A quick introduction to Blockchain and some of the use cases we can expect from it.

1. THE BLOCKCHAIN
INTRODUCTION AND IMPLICATIONS

2. QUICK SHOUT-OUT
THANKS TO DON TAPSCOTT AND SON…
This presentation draws heavily from their book: The Blockchain Revolution
*SOURCES: CNBC, FORBES
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3. ORIGINS OF THE BLOCKCHAIN
THE INTERNET ENABLES MANY THINGS BUT…
1. No mechanism to reliably establish trust without a Third Party
Third Parties are typically Governments and Businesses that invade
our privacy for Security and Profit
2. Single points of failure are insecure and cybercrime flourishes
Types of Cybercrime: Spammers, Identity Thieves, Phishers,
Zombie Farmers, Cyberbullies, Hackers, Ransomeware, etc
*SOURCES: CNBC, FORBES
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Cost of online theft: $450B (2016), estimated $2T (2019)*

4. ORIGINS OF THE BLOCKCHAIN
ESTABLISHING TRUST HAS BEEN A PERSISTENT PROBLEM…
Cryptography introduced in the early 1980s to help secure data
DigiCash (1993~1998) attempts to solve trust with “eCash” which
enables secure, anonymous online payments
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“All parties would send their inputs to God. God would reliably determine the results and return
the outputs. God being the ultimate in confessional discretion, no party would learn anything
more about the other parties’ inputs than they could learn from their own inputs and outputs.”
The God Protocol
Fails because of Third Party involvement and users have to divulge
personal information

5. INTRODUCING THE BLOCKCHAIN
THEN IN 2008 A WHITE PAPER IS PUBLISHED…
Establishes a protocol for secure peer-to-peer value transfer using cryptography
Decentralized database that stores a registry of assets and
transactions across a p2p network
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“This is the distributed trust network that the internet always needed and never had.”
-Marc Andreessen
“Satoshi Nakamoto” authored the protocol to support the
cryptocurrency Bitcoin: the Bitcoin Blockchain
Eliminates role of Trusted Third Parties (TTP) by using distributed
computations to ensure integrity

6. INTRODUCING THE BLOCKCHAIN
TODAY THE BLOCKCHAIN IS CHANGING THE WORLD.
2017 has been a landmark year (again?) for Blockchain
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*SOURCES: COINDESK
Bitcoin hits 287k TR per day, introduces $0.62 TR Free (Q1)
Japan recognizes Bitcoin as legal tender (Q2)
https://cryptolization.com/
Sept 1, 2017
Coindesk: State of Blockchain
Q1, 2017

7. THE PROMISE OF THE BLOCKCHAIN
THE BLOCKCHAIN USES THREE OLD TECHNOLOGIES…
Cryptography works best when established technologies are applied
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*SOURCES: COINDESK
PUBLIC KEY THE INTERNET INCENTIVES
Cryptographic
Validation
Distributed
Network
Protocol to Reward
Verifiers
Authentication Authorization Participation

8. THE PROMISE OF THE BLOCKCHAIN
TO POTENTIALLY IMPROVE HOW WE EXCHANGE…
Potential benefits of the Blockchain (1)
Trust: derived from the transparency of the network and assurance
of immutable records protected by cryptography
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Financial Inclusion: dramatic reductions to the cost of financial
transactions mean more people can participate in the economy
and capital can be repurposed
Personal Identity Ownership: enables a “persistent digital ID” and
enables individuals to license their personal information

9. THE PROMISE OF THE BLOCKCHAIN
A VARIETY OF VALUABLE ASSETS.
Potential benefits of the Blockchain (2)
Protecting Rights: immutable records means corrupt governments
or other institutions cannot steal assets like land titles, I.P., etc
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Cost Reduction: new business models and smart contracts can
lower various costs to business, governance, infrastructure, etc
Transparent Governance: immutable records also mean votes or
policies cannot be altered or subverted

10. HOW BLOCKCHAIN WORKS 10
https://youtu.be/M_zCjjy59cg

11. HOW BLOCKCHAIN CHANGES BUSINESS
BLOCKCHAIN CAN ALTER THE WAY WE CONDUCT SEARCH…
Blockchain enables unique ways to discover both talent and customers
Privacy: customers and talent enable what attestations they want to
be discovered by businesses
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Permanent Value: as long as the network is incentivized the
records will exist has historical record
Three-dimensional Search: horizontal, vertical, and now time

12. HOW BLOCKCHAIN CHANGES BUSINESS
HOW WE MANAGE ACCOUNTING AND GOVERNANCE…
Blockchain can enhance Accounting and Governance
Solves four big problems: 1) reliance on good behavior, 2) human
error, 3) fraud, 4) coping with new business models
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Triple-entry Accounting: eliminates or significantly reducing the
need for audit (fyi: nearly 2/3 of Deloitte’s revenue is auditing)
Debit Credit
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Jin Kevin
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8 -8
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Debit Credit
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Jin’s Book Public Book Kevin’s Book

13. HOW BLOCKCHAIN CHANGES BUSINESS
AND ENABLE SMART CONTRACTS.
Institutions are the amalgamation of their contracts
Business Management: 1) agency costs, 2) settle disputes between
management and shareholders, 3) improve communication and
consensus throughout organization
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Could automate settlement in some cases
Reduce Time and Risk: 1) negotiation price, 2) establishes capacity,
3) define scope-of-work and requirements, 4) enforcement

14. THE BLOCKCHAIN ALSO ENABLES NEW BUSINESS MODELS
BLOCKCHAIN ENABLES NEW WAYS TO EARN MONEY…
Potential business models enabled by Blockchain (1)
Rights Creators: directly reward creators of I.P. (e.g. musicians,
artists, scientists)
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Blockchain Makers: monitor disaggregated components of any
supply-chain or enable mass-customization
Blockchain Cooperatives: enable a true “sharing economy”
disaggregated from third-party platforms (e.g. Blockchain-Uber)

15. THE BLOCKCHAIN ALSO ENABLES NEW BUSINESS MODELS
AND INCENTIVIZE COLLABORATION.
Potential business models enabled by Blockchain (2)
Peer Producers: incentivize contributors to social productions (e.g.
wikipedia, Linux, Reddit) to improve contributions and innovation
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Enterprise Collaboration: identify employees for effective
contributions (e.g. Slack-on-Blockchain, Document Creation)
Platform Builders: enable co-innovations between platform
providers (e.g. Nike) and their users (e.g. Runners)

16. FIN
THANK YOU!
16
Michael A. Lesniak
www.linkedin.com/in/malesniak

17. HOW DOES THE BLOCKCHAIN IMPACT YOUR BUSINESS?
ACTIVITY
Our Customers Our Partners Our Company
Network Integrity
Distributed Power
Value as Incentive
Security
Privacy
Rights Preserved
Inclusion
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18. HOW BLOCKCHAIN IMPACTS THE “GOLDEN EIGHT”
APPENDIX ONE: FIN-TECH 18
Function Blockchain Impact
1. Authenticating Identity and
Value
Verifiable and robust identities,
cryptographically secured.
2. Moving Value: making
payments, transfer money, and
purchase goods or services
Transfer of value in very large and
very small increments without
intermediary will dramatically
reduce cost and speed of
payments.
3. Storing Value: currencies,
commodities, and financial assets
are stores of value. Safety deposit
box, a savings account, or
checking account. Money market
funds or Treasury bills.
Payment mechanism combined
with a reliable and safe store of
value reduces need for typical
financial services; bank savings
and checking accounts will
become obsolete.
4. Lending Value: credit card debt,
mortgages, corporate bonds,
municipal bonds, government
bonds, asset-backed securities,
and other forms of credit.
Debt can be issued, traded, and
settled on the blockchain;
increases efficiency, reduces
friction, improves systemic risk.
Consumers can use reputation to
access loans from peers;
significant for the world’s
unbanked and for entrepreneurs.
Function Blockchain Impact
5. Exchanging Value: speculating,
hedging, and arbitraging.
Matching orders, clearing trades,
collateral management and
valuation, settlement and custody.
Blockchain takes settlement times
on all transactions from days and
weeks to minutes and seconds.
This speed and efficiency also
creates opportunities for
unbanked and underbanked to
participate in wealth creation.
6. Funding and Investing in an
Asset, Company, Start-up: capital
appreciation, dividends, interest,
rents, or some combination.
New models for peer-to-peer
financing, recording of corporate
actions such as dividends paid
automatically through smart
contracts. Titles registry to
automate claims to rental income
and other forms of yield.
7. Insuring Value and Managing
Risk: protect assets, homes, lives,
health, business property, and
business practices, derivative
products.
Using reputational systems,
insurers will better estimate
actuarial risk, creating
decentralized markets for
insurance. More transparent
derivatives.
8. Accounting for Value: new
corporate governance.
Distributed ledger will make audit
and financial reporting real time,
responsive, and transparent, will
dramatically improve capacity of
regulators to scrutinize financial
actions within a corporation.
COPIED FROM “THE BLOCKCHAIN REVOLUTION”

19. BUILDING AN APP ECOSYSTEM ON A BLOCKCHAIN
APPENDIX TWO: ETHERIUM 19
*SOURCES: COINDESK, STATE OF DAPPS

20. APPENDIX THREE: RESOURCES 20
LEARN MORE ABOUT BLOCKCHAIN
www.coindesk.com
www.bithumb.com
www.korbit.co.kr
dapps.ethercasts.com
https://blockgeeks.com/
https://coinmarketcap.com/