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Discover Blockchain
“WHAT IT IS” AND HOW EVERYTHING COULD BE DIFFERENT
Mark Mueller-Eberstein
Rutgers University
The Innovation Economy Institute
CEO of Adgetec Corporation
@MarkMEberstein
WeChat: MarkMEberstein
“Every inefficiency in a system will
be removed (by technology)
sooner or later.”
Mark Mueller-Eberstein
Mark Mueller-Eberstein & Adgetec Corporation
Mark Mueller-Eberstein & Adgetec Corporation
What differentiates
Winners from Losers?
Low IT Capability Maturity HIGH IT Capability Maturity
Mark Mueller-Eberstein & Adgetec Corporation
Mark Mueller-Eberstein & Adgetec Corporation
“Top Companies in 2007”
Low IT Capability Maturity HIGH IT Capability Maturity
Mark Mueller-Eberstein & Adgetec Corporation
“….. And where they are in 2016”
Low IT Capability Maturity HIGH IT Capability Maturity
The trick is being open to changing your mind, and
more importantly, knowing when to do so.
George Bernard Shaw
“Those who
cannot change
their minds cannot
change anything."
©Mark Mueller-Eberstein & Adgetec Corporation
Of the 7 billion people in the world…
7
6
5
4
3
2
1
0
Cell phonesToothbrushes
Unitsinbillions
Mark Mueller-Eberstein & Adgetec Corporation
But only 20%
(1.4B) have
currently
access to
the banking
system
Mark Mueller-Eberstein & Adgetec Corporation
At least $1.7 trillion in “inefficiencies”
up for grabs…
The Economist, 2014
And that is only the banking
system…
Think any kind of transaction and
related services…
Mark Mueller-Eberstein & Adgetec Corporation
… for example….
 Records of estates
 Records of shares
 Any financial transaction
 Voting
 Domain control (DNS)
 Central Trust (“Escrow”) for any kind of deals
 Messaging (“signed and unchangeable”)
 IP management
 …
Mark Mueller-Eberstein & Adgetec Corporation
The more you learn, the more opportunity you will
see.
Nobody knew in early 1990s what the Internet was
or would lead to.
Milton Friedman: “Eventually, there will be a digital
value system beyond the nation state.”
Mark Mueller-Eberstein & Adgetec Corporation
“Innovation requires
learning through mistakes”
“Technology decisions
are driven by
business requirements”
How leading business prioritize:
Mark Mueller-Eberstein & Adgetec Corporation
Blockchain
 Blockchain is like the Internet
(it changed everything)
 The implications for traditional
financial services are massive
 The end of banks?
 The end of central banks?
 Big implications for regulators.
Mark Mueller-Eberstein & Adgetec Corporation
Blockchain Technology
 Blockchains: Public / Open “Private”
 Some
Blockchains:
 Some
Crypto
Currencies: Mark Mueller-
Eberstein &
Adgetec
Corporation
Blockchain – in 2 minutes
The “technical stuff”…
Networking….
Old school
computing and
business
Changed computing and
business over the last 20 years
Mark Mueller-Eberstein & Adgetec Corporation
Peer-to-Peer (P2P) Networking is everywhere
P2P
(structured &
Unstructured)
File Sharing
•Napster
•BitTorrent
Media
•Spotify
•Popcorntime
•PPLive (TV) Marketplaces
•BitCoin
•“Sharing
Economy”
Cryptography
Storage &
Search
•Minerva
Project
Communication
•Skype
•Google Talk
•I M
Mobile
•WeChat
•WhatsApp
•Line
Messaging as
Payment
E-Commerce
•E-Bay
•AirBnB
•Uber
Defense
•DARPA
High Performance
Computing
•Grid Computing
•HIVE
•SETI@home
Analytics
techniques
exchange
•Chinook
Mark Mueller-Eberstein & Adgetec Corporation
Many commercial or government
services are basically “databases”
that are centrally owned and
managed.
Mark Mueller-Eberstein & Adgetec Corporation
Transactions
are recorded
in a “Ledger”
Mark Mueller-Eberstein & Adgetec Corporation
Central
Control
=
Central
Point of
Failure
Mark Mueller-Eberstein & Adgetec Corporation
Blockchain technology allows a distributed
ledger vs. a centrally managed ledger.
All transactions within a block are recorded and
visible.
And can never be changed (“Immutable”).
Blockchain without a “token” is just a database
Mark Mueller-Eberstein & Adgetec Corporation
Benefits of Blockchain secured
distributed leger vs. central ledger
 Information can be put on block chain
and can never be changed
 Worldwide ledger: IP, land titles, art,...
 Full transparency for every transaction
 "Record every information forever"
Mark Mueller-Eberstein & Adgetec Corporation
Bitcoin vs. Blockchain
 Bitcoin is (currently the best know) usage of
blockchain technology
 One of many digital currencies using
blockchain technology
 Many more uses for blockchain technology
other than “currency”
 Why digital currency is used?
 No need to use exchange (e.g. banks)
for people who know/use Bitcoin
 Direct exchange between individuals is
possible
Mark Mueller-Eberstein & Adgetec Corporation
Bitcoin basics
 Insider: "It feels like when we first developed the
Internet"
 It is a way to transfer value in the Internet
 Bitcoin can not be copied.
First "scarce" digital asset.
 Bitcoin protocol (blockchain) is final piece of
Internet puzzle
 Very early and experimental stage
 As longer as Bitcoin exists, the stronger it gets
 60% of all Bitcoin mining done in China (up from
40% 8 months ago)
 New block created every ten minutes
Mark Mueller-Eberstein & Adgetec Corporation
How “real” is Bitcoin?
... Most virtual believe might be "love"
Virtual goods are as real as people believe in them...
There is very little “real money”. Most are “0s””1s”
on some bank’s database
Mark Mueller-Eberstein & Adgetec Corporation
How “real” is blockchain?
 Goldman-Sachs invest $500+ Million
 Microsoft declares “blockchain” as one of
the key “must win” workloads for their Azure
platform and business (and announced
collaboration with many US banks)
 Some governments invest into developing
their own “local” blockchains
Mark Mueller-Eberstein & Adgetec Corporation
Understanding
change
©Mark Mueller-Eberstein & Adgetec Mark Mueller-Eberstein & Adgetec Corporation
is scary
Change
have
emotions
People
Is constant
Uncertainty
Endings Exploration New Beginnings
Reconciliation Reorientation Recommitment
Denial
Anxiety
Shock
Fear
Anger
Frustration
Confusion
Stress
Creativity
Approach-Avoidance
Skepticism
Acceptance
Impatience
Hope
Energy
Enthusiasm
Productivity
Morale
Theory of Transition
Schlossberg; 1981 & 1995
Mark Mueller-Eberstein & Adgetec Corporation
Regulations and restrictions?
From an economist perspective: Every restriction
(and forced inefficiency) comes with a cost.
Lets be clear who carries the cost and if that is in
the best interest of an economy and society.
Mark Mueller-Eberstein & Adgetec Corporation
Security?  Distributed ledgers and Blockchain technology
create unparalleled opportunities, paradigm shifts
and risk.
 (Some) Risks areas:
technology, business, society and government
 Cyber-currency and cyber-technology go hand-in-
hand as the internet evolves.
Topics that will need to be covered include:
 Basics of Blockchain technology and its application in
business and government scenarios
 Security and trust models in Blockchain(s) and the
applications using blockchains
 Community and government approaches
 Learning from spectacular security breaches (e.g. DAO
(Ethereum); Mt. Gox (Bitcoin))
 Security through resilience and agility
Mark Mueller-Eberstein & Adgetec Corporation
Blockchains are here.
 Our Opportunity!
1.Change will be fundamental on
business, technology, processes,
structures and people.
2.Technology leaders are positioned to
drive and realize the vision and image
of the future.
Mark Mueller-Eberstein & Adgetec Corporation
Question to ponder….
 Where in our current and future business can distributed databases/ledgers
provide a competitive advantage?
 How would we position, defend and communicate such an advantage?
 Build our own blockchain or leverage somebody else’s?
 Are we engaging with the most innovative players in the ecosystem?
 How can we improve agility, innovation potential, national and international
partnerships?
 How do we understand, assess and manage risks?
 How do we think about blockchains issued/controlled by “others”—
communities, commercial organizations, financial institutions, governments?
 How does blockchain technology and entering the (money) transfer business
impact relationships to customers, banking (partners), governments, regulatory
institutions?
Mark Mueller-Eberstein & Adgetec Corporation
THANK YOU!
 MarkME@adgetec.com
 Twitter: MarkMEberstein
 US +1 855.423.4383
Mark Mueller-Eberstein
The Innovation Economy Research Institute
CEO of Adgetec Corporation
Bestselling Author
WeChat: MarkMEberstein
Mark Mueller-Eberstein & Adgetec Corporation

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Discover blockchain - WA state thought leader discussion

  • 1. Discover Blockchain “WHAT IT IS” AND HOW EVERYTHING COULD BE DIFFERENT Mark Mueller-Eberstein Rutgers University The Innovation Economy Institute CEO of Adgetec Corporation @MarkMEberstein WeChat: MarkMEberstein
  • 2. “Every inefficiency in a system will be removed (by technology) sooner or later.” Mark Mueller-Eberstein Mark Mueller-Eberstein & Adgetec Corporation
  • 3. Mark Mueller-Eberstein & Adgetec Corporation What differentiates Winners from Losers? Low IT Capability Maturity HIGH IT Capability Maturity Mark Mueller-Eberstein & Adgetec Corporation
  • 4. Mark Mueller-Eberstein & Adgetec Corporation “Top Companies in 2007” Low IT Capability Maturity HIGH IT Capability Maturity
  • 5. Mark Mueller-Eberstein & Adgetec Corporation “….. And where they are in 2016” Low IT Capability Maturity HIGH IT Capability Maturity
  • 6. The trick is being open to changing your mind, and more importantly, knowing when to do so. George Bernard Shaw “Those who cannot change their minds cannot change anything." ©Mark Mueller-Eberstein & Adgetec Corporation
  • 7. Of the 7 billion people in the world… 7 6 5 4 3 2 1 0 Cell phonesToothbrushes Unitsinbillions Mark Mueller-Eberstein & Adgetec Corporation
  • 8. But only 20% (1.4B) have currently access to the banking system Mark Mueller-Eberstein & Adgetec Corporation
  • 9. At least $1.7 trillion in “inefficiencies” up for grabs… The Economist, 2014
  • 10. And that is only the banking system… Think any kind of transaction and related services… Mark Mueller-Eberstein & Adgetec Corporation
  • 11. … for example….  Records of estates  Records of shares  Any financial transaction  Voting  Domain control (DNS)  Central Trust (“Escrow”) for any kind of deals  Messaging (“signed and unchangeable”)  IP management  … Mark Mueller-Eberstein & Adgetec Corporation
  • 12. The more you learn, the more opportunity you will see. Nobody knew in early 1990s what the Internet was or would lead to. Milton Friedman: “Eventually, there will be a digital value system beyond the nation state.” Mark Mueller-Eberstein & Adgetec Corporation
  • 13. “Innovation requires learning through mistakes” “Technology decisions are driven by business requirements” How leading business prioritize: Mark Mueller-Eberstein & Adgetec Corporation
  • 14. Blockchain  Blockchain is like the Internet (it changed everything)  The implications for traditional financial services are massive  The end of banks?  The end of central banks?  Big implications for regulators. Mark Mueller-Eberstein & Adgetec Corporation
  • 15. Blockchain Technology  Blockchains: Public / Open “Private”  Some Blockchains:  Some Crypto Currencies: Mark Mueller- Eberstein & Adgetec Corporation
  • 16. Blockchain – in 2 minutes
  • 18. Networking…. Old school computing and business Changed computing and business over the last 20 years Mark Mueller-Eberstein & Adgetec Corporation
  • 19. Peer-to-Peer (P2P) Networking is everywhere P2P (structured & Unstructured) File Sharing •Napster •BitTorrent Media •Spotify •Popcorntime •PPLive (TV) Marketplaces •BitCoin •“Sharing Economy” Cryptography Storage & Search •Minerva Project Communication •Skype •Google Talk •I M Mobile •WeChat •WhatsApp •Line Messaging as Payment E-Commerce •E-Bay •AirBnB •Uber Defense •DARPA High Performance Computing •Grid Computing •HIVE •SETI@home Analytics techniques exchange •Chinook Mark Mueller-Eberstein & Adgetec Corporation
  • 20. Many commercial or government services are basically “databases” that are centrally owned and managed. Mark Mueller-Eberstein & Adgetec Corporation
  • 21. Transactions are recorded in a “Ledger” Mark Mueller-Eberstein & Adgetec Corporation
  • 23. Blockchain technology allows a distributed ledger vs. a centrally managed ledger. All transactions within a block are recorded and visible. And can never be changed (“Immutable”). Blockchain without a “token” is just a database Mark Mueller-Eberstein & Adgetec Corporation
  • 24. Benefits of Blockchain secured distributed leger vs. central ledger  Information can be put on block chain and can never be changed  Worldwide ledger: IP, land titles, art,...  Full transparency for every transaction  "Record every information forever" Mark Mueller-Eberstein & Adgetec Corporation
  • 25. Bitcoin vs. Blockchain  Bitcoin is (currently the best know) usage of blockchain technology  One of many digital currencies using blockchain technology  Many more uses for blockchain technology other than “currency”  Why digital currency is used?  No need to use exchange (e.g. banks) for people who know/use Bitcoin  Direct exchange between individuals is possible Mark Mueller-Eberstein & Adgetec Corporation
  • 26. Bitcoin basics  Insider: "It feels like when we first developed the Internet"  It is a way to transfer value in the Internet  Bitcoin can not be copied. First "scarce" digital asset.  Bitcoin protocol (blockchain) is final piece of Internet puzzle  Very early and experimental stage  As longer as Bitcoin exists, the stronger it gets  60% of all Bitcoin mining done in China (up from 40% 8 months ago)  New block created every ten minutes Mark Mueller-Eberstein & Adgetec Corporation
  • 27. How “real” is Bitcoin? ... Most virtual believe might be "love" Virtual goods are as real as people believe in them... There is very little “real money”. Most are “0s””1s” on some bank’s database Mark Mueller-Eberstein & Adgetec Corporation
  • 28. How “real” is blockchain?  Goldman-Sachs invest $500+ Million  Microsoft declares “blockchain” as one of the key “must win” workloads for their Azure platform and business (and announced collaboration with many US banks)  Some governments invest into developing their own “local” blockchains Mark Mueller-Eberstein & Adgetec Corporation
  • 29. Understanding change ©Mark Mueller-Eberstein & Adgetec Mark Mueller-Eberstein & Adgetec Corporation
  • 33. Endings Exploration New Beginnings Reconciliation Reorientation Recommitment Denial Anxiety Shock Fear Anger Frustration Confusion Stress Creativity Approach-Avoidance Skepticism Acceptance Impatience Hope Energy Enthusiasm Productivity Morale Theory of Transition Schlossberg; 1981 & 1995 Mark Mueller-Eberstein & Adgetec Corporation
  • 34. Regulations and restrictions? From an economist perspective: Every restriction (and forced inefficiency) comes with a cost. Lets be clear who carries the cost and if that is in the best interest of an economy and society. Mark Mueller-Eberstein & Adgetec Corporation
  • 35. Security?  Distributed ledgers and Blockchain technology create unparalleled opportunities, paradigm shifts and risk.  (Some) Risks areas: technology, business, society and government  Cyber-currency and cyber-technology go hand-in- hand as the internet evolves. Topics that will need to be covered include:  Basics of Blockchain technology and its application in business and government scenarios  Security and trust models in Blockchain(s) and the applications using blockchains  Community and government approaches  Learning from spectacular security breaches (e.g. DAO (Ethereum); Mt. Gox (Bitcoin))  Security through resilience and agility Mark Mueller-Eberstein & Adgetec Corporation
  • 36. Blockchains are here.  Our Opportunity! 1.Change will be fundamental on business, technology, processes, structures and people. 2.Technology leaders are positioned to drive and realize the vision and image of the future. Mark Mueller-Eberstein & Adgetec Corporation
  • 37. Question to ponder….  Where in our current and future business can distributed databases/ledgers provide a competitive advantage?  How would we position, defend and communicate such an advantage?  Build our own blockchain or leverage somebody else’s?  Are we engaging with the most innovative players in the ecosystem?  How can we improve agility, innovation potential, national and international partnerships?  How do we understand, assess and manage risks?  How do we think about blockchains issued/controlled by “others”— communities, commercial organizations, financial institutions, governments?  How does blockchain technology and entering the (money) transfer business impact relationships to customers, banking (partners), governments, regulatory institutions? Mark Mueller-Eberstein & Adgetec Corporation
  • 38. THANK YOU!  MarkME@adgetec.com  Twitter: MarkMEberstein  US +1 855.423.4383 Mark Mueller-Eberstein The Innovation Economy Research Institute CEO of Adgetec Corporation Bestselling Author WeChat: MarkMEberstein Mark Mueller-Eberstein & Adgetec Corporation