An overview of the #blockchan and #cryptocurrency space today. As told by the Blockchain Realist. What makes a good use case?

1. Cryptocurrencies & Blockchain
True Tales from a Blockchain Realist
April 2018

2. #FollowTheMoney
• Token sales of blockchain are north of $2,000,000,000 in 2017
• CME (12/18) and CBOE (12/10) begin trading Bitcoin futures
• $500M in VC money in 2016
• Bitcoin hit $4,000 $7,300 $10,000 $12,000 $19,000
• 18,000 cryptotokens launched
• The rise of the Crypto-millionaires
• NASDAQ begins trading ETFs
1

4. What is a blockchain?
3
Recorded events (ledger entries) recorded chronologically and
verified by multiple third parties. May be public or private

5. Blockchain Evolution – FinTech Emerges
• 1.0 – Currencies
§ Hardwired to crypto fund transfers. Uni-tasker
• Consensus based
§ 2.0 – Contracts
o Recorded agreements across transactional processes. Multi-tasker
§ 3.0 – Organizing Activity
o Assets are owned and may transact with one another.
o Smart homes, distributed devices in remote areas (E.g., farms)
4

6. What’s in a Blockchain Ledger?
• Rows of information, like a
database
• Validation and verification is
based on mistrust
• Public audit trails, (we’ll talk
about private ones later)
• Record keeping by many third
parties often unknown
5
1. Eye Exam
5/12/2017 Patient
8931
2. Visit on 5/12/2017
3. Need new glasses
4. New prescription
Patient 8931
5. Prescription 99881
filled
6. Follow-up appt
scheduled
6/12/2017
7. Annual Checkup
5/12/2018
1. Eye Exam
5/12/2017 Patient
8931
2. Visit on 5/12/2017
3. Need new glasses
4. New prescription
Patient 8931
5. Prescription 99881
filled
6. Follow-up appt
scheduled
6/12/2017
7. Annual Checkup
5/12/2018
1. Eye Exam 5/12/2017
Patient #8931
2. Office visit on
5/12/2017
3. Need new glasses
4. New prescription
Patient 8931
5. Prescription 99881
filled
6. Follow-up appt
scheduled 6/12/2017
7. Annual Checkup
5/12/2018

7. Bitcoin- Just Three Things
1. The value of a bitcoin is market
reactive (volatile)
- Like stocks
2. Bitcoin transactions are not reversible
- Like cash
3. There are no bitcoins
§ There are only bitcoin transactions
6

8. Why will Blockchains get Adopted?
$7,000
7

9. Why Will Blockchain gain adoption?
8
$400
Ether
• 600,00 transactions per day less than $.50
• There are a total of 18,140 ERC-20 Token Contracts
• High in January of 1.23M per day at $4.15

10. What Makes a Good Case for using Blockchain?
1. Multiple parties share data
§ Multiple participants need views of common
information
2. Multiple parties update data
§ Multiple participants take actions that need to be
recorded and change the data
3. Verify Trust
§ Every participant requires validation of the transactions
and integrity of data written
4. Decentralized
§ No single repository or owner of the repository locations
5. Distributed Ledger
§ Data is written across multiple ledger entries
9

11. What Problem Does Blockchain Solve?
10

12. What Problem Does Blockchain Solve?
11
• Shared
• Replicated
• Immutable
• Consensus
oriented
• Final

13. Is this a Blockchain Use Case?
12
Yes/No
Am I using a
database?
I don’t need a
blockchain
Maybe

14. 13
Trust

15. 14
Distributed

16. 15
Coordination

17. Dependent
16

18. 17
Give us Boring
• Unilever buys
Dollar Shave Club
for $1B – May 2016
• Subscription model

19. Is This a Hammer In Search of a Nail?
• Inter-Company Transfers (manual hand-offs)
§ Insurance
§ Property and title transfers
§ Anything with government as a third party
• Verifiable Record Management
§ Formally physical assets now digital (stocks, currency, prescriptions, vehicles)
• Identity Management
§ Identity and “certificates of trust” for mobile economy companies such as AirBnB
and Uber
§ Reputation
• Smart Contracts
§ The new Software as a Service
18

20. Where are Some Immediate Opportunities?
• Onboarding
§ Costs
§ Opportunities
§ Churn in the industry
• Fraud Detection
§ Estimates show that 5 – 10% of non-healthcare claims are fraudulent.
Identity resolves tracking the information
• Disaster recovery
• Identity
• Micropayments
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#FollowTheMoney

21. Other Questions To Ask
• Does this blockchain have an earnable token?
#FollowtheMoney
• How will we get data into the blockchain?
• Does this require a consortium to agree to its use?
• How will we analyze the data?
• Does it perform at the speed of business?
20

22. Barriers/Opportunities
• Regulators want to address single entities and not networks
• Too many use cases where everyone must participate
• Hot potato of risk
§ Last one holding it, gets stuck with the check
• Personally Identifiable Information (PII, PHI, PCI)
§ Right to be forgotten
§ Where is the data shared/stored
§ Keep the data only for as long as necessary
21

23. Pithia Snapshot
Headquarters Redmond, Wa
Founded 2017
Current Fund Size 80M CrytoTokens ~$170M USD
Fund Size Catena Fund One -$20M
Number of Funds Catena Fund One (Active)
Fund Two & Three (Planning cycle)
Target Industries • Blockchain-enabled services
• Financial Services (non-crypto)
• Hi-Tech
• Media & Entertainment
• Healthcare
Geographies • North America (primary focus)
• No limit
Investment/Deal Style • Significant minority (10 – 15% equity)
• Board and Operational Support
Key Investment Criteria • Foundational to the blockchain ecosystem
• Growth oriented
• Transformational in their industry
Website www.pithia.com
Contact Lawrence.Lerner@pithia.com 22
Select Portfolio Companies
lifeID lifeID was founded with the
vision that every person in the
world deserves to own and
control their identity.
TBA
Pithia Overview
Pithia invests in new companies developing blockchain-based
businesses, existing blockchain companies adding RChain, and
software companies, foundations, and enterprises extending their
products and business models with blockchain..
We seek out businesses that are ”tilling the soil and planting seeds”
in the overall ecosystem and in select industries. Building strong
foundations enable longer term more aspirational endeavors.

24. Thank You!
Lawrence I Lerner, CEO
Lawrence.lerner@pithia.com
www.pithia.com
Twitter: @RevInnovator

25. Why separate the Blockchain from
Bitcoin
• Common vocabulary
§ The blockchain – The underlying ledger
solution for Bitcoins
§ A blockchain – The technology
solutions that solve distributed record
keeping
§ Distributed Ledger Transactions (DLT) –
Consensus based transactions
§ Proof of Work
§ Proof of Stake
24Byzantine General Scenario