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Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN ESCAP Sustainable Business Network, 6th meeting www.fintech4good.co | [email protected]

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Page 1: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain for SDGs: Beyond ConceptsXiaochen Zhang,

President, FinTech4Good

UN ESCAP Digital Economy Task Force

December 3, 2018 UN ESCAP Sustainable Business Network, 6th meeting

www.fintech4good.co | [email protected]

Page 2: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Content

Blockchain Adoption in Asia and the Pacific

Blockchain Solutions to Achieve SDGs

Action Needed: Responsible Blockchain Initiatives

Page 3: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

01 Blockchain Adoption in Asia and

the Pacific

Page 4: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Adoption in Asia and the Pacific

Investment landscape

27

111

NorthAmerica

Europe Asia Pacific

66% 23% 11%

161

35

2014 2015 2016 2017

$ million

Blockchain-focused investment has grown rapidly

in Asia and the Pacific since 2016, despite its

share in the world are still less than the U.S. and

Europe.

Blockchain start-ups in Asia are enthusiastic about

the foreseen opportunities. Singapore, for instance,

has become the hub of blockchain innovation.

However, blockchain technology and application

still face challenges from the existing regulatory

environment in their home countries, with regards

to R&D and fundraising.

Blockchain Adoption in Asia

Awaiting for a Big Boom

Page 5: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Adoption in Asia and the Pacific

Regulatory Environment

Initial Coin Offering (ICO): It is a type of funding using cryptocurrencies. In an ICO, a quantity of cryptocurrency is sold in the form of "tokens" ("coins") to speculators or investors, in exchange for legal tender or other cryptocurrencies such as Bitcoin or Ethereum.

Regulation on Blockchain

Technology Innovation

Regulation on Blockchain

Project Fundraising: ICO

Regulatory Sandbox

Australia, Singapore, Japan, China (Hong Kong, Hang Zhou)…

National Blockchain Innovation Strategy

South Korea: Blockchain Technology Development Strategy (Ministry of Science and ICT)

ICO Banned in:

China, South Korea, Nepal,

Bangladesh

ICO Regulated in:

Thailand, Philippines, Japan…

Regulation Challenges

In Asia and the Pacific

❖ Lack of cross-country policy

coordination to incentivize

blockchain industry.

❖ Decentralized activities have

increased risks of ICO fraud.

❖ Insufficient research to

support evidence-based

policy design.

Page 6: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

02 Blockchain Solutions to Achieve

Sustainable Development Goals (SDGs)

Page 7: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

What Can Blockchain Innovation Achieve?

Core Characteristics of

Blockchain Technology

Trust TruthTransparency

Verified by the ledger.No third party required

Visible to everyone.Owned by nobody.

Immutable or cannot be altered.

Tracing &

Tracking

Digital

Currency

Digital

Identity

Digital

Asset

Smart

ContractPayment

$100 trillion is spent on SDG M&E related activities with huge accountabilitychallenges in data collection,processing and traction.

1.5 billion people cannot effectively participate in the world economy due to lack of economic identity.

50% of the physical assets owned by the poor are not used in any productive capacity every year.

Middle man-related costs of global trade is more than $100 trillion.

SDGs and Climate Change related process are both time consuming and ineffective..

Page 8: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain Use Case: Newton

Newton: Building the Infrastructure for the Community Economy

Self-Finance Supply Chain Chain-Commerce

Retail

Game Payment Agriculture

❖ Corporate and

personal credit

❖ Asset securitization

❖ Anti-counterfeiting

❖ Traceability

❖ Financing

❖ Digital Asset

Management

❖ Precise AD; New Mall

❖ Virtual game asset

automated trading

❖ Transparent rules

of the game

❖ Global Transaction

❖ Ultra-Micropayment

❖ Immediate response

❖ Intelligent Planting

❖ Trace to source

❖ Storage and trade

Newton

Community Economy

Technical Framework

Layers

Community Governance

Human-machine communities

Chain-commerce

Token circulation

Collaboration

Self-driven

Incentives

Application: NewPay, NewIoT, NewMall

Protocol: Hyper Exchange Protocol

Foundational technology: NewChain

Page 9: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain Use Case: Vodix

Potentially create 100+ million jobs worldwide

AI: Multi-billion dollar industryMachine Learning

Secured, transparent, efficient: prevent spam and save costAbility to reach the unbanked market.

Create Jobs

Micro-Tasking

Blockchain

Fintech Services

Awards: Partnerships:

Mission:Our goal is to work together on projects to build homes, renewable

energy and infrastructure. We intersect blockchain at many levels of

the projects life cycle from land, building, mortgage and banking.

Ultimately we want to be the first in the world to show the world how

blockchain can make a meaningful change by connecting developed

world capital with the developing world.

Page 10: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain Use Case: Trina Energy

Mission:Make energy green, credible, efficient and flexible.

Electric power data is collected directly by terminal meters to ensure the credibility.

Contracts can be pre-defined or automatically generated according to the actual needs of distributed energy transactions.

Energy Consumption Measurement

Smart Contract

Dual-Token Ecosystem

TrinaCoin Dapp

PowerCoin

Power Transaction

and Settlement

The exchange rate between TrinaCoin and Dapp PowerCoin is based on the local market electricity prices and the exchange price of TrinaCoin.

Industrial

ParksDistributed PV

Generation

Battery Energy

Storage Micro-grids

Application Scenario

Design of TradingWhen the conditions for execution are satisfied, the

smart contract based on distributed energy

transactions is invoked to form the transaction data

that will be broadcast and verified over P2P network.

Page 11: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain Use Case: Kabuni

Mission:Transition together to positively impact one billion people

by unlocking and accelerating value through exponential

technology.

Renewal

Energy

Seed

Entrepreneurship

Affordable

Homes

Kabuni can provide digital banking services for the

developing markets and informal sector by providing a suite

of products that traditional banks are not capable to deliver.

With our partners we can provide liquidity to investors at a

macro level and create a sustainable model for impact

investment to address the informal sector needs to bridge

the gap between rich and poor.

We can deliver a P2P micro investment model to large scale

challenges faced in developing countries. The security token

echo-system can support capital flow to asset based

investments to create formalized investments into the informal

sector in housing, renewable energy and infrastructure projects

A fully integrating emerging market banking, trading and

investment platform to help solve major world challenges

in emerging markets.

Bank

Invest

Trade

Invest

Bank Trade

Kabuni can combine the scale of market-based investment approaches

and the social impact of philanthropy to fund life-changing innovations

and bring sustainable solutions to bridge the gap between rich and poor.

Collaboration with our partners we can create joint ventures in each

country that will support nonprofits asset based projects to create

affordable homes, renewable energy and infrastructure.

The new donation equation is: Invest + Tokenize = Impact

Page 12: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain Use Case: CoinBank

CoinBank is a full-stack digital bank that provides global financial services to young users. Relying on a strong financial

network and first-class technology infrastructure, the company provides users with 7/24 personalized digital banking

services that can be put into their pockets and meet the diverse needs of users.

Coinbank: Disruptive Digital Banking

Emerging market supportPartner with exchanges worldwide

Efficient asset flow

Decentralized asset wallet

Global Services

Various Choices of Assets

Full-Stack Service

Tailored for stable coin mechanism

Over-the-Counter Business

CoinNet: an open-source public blockchain

customized service

Traditional Banking CoinBank

❑ Loans

❑ Currency

exchange

business

❑ Security exchange

❑ Cash business

❑ Factoring

❑ Credit check

❑ B2C messaging

❑ Digital loans

❑ Digital currency

exchange business

❑ Digital Asset Trading

❑ Digital cash

business

❑ Digital Factoring

❑ Digital Credit check

❑ C2C IM

Page 13: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain Use Case

Blockchain-enabled social enterprises strive for increased financial access to serve the unbanked and under-banked population in Southeast Asia and aim for improved financial service across countries.

TraXionPhilippines

DApactCambodia

Traxion aims to bringfinancial inclusion to 89million unbanked Filipinosthrough the ‘bank-in-a-wallet’ solution (savings,payments & remittances)backed by its blockchain-driven environment.

Dapact aims to slash thecosts of microfinance tospur financial access inlow-income communities.It uses an Ethereum-basedlending protocol thatsupports loan origination and financing.

BitsparkHong Kong

Bitspark lowers the traditional transaction fee by 10 times. Using blockchain technology, it bypassed the existing banking networks and remittance systems.

GeTSSingapore

Global eTrade Services (GeTS), a subsidiary of CrimsonLogic has launched world’s first cross-border blockchain for trade linking ASEAN and China’s Digital Silk Road.

Page 14: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Blockchain Solutions to Achieve SDGs

Blockchain for SDGs: ChallengesHowever, in order to harness the potential of blockchain for greater impact, especially in

supporting the Sustainable Development Goals (SDGs), challenges remain…

Minimal understanding of the

technology, regulations,

business models, and

industrial application roadmap

Lack of compelling use

cases for stakeholders,

especially the projects

that are risk averse.

No platform to efficiently

communicate how innovation can

create appropriate blockchain

solutions to contribute to SDGs.

Research Practice Communication

Page 15: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

03 Action Needed:

Responsible Blockchain Initiative

Page 16: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Responsible Blockchain

Framework and Initiatives

Inclusive

Innovative

Green

Responsible Blockchain Initiative

1. Responsible Blockchain World Championship

2. Asia Pacific Digital Economy Forum

3. Asia Pacific Digital Economy Institute

4. Asia Blockchain Innovation Fund

5. Blockchain for Impact TV Show

Green Inclusive Innovative

❑ Mitigate risks

❑ Adaptive capacity

❑ Equal opportunity

❑ Participatory Growth ❑ Frontier Innovation

❑ Adaptive Innovation

Page 17: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Responsible Blockchain Initiative- RBWC

Omar ChenZBG CEO

Richard WangFounding Partner,

Draper Dragon

Jianliang Shao Founding Partner,

Bitrise Capital

Qingtao HeCEO, Interplanetary

Node

AaronWanSBCVC

Aurora Wong

Founding partner, Crypto

Capital

Ye yuanDaohuo Capital

Chen XuGP, GOBI partner

Oder QuFounder &

Chairman, IDHub

William Bao BeanGeneral Partner,

SOSV

Jianwu GuoPartner,

Tamaracecapital

J.R HuangFounding Partner,

Wemerge

Dadi Xing Founder,

Eigen Capital

Henry YangFounding Partner, Blockpower capital

Samson LeeFounder &

CEO, CoinStreet

Yunawen WuFounder & Chairman,

Jintum Tech

Dong XuPartner,

AC accelerator

Mingo ChinPartner,

XingAn Capital

Hongbin Zhang

Founder, Lighter Blockchain

Xiaochen ZhangPresident,

FinTech4good

RBWC

China

Judges

Page 18: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Endereum NULS BlockGame FulianTerra Virtua

Tweebaa Aermetric Drone Employee

RBWC Shenzhen Winners

RBWC Silicon Valley Winners

Page 19: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

RBWC Portfolios

Twitter: FT4GXiaochen WWW.FINTECH4GOOD.CO www.blockchainaccelerator.co

Page 21: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

RBWC Portfolios

Page 22: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Responsible Blockchain Initiative

From DAIF to Asia Pacific Digital Economy ForumThe Asia Digital Economy Forum is a platform which connects policymakers together with business and academic

leaders that share the same vision in scaling up blockchain and other digital economy technologies for a better world.

DAIF New York

Jan 16, 2018

DAIF DC

Feb.20, 2018

DAIF Seoul

Mar. 15, 2018

DAIF Beijing

June.12, 2018

2019 Asia Pacific Digital Economy Forum

(APDEF2019)

Advisory Committee DEF Hosting Country Co-Hosting Organizations

Thought Leaders Government Agencies IOs, CSOs, Business, etc

1. Policy Innovations 2. Digital Economy Solutions 3. Leadership Awards

Asia Pacific Digital Economy Institute

Asia Pacific Digital Economy Challenges

Asia Pacific Digital Economy Awards

Page 23: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Responsible Blockchain Initiative

Asia Pacific Digital Economy InstituteThe Asia Pacific Digital Economy Institute, in

collaboration with most influential scholars, will

define market trends, identify innovative

solutions, convine industrial leaders and provide

in depth insights on emerging topics in the digital

economy.

The Global Digital

Economy Hub (GDEH) is

a network of

organizations that share

the same vision in scaling

up blockchain and

distributed ledger

technologies for a better

world. The Global Digital

Economy Hub aims to

identify hubs from various

parts of the world and

build a network for

collaboration.

Examples

• NC Digital Economy

Hub

• SMU Blockchain Hub

• Malaysia Digital

Economy Hub

• Astana Digital

Economy Hub

FRONTIER

ACADEMY

Leadership Council

brings together top

blockchain leaders

from academia,

policy, business,

investment and

technology

communities to

catalyze thought

leadership.

Leadership Initiatives

that have been

established include:

• Global Digital

Economy

Leadership Council

• STO Council

• Blockchain4SDGs

Alliance

• Digital Economy

Incubators Network

LEADERSHIP

COUNCIL

The Frontier Academy

is a joint education

initiative led by world

leading experts from

academia and

technology industry.

The purpose is to

enhance global

blockchain literacy,

and promote inclusive

opportunities to

professionals who

may not have equal

access to blockchain

and other digital

economy education.

Examples

• STO Academy

• Zhejiang Zhijiang

Blockchain

Research Institute

• Blockchain

Accelerator

PILOT

LABSGlobal Digital

Economy Hub

Blockchain Pilot Labs

focus on themes across

different sectors and

bring a variety of

stakeholders together to

develop and pilot

blockchain solutions.

Joint Proposals

completed

• Energy Blockchain Lab

at Virginia Tech

• Healthcare Blockchain

Lab with GWU

• Agriculture Blockchain

Lab with

• Insurance Blockchain

Lab

• DigitalX100 Accelerator

Page 24: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Responsible Blockchain Initiative

Asia Pacific Digital Economy Innovation Fund (APDEIF)APDEIF is a donor-advised fund. It allows donors to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time to fund impactful digital economy innovations in Asia Pacific.

Applications that have an impact

Scalable solutions in emerging markets

Blockchain Infrastructure and Protocols

Size $ 10 Million

Capital Equity and/or convertible

Stage First institutional round (pre-seed and seed)

Geography Asia and the Pacific

Sector Blockchain application with clearly defined impact

Timeframe Max 5 years from formation to exit

Distributed applicationsthat have an impact

Fund Principle

We leverage blockchaininnovation in emerging marketsto address the most dauntingchallenges in developingcountries.

We identify the most advanced

distributed ledger technology by

taking on new pilots and

penetrating into new market

segments.

We are committed to supporting

cutting-edge blockchain-backed

startups to drive sustainable

impacts across different sectors.

Blockchain infrastructureand protocols

Scalable solutions in emerging markets

Page 25: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

Responsible Blockchain Initiative

Blockchain for Impact TV Shows

Blockchain for RealEconomy

Blockchain

Weekly

Decentra

Business Talk

Digital Asset

Investment

Academy

Blockchain

Fundamentals

Blockchain China

Blockchain

Impact Files

Initial Token

Offerings

Women in

Blockchain

Crypto

Intelligence

World Blockchain News

Blockchain Million

FEATURED SHOWS in 2019

Blockchain for Impact TV Show leverages the world largest blockchain ecosystem in Asia and beyond to produce and

promote the best quality blockchain content globally. We bring the frontier blockchain stories, world class blockchain

experts, revolutionary blockchain innovations, promising investment opportunities, visionary entrepreneurs and top

blockchain educators to mainstream with just one click.

Page 26: UN ESCAP Sustainable Business Network, 6th …...Blockchain for SDGs: Beyond Concepts Xiaochen Zhang, President, FinTech4Good UN ESCAP Digital Economy Task Force December 3, 2018 UN

About UsFinTech4Good (FT4G) is a global network which connects start-ups,

investors, industry leaders and public sectors to introduce impactful

fintech and blockchain solutions to frontier markets through incubation,

acceleration and investment.

www.fintech4good.co | [email protected]