Introduction to Blockchain, Cryptocurrency & Altcoins Presentation to Association of Professional Bankers, Sri Lanka

1. Champike Munasinghe
Founder/CEO Bitcoin Pvt. Ltd.
Foudner/CEO Cryptofinity Ltd.
Colombo, Sri Lanka
Blockchain, Bitcoin and Altcoins

2. Galaxy Digital, Cryptocurrency Bank is listed in Toronto Stock
Exchange
Financial services giant Northern Trust managing over US$ 10.7
Trillion Assets has significantly expanded its work with blockchain
and cryptocurrencies across multiple divisions.
Morgan Stanley has poached a 12-year veteran of Credit
Suisse to lead "digital asset markets" at the bank.
Baclays Bank gauging customer interest to open a Cryptocurrency
Trading Desk

4. The very first concept of a Blockchain was publishedin 2008
Technical Vision– The impregnable Open Source network with undisputed
ownership of the data that can never be retrospectively altered.
Political Vision – The freedom of physically owning and moving value across
borders and communities, peer to peer, without the involvement, interference,
approval or control of a central authority such as a Central Bank
Financial Vision – Intelligence built into the network to maintain flow and scarcity
of Bitcoins to increase its value exponentially against the demand.

5. Blockchain is a sequence of data ordered in a chronological order. Each set of data is called a
block and carries a timestamp, a pointer to the previous block and the stored data.
Block1 Hash Block 2 Hash
Time

7. Wallet is basically a store for the User’s Private Keys for the Blockchain. It is similar to a
private safe where you have a Digital PIN Code

8. Trading platform where fiat currencies can be exchanged to
Cryptocurrencies.
Interface similar to a Stock Exchange trading screen
Worlds biggest exchanges are Bitfinex, Kraken, Coinbase, CEX,
BitStamp and Poloniex.

9. Mining was introduced to maintain the Blockchain in a decentralized
manner
The reward for participating in the Mining process was the automatic
grant of Tokens The first such token was Bitcoin
Later it was called the “Cryptocurrency”.

10. Mining is the process which validate the transactions on the network.
In the early days of Bitcoin Mining could be done with Personal
Computers. Now you need specialized equipment.
Most of these boxes run specific protocol and software to mine a
specific Cryptocurrency.

11. Antminer S9Ethereum Mining Rig

12. Bitcoin’s value in terms of US$ has grown from 0 to $6,000 currently with a peak reaching
US$20,000 in December 2017 and a market cap of around US$ 104 Billion

13. The demand and growth is two fold.
• Users who want the flexibility, independence and anonymity provided by Bitcoin to use it
as a vehicle to store and move value in the short term
• Users who are observing the growth and investing in Bitcoin as a Medium or Long Term
asset

14. The Bitcoin algorithm is built factoring scarcity and managing supply and demand with
advancements of technology. There can ever be only 21 Million Bitcoins mined and so far
around 16.8 have been Mined.
However it would take approximately another 100-120 years to mine rest of the Bitcoins.
Why?
Bitcoin has a built in control to Halve the mining reward every 4 years. 50% Of the 21 Million
designed was mined within the first 5 years.

17. Bitcoin has a built in control to adjust the “Difficulty” of Mining a block and claiming the
reward.
As the computing power on the network increase when more miners join the network, the
difficulty also proportionally increase thus maintaining a constant network “Speed” This
mining difficulty adjustment is automatically done every 2 weeks which is the defined time to
generate 2016 blocks.

19. Altcoins are the generic name given to all Cryptocurrencies other than
Bitcoin
Ethereum was developed as a distributed computing platform and
Ripple was developed as a alternative to RTGS solutions for financial
institutions.

20. Altcoin Purpose US$ Value Market Capitalization
Ethereum Distributed Computing Platform
for Smart Contracts
$270 $27 Billion
Ripple RTGS (Real Time Gross
Settlement)
$0.26 $10 Billion
Bitcoin Cash Increase efficiency of Bitcoin $500 $9 Billion
Cardano Strike a balance between privacy
and regulatory compliance and
host smart contracts
$0.09 $3 Billion
Litecoin Faster transaction time, less
computing power
$51 $2 Billion

22. ICO (Initial Coin Oferring) is similar to an IPO where the objective is
raising funds for a specific business case or a purpose.
Investors from anywhere with a bank account or a credit card can take
part in an ICO
Documented ICOs have manage to raise over $6 Billion for projects as
diverse as Cloud Based File Storage, ERP and Farming and Distribution
of Cannabis.

23. • No dilution of equity
• Not debt
• Ability to reach investors around the world
• Faster execution compared to IPO
• Investor Returns
As decided by the promoter
Funds raised via ICO In 2018 – US$ 7 Billion
No shares issued
No interest
Can be completed in 3-4 months

24. https://elementus.io/token-sales-history

25. Prominent ICOs
Envion – Offgrid
Blockchain Mining
Raised US$ 100
Million within 30 days
from December 2017
to January 2018
Based in
Germany/Switzerland
FTV Coin –
Cryptocurrency for the
Fashion Community for
Lifestyle and glamour.
Has raised around 60M
Euro between May 2018
to July 2018. Token price
is increased from 1.10
Euro to 2.20 Euro during
the ICO. Based in France
Travel Block –
Blockchain Based
Holiday Booking
Solution
Raised US$ 25 Million
from June to July 2018.
Entirely concept based
with no physical assets
in place.
Based in UK/USA

26. Simple answer is “Absolutely Not”.
Bitcoin does not have any feature that is to identify a Pyramid
Scheme.
Basic feature of a Pyramid scheme is “Rewards based introductions”
Bitcoin and other cryptocurrencies sustain and value position
themselves based on supply and demand. It would appreciate when
there is demand and oversupply will deflate the market.

27. • Mining
• Exchanges
• ICO

28. 2017 Exchange Control Act has relaxed much of the restriction that was in place when it
comes to foreign investments.
An individual is allowed to invest US$ 250,000 in total during lifetime as foreign investments.
A corporate is allowed between US$500,000 to US$2,000,000 per annum.
Investments are allowed to be in the form of Shares, Units, Debt, Securities and Bonds.
It would be interesting to see how Cryptocurrency and ICO investments are categorized.
The Act speaks of “Digital Currency” however it is unclear how this is defined.
Central Bank has appointed a committee to evaluate Cryptocurrency adoption in Sri Lanka.

29. Sri Lanka being listed in EU Money
Laundering list is a problem in general
in the financial industry. However,
with careful planning, Cryptocurrency
can be used to bypass this temporary
blockade.

30. Government Sector
An ideal Blockchain implementation would be project approval process and building approval project
which involves numerous agencies and approvals.
For example, in the case of Building Approval, agencies involved include Local Authority, Municipality,
Utility, RDA, Tax, Banks
Another example would be the Courts system where interaction with many agencies is a must and
integrity and authenticity of documents is paramount.
Most of government process involve participation of many agencies spread across the country in order
to finalize a process. This makes it ideal for a Blockchain implementation. Single such implementation
can drastically increase efficiency of government and provide a fast service to the public.

31. Building Approval Process
Blockplanapproval
StreetLines
NonVesting
Bank
BuildingPlanApproval
Architect
Utilities
CoC
HealthInspection
TouristBoard
ExciseDepartment
InlandRevenue
OwnershipTransfer
LocalRevenueCol.
Example process for a
commercial development
such as a Hotel.

32. Champike Munasinghe
Founder/CEO Bitcoin Pvt. Ltd.
Foudner/CEO Cryptofinity Ltd.
Colombo, Sri Lank
champike@hotmail.com
+94 71 411 4348
Thank You!
www.cryptofinity.io