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Bitcoin & Blockchain for Friends

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On the 15th of November I spoke for my favourite audience in the world, friends and family! Ever since I became a speaker on Bitcoin and the Blockchain, some of them have asked me when they could attend a presentation to see and hear what it is all about. So I decided to host something myself and some friends invited their friends too. I had a great evening, thanks everyone!

Published in: Economy & Finance

Bitcoin & Blockchain for Friends

  1. 1. @SDWOUTERS Bitcoin & Blockchain For Friends
  2. 2. Speaker on Bitcoin & Blockchain Digital Transformation Consultant at Duval Union Consulting @sdwouters Sam Wouters
  3. 3. ‣ We are a digital consulting company. ‣ Founded in 2009 as DearMedia. ‣ We work for large European clients. ‣ We have a strong vision on the impact of digital and act accordingly. ‣ We are advisors, writers, coaches and entrepreneurs.
  4. 4. I explain to people why Bitcoin & Blockchain matter, how they work and what we can do with them @SDWOUTERS
  5. 5. @SDWOUTERS One of many DISRUPTIVE PLAYERS
  6. 6. @SDWOUTERS “bitcoin is digital money” Who has heard of Bitcoin before today? Positive image? Negative image? Who fundamentally understands Bitcoin?
  7. 7. @SDWOUTERS Media that predicted The Death of Bitcoin Deaths by publication: DailyPaulCNNCity A.M.ChronBroken Librarian BTC Feed Business Insider BloombergAbout.com Acton BizNews.comArduino TronicapenwarrAOL Financial TimesFester’s DenDavid Seaman FortuneForbesFool.com Fusion Gizmodo Australia IEX International Business Times Javamazon Moneygeek MyBroadBandMother Jones News.com.au NewStatesman NY Mag OUI Share The New York TimesThe KernelThe Calculating InvestorStreet Insider Sputnik NewsPYMNTS.com Reuters Robert Nielsen Salon Seeking Alpha The Underground EconomistThe Telegraph The Washington Post The Weekly Standard USA Today Valley News VICE News Wired YahooWall Street Daily bitcoinobituaries.com
  8. 8. "Don't forget that the millions of people all over the world who are now part of the Bitcoin network were once very strong skeptics. This includes people with decades of experience in network security and cryptography." ~Andreas Antonopoulos @SDWOUTERS
  9. 9. @SDWOUTERS A Quick Introduction To Bitcoin & Blockchain
  10. 10. @SDWOUTERS Invented in 2008: a system to eliminate 
 the need for “trusted” third parties bitcoin.org/bitcoin.pdf
  11. 11. @SDWOUTERS ? ? ? ? ? ??
  12. 12. @SDWOUTERS The first thing bought with 10.000 Bitcoins in 2010
  13. 13. @SDWOUTERS Bitcoin’s best days must be over! Is worth over 
 €6 Million today at €600 per BTC
  14. 14. So much value, all for shady digital money?
  15. 15. @SDWOUTERS Bitcoin challenges your understanding of money
  16. 16. Banks: Bitcoin can’t work, It’s all about the Blockchain
  17. 17. @SDWOUTERS What’s the difference? Bitcoin is a way to digitally transfer ownership without a middleman The blockchain is a database that records ownership through time
  18. 18. A 5 minute explanation won’t make 
 you understand why they matter
  19. 19. @SDWOUTERS WHAT can we do with them? HOW do they work? WHY do Bitcoin & Blockchain exist?
  20. 20. @SDWOUTERS WHY do Bitcoin & Blockchain exist?
  21. 21. @SDWOUTERS Why do digital money transfers take days?
  22. 22. @SDWOUTERS Why are digital money transfers expensive? 9% FEE?
  23. 23. @SDWOUTERS Financial innovation is held back by rules and regulations@SDWOUTERS
  24. 24. @SDWOUTERS But this is innovation!
  25. 25. Say that to the 40% unbanked adults worldwide…
  26. 26. And to the people who pay 5-25% money transfer fees @SDWOUTERS
  27. 27. @SDWOUTERS If you want to send money you have to WAIT PAY
  28. 28. @SDWOUTERS Yet we can do THIS? @SDWOUTERS
  29. 29. @SDWOUTERS@SDWOUTERS Bitcoin is about more than global payments
  30. 30. We have more debt than can EVER be repaid
  31. 31. @SDWOUTERS Income inequality keeps growing
  32. 32. @SDWOUTERS Nations have gold reserves that don’t exist “There hasn’t been a comprehensive audit of Fort Knox in over 60 years.”
  33. 33. @SDWOUTERS Currencies are not backed by anything
  34. 34. @SDWOUTERS Leading to unprecedented money printing
  35. 35. @SDWOUTERS The money in your bank loses value Inflation Interest>
  36. 36. @SDWOUTERS Soon you’ll be PAYING banks so they can 
 do risky investments with your money
  37. 37. @SDWOUTERS If finance is so messed up why don’t we fix it?
  38. 38. @SDWOUTERS Governments are not in charge in the financial world Governments Corporates Banks National central banks International central banks Central bank of central banks Regulation
  39. 39. Resulting in "cosy" relationships between financial businesses and regulators @SDWOUTERS
  40. 40. @SDWOUTERS Banks won’t stop messing around
  41. 41. Resulting in "cosy" relationships between financial businesses and regulators. @SDWOUTERS We are fighting a never ending flood
  42. 42. @SDWOUTERS HOW do they work? WHY do Bitcoin & Blockchain exist?
  43. 43. @SDWOUTERS Fundamentally different Transactions Security
  44. 44. @SDWOUTERS Transactions Security
  45. 45. @SDWOUTERS Money is sent directly between two parties
  46. 46. @SDWOUTERS Transactions are synchronised through the network
  47. 47. The blockchain is a global “bookkeeping” system It records who owns what, and when @SDWOUTERS
  48. 48. Anyone can own a copy of the Blockchain @SDWOUTERS
  49. 49. @SDWOUTERS How do we Record transactions so nobody can change them?
  50. 50. @SDWOUTERS Transactions Security
  51. 51. @SDWOUTERS Problems Solutions Central point of failure Decentralized network Expensive to secure Shared security cost Trust who is in charge Trust a fixed set of rules Centralized All organizations
  52. 52. @SDWOUTERS Problems Solutions Central point of failure Decentralized network Expensive to secure Shared security cost Trust who is in charge Trust a fixed set of rules Decentralized The Internet & Bitcoin Centralized All organizations
  53. 53. The Blockchain is secured by computing power from people and companies all over the world @SDWOUTERS
  54. 54. @SDWOUTERS In return for their work, the miners
 earn new bitcoins and transaction fees
  55. 55. …These “miners” verify the transactions and 
 add them to the next block in the Blockchain
  56. 56. @SDWOUTERS When you change a transaction 
 the link to that block changes as well
  57. 57. @SDWOUTERS The network will know that your version 
 has been messed with and reject it
  58. 58. @SDWOUTERS You then need to create a blockchain with more computer power than the entire network combined
  59. 59. The network is 20.000 times stronger than the top 500 supercomputers in the world
  60. 60. @SDWOUTERS Who decides what everyone does with their computer? Problems Solutions Central point of failure Decentralized network Expensive to secure Shared security cost Trust who is in charge Trust a fixed set of rules Decentralized The Internet & Bitcoin
  61. 61. It started from the base code, ever since improvements have been proposed by developers around the world bitcoin.org/bitcoin.pdf … github.com/bitcoin/bips
  62. 62. @SDWOUTERS If the vast majority of the network agrees, the code can be changed
  63. 63. @SDWOUTERS What does this technical stuff mean for me?
  64. 64. Send & receive payments anywhere in the world Nobody can stop it
  65. 65. Bitcoin is open to anyONE 
 without identification or authentication @SDWOUTERS
  66. 66. @SDWOUTERS Governments and banks dislike… because they have less control over us. They can't track what 
 we do with it, so people can 
 use it for illegal activities. CASH because they have no control. They can track exactly what we do with it, but we would also see what they do… BITCOIN
  67. 67. Which is exactly what happened theguardian.com/us-federal-agent-investigating-silk-road-admits-800000-bitcoin-theft
  68. 68. What criminal leaves permanent evidence? @SDWOUTERS
  69. 69. @SDWOUTERS Should we have forbidden these too 
 because criminals can use them? Technology always reflects society
  70. 70. Anyone can develop new applications for Bitcoin, without permission
  71. 71. @SDWOUTERS internetlivestats.com/internet-users/ The same force driving internet innovation for 20 years
  72. 72. @SDWOUTERS Creates huge value for consumers, economic growth, jobs
  73. 73. @SDWOUTERS Abra: Mobile banking with Uber-style exchange goabra.com
  74. 74. I don’t really need Bitcoin Until your life is international
  75. 75. Transferred money with a large fee or terrible exchange rate? Have you ever… Tried to understand why these transfers take days? Paid fees or exchange rates at ATM’s or with your card abroad?
  76. 76. Have you ever been to a country where the majority of the population is unbanked?
  77. 77. Have you ever met people who cannot 
 use their debit or credit cards abroad?
  78. 78. Exchanged money on the black market?
  79. 79. Returned home with leftover foreign currency?
  80. 80. @SDWOUTERS Dealt with currency controls?
  81. 81. Or Hyperinflation?
  82. 82. @SDWOUTERS Soon you’ll be PAYING banks so they can 
 do risky investments with your money
  83. 83. @SDWOUTERS Perhaps you & your country don’t really need it…
  84. 84. But it will help the world 
 a lot if Bitcoin succeeds.
  85. 85. @SDWOUTERS WHAT can we do with them? HOW do they work? WHY do Bitcoin & Blockchain exist?
  86. 86. @SDWOUTERS Sending money 0.00000001 BTC1 BTC
  87. 87. @SDWOUTERS Bitcoin has been running non-stop for 7+ years 160M 434K $150M $105B Transactions Blocks in the blockchain in transactions per day currently Transferred over the blockchain 466M 16M $11B 160K bitcoins transferred over the blockchain Amount of Bitcoins that currently exist Value of all bitcoins companies (indirectly) accept bitcoins
  88. 88. Money is the 
 tip of the iceberg
  89. 89. @SDWOUTERS Logical Evolution INTERNET Transfer information BLOCKCHAIN Transfer ownership TEXT IMAGES PROGRAMS VIDEOS MONEY CONTRACTS PATENTS ASSETS
  90. 90. @SDWOUTERS “Blockchain could disrupt everything”
  91. 91. @SDWOUTERS THE BLOCKCHAIN is an inefficient database 10 100 1000 10000 7 185 24000 Transactions per second
  92. 92. Imagine a massive decentralized Dropbox synchronizing 24/7
  93. 93. But all these banks are investing in blockchains!
  94. 94. @SDWOUTERS 3 Immutability 5 Open innovation 1 Censorship resistance 2 Decentralization 4 Open access Banks/governments won’t 
 replicate the BlockchainOpen Editability 3 Centralization 4 Interoperability 1 Business innovation 5 Permissioned access 2 Private
  95. 95. @SDWOUTERS The open Blockchain 
 will create the most value The Blockchain The Internet “Private” Blockchains Intranets >
  96. 96. If Bitcoin is so great, 
 why isn’t everyone using it? @SDWOUTERS
  97. 97. @SDWOUTERS ‣ Bitcoin is only 7 years old, it still needs a lot of development.
 ‣ We have never tried THIS before and it is about MONEY, not info.
 ‣ It’s like the Internet in the 90s: 
 ‣ People don't get it. ‣ It looks ugly. ‣ We have few use cases. ‣ People don’t see how it will change the world. ‣ Those who are disrupted by it will do everything to stop it. ‣ Mainstream 10 years later ‣ Mass adoption 20 years later
  98. 98. Some links to help you get started with Bitcoin Get a wallet: (and make a backup!) • Circle Pay / Coinbase / Mycelium (Android) • Circle Pay / Coinbase / Breadwallet (iOS) • Copay / MultiBit HD (Desktop) • Circle Pay / Coinbase / Xapo (Web) • Trezor / Ledger Nano S (Hardware) Get bitcoins: • coinbase.com • bitstamp.net • bitonic.nl
 Following the bitcoin price: • bitcoinwisdom.com Following Bitcoin news: • reddit.com/r/bitcoin • bitcoinmagazine.com Bitcoin payment processing for businesses: • bitpay.com • coinbase.com Bitcoin statistics: • blockchain.info Bitcoin white paper & info: • bitcoin.org • circle.com • bitwage.com • localbitcoins.com
  99. 99. Thanks! 
 Want to learn more? @sdwouters WWW samwouters.com sam.wouters@duvalunion.com

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