Predicting The Endgame Of The Blockchain Revolution

1. Predicting The Endgame Of The Blockchain Revolution
Professor David Lee
BlockAsset, Singapore University of Social Sciences
LongHash DLT Compass Conference
7 June 2019

2. Endgame
• The ultimate agenda or
desired consequence of a
planned series of events
(often elaborate and
unknown to outsiders).
• In the business world its
ideally an ingenious business
strategy for the purposes of
market domination.
• In movies its often nefarious
and the secret objective of a
super villain.

3. Facts
No one can predict the future
Desired outcome can be
encouraged
Blockchain cannot solve all the
problems
Convergence of technology will
solve many more problems

4. 1. Blockchain
is Valuable
When Trust is
Expensive to
Establish
Finance
Trade, Loan, Assets,
Capital Raising
Security
Privacy Protection Environment
Communication

5. 2.
Blockchain
Without
Token Is Less
Valuable
A well designed token is a tradeable and trusted
incentive to facilitate a desired outcome
Digitalisation
Fractionalisation
Hedonisation

6. 3. Blockchain
is Less
Valuable if It
is Exclusive
Interoperability
Interconnectivity
Borderless
Convergence of Blockchains
Convergence of Technology

7. What Will
Accelerate the
Revolution?
• 1. Crises: Whenever there is a loss of
trust
• 2. Wealth Inequality: Empowerment
through Distribution of Wealth
• 3. Authorities: Financial Reform
• 4. Business Motivations
• 5. Geopolitics: The Alignment of the
Weak
• 6. Fear of SkyNet + Black Mirror +
Hacking

8. 1. Crises:
Whenever
there is a
loss of
trust

9. Singapore, 2 May 2019… The Bank of Canada and the Monetary Authority of
Singapore (MAS) have conducted a successful experiment on cross-border
and cross-currency payments using central bank digital currencies. This is
the first such trial between two central banks, and has great potential to
increase efficiencies and reduce risks for cross-border payments.
Cross-border payments today are often slow and costly. They rely on a
correspondent banking network that is subject to counterparty risk,
inefficient liquidity management, and cumbersome reconciliation. The Bank
of Canada and MAS have been collaborating in the use of Distributed Ledger
Technology (DLT) and central bank digital currencies to make the cross-
border payment process cheaper, faster, and safer.
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2019/Central-Banks-of-
Canada-and-Singapore-conduct-successful-experiment-for-cross-border-payments.aspx
Central Banks of Canada and Singapore conduct
successful experiment for cross-border payments using
Distributed Ledger Technology

10. Accenture
• “Central bank digital currency, tokenisation, and
distributed ledger technology are key enablers
for the future of financial systems. The
successful outcome of the Jasper-Ubin project is
a big milestone for the modernisation of cross-
border, cross-currency transactions. This
collaboration between central banks, industry
participants and technology experts has shown
that material transformation is possible and that
the challenges can be overcome.”

11. The Bank of Canada, Bank of England and Monetary Authority
of Singapore share assessment on emerging opportunities for
digital transformation in cross-border payments
The report examines three models of cross-border payments. The
first two are built on existing domestic interbank payment
systems using traditional technology. The third model focuses on
the use of Wholesale Central Bank Digital Currency and its
various applications through Distributed Ledger Technology. The
models could be used to improve access, speed and transparency
of cross-border payments. However, the report finds that further
work would be required, by both industry and regulators, if the
models were to be developed further. Future areas of focus could
include implementation and policy challenges.
http://www.mas.gov.sg/News-and-Publications/Media-Releases/2018/Assessment-on-
emerging-opportunities-for-digital-transformation-in-cross-border-payments.aspx

12. 2. Wealth
Inequality:
Empowerment
through Distribution
of Wealth

13. “Loch Ness” graph
produced early 2018
by a team of
economists — led by
Facundo Alvaredo,
Lucas Chancel, and the
famous inequality
research trio Thomas
Piketty, Emmanuel
Saez, and Gabriel
Zucman

14. The death of private banking… By: Helen
Avery Published on: Tuesday, February
06, 2018 …and how wealth management
can have a brighter future.
3. Authorities:
Financial Reform
You won’t find the words
“Private” and Bank” side by
side……
Leverage Growth is a thing of
the past but Inclusive Growth is
the New Paradigm.

15. The old concept of private banking is not fit for the
modern age of finance. And if the people who run these
institutions don’t change the core premise of what they
do, and how they do it, then their clients will effect that
change for them. Wealth management is being dragged,
sometimes kicking and screaming, into the 21st century.
The catalyst for change will be the twin goals of
sustainability and impact. At the other end of what will
be a long journey could be a better business for
everyone.
Full article: https://www.euromoney.com/article/b16rhwwt9prp4z/the-death-of-private-
banking?copyrightInfo=true
Visit http://www.euromoney.com/reprints for additional distribution rights. For more articles
like this, follow us @euromoney on Twitter.
4. Business Motivations
By Helen Avery

16. Changing Market
• In the last two years, we’ve also finally seen the data to
show that investments with a positive impact do not
have lower returns per se and, indeed, they often enjoy
stronger performance – Lombard Odier
• roughly 90% of the 2,200 peer-reviewed academic
studies on the relationship between sustainability and
financial performance found either a positive or neutral
correlation - UBS
• Two years ago, 10% considered mission to be important,
now that’s almost 40% - BNP Paribas Wealth
Management
• We are trying to help advisers to bring in sustainability to
every conversation – Barclays

17. Wealth Manager as a Mission-driven Partner
• Not an Asset Class!
• “They’re treating ESG like an asset class, and it’s just not,” Cornerstone
Capital Group.
• “It’s about taking a client’s entire portfolio and looking at the impact it has
and whether that aligns with the client’s values. It’s not about putting 5%
of your money into a strategy.”
• “We don’t see impact as an asset class, but we did start off looking at the
products we could offer,” he says.
• “We decided to create a specific product to be able to offer clients an
opportunity to have a holistic portfolio for both financial returns and
impact.”
• And this year we’re reviewing the whole platform of investments to see if
and how they are considering the impact they are generating.”

18. The Fourth
Industrial
Revolution：
TRUST
Cost of Production
Cost of Information
Cost of Flow
Cost of Trust

19. Cost of Trust –
The Real
Disruptor
• Tokenization Facilitates
• Untrusted Parties to
Collaborate
• Convergence of
Technology (Web 3.0: AI,
IoT and Blockchain)
• Convergence of Industry
• Secured Privacy Protection
• Accelerated Transactions
• Costs Reduction
• Increased Cost of Hacking

20. 5. Geopolitics: The Alignment of
the Weak

21. Humans
Virtual
World
Physical
World
The Chipsets have converged
the Physical and Virtual worlds
into the Life of Humans
The Chipsets have linked
Artificial Intelligence, Internet
of Things, and Blockchain
Inspired by https://medium.com/@lbildoy

22. There are many opportunities for
smaller countries to work together to
deepen economic co-operation,
strengthen regional integration and build
up multilateral institutions, he noted.
“This way, we can strengthen our
influence as a group and advance a
collective position on issues that matter
to us, be they trade, security or
technology,” said Mr Lee.

24. Decentralized
Autonomous
Organization
Smart
Contracts
Token
Blockchain
Singularity
(Human Centric or
SkyNet?)
Convergence
(Executable
Governance)
Decentralization
(Incentives)
Distributed
Technology
(Coded Governance)
TOKENIZATION
6. Fear of SkyNet + Black Mirror + Hacking

25. Humans
Virtual
World
Physical
World
The Chipsets have converged
the Physical and Virtual worlds
into the Life of Humans
The Chipsets have linked
Artificial Intelligence, Internet
of Things, and Blockchain
Once Full
Convergence has
been reached,
AI Robots will be
infinitely more
powerful than all
physical + human
intelligence
combined.
The Future cannot be
predicted but making
the right choice will
increase the chances
of a good outcome.
Inspired by https://medium.com/@lbildoy

26. Possible Bad
Outcomes
and Behavior
A Digital Empire: Centralized
Data and Wealth (Digital Assets)
Surveillance Capitalism: No
Privacy, Security and Safety
SkyNet: Centralized AI or
Organized Crime

27. 10 Critical Enablers for E-Financial Inclusion
1. Fast, stable, inclusive internet/
mobile network connectivity
- Able to reach out to low income and
remote customers at a low cost
2. Interoperable payment gateway
- Provide convenience to end-users
with various payment channels that
are interconnected, i.e. between
banks, non-banks, telcos, etc.
3. Redress/ consumer laws (including
data protection) for users of digital
platforms
- Build consumer trust and confidence
in digital platforms in order to improve
uptake and usage
4. Strong cybersecurity framework
- Protect public from cyber threats while
addressing cybersecurity needs of
Government, businesses and public
5. Robust regulatory and supervisory
systems and capacity (especially
for AML/CFT)
- Ensure adequate frameworks for
digital financial products, services and
delivery channels
6. Adoption of proportionate
regulation
- Innovative financial inclusion policies
to make financial services more
accessible and usable
7. Digital ID
- Accessible, secure, and verifiable
identification systems could increase
the usage of DFS
8. Regulatory sandbox
- Ability to test innovative products and
services with real customers in a
controlled regulatory environment
10.Talent, knowledge and skills, and
digital literacy
- Achieve consumer empowerment:
Ability to make informed and sound
financial decisions
9. Comprehensive data ecosystem
- Enable secured data sharing among
digital financial service providers
v

28. 10 Critical Enablers for Blockchain Mass Adoption!
1.Fast, stable
internet/mobile/mesh
network connectivity
2.Interoperable value
transfer gateway
3.Privacy protection
for users
4.Strong security
framework
5.Open Source and
Trust Distribution
governance
6.Digital literacy and
UX
7.Digital ID
8.Compliance easy
10. Right Talent,
knowledge and
skills
9.Comprehensive
data and Oracle
ecosystem
v

29. The Value of Blockchain
Distributed Privacy Protection
Smart contract with tokenisation
Maintain human independence
and dignity
Distributed Trust
Machine can't surpass human
control 733MAX-8 plane crash
Prevention of hackers taking over
centralised control of human
Increasing the cost of vicious
attacks and formation of
monopoly or collusion
Open + Private + Consortium Blockchains
Distributed Communication + Distributed
Trust + Distributed Privacy Protection
Distributed Communication
Ensure 24/7 communication

30. Live Use
Cases in
Shipping?
TRADELENS
DELIVER
(Samsung)
CALISTA
TradeTrust
Shipping
Supply Chain
Trade
Trade Financing
Supply Chain Financing

31. Live Use
Cases in
Inclusive
FinTech
SENTINEL
AID:TECH
SMARTMESH
Livestock
Aids and Donations
Communication
Network (Decentralized)

32. A Use Case
MeshBox – Remote and Disaster Relieve Communication

33. ➢
➢
© 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

34. RELEASE DATE: Q4 2018
© 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

35. RELEASE DATE: Q3 2018
© 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

36. ➢
➢
➢
➢
➢
➢
➢
© 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

37. No need for invasive power lines,
MeshBox++ runs on Batteries and SOLAR ENERGY
© 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

38. © 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

39. HOW TO EARN SMT
➢ Provide Network
Bandwidth
➢ Spectrum Mining
➢ Assist Nodes with Smart
Raiden / Photon
Payment Channels
HOW TO EARN MESH
➢ Provide Data
Storage
Functionality
➢ Provide Content
Distribution
Functionality
Additional Tokens and Mining Methods Coming!
© 2018 SmartMesh Foundation Pte. Ltd., MeshBox Foundation Pte. Ltd., MeshPlusPlus, Inc.

40. Desired
Outcome
Complementing what Government and Corporates
have failed to attained
• Operating Efficiency + Economic Efficiency + Social Efficiency
National or Regional Stable Coin with the Least
Centralization
• Cross Border
• 24/7
• Distributed Trust
Blockchain as a New Business Model (not just a
software)
• Fractional Digital Asset
• Value Exchange
• New and Empowering Financial Products with Tokenisation
• Largest Sources of ESG Products with Impact Clearly Defined
and Tradeable
• New Economical Method of Capital Raising

41. More Desired
Outcome
New form of Crowd Funded Cheap Capital
for the Emerging Economies
Privacy Protection
Smart City Cyber Security
Blockchain as Coded Governance and
Smart Contract as Executable
Governance/Agreement

42. Inclusiveness
Interoperability, Inter-Technology,
International Exchange
Each different blockchain becomes a
functional node
Decentralization, social scalability and
security
Establish institutional consensus and
sustainable development
Open Source Software, Hardware, Data

43. There is no Endgame, just a
Journey!
Independence and Dignity!