A slide deck to present the crypto-currency wallets basic functions and basic security knowledge. This slide deck is shared in Shanghai Ulord Community
CoinX Trading Business Chinese PresentationRomeo Abuhan
How do you like to get paid everyday? How do you like to earn money by trading and investment? Earning is that easy. Earn everyday, over and over again with CoinX Trading.
Coinx Trading offering Bitcoin Trading opportunity with fixed daily returns.
Earn daily 0.4% to 1.5% per day.
With affiliated incomes,
Direct referral 10%, and
Binary income 10%, unlimited levels.
TRADE AND INVEST with doing nothing. No hard selling, no hassle.
Register free here:
http://ow.ly/NwGa30ewwbx
A slide deck to present the crypto-currency wallets basic functions and basic security knowledge. This slide deck is shared in Shanghai Ulord Community
CoinX Trading Business Chinese PresentationRomeo Abuhan
How do you like to get paid everyday? How do you like to earn money by trading and investment? Earning is that easy. Earn everyday, over and over again with CoinX Trading.
Coinx Trading offering Bitcoin Trading opportunity with fixed daily returns.
Earn daily 0.4% to 1.5% per day.
With affiliated incomes,
Direct referral 10%, and
Binary income 10%, unlimited levels.
TRADE AND INVEST with doing nothing. No hard selling, no hassle.
Register free here:
http://ow.ly/NwGa30ewwbx
Open-Falcon: A Distributed and High-Performance Monitoring SystemYao-Wei Ou
There are already many outstanding open-source monitoring systems. However, with rapid growing businesses and specific requirements of internet companies, the existing open-source monitoring systems are not better enough on performance and scalability.
Under the situation, Open-Falcon’s main distinguishing features compared to other monitoring system are:
- Scalability: Scalable monitoring system is necessary to support rapid business growth. Each module of Open-Falcon is super easy to scale horizontally.
- Performance: With RRA(Round Robin Archive) mechanism, the one-year history data of 100+ metrics could be returned in just one second.
- High Availability: No criticle single point of failure, easy to operate and deploy.
- Flexibility: Falcon-agent has already 400+ built-in server metrics. Users can collect their customized metrics by writing plugins or just simply run a script/program to relay metrics to falcon-agent.
- Efficiency: For easier management of alerting rules, Open-Falcon supports strategy templating, inheritance, and multiple alerting method, and callback for recovery.
User-Friendly Dashboard: Open-Falcon could present multidimensional graph, including user-defined dashboard/screen.
SRECON 2017 Asia/Australia
https://www.usenix.org/conference/srecon17asia/program/presentation/ou
40. Class 5: Overview
• The Internet and the Payment Riddle
• Money
• Satoshi Nakamoto’s Innovation
• Crypto Markets
• Blockchain Technology Use Cases
• Challenges & Assessing Viability of Use Cases
• Central Bank Digital Currencies
• Ground Truths
2
41. Internet and the Payments Riddle
• How to Move Value on the Internet
• Securely • As a Packet of Data – Peer to Peer
• Efficiently • While Prohibiting Double Spending
6
44. Money
Plato:
• Money is a ‘symbol’ devised for the purpose of exchanges
• Opposed using gold or silver for money
Aristotle:
• Solves the ‘problem of commensurability’
• ‘Money is a guarantee that we may have what we want in the future. Though we
need nothing at the moment it insures the possibility of satisfying a new desire
when it arises.’
• Four absolutes to have ‘Universal Value’:
• Durable, Portable, Divisible & Intrinsic Value
Modern Characteristics:
• Durable, Portable, Divisible, Uniform, Acceptable, & Stable
Image is in the public domain.
9
46. Money
Image by epSos.de on Wikimedia. CC BY
Image is in e p b i domain.
Image is in e p b i domain.
Cowrie Shells Jiaozi Promissory Note Fiat Paper Money
Nigeria Song Dynasty China
Image by ade o on Wikimedia. i ense CC . Image is in e p b i domain.
Image by ma k s on i k . CC BY
Silver Dekadrachm Private Bank Notes Alipay Mobile Wallet
Greece United States China
11
47. Fiat Currency
• Represented by:
• Central Bank Notes Image by epSos.de on Wikimedia. CC BY
• Central Bank Reserves &
• Commercial Bank Deposits
• Relies upon System of Ledgers
• Very Significant Network Effects:
• Accepted for Taxes
• Legal Tender for All Debts Public & Private
• Accepted throughout Economy / Optimum Currency Area
12
49. Satoshi Nakamoto: Bitcoin P2P e-cash paper
October 31, 2008
“I've been working on a new electronic cash system that's fully
peer-to-peer, with no trusted third party.”
14
50. Blockchain Technology
timestamped
append-only ledger
Secured via cryptography
• Hash functions for integrity
• Digital signatures for consent
multiple party decentralized
consensus protocol auditable database
Addresses ‘cost of trust’
(Byzantine Generals problem)
May use Native Token as incentive
• Permissioned
• Permissionless
Tamper resistant record of
• Transfers of value
• Running of computer code
15
51. Smart Contracts
• “A set of promises,
• specified in digital form,
• including protocols
• within which the parties perform on these promises.”
Nick Szabo, 1996
However ….
• Smart Contracts may not be ‘Smart’
• Smart Contracts may not be ‘Contracts’ 16
52. Crypto Market - $199 Billion (4/12/20)
17
Courtesy of Coin Dance. Used with permission.
53. Crypto Token Sectors
•Payment / Store of Value Tokens $152B – 76%
•Bitcoin ($128B), …
•Platform Tokens $29B – 15%
•Ethereum ($18B), …
•DApp Tokens $10B – 5%
•Binance Coin ($2.3B), …
•Stable Value Tokens $8B – 4%
•Tether ($6.4B), …
•Tokenized Securities and Assets
Source: Market Values from CoinMarketCap (4.12.20)
18
54. Blockchain Tech Potential Uses
• Speculative Investing
• Crowdfunding through Initial Coin Offerings
• Tokens for Exchanges, Gaming, Gambling, DeFi & File Sharing
• Tokenized Fiat (Stable Value Coins), Securities & Assets
• Payment Systems
• Trade Finance & Supply Chain Management
• Clearing, Settlement & Processing
• Central Bank Initiatives
• Digital ID & MIT Diploma
• Medical Records, Property Records, Internet of Things, Voting … 19
58. Assessing Use Cases –
First Considerations
Which side of a divide the project is on?
Is the project one that services the new crypto asset class?
Is the project one uses blockchain technology and cryptocurrencies?
Projects servicing the cryptocurrency space:
Custody solution – Coinbase, Fidelity Exchange operation – Binance, Coinbase
Software provider – Blockstream Wallet provider – Circle
Hardware company – BitMain Asset manager – Bitcoin Suisse, Galaxy
Mining pool operator – BTC, F2Pool, Poolin News service – CoinDesk
23
59. Assessing Use Cases –
Strategic Considerations
• What value creation proposition is there?
• Decentralized vs. Centralized Computing?
• Native Token filling what Gaps in Fiat Currency system?
• What are competitors (Traditional & Blockchain) doing?
• Why use append only ledgers, multiple party consensus and native token?
• What verification or networking costs can actually be reduced?
24
60. Assessing Use Cases –
Tactical Considerations
• Which data needs recording on append-only ledgers?
• Which multiple stakeholders need ‘write’ access to the shared ledger?
• What are the tradeoffs of performance, privacy, security, governance &
regulation?
• How can broad adoption and user interface be realized?
• If permissionless, what are the token incentive systems?
25
61. Assessing Use Cases –
Deeper dive
• Why use multiple party shared ledger?
• Why choose a distributed ledger solution over a centralized one?
• Why not rely on a third-party authority or host?
• Is the value proposition well distributed amongst all parties?
• What is the adoption model?
• What specific verification or networking costs can be reduced?
• Authentication? Traceability? Trust?
• Are the transaction processes & data standardized?
• How much data needs to be stored?
26
62. Incumbents’ Choices of Databases
Access
Client Server
Traditional Databases
Trusted Party Hosts Data
Trusted Party can Create, Read,
Update, & Delete (CRUD)
Client Server Architecture
Permissioned
Private Blockchain
Known Participants
Private Write Capability
Append Only Timestamped Log
Publicly Verifiable
No Native Currency Needed
Permissionless
Public Blockchain
Unknown Participants
No Central Intermediaries
Public Write Capability
Peer to Peer Transactions
Native Tokens & Incentives
? ?
?
?
?
27
63. Central Bank Initiatives
Real Time Gross Settlement
• Brazil, Canada (Project Jasper), Europe and Japan (Project Stella), Singapore (Project
Ubin), South Africa (Project Khokha)
Digital Currency
• Central Bank Claim: Bahamas (Sand Dollar), Ecuador (Dinero Electrónico), Iran
(Payman), Sweden (E-Krona)
• Commercial Bank Claim: Philippines (ePiso), Senegal (eCFA), Tunisia (e-Dinar)
• Possible Hybrid: China (Digital Currency Electronic Payment)
• Commodity Backed: U.K. (Royal Mint Gold), Venezuela (Petro)
• Other: Dubai – emCash, Saudi & UAE (cross-border pilot), Uruguay (Digital Peso)
28
65. CBDC – Opportunities
• Continue Government Provision of a Means of Payment
• Promote Competition in Banking System
• Promote Financial Inclusion & P2P Payments
• Address Payment System ‘Pain Points’
• For Some Nations, Possibly Avert Sanctions
30
66. CBDC - Challenges & Uncertainties
• Financial Stability and Potential to Increase Ease of Bank Runs
• Changes to Commercial Banks’ Deposits and Funding Models
• Effects on Credit Allocation and Economy
• Monetary Policy Implementation & Transmission
• Resilience of Open Payment Infrastructures
31
67. Ground Truths
• Nakamoto solved the payments riddle - avoiding double spending
• Money is but a social & economic construct
• We already live in an age of digital money
• Append-only logs & multiparty consensus provides a peer-2-peer alternative
• Blockchain technology can address verification and networking costs
• Adoption rests on addressing comparative viability & value proposition
32
68. Ground Truths
• Crypto markets are rife with scams, fraud, hacks & manipulation
• Cryptocurrencies have evolved into a speculative asset class
• Crowdfunding built on smart contracts & ICOs raised nearly $30 billion
• Lightly & non regulated markets provide retail investors direct way to trade
• The potential, though, to be a catalyst for change is real
33
78. Defining Technologies of the Next Decade
IoT
(intelligent
infrastructure,
autonomous
transportation, IIoT,
robotics)
Blockchain
(decentralized
infrastructure,
apps, crypto
tokens)
AI
(ML, data science,
big data)
AI
Blockchain IoT
79. Class 9: Overview
• Online Brokerage
• Robinhood & Zero Commission Trading
• Robo Advisors
• Capital Markets FinTech Startups
• Crypto Exchanges, Lending & Decentralized Finance
2
84. Zero Commission Revenue Models
9
Courtesy of Altruist. Used with permission. Source: ‘The real story behind commission free trading’, Jason Wenk, Altruist (October 16, 2019)
90. Capital Markets FinTech Startups
• Addepar (2009) – Wealth Management Platform for Financial Advisors
• Capitolis (2017) – Equities & FX Infrastructure
• Carta (2012) – Ownership Management Platform
• Cloud9 (2013) – Digitizing Voice Trading
• CloudMargin (2014) – Collateral Management
• Elefant (2018) – Digital Fixed Income Broker
• iCapital Network (2013) – Alternative Investment Platoform for
Financial Advisors
15
91. Capital Markets FinTech Startups
• IEX (2012) – Stock Exchange
• Kantox (2011) – Institutional FX Trading
• Pitchbook (2007) – Private Capital Market Research
• Q4 (2006) – Investment Research
• Trumid (2014) – Bond Trading & Data Platform
• TruValue Labs (2013) – Analytics on ESG Investing
16
92. Crypto Exchanges
• Act as agents (matching buyers & sellers) -- Traditional exchanges do as well
• Act as market makers (buying & selling from customers) -- Traditional exchanges don’t
• Hold customer funds in Custody -- Traditional exchanges don’t
• Public has direct access -- Traditional exchanges must go through a broker
• Lend money to customers for margin trading -- Securities markets use brokers or banks
• Crypto fees wide vs. Traditional markets
• Crypto Market Largely traded on Crypto only platforms – lacking direct fiat capabilities
• Not regulated for market integrity rules, rife with fake volumes and manipulation
• List tokens for fees similar to equity markets but different than currency markets
17
93. Crypto Exchanges
‘Top Tier’ Trading Volumes
18
Image by CryptoCompare. Used with permission . Source: ‘Exchange Review March 2020’, CryptoCompare (4/20)
94. Crypto Lending and Borrow
• Lending Crypto or Fiat collateralized by Crypto
•BlockFi, Celsius, CoinLoan, Crypto.com, ETHLend,
Genesis Capital, Nexo, Salt
19
104. FinTech - Finance’s Fertile Ground
Coronavirus Crisis
• Digitalization of Money, Securities and Credit
• Wide Public Acceptance of New Tech
• Legacy Customer Interface and Processing Systems
• Vast and Expanding Amounts of Customer Data
• Rapid Expansion of Computational & Analytical Power
• Reliance on Multiple Systems of Ledgers
• Infrastructure Systems’ Costs and Counterparty Risks
• Economic Rents and Centralized Concentrated Risks
10
105. Coronavirus: FinTech Incumbents & Tech
• Big Finance
• Volumes: Capital Markets, Government Debt
• Stimulus Loan Programs
• Allocations for Loan Loss Reserves
• Reliance on Connectivity
• Big Tech
• Significant Online Growth
• Possible Shifts in Views on Data Usage - Contact Tracing
11
106. Coronavirus: FinTech Startups
• Runway: Burn Rates, Cash, Revenue Model & Adoption Rates
• IPOs on Hold
• VC Investment will Slow
• Valuations Decline
• Consolidation Increases
• Sector Matters:
• Transaction fees & Consumer Credit?
• Retail, Travel, Events, Restaurants?
• Mobile Trading, Remittances, Compliance
12
107. Coronavirus: FinTech
• Additional Opportunities
• Serving Those Tapping Fiscal Stimulus & Loan Programs
• Consumer & SME Refinancing's & Consolidation Loans
• New uses & sources of Alternative Data
• Additional Challenges
• Delinquencies & Defaults
• Loan Servicing
• Business Models relying on Float 13
112. What is DeFi?
A meme and a rallying cry A global mass movement
An industry of builders A reaction to failures in traditional finance
113. Finance has not even begun it’s equivalent to the printing press
phase of the information revolution!
— Joey Krug, CoFounder of Augur and Pantera
114. 1. Inaccessible
Financial services are
exclusionary based on
arbitrary criteria like
jurisdiction and investor
accreditation
2. Inefficient
Financial services are
plagued by human
intermediaries that are
costly in terms of money
and time
Finance is overdue for a revolution
Because despite all of its successes, finance remains:
3. Opaque
Financial services are
opaque, resulting in
“surprise” over-leveraging
or “too big to fail”
systemic risks
115. 3. Transparent
DeFi services are built on
publicly auditable
blockchains
2. Efficient
DeFi services use code to
eliminate intermediaries
with rote responsibilities
1. Accessible
DeFi services are globally
accessible to anyone with
an internet connection
DeFi is an attempt to correct these failures.
Flipping the script on traditional finance, DeFi services are:
116. DeFi will do to Finance
what the Internet did to News Media
117. DeFi democratizes creation
Blogs are permissionless news media.
DeFi is permissionless finance.
Insurance, Derivatives, Options
Augur
Baskets of Assets
Set
Lending Agreements
Dharma
Synthetic Financial Instruments
UMA
118. DeFi democratizes access
NYTimes.com provides anyone with an internet connection** access to news.
Dharma.io provides anyone with an internet connection access to dollar-denominated interest.
**Excluding government regimes that censor news media. One attack vector for DeFi may be government regimes that censor finance.
Hedging, Leverage, Shorting
dYdX
Exchange any value
AirSwap, 0x, Uniswap, Kyber
Compound your wealth
Dharma
Earn in the way you want
Whisp
119. Smart contracts automate human processes that previously
needed to be “trusted”:
1. Custodians
2. Escrow agents
3. Paying agents
DeFi automates inefficient human processes
Who needs newspaper deliveries when you have the internet?
Who needs regulated custodians, escrow agents, or paying agents when you have smart contracts?
120. DeFi is systemically transparent
In 2008, it was really hard to be Michael Burry.
In 2019, all it takes to be in The Big Short is Etherscan.
121. DeFi is a revolution, creating the financial system that
was always meant to be.
122. Ok we know where we’re going,
but where are we today?
123. DeFi growth will play out in phases
PHASE 1 PHASE 2 PHASE 3
Market
Expansionary
Subsume
Legacy
Blockchain
Native
Today we’re in Phase 1, but by 2020 we’ll be market expansionary.
124. Overcollateralized loans are the "Hello World" of programmable money. —Julian Koh
1. Lending (30 Day Originations)1
a. Maker — 15.1m USD
b. Dharma — 7.9m USD
c. Compound — 3.4m USD
2. Exchange (30 Day Vol)2
a. Kyber — 18m USD
b. 0x — 13.2m USD
c. AirSwap — 5.7m USD
d. Uniswap —
DeFi Phase 1 — Blockchain Native
https://mikemcdonald.github.io/eth-defi/
Sources: 1) loanscan.io; 2) Tracker.Kyber, 0xTracker, UniSwap,
125. Every disruptor starts small
DeFi Phase 1 — Blockchain Native
Sources: loanscan.io, SEC Edgar
126. 1. Net-New Access
● Global dollar-denominated interest
● Global access to all equities
● Global information & betting markets
Sophisticated financial services in every pocket.
DeFi’s Market Expansionary phase will be defined by two broad movements:
DeFi Phase 2 — Market Expansionary
2. Net-New Products
● Parametric insurance for #AllTheThings
● Invest in entertainers, athletes, & politicians
● REITs with Region/City/Street specific profile
127. Who reads a physical newspaper anymore?
DeFi Phase 3 — Subsume Legacy
129. Smart contract insurance
Smart contracts fail. We need insurance for this.
Who’s cooking up a solution?
DeFi’s missing building blocks
What we need to go from here to there to everywhere
Better Fiat Onramps
Still takes far too long to move fiat to crypto.
Where’s my Stripe solution for this?
Better Oracles
Getting off-chain information on-chain still a
challenge. Who’s working on this?
Better Private Key Management
Hexadecimals, seed phrases, no recoverability.
Let’s fix these things!
130. We know what the future can look like.
It’s up to the builders here to make it a reality.
135. Defining Technologies of the Next Decade
IoT
(intelligent
infrastructure,
autonomous
transportation, IIoT,
robotics)
Blockchain
(decentralized
infrastructure,
apps, crypto
tokens)
AI
(ML, data science,
big data)
AI
Blockchain IoT
142. Decentralized AI Marketplaces: The Concept
What if…
e e d d a a d b e c d de e da a c e e
privately and securely in an open data exchange?
AI de c d c e e eac e de e be e ?
e e e c d be c e a ed a a c a e ab e?
Wouldn’t we…
e d MORE da a a c e a a ab e GAFA a d e
centralized entities?
a a e NEW a d BETTER da a?
a d e e e be e de , a d be e AI?
b a e a a e AI
176. 虛擬貨幣納入洗錢防制
FATF FinCEN
Proposed January 2019 1997
Passed June 2019 2013
Effectiveness June 2020 in 37 G20 countries Enforcing now
Threshold 1,000 EUR 3,000 USD
DEXs Not covered* Potential covered
Private Coin and Mixers Must comply Must comply
Applies to
Financial Institutions
YES YES
* DEX is not covered by the FATF recommendation 16