My updated slides that i presented at the Future Focus: Exponential Technologies conference organized by Claudia Olsson at NASDAQ Stockholm in April 2016.

1. April 2016
www.hhs.se

2. Time will tell…..
The Blockchain is the glue that is going to
drive a productivity revolution across the
globe on par with what Henry Ford did
with the automobile.
— Paul Brody, Americas Strategy Leader,
Technology Sector, Ernst & Young

3. >USD 1 bln invested in Bitcoin/Blockchain
https://www.cbinsights.com/blog/largest-blockchain-deals-strategic/

6. Challenging our mindset
Money = Fiat currency
 Country’s primary
currency
 Derives value from
government backing

7. A vocabulary list of currencies
 Fiat currency
− National currency
 Alternative currency
− Bonus points/vouchers, e.g., frequent flyer miles
− Digital currency
 In-game currencies, e.g., Stardollars, Farmville cash
 Virtual world currencies, e.g., Linden dollars, PEDs
 Mobile currency, e.g., M-pesa
 Cryptocurrency, e.g., Bitcoin
>6000
alternative
currencies

8. Real cash economy in Entropia Universe
http://blogs.forbes.com/oliverchiang/2010/11/13/meet-the-man-who-
just-made-a-cool-half-million-from-the-sale-of-virtual-property/
•GDP >USD 440 mln
•PEDs <--> USD, EUR
•Record virtual good:
USD 625,000

9. https://bitcoin.org/bitcoin.pdf
“…an electronic payment system based on cryptographic proof
instead of trust, allowing any two willing parties to transact
directly with each other without the need for a trusted third party.”
The beginnings of Bitcoin on the
internet in 2008-2009

10. Banking is essential,
but banks are not.
Bill Gates

11. Self-organizing, global community of strangers
• Libertarian
• Efficiency
• Profit
• Challenge
• Community

12. Institutions
EmergentCollective
VS
E.g., Central Bank
~ Long-standing financial
institutions and regulations
E.g., Bitcoin Community
~ Emergent collective of users across
globe connected through internet
Teigland, Yetis, Larsson 2013

13. Continued growth
On April 27, 2016
• 1 BTC = USD 463
• 15.5 mln bitcoins in
circulation
• Market capitalization of
≈USD 7.1 bln
• ≈245,000 transactions
https://blockchain.info/charts

14. How does Bitcoin work?
https://99bitcoins.com/get-your-first-bitcoin/

15. Where can I buy bitcoins?
32 länder i Europa

16. Yesterday I
bought 1000
SEK of bitcoins

17. The blockchain underlies bitcoin transactions
Financial Times

18. A global network of Bitcoin nodes
https://bitnodes.21.co/

19. https://www.youtube.com/watch?v=K8kua5B5K3I
Miners verify the transactions

20. Mycelium wallet on my phone

21. Where can I spend my bitcoins?
Dell
Microsoft
Wordpress
Overstock
Giftcards
Expedia

22. Where can I spend bitcoin in Prague?

24. my bitcoin purchase
http://www.coindesk.com/information/how-do-bitcoin-transactions-work/

25. What is so novel about Bitcoin?
• Distributed timestamped
public ledger
• Decentralized, P2P network
• Proof-of-work algorithm
• All transactions ever made
logged
• Chronology and integrity
enforced by cryptography
• No third party overseeing
Trust in
the network

26. Bitcoin – one of 100s of cryptocurrencies
http://coinmarketcap.com/

27. Sluggish growth in bitcoin usage?
 Users satisfied with current payment systems that
continuously improving
 Practical difficulty of purchasing bitcoins
 Volatility of bitcoin’s value relative to governmentissued
currencies
 Perception that bitcoin is insecure
 Perception that only used for money laundering, drugs, etc.
 Questions over bitcoin’s legal status
 Irreversible and unforgiving nature of bitcoin transactions
 Lack of support for bitcoin in mainstream financial sector
http://www.multichain.com/download/MultiChain-White-Paper.pdf

28. - Andreas Antonopolous
Saying that Bitcoin is a currency
is like saying that the internet is email.
Currency is just the first app!
http://startusingbitcoin.com/blog/1-what-is-bitcoin/

29. The blockchain
 Decentralized and distributed
• Robust, no central control or authority required to
coordinate behavior or interaction
• Shared public history of all transactions
 Displaces roles of trusted third parties
• Can’t do same transaction twice
• No transaction repudiation
• Initial entry requires trust but then system operates on
trustless basis
http://www.longfinance.net/images/events/Blockchain_and_Insurance_Webinar_10.14v2.0.pdf

30. Centralized vs distributed ledgers
Financial Times

31. Benefits of blockchain for financial services
 Lower costs through shared infrastructure
 Faster settlement that leads to lower capital
and liquidity needs
 Increased transparency, especially with cross
border payments
 Greater security through cryptography,
transparency
Citi Research, Jan 2016

32. Betting on the blockchain - together
>40 banks and counting…
Goldman Sachs, JPMorgan,
Credit Suisse, Barclays,
Commonwealth Bank of Australia,
State Street, RBS, BBVA, UBS,
Nordea, SEB, + ……
+ +

33. What can be decentralized using blockchains?
• Trading, stocks, bonds,
• Contracts, notary services
• Insurance
• Law, dispute resolution,
• Matchmaking services
• Crowdfunding, peer-to-peer lending
• Etc.
http://startusingbitcoin.com/blog/1-what-is-bitcoin/

34. Blockchain insurance applications

35. Enabling smart contracts?
Weather data
algorithm
Insurance
claim payout

36. IBM Institute for Business Value (PDF)

37. • World’s first decentralized computer?
• Commoditizes trust
https://www.youtube.com/watch?v=U_LK0t_qaPo

38. robots
nanok.com

39. All our knowledge is about the past, but all our
strategic decisions are about the future.
What we don’t know
we don’t know
Most of what we need to know
to make good decisions today
is outside our comprehension:
We don’t even know it’s there.
What we
know
What we know
we don’t know

40. 1950s vision of
home PC in 2004

41. Robin Teigland
robin.teigland@hhs.se
www.slideshare.net/eteigland
www.funnovation.se
@robin.teigland
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