9. Frictional Quantum ™
• Management
• Level of Streamlining in the Peer-to-Peer
Setup
• Friction to Buy the Token
• Friction to Sell the Token
• Security Audit
• Network User Volume and Growth
• Competition Level
10. Impact of Decentralization
Does decentralization of data and program logic
have any impact?
What is the platform’s data storage
and availability?
Does it leverage a highly networked
blockchain infrastructure?
13. For 6000 years consensual exchange has relied on
centralized institutions (which leads to
corruption, fraud and theft)
Blockchain
14. These 5 billion people cannot engage in large-scale
entrepreneurship because they are disconnected from
the information. Legal network would allow them to:
• Combine and partition their holdings into valuable wholes
• Pledge their holdings against investment and credit
• Use them as credentials for civic purposes and to access
public services
15. Turning rights into formal title takes years + hundreds of
bureaucratic steps and bribes
16. This has led to several deadly global problems:
Alienation and terrorism: not defended by the rule of
law, some accept the protection offered by terrorists
and racketeers who – at gunpoint – expect in return
shelter, taxes and recruits
17. If, instead, we surface their informal ledgers
• The terrorists switch sides
• Capital is unleashed in a widely distributed manner
• Entrepreneurs can go to work lifting the population
of poverty.
I am going to talk a little bit about what we do. We are a fund that does Angel Investing. We look at sectors like Cryptos and Blockchain, and we also look at Real Estate.
We sit as panelist who vets the ideas in the Silicon Valley VC funds, and then we conduct our due diligence. We also maintain a data center and a commercial building space in the heart of Phoenix downtown that is going through revitalization and urbanization by the city. Arizona is the first state in the USA to approve a Fintech Sandbox allowing companies to experiment in Fintech.
The most interesting trends are in the emerging markets and frontier market space.
The statistics arehumongous:
7.5 billion people on earth
2.5 billion people are globalized
5 billion people are unglobalized (many of the 90 million Filipinos belong here)
2.5 billion people are unbanked
There were 5 billion cell phone users in 2017.
2.5 billion people are unbanked. ATM machines have such huge fixed cosst that transferring small sums will cost too much transaction fees. However, micropayments in the form of digital currency certainly hold a lot of promise.
3 Billion people are in the Social Network, 4 Billion people are on the internet
We like to look at the level of Streamlining.
What is the impact of removing the intermediaries to the ecosystem?
How many levels of intermediaries are removed?
How well are the “buyers” and “sellers” matched on the network?
Are the barriers to communicaion removed to make transactions clear, smooth, quick?
We like to look at the amount of friction to buy a token.
What is the availability?
What is the demand?
How quickly are purchased tokens available after purchase for use or resale?
How can we globalize the un-globalized?
These 5 billion people do own assets
Branded Cows in Tanzania, Land, Peruvian Forests, Goats in Afghanistan, Carabaos in the Philippines
They exist in informal ledgers passed down from generations
However, turning rights into formal title takes years + hundreds of bureaucratic steps and bribes
If you are in a place like Guatemala and try to take title it can take literally 217 steps and 30 years. That means 217 paid bureaucrats and it essentlally does not happen.
If you are in a place like Guatemala and try to take title it can take literally 217 steps and 30 years. That means 217 paid bureaucrats and it essentially does not happen.
I
1849 California gold rush. There were 150 mining camps. People will nail maps on the trees to stake the claim and keep the ledger. A guy will keep the ledger. Then years later, the judges and lawyers got together, formalized them under the laws of the State of California.
After WW2, General MacArthur took all these feudal land and title arrangements and turned them into real title.
Peru is one of the best examples of using informal ledgers to lift Peruvians out of poverty.
Hernando de Soto (or Hernando de Soto; born 1941) is a Peruvian economist known for his work on the informal economy and on the importance of business and property rights. Peru is one of the fastest growing GDP nation in Latin America. In the 1990s, there was a terrorist group in Peru called the Shining Light. With the government’s permission, he got millions of farmers to submit their informal ledgers. Within 6 months, the terrorists collapsed. Surfacing the un-globalized ledgers liberated entrepreneurs and growth. In Peru, 340 thousand new businesses were formed.Peru became Latin America’s hidden growth story.
The main message of de Soto's work and writings is that no nation can have a strong market economy without adequate participation in an information framework that records ownership of property and other economic information.[15] Unreported, unrecorded economic activity results in many small entrepreneurs who lack legal ownership of their property, making it difficult for them to obtain credit, sell the business, or expand. They cannot seek legal remedies to business conflicts in court, since they do not have legal ownership. Lack of information on income prevents governments from collecting taxes and acting for the public welfare.
Reforms in Peru gave entrepreneurs and farmers control over their assets and a new, more accessible legal framework in which to run businesses, spurring a rise in living standards. From 1992 to 2012, Peru’s gross national product per capita grew twice as fast as the average in the rest of Latin America.
Ethiopia is using the Cardano Platform to explore using Blockchain to track the supply chain of Coffee Exports
Let us take a look at applying blockchain to the Land Grabbing Problem in the Philppines. As many as two-thirds of civil cases pending in Philippine’s courts deal with land related disputes, most of which revolve around establishing ownership. The existing legal framework, based on the system of “presumptive ownership”, lends itself to litigation as land and property undergo several mutations over generations that are not always captured on public records. Moreover, data related to a specific parcel of land is stored in silo’ed government departments, and in formats that vary substantially from one state to another. Access to these records is time- and cost-intensive, as they involve frequent visits and bureaycratic steps to government agents.
The blockchain offers a potential alternative. The independent computers that run Bitcoin’s decentralized network busily update and maintain an ever-growing public ledger of transactions. They repeatedly reach a consensus on changes and thus are constantly vouching for the ledger’s integrity. Information on new transactions is built on top of all preceding records in a precise, time-stamped, interlinked manner, which means anyone who tampers with past data will distort all other latter records and so expose their fraud. It is this permanance and incorruptability, combined with the fact that it is completely open and uncontrolled, that makes this new recordkeeping methodology so seductive. And the distributed nature of the blockchain ledger, which resides simultaneously on multiple computers, makes it far more secure than a centralized database. All these features make it possible for individuals to confidently and securely use the blockchain to make direct asset exchanges without relying on third-party intermediaries such as banks, lawyers, or notaries.
The land is the most valuable asset in most countries especially Philippine since the past up to now. However, the major problem in the Asian land sector is the documentation. There is hope after experts from blockchain technology explained how it offers a solution to this problem. The poor documentation that fails to show the landowner has led to land problems which have led to death or displacement of individuals. Where records are there, there are possibilities of them being tampered with by self-centered people. The only solution to the problem is using blockchain method to keep the records.
