Bitcoin and blockchain technology are disrupting traditional financial systems by moving from institution-based money to a network-based currency. The document provides an overview of Bitcoin and Ethereum, different ways to store cryptocurrency through wallets, examples of transactions and current price indexes. It also discusses potential use cases for blockchain like digital identity, smart contracts and decentralized applications.

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Intro Bitcoin & Blockchain.
NOVEMBER 2017
@BorisReinhard #AskAboutDigital@net1_digital
From institution-based money to network-based money.
PLEASE
NOTE: THIS
IN NO
INVESTMENT
ADVICE

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BORIS REINHARD
Profile: Boris.
“ I AM NOT A TYPICAL CONSULTANT.
★ Dipl.-Ing. & M.Sc.
★ History: E-Business & UX, EAM, Digital
★ Topics Digital, Bitcoin & Blockchain
★ My mission is to coach and guide companies, ventures and
startups through the digital shift and through blockchain projects
★ Curator for 'Blockchain & Crypto' with Scope
★ Focus on business value, not features
★ Initiator EAM Community CH, Digital Community CH
★ Member of D_BREAK
★ Certified Bitcoin Professional (CBP) , ID 2f7220

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The Blockchain (and shared ledger
respectively) are extremely promising
technologies. It has the potential to
change almost every industry.
We help you to identify a viable and
sustainable business model around the
technology and guide you through your
Blockchain journey.
BLOCKCHAIN – USE CASES
Our passion is to guide companies through
the digital shift, drive their innovation and
leverage new technologies as well as
customer-centricity. We make digital
strategies, identify digital opportunities
and initiate transformations.
And we guide you in planning, managing
and implementing digital initiatives,
ventures and start-ups.
DIGITAL TRANSFORMATION – BUT HOW?
net1.digital - What’s hot?
There are some hot topics, which are currently high on the agenda of companies. Some introducing
words regarding these focus topics:

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2008.
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> Trust?
Source: zerohedge.com

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Source: http://bitcoinliberationfront.blogspot.ch/2014/03/satoshi-nakamoto-nope.html +
http://s.newsweek.com/sites/www.newsweek.com/files/styles/cover/public/2014/04/02/2014/03/05/67-2014-3-14-cover.jpg
Bitcoin & Satoshi Nakamoto.
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Bitcoin & Satoshi Nakamoto.
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Source: calvinayre.com
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URL: https://youtu.be/Gc2en3nHxA4
What is Bitcoin – Video.
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The death of the Intermediary?
Picture: http://bit.ly/2v1pT7H (Deloitte/dupress.com) Text: http://bit.ly/2vvJaRV
Bitcoins can be owned by any
individual, without permission
from any bank or government.
They can be sent to anybody
else in the world who knows
how to operate a ‘Bitcoin
wallet’.
It is this principle of ‘censorship
resistance’ that captures
Bitcoin’s essential
breakthrough — and which
explains early concerns by
lawmakers and regulators.
Banks are losing control...
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Bitcoin & Ethereum.
BITCOIN (BTC & BCH)
THE TWO LEADING DIGITAL CURRENCIES
Source: http://bit.ly/2tyld7F
ETHEREUM (ETH, NOT ETC)
★ The Bitcoin Blockchain is an example of a
public blockchain and is so called because it
is the blockchain on which the digital
currency Bitcoin rides. Gartner calls it “the
only proven blockchain.”
★ Part of what makes Bitcoin valuable is that
there is a nite supply. Supply is limited by
virtue of the way it is “mined” and by the
fact that Satoshi Nakamoto capped the
number of Bitcoin at 21 million to
counteract inflationary pressure.
★ Ethereum is another public blockchain with its
own digital currency, Ether.
★ Ethereum is a powerful development platform
on which innovators can build a diverse array
of applications due to its core innovation, the
Ethereum Virtual Machine.
★ Ethereum pioneered the concept of “smart
contracts,” programmable conditions that run
automatically, without censorship, fraud or
third-party

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11Source: https://twitter.com/rogerkver/status/928720619310481408

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12Source: https://cointelegraph.com/news/vc-expert-gurley-bitcoin-is-incredible-store-of-value
Store of
Value.
"I think of it as an
incredible store of value
in the rest of the world.
I don't think it's
irrational.”
(Bill Gurley)

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13Source: https://twitter.com/rogerkver/status/930516110948093953
Medium of
Exchange.

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… like an IBAN … like your E-Banking-Login
Please note: Never share your private keys!
Bitcoin: Public Address & Private Key.
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Be
your
own
bank.
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Source: https://jaxx.io/images/3Incontrol.png + https://cdn3.geckoandfly.com/wp-content/uploads/2016/12/530-bitcoin-wallet-1.jpg +
http://www.coinpurveyor.com/wp-content/uploads/2017/08/coinomi-bitcoin-cash-7.jpg
App-Wallet as Keyholder (online, “hot”).
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Source: NZZ.ch + https://i.ytimg.com/vi/a47rrYBWjWQ/maxresdefault.jpg
Paper/Plastic as Keyholder (offline, ‘cold’).
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Source: http://www.pcgameshardware.de/screenshots/original/2013/11/Bitcoin-162-pcgh.jpg + http://object2212.com/wp-content/uploads/2017/05/Denarium_brass_rev.jpg
‘Real’ Coins as Keyholder.
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Source: https://www.sbb.ch/en/station-services/services/further-services/bitcoin.html + https://www.bitpanda.com
Buy Bitcoin (SBB, Exchanges).
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SBB CFF FSS Exchanges like Bitpanda, Bitstamp, etc.
Warning: Do not use kraken Bitcoin Exchange (www.kraken.com)

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Example: Bitcoin Price Index (USD).
Source: http://www.finanzen.ch/devisen/chart/bitcoin-franken-kurs - shirt: https://teespring.com/shop/make-america-a_copy_24#pid=2&cid=2397&sid=front
28 November 2017:
10’000 USD = 1 BTC
CHF
Source:
visualcapitalist.com
28 Nov. 2017

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Transaction Summary
Source: http://bit.ly/2tyld7F
seconds, max. minutes
Example: BTC/ETH

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Developing Countries.
Source: https://www.cryptocoinsnews.com/opinion-venezuela-proves-bitcoin-future-money/
[Bitcoin] roars (…) above it
all, for it is the people’s
voice. The people who are
taking back their rights
and imposing what is
obviously good – the true
value of market prices,
free from any
manipulation, guaranteed
by code, governed by us
all.’ (Andrew Quentson)

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Smart Contracts Platform.
Source: http://bit.ly/2wFNPwJ
An option contact between
parties is written as code into
the blockchain. The parties
involved are anonymous, but
the contact is the public
ledger.
A triggering event like an
expiration date and strike
price is hit and the contract
executes itself according to
the coded terms. The data
comes from oracles.
Regulators can use the
blockchain to understand the
activity in the market while
maintaining the privacy of
individual actors’ positions.

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Smart Contracts Platform.
Source: https://www.draglet.com/blockchain-applications/smart-contracts/use-cases
The current problem with insurance policies is that the
claims process can take weeks or even months to be paid.
The process is still very manual and requires a large
degree of human action. This adds up to a lot of
administrative costs, which result in higher premiums for
customers.
Insurance companies can automate insurance policies by
writing them into a smart contract.
When the input conditions of the smart contract change
in an insured event, for example in the event of a
catastrophic natural disaster, then the claims process is
triggered immediately.
Smart contracts in insurance policies

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Use Cases.
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DIGITAL IDENTITY - CRYPTO-VALLEY (ZUG)
Zug, Switzerland, aka Crypto-valley, is now often compared to Silicon Valley, as
it is home to many crypto-related companies and gets its name from the type
of businesses it attracts to the area: crypto.
Furthermore, according to the announcement, Zug is now becoming the first
community in the world to offer all citizens the opportunity to get a digital
identity based on the Ethereum blockchain.
Residents can register their identity by themselves using a special app that
secures personal information using blockchain technology and associates it
with a crypto address. Subsequently, the identity is verified by the identity
control of the city of Zug.
Zug will gather more experience with blockchain in the third quarter in a bid to
hold a non-binding e-referendum in spring of 2018. The software has come to
be seen as a potential technology to revolutionize the Swiss voting system,
which today still relies on ballot papers and hand counted results.
Source: http://bit.ly/2eR2TEn + https://twitter.com/wef/status/904733670673666050

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Use Cases.
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DIGITAL PASSPORT FOR DIAMONDS (EVERLEDGER)
The diamond industry is beginning to implement a system called
Everledger, based on block chain technology, which establishes a
digital ‘passport’ for each diamond. This records its provenance,
travel, and transactions with a unique cryptographic ‘fingerprint’. This
system has three stages:
★ Establish an e-ID (electronic identity) for each diamond, by
digitising its attributes and a laser-inscribed serial number onto an
authoritative block chain ledger
★ Assign a digital passport to the diamond to record its travel,
transaction history and provenance
★ Detect and guard against illegal activities or fraudulent behaviour
Source: http://bit.ly/2vvJaRV

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Use Cases.
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DECENTRALISED INSURANCE APPLICATIONS (ETHERISC)
Etherisc's mission is to build decentralized insurance applications, making the
purchase and sale of insurance more efficient, enable lower operational costs,
provide greater transparency into the industry of insurance compared to
traditional operations, and democratize access to reinsurance investments.
They present a token model which enables investors to buy and trade the
“long-tail” risks of a decentralized insurance portfolio and to gain exposure to
its revenue as an income stream. Together with a consumer-facing insurance
application, this shows how a decentralized insurance system could work on
the blockchain.
Example:
★ Flight Delay Dapp (Issues policies and pays out valid claims completely
autonomously)
Source: http://bit.ly/2tOVRXm

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Use Cases.
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Peer-to-Peer Electricity (Brooklyn Microgrid / LO3 Energy)
A community microgrid in Boerum Hill, Gowanus and Park Slope in support of Governor
Cuomo’s goal of creating local energy networks with the ability to separate from the larger
electric grid during extreme weather events or other emergencies. The community
microgrid will create a local energy network with a focus on:
★ Working with community leaders, utilities and technology partners to identify the best
fit for distributed energy resources and critical infrastructure upgrades
★ Developing locally generated energy that provide resiliency for emergency needs of
local communities
★ Reducing customer costs and promoting clean, renewable electricity, energy efficiency
and energy storage options within my community
★ Managing these distributed energy resources for times of power outages and
emergencies to protect my community and local economy
★ Identify and create new financial incentives and business models to drive community
involvement and jobs, boosting the local economy
Source: https://suncontract.org/res/whitepaper.pdf

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Blockchain - Bitcoin & Ether Wallet.
Public Address Private Key
1LepvSQ5cvQ5hDiWErtGPhzKHJ6poV16YF L4CArzTZBqubj3Pph4p4184Lu2Yx1nDkxpTrShY1QxtCWeUejzp3
1743rp1NPRJkVWjxDiw9FQM2EC9vP8P9oZ L2ZAB7Jsh5s1bSs6ZGoZ3UxBYtZWpiqFkMvfE5k9X9FWtUtpGNs7
1PT2b4Noji9tjBs2R8Q1g9t3pLAaGwW64G L2nayfGjXp1XfRwPPVoy3pCmi8iDkR5RYQHbP6i4nHPGSTtJhe5Y
1Km3tjQ1iY5kSXuPVZzNCqqj1hZVqEMeSA L4g8TYpXtpU1YYKpuxEu7fvyqau54Yi5wjSrUYu5cbkJnaJgmFak
1QFYAQtsinqwUh8h7zUHYhJH46vo9Z51eo L4i4auw3zw3xhFsqxC8uJZKZXipt9fc5C5rTWtFVB2KE3YdSE2Pi
1Kx1hN2nsUjWSyoVTXRnbL1JhQ2PczevPL L1ETpbxCPKGBrCX34D413ZJ72GpeZLMfbCZnEvb25oLGL6x86koh
113JUsKYbgxcCgKCNqf2esMKWJC4TgvEQ3 KzKGXaZ1jpC71P72XG8krEG6KSPrRMs6fzYC838deuBZB36uTiS8
1HTgiccKmHrQkJ2tCZrnzExsxJT4HV71HR L4VPSa36e39JzQeyaXL3kFpCJS6AJKzG3xwJ78Eqpg4Cc8nf3agy
… …
‘Masterseed’
Pleasenote:Nevershareyourprivatekeys!

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Hands-On.

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Do you want more information?
CRYPTO
LETTER
CRYPTO
PODCAST
CRYPTO
MAGAZINE

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Do you want to trade?
★ NOTHING is more important than security, and the best way to secure your
bitcoin longterm is with this Ledger hardware wallet: http://bit.ly/get-ledger
★ Next, set up VPN: https://bitvpn.org/. Buy their basic service, and encrypt your
internet connection.
★ Then get https://malwarebytes.com and https://AVG.com for free!
★ Download https://authy.com/ on your mobile device and set up 2FA
with everything.
★ Quality trading happens on https://bittrex.com - Get a free account,
set up 2FA, and whitelist your your withdrawal addresses to only
withdraw onto your Ledger Wallet.
★ Buy low, sell high, and store your profits with the utmost care.
ON YOUR OWN RESPONSIBILITY…
PLEASE NOTE:
THIS IN NO
INVESTMENT
ADVICE

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net1.digital GmbH
Rütistrasse 14
CH-8952 Schlieren (ZH)
+41 44 500 25 66
contact@net1.digital
www.net1.digital
@net1_digital
Dipl.-Ing. & M.Sc.
Digital Entrepreneur, CEO
+41 79 813 95 59
boris.reinhard@net1.digital
@borisreinhard
Contact.
Boris Reinhard #AskAboutDigital
www.askabout.digital
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17mFTRdNXA75s8vNYb5sbDGCs4UjDgQ43X

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Donate.