Ecommerce class of the Georgia Tech MBA program - guest lecture by Tony Gallippi titled "What is Bitcoin?"

1. WHAT IS BITCOIN?
Tony Gallippi
CO-FOUNDER OF BITPAY
@tonygallippi @bitpay

2. What is Bitcoin?
PROTOCOL LEDGERNETWORK ASSET

3. Asset Protocol for the Internet
AVAILABLE GLOBALLY
Any web browser or internet enabled device
INDEPENDENT FROM ANY NATION STATE
Similar to Gold, Oil, Water
DESIGNED FOR THE INTERNET
Digital cash for small amounts

4. Types of Networks
CENTRALIZED DECENTRALIZED DISTRIBUTED

5. Who created Bitcoin?
NOVEMBER 2008
White Paper is published by “Satoshi
Nakamoto”
JANUARY 2009
Code released version 0.1 beta
JUNE 2011
Satoshi retires

6. What Makes it Work?
DISTRIBUTED COMPUTING
“THE HASHRATE”
DISTRIBUTED CREATION
“THE REWARD”
DISTRIBUTED LEDGER
“THE BLOCKCHAIN”
1 trillion times
increase in
7 years

7. Blockchain Database Technology
Single, Global Source of Truth
- Eliminates Reconciliation
- Eliminates Redundancy
- Eliminates Disagreements
- Full Transparency
- Independently verifiable
Tamper-proof
Useful for digital property rights

8. Distributed Data Centers
All agree on consensus rules
- verifying a block
- publishing a block
Compete for efficiency
- hardware, bandwidth, electricity
100x more powerful than all of Google
Get paid in newly issued bitcoin

9. Open, Public Ledger
blockchain.info
insight.bitpay.com

10. What Makes it Work?
DISTRIBUTED COMPUTING
“THE HASHRATE”
DISTRIBUTED CREATION
“THE REWARD”
DISTRIBUTED LEDGER
“THE BLOCKCHAIN”
1 trillion times
increase in
7 years

11. How’s it Going?
2500 TPS
110 TPS
7 TPS
1 TPS
Network Transactions Per Day

12. Can it Scale?
BITCOIN NETWORK - BLOCK SIZE GROWTH
1 MB
BLOCK SIZE LIMIT
226 BYTES
MEDIAN TRANSACTION SIZE

13. Developing Fee Market
BITCOIN NETWORK - FEES PER DAY ($)
$1.00

14. Scaling Options
“Just Make the Blocks Bigger” “Build Layer 2 Solutions”

15. Price History
bitcoin

16. Price History

17. Local Exchange Markets in Every Country
bitcoincharts.com
localbitcoins.com

18. Venture Capital Investment

19. Bitcoin is Complementary to Credit & Debit Cards
BITCOIN OUTPERFORMS
Cross-border payments
Internet payments
Micropayments < $10
Macropayments > $1,000
NEW POSSIBILITIES
Multi-user payments
Streaming payments
IoT payments
SWEET-SPOT FOR CARDS
Domestic consumer spend
In person payment
$10-$1,000
Recurring payments
Customer loyalty

20. Opt-out of Big Data

21. Who uses Bitcoin?
Age 13-45
Mostly Male
College Educated
Technology Savvy
International Travel

22. The Global Leader
In Bitcoin Payments
@bitpay

23. SAN FRANCISCO
ATLANTA
AMSTERDAM
BUENOS AIRES
TUCUMAN
May 2011
BITPAY FOUNDED
38
EMPLOYEES WORLDWIDE
$32,700,000
CAPITAL RAISED
Index Ventures
Founders Fund
Horizons Ventures
RRE Ventures
Felicis Ventures
TTV Capital
Richard Branson
Jerry Yang
International Sales and Support

24. In the News

25. Trusted by Industry-Leading Companies

26. Vision for Product and Brand
Have brand awareness among businesses and consumers
Build apps and services using open standards and open networks
APPS
NETWORKS
private
blockchains

27. The Global Leader in Bitcoin Payments
ACCEPTANCE DISBURSEMENTSWALLET APP
Manage digital assetsReceive bitcoin, batch settle to bank Fund batch from bank, disburse bitcoin

28. Bitcoin Payment Demonstration
https://bitpay.com/demos

29. “For us, this is about giving people options and
helping them do more on their devices and in
the cloud. We expect this growth to continue
and allowing people to use bitcoin to purchase
our products and services now allows us to be
at the front edge of that trend.”
Eric Lockhard, Corporate Vice President
Digital Goods & Technology

30. B2B Payments

31. Bitcoin Disbursements
IDEAL CUSTOMERS
- Marketplaces
- International Payroll
- MassPay
- App Stores
- Developer and Affiliate Networks
2300% Growth in Volume
2015 - 2016
Pay directly to billions of potential endpoints globally

32. Remittance and Deposits
Bitcoin is the only fraud-free funding option available globally
LIVE IN PRODUCTION FOR 4.5 YEARS
LIVE FOR STORED-VALUE DEPOSITS

33. 700% growth in monthly gaming
transaction volume
January 2016 - January 2017
Marketplace Purchases
Account Top-Ups
In-Game Purchases
BitPay in Gaming

34. Monthly Transactions
229,674

35. The BitPay Visa®
Debit Card
Load dollars from any bitcoin wallet.
Turn bitcoin into cash.
Spend anywhere Visa®
is accepted.

36. Developed in Argentina
200,000 wallets created since 2014
500% growth in transactions
in the past year.
Open Source Bitcoin
Wallet Platform

37. Run your own wallet server
Run your own block explorer
bitcore.io
Open Source
Infrastructure

38. BitPay integrates Intel’s
trusted execution environment

39. System Guard Extensions
ECDSA key generation
Protected digital signing
Embedded bitcoin wallet
SGX

40. The BitPay App
Your bitcoin experience in one secure,
open source wallet app.

41. Turn bitcoin into dollars with BitPay Card.
Buy Amazon.com gift cards.
Buy and sell bitcoin in-app.
Do More with Bitcoin

42. Secure and Store Bitcoin
Keys stored on device, not in cloud.
A true wallet, not an account.
Users keep full control of their funds.

43. OPPORTUNITIES

44. Bitcoin Ecosystem
THE BLOCKCHAIN
WALLETS SERVICES
MININGEXCHANGES

45. Reaching the World’s Billions
NO COMPUTERCOMPUTER
UNBANKED
NO MOBILE
BANKED
MOBILE PHONE
NO FACEBOOK
NO INTERNET
1 2 3 4 5 6 7
FACEBOOK
INTERNET

46. Remittance Corridors
Need many local
exchanges

47. Emerging Markets
Google search for
“buy bitcoin” in India

48. Bitcoin References
BITCOIN WHITE PAPER
https://bitcoin.org/bitcoin.pdf
BLOCKCHAIN ACTIVITY
https://blockchain.info
BITPAY WALLET
https://bitpay.com/wallet
BITCOIN NEWS
http://coindesk.com