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6 KEY FACTORS AND 5 DISRUPTIVE
IMPLICATIONS OF BLOCKCHAIN
TECHNOLOGY
Spencer Bogart
Feb 2016
AUDIENCE
 Investors: Invested or interested in investing in the
space
 Startup: Working in the blockchain space
 Enterp...
BRIEF BLOCKCHAIN INTRO
 Backbone of Bitcoin
 Distributed Ledger
 Disintermediating technology
FACTOR: PEER-TO-PEER
 Direct Exchange
 Blockchain is new infrastructure
 Blockchain is the Occam’s Razor of Commerce
FACTOR: TRUST-MINIMIZED (“TRUSTLESS”)
 Minimizing points of required trust
 De-risking value exchange
FACTOR: OPEN-SOURCE
 “The Best way to have a good idea is to have lots of
ideas” – Linus Pauling
 High-stakes markets em...
FACTOR: PUBLIC & PERMISSIONLESS (OPENNESS)
 Permissionless innovation: probabilistically superior
model for creating netw...
FACTOR: ANTI-FRAGILITY
 A product of openness
 “anti-fragility goes beyond resilience or robustness.
The resilient resis...
FACTOR: NETWORK EFFECT
 4-sided network effect
 All growing, but especially where it matters
4 SIDED NETWORK EFFECT: SECURITY
4-SIDED NETWORK EFFECT: DEVELOPERS
Source: Coinbase
4-SIDED NETWORK EFFECT: MERCHANTS
Source: CoinDesk
4-SIDED NETWORK EFFECT: CONSUMERS
Source: Blockchain.info
IMPLICATION: DISINTERMEDIATION
 Redefining roles of intermediaries
 Balance of power shifting
 Blockchain raises the bar
IMPLICATION: VIRAL ENTERPRISE ADOPTION
 Accelerated cycle
 Incentive to promote
 First mover advantage
IMPLICATION: BOOST TO ECONOMIC
ACTIVITY AND EFFICIENCY
 Value exchange is the cornerstone of economy
 Enabling new oppor...
IMPLICATIONS: BILLIONS GET CONNECTED
 The value of the un(der)banked
 Blockchain to incorporate billions into digital
ec...
IMPLICATION: PRO-INDIVIDUAL
EMPOWERMENT
 People in control of their wealth
 Opportunity to engage and transact freely
THANK YOU
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Spencer Bogart Needham

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Spencer Bogart of Needham & Company provides a high level overview of blockchain technology and why it has promise.

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Spencer Bogart Needham

  1. 1. 6 KEY FACTORS AND 5 DISRUPTIVE IMPLICATIONS OF BLOCKCHAIN TECHNOLOGY Spencer Bogart Feb 2016
  2. 2. AUDIENCE  Investors: Invested or interested in investing in the space  Startup: Working in the blockchain space  Enterprise: Already implementing or considering implementing blockchain technology into your business  Learner/Exploratory phase: Came to learn about blockchain technology
  3. 3. BRIEF BLOCKCHAIN INTRO  Backbone of Bitcoin  Distributed Ledger  Disintermediating technology
  4. 4. FACTOR: PEER-TO-PEER  Direct Exchange  Blockchain is new infrastructure  Blockchain is the Occam’s Razor of Commerce
  5. 5. FACTOR: TRUST-MINIMIZED (“TRUSTLESS”)  Minimizing points of required trust  De-risking value exchange
  6. 6. FACTOR: OPEN-SOURCE  “The Best way to have a good idea is to have lots of ideas” – Linus Pauling  High-stakes markets emphasize security  Debate is healthy
  7. 7. FACTOR: PUBLIC & PERMISSIONLESS (OPENNESS)  Permissionless innovation: probabilistically superior model for creating network value  Minimize barriers to entry, users, and adoption
  8. 8. FACTOR: ANTI-FRAGILITY  A product of openness  “anti-fragility goes beyond resilience or robustness. The resilient resists shocks and stays the same. The anti-fragile gets better”  Evaluate: Exposure to shocks & response to shocks
  9. 9. FACTOR: NETWORK EFFECT  4-sided network effect  All growing, but especially where it matters
  10. 10. 4 SIDED NETWORK EFFECT: SECURITY
  11. 11. 4-SIDED NETWORK EFFECT: DEVELOPERS Source: Coinbase
  12. 12. 4-SIDED NETWORK EFFECT: MERCHANTS Source: CoinDesk
  13. 13. 4-SIDED NETWORK EFFECT: CONSUMERS Source: Blockchain.info
  14. 14. IMPLICATION: DISINTERMEDIATION  Redefining roles of intermediaries  Balance of power shifting  Blockchain raises the bar
  15. 15. IMPLICATION: VIRAL ENTERPRISE ADOPTION  Accelerated cycle  Incentive to promote  First mover advantage
  16. 16. IMPLICATION: BOOST TO ECONOMIC ACTIVITY AND EFFICIENCY  Value exchange is the cornerstone of economy  Enabling new opportunities & creating efficiency  Blockchain is new pipes for value exchange
  17. 17. IMPLICATIONS: BILLIONS GET CONNECTED  The value of the un(der)banked  Blockchain to incorporate billions into digital economy
  18. 18. IMPLICATION: PRO-INDIVIDUAL EMPOWERMENT  People in control of their wealth  Opportunity to engage and transact freely
  19. 19. THANK YOU

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