Time will tell…..
The Blockchain is the glue that is going to
drive a productivity revolution across the
globe on par with what Henry Ford did
with the automobile.
— Paul Brody, Americas Strategy Leader,
Technology Sector, Ernst & Young
>USD 1 bln invested in Bitcoin/Blockchain
A vocabulary list of currencies
− National currency
− Bonus points/vouchers, e.g., frequent flyer miles
− Digital currency
In-game currencies, e.g., Stardollars, Farmville cash
Virtual world currencies, e.g., Linden dollars, PEDs
Mobile currency, e.g., M-pesa
Cryptocurrency, e.g., Bitcoin
Real cash economy in Entropia Universe
•GDP >USD 440 mln
•PEDs <--> USD, EUR
•Record virtual good:
What is so novel about Bitcoin?
• Distributed timestamped
• Decentralized, P2P network
• Proof-of-work algorithm
• All transactions ever made
• Chronology and integrity
enforced by cryptography
• No third party overseeing
Sluggish growth in bitcoin usage?
Users satisfied with current payment systems that
Practical difficulty of purchasing bitcoins
Volatility of bitcoin’s value relative to governmentissued
Perception that bitcoin is insecure
Perception that only used for money laundering, drugs, etc.
Questions over bitcoin’s legal status
Irreversible and unforgiving nature of bitcoin transactions
Lack of support for bitcoin in mainstream financial sector
- Andreas Antonopolous
Saying that Bitcoin is a currency
is like saying that the internet is email.
Currency is just the first app!
Decentralized and distributed
• Robust, no central control or authority required to
coordinate behavior or interaction
• Shared public history of all transactions
Displaces roles of trusted third parties
• Can’t do same transaction twice
• No transaction repudiation
• Initial entry requires trust but then system operates on
Benefits of blockchain for financial services
Lower costs through shared infrastructure
Faster settlement that leads to lower capital
and liquidity needs
Increased transparency, especially with cross
Greater security through cryptography,
Citi Research, Jan 2016
Betting on the blockchain - together
>40 banks and counting…
Goldman Sachs, JPMorgan,
Credit Suisse, Barclays,
Commonwealth Bank of Australia,
State Street, RBS, BBVA, UBS,
Nordea, SEB, + ……
What can be decentralized using blockchains?
• Trading, stocks, bonds,
• Contracts, notary services
• Law, dispute resolution,
• Matchmaking services
• Crowdfunding, peer-to-peer lending
All our knowledge is about the past, but all our
strategic decisions are about the future.
What we don’t know
we don’t know
Most of what we need to know
to make good decisions today
is outside our comprehension:
We don’t even know it’s there.
What we know
we don’t know