1. “Blockchain Beyond Crypto”
Building the Blockchain Ecosystem
Rotman School of Management
October 26, 2018 2018 10 26
1

2. MANIE EAGAR
• Chairman iBank Digital Asset – Digital banking solutions for corporate and retail clients to
meet their banking and financial needs.
• Founder BlockForum Canada/International – supporting Canadian and international
dialogue and leadership in showcasing best practice in blockchain, crytpoexchanges,
cryptobanking, and the emerging market for security tokens and tokenized assets.
• CEO DigitalFutures, a consultancy focusing on innovations in fintech, cryptocurrency and
blockchain technologies, and TAOs (Tokenized Asset Offerings).
CAREER HIGHLIGHTS
• International track record in banking (Barclays/ABSA), IT/telecommunications (Dimension Data
& Vodafone), investment management (J&J Group/Old Mutual), and a director of the Bitcoin
Alliance of Canada.
• First ever live weekly Blockchain TV show in China (OneTV).
• Founder and Chairman Blockchain Association of Canada.
• Helped launch the first bitcoin ATM in the world in Vancouver BC (2013).
• Invited Speaker: Canadian Senate hearings on Digital Currencies regulation (2014).
• First Canadian blockchain & fintech Study: Blockchain and Emerging Financial Technologies:
Positioning British Columbia as a Global FinTech Hub.
• First ever FinTechBook contributing author – an Amazon bestseller.
See next page for translation
2

3. MANIE EAGAR
• Chairman, iBank Digital Asset L.P. (“iBank”), based in Vancouver, Canada, is a world
leader in the facilitation and underwriting of crypto trading supported by Huobi Cloud and
lending through the first open decentralized global lending network.
• BlockForum Canada/International – –
• DigitalFutures – CEO –
TAOs
• in / IT/
J&J /Old Mutual
• (OneTV).
•
• (2013)
• (2014)
• : BC
•
3

4. The world’s first bitcoin ATM helps
Vancouver make financial history.
The machine, which went into
operation Tuesday inside Waves
Coffee House at Howe and Smithe
streets, converts bitcoins into dollars
and dollars into bitcoins, an
anonymous digital currency that is
distributed online, peer-to-peer
without any central authority and can
be used at a growing number of
Vancouver retailers and online
merchants around the globe.
http://www.vancourier.com/news/bitcoin-puts-vancouver-
in-the-virtual-money-1.678225#sthash.tAhFjDRa.dpuf
See next page for translation
4

5. http://www.vancourier.com/news/bitcoin-puts-vancouver-
in-the-virtual-money-1.678225#sthash.tAhFjDRa.dpuf
2013 10
1
5

6. What is Blockchain?
A distributed, cryptographically secure, immutable, timestamped, and transparent ledger that
establishes ownership and allows for the efficient exchange of ownership.
Paul Baran, 1964. On distributed communications. RAND
6

7. Blockchain as a Distributed Database
Key Features
• Time stamping: A blockchain is a distributed database that maintains a
continuously growing list of ordered records called blocks. Each block contains
a timestamp and a link to a previous block.
• Immutability: By design, blockchains are inherently resistant to modification of
the data - once recorded, the data in a block cannot be altered retroactively.
• Autonomous: Through the use of a peer-to-peer network and a distributed
timestamping server, a blockchain database is managed autonomously.
• Smart contracts: Blockchains are "an open, distributed ledger that can record
transactions between two parties efficiently and in a verifiable and permanent
way. The ledger itself can also be programmed to trigger transactions
automatically.”
Harvard Business Review: The Truth About Blockchain
See next page for translation
7

8. •
•
•
•
Harvard Business Review: The Truth About Blockchain
8

9. Blockchain for Managing Trust
• Permissioned blockchain: In order to contribute to
the processing of transactions and have your
‘vote’ counted, you do not need a previous
relationship with the ledger, and your vote does
not depend on having a prior identity of any kind
within the ledger e.g. Ripple nodes.
• Permissionless blockchain: Transactions are
validated and processed by those who are already
recognized by the ledger. Your vote counts
proportionally against everyone else’s, based on
the specific rules of the ledger e.g. bitcoin
mining.
See next page for translation
9

10. • :
• :
10

11. Blockchain Platform Configurations
Consensys: Decentralized Utility of the Ethereum Blockchain 11

12. Blockchain and the Digital Economy
“Blockchain technology is a significant
innovation that could transform almost every
aspect of commerce and information
management.”
• Blockchain is a foundational technology.
• It has the potential to create new foundations for
our economic and social systems, and drive
value creation, investment and exchange.
12

13. New tools for the
21st century digital
economy
What blockchain
technology has
already given us…
……
Bitcoin: A digital currency (token) for frictionless, instant
transaction and value exchange.
Distributed autonomous governance models: Decentralized
peer-to-peer networking.
Distributed ledgers: Immutable, secure, time stamped
recordkeeping.
Smart contracts: Automated business rules and legal,
actionable agreements e.g. Decentralized Applications (dApps)
(dApps)
13

14. Blockchain Fueling the Digital Economy
Some Significant Early Impacts (FinTech)
• Reaching the 2,5bn financially underserved.
• Unbanking the banked: banking’s ‘uber’ moment.
• Frictionless & low cost Forex & Remittances.
• Instant & compliant Trade & Settlement.
• Affordable Micropayments.
• ITOs/TGEs have overtaken early stage VC funding.
• Creation of new digital asset classes:
IMF Urges Banks to Invest In Cryptocurrencies
See next page for translation
14

15. • 25
•
•
•
•
• ITOs/TGEs
•
IMF
15

16. Blockchain Valuechain
Identity & Security
Digital Identity Management
Authentication & Authorization
Compliance/KYC/AML /KYC/
Governance & Risk Management
Cybersecurity
Auditing
Voting
Citizen Services
Value Exchanges
Network Infrastructure & APIs API
Document Storage & Delivery
Digital Content Management
dApp Development APP
B2B & B2C Marketplaces B2B B2C
Smart Contracts
Big Data & Predictive Analytics
Asset Registries
Gold & Diamonds
Property Titles/Land Records /
Data Storage
Supply Chain Management
Logistics
IOT/MML /
Energy Management
FinTech
Forex & Remittances
Interbank Payments
Settlements
Crowdfunding/ICOs /
Syndicated Loans
Private Shares
Treasury Repos
Loyalty Points
P2P Transfers P2P
Insurance
1
2
4
3
16

17. Digital commerce
- Mobile banking
- Micropayments
- P2P lending
Blockchain
- Digital currencies /
tokens /
- Distributed ledger
technologies
- Smart contracts
Internet of value
exchange
- Mobile commerce
- Tokenization of value
- Creative Economy
INTEROPERABILITY
Platform Convergence
Big Data
Predictive Analytics
Cybersecurity
Digital Identity Management
(KYC & AML)
Internet of Value
Internet of Assets
Machine-to-Machine Learning
Internet of Things
Artificial Intelligence
Roboadvisors
17

18. Digital asset management and value exchange
• Digital asset management and value exchange are fast becoming the virtual
market spaces where globally distributed organizations and communities connect to
barter, exchange, transact, settle and interact around different modes of digital value
exchange.
• Key sectors of the digital economy will participate in closed or open digital
economy market spaces facilitated by secure distributed ledger applications.
• As the digital economy becomes global and pervasive key focus areas will be
digital asset management and value exchange; distribution and logistics; Internet of
Things (IOT); Machine-to-Machine Data (M2M); distributed, online and mobile
payments; and global remittances and settlements via smart contracts.”
• The crossover between multiple consumer and financial domains and digital
economy technologies such as the blockchain are creating fresh challenges in
standardization interoperability, compliance and regulation.
See next page for translation
18

19. •
•
•
(IoT) (M2M
•
19

20. VALUE CREATION VALUE
MANAGEMENT
VALUE EXCHANGE
The interexchange of value:
The ‘Internet of Things’ meets the ‘Internet of Value Exchange’
Digital Asset Value Exchange (DAVEx)
(DAVEx)
20

21. Decentralized registration,
storage & distribution of value
via: distributors; exchanges;
market makers, smart contracts;
tokenization; digital currencies;
loyalty schemes; promotions etc.
Identity, assets, transactions and
usage recorded and stored in
distributed ledgers (blockchains).
The production, consumption
and interexchange of digital
goods and services
e.g. content creation (music,
artwork, books, design); smart
contracts; share certificates;
legal; accounting; machine-to-
machine trading; peer-to-peer
networking, crowdfunding;
gifting; resource, knowledge
and skills sharing; etc.
Decentralized access to, and
control of digital assets:
users, consumers, aggregators,
market spaces, resellers,
licensees, merchants, agents
and promoters of digital goods
and services.
Validation and verification of
identity and transactions.
Compliance.
Digital Asset Value Exchange (DAVEx)
VALUE CREATION VALUE MANAGEMENT VALUE EXCHANGE
See next page for translation
21

22. ; ;
, ; ; ;
;
, ,
( , ,
, ); ; ;
; ; ; P2P
, ; ; ,
:
, ,
, , , ,
,
(DAVEx)
22

23. The New Tokenized Asset Investment Class
Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske & Jack Tatar, October 2017
Means of exchange,
store of value and unit
of account.
Cryptocurrencies
“Raw” digital
resources (computer
power, storage
capacity and network
bandwidth).
Crypto
Commodities
Tokenized Assets Crypto Art &
Collectibles
Finished digital goods
and services (media,
social networks,
movies, music, games),
etc.
Tokenization of
physical assets &
resources e.g. Real
estate, energy
resources, property,
renewables, etc.
Non fungible tokens
designed to be unique
and tradeable.
See next page for translation
23

24. Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske & Jack Tatar, October 2017
24

25. Blockchain Ecosystem
Securities
Settlements
Digital Asset
Management&
Value exchange
Wealth
Management
Personal
Finance
Loyalty
Payment
Processing
,
Settlements
& Transfers
Predictive
Analytics
Big Data
Digital
(Crypto)
Currencies
Accounting
Auditing
Financial
Management
Compliance
Digital Identity
KYC/AML
Verification
Security
Crowdfunding
Investments
Venture
Capital
Foreign
Exchange
Remittances
Digital
Banking
Mobile
payments
P2P Lending
Blockchain
Shared
Ledger
Technology
FinTech
+
Blockchain
25

26. Bank of Canada
• Project Jasper PoC (with Payments
Canada)
• Discussion Paper: Central Bank Digital
Currencies: A Framework for Assessing
Why and How
Senate Banking study
• Digital Currency – You Can’t Flip This
Coin –
Digital Economy Canada
26

27. • Digital ID and Authentication Council of Canada
(DIACC) Blockchain PoC in progress with
Securekey.
Securekey PoC
• Canadian Banks: Bank of Montreal, Canadian
Imperial Bank of Commerce, Desjardins Group,
Royal Bank of Canada, Scotiabank and TD Bank,
along with IBM and SecureKey, are building a
complete ‘Concierge’ identity solution running on
IBM’s blockchain.
IBM Securekey
IBM
https://www.youtube.com/watch?v=GPhFcDnLfmA https://www.youtube.com/watch?v=llmX0nPVahs
Digital Identity Canada
27

28. ……
28

29. Canadian Exchange Plans
Clearinghouse for Digital Tokens
The Canadian Securities
Exchange to create North
America’s first clearing house
based on blockchain technology,
allowing companies to issue
digital tokens with the blessing of
regulators.
29

30. TMX‘s Shorcan Announces Cryptocurrency
Initiatives
Shorcan
• TMX’s Shorcan Digital Currency Network
(Shorcan DCN) has entered into an
agreement with Paycase Financial, a value
network and trustware provider for
decentralized financial services, to launch a
new cryptocurrency brokerage service
focused on Bitcoin and Ether.
Shorcan
Paycase
• BMO Financial Group will provide Shorcan
DCN with banking services as part of the
payment and settlement infrastructure.
Shorcan DCN
30

31. New Challenges for Regulators and Compliance
• The globalization of tokenized securities, commodities and assets demands
institutional grade products to serve the complete lifecycle of capital formation,
liquidity enablement, capital deployment and information tools bridging the crypto
and fiat currency worlds.
• Service verticals are becoming interoperable: by leveraging shared infrastructure,
we can offer a superior user experience and more competitive products that possess
unique features unmatched by any other crypto or fiat fintech company.
• Know Your Client (KYC) and Anti-Money Laundering (AML) are two major reasons
banks and other financial firms refuse to service cryptocurrency clients and to
integrate into their bank’s operations. Initiatives such as Quantex offers a
comprehensive solution to bring transparency to sources and uses of funds to
ensure our banking services are used only for legal, regulatory compliant purposes.
See next page for translation
31

32. •
•
• (KYC) (AML)
Quantex
32

33. Digital Transformation Strategy
Embed blockchain applications in your
Digital Transformation Strategy
Link
Review
milestones on
your digital
transformation
strategy
Ideation
Find key
strategic pain-
points, such as
consumer data
protection to
gain realistic
ROI
Design
Create a
strengths/asset-
class
blockchain
strategy and
strategic
performance
roadmap
Action
Develop
blockchain
awareness,
common
understanding
and desire for
engagement
Governance and Risk Mitigation: Regular Research & Progress Reports to Board,
Executives, Digital Transformation Stakeholders
See next page for translation
33

34. ROI
/
34

35. TOKENIZATION – THE NEW FORMAT
Enabling
Liquidity for
Trillions of
Dollars
In Global
Assets
Cryptocurrencies
Virtual
Assets
Securities
Blockchain is the Next Evolution of Electronic Representation of Assets
BLOCKCHAIN
Handwritten
Ledgers
Paper Certificates
Electronic
Certificates
Central Ledgers
See next page for translation
35

36. –
36

37. DRIVING THE TOKENIZED AND BLOCKCHAIN
FUTURE IN FINANCIAL SERVICES, TOGETHER.
bcblockchainforum.ca
blockforum.ca
37

38. Blockchain and capital markets transformation
• We are on the threshold of the largest capital transformation in history.
• The market is evolving from investment in cryptocurrencies to cryptoassets - tokenized
securities, commodities, and assets – a multi-trillion-dollar global market opportunity.
• Yet, lack of regulatory clarity and government expertise has been a significant cause of
uncertainty in the legal status of cryptocurrency and blockchain services and regulation, inhibiting
ecosystem development and engagement with entrepreneurs and investors alike. Also, the
challenge of cross-jurisdictional alignment that is sensitive to cultural and economic diversities.
In leading jurisdictions (20 or so by our estimate):
• Blockchain, financial and regulatory technologies and applications are converging and maturing
progressively, and a variety of integrated offerings are embracing centralized, decentralized and
hybrid models.
• Regulators are fast catching up updating current compliance and security rules or crafting fresh
approaches to oversee blockchain and ICO ventures, capital raising and investors.
See next page for translation
38

39. •
•
•
20
•
• ICO
39

40. The Digital Economy at the convergence of Fintech, Regtech, Blocktech, Cryptotech requires:
– Leadership in the new emerging capital formation flowing from ICO’s, security token and
tokenized assets offerings;
– Institutional grade cryptoasset investment, trade (exchange) and financial services;
– Building sustainable blockchain and cryptocurrency ecosystems; and
– Nextgen regulation, governance, standards and compliance
BLOCKFORUM INTERNATIONAL (BFI) is an international association hosting Roundtables
to promote private and public sector collaboration in shaping the security token and tokenized
asset economy, and the alignment of cross-jurisdictional ecosystems.
BFI ROUNDTABLE events demonstrate leadership and future scenarios in navigating
converging Blockchain, Cryptocurrency, Internet of Things, Big Data, Machine Learning, AI and
Quantum technologies.
See next page for translation
40

41. – ICO ;
– ;
– ;
–
BLOCKFORUM INTERNATIONAL BFI
BFI AI
41

42. manie@digitalfutures.co
+1 (416) 887-1472
42