Startupfest 2015: AUSTIN HILL (Blockstream) - Keynote
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Programmable money What if money had an (API) programming interface? What becomes possible when money becomes a protocol? What is possible in a world where anyone, anywhere can engage in commerce & digital contracts. A presentation on Bitcoin the Blockchain and the new infrastructure of value that open financial protocols might create.
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Startupfest 2015: AUSTIN HILL (Blockstream) - Keynote
- 1. Bitcoin & the Blockchain: the future of programmable money July 17th, 2015
- 2. A brief history lesson • Money has always existing in different forms – Barter, Island of Yap and Stone Money – Commodities (Foodstuff, Gold, Gems) – Coins, Paper Money (Fiat Currency) • Credit Instruments – Merchant banking letters of credits (Milan clearing house)
- 3. Digital Money? • Dr. David Chaum published in mid 80s series of papers to define digital money • Mid-90’s various attempts – all failed – Digicash, PayPal (X.com), Flooz, Cybercash, Zeroknowledge • Who do you trust? All required trusted intermediares
- 6. Open source software released 2009 2010 2011 2012 2013 2014 2015 / Today
- 9. Source: josicmedia.com 2009 2010 2011 2012 2013 2014 2015 “Bitcoin is evil” “we do not see this particular experiment lasting” Paul Krugman - Econonist Paul Singer – Hedge fund manger
- 10. Bitcoin price rise ($10-$100) 2009 2010 2011 2012 2013 2014 2015
- 11. Rise in Merchant Adoption 2009 2010 2011 2012 2013 2014 2015 / Today Source: CoinTelegraph
- 12. Bitcoin drama – the dark web 2009 2010 2011 2012 2013 2014 2015 / Today
- 15. “Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014” January 21st 2014 Marc Andreessen Founder of Netscape Source: Andreessen Horowitz
- 16. Bitcoin drama continues Mt. Gox Source: https://www.cryptocoinsnews.com/mt-gox-delay-investigation/ 2009 2010 2011 2012 2013 2014 2015
- 21. A new digital asset • Divisible • Scarce • Transferrable • Unforgeable • Decentralized
- 23. Bitcoin Infrastructure Investments 21 Inc. $116m $30.5m $30m $106m $21m < $500m invested in Bitcoin ecosystem
- 24. Wall Street wakes up to Bitcoin (in a big way)
- 25. Wall St. Wakes up to Bitcoin
- 28. Jan’09 (0.0000) - April’15 (346,028,0956)
- 30. The Blockchain is a Ledger
- 31. All Ledgers Too Stocks & Bonds Currency Trading Settlement
- 32. Traditional Ledgers Closed Systems Hacked & Accessed Heavy Transaction Fees Laborious Verifications Slow Centralized
- 35. Nodes Updates Copies of the Ledger
- 36. No Central Point of Failure
- 37. Traditional Ledgers Closed Systems Hacked & Accessed Heavy Transaction Fees Laborious Verifications Slow Centralized
- 38. Blockchain Open Sourced Cryptographically Secure Network Verified Beyond Borders Fast Decentralized
- 39. Potential Markets • Remittances • Payments • Crowdfunding • Equity offerings (Crypto) • Derivatives, FOREX, Bonds • Smart contracts • Smart property • …
- 43. Provably Fair Financial Plumbing Source: http://www.chicagomag.com/Chicago-Magazine/May-2008/Plumbers-Who-Wont-Drain-Your-Wallet/
- 44. Provably Fair, Open, Global Financial Markets Source: http://http://www.adls.org.nz/cpd/cpd-events/170/the-financial-markets-conduct-regulations-charting-the-changes
- 45. Expanding to 2.5 Billion Unbanked Source: social.yourstory.com
- 47. Removing Third Party Friction in International Business Source: http://tonyortega.org/
- 48. Decentralized Secure Infrastructure Source: http://www.coda.co/
- 49. For Identity
- 50. For Assets
Editor's Notes
- Replace with BITCOIN logo
- Script: October 2008 Bitcoin white paper published by Pseudonymous author Satoshi Nakamoto
- Script: January 2009 the first code implementation of Bitcoin is released.
- Pizza / icon
- 2011 Naysayerers / Krugman, government officials
- Paul Signer (Hedge Fund)
- NY TIMES
- 2014
- Fiber/Dot.com crash Exodus
- At it’s core, the blockchain is one thing: A Ledger Just like an accounting system, all transactions are logged one after another, but none can be removed or modified. This means if you want to correct a mistake or change a transaction, the change must be logged into a new line of the ledger. Making it “impossible” to hide activity.
- Ledgers are everywhere. If you look at stocks, bond, currencies, trading, settlement platforms, those are all form of ledgers too. Stocks Bonds Currency Trading Settlement
- But there is a problem, those ledgers are antiquated and based on flawed systems. For example, traditional ledgers are closed systems. Banks and institutions spends huge efforts making their ledgers private. They make it so only banks, branches and their employees can authorize activity. Their verification process often requires faxes, or parties to physically show up at a branch. It adds time, costs and friction. Even being closed, these systems are vulnerable to inside jobs and hackers. They still get accessed and hacked into as we’ve seen numerous times in the past. Like more recently, a billion dollar ATM heist affecting over 100 banks around the world. Closed Systems Still gets hacked & accessed Heavy transaction fees Laborious verifications Clutters of middlemen Slow Usage is limited
- This is why a secure digital ledger makes so much sense. What if you could reach anyone that closed network have not been able to reach before? Across borders, reaching the unbanked. What if this secure digital ledger is open-source, and so transparent anyone can code to the network or protocol to develop and constantly improve it? What if this ledger is so secure that no one can hack it? Making inside jobs or market manipulation impossible. What if it is powered so efficiently that the fees required to process transactions are only a couple cents. And finally, what if, unlike traditional ledgers taking days, transactions would happen instantly? The good news is, this idea ledger actually exists, and as you might have guessed, it’s the blockchain.
- The cryptography behind the blockchain is not new, unlike many innovations in cryptography, ledger and financial systems that we’ve seen recently. The code behind the blockchain has endured the test of time and has proven itself to be impenetrable by hackers. These complex mathematical algorithms is what makes this technology one of the most secure the world has ever seen.
- Here’s how it works. Instead of having one, central copy of the ledger, which makes it easier to hack into, with the blockchain, the same ledger is copied and updated on the whole network. , This means if someone would want to delete or change a transaction in the ledger for a purpose such as double spending, he would have to change all copies. The network’s size and power which is more than the world’s top 500 super computers combined would make this sort of attempt virtually impossible.
- With most ledgers being centralized, if a system fails – for example – Paypal, all transaction data could potentially be lost. If the same would happen to a decentralized system using the blockchain, the information would not get lost as the data is recorded in not only one, but thousands of copies of the ledger.
- But there is a problem, those ledgers are antiquated and based on flawed systems. For example, traditional ledgers are closed systems. Banks and institutions spends huge efforts making their ledgers private. They make it so only banks, branches and their employees can authorize activity. Their verification process often requires faxes, or parties to physically show up at a branch. It adds time, costs and friction. Even being closed, these systems are vulnerable to inside jobs and hackers. They still get accessed and hacked into as we’ve seen numerous times in the past. Like more recently, a billion dollar ATM heist affecting over 100 banks around the world. Closed Systems Still gets hacked & accessed Heavy transaction fees Laborious verifications Clutters of middlemen Slow Usage is limited
- Open enrolment process Based on cryptography Open sourced Platform for development Low fees Decentralized No middlemen Fast Transactions verified by the network Reaches beyond borders to the unbanked
- Netting, International transfer, b2b, http://ledracapital.com/blog/2014/3/11/bitcoin-series-24-the-mega-master-blockchain-list Remittances Payments Crowdfunding Equity offerings (Crypto) Derivatives, FOREX, Bonds Smart contracts Smart property …
- Graphic to be changed