SIDELINE SUMMIT #1 Blockchain & Crypto: The brilliant basics and beyond 26 Jan 2016 Antony Lewis Blockchain consultant Mentor, Startup Bootcamp FinTech SG @antony_btc [email protected] www.bitsonblocks.net www.bitsonblocks.net THE EVOLVING LANDSCAPE 2013 / 14 2015 2016 §  Bitcoins §  Blockchains §  Smart contracts §  Bitcoin for everyone! §  Blockchains for everything! §  Shared ledgers for §  Currency of the internet! industries / governments §  Mass global adoption! §  Distributed ledgers §  Back office efficiencies §  Privacy vs transparency §  Price, mining §  Scalability §  Virtual currencies §  Bitcoin for cross-border §  Regulation of value transfer payments §  Scams, bankruptcies, Silk §  Bitcoin licences in US Road §  Bitcoin scalability 2 www.bitsonblocks.net THE FUNDING STORY - BITCOINS Publicly disclosed funding Bitcoin price US$m US$ per BTC 379 1,400 1,200 1,000 207 800 154 600 111 400 78 200 17 2 0 2012 2013 2013 2014 2014 2015 2015 Jan-2013 Jan-2014 Jan-2015 Jan-2016 H1 H2 H1 H2 H1 H2 Source: http://www.coindesk.com/bitcoin-venture-capital/ 3 www.bitsonblocks.net TURMOIL IN BITCOIN Bitcoin Core - Count data differently Bitcoin XT - 8MB, doubling every 2 years Bitcoin Classic - 2MB Bitcoin Unlimited - User configured Consensus is hard! Collaboration is hard! 4 www.bitsonblocks.net EMERGENCE OF “BLOCKCHAIN” COMPANIES §  Raised $52m Consortium approach, subscription fees §  ASX project ■  Barclays ■  Bank of America ■  BNY Mellon ■  BBVA ■  Citi §  JP Morgan (lead), Citi, PNC ■  CBA ■  Commerzbank ■  Credit Suisse §  BNP Paribus, ABN Amro, Santander ■  Deutsche Bank ■  Goldman Sachs ■  HSBC §  ASX, CME, Deutsche Boerse ■  J.P. Morgan ■  Mitsubishi UFJ Financial Group (Clearstream), DTCC, Accenture, ■  Morgan Stanley ■  RBS Broadridge, ICAP ■  National Australia Bank ■  State Street ■  Royal Bank of Canada ■  UBS ■  Skandinaviska Enskilda Banken ■  Société Générale ■  Toronto-Dominion Bank Mizuho Bank, UniCredit, Nordea, BNP Paribus, Canadian Imperial Bank of Commerce, ING, Macquarie, Wells Fargo & Co BMO Financial Group, Danske Bank, Intesa Sanpaolo, Natixis, Nomura, Northern Trust, OP Financial Group, Banco Santander, Scotiabank, Sumitomo Mitsui Banking Corporation, U.S. Bancorp and Westpac Banking Corporation 5 www.bitsonblocks.net A REAL-LIFE BLOCKCHAIN 6 www.bitsonblocks.net DIVE INTO A BLOCK 7 www.bitsonblocks.net BITCOIN’S BLOCKCHAIN IS TRANSPARENT! Source: www.tradeblock.com 8 www.bitsonblocks.net BITCOIN’S BLOCKCHAIN IS REALLY TRANSPARENT! Source: www.tradeblock.com 9 www.bitsonblocks.net FROM BLOCKCHAINS TO SHARED LEDGERS Public blockchains attempt to solve for agreement about valid transactions across a censorship-resistant network where some small portion of the participants may behave dishonestly and there is no legal recourse. Bitcoin’s blockchain is a bunch of data about transactions stored in blocks that refer to each other in a linear chain. Ethereum’s blockchain is a bunch of data about transactions and imbedded instructions that are automatically executed by computers, stored in blocks that refer to each other in a linear chain. 10 www.bitsonblocks.net