The document discusses the evolution and future of blockchain technology, particularly through the lens of Orb's distributed ledger technology (DLT). It suggests that blockchain can downsize existing financial systems and enable new forms of economic interactions, such as micro-payments and real-time transactions, while also exploring the implications of cryptocurrency in a post-capitalist society. Key insights include the competitive landscape of blockchain solutions and critiques of Bitcoin's market behavior and potential.

1. ©2017 Orb, Inc. All Rights Reserved
Blockchain Blockbuster 2017 inYeouido
Masa Nakatsu
CEO, Founder of Orb
How blockchain industry is evolving now and future?

2. ©2017 Orb, Inc. All Rights Reserved
Orb Team - 28 members
Serial Entrepreneur
Ex Criteo Grobal RTB
APAC Director,
Founder of Musavy,
Seven Eleven Japan
Masa - CEO Sherwin - COO
Serial Entrepreneur,
Angel Investor
ExVISA, GM of Verisign
QuinStreet, and Tapjoy
Wataru - CBO
Ex Oracle for 18 years,
Technical Consulting,
BD, and Sales
Hiro - CTO
Ph.D in CS Univ of
Tokyo, ExYahoo!
Japan, and IBM
Product: 16
• Product: 2
• SW Engineer: 7
• Technical
Consultant: 5
Sales&Mktg: 6
• Sales: 3
• Sales Consultant: 1
• BD: 1
• Marketing: 1
Back Office: 3
• Finance&IR:2
• Accounting: 1

3. ©2017 Orb, Inc. All Rights Reserved
Marc Andreessen posted on NY Times
“Personal computers in 1975, the
Internet in 1993, and – I believe –
Bitcoin in 2014.”

4. Social
Innovation
Technology
Innovation
©2017 Orb, Inc. All Rights Reserved
2 Innovations will happen by Bitcoin
2.Post Capitalism
Society
1.Downsizing
Financial System

5. ©2017 Orb, Inc. All Rights Reserved
What will happen in Financial System?
1.Downsizing Innovation

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Personal Computer
1960 2017
Tipping Point 1980: DOS to GUI OS w/ Mouse

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Internet
1980 2017
Tipping Point 1995:TCP/IP w/ HTML2.0

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Blockchain
2017 2030
Tipping Point 2018: Blockchain to DLT

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What’s key for
Downsizing Financial Systems?
・Decentralized Control
・Tamper Evidence
with Consistency,
Performance, & Scalability

10. ©2017 Orb, Inc. All Rights Reserved
World 1st High Scalability & Performance
w/ Strong Consistency DLT (PAT. PEND.)
Orb DLT

11. ©2017 Orb, Inc. All Rights Reserved
Competitive Landscape
Ethereum Hyper Ledger Orb DLT
Enterprise
In memory DB
1.Decentralized
Control ○ ○ ○ -
2.Tamper
Evidence ○ ○ ○ -
3.Consistency X ○ ○ ○
4.Performance X X ○ ◎
5.Scalability X X ○ ○
6.Integrated
Storage and
Analytics
X X ○ ○
7.Ease of Use X X ○ -

12. ©2017 Orb, Inc. All Rights Reserved
Benchmark Test on Oracle IaaS
• Cloud: Oracle Cloud 3 w/ Oracle Linux)
• H/W: 2 vCPU, 7.5 GB DRAM,
128GB(1TB) SSD
• Nodes: 48 (16 nodes for each 3 DCs)
• Data - 60M Payment Tx - 10GB/node
• Replication factor: 3
• Cost - $150/node Monthly

13. ©2017 Orb, Inc. All Rights Reserved
Result - Transaction Throughput
0
500
1000
1500
2000
2500
3000
3500
0 12 24 36 48
TPS
# of nodes
Achieved Linear Scalability
With more CPU resources,
Orb DLT will hit over 30K
TPS. Ex:VISA-net - 4,000TPS
on average

14. ©2017 Orb, Inc. All Rights Reserved
Typical Use Case - Credit Card System
Old Model Orb DLT
Connected By Special Purpose Networks
Brand System
Acquirer
System for
Stores
Authorization
Settlement
Issuer
System for
Consumers
Expensive HW
Ex: Mainframe
Expensive HW
Ex: Mainframe
Connected By TCP/IP (Internet)
Acquirer
System for
Stores
AuthorizationIssuer
System for
Consumers
Cheep Blade
Servers
Cheep Blade
Servers
Settlement
Consumer
Wallet App
Merchant
POS Systemby Batch
Processing
Real-time
Transaction
Will expand
to Consumers
& Merchants
in long-term

15. ©2017 Orb, Inc. All Rights Reserved
Cost Reduction by Orb DLT
Old Model Orb DLT
Transaction Peak
Time
Wasted IT
Resources
2am 7am
Wasted IT
Resources Enable cost cutting
IT resources
In this area

16. ©2017 Orb, Inc. All Rights Reserved
Reference：
Pain Points on Credit Card System
Unit Price of Credit Card is Going Down
http://www.j-credit.or.jp/information/statistics/
0
2
4
6
8
10
12
14
16
18
20
0
2
4
6
8
10
12
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
# of Transaction and Unit Price in Credit Card
: Unit Price # of Transaction
$100 (03’)
$29(15’)

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Business Opportunities
From SMCC IR Report
（Unit：$1M）
Item/Year 2013 2014 2015 2016 2017
1. Sales 1,856 1,915 1,984 2,102 2,234
2. Sales Margin 448 437 419 405 348
3.Margin Rate 24.1% 22.8% 21.1% 19.3% 15.6%
4.Q Growth - -5.5% -7.5% -8.8% -19.2%
Orb DLT can solve their problem

18. ©2017 Orb, Inc. All Rights Reserved
Unit Price - Low
Market Size - Large
High
Small
Segment 1: Matured Market
- Unit Price: Bigger than ¥1,000
- Use Case: Credit Card,Trade Finance, etc
Segment 2: Growing Market
- Unit Price: less than ¥1,000
- Use Case: Digital Money, Point, Coupon, etc
Segment 3: Emerging Market
- Unit Price: less than ¥1
- Use Case: P2P money transfer
for unbanked users, Electricity
trading, etc
Downsizing Financial System enables
“Micro Payment”
¥900 in Japan
BEP in
Financial
System

19. ©2017 Orb, Inc. All Rights Reserved
2. Post Capitalism
What will happen in Economic System?

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Analogy From Internet
TV Internet
Artists Artists
Users Users
Filters
Artist Productions
TV Channel
Advertisers
Filters
Users
Decentra
lization

21. ©2017 Orb, Inc. All Rights Reserved
Typical Example
Iskra Lawrence, a model
told she was “too big” and
unceremoniously dropped
by her agency, has a
following of over three
million on Instagram and is
now fronting American
Eagle Outfitter's latest
lingerie campaign.

22. ©2017 Orb, Inc. All Rights Reserved
Post Capitalism System
Old System New System
Users Users
Users Users
Filters
Bankers
Venture Capitalists
Credit Scoring Companies
Filters
Users
Decentra
lization

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Is Bitcoin now Bubble?

24. ©2017 Orb, Inc. All Rights Reserved
My answer is
NotYet

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Bitcoin Boosts Post Capitalism
Fiat Currency Bitcoin
2.00%
Inflation Target
Centralized
System
No more than
21M
Limited Supply
P2P System
Capital
Injection
Effect

26. ©2017 Orb, Inc. All Rights Reserved
Peter Thiel’s comment on Bitcoin
Paypal Founder, 1st
investor for Facebook
Oct. 26th - 2017 - “You
don’t need to use it to make
payments. If bitcoin ends up
being the cyber equivalent of
gold, it has a great potential left.”
Oct. 20th - 2014 - “Bitcoin
is the opposite of PayPal, in the
sense that it actually succeeded in
creating a currency….Until Bitcoin
is used to make more legal
transactions, I am a bit skeptical”

27. ©2017 Orb, Inc. All Rights Reserved
ICO have raised $1.2 billion
and now surpass early stageVC funding

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P2P Crypto Currency is CloudVC for ICO
Market Cap:
$97B
Market Cap:
$28B
Investment size:
$127B
in 4Q2016
Venture
Capital

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Bitcoin will be
Sustainable Cyber Asset
for Post Capitalism
(Not for Payment)

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Class Society on Capitalism
will be vanished by Bitcoin
Decentra
lization

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But, Crypto Currency Exchange
ruins the potential of Bitcoin
Bitcoin is not for day-trading

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Fact1: Bitcoin is P2P Network
based Infrastructure

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Processing thousands of transaction on
global P2P network in real-time is unrealistic
idea from network latency constraints
TX
TX
TX
TXTX
TX
TX
TX
TXTX
Blockchain Orb DLT
All Transaction Data is copied to All Nodes
DVi = DV (DV:Total Amount of Data)
All Transaction Data is copied to Multiple Nodes
DVi = DV / N・RF (RF: Replication Factor <<N)

34. ©2017 Orb, Inc. All Rights Reserved
Fact2: Block size limits on Bitcoin
is “1MB”
TPS 7.0
Transaction
Fee $0.001
Settlement
Time 10Min
As of June 16’As of May 12’
TPS 2.3
Transaction
Fee $5.0
Settlement
Time 10Hours

35. ©2017 Orb, Inc. All Rights Reserved
Speculative Trading in Exchange
increases average numbers of
transactions per block too much
Over 1,000%
increase in past
5 years
200Tx
as of May 12’
2,250Tx
as of May 17’

36. ©2017 Orb, Inc. All Rights Reserved
Crypto Currency Exchange with leverage
trading is accelerating speculative trading,
which reaches 1MB full size block
instantly and chronically causes hard fork
problems on Bitcoin.This ruins Bitcoin’s
potential as digital gold

37. ©2017 Orb, Inc. All Rights Reserved
Central Bank
Inflation Target is 2%
More issues on Post Capitalism:
Inflation Target and GDP
GDP is the size of
issued currencies

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GDP accelerates human consumptions
more than Earth can reproduce

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GDP causes critical problems
on humanity
Environmental
Problem
Population
Explosion
Economic
Discrepancy

40. ©2017 Orb, Inc. All Rights Reserved
We have to build Post
Capitalism System by 2030
Earth Overshoot Day - June 28, 2030

41. ©2017 Orb, Inc. All Rights Reserved
Orb reinvents Currency System on
Orb DLT combined with ICO
Inflation
Target 2.0%
Expiration No
Settlement
Model Netting
Fiat Currency S-Coin by SBI
Inflation
Target None
Expiration Yes
Settlement
Model DVP

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Growth Index in Post Capitalism should be
ECEEnergy Consumption Efficiency Per Person

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Q&A