Leon-Gerard Vandenberg, bitSIM - CASE STUDY: US Navy Cash >> BitSIM – a Bitcoin Payment Channel for Mobile


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Leon-Gerard Vandenberg, CTO Future Capital Bitcoin Fund & Founder, bitSIM delivered the presentation at the 2014 Cryptocon Summit and Barcamp in Sydney.

The 2014 Cryptocon Summit and Barcamp focused opportunities stemming from Bitcoins core innovation – the blockchain - a decentralised ledger system that allows seamless and efficient exchanges of virtual currency between users and opens up a wealth of opportunities not only for financial products and retail, but literally for any business, enabling them to conduct business more cheaply and more efficiently than ever before. .

For more information about the event, please visit: http://bit.ly/cryptoconsydney14

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Leon-Gerard Vandenberg, bitSIM - CASE STUDY: US Navy Cash >> BitSIM – a Bitcoin Payment Channel for Mobile

  1. 1. Leon-Gerard Vandenberg
 PEng MBA, CTO & consultant
 lg@futurecapital.com.au see http://bit.ly/FCBF2014 1 Bitcoins & eCurrencies 
 “Riding the Learning Curve”
  2. 2. Bitcoins & eCurrencies “Riding the Learning Curve” Intro Rearview Mirror Status & Current “Take Away” Forward Looking - Concerns & Opportunities Wrap Q&A
  3. 3. G’Day Hey - I’ve been around the traps - I got some deep sector expertise in Defence/Technology development - crypto too :-) CTO/Co-founder for a company that launched USA's NavyCash smartcard scheme for centralised US Treasury payments and salaries in the form of a closed eCurrency system on MasterCard Experience & pedigree bodes well for solutions across the burgeoning Bitcoin industries Mobile & Seamless Ease of Use of Bitcoin/Crypto/Identity Services and Startups is my future focus
  4. 4. What was an eCurrency? Not a digital counter Innovation -eCash (aka DigiCash) 1990
 - David Chaum 
 - Blind Digital Signatures - Anonymous - now defunct
 - Range of European banks took it on - card focus
 - One (or two) US Banks - card focus St. George Bank 1998 - Yes Australia too.. :-)
  5. 5. Other eCurrency Schemes Government Schemes 
 - Border Control Citizen ID Malaysian ID Card Banks / Transit Agencies 
 - Oyster Card UK / Octopus HK / Singapore Belgian Proto - EuroBank centric Mondex Card Scheme - failed - too heavy crypto
 NOT a memory card 
 - aka TelstraPhone card
  6. 6. NavyCash Founded in 1999-2000 Closed Tender to Navy Supply Office - Washington DC Two Stage ePurse - Offline & Online - Person to Person
 -Salary on a Card - cash out anywhere / spouse card as well Bank Branch on a NavyShip / Navy Base Central Float - Authorised by US Treasury 
 - Managed by JP Morgan / Chase MasterCard Network - ATM & Fiat withdrawals in local currency Closed Economy
  7. 7. NavyCash Problems with Double Spend Spouse - back at Navy Base -spends - sailor owes debt Two Stage ePurse - Offline & Online - Person to Person
 only on same ship or same base - not really cross whole NavyCash Pool Bank Branch on a NavyShip / Navy Base - 24 hour Lag - Batch Runs Central Float - Heaps of Services Fees Made by JP Morgan / Chase MasterCard Network - ATM & Fiat withdrawals in local currency Closed Economy - NOW how would Bitcoin and Blockchain work?
  8. 8. Virtual SIM concepts What is a Virtual SIM?
 Why is it useful
 - Freedom from incumbent Carrier Constraints
 - Ability to issue your own loyalty / mCash / VOIP solution
 - Bank & Merchant services on any mobile - Anywhere
 - Global Reach - Global Standard - ~7 Billion Handsets Original - used to reload - NavyCash Anywhere Anytime
  9. 9. Status Now Navy Cash most successful smartcard scheme in USA Ten Years to roll out - 4Billion + Dollars under management VSIM - concepts now used in NFC Phones / Visa / MC
 - Smartphone Patent Wars Currency Wars…
 What does a US$ buy now?
 Coming of the Redback (RMB) 9
  10. 10. Text Bitcoin is here - Its Global see http://fiatleak.com
  11. 11. Bitcoin is the solution to… FinRegulators & Banks - acting badly! - Carriers and Cellco fought ISPs and Internet VOIP like Legacy Banks will fight Bitcoin and Rupert Murdock et al. fought Aereo, Inc Governments - acting badly! - (detriment of citizens)
 - Sovereign Risk & Quantitive Easing (QE 4+?) World Bank & EU Bailouts & Bail-in’s 
 - Cyprus - who’s next - NY Bitlicense? Freedom to invest in New Asset Class 
 - Virtual Property with Smart Constraints
 - Future pas Internet 2.0 - SmartContracts
  12. 12. Forward Looking
 Concerns and Opportunities Concerns Tax Rulings / Regulation / QE / Currency Wars Privacy / Security / Anonymity Opportunities Job Creation / Wealth Creation / New Asset Class New Economy - Disruptive Thinking Simple Secure Use - Bitcoins on SIM / Anywhere /Anytime
  13. 13. bitSIM.co zero footprint bitcoin SIM (virtual SIM) Chip on Flex Technology SIM Pack / Self Install / BTC delivered over the air - OTA International Remittance Target $1T HW Wallet - PIN enabled
 Secure Authentication connect to your local or "hosted" cloud wallet
  14. 14. bitSIM Chip/Pin devices China Manufacturing - Australian Designed NFC ready, the Target to achieve Banking Grade EMV L1&L2 plus Bitcoin bitSIM & Banking/Exchange Gateway Transactions
 Bitcoin Functions Off &
 On Blockchain Network 
 (BIP32) Bluetooth & PIN enabled
 version of Trezor Dongle
 Bitcoin Merchant Transactions via Mobile Phone & bluetooth <>Anyone<>Anywhere<>Anytime<> !
  15. 15. Wrap Get In - Learn about Bitcoin/Litecoin/etc Be Secure - invest in security. 
 - good personal stewardship / your legal affairs Invest - in your learning & your own BTC 
 Careful on quantum, this is still an experiment Participate - in the community - credible startups Be Vocal about the proper Utility 
 Public Goodness of Bitcoin Give - Use and Replenish BTC
  16. 16. Questions? This is not a dream… Bitcoin is my Unicorn :-)