1 Censorship resistance
2 Decentralization
4 Open access
HOW do blockchains
work?
Anyone can develop new applications for an open blockchain, without permission
@SDWOUTERSinternetlivestats.com/internet-users/
The same force driving internet innovation for 20 years
@SDWOUTERS
Creates huge value for consumers, economic growth, jobs
@SDWOUTERS
Open Blockchains Private Blockchains
Editability 3
Centralization 4
Interoperability 1
Business innovation 5
Permissioned access 2
3 Immutability
5 Open innovation
1 Censorship resistance
2 Decentralization
4 Open access
HOW do blockchains
work?
@SDWOUTERS
WHAT can we do with them?
HOW do they work?
WHY do blockchains
exist?
@SDWOUTERS
Sending money
0.00000001 BTC1 BTC
Money is the tip of the iceberg
@SDWOUTERS
What other opportunities are out there?
Finance
Internet of Things?
Energy?
Supply chain?
Identity? Property?
Legal?
@SDWOUTERS
The major challenge of Supply Chain blockchains
Getting everyone on the same chain
@SDWOUTERS
Potential solutions: Sidechains or Interledger
blockstream.com interledger.org
@SDWOUTERS
“Blockchain could disrupt everything”
@SDWOUTERS
THE BLOCKCHAIN is an inefficient database
Imagine a massive decentralized Dropbox
synchronizing 24/7
But all these banks are investing in blockchains!
@SDWOUTERS
3 Immutability
5 Open innovation
1 Censorship resistance
2 Decentralization
4 Open access
Banks/governments won’t replicate the BlockchainOpen
Editability 3
Centralization 4
Interoperability 1
Business innovation 5
Permissioned access 2
Private
@SDWOUTERS
When open blockchains solve privacy & scalability companies may build services on them instead
Security Neutrality Development
@SDWOUTERS
Private blockchains may have “use cases” like intranets do
The BlockchainThe Internet
“Private” BlockchainsIntranets
@SDWOUTERS
Private blockchains can learn from Open ones
The BlockchainThe Internet
“Private” BlockchainsIntranets
SidechainsLive environment
@SDWOUTERS
The open Blockchain will create the most value
The BlockchainThe Internet
“Private” BlockchainsIntranets
>
samwouters.com
Speaker on Bitcoin & Blockchain
Digital Transformation Consultant at Duval Union Consulting
Sam Wouters
@sdwouters
WWW