william mougayar financial securities operations conference presentation
TRANSCRIPT
What Blockchain Means for Your Business
William Mougayar
Author, The Business Blockchain
General Partner, Virtual Capital Ventures
SecOps North America 2016
vcapv.com © William Mougayar, Virtual Capital Ventures
The Blockchain Novelty
Cryptography
Science
BLOCKCHAIN
Software
Engineering
Cryptography
Science
Game
Theory
vcapv.com © William Mougayar, Virtual Capital Ventures
The Blockchain Implications
Cryptography
Science
BLOCKCHAIN
Technical
LegalBusiness
5© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
How to view the Blockchain
Source: The Business Blockchain (Wiley, 2016) © William Mougayar
6© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
Many Facets to the Blockchain① Cryptocurrency
② Computing Infrastructure
③ Transaction Platform
④ Decentralized Database
⑤ Distributed Accounting Ledger
⑥ Development Platform
⑦ Open Source Software
⑧ Financial Services Marketplace
⑨ Peer-to-Peer Network
⑩ Trust Services Layer
Blockchains, like the Web, need the Internet
I N T E R N E T
WORLD WIDE WEB BLOCKCHAINS
Source: The Business Blockchain (Wiley, 2016) © William Mougayar
Source: The Business Blockchain (Wiley, 2016) © William Mougayar
Types of Blockchain Applications
Four Types of Blockchain Applications
Source: The Business Blockchain
(Wiley, 2016) © William Mougayar
In the mid-2000’s FinTech Attacked the Banks,
and it was called “Unbundling Banking”U.S.
Europe
In startup fashion,
most attacks aren’t
head-on, start
small & look
harmless at first
sights, therefore
are ignored
So, the banks
didn’t feel FinTech
initially, because it
crept up
Graphs Source: CB Insights
Innovation Potential for Blockchain
UNREGULATED
ENVIRONMENTSREGULATED
ENVIRONMENTS
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Blockchain and Regulation
① Risk is regulatory confusion
② New regulations needed, e.g. record keeping
③ Where do you insert the blockchain?
④ Difference between blockchain and cryptographic ledgers
⑤ Risk is centralization
15© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
3 Pillars of Decentralization
TRUST
INFORMATIONWEALTH
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Decentralization – What does it look like?① Speed in settlements
② No intermediary delays
③ Upfront identification and reputation
④ Flat structure with no overhead
⑤ Permission-less user access
⑥ Trust built inside the network
⑦ Resiliency against attacks
⑧ No censorship
⑨ No central point of failure
⑩ Governance decisions by consensus
⑪ Peer-to-peer communicationsSource: The Business Blockchain (Wiley, 2016) © William Mougayar
NEW COMPANIES
ANDBEHAVIORS
INSIDEEXISTING
COMPANIES
THREATENEDOR
TRANSFORMED
JUSTTECHNOLOGY
How New Technology Permeates
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13 Generic Ideas for Implementing Blockchains1. Rethinking intermediary functions
2. Bundling / Unbundling
3. New flows of value
4. Decentralized governance
5. New legal frameworks
6. Creating/Issuing digital assets
7. Embedding trust rules inside transactions
8. Implementing digital signatures & what they enable
9. Proofs of records / transactions / process / storage etc.
10. Verifying authenticities
11. Embedding digital identities
12. Escrow / custodial services
13. Enabling smart things to transact autonomously
19© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
Some Leading Examples
• eTRS (ConsenSys, Microsoft, IPFS)• Clearmatics, DCN for OTC derivatives• Cambridge Blockchain catastrophe bond
counterparty validation
20© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
Going Forward Choices
Improve the current systems
OR
Innovate from scratch
vcapv.com © William Mougayar, Virtual Capital Ventures
William Mougayar
Investor . Entrepreneur
Blogger . Board Member
General PartnerVirtual Capital Ventures
1-416-648-7010
http://startupmanagement.org/blog
http://vcapv.com
@wmougayar
thank you