startupfest 2015: austin hill (blockstream) - keynote

Bitcoin & the Blockchain:the future of programmable money

July 17th, 2015

A brief history lesson

• Money has always existing in different forms– Barter, Island of Yap and Stone Money– Commodities (Foodstuff, Gold, Gems)– Coins, Paper Money (Fiat Currency)

• Credit Instruments– Merchant banking letters of credits (Milan

clearing house)

Digital Money?

• Dr. David Chaum published in mid 80s series of papers to define digital money

• Mid-90’s various attempts – all failed– Digicash, PayPal (X.com), Flooz, Cybercash,

Zeroknowledge• Who do you trust? All required trusted

intermediares

2009

2010

2011

2012

2013

2014

2015 / Today

2008

Open source software released2009

2010

2011

2012

2013

2014

2015 / Today

Commerce Begins2009

2010

2011

2012

2013

2014

2015 / Today

2009

2010

2011

2012

2013

2014

2015

Source: josicmedia.com

2009

2010

2011

2012

2013

2014

2015

“Bitcoin is evil”

“we do not see this particular experiment lasting”

Paul Krugman - Econonist

Paul Singer – Hedge fund manger

Bitcoin price rise ($10-$100)2009

2010

2011

2012

2013

2014

2015

Rise in Merchant Adoption2009

2010

2011

2012

2013

2014

2015 / TodaySource: CoinTelegraph

Bitcoin drama – the dark web2009

2010

2011

2012

2013

2014

2015 / Today

Oct-November 2013 ($125-$1120)2009

2010

2011

2012

2013

2014

2015

Bitcoin Mining Goldrush

Source: http://bitcoinomics.net/your-toaster-isnt-mining-bitcoins/

2009

2010

2011

2012

2013

2014

2015 / Today

“Personal computers in 1975, the Internet in 1993, and – I believe – Bitcoin in 2014”January 21st 2014

Marc AndreessenFounder of Netscape

Source: Andreessen Horowitz

Bitcoin drama continues Mt. Gox

Source: https://www.cryptocoinsnews.com/mt-gox-delay-investigation/

2009

2010

2011

2012

2013

2014

2015

Bitcoin price crashes2009

2010

2011

2012

2013

2014

2015

Bitcoin price crashes2009

2010

2011

2012

2013

2014

2015

2009

2010

2011

2012

2013

2014

2015

TODAY $240-$2602009

2010

2011

2012

2013

2014

2015 / Today

A new digital asset• Divisible

• Scarce

• Transferrable

• Unforgeable

• Decentralized

Source: rollsscaffold.com

Bitcoin Infrastructure Investments

21 Inc.$116m $30.5m $30m

$106m $21m

< $500m invested in Bitcoin ecosystem

Wall Street wakes up to Bitcoin

(in a big way)

Wall St. Wakes up to Bitcoin

Blockchain Infrastructure

Source: http://bitcoinomics.net/your-toaster-isnt-mining-bitcoins/

Jan’09 (0.0000) - April’15 (346,028,0956)

PowerfulDistributed

Limited

The Blockchain is a Ledger

All Ledgers Too

Stocks & Bonds

Currency

Trading

Settlement

Traditional Ledgers

Closed Systems

Hacked & Accessed

Heavy Transaction Fees Laborious Verifications

Slow Centralized

Shared Cryptographic Ledger

Using Proven Cryptography

Nodes Updates Copies of the Ledger

No Central Point of Failure

Traditional Ledgers

Closed Systems

Hacked & Accessed

Heavy Transaction Fees Laborious Verifications

Slow Centralized

Blockchain

Open Sourced

Cryptographically Secure

Network Verified Beyond Borders

Fast Decentralized

Potential Markets

• Remittances• Payments• Crowdfunding• Equity offerings (Crypto)• Derivatives, FOREX, Bonds• Smart contracts• Smart property• …

TCP/IP

Fiber Optics

TCP/IP

Fiber Optics

Provably Fair Financial Plumbing

Source: http://www.chicagomag.com/Chicago-Magazine/May-2008/Plumbers-Who-Wont-Drain-Your-Wallet/

Provably Fair, Open, Global Financial Markets

Source: http://http://www.adls.org.nz/cpd/cpd-events/170/the-financial-markets-conduct-regulations-charting-the-changes

Expanding to 2.5 Billion Unbanked

Source: social.yourstory.com

Cross-Border Commerce

Source: crossborder-ecommerce.com

Removing Third Party Friction in International Business

Source: http://tonyortega.org/

Decentralized Secure Infrastructure

Source: http://www.coda.co/

For Identity

For Assets

For Trust

Source: http://blog.bcwinstitute.org/

For Assurance

Source: http://blog.bcwinstitute.org/