December 2018, Zurich, Blockchain Unchained
Shady underworld or a bright future?
DLT - beyond the cryptocurrencies!
• Crypto is a bubble
• DLT = Blockchain = Cryptocurrency
• It is expensive
• It is fraudulent
• Is Bitcoin the only successful case on DLT?
Use Cases from around the world
Country Manager - Europe
m: +44 7904 389 285
Crypto is a bubble
Let’s put things into perspective
We are here
Is BTC actually different from all other assets?
• Price dynamic is the discovery process of value, the value of digital gold being hard to grasp
• High return (x10,000 in 7 years) → high risks
Bitcoin Grain WTI IND.Metals Gold MSCI BRIC EUROSTOXX50 S&P500
XBT Curncy SPGSGRP Index CLA CMDTY SPGSINP XAU Curncy MXBRIC Index SX5EWk SPX Index
Mean 0.83% -0.02% -0.03% 0.00% 0.01% 0.00% 0.01% 0.04%
Standard deviation 6.99% 1.41% 1.29% 1.24% 1.02% 1.12% 1.57% 0.92%
Volatility 133.61% 26.87% 24.67% 23.60% 19.44% 21.47% 29.97% 17.62%
Skewness 123.36% 20.68% 3.89% -13.38% 58.48% -26.23% -3.53% -37%
Excess kurtosis 1482.10% 245.42% 421.23% 240.23% 566.63% 252.24% 522.26% 478.54%
Min. return -45.17% -5.88% -6.86% -6.49% -8.97% -6.69% -11.02% -6.66%
Max. return 67.71% 7.35% 7.17% 5.89% 5.20% 4.87% 11.81% 4.74%
Value at risk at 99% confidence 17.27% 3.69% 3.46% 3.19% 2.83% 3.20% 4.39% 2.67%
Expected shortfall (99%) 25.99% 4.80% 4.66% 4.36% 3.95% 3.97% 5.67% 3.60%
Worst absolute dropdown -93.07% -61.28% -59.51% -57.82% -44.58% -51.05% -44.33% -19.39%
• Asset Under Management, Worldwide: $100T
If 2% is invested in BTC, price should be $100,000
Bitcoin Potential Upside - future can be bright
• Gold capitalization: $8T
if BTC reaches a similar level, its price should be $400,000
• Metcalfe's law: the value of a network is proportional to the square of the number of
Estimated BTC investors is about 50 mln. with a forecast to 350 millions price might increase x49
Is it wrong that we
have so many
It is soooo expensive
Reminder: market cap was in peak $700 bln, lately
$120-200 bln (€90-170 bln)
Value and hashing power
• Each day 1800 new Bitcoin are created worth approx. +/- 10 mln. EUR
• Current hashing power of the network +/- 60 mln Th/s
• 4 400 000 Antiminer S9i
• 13.5 Th/s
• 1.35 kW each
• Cost: 500 EUR each
2 200 000 000 €
Electricity consumption is +/- 70 TWh/year
Total cost : +/- €4 bln/year
Energy consumption [not cost] is equivalent to yearly energy demand
1x 6x 70x
Cryptocurrency is for criminals? Who you bank with?
● 11 biggest banks in the U.S. have paid $243 billion in fines since 2008.
● New York Department of Financial Services fined British Bank Standard Chartered $340 million for allegedly
laundering $250 billion of Iranian money (0.14% of illegal funds)
● Danske bank laundered $230 billion for Russia
● Dutch Rabobank was fined $369 million for handling illicit funds in 2018
● Banks lauder $2.7 bln. every day (estimation by WSJ)
● $16 billion in identity fraud committed against traditional banking customers every year.
● Banks are being fined >1% of ill-gotten gain. The $243 billion in fines potentially represents up to $24 trillion
in fraudulent activity.
● Bitcoin.com estimates total lost to cryptocurrency
fraud is $23 million a day
● In 10 years it is $83,95 billion. (compare that now to
$24 trillion in banks- which is not even 0.35% (!)
● Est. fraudulent trs. in BTC - 0.2 up to 2% transactions
fraudulent, in banks - up to 5-7%
● “Roughly $1.1 billion worth of cryptocurrency was
stolen in the first half of 2018” , Carbon Black on 7th of
But there is a”a lot “ of frauds in crypto! Yes!
Solving real problem
● Up to 15% of worldwide economy is
connected with criminal activity
● 1.1 bln. people have no ID
● 7.2 mln. data are compromised every
● 100 partners (Q3 2018)
● Identity.com: ID marketplace, open
source, on demand
● In mid 2019 they will implement e-
government in Bermuda
● It’s not a question if you’re data were
compromised but if someone is using
You are what you eat - Food Trust
● Walmart - works in China and US
● BM has a contract with Carrefour (33
countries , 12K locations.
● Carrefour launched already in France,
and plan to launch in Spain and Brazil
within the next four years.
■ Nestle, Dole, Tyson Foods, Kroger,
Unilever, McCormick re also working
with IBM to utilize their blockchain- based
■ It is useful in tracking down the origin of
TradeLens early adopter program - 94 organizations!
● > 20 port/terminal operators including PSA Singapore,
International Container Terminal Services Inc, Patrick
Terminals, Modern Terminals in Hong Kong, Port of Halifax,
Port of Rotterdam, Port of Bilbao, PortConnect, PortBase,
Holt Logistics at the Port of Philadelphia, This accounts for
approximately 234 marine gateways worldwide.
● Pacific International Lines (PIL) and Hamburg Süd as global
● Customs authorities in the Netherlands, Saudi Arabia,
Singapore, Australia and Peru
● Freight forwarders, transportation and logistics companies
including Agility, CEVA Logistics, DAMCO, Kotahi, PLH
Trucking Company, Ancotrans and WorldWide Alliance.
They are not the only ones!
Chronicled partner in the MediLedger Project, which
aims at demonstrating compliance with the Drug
Supply Chain Security Act. Pfizer, AbbVie, Genentech
(part of Roche), along with wholesalers
AmerisourceBergen and McKesson are also involved
We. Trade - Erste, HSBC, KBC, Nordea, Rabobank,
UniCredit, Societe Generale, UBS - everything build on
Hyperledger (IBM solution) - smart contract,
settlement conditions, payment term etc..) (
○ EY, Guardtime, A.P. Møller-Maersk, Microsoft
○ insurance industry leaders Willis Towers
Watson, XL Catlin, MS Amlin and ACORD
● My PCR
○ platform is live with up to 30 million NHS
patients enabled for smartphone access
○ delivers immutable proof of health data
provenance and integrity, GDPR patient data
rights management and automated
verification of medication adherence
○ Partners: Instant Access Medical and
● Estonia Healthcare - to secure the health records of
over a million Estonians.
Cosmos platform and much more!
Estonia - digital society!
● e-Government (establish company in
15 minutes, vote online)
● e-Residency (get e-residency and start
a business in minutes)
● e- Healthcare (contact doctor and get
medicines in seconds from any
pharmacy you need)
● Apart from marrying, divorcing and
notary everything can be done online
● The whole system is a distributed
Financing for unbanked (and not only)!
● Global lending platform for small
business loans - everything on
blockchain, using cryptocurrencies
● 3,2 K loans
● Over 14 mln USD volume (loans)
● Partner with Jumia in Kenya
● Entering new African/European
Healthcare - it’s buzzing!
● EncrypGen - Marketplace ( DNA)
● BlockPharma - drug traceability (15% of drugs on
the world are falsified, 800 000 dies because of that
● Simply Vital health - health data management
● Medicalchain - data storage, telemedicine
● Coral Health - medical record app - US and Canada
● Nebula - DNA tests and sharing the data
● Doc.ai - collect and share the health data (Deloitte
is a partner)
● Patientory - data collection and payments
● RareCarat partners with EverLedger - to check
price, quality and provenance of diamonds
● Brilliant Earth - immutable history of authenticity
and source of jewellery
● Shping - planned rollout in Australia, Russia, Malta,
Diamond industry is obsessed with Blockchain
● PizzaForCoin (PizzaHut, Dominos, Papa
Some big brands who accept crypto...
● Reeds Jewelers
● Cheap air
● Alibaba and IBM have the most blockchain
patents in the world.
● Amazon Web Services partnered with QTUM
● Binance made more in profit in Q2 2018 than
● Bitmain is on track for $10 billion in revenue
this year after around $4 billion last year.
● Coinbase is valued at $8B
● Goldman Sachs-backed Circle goes live with
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