Bitcoin Sharing session @ Stanford CEO

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Why Cryptocurrency will chang everything.

Session at Stanford CEO session
by Tom Ding, founder @Koinify

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  • How I get into bitcoin
    Most fundamental innovation since Internet
    “Internet thinking paradigm” – changes of power structure, leveling playfield
  • The moral hazard of a dictator or irresponsible central government flooding the money
  • US
  • Bitcoin encourage us to rethink the old paradigms
    Financial world is especially highly regulated and considered sacred
    Decentralization also help us enforcement the freedom of innovation
  • Bitcoin Sharing session @ Stanford CEO

    1. 1. Why Bitcoin will change everything Tom Ding, Founder @Koinify
    2. 2. Me Religion: Cryptocurrency Founder @Koinify Sr. Manager @eBay U.S. and China Marketing @ Alibaba, @Trilogy
    3. 3. https://www.youtube.com/wat ch?v=Vd19SboRhVY
    4. 4. Part I - Bitcoin is Dollar 2.0 Bitcoin is a Digital Cash, without central authority for issuance nor exchange
    5. 5. Blockchain Explained Transaction amount Input & Output address A unique private key controls the fund Block 101 Block 102 Block 103 Block chain
    6. 6. Public key, Private Key & Address 2^160 address space for Bitcoin Private Key Public Key (SHA256) (RIPEMD160) Bitcoin address (160 bit) Shark attack: 2^24 PowerBall: 2^28
    7. 7. Banking system: Centralized Ledger Bank of America Private Server Hai $500 $600Yu
    8. 8. Decentralized Ledger Hai $500 $600Yu Hai $500 $600Yu Hai $500 $600Yu Computer NComputer 2Computer 1 ….. Synchronize Synchronize
    9. 9. Double spending problem Hai $500 $1000Amazon Hai $500 $600Yu Hai $500 $600Yu Computer N Computer 2Computer 1 …..
    10. 10. Solution: Proof of Work Hai $500 $600Yu Hai $500 $600Yu Hai $500 $600Yu Computer 1 ….. Computer 2 Computer N … Hashing … … Hashing … … Hashing … Found correct solve Broadcast Adopt new chain 1 2 Adopt longest chain Adopt longest chain
    11. 11. Quiz ❖ Explain what is a bitcoin wallet? ❖ Guess how large is the total bitcoin blockchain since genesis block in 2009?
    12. 12. But where does Money and Bitcoins come from?
    13. 13. Money = Debt = Economy Lubrication ❖ Barter ❖ Commodity money ❖ Precious metal / Gold ❖ Fiat money (11AD) ❖ 1944 - 1971: Bretton Woods agreement ❖ 1971: Nixon shock ❖ Bitcoin (2009) Transaction cost Standardization Divisible
    14. 14. Bernanke: Let there be money Treasury Bonds USD 1 2 +1,000,000 T-Bills - 1,000,000 USD Lend 3 +1,000,000 USD +1,000,000 USD
    15. 15. Sad story of Zimbabwe • First Dollar: ZWD (1980) 1.47 USD: 1 ZWD ……. • Third Dollar 1 ZWR = 10 billion ZWN • Fourth dollar: We’re really screwed! A 100-trillion-dollar bill, it turns out, is worth about $5.
    16. 16. Worldwide inflation
    17. 17. Satoshi: Let there be coins Transaction 1 Transaction 1 Transaction N 25 reward Block 100 Transaction 1 Transaction 1 Transaction N Block 101 25 reward +25 Bitcoins! +25 Bitcoins! Max 21,000,000 … Bitcoin Miner/Processor Bitcoin Miner/Processor
    18. 18. Recap - Money = debt - Dollar is a product (produced by government) - Cryptocurrency is Dollar 2.0: Solving for Principal-Agent risk Bitcoin / Cryptocurrency  Predefined supply algorithm  Vote by money Central Bank - Create money - Set interest rate & reserve requirement - NO opt-out VS
    19. 19. Quiz ❖ Assuming transaction fee is zero, Is Bitcoin transaction free? Why?
    20. 20. Part II - Permission less innovation & Social contract
    21. 21. Innovation accelerates with decentralization
    22. 22. How can cryptocurrency help? ❖ 5th protocol: Value exchange layer (e.g. Uber) ❖ Decentralized financial innovations - e.g. pool insurance ❖ MaidSafe: Decentralizing Internet
    23. 23. Story in Uganda ❖ https://www.youtube.com/watch?v=BrRXP1tp6Kw
    24. 24. - Thomas Hobbes <Social Contract> “… that a man be willing, when others are so too, … , to lay down this right to all things; and be contented with so much liberty against other men as he would allow other men against himself.”Constitution Laws Sovereign Corp Business Contracts Non-profit LLP
    25. 25. Cryptocurrency enabling new org structure ❖ Why: Principal-Agent-Customer ❖ Distributed software foundations ❖ Charity / Investment Vehicle ❖ Autonomous public service ❖ Crowd Jury
    26. 26. Yes, it’s all happening
    27. 27. PayPal for Bitcoin: Coinbase ❖ One of the most popular wallet/ exchange ❖ Serving 31,000+ merchants ❖ $30m+ funding form A16Z, Union square, YCombinator, etc. ❖ Daily volume $20m +++
    28. 28. Derivative: ICBIT
    29. 29. Ethereum ❖ Turing complete scripting language ❖ Contract, storage and fuel (Ether) ❖ Financial contracts, Decentralized Autonomous Organization, Voting, etc.Vitalik
    30. 30. Decentralizing Internet: MaidSafe http://maidsafe.net AWS Distributed Raised $6mil in 5hours
    31. 31. Most exciting crypto startup ever ❖ Traditional: Angel - VC - IPO ❖ Koinify: IPO on Day 1 ❖ Coin Products: ❖ Game, Apps ❖ Financial assets ❖ Celebrity / Personal Coins
    32. 32. What’s Success for Koinify ❖ US Annual Tax income: $3.3 trillion ❖ Crowdfund HyperLoop - $7 billion ❖ Government projects modularized - medical research, space projects, even university
    33. 33. Life: powered by blockchain Birth StartupFinance for College IPO WillLawsuit Powered by Blockchain Bye
    34. 34. Recap – 3 layers of innovation Money as a service: Bitcoin & Altcoins Permission-less innovation Social contracts: Ethereum
    35. 35. –Steve Jobs “Life can be much broader once you discover …Everything around you that you call life was made up by people that were no smarter than you and you can change it, …”
    36. 36. Quiz / Open discussion ❖ Most exciting crypto use case for you ❖ Implications for a world with abundant currencies
    37. 37. Questions? Email: tom@koinify.com Twitter: @tom_ding WeChat: tomding1987 Koinify is hiring! www.koinify.com CTO, Founding Engineer #full-stack #distributed #cryptography #security We Pay cash, equity & Koins!
    38. 38. Thought Experiment 2 If X never invented, given X and Y, would Y be a no brainer? Appendix: Evaluating Disruptive Technology Often disguised as cheaper but inferior, or better but too expensive Thought Experiment 1 Assuming 100% adoption,, would it be a better world? Thought Experiment 3: What if it becomes 100x cheaper, AND 100x faster?
    39. 39. Appendix: Bitcoin price ❖ Miners selling bitcoin ❖ Merchant cash out ❖ Tax ❖ Stronger regulation / Decreased liquidity ❖ User adoption growth ❖ Hoarding ❖ Fiat currency inflation / Economy conditions worsen ❖ Cross-border remittance ❖ Institutional involvement
    40. 40. Appendix: Further Resources ❖ Bitcoin-Dev Mailing List ❖ JayWSalon BitCoin SIG ❖ Sillicon Valley Bitcoin Meetup : Every Tue @ Plug n Play ❖ Stanford Bitcoin Meetup (Palo Alto) ❖ Ethereum Meetup ❖ SV Counterparty Meetup (In progress)

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