A whitepaper presenting architecture analysis and use-case strategies for Billon, prepared by 11:FS, a leading UK fintech consultancy

1. BILLON
Whitepaper / Use-case Strategy!
07 October 2017
1

2. Our current understanding of Billon
Lightweight architecture (peers only hold own
transactions)
Strengths:
Billon has built a lightweight, proprietary technology stack that allows peer-to-peer payments and data
exchange over a decentralized network. The core solution is designed to integrate with existing banking
systems and infrastructure (e.g., ATM), and purposed to work on small nodes, off-line as well as on-line
Considerations:
Transactions include a rich set of data
Lower cost payments, with no fixed cost, enabling
micropayments
Enables non-cash payments without a bank account
Proprietary technology stack, requires greater vetting
from clients
Transactions potentially require larger amount of
bandwidth (to be optimised)
End customers redeeming from digital to physical cash
are subject to 3rd party fees
High-availability serving off-line clients (beta testing)
Designed to meet regulatory compliance requirements,
enabling integration to banks and infrastructure
Technical:Business:
2

3. Architecture Analysis – Technical Overview
Distributed Multi-channel ledgersPermissioned
blockchains
Stateless
Stateful
Multi-channel
Mono-channel
“blockchains”
R3 Corda,
DAH GSL
Hyperledger
fabric v1.0
Chain Protocol,
Kadena ScalableBFT +
Pact
Hyperledger Sawtooth Lake,
Multichain
Tezos
Billon
Sources: Company Websites, 11:FS Team Analysis; DLT Taxonomy: Colin Platt 2017
Billon’s technology stack builds upon privacy, whilst ensuring lower overhead through a stateless design
Stateless: Billon’s platform has
defined parameters which
incorporate all inputs required to
calculate account balances.
Multi-channel: Transactions are
only passed to nodes affiliated
with each transaction set, i.e. not
distributed to all nodes. This also
allows for parallelization of
transactions.
Tailored for payments:
Architecture lends itself well to uses
which value privacy and require data
consistency and speed. Billon also
requires a relatively low amount of
data to be stored by peers.
3

4. Architecture Analysis – Multi-Channel Focus
Sources: Company Websites, 11:FS Team Analysis; DLT Taxonomy: Colin Platt 2017
Billon’s technology stack builds upon privacy, whilst ensuring lower overhead through a stateless design
Billon’s technology stack focusses on
functionality requires for payments,
reducing the relative size of transactions,
which increasing security
Billon operates without the need for a
central notary function, further increasing
security compared with other multi-
channel solutions
Technology is optimised for Billon’s
closed loop payments use case,
removing the need for technical trade-
offs made by other platforms
Payments focused
functionality
Centralised notary
function
Not required
Yes
Yes
Yes
No
No
4

5. Core Solution is a White Label P2P System
Bank links a client
monies safeguarding
account to Billon’s
software server (think of
this as a large escrow)
Transfers to a virtual bank
account number are
encrypted and the resulting
encrypted funds are moved
to user’s device
The user controls own
transfers. Bank sets
KYC & AML rules. An
ecosystem is created:
§ Companies
§ Merchants
§ Users
Users perceive system as
open loop as a range of
redemption options are
available (pay bills, move to
everyday account, withdraw
at ATM, top up a mobile, etc)
1 2 3 4
Personal account
How Billon’s System works:
Interconnections available
5

6. Use Cases for Billon’s USPs
Requirements / pain-points
Billon helps solve:
Billon has strengths and weaknesses, the below opportunities best utilise Billon’s USPs
eSports & Content
Monetisation
Corporate incentives
(e.g., mass payouts & microwork)
Internet of Things (IoT)
Potential opportunities –
Outlined in following pages:
Micro-payments
Remittances
Functionality required across
unreliable connections, e.g., off-line
High cost of existing solutions, e.g.
vouchers, pre-paid cards
Necessity for fast / instant payments
& settlement
Transaction size and client income
levels uneconomical for banks
Current solutions -
‘alternative payments’:
Pre-paid
cards
Vouchers
Premium
SMS
Points
6

7. Potential Opportunities – eSports
Sources: SuperData, 11:FS team estimates
eSports is a fast growing global market, with professional teams having formed to broadcast to a global viewership of nearly
200 million people in 2015 alone. Viewers are able to offer tips and payments to players and teams, an activity which has
attracted unwanted scrutiny from online payments providers.
Who occupies this market?What is the size of the market?
Global eSports revenue is expected to top $1.9
billion in 2018, with over 188 million users in 2015.
Professional eSports players can earn in the
millions.
Retreat by incumbents
Until 2016, PayPal was the largest provider of
payments for eSports, but due to uncertainty of
classification under gambling regulations withdrew
from several markets and froze the accounts of
several eSports platforms and teams.
What is the opportunity for Billon?
§ Scrutiny from existing payments providers (e.g., Paypal)
§ Instant, cross-border payments directly to players/teams
§ Global footprint, particularly across emerging markets in Asia
§ Readily internet-connected, with low cost of bandwidth
§ Young and tech savvy userbase
7

8. Potential Opportunities – Microwork
Sources: World Bank, Fiverr, Amazon & 11:FS team estimates
Microwork is a growing global market, and a subset of the larger online outsourcing market. Allowing a globally dispersed
group of job posters to be matched with an equally global portfolio of workers, for small contracts, usually on a freelance
basis.
Who occupies this market?What is the size of the market?
The World Bank estimates that the microwork
industry produced revenues in excess of $120
million in 2013, experiencing a 16% CAGR
Fiverr claims to that users have completed more
than 25 million jobs from 2010 to 2015, with one
third in 2015 alone.
How do the platforms’ charge users?
Platforms such as Fiverr and Amazon charge a 20%
commission on work carried out on their platforms,
with Amazon levying a 0.01 USD minimum fee for
each Human Intelligence Task (“HIT”).
What is the opportunity for Billon?
§ Limited penetration of existing banking
§ Fixed cost and delayed settlement of payments to workers
§ Necessity to work across a global footprint, with low
deployment costs into new markets
§ Readily internet-connected
8

9. Potential Opportunities – Internet of Things
Sources: Boston Consulting Group, Gartner & 11:FS team estimates
§ Need for accounts attached to individual devices
§ Fixed cost and delayed settlement of small payments
§ Requires agile, and scalable deployment to a wide variety of
markets and devices
§ Readily internet-connected, but with
occasionally unreliable connections
Internet of Things is a nascent market which promises to allow for global connectivity of everyday objects, ranging from
internet-connected refrigerators to automobiles. Smart, instant payments avenues allow for these devices to pay and
receive other connected infrastructure and devices for services.
Who is active in this market?What is the size of the market?
The Boston Consulting Group estimates that
spending on IoT will reach €250 billion by 2020, with
Gartner predicting that more than 20.4 million
connected devices will reach the market that year.
What is the opportunity for Billon?
9

10. Potential Opportunities – Micropayments
Sources: Let’s Talk Payments, Knowledgefabor, Paypal, Swish, Flattr, M-Coin & 11:FS team estimates 10
Non-cash micropayments has recently received renewed interest, after several false starts, technological advances has
made the prospect of smaller payments, typically less than $5, a viable opportunity.
Who occupies this market?What is the size of the market?
Let’s Talk Payments and Knowledgefaber estimate
that more than $13 billion are paid via
micropayments globally, a number that should grow
by 26% for the near future.
How much do typical payments cost?
Paypal: 1.9-3.4% + 0.30 USD
Flattr: 10%
M-Coin: 20-50% depending on network operator
Swish (Sweden-only): currently 0, reported to be
moving to 1 SEK (€0.11)
What is the opportunity for Billon?
§ Fixed cost of existing solution makes many micropayments
uneconomical
§ Instant settlement allows for more frequent, impulse
payments
§ Ability to operate p2p without merchant bank
account opens new markets

11. Potential Opportunities – Remittances
Sources: World Bank & 11:FS team estimates 11
Who occupies this market?What is the size of the market?
The World Bank estimated that over $440 billion
were remitted in 2015 from countries around the
world.
How much does remittance cost?
According to the World Bank, the average cost of
remittance in Q3 2016 was 7.42% for a $200
remittance. The average costs in South Africa and
Japan were 16.95% and 11.30%, respectively, for
the same period and transaction size.
What is the opportunity for Billon?
§ Limited penetration of existing banking
§ Fixed cost and delayed settlement of payments
§ Necessity to work across a global footprint, with low
deployment costs into new markets
§ Ability to partner with internet-connected
venues (e.g., internet cafes)
Remittance by global diaspora to friends and family back home is a global business, which is so large that it has frequently
become central to political platforms in many countries. Despite its size, the market is functionally controlled by a duopoly
which is reflected in prices charged to customers.

12. Portfolio Approach
Sources: 11:FS team estimates; Note: Not to scale 12
Given the overlap of user bases across multiple use cases, Billon and their could benefit from significant operational
synergies across multiple product lines, e.g., microwork worker sending remittances to family, E-Gaming users receiving
payments from latent use of their PCs for crowdsourced tasks.
Micropayments
eSports
IoT
Payouts
(Microwork)
Remittances

13. Costs Comparison to Traditional C/A System
Source: ABA estimates $250 to $300/year cost for checking account; bottom up analysis based on interviews; analysis 13
Billon reduces costs in:
• Account management
• Payment costs
Compliance costs cannot be
avoided, but software
controls embedded in user
nodes can reduce security
costs
Billon’s system is a pre-paid
system, so while it can be
used for loan disbursement,
exception handling on
payments are eliminated
Typical cost per
customer Billon
Account-related (one-time on-boarding)
• KYC
• Credit check & onboarding systems $20 to $30 $4 to 10 (pass thru)
Account-related (ongoing)
• Core banking system (per account)
• Fees for each channel (mobile, web, etc)
• Security systems and devices
• AML parameters for flagging investigation
• Exception handling & charge-backs
$25 to $50
$0 for dormant accounts
Core system license fee
Technology infrastructure
• Server or cloud network
• Redundant servers and backup storage
$5 to $10 Hosting fee
(hardware service modules)
Payment costs
• 3rd party processor
• Internal processing
• Fraud, chargebacks & exception handling
0.8% to 1.2% (cards)
$12 to $15
(ACH)
0
Product license $5 to $10
Negotiated
(typically revenue share)
Overall
Averages $100 to $200/
year/client
60% to 80% lower

14. Underlying Costs Comparison vs Bitcoin
14
0.00%
0.25%
0.50%
0.75%
1.00%
1.25%
1.50%
1.75%
Bitcoin Billon
Miner Fees Exchange Fee Bid/Offer Spread
Fiat denominated payments (e.g.,
EUR, USD) require a transaction
into Bitcoin currency, paying
execution fees to trading platforms
and bid-offer spreads
Costs of transactions over the
Bitcoin network averaged 1.2%
since 2015
Bitcoin transactions seek to enable
“trustless” value transfer and are
thus not a true like-for-like basis
when compared to Billon.
Direct Technology Cost, does not include additional costs, including KYC/AML, Swift fees, etc…
Negligible

15. Scalability Analysis
15
Billon is current completing
production environment scalability
tests which will be published shortly

16. Final Conclusions
16
Billon’s architecture is designed to meet the needs of use cases which demand
scale and easy integration, including mobile payments.
1
2 Cost benefits vs traditional systems are substantial, though the amount depends
heavily on the nature of current systems and mix of business
3 The opportunity to disrupt current cash, cheques, and other non-card alternative
payments is significant today. We believe there is latent demand for
micropayments, especially within Internet of Things (IoT) applications, which
remains attractive.