The document discusses cryptocurrencies and their implications. It begins with an introduction to cryptocurrencies and their audacious proposition of transmitting value without third parties. It then views cryptocurrencies as an open, internet-scale platform for value exchange, similar to how the web is a platform for information exchange. The document concludes by considering various scenarios for how cryptocurrencies may develop and the opportunities they present for both technology and finance firms to adapt.

1. Richard
G
Brown
Financial
Services
Club
Execu/ve
Architect,
Banking
and
Financial
Markets
6
October
2014
The
Latest
in
Cryptocurrencies
©
2014
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Corpora/on
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G
Brown:
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Agenda
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§ Introduc<on:
Understand
the
audacity
§ The
Insight:
This
is
all
about
the
plaRorm
§ Implica<ons:
Where
is
this
going?
What
are
the
opportuni/es?
What
is
the
latest
news?
Richard
G
Brown
Execu/ve
Architect
for
Innova/on
in
Banking
and
Financial
Markets,
IBM
UK
hMp://www.youtube.com/watch?
v=VDO7TDMlxsY

3. ©
2014
IBM
Corpora/on
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Richard
G
Brown:
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We
used
to
think
you
couldn’t
transmit
value-­‐at-­‐a-­‐distance
without
relying
on
trusted
third
par/es…
hMps://crea/vecommons.org/licenses/by-­‐sa/2.0/
hMp://www.flickr.com/photos/68751915@N05/6551534889/
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2014
IBM
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Richard
G
Brown:
twiMer.com/gendal,
gendal.wordpress.com
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IBM

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2014
IBM
Corpora/on
Contact:
Richard
G
Brown:
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gendal.wordpress.com
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IBM

6. ©
2014
IBM
Corpora/on
Contact:
Richard
G
Brown:
twiMer.com/gendal,
gendal.wordpress.com
Cryptocurrency
helps
clarify
our
thinking
about
today’s
1)
Authorise
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debates
A B
Examples:
• m-­‐Pesa,
PayPal
• PingIt,
Droplet
• Zapp,
paym,
…
A B
Examples:
• Cash
• Bitcoin
A B
Examples:
• Visa
• MasterCard
Are
the
successes
(and
failures)
of
early
Bitcoin
wallet
implementa<ons
a
source
of
learning
for
next-­‐genera<on
push-­‐payment
systems?
Push
Instruct
2)
Pull

7. Think
“open
internet-­‐scale
plaRorm
for
value-­‐transfer”
rather
than
“currency”
or
“payment
system”
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I07B
7M/1
C0o/2n0fi1d4e
n/al

8. ©
2014
IBM
Corpora/on
Contact:
Richard
G
Brown:
twiMer.com/gendal,
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The
Web:
An
open,
internet-­‐scale
plaRorm
for
informa)on
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exchange

9. ©
2014
IBM
Corpora/on
Contact:
Richard
G
Brown:
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Cryptocurrency:
An
open,
internet-­‐scale
plaRorm
for
value
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exchange?

10. Transac/on
Scrip/ng
Open
Access
through
API
or
Protocol
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Corpora/on
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G
Brown:
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This
is
about
more
than
currency
and
tradi/onal
payments…
The
First
Killer-­‐App?
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Asset
Transfer
with
Finality
Advanced
Transac/on
Scrip/ng
(Ethereum)
“Digital
Scarcity”
Near-­‐Instant,
Near
Free
Interna/onal
Value
Transfer
Public
Visibility
of
Transac/ons
“Push
Payment”
by
Design
A
new
Custody
Model?
Smart
Property
Revolu/on
in
Retail
“Programmable
Money”
“Economy
of
Things”
A
new
model
for
AML
Smart
Contracts
The
Core
Bitcoin
Innova<on

11. Selected
current
projects,
products
and
debates
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G
Brown:
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14
07/10/2014
IBM
Confiden/al

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Brown:
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Source:
hMp://etherscripter.com/0-­‐5-­‐1/
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16. hMp://teespring.com/nobodyknows
hMp://www-­‐935.ibm.com/services/us/
gbs/thoughtleadership/internetonhings/
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G
Brown:
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hMp://www.coindesk.com/ibm-­‐execu/ve-­‐block-­‐chain-­‐internet-­‐of-­‐things/
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17. hMp://cdixon.org/2014/10/04/some-­‐ideas-­‐for-­‐na/ve-­‐bitcoin-­‐apps/
hMp://gendal.wordpress.com/2014/10/05/cryptocurrency-­‐products-­‐and-­‐
services-­‐will-­‐determine-­‐adop/on-­‐of-­‐the-­‐currency-­‐not-­‐the-­‐other-­‐way-­‐round/
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Brown:
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hMp://blog.chain.com/post/99177371581/bitcoins-­‐killer-­‐apps
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G
Brown:
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Scenario
Descrip<on
Proba
bility
Opportunity/
Implica<on
for
technology
firms
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Opportunity/
Implica<on
for
finance
firms
“It’s
dot.bomb
all
over
again”
Flash
in
a
pan;
geeks
get
excited;
the
world
goes
on
Low?
Short
term
revenue
opportunity
only?
Flee/ng
aura
of
cool
“Banks
are
doomed.
Sell
everything!”
Fiat
currencies
collapse;
1BTC
is
worth
$1bn;
A
new
world
order
where
geeks
rule
the
roost?
Very
Low?
Wholesale
reconfigura/on
of
the
banking
industry
Adapt….
quickly!
“Coexistence;
the
world
changes
slowly”
Cryptocurrencies
slowly
gain
adop<on;
today
=
Web
in
1995;
fast
followers
probably
win;
“Programmable
money”
is
the
spur
to
innova<on
Likely?
Adapta<on
of
banking
industry,
serve
also
the
new
players
Embrace,
with
care,
as
“new
pla^orm
for
value
transfer”