Recommended
More Related Content
What's hot
What's hot (20)
Similar to Cyrptocurrencies: Today and Near Future
Similar to Cyrptocurrencies: Today and Near Future (20)
Recently uploaded
Recently uploaded (20)
Cyrptocurrencies: Today and Near Future
- 2. • CryptoCurrencies – Money or Commodity? • Governments & Regulation • Near Future Improvements for Bitcoin & Ethereum • Consensus Mechanisms – PoW vs PoS • Scaling Solutions • Sharding • Raiden • Plasma • Lightning Network Agenda
- 3. Money Functions of Money • Medium of exchange • Measure of value • Standard of deferred payment • Store of value CryptoCurrencies (Bitcoin) • Decentralized • Trustless • Peer-to-peer
- 4. CryptoCurrencies – Money or Commodity? • In September 2015, U.S. Commodity Futures Trading Commission (CFTC) recognized Bitcoin (CryptoCurrencies) as a commodity • In December 2017, Bitcoin Futures trading started in on CME and Cboe • In March 2018, The Securities and Exchange Commission (SEC) classified CryptoCurrencies as Securities, meaning platforms that trade digital currencies would have to register with the SEC. Money Attributes Commodity Attributes Providing • Low transaction costs • Security • Speed Lacking • Governmental backing • Coinage or banknotes • Central bank • Unlimited supply Providing • Scarcity • Finite supply Lacking • Intrinsic value
- 5. Psychology of a Market Cycle
- 6. Bitcoin Price History (Sep 2017 – March 2018)
- 8. USD Purchasing Power History
- 9. Global Reserve Currencies History
- 10. Governments & Regulation - China People's Bank of China (PBOC) blocked access to all domestic and foreign cryptocurrency exchanges and ICO websites in 2017
- 11. Governments & Regulation - Venezuela Petro • Launched in February 2018 by Venezuela, claimed to be backed by the country's oil and mineral reserves • Legally use of petro for virtually any payment including oil trade, taxes, fees, real estate, gasoline, flights and more • Originally to be launched on Ethereum, changed to Nem • Valuation: 1 petro = 1 Venezuelan oil barrel
- 12. Governments & Regulation - Estonia Estcoin • e-residents can establish an EU company with EU banking entirely online, then manage it from anywhere in the world. • Estcoin being criticized as «a solution looking for a problem» • Draghi (ECB) : "No member state can introduce its own currency; the currency of the euro zone is the euro." Three variations of Estcoin: • Community Estcoin: Government «Loyalty» points. • Identity Estcoin: Digitally signing documents, logging into services or enforcing smart contracts. • Euro Estcoin: Euro based cyrpto-currency Earn estcoins if: • Successfully sign up a new e-resident • Post a tender within community that provides work to another e-resident or Estonian company, etc.
- 13. Scaling CryptoKitties transactions caused congestion on ETH network, resulting in extensive delays in transfers for days Transactions capacity (per second) • Bitcoin ~7 • Ethereum ~15 • Visa ~45.000
- 14. Consensus Mechanisms – PoW vs PoS Proof of Work • Risk of 51% attack (~$18.6 Million lost during recent attack on Bitcoin Gold) Proof of Stake • Ethereum implementing Casper Protocol • If one validator creates an “invalid” block, his security deposit will be deleted, as well as his privilege to be part of the network consensus.
- 15. Scaling – Current Structure Nodes compete independently to validate a single transaction in exchange for a monetary reward. Once a node successfully validates a transaction, other nodes verify this information is correct, update the blockchain, and compete to validate the next transaction. The nodes that process these transactions must keep a record of all information stored on the blockchain; this includes every single account balance, transaction, and smart contract.
- 16. Scaling - Sharding Remove 'full' nodes, which store the full state of the network and every transaction that occurs. Each node stores a subset of this data and only verifies those transactions. If a node needs to know about transactions or blocks that it doesn't store, then it finds another node with the information it needs. Nodes need to rely on other nodes -> 'cryptoeconomic incentives' Before Sharding can be implemented, Ethereum protocol must be upgraded to Casper
- 17. Scaling – Raiden Off-chain transactions allow a collection of nodes to establish payment channels between each other to facilitate transactions, without directly transacting with the Ethereum blockchain and clogging up precious capacity.
- 18. Scaling – Plasma Plasma uses a series of smart contracts to create hierarchical trees of sidechains. Can be thought of as a child blockchain that lives within a parent blockchain and relays information back to root chain (Ethereum) periodically. When a user wants to transfer his funds to the mainchain, he submits an «exit transaction», including a «bounty»
- 19. Scaling – Plasma If exit transaction goes unchallenged, user is able to claim funds on the Root Chain. If exit transaction is successfully challenged, it gets cancelled and the challenger gets the bounty.
- 20. Scaling – Lightning Network Not all transactions are required to be recorded on the Blockchain. Create a «payment channel» between parties and record its opening on the Blockchain. Write the final status of the transactions that occurred through the channel on the Blockchain when closing the channel
- 21. Scaling – Lightning Network