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State of Blockchain 2018

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CoinDesk’s 2018 State of Blockchain summarizes key trends, data and events in 2017.

Highlights include:

After uncertainty around fork ends, bitcoin’s price breaks free and topples multiple milestones. Meanwhile, BTC dominance shrinks to all-time lows.
Bitcoin fees increase dramatically. While Coinbase hits #1 app on iTunes, it and all exchanges struggle to cope with demand.
$3.23bn for ICOs and $200mn for VC. However, forks were the largest token generating event of the year with $44bn created.
CME & Cboe launch with high interest but low volume. Large traders shorted and small traders longed.
Sentiment Survey: 81% did not go into debt to buy crypto. Of those that did, 52% already paid it back. 94% check prices at least every day.
Key metrics up across public blockchains.

Published in: Technology

State of Blockchain 2018

  1. 1. STATE OF BLOCKCHAIN 2018
  2. 2. Register for Consensus 2018! State of Blockchain – Q4 2017 | 2 - We are the leading events firm in blockchain - Our annual Consensus events have attracted thousands of entrepreneurs, investors, executives, regulators, journalists and more to San Francisco and New York City - Join us in May for our next event, Consensus!
  3. 3. Q4 2017 State of Blockchain: Table of Contents State of Blockchain – Q4 2017 | 3 1. EXECUTIVE SUMMARY 2. PUBLIC BLOCKCHAINS 3. ENTERPRISE BLOCKCHAINS 4. INVESTMENT 5. GOVERNMENT & REGULATION 6. SENTIMENT SURVEY 7. COINDESK A. Research Framework A. BITCOIN B. ETHEREUM C. BITCOIN CASH D. LITECOIN E. XRP F. ZCASH G. MONERO
  4. 4. 1 EXECUTIVE SUMMARY State of Blockchain – Q4 2017 | 4
  5. 5. Sentiment Survey: - 81% did not go into debt to buy crypto. Of those that did, 52% already paid it back. 94% check prices at least every day. Demand for bitcoin tests market infrastructure: - Bitcoin fees increase dramatically. While Coinbase hits #1 app on iTunes, it and all exchanges struggle to cope with demand. Q4 2017 Overall Summary Data Source: CoinDesk State of Blockchain – Q4 2017 | 5 Bitcoin & cryptocurrencies make historic moves: - After uncertainty around fork ends, bitcoin’s price breaks free and topples multiple milestones. Meanwhile, BTC dominance shrinks to all time lows. Key metrics up across public blockchains: - Hashrate, >1MB Bitcoin blocks, ethereum blockchain transaction records, all time valuations ICOs and VC hit new highs: - $3.23bn for ICOs and $200mn for VC. However, forks were the largest token generating event of the year with $44bn created. Futures launch successfully: - CME & Cboe launch with high interest but low volume. Large traders shorted and small traders longed.
  6. 6. Q4 2017 Trends: Public Blockchains Data Sources: CoinDesk, Image Notes: Expanded upon in Section 2: Public Blockchains - Total cryptocurrency market cap breaks $600bn, nearly as much as the GDP of Argentina. - Fees moderately increase in general, but soar for BTC. - Bitcoin dominance falls below 40% after a rebound above 50% early in the quarter. . State of Blockchain – Q4 2017 | 6 - CryptoKitties’ popularity slowed down the ethereum network but showed promise for future developments. - Many cryptocurrencies reached all time highs, notably BTC at almost $20k and ETH at almost $1k. - Bitcoin Cash solidifies within the top 10 market cap with a hashrate that surpassed BTC’s for one day in November.
  7. 7. Q4 2017 Trends: Enterprise Blockchains - R3 adds members, launches, Corda version 2.0. Corda becomes the first DLT to be accessible on Amazon Web Services (AWS). - Enterprise Ethereum Alliance adds members & 3 new working groups. - We.Trade, founded by 9 banks, aims to ease European domestic and cross-border trade with DLT made by IBM. State of Blockchain – Q4 2017 | 7 Data Sources: CoinDesk, Image Notes: Expanded upon in Section 3: Enterprise Blockchains - Hyperledger lost CME Group, Deutsche Borse Group, R3, and about 15 other members.
  8. 8. Q4 2017 Trends: Trading & Investment - Total raised by ICOs hits $3.23bn in Q4, with VC amounting to $200mn. Q3 to Q4 growth less spectacular when shown in ETH (+56%) vs. USD (+146%). - Forks have raised 8x more than ICOs. Token generating events (TGE) are split between $44bn in forks vs. $5bn in ICOs cumulatively. - Bitcoin futures see high interest but low volume, with small traders going long and large traders going short. State of Blockchain – Q4 2017 | 8 Data Sources: CoinDesk, Image Notes: Expanded upon in Section 4: Investment
  9. 9. Q4 2017 Trends: Regulation & Government State of Blockchain – Q4 2017 | 9 Data Source: CoinDesk Notes: Expanded upon in Section 5: Regulation & Government - The CFTC approved CME & Cboe’s launch of bitcoin futures contracts. - South Korea sees higher levels of regulation on trading. - Bitfinex & Tether become targets of US regulators after suspicious activity results in subpoena. - Russia moves to define regulatory environment with submission of new bill.
  10. 10. State of Blockchain – Q4 2017 | 10 2 PUBLIC BLOCKCHAINS
  11. 11. Q4 2017 Public Blockchain Summary Data Source: CoinDesk State of Blockchain – Q4 2017 | 11 Some fees rise, but BTC’s fees soar: - Fees generally increased but BTC saw record- breaking fees and congestion in Q4. Ripple grew ~300x YTD: - All major cryptocurrencies are up approximately 1,000%. Aggregate market cap breaks $600bn: - Public blockchain assets rallied 3x, over $75bn in value over the quarter. Bitcoin dominance falls below 40%: - Bitcoin ceded it’s +50% Q2 to Q3 comeback. Transactions hit new highs: - Transactions on major blockchains increased, ethereum broke all-time transaction records. Sector sees all-time high interest: - Google searches for blockchain terms see new highs, especially in December.
  12. 12. 4.2% 11.9% 18.5% 23.0% 1278.4% 707.3% 0% 200% 400% 600% 800% 1000% 1200% 1400% Global Real Estate Gold U.S. Equities Global Equities Bitcoin All Digital Assets 2017 YTD Returns Digital Assets Outperformed Traditional Assets Nearly 13x Return YTD State of Blockchain – Q4 2017 | 12 Data Source: Yahoo! Finance, Coincap, Coin.Dance Notes: Daily data, RWO, GLD, SPY, CWI, & BTC prices, all cryptocurrency market cap, data through 12/31/2017
  13. 13. $0 $100 $200 $300 $400 $500 $600 $700 Oct-17 Nov-17 Dec-17 Aggregate Market Cap ($, billions) Total Cryptocurrency Market Cap Total Cryptocurrency Market Cap Increased Over 50% Reached All-Time High Above $600bn in Q4 State of Blockchain – Q4 2017 | 13 Data Source: Coin.Dance, CoinMarketCap Oct. 1: $149.1bn Dec. 31: $597.9bn 301% $448.8bn For some context, the market cap of: Western Union ≈ $10 billion Ether ≈ $70 billion Bitcoin ≈ $250 billion All Cryptocurrencies ≈ $600 billion Visa ≈ $250 billion Gold ≈ $8 trillion
  14. 14. The Fall of Bitcoin Maximalism? BTC Dominance Fell below 40% State of Blockchain – Q4 2017 | 14 Data Source: CoinMarketCap Jan ’17 Feb ’17 Mar ’17 Apr ’17 May ‘17 Jun ’17 Jul ‘17 Aug ‘17 Sep ’17 Oct ’17 Nov ‘17 Dec ‘17 Percentage of Total Cryptocurrency Market Cap Bitcoin: 38.70% Ethereum: 11.92% Bitcoin Cash: 6.97% Litecoin: 2.06% Ripple: 14.52% Dash: 1.33% NEM: 1.52% Monero: 0.88% IOTA: 1.61% NEO: 0.80% Others: 19.68% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
  15. 15. 0% 5000% 10000% 15000% 20000% 25000% 30000% 35000% 40000% January February March April May June July August September October November December CumulativeReturn(%,sinceJanuary1,2017) 2017 2017 Price Movement Cumulative Return (%) BTC ETH XRP DASH XMR Ripple Rallied ~35000% Year to Date Exceeded 6% Average Daily Volatility State of Blockchain – Q4 2017 | 15 Data Source: Coincap, Coinmetrics, CoinMarketCap Notes: Average day over day price movement (absolute value) Average Daily Price Movement Asset Symbol Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 Bitcoin BTC 2.6% 3.1% 3.9% 4.8% 3.6% Ethereum ETH 4.7% 5.5% 5.0% 3.6% 4.7% Ripple XRP 2.9% 11.3% 4.9% 6.7% 6.4% Dash DASH 6.0% 5.2% 5.3% 5.3% 5.5% Monero XMR 4.7% 5.2% 6.0% 5.5% 5.4%
  16. 16. 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Q1 '09 Q2 '09 Q3 '09 Q4 '09 Q1 '10 Q2 '10 Q3 '10 Q4 '10 Q1 '11 Q2 '11 Q3 '11 Q4 '11 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14 Q4 '14 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 AverageDailyTransactions(#) Daily Cryptocurrency Transactions BTC ETH BCH LTC DASH XMR ETC ZEC Transactions on Major Blockchains Increased, Especially ETH State of Blockchain – Q4 2017 | 16 Average Daily Cryptocurrency Transactions Quarter BTC ETH BCH LTC DASH XMR ETC ZEC Total Q1 '16 201,633 20,242 4,453 1,582 580 20,242 248,733 Q2 '16 220,659 40,895 5,519 1,184 434 40,895 309,586 Q3 '16 218,831 45,109 3,432 1,549 1,038 21,324 291,283 Q4 '16 260,987 42,908 3,455 1,238 1,600 14,658 3,186 328,032 Q1 '17 286,052 58,291 3,345 3,118 2,720 19,890 2,561 375,975 Q2 '17 290,845 154,176 11,707 4,893 2,796 27,524 4,033 495,974 Q3 '17 242,180 315,631 12,391 21,808 5,910 3,835 34,614 5,399 641,768 Q4 '17 319,085 589,171 23,209 51,328 8,915 5,358 42,597 7,129 1,046,791 Data Source: Bitinfocharts, Coinmetrics
  17. 17. $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17 AverageTransactionFees($) Cryptocurrency Transaction Fees BTC ETH BCH LTC DASH XMR ETC ZEC Average Transaction Fees Rose for All Major Cryptocurrencies BTC Fees More Than 4x Since Q3 State of Blockchain – Q4 2017 | 17 Data Source: Bitinfocharts, Coinmetrics Average Cryptocurrency Transaction Fees Quarter BTC ETH BCH LTC DASH XMR ETC ZEC Q1 '16 $0.08 $0.01 $0.05 $0.04 $0.07 Q2 '16 $0.13 $0.01 $0.02 $0.08 $0.11 Q3 '16 $0.18 $0.01 $0.02 $0.09 $0.33 $0.00 Q4 '16 $0.24 $0.01 $0.02 $0.13 $0.13 $0.00 $0.00 Q1 '17 $0.62 $0.01 $0.03 $0.12 $0.38 $0.00 $0.00 Q2 '17 $2.40 $0.22 $0.11 $0.10 $1.09 $0.01 $0.00 Q3 '17 $3.20 $0.33 $0.17 $0.15 $0.16 $1.84 $0.01 $0.00 Q4 '17 $13.20 $0.38 $0.19 $0.25 $0.36 $4.23 $0.01 $0.18
  18. 18. Many Blockchain Terms Hit an All-Time Google Search High Ethereum Searches Fell from a Peak in Q2 2017 State of Blockchain – Q4 2017 | 18 Data Source: Google Trends 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 TrafficRelativetoMaximuminPeriod(%) Global Google Search Trends Bitcoin Ethereum Blockchain Cryptocurrency Ripple ICO Coinbase Oct-17 Nov-17 Dec-17 Q4 - Global Google Search Trends
  19. 19. More Money, More Miners Increased Market Cap à Increased Hashrate Across Coins State of Blockchain – Q4 2017 | 19 Data Source: $0 $100 $200 $300 $400 $500 $600 $700 Oct-17 Nov-17 Dec-17 Aggregate Market Cap ($, billions) Total Cryptocurrency Market Cap
  20. 20. State of Blockchain – Q4 2017 | 20 2A BITCOIN
  21. 21. Q4 2017 Bitcoin Summary State of Blockchain – Q4 2017 | 21 Fork postponed: - The 2 MB block size increase was called off due to lack of support. Global trading volume continued growth: - JPY, USD solidify large shares. Transaction fees soared: - Average transaction fees rose about 300% from Q3. Transactions rebound: - The number of transactions rebounded about 30% from Q3 dip. Data Source: CoinDesk Bitcoin almost breaks $20,000: - This quarter saw multiple all time highs that ranged from $5k to $19k. Hashrate up 60% to new all time high: - Network security continued to grow but BCH had more at one day in November.
  22. 22. Bitcoin Ended Ambitious Quarter Up 214% Set a New All-Time High Above $300bn State of Blockchain – Q4 2017 | 22 Data Source: Coincap, Coinmetrics - $50bn $100bn $150bn $200bn $250bn $300bn $350bn Oct Nov Dec 2017 Bitcoin Q4 2017 Market Cap Oct. 1: $71.6bn Dec. 31: $224.9bn 214% $153.3bn- $50bn $100bn $150bn $200bn $250bn $300bn $350bn 4/28/13 7/28/13 10/28/13 1/28/14 4/28/14 7/28/14 10/28/14 1/28/15 4/28/15 7/28/15 10/28/15 1/28/16 4/28/16 7/28/16 10/28/16 1/28/17 4/28/17 7/28/17 10/28/17 Bitcoin Historical Market Cap
  23. 23. $- $5,000 $10,000 $15,000 $20,000 $25,000 Oct Nov Dec Bitcoin Price & Key Market Events State of Blockchain – Q4 2017 | 23 Data Sources: CoinDesk, bitcoin price page Oct. 31: CME & CBOE announce futures Nov. 28: Bitcoin hits ATH of $10k Oct. 12: Bitcoin hits ATH of $5k Oct. 24: Bitcoin Gold hard fork Nov. 12: bitcoin’s hashrate falls below bitcoin cash’s for 1 day Nov. 8: SegWit2x postponed 2017 Oct. 12: Jamie Dimon insults Bitcoin Nov. 15: Square Cash testing buying and selling of bitcoins Dec. 10: CBOE futures open & crash website Dec. 18: CME futures open Dec. 17: Bitcoin nearly hits ATH of $20k Dec. 28: South Korea crackdown on cryptocurrency trading Dec. 20: Youbit exchange hacked Dec. 22: Coinbase temporarily halts trading Nov. 28:
  24. 24. Global Trading Volumes Take Off USD & JPY Solidify Large Shares Data Source: CryptoCompare State of Blockchain – Q4 2017 | 24 - $2bn $4bn $6bn $8bn $10bn $12bn $14bn $16bn January April July October January April July October AggregateTradingVolume($,billions) 2016 2017 Global Daily Bitcoin Exchange Trading Volume USD JPY CNY EUR KRW PLN HKD USDT
  25. 25. 0% 20% 40% 60% 80% 100% October November December %ofAggregateTradingVolume 2017 Global Daily Bitcoin Exchange Trading Volume USD JPY CNY EUR KRW PLN HKD USDT Q4 2017 - Global Daily Bitcoin Exchange Trading Volume Data Source: CryptoCompare State of Blockchain – Q4 2017 | 25 USDT USD JPY USD KRW
  26. 26. 0% 20% 40% 60% 80% 100% %ofAggregateTradingVolume Global Daily Bitcoin Exchange Trading Volume USD JPY CNY EUR KRW PLN HKD USDT 0% 20% 40% 60% 80% 100% February March April May June July August September October November December %ofAggregateTradingVolume 2017 Global Daily Bitcoin Exchange Trading Volume USD JPY CNY EUR KRW PLN HKD USDT Global Trading Volume Dominated by USD and JPY Data Source: CryptoCompare State of Blockchain – Q4 2017 | 26 CNY USD JPY USD CNY JPY KRW
  27. 27. Exchange Trading Volume Increased Bitfinex, With Margin Trading, is the Largest USD Exchange Data Source: CryptoCompare State of Blockchain – Q4 2017 | 27 Top BTC <> USD Exchanges in Q4: - Bitfinex - Coinbase - Bitstamp - Gemini - Kraken Q3 2017: Bitfinex: 44.92% Bitstamp: 17.18% Coinbase: 16.81% Gemini: 12.97% - $2bn $4bn $6bn $8bn $10bn $12bn $14bn $16bn AggregateTradingVolume($,billions) 2017 Global Daily Bitcoin Exchange Trading Volume USD JPY CNY EUR KRW PLN HKD USDT Bitfinex 45.94% Coinbase 24.74% Bitsamp 15.72% Gemini 9.53% Kraken 4.08%
  28. 28. 0% 100% 200% 300% 400% 500% 600% 700% 800% 900% 1000% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Quarterly Price Range ∆ ($) ∆ (%) Bitcoin Price Varied From $2,000 to $5,000 Second Straight Largest Quarterly $ Variation State of Blockchain – Q4 2017 | 28 Data Source: CoinDesk bitcoin price page Q2 ’11: 4,253% Q4 ’13: 1,049% Q3 ’17: $3,012Q4 ’13: $1,047 Q1 ’13: 683% Quarter High Low ∆ ($) ∆ (%) Q4 10 $0.39 $0.06 $0.33 538.3% Q1 11 $1.09 $0.30 $0.80 269.5% Q2 11 $29.60 $0.68 $28.92 4252.9% Q3 11 $15.44 $4.77 $10.67 223.7% Q4 11 $5.27 $2.05 $3.22 157.0% Q1 12 $7.11 $4.22 $2.89 68.5% Q2 12 $6.69 $4.69 $2.00 42.7% Q3 12 $13.50 $6.45 $7.05 109.3% Q4 12 $13.70 $10.17 $3.53 34.7% Q1 13 $104.00 $13.28 $90.72 683.1% Q2 13 $230.00 $68.36 $161.64 236.5% Q3 13 $129.46 $66.34 $63.12 95.1% Q4 13 $1,147.25 $99.81 $1,047.43 1049.4% Q1 14 $951.39 $458.50 $492.89 107.5% Q2 14 $665.73 $360.84 $304.89 84.5% Q3 14 $647.34 $374.73 $272.61 72.7% Q4 14 $427.24 $309.87 $117.37 37.9% Q1 15 $314.59 $177.28 $137.31 77.5% Q2 15 $262.48 $218.27 $44.21 20.3% Q3 15 $309.98 $209.13 $100.85 48.2% Q4 15 $465.50 $237.40 $228.10 96.1% Q1 16 $458.28 $358.77 $99.51 27.7% Q2 16 $768.24 $417.01 $351.23 84.2% Q3 16 $703.69 $552.82 $150.87 27.3% Q4 16 $997.69 $609.38 $388.31 63.7% Q1 17 $1,290.79 $775.98 $514.80 66.3% Q2 17 $3,018.55 $1,089.51 $1,929.03 177.1% Q3 17 $4,950.72 $1,938.94 $3,011.78 155.3% Q4 17 $19,343.04 $4,225.92 $15,117.12 357.7% Q4 ’17: $15,117 Q4 ’17: 358%
  29. 29. - 200bn 400bn 600bn 800bn 1000bn 1200bn 1400bn 1600bn - 2m 4m 6m 8m 10m 12m Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Difficulty Hashrate(TH/s) Bitcoin Network Security Average Hashrate (TH/s) Average Difficulty Hashrate and Mining Difficulty Up 50% to Another All-Time High Data Source: Blockchain Notes: Daily data. 'TH/s' is the estimated number of tera hashes (trillions of hashes) per second, 'difficulity' is a relative measure of how difficult it is to find a new block, which is adjusted periodically as a function of how much hashing power has been deployed. State of Blockchain – Q4 2017 | 29 Hashrate Quarter Average Hashrate (TH/s) QoQ Growth Average Difficulty QoQ Growth Q1 2016 1.06m 94% 139.82bn 98% Q2 2016 1.39m 31% 188.36bn 35% Q3 2016 1.59m 14% 216.75bn 15% Q4 2016 2.03m 28% 273.07bn 26% Q1 2017 3.15m 55% 412.67bn 51% Q2 2017 4.40m 39% 584.49bn 42% Q3 2017 6.76m 54% 885.87bn 52% Q4 2017 10.89m 61% 1421.24bn 60%
  30. 30. The Transaction Fee Surge Slowed Fees Rose 33% After Nearly Tripling in Q2 State of Blockchain – Q4 2017 | 30 Data Source: Blockchain Fees Average Daily Quarter Bitcoin Transaction Fees QoQ Change Q4 2013 $0.19 125.8% Q1 2014 $0.15 -19.6% Q2 2014 $0.10 -35.3% Q3 2014 $0.09 -4.9% Q4 2014 $0.06 -40.8% Q1 2015 $0.04 -32.8% Q2 2015 $0.04 2.9% Q3 2015 $0.06 42.8% Q4 2015 $0.06 12.4% Q1 2016 $0.08 36.4% Q2 2016 $0.13 51.9% Q3 2016 $0.18 36.5% Q4 2016 $0.24 37.9% Q1 2017 $0.62 156.4% Q2 2017 $2.41 288.5% Q3 2017 $3.21 32.9% Q4 2017 $13.20 311.7% $13.20 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Bitcoin Transaction Fee Growth (Average $ per transaction)
  31. 31. Transaction Volumes Rebound, Up 32% State of Blockchain – Q4 2017 | 31 Transactions Data Source: Blockchain Average Daily Quarter Bitcoin Transactions QoQ Change Q4 2013 60,280 22.9% Q1 2014 63,991 6.2% Q2 2014 62,639 -2.1% Q3 2014 67,260 7.4% Q4 2014 82,724 23.0% Q1 2015 95,344 15.3% Q2 2015 108,910 14.2% Q3 2015 130,834 20.1% Q4 2015 164,488 25.7% Q1 2016 201,595 22.6% Q2 2016 221,018 9.6% Q3 2016 219,624 -0.6% Q4 2016 261,710 19.2% Q1 2017 287,098 9.7% Q2 2017 291,091 1.4% Q3 2017 242,334 -16.7% Q4 2017 319,085 31.7% 319,085 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Average#perday Bitcoin Transactions
  32. 32. Average Block Size Above 1 MB State of Blockchain – Q4 2017 | 32 Blocks Data Source: Blockchain Average Daily Bitcoin Quarter Block Sizes (MB) QoQ Change Q4 2013 0.16 32.9% Q1 2014 0.21 25.3% Q2 2014 0.22 7.8% Q3 2014 0.25 12.5% Q4 2014 0.33 31.6% Q1 2015 0.38 14.4% Q2 2015 0.42 11.5% Q3 2015 0.54 28.4% Q4 2015 0.58 7.7% Q1 2016 0.71 21.6% Q2 2016 0.78 10.8% Q3 2016 0.78 -0.9% Q4 2016 0.86 10.6% Q1 2017 0.93 7.8% Q2 2017 0.97 4.6% Q3 2017 0.88 -8.7% Q4 2017 1.02 15.4% 1.02 0.00 0.20 0.40 0.60 0.80 1.00 1.20 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 AverageBlockSize(MB) Bitcoin Block Size
  33. 33. State of Blockchain – Q4 2017 | 33 2B ETHEREUM
  34. 34. Q4 2017 Ethereum Summary Exchange Volumes Nearly Double: - Ethereum’s USD exchange volume grew by almost 2x on average for Q4, but suffered some drop-off at the end of the year. CryptoKitties win hearts and minds: - CryptoKitties application launched on ethereum saw huge interest but resulted in a platform wide slowdown. Hit all time high of almost $1k: - Ethereum skyrocketed, along with other cryptos, especially in December. Network Hashrate continues rise: - Hashrate grew by about 40% continuing the growth trend. Transaction Volume bursts in Q4: - Ethereum transaction volumes continue to outpace BTC by almost 200%. State of Blockchain – Q4 2017 | 34 Data Source: CoinDesk Successful Byzantium hard fork: - Ethereum successfully completed the Byzantium hard fork, verified zk-snark proof among other developments.
  35. 35. - $10bn $20bn $30bn $40bn $50bn $60bn $70bn $80bn $90bn Oct Nov Dec 2017 Ethereum Q4 2017 Market Cap Ethereum Increased 141% Over Q4 Reached All-Time High of $68.9bn in Market Cap State of Blockchain – Q4 2017 | 35 Data Source: Coincap, Coinmetrics Oct. 1: $28.6bn Dec. 31: $68.9bn 141% $40.2bn- $10bn $20bn $30bn $40bn $50bn $60bn $70bn $80bn $90bn Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Ethereum Historical Market Cap
  36. 36. $- $100 $200 $300 $400 $500 $600 $700 $800 $900 Oct Nov Dec Ethereum Price & Key Market Events Data Sources: CoinDesk, CoinDesk ether price page State of Blockchain – Q4 2017 | 36 Oct. 16: Byzantium Hard Fork Dec. 4: CryptoKitties slow down transactions Dec. 15: ETH on Bloomberg Terminal Oct. 11: CoinShares announces European exchange- traded note for ether Oct. 18: Sberbank joins EEA Nov. 7: Parity wallets freeze $150m Dec. 12: Reaches ATH of $500 Dec. 11: UBS launches ethereum project Nov. 28: CryptoKitties launches
  37. 37. Ether Exchange Trading Volume Nearly Doubled State of Blockchain – Q4 2017 | 37 Data Sources: Cryptocompare, CoinDesk ether price page Notes: $ value at the time across all listed currencies and exchanges - $1.0bn $2.0bn $3.0bn $4.0bn $5.0bn Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 TotalDailyTradingVolume($,billions) Global Daily Ether Exchange Trading Volume $1.6b - $200m $400m $600m $800m $1000m $1200m $1400m $1600m $1800m Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 AverageDailyVolume($,millions) Average Daily Ether Exchange Trading Volume
  38. 38. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% January February March April May June July August September October November December RelativeShareofTotalTradingVolume Trading Volume Dominance Ether Exchange Trading $ Volume Fell to Earlier Levels After Surpassing Bitcoin State of Blockchain – Q4 2017 | 38 Data Source: Coincap, Coinmetrics 2017
  39. 39. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% October November December %ofAggregateTradingVolume Global Daily Ether Exchange Trading Volume KRW USD BTC CNY EUR USDT JPY ETH Most Heavily Traded with BTC BTC Gained Market Share to USD and KRW State of Blockchain – Q4 2017 | 39 Data Source: CryptoCompare BTC USD KRW Q2 2017: BTC: 31.6% USD: 25.5% KRW: 29.5% Q3 2017: BTC: 19.6% USD: 28.9% KRW: 36.9% 2017 KRW 16.3% USD 33.3% BTC 41.4% CNY 0.3% EUR 4.3% USDT 3.9% JPY 0.5% Q4 2017 Ether Exchange Trading Volume Share of Volume Across Currencies KRW USD BTC CNY EUR USDT JPY
  40. 40. Poloniex Led Volume in BTC Markets Bitfinex Displaced Coinbase in USD State of Blockchain – Q4 2017 | 40 Data Source: CryptoCompare 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Ether Exchange Trading Volume (USD) Share of Total Volume Across Exchanges Coinbase Bitfinex Gemini Kraken Bitstamp Coinbase 34.83% Bitfinex 41.94% Gemini 11.24% Kraken 5.42% Bitstamp 6.57% Ether Exchange Trading Volume (USD) Share of Total Across Exchanges Binance 29.15% Bitfinex 20.07% OKEX 6.95% Poloniex 30.53% HitBTC 13.30% Ether Exchange Trading Volume (BTC) Share of Total Across Exchanges 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Ether Exchange Trading Volume (BTC) Share of Total Volume Across Exchanges Binance Bitfinex OKEX Poloniex HitBTC
  41. 41. ETH Transaction Numbers Rise Again Surpassed BTC in Quarterly Average State of Blockchain – Q4 2017 | 41 Transactions Data Source: Etherscan Q4 2017: BTC: 319,085 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Ethereum Transaction Growth (Average # per day) 589,171 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Ethereum Transaction Growth (Average # per day)
  42. 42. Transaction Fees Continued to Increase Rose from 16₵ in Q3 to 21₵ in Q4 2017 State of Blockchain – Q4 2017 | 42 Data Sources: Etherscan, CoinDesk ether price Fees Upward demand on price as well as ICO demand caused a few spikes in transaction fees $0.21 $- $0.05 $0.10 $0.15 $0.20 $0.25 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Ethereum Transaction Fee Growth (Average $ per transaction) $- $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 Ethereum Transaction Fee Growth (Average $ per transaction) CryptoKitties traffic jam
  43. 43. Hashrate Securing the Network Grew State of Blockchain – Q4 2017 | 43 Data Source: Etherscan Notes: 'GH/s' is the estimated number of gigahashes (billions of hashes) per second Hashrate Hashing power on the ethereum network grew 47.3% from Q3 to Q4 2017 122,516 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Hashrate Growth (Average GH/s per day)
  44. 44. Block Size Increased to New All-Time Highs As Transactions Increased State of Blockchain – Q4 2017 | 44 Blocks Data Source: Etherscan 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 9/30/15 12/31/15 3/31/16 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17 Ethereum Block Size Growth (Average bytes per block)
  45. 45. Over 8 Million Ethereum Blockchain Addresses, Doubled Quarter-Over-Quarter State of Blockchain – Q4 2017 | 45 Addresses Data Source: Etherscan Notes: Distinct addresses do not directly correlate to unique users, individuals frequently control the private keys to multiple addresses and exchanges frequently control the private keys to addresses that store multiple users’ funds 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 9/30/15 12/31/15 3/31/16 6/30/16 9/30/16 12/31/16 3/31/17 6/30/17 9/30/17 12/31/17 Total Distinct Ethereum Addresses
  46. 46. State of Blockchain – Q4 2017 | 46 2C Bitcoin Cash
  47. 47. Bitcoin Cash Forked Off of Bitcoin on August 1st Bitcoin Cash Difficulty Adjustment Led to Hash Power > Bitcoin for 2 Days State of Blockchain – Q4 2017 | 47 Data Sources: Bitinfocharts, Blockchain, Fundstrat While the BCH hashrate started off near BTC, it generally stayed below except in November during Postponement of Segwit2x. 0 0.1 0.2 0.3 0.4 0.5 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 10/1/17 10/8/17 10/15/17 10/22/17 10/29/17 11/5/17 11/12/17 11/19/17 11/26/17 12/3/17 12/10/17 12/17/17 12/24/17 12/31/17 BCHPriceinBTC BCHPriceinUSD Bitcoin Cash Price USD BTC Herfindahl-Hirschman index (HHI) Bitcoin: 2080 Bitcoin Cash: 2640
  48. 48. - $10bn $20bn $30bn $40bn $50bn $60bn $70bn Oct Nov Dec Bitcoin Cash Q4 2017 Market Cap Bitcoin Cash Increased 457% Over Q4 Reached All-Time High of $65.9bn in Market Cap State of Blockchain – Q4 2017 | 48 Data Source: Coincap, Coinmetrics Oct. 1: $7.2bn Dec. 31: $40.1bn 457% $32.9bn- $10bn $20bn $30bn $40bn $50bn $60bn $70bn Jul-17 Aug-17 Aug-17 Aug-17 Aug-17 Sep-17 Sep-17 Sep-17 Sep-17 Oct-17 Oct-17 Oct-17 Oct-17 Oct-17 Nov-17 Nov-17 Nov-17 Nov-17 Dec-17 Dec-17 Dec-17 Dec-17 Bitcoin Cash Historical Market Cap
  49. 49. Bitcoin Cash Exchange Trading Volume Increased Over Final Two Months of 2017 State of Blockchain – Q4 2017 | 49 Data Sources: Cryptocompare, Coinmetrics Notes: $ value at the time across all listed currencies and exchanges $1.3b - $200m $400m $600m $800m $1000m $1200m $1400m Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 AverageDailyVolume($,millions) Average Daily Bitcoin Cash Exchange Trading Volume - $.5bn $1.0bn $1.5bn $2.0bn $2.5bn $3.0bn $3.5bn $4.0bn $4.5bn Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 TotalDailyTradingVolume($,billions) Global Daily Bitcoin Cash Exchange Trading Volume
  50. 50. BCH Most Heavily Traded with BTC BCH Gained Market Share from KRW State of Blockchain – Q4 2017 | 50 Data Source: CryptoCompare Q3 2017: KRW 44.3% BTC 36.4% USD 15.6% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% October November December %ofAggregateTradingVolume Global Daily Ether Exchange Trading Volume USD BTC USDT KRW EUR ETH JPY 2017 USD 19.8% BTC 42.6% USDT 2.0% KRW 31.8% EUR 1.3% ETH 1.7% JPY 0.9% Q4 2017 Bitcoin Cash Exchange Trading Volume Share of Volume Across Currencies USD BTC USDT KRW EUR ETH JPY
  51. 51. HitBTC Led Volume in BTC Markets Bitfinex Dominates in USD State of Blockchain – Q4 2017 | 51 Data Source: CryptoCompare 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Bitcoin Cash Exchange Trading Volume (USD) Share of Total Volume Across Exchanges Bitfinex Coinbase Bitstamp Kraken HitBTC Bitfinex 73.39% Coinbase 11.62% Bitstamp 0.68% Kraken 6.14% HitBTC 8.17% Bitcoin Cash Exchange Trading Volume (USD) Share of Total Across Exchanges 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Bitcoin Cash Exchange Trading Volume (BTC) Share of Total Volume Across Exchanges HitBTC OKEX Bitfinex Bittrex Binance HitBTC 40.99% OKEX 5.88% Bitfinex 16.26% Bittrex 23.07% Binance 13.81% Bitcoin Cash Exchange Trading Volume (BTC) Share of Total Across Exchanges
  52. 52. BCH Transaction Numbers Rise Again State of Blockchain – Q4 2017 | 52 Transactions Data Source: Coinmetrics Q4 2017: BTC: 319,085 17,002 23,209 0 5,000 10,000 15,000 20,000 25,000 Q3 17 Q4 17 Bitcoin Cash Transaction Growth (Average # per day) 0 50,000 100,000 150,000 200,000 250,000 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Bitcoin Cash Transaction Growth (Average # per day)
  53. 53. Transaction Fees Increase Barely Rose from 1₵ in Q3 to 19₵ in Q4 2017 State of Blockchain – Q4 2017 | 53 Data Sources: Coinmetrics Fees $0.18 $0.19 $0.17 $0.18 $0.19 Q3 17 Q4 17 Bitcoin Cash Transaction Fee Growth (Average $ per transaction) $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Bitcoin Cash Transaction Fee Growth (Average $ per transaction)
  54. 54. State of Blockchain – Q4 2017 | 54 Data Sources: Bitinfocharts Blocks Despite Large Blocks Most Blocks Remained Unfilled
  55. 55. State of Blockchain – Q4 2017 | 55 Data Sources: Bitinfocharts Hashrate Hashrate Securing Network Grows Steadily Blips Related to Bitcoin Fork Uncertainty
  56. 56. State of Blockchain – Q4 2017 | 56 2D LTC
  57. 57. - $4bn $8bn $12bn $16bn $20bn Oct Nov Dec Litecoin Q4 2017 Market Cap Litecoin Increased 304% Over Q4 Reached All-Time High of $8.9bn in Market Cap State of Blockchain – Q4 2017 | 57 Data Source: Coincap, Coinmetrics Oct. 1: $2.9bn Dec. 31: $11.8bn 304% $8.9bn- $4bn $8bn $12bn $16bn $20bn Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Litecoin Historical Market Cap
  58. 58. Litecoin Exchange Trading Volume Rose and Crashed State of Blockchain – Q4 2017 | 58 Data Sources: Cryptocompare, CoinDesk, Coinmetrics Notes: $ value at the time across all listed currencies and exchanges - $100m $200m $300m $400m $500m $600m $700m Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 TotalDailyTradingVolume($,billions) Global Daily Litecoin Exchange Trading Volume $223,576,813 - $50m $100m $150m $200m $250m AverageDailyVolume($,millions) Average Daily Litecoin Exchange Trading Volume
  59. 59. LTC Most Heavily Traded with USD KRW Lost Market Share to BTC & USDT State of Blockchain – Q4 2017 | 59 Data Source: CryptoCompare Q3 2017: USD 39% KRW 34% BTC 23% 2017 USD 42.2% BTC 35.6% USDT 3.0% KRW 15.0% EUR 3.5% ETH 0.5% Q4 2017 Litecoin Exchange Trading Volume Share of Volume Across Currencies USD BTC USDT KRW EUR ETH 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% October November December %ofAggregateTradingVolume Global Daily Litecoin Exchange Trading Volume USD BTC USDT KRW EUR ETH
  60. 60. Bitfinex, Coinbase, and Poloniex Split BTC Markets Coinbase Dominates in USD State of Blockchain – Q4 2017 | 60 Data Source: CryptoCompare 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Litecoin Exchange Trading Volume (USD) Share of Total Volume Across Exchanges Coinbase Bitfinex Bitstamp Kraken HitBTC Coinbase 58.56% Bitfinex 29.91% Bitstamp 5.98% Kraken 2.05% HitBTC 3.50% Litecoin Exchange Trading Volume (USD) Share of Total Across Exchanges 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Litecoin Exchange Trading Volume (BTC) Share of Total Volume Across Exchanges OKEX Binance Poloniex Bitfinex Coinbase OKEX 5.33% Binance 14.97% Poloniex 27.89% Bitfinex 30.95% Coinbase 20.87% Litecoin Exchange Trading Volume (BTC) Share of Total Across Exchanges
  61. 61. LTC Transaction Numbers Rise Drastically State of Blockchain – Q4 2017 | 61 Transactions Data Source: Coinmetrics Q4 2017: BTC: 319,085 51,328 0 10,000 20,000 30,000 40,000 50,000 60,000 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Litecoin Transaction Growth (Average # per day) 0 40,000 80,000 120,000 160,000 200,000 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Litecoin Transaction Growth (Average # per day)
  62. 62. Transaction Fees Return to Past Levels Rose from 16₵ in Q3 to 19₵ in Q4 2017 State of Blockchain – Q4 2017 | 62 Data Sources: Coinmetrics Fees $0.19 $0.00 $0.04 $0.08 $0.12 $0.16 $0.20 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Litecoin Transaction Fee Growth (Average $ per transaction) $0.00 $0.20 $0.40 $0.60 $0.80 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Litecoin Transaction Fee Growth (Average $ per transaction)
  63. 63. State of Blockchain – Q4 2017 | 63 Data Sources: Bitinfocharts Blocks Small Block Size Hit All Time High of 200k
  64. 64. State of Blockchain – Q4 2017 | 64 Data Sources: Bitinfocharts Hashrate Hashrate Spiked with Value
  65. 65. State of Blockchain – Q4 2017 | 65 2E XRP
  66. 66. - $20bn $40bn $60bn $80bn $100bn Oct Nov Dec XRP Q4 2017 Market Cap XRP Increased 971% Over Q4 Reached All-Time High of $85.2bn in Market Cap State of Blockchain – Q4 2017 | 66 Data Source: Coincap, Coinmetrics Oct. 1: $7.6bn Dec. 31: $82.3bn 971% $73.6bn- $10bn $20bn $30bn $40bn $50bn $60bn Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 XRP Historical Market Cap
  67. 67. XRP Exchange Trading Volume Increased State of Blockchain – Q4 2017 | 67 Data Sources: Cryptocompare, Coinmetrics Notes: $ value at the time across all listed currencies and exchanges $1.1b - $200m $400m $600m $800m $1000m $1200m Oct-17 Nov-17 Dec-17 AverageDailyVolume($,millions) Average Daily XRP Exchange Trading Volume - $1.0bn $2.0bn $3.0bn $4.0bn $5.0bn Oct-17 Nov-17 Dec-17 TotalDailyTradingVolume($,billions) Global Daily XRP Exchange Trading Volume
  68. 68. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% October November December %ofAggregateTradingVolume Global Daily XRP Exchange Trading Volume USD KRW BTC EUR USDT ETH AUD XRP Most Heavily Traded with BTC USD & BTC Gained Market Share from KRW State of Blockchain – Q4 2017 | 68 Data Source: CryptoCompare Q3 2017: BTC: 41.7% KRW 36.8% USD 15.9% 2017 USD 24.9%KRW 25.4% BTC 42.6% EUR 4.1% USDT 0.0% ETH 2.2% AUD 0.7% Q4 2017 XRP Exchange Trading Volume Share of Volume Across Currencies USD KRW BTC EUR USDT ETH AUD
  69. 69. Poloniex Led Volume in BTC Markets Bitfinex Led in USD State of Blockchain – Q4 2017 | 69 Data Source: CryptoCompare 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) XRP Exchange Trading Volume (USD) Share of Total Volume Across Exchanges Bitfinex Bitstamp Kraken Poloniex Bittrex Bitfinex 51.99% Bitstamp 20.06% Kraken 5.94% Poloniex 13.54% Bittrex 8.47% XRP Exchange Trading Volume (USD) Share of Total Across Exchanges 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) XRP Exchange Trading Volume (BTC) Share of Total Volume Across Exchanges HitBTC Binance Poloniex Bittrex Bitfinex HitBTC 4.73% Binance 23.71% Poloniex 36.79% Bittrex 25.08% Bitfinex 9.69% XRP Exchange Trading Volume (BTC) Share of Total Across Exchanges
  70. 70. XRP Transaction Numbers Rise Again State of Blockchain – Q4 2017 | 70 Transactions Data Source: Ripple Q4 2017: BTC: 319,085
  71. 71. Transaction Fees Barely Increase Rose from 1₵ in Q3 to 19₵ in Q4 2017 State of Blockchain – Q4 2017 | 71 Data Sources: Ripple, Bitinfocharts Fees
  72. 72. XRP Ledgers Increase State of Blockchain – Q4 2017 | 72 Ledgers Data Source: Ripple
  73. 73. State of Blockchain – Q4 2017 | 73 2F ZEC
  74. 74. - $1bn $1bn $2bn $2bn $3bn Oct Nov Dec ZCash Q4 2017 Market Cap ZCash Increased 123% Over Q4 Reached All-Time High of $1.9bn in Market Cap State of Blockchain – Q4 2017 | 74 Data Source: Coincap, Coinmetrics Oct. 1: $.6bn Dec. 31: $1.4bn 123% $.8bn- $1bn $1bn $2bn $2bn $3bn Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 ZCash Historical Market Cap
  75. 75. ZCash Exchange Trading Volume Increased State of Blockchain – Q4 2017 | 75 Data Sources: Cryptocompare, Coinmetrics Notes: $ value at the time across all listed currencies and exchanges - $50m $100m $150m $200m $250m $300m $350m $400m $450m Oct-17 Nov-17 Dec-17 TotalDailyTradingVolume($,billions) Global Daily ZCash Exchange Trading Volume $155m - $40m $80m $120m $160m $200m AverageDailyVolume($,millions) Average Daily ZCash Exchange Trading Volume
  76. 76. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% October November December %ofAggregateTradingVolume Global Daily ZCash Exchange Trading Volume USD BTC KRW ETH RUB ZEC Most Heavily Traded with BTC KRW Started Its Markets in Late October State of Blockchain – Q4 2017 | 76 Data Source: CryptoCompare Q3 2017: BTC 55.7% USD 40.8% ETH 3.3% 2017 USD 26.4% BTC 50.4% KRW 21.6% ETH 1.4% RUB 0.1% Q4 2017 ZCash Exchange Trading Volume Share of Volume Across Currencies USD BTC KRW ETH RUB
  77. 77. HitBTC Lost Share In BTC Markets Bitfinex with Most Volume In USD State of Blockchain – Q4 2017 | 77 Data Source: CryptoCompare 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) ZCash Exchange Trading Volume (USD) Share of Total Volume Across Exchanges Bitfinex HitBTC Poloniex Kraken Bittrex Bitfinex 56.27%HitBTC 13.06% Poloniex 16.41% Kraken 4.62% Bittrex 9.63% ZCash Exchange Trading Volume (USD) Share of Total Across Exchanges 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) ZCash Exchange Trading Volume (BTC) Share of Total Volume Across Exchanges HitBTC Binance Bittrex Bitfinex HitBTC 50.49% Binance 11.01% Bittrex 22.04% Bitfinex 16.46% ZCash Exchange Trading Volume (BTC) Share of Total Across Exchanges
  78. 78. ZEC Transaction Numbers Rise Again State of Blockchain – Q4 2017 | 78 Transactions Data Source: Coinmetrics Q4 2017: BTC: 319,085 7,129 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 ZCash Transaction Growth (Average # per day) 0 4,000 8,000 12,000 16,000 20,000 Oct-17 Nov-17 Dec-17 ZCash Transaction Growth (Average # per day)
  79. 79. ZCash Transaction Fees Remain Inexpensive Despite Price Increase State of Blockchain – Q4 2017 | 79 Data Sources: Coinmetrics Fees $0.18 $0.00 $0.04 $0.08 $0.12 $0.16 $0.20 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 ZCash Transaction Fee Growth (Average $ per transaction) $0.00 $0.20 $0.40 $0.60 $0.80 Oct-17 Nov-17 Dec-17 ZCash Transaction Fee Growth (Average $ per transaction)
  80. 80. State of Blockchain – Q4 2017 | 80 Data Sources: Bitinfocharts Hashrate Hashrate Continues to Grow
  81. 81. State of Blockchain – Q4 2017 | 81 2G XMR
  82. 82. - $1bn $2bn $3bn $4bn $5bn $6bn $7bn $8bn Oct Nov Dec Monero Q4 2017 Market Cap Monero Increased 253% Over Q4 Reached All-Time High of $7.3bn in Market Cap State of Blockchain – Q4 2017 | 82 Data Source: Coincap, Coinmetrics Oct. 1: $1.4bn Dec. 31: $5.1bn 253% $3.7bn- $1bn $2bn $3bn $4bn $5bn $6bn $7bn $8bn May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Monero Historical Market Cap
  83. 83. Monero Exchange Trading Volume Increased State of Blockchain – Q4 2017 | 83 Data Sources: Cryptocompare, Coinmetrics Notes: $ value at the time across all listed currencies and exchanges - $100m $200m $300m $400m $500m $600m Oct-17 Nov-17 Dec-17 TotalDailyTradingVolume($,billions) Global Daily Monero Exchange Trading Volume $201m - $40m $80m $120m $160m $200m $240m AverageDailyVolume($,millions) Average Daily Monero Exchange Trading Volume
  84. 84. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% October November December %ofAggregateTradingVolume Global Daily Monero Exchange Trading Volume USD BTC KRW EUR ETH XMR Most Heavily Traded with BTC Trading Remained Stable State of Blockchain – Q4 2017 | 84 Data Source: CryptoCompare Q3 2017: BTC 49.1% KRW 25.7% USD 21.8% 2017 USD 22.7% BTC 52.2% KRW 21.4% EUR 2.1% ETH 1.5% USDT 0.0% Q4 2017 Monero Exchange Trading Volume Share of Volume Across Currencies USD BTC KRW EUR ETH USDT
  85. 85. HitBTC Led in BTC Markets Bitfinex Gained Big in USD State of Blockchain – Q4 2017 | 85 Data Source: CryptoCompare 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Monero Exchange Trading Volume (USD) Share of Total Volume Across Exchanges Bitfinex Kraken HitBTC Bittrex Poloniex Bitfinex 56.68% Kraken 5.77% HitBTC 18.62% Bittrex 7.58% Poloniex 11.35% Monero Exchange Trading Volume (USD) Share of Total Across Exchanges 0% 20% 40% 60% 80% 100% October November December ShareofTotalVolume(%) Monero Exchange Trading Volume (BTC) Share of Total Volume Across Exchanges HitBTC Poloniex Binance Kraken Bitfinex HitBTC 39.76% Poloniex 31.96% Binance 8.89% Kraken 3.72%Bitfinex 15.68% Monero Exchange Trading Volume (BTC) Share of Total Across Exchanges
  86. 86. XMR Transaction Numbers Rise State of Blockchain – Q4 2017 | 86 Transactions Data Source: Coinmetrics Q4 2017: BTC: 319,085 5,358 0 1,000 2,000 3,000 4,000 5,000 6,000 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Monero Transaction Growth (Average # per day) 0 2,000 4,000 6,000 8,000 10,000 12,000 Oct-17 Nov-17 Dec-17 Monero Transaction Growth (Average # per day)
  87. 87. Transaction Fees More Than Double Rose from $1.82 in Q3 to $4.23 in Q4 2017 State of Blockchain – Q4 2017 | 87 Data Sources: Coinmetrics Fees $4.23 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17 Q2 17 Q3 17 Q4 17 Monero Transaction Fee Growth (Average $ per transaction) $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 Oct-17 Nov-17 Dec-17 Monero Transaction Fee Growth (Average $ per transaction)
  88. 88. State of Blockchain – Q4 2017 | 88 Data Sources: Bitinfocharts Hashrate Transaction Fees More Than Double Rose from $1.82 in Q3 to $4.23 in Q4 2017
  89. 89. State of Blockchain – Q4 2017 | 89 3 ENTERPRISE BLOCKCHAINS
  90. 90. Q4 2017 Enterprise Blockchain Summary Microsoft’s enterprise blockchain solutions: - Microsoft launches of blockchain for Azure Government. Hyperledger loses members: - Hyperledger lost CME Group, Deutsche Borse Group, R3, and about 15 others. R3 takes its next step: - R3 adds members, launches Corda version 2.0. Corda becomes the first DLT to be accessible on Amazon Web Services (AWS). Enterprise Ethereum Alliance sees more interest: - Enterprise Ethereum Alliance adds members and 3 new organizational structures. We.Trade joins the ecosystem: - 9 banks set up joint venture aiming to ease European domestic and cross-border trade with DLT built by IBM. State of Blockchain – Q4 2017 | 90 Data Source: CoinDesk Blockchain for Enterprise Market Expected to Grow: - Annual revenue for the enterprise blockchain will increase from approximately $2.5bn worldwide in 2016 to $19.9bn by 2025, with a CAGR of 26.2%.
  91. 91. Blockchain for Enterprise Market Growth State of Blockchain – Q4 2017 | 91 Data Sources: Tractica Annual revenue for enterprise applications of blockchain will increase from approximately $2.5 billion worldwide in 2016 to $19.9 billion by 2025, representing a compound annual growth rate (CAGR) of 26.2%.
  92. 92. Permissioned Blockchains: Enterprise Ethereum Alliance Update State of Blockchain – Q4 2017 | 92 Data Sources: Enterprise Ethereum Alliance, CoinDesk Membership New Organizational Structures Now 250+ members, recent additions include: Digital Identity Working Group: The goal of the Digital Identity Working Group is to establish a general understanding about the role of ethereum in the digital identity space and to develop a taxonomy that is widely accepted and practiced in the technology industry. Energy Working Group: The Energy Working Group is defining standards around ethereum blockchain implementations for oil and gas, mining, refining, trading, utilities, grids and other verticals within the energy industry. The group will work toward building the industry infrastructure needed for widespread adoption within these energy-related areas. Multiplatform Working Group: The MultiPlatform Working Group will work to make the ethereum platform available on multiple operating systems and physical hardware. The current version works well on certain operating systems, but the group will work toward advances which will make the platform universally adoptable. Member Fees: $25k
  93. 93. Permissioned Blockchains: Hyperledger Update State of Blockchain – Q4 2017 | 93 Data Sources: Hyperledger, CoinDesk Membership Gains Membership Losses Projects Now 100+ members, recent additions include: • The National Settlement Depository (NSD), the central depository for Russia's largest securities exchange group, has announced it is testing a new commercial bond trading platform built on top of the Hyperledger blockchain consortium's Fabric software. • Oracle Corporation opened its annual conference announcing building their Blockchain cloud service on top of the Hyperledger Fabric project. • Quilt, Interledger protocol, joins Hyperledger About 15 members left, will leave, or downgrade their membership. They include: Member Fees: Premier: $250k a year. General memberships: $5,000 to $50,000
  94. 94. Permissioned Blockchains: R3 Update State of Blockchain – Q4 2017 | 94 Data Sources: R3, CoinDesk Membership Corda v2.0 Projects Now 100+ members, recent additions include: • Corda v2.0 released • Corda 2.0 delivers the addition of Observer Node functionality. This feature allows transactions to be forwarded to third parties such as relevant regulators for addition to their vaults • Corda is a platform for smart contracts focused on privacy and security • Codebase developed with 50 financial services and tech firms • Open-source release of platform occurred in 2016 • Finastra , R3, and 7 leading banks are creating an online marketplace to drive transparency and efficiency in the syndicated loan market • R3 and 22 of its member banks have developed a solution that leverages distributed ledger technology (DLT) to enable fast, efficient and cost-effective cross-border payments • Emali launches training course for R3’s Corda DLT Platform in Hong Kong and Southern China • R3’s Corda has become one of the first DLT solutions available to users of Amazon Web Services (AWS) R3 Loses Ripple Lawsuit
  95. 95. Major Cellular Carriers Around the World Launch Study Group, CBSG State of Blockchain – Q4 2017 | 95 Data Sources: CoinDesk Members Projects • SoftBank Group, in partnership with blockchain startup Sivira, has created a blockchain-based system for managing personal financial information • The company aims to launch the system in the market in 2019
  96. 96. Coco, Blockchain Interoperability Play State of Blockchain – Q4 2017 | 96 Data Sources: Microsoft, CoinDesk Projects • Microsoft’s Coco platform aims to speed up transactions and simplify governance decisions for enterprise DLT • It will work with popular open-source blockchains and distributed ledgers, including ethereum, R3, Corda, Hyperledger Sawtooth, and JP Morgan’s Quorum • Aims for compatibility with Intel’s SGX chip, other hardware that protects private cryptographic keys. • Intel SGX is CPU-related thus Microsoft’s Coco Framework will not depend on GPU accelerators from Nvidia (NVDA) or AMD • Launch of blockchain for Azure Government Interoperability
  97. 97. Permissioned Blockchains: IBM Update State of Blockchain – Q4 2017 | 97 Data Sources: IBM, CoinDesk Accelerator Partnership Education Projects • MState (formerly HyperFab) is a growth lab for enterprise blockchain focused on Hyperledger Fabric • In partnership with IBM, Comcast Ventures, Galvanize and Boldstart Ventures • IBM will provide training and support to participants • The IBM Academic Initiative provides open resources to over 1,000 universities worldwide • Recently added blockchain resources to the initiative, including access to the IBM Blockchain Platform, six months of access to IBM Cloud, and use of the IBM Blockchain cloud sandbox • In addition, there are resources and guides for educators • ZF Friedrichshafen and UBS on mobile payments system: Car eWallet • PSA International working on a blockchain trial for supply chain document flow • Food safety consortium based on initial Walmart pilot now includes Dole, Unilever, Kroger, Nestle, and others • BM is using the blockchain to speed up and simplify cross- border payments • IBM to track pot supplies as they move up the supply chain from farm to distributor to retailer to consumers in conjunction with British Columbia government
  98. 98. Permissioned Blockchains: We.Trade Update State of Blockchain – Q4 2017 | 98 Data Sources: We.Trade, CoinDesk Projects • Aiming to ease European domestic and cross-border trade we.trade is building a distributed ledger framework that connects a buyer, sellers, banks and intermediaries to simplify transaction management and tracking • The consortium will create a new business entity in the Republic of Ireland, jointly owned by the eight founding banks, that will manage and distribute the offering • Banco Santander, Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and UniCredit are the 8 founding members banks • The commercialization of the platform is expected in Q2 2018. From February 2018, test clients of the founding banks will be able to use the platform. Onboarding team has been formed to welcome new banks to the platform • IBM provides the cloud-based system powered by Hyperledger Fabric 1.0 • Nordea becomes the ninth banking member in December Members Now 10+ members, including: Joint venture rather than consortium. Founding members get equity.
  99. 99. State of Blockchain – Q4 2017 | 99 4 TRADING & INVESTMENT
  100. 100. Q4 2017 Trading & Investment Summary State of Blockchain – Q4 2017 | 100 ICO deal breaks records: - Sirin Labs raised its way into 3rd all-time highest ICO ($158mn). Token sales raise 16x over VC: - Total raised by ICOs hits $3.23bn in Q4, with VC amounting to $200mn. Two important VC deals : - BitGo raised $43mn and Bitpay raised $30mn. ICOs less spectacular in ETH: - Less spectacular when denominating in ETH with +56% vs. +146% for USD (Q3 to Q4). Futures show promise: - CME & Cboe futures launched with regulatory approval and market interest. Forks have raised 8x more than ICOs: - Token generating events (TGE) are split between $44bn in forks vs. $5bn in ICOs cumulatively. Data Source: CoinDesk
  101. 101. $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 October November December CumulativeQuarterlyFunding($,millions) 2017 Q4 2017 Blockchain Funding Cumulative ICO Cumulative VC ICO Funding Raised $3.2bn in Q4 ICOs Exceeded VC by Over 16x State of Blockchain – Q4 2017 | 101 Top ICO Deals: Sirin Labs - $157.9mn Polkadot - $144.6mn Qash - $107.3mn COMSA - $95.4mn Data Sources: CoinDesk venture capital database, CoinDesk ICO Tracker Notes: Deals under $100,000 excluded, $ amount at time raised, including only fundraisers ending in 'Q4 2017’ (10/1/17 – 12/31/17) VC $200mn ICO $3,231mn Top VC Deals: BitGo - $42.5mn BitPay - $30mn OKCoin - $27.2mn Abra - $16mn Q2 ICO $797mn VC $235mn Q3 ICO $1,316mn VC $156mn ICO VC
  102. 102. December Saw the Most ICO Funding Ever State of Blockchain – Q4 2017 | 102 Data Sources: CoinDesk venture capital database, CoinDesk ICO Tracker Notes: Deals under $100,000 excluded, $ amount at time raised, $ amount at time raised, including only fundraisers ending in 'Q4 2017’ (10/1/17 – 12/31/17) $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Monthly New ICO Funding (in $ mn)
  103. 103. 4.960m 4.830m 7.522m - 1m 2m 3m 4m 5m 6m 7m 8m Q2 2017 Q3 2017 Q4 2017 ICO Funding (in ETH) When Priced in ETH, ICO Funding Less Spectacular Rise in Price of ETH Led to Rise in ICO Raises State of Blockchain – Q4 2017 | 103 Data Sources: CoinDesk venture capital database, CoinDesk ICO Tracker Notes: including only fundraisers ending in 'Q4 2017’ (10/1/17 – 12/31/17) -3% ETH +65% USD +56% ETH +146% USD
  104. 104. ICO Deal Count Exploded in Q4 Dwarfs VC Investments in Blockchain State of Blockchain – Q4 2017 | 104 Data Sources: CoinDesk venture capital database, CoinDesk ICO Tracker Notes: Deals under $5m excluded, $ amount at time raised, including only fundraisers ending in 'Q4 2017’ (10/1/17 – 12/31/17) Q4 2017 ICOs Date Project ICO Round ($m) 9/25/17 Centra (CTR) 30.00 9/26/17 Kin Kik 97.04 9/28/17 Cindicator (CND) 15.00 9/29/17 GameCoin 8.86 9/29/17 KICKICO (KCX) 24.97 9/30/17 Monetha (MTH) 29.95 9/30/17 Musiconomi (MCI) 6.77 9/30/17 REAL (REAL) 10.79 9/30/17 uooMAG (UMC) 20.00 10/1/17 Oxycoin (OXY) 6.25 10/2/17 HelloGold (HGT) 5.14 10/4/17 Viberate (VIB) 12.00 10/4/17 Wanchain 35.99 10/6/17 FinShi Capital (FINS) 21.41 10/6/17 Power Ledger (POWR) 23.23 10/8/17 PayPie 26.00 10/10/17 Aion Pre-sale 8.08 10/10/17 Airtoken (AIR) 15.00 10/10/17 Maecenas (ART) 15.40 10/10/17 Wolk Pre Sale 11.77 10/11/17 Airswap (AIG) 24.55 10/11/17 DomRaider 49.09 10/11/17 LAToken (LAT) 19.36 10/12/17 doc.ai (NRN) 13.75 10/12/17 Ties.Network (TIE) 8.29 10/13/17 Streamr 27.00 10/16/17 Change Bank (CAG) 15.83 10/16/17 Credit Protocol 15.30 10/16/17 Eidoo 27.22 10/16/17 HEROcoin 8.17 10/16/17 Paragon 94.58 10/17/17 Dovu 9.09 10/17/17 Request Network (REQ) 33.17 10/18/17 Ambrosus (AMB) 32.51 10/22/17 COBINHOOD (COB) 13.38 10/23/17 UnikoinGold (UKG) 31.59 10/25/17 BLOCKv (VEE) 21.07 10/27/17 Polkadot (DOT) 144.59 10/28/17 Etherparty (FUEL) 31.87 10/28/17 Swarm Fund 5.37 10/30/17 Aeron 5.35 10/30/17 Cryptopay (CPAY) 18.03 10/31/17 ATLANT (ATL) 6.63 … … … Q4 2017 ICOs Date Project ICO Round ($m) 12/28/17 Bankex (BKX) 70.30 12/28/17 BitDegree 22.13 12/29/17 BitClave (CAT) 25.55 12/29/17 Gladius 14.68 12/29/17 STK Token 17.00 12/31/17 ChainTrade (CTC) 30.00 12/31/17 Covesting 18.75 12/31/17 Finom 41.29 12/31/17 LinkerCoin 10.13 12/31/17 Loci 7.38 12/31/17 Telcoin 25.00 Total … $3,231m ICO Q4 2017 ICOs Date Project ICO Round ($m) 10/31/17 CarTaxi (CTX) 8.71 10/31/17 Electroneum (ETN) 40.95 10/31/17 REALT (RLT) 11.15 10/31/17 Red Pulse (RPX) 13.32 10/31/17 Seratio Project (SER) 8.16 11/1/17 Enjin 22.93 11/1/17 Raiden Network (RDN) 33.13 11/3/17 Dragonchain 13.19 11/4/17 Ignis (IGNIS) 18.30 11/6/17 COMSA 95.37 11/7/17 Tokenbox (TBX) 8.32 11/7/17 UQUID Eco System (UQC) 17.80 11/8/17 Qash (QASH) 107.29 11/10/17 Ripio Credit Network (RCN) 37.43 11/10/17 Uptoken (UP) 18.93 11/11/17 Grid+ (GRID) 38.95 11/15/17 Crederoom (CDRT) 5.13 11/15/17 Soma 6.05 11/17/17 B2BX 8.81 11/17/17 Oracles Network (POA) 13.37 11/18/17 MicroMoney 10.54 11/19/17 Qbao (QTUM) 9.80 11/19/17 Quantstamp 53.64 11/20/17 UTRUST 21.00 11/21/17 Science Blockchain (SCI) 12.27 11/21/17 Time New Bank 14.38 11/24/17 Flixxo (FLIXX) 5.10 11/24/17 Mercury Protocol (GMT) 7.62 11/24/17 Starbase (STAR) 8.92 11/25/17 CyberMiles (CMT) 34.37 11/26/17 trade.io Pre-sale 11.29 11/29/17 Datum (DAT) 7.42 11/29/17 WAX (WAX) 45.36 11/30/17 Crypto 20 (C20) 34.93 11/30/17 Esports 5.84 11/30/17 EthLend (LEND) 16.74 11/30/17 Genaro Network (GNX) 11.61 11/30/17 Paycent 15.53 11/30/17 Presearch 20.50 11/30/17 WaBi 11.50 12/1/17 Betmaster (BETM) 5.24 12/1/17 Blockstack (STX) 50.00 12/1/17 DMarket (DMT) 16.18 … … … Q4 2017 ICOs Date Project ICO Round ($m) 12/1/17 Playkey (PKT) 10.45 12/1/17 Sense 15.00 12/1/17 Simple Token (ST) 21.40 12/4/17 SmartMesh 15.69 12/5/17 Cashaa (CAS) 11.15 12/5/17 Leverj (LEV) 13.84 12/6/17 Tokens.net (DTR) 15.00 12/8/17 SportyFi (SPF) 5.09 12/8/17 Storm 30.72 12/8/17 Universa (UTN) 28.68 12/10/17 aelf 24.75 12/10/17 Spectre (SPEC) 15.39 12/11/17 CrowdWiz (WIZ) Pre-Sale 5.39 12/13/17 GUTS Tickets 7.52 12/14/17 GIFTO 10.00 12/15/17 DeepBrain Chain 11.76 12/15/17 DreamTeam 5.52 12/15/17 Gatcoin (presale) (GAT) 9.00 12/15/17 MediBloc (MED) 25.64 12/15/17 Naga (NGC) 62.66 12/15/17 Protos (PRTS) 5.72 12/16/17 Coinlancer 11.86 12/16/17 Nebulas (NAS) 60.00 12/17/17 Neufund (NEU) 14.90 12/17/17 SophiaTX 23.47 12/19/17 Bread 20.02 12/19/17 CommerceBlock 8.82 12/19/17 MiniApps 5.30 12/20/17 Aditus 7.10 12/20/17 AppCoins 17.10 12/20/17 indaHash 42.72 12/20/17 Selfkey Pre-sale 15.84 12/22/17 PROPS 25.00 12/22/17 Qlink 32.17 12/22/17 SingularityNET 32.85 12/23/17 Hdac 20.00 12/24/17 Zen Protocol 46.37 12/25/17 INS Ecosystem 45.76 12/25/17 Uttoken 30.85 12/26/17 Sirin Labs 157.89 12/26/17 TokenPay 28.68 12/27/17 CanYa 8.34 12/27/17 Jibrel Network 30.00 … … … Q4 2017 VC Date Project VC Round ($m) 10/19/17 The Sun Exchange $1.60 10/23/17 Abra $16.00 10/26/17 Orchid Labs $4.70 11/16/17 PayStand $6.00 11/27/17 LibraTax $7.80 11/29/17 Digix Global $1.25 12/4/17 Coinsquare $10.50 12/6/17 BitPay $30.00 12/11/17 Origin $3.00 12/11/17 Brontech $0.93 12/11/17 BitGo $42.50 12/12/17 Bitwise $4.00 12/13/17 Colu $14.50 12/14/17 Coldlar $10.00 12/15/17 OKCoin $27.20 12/15/17 MakerDAO $12.00 12/19/17 Radar Relay $3.00 12/19/17 dYdX $1.00 12/22/17 Coinify ApS $4.80 Total $200.78 VC
  105. 105. - $1.0bn $2.0bn $3.0bn $4.0bn $5.0bn $6.0bn Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 All-Time Blockchain Funding Cumulative VC Cumulative ICO Q4 2017 ICO Total Funding Sky Rockets Further Above Total Venture Capital Blockchain Investment State of Blockchain – Q4 2017 | 105 Top ICO Deals: Filecoin - $262m Tezos - $232m Sirin Labs - $157.9m Bancor - $153m Data Sources: CoinDesk venture capital database, CoinDesk ICO Tracker Notes: Deals under $100,000 excluded, $ amount at time raised *Amount contested and frequently reported between $75m - $116m VC $2.15bn ICO $5.68bn Top VC Deals: 21 - $116m* R3 - $107m Coinbase - $100m Digital Asset - $60m VC ICO
  106. 106. $44.32 $5.25 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 Forks ICOs Token Generation Events for 2017 (in $ bn) TGE Compared Token Generating Events Dominated by Forks State of Blockchain – Q4 2017 | 106 Data sources: CoinmarketCap, CoinDesk venture capital database, CoinDesk ICO Tracker Market Cap (12/31/2017): Bitcoin Cash: $40.13bn Bitcoin Gold: $4.19bn
  107. 107. The Future of Bitcoin CME & Cboe Launch Futures Successfully State of Blockchain – Q4 2017 | 107 Data sources: CoinDesk, Autonomous NEXT, WSJ Summary: • Low Volume • Institutional shorts • Retail longs • First contracts settle without problems
  108. 108. State of Blockchain – Q4 2017 | 108 5 GOVERNMENT & REGULATION
  109. 109. Q4 2017 Government & Regulation Summary Bitfinex & Tether became targets of US regulators: - US regulators subpoena crypto exchange Bitfinex and Tether. CFTC approved bitcoin futures: - The US Commodities & Futures Trade Commission gave approval for CME & Cboe to launch bitcoin futures contracts. Russia moved to define regulatory environment: - Russian bill submitted which will determine the procedure for issuing, taxing, buying and circulation of cryptocurrency. South Korea saw higher levels of regulation: - Q4 was filled with consternation that eventually ended in an increase in regulatory measures on trading. State of Blockchain – Q4 2017 | 109 Data Source: CoinDesk
  110. 110. Americas: CFTC Allows Futures Venezuela Backs Blockchain State of Blockchain – Q4 2017 | 110 Data Sources: CoinDesk, Image Dec. 1 – CFTC gave green light to CME and Cboe to list bitcoin futures. Nov. 28 – New York Department of Financial Services awards 4th ever BitLicense to bitFlyer. Dec. 4 – Rumors that Venezuela will issue oil-backed cryptocurrency. Dec. 6 – CFTC subpoenas crypto exchange Bitfinex and Tether. Dec. 12 – SEC warns 'extreme caution' over cryptocurrency investments.
  111. 111. Europe: West Recoils Back East Leans Forward State of Blockchain – Q4 2017 | 111 Dec. 4 – EU treasury requires more due diligence on cryptocurrency customers and reporting of suspicious transactions. Dec. 22 – Belarus legalizes cryptocurrencies and ICOs – tax-free for five years. Dec. 28 – Russian bill submitted which will determine the procedure for issuing, taxing, buying and circulation of cryptocurrency. Data Sources: CoinDesk, Image Dec. 4 – UK treasury plans to regulate cryptocurrency exchanges. Dec. 19 – Estonian tech official promotes national cryptocurrency, called ‘estcoin’, in bid to become global ICO hub. The government remains hesitant and the EU central bank warns on national prohibition of currency creation.
  112. 112. Asia: More Regulation Very Likely Japan Allows More Exchanges State of Blockchain – Q4 2017 | 112 Dec. 5 – South Korea launches cryptocurrency task force to spearhead regulations. Dec. 3 – Japan approves another four new cryptocurrency exchanges. Nov. 15 – Supreme Court of India issues notice to Reserve Bank seeking regulation of bitcoin. Nov. 24 – Malaysian central bank to issue cryptocurrency regulation in early 2018. Data Sources: CoinDesk, Image Dec. 7 – Bank Indonesia declares bitcoin payment illegal. Dec. 28 – South Korea is imposing new restrictions on cryptocurrency trading to limit speculation.
  113. 113. Middle East and Australia: Regulations on Horizon Although Ineffective State of Blockchain – Q4 2017 | 113 Nov. 1 – New Zealand regulator: “cryptocurrencies are securities”. Oct. 30 – Australian central bank regulating blockchain protocols 'unlikely to be effective’. Data Sources: CoinDesk, Image Dec. 9 – Australian exchanges now required to register with AML regulatory body. Dec. 13 – Saudi, UAE central banks team up to test cryptocurrency. Dec. 25 – Israel regulator seeks to ban bitcoin firms from stock exchange.
  114. 114. State of Blockchain – Q4 2017 | 114 6 Blockchain Sentiment Survey SPOTLIGHT STUDY
  115. 115. Q4 2017 Blockchain Sentiment Survey: Demographics – ~3000 Respondents Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 115 Asia7% Europe36% U.S. & Canada46% Africa2% Central & South America3% 18 – 25 9% 26 – 35 39% 46 - 55 15% 56 – 65 6% 66+ 2% < 18 1% Male 97% Female 3% 16% Developers, 16% Executives, 8% Investors 4% Full-Time Blockchain, 16% Part-Time 2% work at Blockchain Technology Companies, 5% at Investment Services 11% Accredited, 89% Unaccredited investors 92% bought cryptocurrency in 2017, 68% in Q4, 51% in Q3, 34% in Q2, 24% in Q1 86% owned over 3 unique digital assets, 2% never owned 27% own $10k - $50k worth of cryptocurrency, 16% own $1k - $5k, 12% own $100k - $500k 94% check prices at least daily, 56% every day, 37% every hour, 5% a couple times a week 36 – 45 29%
  116. 116. Q4 2017 Blockchain Sentiment Survey: Key Takeaways 69% 75% 82% 70% 94% 60% didn’t go into debt to purchase cryptocurrency, and of those that did 52% have already paid it back feel positive about the current state of bitcoin, down 18% from last quarter just started following cryptocurrencies in 2017, with less than 2% getting involved in 2010. believe cryptocurrencies have moved away from cypherpunk roots. About 40% accept that something digitally native can be private property. checked prices everyday (56%) or compulsively, every hour (37%) agreed with the postponement of SegWit2x, with 33% citing BCH as an existing market alternative. Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 116
  117. 117. 0% 20% 40% 60% 80% 100% No, I became active in 2010 No, I became active in 2011 No, I became active in 2012 No, I became active in 2013 No, I became active in 2014 No, I became active in 2015 No, I became active in 2016 Yes Was 2017 the first year you actively followed cryptocurrencies? 60% Started to Follow Crypto in 2017 Increase Tracks Price Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 117 $20,000 $15,000 $10,000 $5,000
  118. 118. Most Respondents Own Bitcoin and Ether Slightly More Own ETH Than BTC Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 118 Yes 69% No, I used to but I sold all of it 21% I have never owned bitcoin 10% Do you own bitcoin? Yes No, I used to but I sold all of it I have never owned bitcoin Yes 71% No, I used to but I sold all of it 17% I have never owned ether 12% Do you own ether? Yes No, I used to but I sold all of it I have never owned ether
  119. 119. 63% of Respondents Owned XRP 38% Refer to it as Ripple or XRP Interchangeably Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 119 Yes 43% No, I used to but I sold all of it… I have never owned XRP 37% Do you own XRP? Yes No, I used to but I sold all of it I have never owned XRP Ripple 47% XRP 15% I use both interchangea bly 38% When referring to Ripple's cryptocurrency, do you call it: Ripple XRP I use both interchangeably 55.4% 43.6% 39.6% 25.4% 0% 10% 20% 30% 40% 50% 60% It is a strong technology capable of integrating with banks I noticed the great run it was having and wanted to get in for speculative reasons It might become a type of global reserve currency because it can disintermediate correspondent banking and SWIFT It is an inexpensive coin If you bought XRP this year, what were your reasons?
  120. 120. 27% of Respondents Have $10k - $50k in Cryptocurrency Holdings 86% of Respondents Owned a Cryptocurrency Other than ETH, BTC, or XRP Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 120 Top 5 other currencies: Litecoin, Stellar, NEO, Bitcoin Cash, Cardano 86% 6% 6% 2% Do you own any other cryptocurrency? Yes I have never owned a cryptocurrency besides bitcoin, ether or XRP No, I used to but I sold all of it I have never owned any cryptocurrency 10% 16% 14% 27% 12% 12% 3% 4% 1% 1% 0% 5% 10% 15% 20% 25% 30% How much money do you hold in cryptocurrencies (approximate $ value today)?
  121. 121. The Next Best Coins Litecoin & Stellar take #4 & #5 Slot Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 121 *percentages are based on these 7 coins, not all coins submitted 0% 5% 10% 15% 20% 25% 30% 35% Litecoin Stellar Neo Bitcoin Cash Cardano IOTA Monero Which other coin(s) do you own besides BTC, ETH, and XRP?
  122. 122. 92% of Respondents Purchased & 60% Sold Cryptocurrency in 2017 94% Checked Prices At Least Daily Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 122 56.5% 37.3% 5.2% 0.7% 0.3% 0% 10% 20% 30% 40% 50% 60% Every day Every hour -- I'm compulsive A couple times a week A couple times a month Hardly ever Approximately how frequently do you check cryptocurrency prices? 52.8% 29.8% 16.4% 11.2% 40.2% 0% 10% 20% 30% 40% 50% 60% Yes, in Q4 2017 Yes, in Q3 2017 Yes, in Q2 2017 Yes, in Q1 2017 No Did you sell any cryptocurrency in 2017? 68.3% 51.1% 34.4% 23.6% 8.3% 0% 20% 40% 60% 80% Yes, in Q4 2017 Yes, in Q3 2017 Yes, in Q2 2017 Yes, in Q1 2017 No Did you buy any cryptocurrency in 2017?
  123. 123. Knowledge of Enterprise Projects Increased for EEA & Ripple Hyperledger & R3’s Corda Least Well Known Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 123 36.6% 8.8% 65.6% 84.3% 54.0% 60.9% 29.8% 13.8% 9.4% 30.3% 4.7% 1.9% 0% 20% 40% 60% 80% 100% Enterprise Ethereum Alliance Ripple Hyperledger R3's Corda How much do you know about the following? Almost nothing A bit A lot
  124. 124. 10.9% More Respondents Thought Cryptocurrencies Are in a Bubble in Q4 Most Common Response Was ‘Slight Yes’ Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 124 Q3: 38.7% 49.7% yes no 7% 20% 23% 11% 13% 17% 10% 0% 5% 10% 15% 20% 25% Extreme yes Moderate yes Slight yes Neutral Slight no Moderate no Extreme no Do you believe the values of cryptocurrencies, including bitcoin and ether, are in a 'bubble'? Q4: 49.6% 39.4% yes no
  125. 125. Community Was More Bullish on ETH Than BTC in Q4 Alts Shown Positivity with +23.8% Saying They Will “Go Up A lot” Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 125 Q3 “Go Up A lot” 44.5% 41.5% 14.6% 21.2% N/A 33.8% 3.2% 2.2% 10.9% 4.9% 10.9% 2.3% 4.1% 1.7% 9.4% 7.7% 12.7% 2.0% 5.3% 2.5% 14.5% 15.6% 18.2% 2.4% 42.2% 24.5% 31.1% 41.6% 36.8% 35.6% 45.1% 69.2% 34.1% 30.2% 21.3% 57.6% 0% 20% 40% 60% 80% 100% Bitcoin Ethereum Ripple Litecoin Bitcoin Cash All cryptocurrencies combined How do you think the price of the following will do in 2018? Go down a lot Go down a bit Stay about the same Go up a bit Go up a lot
  126. 126. Most Respondents Believe the CME & Cboe Futures Are Positive Signs Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 126 Yes 27% No 73% The CME and Cboe derivatives contracts were announced and went live in Q4. Were you surprised by this development? This is good for Bitcoin 74% This is bad for Bitcoin 26% Institutional capital began to flow into Bitcoin in 2017, and more importantly with the derivatives contracts from CME and Cboe in Q4. Do you believe this is a good thing or a bad thing for Bitcoin? Yes 86% No 14% Do you think the regulated derivatives trading of BTC on the CME and Cboe paved the way for first digital asset-based ETF in 2018?
  127. 127. Community Was Most Confident in Decentralized Exchanges Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 127 28.1% 22.6% 20.6% 9.9% 8.9% 5.3% 4.6% 0% 5% 10% 15% 20% 25% 30% Decentralized exchanges Privacy focused transactions Asset management tools Computation Identity Storage Prediction markets What sector of blockchain applications are you most bullish on?
  128. 128. Positive Sentiment Dropped -18.2% For Bitcoin in Q4 Ethereum Saw Uptick in Positive Sentiment Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 128 Q3 2017 State of Blockchain response: 69.0% 21.2% positive negative 87.2% 7.6% positive negative Overall state of ethereum response: 82.1% 7.1% positive negative 1.9% 1.8% 3.1% 11.8%6.8% 2.1% 8.0% 20.8% 12.5% 3.7% 15.6% 12.2% 9.8% 5.2% 16.0% 6.0% 20.6% 12.3% 15.6% 11.6% 31.3% 35.8% 25.4% 22.5% 17.1% 39.2% 16.2% 15.0% 0% 20% 40% 60% 80% 100% Q4 Q3 Q2 Q1 How do you feel about the current overall state of bitcoin? Extremely negative Moderately negative Slightly negative Neutral or ok Slightly positive Moderately positive Extremely positive
  129. 129. Most Positive Aspect of Bitcoin Was Hedging Against Central Bank Policy Most Negative Aspect Was ‘Transaction Fees’ Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 129 3.2 3.2 3.0 2.8 2.7 0 1 2 3 4 It's a hedge against central bank monetary policy It's uncensorable and immutable It's digital gold with counterfeit protection It's a solution to privacy concerns and identity theft It's great for payments and as a medium of exchange How would you rank the following positive aspects of bitcoin today? 44.5% 29.8% 13.8% 12.0% 0% 10% 20% 30% 40% 50% Transaction fees Scaling No traction as a consumer tool Complicated to use Which of the following do you consider to be the most negative aspect of bitcoin today?
  130. 130. More Than Half Followed The Scaling Debate 75% Follow Scaling Progress of Blockchains in General Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 130 Yes, 74.5% No, 21.5% I am uncertain why this is important, 4.0% Do you follow the engineering progress of scaling blockchains? Yes 59% No 33% Uncertain 8% Did you follow the lead up to the 2X fork?
  131. 131. 34% Thought Bitcoin Cash Made 2X Irrelevant Only 26% Were Disappointed Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 131 33.6% 28.5% 26.4% 11.5% 0% 10% 20% 30% 40% I thought the 2X fork was unnecessary after the creation of Bitcoin Cash (big blocks were already deployed in the market) I agreed with the postponement I was disappointed the fork was postponed I was happy and celebrated the postponement How did you react to the postponement of the 2X fork in November?
  132. 132. After the BTG Hard Fork, 33% ‘Hodled Until Now’ 29% Were Unaware of BTG Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 132 33.2% 28.9% 16.9% 11.9% 5.5% 3.7% 0% 5% 10% 15% 20% 25% 30% 35% Hodled until now Wait, what? Exchanged for BTC Exchanged for another coin or a combination of coins Exchanged for ETH Exchanged for fiat If you were a bitcoin (BTC) holder when Bitcoin Gold (BTG) was created, what did you do with your BTG?
  133. 133. The Overall Sentiment Towards Ethereum Improved in Q4 Relative to Q3 Ethereum Sentiment Much Higher than Bitcoin Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 133 Q3 2017 State of Blockchain response: 82.1% 7.7% positive negative 76.7% 8.6% positive negative Overall state of bitcoin response: 69.0% 21.2% positive negative 1.5% 2.7% 3.3% 1.8%2.6% 3.5% 7.7% 1.3% 3.7% 2.4% 11.7% 1.1% 10.1% 14.8% 12.5% 2.0% 13.4% 13.1% 15.3% 3.1% 38.3% 30.3% 25.7% 21.9% 30.4% 33.2% 23.8% 68.9% 0% 20% 40% 60% 80% 100% Q4 Q3 Q2 Q1 How do you feel about the current overall state of ethereum? Extremely negative Moderately negative Slightly negative Neutral or ok Slightly positive Moderately positive Extremely positive
  134. 134. Most Positive Aspect of Ethereum Was the Protocol 40.7% Say Problematic Smart Contracts Are the Most Negative Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 134 40.0% 35.8% 13.4% 10.9% 0% 10% 20% 30% 40% 50% The ethereum protocol The ethereum dapp ecosystem ICOs The Enterprise Ethereum Alliance Which of the following do you consider to be the most positive aspect of ethereum today? 40.7% 33.9% 18.9% 6.5% 0% 10% 20% 30% 40% 50% Potentially buggy smart contracts Scaling ICOs Transaction fees Which of the following do you consider to be the most negative aspect of ethereum today?
  135. 135. 71% Didn’t Follow the Byzantium Hard Fork 29.2% Cite “Mining Difficulty Adjustments” as Most Important Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 135 Yes 28.56% No 71.44% Did you follow the ethereum Byzantium hard fork in October? 29.2% 26.4% 25.7% 18.7% 0% 5% 10% 15% 20% 25% 30% 35% Mining difficulty adjustments to help manage transaction times during periods of high volume Privacy enhancements that will allow zk-snarks and ring signatures to be mobilized Faulty smart contract code management Re-entrancy protection; (malicious code that works to alter and manipulate existing smart contract code) What feature of ethereum's Byzantium hard fork do you think is most important?
  136. 136. 48% Think The CryptoKitties Phenomena Was Positive For Scaling 61% Followed The Discussion & 54% Foresee More Developments Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 136 47.6% 34.9% 17.6% 0% 10% 20% 30% 40% 50% This was positive, as scaling solutions could be the result of unexpected developments I have no opinion on this news This was negative, as it exposed the limitations of blockchain technology What did you think about the conversation around scaling blockchains after ethereum set these record high transactions amid the CryptoKitties craze? Yes, 61.5% No, 38.5% Did you follow the discussion surrounding the transaction volume limits of ethereum and blockchain technology provoked by the popularity of CryptoKitties?
  137. 137. 30% Participated in an ICO, Down -14% in Q4 More Than Half Who Haven’t Participated Tried or Wanted To Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 137 Q3: 43.8% had participated Yes, 29.5% No, but I have tried or wanted to, 33.6% No, and I have never tried or wanted to either, 36.9% Have you ever participated in an ICO?
  138. 138. 51% Took Part in an ICO Most Who Participated Still Hold Their ICO Tokens Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 138 48.9% 39.1% 10.5% 10.0% 6.5% 4.3% 0% 10% 20% 30% 40% 50% 60% I have not taken part in an ICO I am still holding all my ICO tokens Sold them into bitcoin Sold them into ether Sold them into other tokens Sold them into fiat If you have taken part in an ICO, what have you done with your tokens since?
  139. 139. ICO Participants Considered Use Case Their Primary Driver of Analysis Social Signals Remain the Lowest Ranked Factor Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 139 5.0 4.8 4.1 3.8 3.5 3.3 3.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 Use case Team Technological roadmap Crypto-economic viability White paper quality Token valuation and structure (price, allocation to team, future tokens, lock up, etc.) Social signals (buzz, advisors, partnerships, endorsements) How would you rank the importance of the following factors behind buying an ICO?
  140. 140. 80% of Respondents Bought or Want to Buy “Small Cap” Coins Long-Term Holding Cited as Main Factor Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 140 Yes, 65.7% No, but I have tried or wanted to, 14.1% No, and I have never tried or wanted to either, 20.2% Did you buy any 'small cap' (<$1bn market cap) coins this year? 59.7% 41.7% 38.9% 14.1% 0% 20% 40% 60% 80% Investment (long-term holding) Speculation (short- term trade) Interest (learning more about and using the technology and product) I do not buy small cap coins When looking to buy small cap (<$1bn market cap) coins, what was the primary reason for your purchase? 57.6% 32.5% 25.0% 20.8% 0% 20% 40% 60% 80% Uncertainty around projects and fear of losing investment I only buy coins from exchanges that are selective on what they list Lack of attractive projects I am unfamiliar with where to buy these small cap coins If you have not bought a small cap coin, what has been the primary reason for your lack of participation?
  141. 141. Most Agree That ICO & VC Investment Are Complements Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 141 46.4% 17.6% agree disagree 50.5% 15.7% agree disagree 17.2% 29.2% 36.0% 9.1% 8.5% 0% 5% 10% 15% 20% 25% 30% 35% 40% Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree I believe new blockchain projects should consider mixing traditional investment funding (like venture capital and angels) and ICOs. 18.4% 32.2% 33.7% 8.7% 7.0% 0% 5% 10% 15% 20% 25% 30% 35% 40% Strongly agree Somewhat agree Neither agree or disagree Somewhat disagree Strongly disagree I believe VC or angel investment is a positive social signal and would make me more inclined to participate in an ICO.
  142. 142. Respondents Think More ICO Funds Should be Held in Fiat About 13% for More Fiat in Q4 Than Q3 Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 142 44.5% 26.1% 24.4% 5.0% 0% 10% 20% 30% 40% 50% Both (more cryptocurrency than fiat) Keep all funds in cryptocurrencies Both (more fiat than cryptocurrency) Convert all raised and liquid tokens into fiat How do you think ICO issuers should hold the funds raised in a token sale?
  143. 143. Blockchain Media Sites and White Papers Were Most Commonly Used to Learn More About Tokens or ICO Projects Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 143 82.2% 62.5% 62.0% 39.2% 29.2% 20.3% 15.1% 9.9% 0% 20% 40% 60% 80% 100% Blockchain media sites like CoinDesk Study white papers Reddit Twitter GitHub Watch for signals from professional buy-side of crypto-hedge funds Slack channels LinkedIn What resources do you use to learn more about tokens or ICO projects?
  144. 144. 63% Think Positively of Cryptocurrency Diversification 56% Prefer Market Approach Rather Than Government Regulation Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 144 62.9% 37.1% The number of cryptocurrencies exploded in 2017. Do you think token diversification is positive or negative for the industry? Positive Negative 56.1% 43.9% Which will have a greater effect on the quality of tokens or ICO projects, a sophisticated buy- side of professional crypto-hedge-funds, or the regulatory approach? A market approach with a sophisticated buy-side will be more important for token and ICO project quality. A regulatory approach will be more important for token and ICO project quality.
  145. 145. Respondents Believed More Regulation in Future But Will Prove to Be Irrelevant or Temporary (More Than in Q3) Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 145 63.6% 62.4% 47.7% 35.4% 0% 20% 40% 60% 80% Exchanges will become more and more regulated Decentralized exchanges will gain traction as they are much more difficult to regulate Some jurisdictions will be entrepreneurial and aim to lure exchanges and businesses with attractive regulatory regimes Regulatory compliance is difficult, and signals to regulate exchanges do not always achieve desired results With several jurisdictions tackling exchanges with new regulations, how do you think the market will respond? 51.2% 47.1% 47.0% 26.7% 5.1% 0% 20% 40% 60% be a test on Chinese regulators themselves: the compliance they've signalled will be difficult to achieve. be temporary. be a gift to other parts of the world as China loses its position. cause other jurisdictions to follow China's lead. Other (please specify) China took the strongest regulatory tone on cryptocurrencies in 2017. This action will...
  146. 146. Most Respondents Felt Positive About the Overall State of DLT The Largest Group Felt ‘Neutral’ or ‘OK’About DLT Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 146 Often called ‘DLT’, ‘permissioned’ or ‘enterprise’ blockchains 55.3% 11.7% positive negative 52.7% 18.6% positive negative 2.0% 4.0% 5.7% 33.0% 14.9% 24.3% 16.1% 0% 5% 10% 15% 20% 25% 30% 35% Extremely negative Moderately negative Slightly negative Neutral or ok Slightly positive Moderately positive Extremely positive How do you feel about the current overall state of Distributed Ledger Technology (sometimes called 'permissioned' or 'enterprise' blockchains)? Q3 2017 State of Blockchain response:
  147. 147. Most Respondents Believed DLT Will Gain Traction in 2018 Most Thought Lack of Attention Was Positive Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 147 84.6% 15.5% Do you think DLT will gain traction in 2018 with projects going live? Yes No 61.1% 21.3% 12.6% 5.0% 0% 20% 40% 60% 80% DLT still needs time, so cryptocurrency attention was a good thing in that it took away pressure and allowed proofs of concept to be tested properly Had no effect, they are unrelated Slowed down public enthusiasm, but not corporate enthusiasm Slowed down public enthusiasm With all of the attention cryptocurrencies got because of value increases, how do you think it affected the momentum behind DLT?
  148. 148. Industry Moved Away From Cypherpunk Roots Most Think Central Banks Will Hold Bitcoin Eventually Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 148 68.5% 31.5% With the rise in popularity of cryptocurrencies in 2017, do you think the industry moved away from its cypherpunk roots? Yes No 41.1% 59.0% With all the developments in the industry this year, do you think that mainstream public perception has finally made it over psychological hump of accepting that something natively digital can be private property? Yes No 31% 21% 48% Do you believe a central bank will hold Bitcoin on their balance sheet in 2018? Yes No Not in 2018, but one day
  149. 149. 81% Did NOT Go Into Debt to Buy Crypto Of Those That Did, 52.4% Already Paid Back Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 149 19.0% 81.0% Did you use credit or buy crypto on margin in 2017? Yes No 52.4% 47.6% If you bought on credit, did you pay back your debt already? Yes No
  150. 150. 6.2% of Respondents Became Crypto-Millionaires in 2017 But 39% Think They Will in 2018 Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 150 6.2% 93.9% Did you become a 'crypto-millionaire' in 2017? Yes No 38.8% 61.2% Do you think you can become a 'crypto-millionaire' in 2018? Yes No
  151. 151. Market Cap is the Most Valued Data Point When Buying Crypto Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 151 5.73 5.63 5.6 5.18 5.13 4.8 4.57 4.38 3.93 0 1 2 3 4 5 6 7 Marketcap Exchange volume Number of exchanges listing the coin On-chain transaction volume Total future supply of coins Transaction fees Total current supply of coins Hash power Google trends How would you rank the importance of the following data points when buying any cryptocurrency?
  152. 152. Almost 13% Measure Portfolio in BTC Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 152 60.1% 24.1% 12.4% 2.2% 0.8% 0.5% 0% 10% 20% 30% 40% 50% 60% 70% In US dollars In another fiat currency In Bitcoin In ether In another coin In XRP How do you measure the total value of your digital asset portfolio?
  153. 153. 47% Follow the Bitcoin Dominance Percentage 16% Use as Investment Criteria Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 153 46.8% 19.0% 18.4% 15.8% 0% 10% 20% 30% 40% 50% Yes No, I follow cryptocurrency market cap, but not Bitcoin's share of the market cap No, I follow cryptocurrency valuations but not industry market cap Yes, I follow Bitcoin Dominance and make investments into alt-coins or bitcoin based on this data point Do you follow the Bitcoin Dominance percentage of total cryptocurrency market cap?
  154. 154. 83% See Promise in Square Cash’s Bitcoin Integration Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 154 83% 17% With the Square Cash integration of a 'Buy Bitcoin' function, do you believe new entrants into Bitcoin infrastructure will put pressure on the existing exchanges to offer faster and more reliable services? Yes No
  155. 155. 84% Re-Invested Gains into Crypto Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 155 84.1% 31.2% 12.6% 9.9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Kept investing in cryptocurrencies Diversified into other assets Paid debt Gave myself a gift/bought a Lambo or Tesla If you realized important gains in cryptocurrency this year, what did you do with the gains:
  156. 156. 63% Don’t Store Crypto on Hardware Wallets Data Source: CoinDesk’s Q4 2017 Blockchain Sentiment Survey State of Blockchain – Q4 2017 | 156 37.2% 5.1% 57.7% Did you buy a hardware storage device for your cryptocurrencies in 2017? Yes No, I already owned one No
  157. 157. State of Blockchain – Q4 2017 | 157 6 COINDESK
  158. 158. CoinDesk – News, Events, Research and Data for Blockchain Technology State of Blockchain – Q4 2017 | 158 Headquarters: Midtown Manhattan, New York City News: 10m monthly unique visitors Events: 4,000+ attended our 2017 Consensus and Invest conferences in New York City and San Francisco Data: Industry reference points including Bitcoin and Ether prices and Venture Capital and ICO databases Data Source: CoinDesk
  159. 159. About the 'State of Blockchain' For four years, CoinDesk has analyzed the 'State of Blockchain' in our quarterly industry overview reports We cover: - Technical trends within the top open-source developer communities - Major product updates from well-funded startups - Digital currency market data, utilization rates, public sentiment and network performance metrics - Enterprise adoption rates and new proofs-of-concept - Venture capital, corporate, and public investment trends - Public policy updates from around the globe State of Blockchain – Q4 2017 | 159 Data Source: CoinDesk
  160. 160. About CoinDesk.com State of Blockchain – Q4 2017 | 160 - Find out more at www.coindesk.com - Follow us on Twitter: @CoinDesk - Subscribe to our email newsletters for the latest blockchain news - If you have data you think should be included in future 'State of Blockchain' reports, email stateofblockchain@coindesk.com - We also welcome any general feedback you have on the report Data Source: CoinDesk
  161. 161. CoinDesk Events State of Blockchain – Q4 2017 | 161 - We are the leading events firm in blockchain - Our annual Consensus events have attracted thousands of entrepreneurs, investors, executives, regulators, journalists and more to San Francisco and New York City - Join us in May for our next event, Consensus! Data Source: CoinDesk
  162. 162. State of Blockchain – Q4 2017 | 162 6A RESEARCH FRAMEWORK
  163. 163. Defining The Blockchain Technology Market A public blockchain is an internet protocol that manages the distribution of provably unique data that: - Acts as a unit of account for transactions on that ledger - Incentivizes early adopters and developers to use, support and verify the ledger without the need for a trusted intermediary An enterprise blockchain is a distributed ledger that provides: - Consensus via trusted intermediaries, making digital currencies unnecessary - Solutions to clients who wish to use cryptographic databases managed and shared by trusted parties Many companies employ hybrid models where they: - Build on public blockchain infrastructure - Provide technology for permissioned networks State of Blockchain – Q4 2017 | 163
  164. 164. The Internet-Intranet Comparison We believe both public and enterprise blockchains have useful applications, much like the Internet and corporate intranets ENTERPRISE BLOCKCHAINSPUBLIC BLOCKCHAINS public (inter-) The internet private (intra-) Intranets & IT State of Blockchain – Q4 2017 | 164
  165. 165. The State of Blockchain Focuses Primarily on Public Blockchains; Enterprise Data is More Opaque The majority of development work to date has been done using open-source tools and public blockchains like bitcoin and ethereum ENTERPRISE BLOCKCHAINSPUBLIC BLOCKCHAINS public (inter-) The Internet private (intra-) Intranets & IT State of Blockchain – Q4 2017 | 165
  166. 166. ‘Public’ (Open) vs ‘Enterprise’ (Permissioned) Blockchains: Generalized Features Comparison Data Sources: Chain, Chris Skinner’s blog ACCESS Open read and write Permissioned write and/or read SPEED Slower Faster SECURITY Open network Approved participants IDENTITY Anonymous or pseudonymous Known identities ASSET Native assets Any asset PUBLIC ENTERPRISE State of Blockchain – Q4 2017 | 166
  167. 167. Strengths and Weaknesses of Public Blockchains Data Sources: Ethereum, MultiChain Notes: Ledgers and protocol rules may be changed via forks, although these changes can introduce risks We believe public blockchains will have the greatest impact on developing economies (reduced need for trust) and the connected device, IoT economy (immutability, auditability) STRENGTHS WEAKNESSES Irreversible transactions Slow transaction clearing (e.g., 3 – 7 transactions / second) More vulnerable to attacks (e.g., 51%, spam, DDoS) Reduced privacy Energy consumption Immutable ledger Relatively fast settlement time (e.g., 10 minutes or less) Reduced security risks associated with centralization-trusted third party Easy to audit Reduced need for trust State of Blockchain – Q4 2017 | 167
  168. 168. Blockchain Ecosystem Breakdown When producing market maps and following investment trends, we look for business shifts between these models: Notes: Numerous protocols are also maintained by open source communities, non-profits like the Ethereum Foundation and consortiums like R3 and Hyperledger The company layer crosses protocols and is heavily comprised of bitcoin related businesses, while the application layer is dominated by ethereum applications PROTOCOL APPLICATION COMPANY PUBLIC ENTERPRISE State of Blockchain – Q4 2017 | 168
  169. 169. Blockchain Project Funding Models ICOs rather than VC has driven the development of most public blockchain applications, as well as numerous protocols and companies, a line which is becoming increasingly blurred State of Blockchain – Q4 2017 | 169 Entrepreneurs have begun considering blockchain token sales ('ICOs') as fundraising alternatives to traditional venture capital and angel investment PROTOCOL APPLICATION COMPANY HYBRID VCICO Notes: Numerous protocols are also maintained by companies like the Zerocoin Electric Coin Company, open source communities, non- profits like the Ethereum Foundation and consortiums like Hyperledger
  170. 170. Disclaimer State of Blockchain – Q4 2017 | 170 CoinDesk makes every effort to ensure the information used these slides is accurate and up to date. We cannot, however, accept responsibility for any loss or inconvenience caused by reliance on the material contained here. This presentation does not constitute financial advice or an investment recommendation in any way whatsoever. It is recommended you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions. CoinDesk is owned by Digital Currency Group, one of the most active investors in the bitcoin and blockchain technology industry. Many DCG investments are referenced in this report, and a full list can be reviewed at www.dcg.co. CoinDesk is run as an independent entity, and its editorial team does not give preferential treatment to DCG investments when they are referenced in research reports or news posts. Numerous DCG portfolio companies are referenced in this report.

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