Presentation by GBA Puerto Rico Chapter lead Oscar Cullen from @siete8siete about Blockchain and Cryptocurrencies at the College of Certified Accounting Professionals

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Fei stones as currency

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Moving the stones is very difficult...

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8. —DR. WILLIAM FURNESS
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TRUST
It all comes down to…

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Trust enables peer-to-peer transactions

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TRUSTOur system ≠

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Buying a house in a system with no trust…

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Buying a house in Yap

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Imagine a world where buying a house
would be as easy as doing it in Yap…

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This is the promise of
Bitcoin
1. Digital currency governed
by technology, no
government backing
2. Not stored in any bank
3. Transfer of ownership –
doesn’t physically move
around when exchanged

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Buying a house with Bitcoin

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If someone says they have 100
bitcoins, how can I trust them?

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Blockchain. Technology that enables trust.

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Blockchain = System
Bitcoin = Application

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Blockchain – Main “Buzz words”
1. “Shared database” = Giant Spreadsheet

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www.blockchain.info

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Blockchain – Main Characteristics
1. “Shared database” = Giant Spreadsheet
2. “Decentralized” = Stored in thousands of computers

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Blockchain – Main Characteristics
1. “Shared database” = Giant Spreadsheet
2. “Decentralized” = Stored in thousands of computers
3. “Immutable”= very, very difficult to hack/alter.

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360,000x

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Other blockchain
applications

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Three main types of Blockchain Applications

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1 Transfer of assets

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2 Supply Chain Verification

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3 Smart Contracts

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3 Smart Contracts
Written in code, automatically executed, and paid
in cryptocurrency

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If smart contracts can automatically move value
AND permanently store the transaction in a
ledger that is impossible to alter…

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If smart contracts can automatically move value
AND permanently store the transaction in a
ledger that is impossible to alter…

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-NASDAQ

39. “The days of sample based substantive testing will soon be
challenged, as auditors will resort to blockchain technology
to test the whole population of transactions within the
period under observation.”
—Deloitte
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Audit

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But someone still has to “write” the contracts…
RIGHT?

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Auditing Financial
Statements
Auditing Smart
Contracts

42. —Deloitte, December 2017
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Tax

43. 43Source: Deloitte

44. 44Source: Deloitte

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Will our industry be around in five years?

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Blockchain today = the internet in 1994

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—BILL GATES
“WE ALWAYS OVERESTIMATE THE
CHANGE THAT WILL OCCUR IN THE NEXT TWO YEARS
AND UNDERESTIMATE THE CHANGE THAT WILL OCCUR
IN THE NEXT TEN.
DON’T LET YOURSELF BE LULLED INTO INACTION.”

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CPA TECH FORUM
THANK YOU
Designed by: Adriana Serrano-Ramírez

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Panel
• Giancarlo González: President, GBA Puerto
Rico
• Jonathan González: Mentor-in-residence,
Parallel 18
• Gabriel Viera: Compliance Officer, Activo Bank
SAVE THE DATE!
Next GBA Meetup, Financial Regulation
May 10 @ Piloto 151
7:00PM
Twitter: @GBAPuertoRico | www.gbspuertorico.org

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Appendix

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Who Can You Trust?
By Rachel Botsman
(last 2 chapters)
The Internet of Money
By Andrea Antonopoulos
The Business Blockchain
By William Mougayar

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Sources
- Deloitte report:
https://www2.deloitte.com/content/dam/Deloitte/pl/Documents/Reports/pl_Blockchain-
technology-and-its-potential-in-taxes-2017-EN.PDF
- Who can you Trust - Botsman, Rachel
- Brock Pierce, Blockchain Technology: https://www.youtube.com/watch?v=3lMvo0PPxjQ

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Not everything is peaches and roses….

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70% of transactions on the bitcoin
network go through 4 Chinese
companies, mining powerhouses.

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STEP BY STEP – BITCOIN TRANSACTION
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www.blockchain.info