what is blockchain tech for tokyo blockchain summit dec 2015

WHAT IS BLOCKCHAIN

TECHNOLOGY & ECOSYSTEM

BLOCKCHAIN SUMMIT JAPAN - DECEMBER 2015 #BLOCKSUMMITJP

ROBERT SCHWENTKER

PRESIDENT, BLOCKCHAIN UNIVERSITY

GAIAX-BLOCKCHAIN.COM/EVENTS/421

AGENDA

What is blockchain technology?

Silicon Valley blockchain ecosystem overview

Why blockchain? Value of tech to enterprise

2

PERSPECTIVE

Developer, startup & incubator

relations across PayPal, AmEx,

Citigroup

30 IBM Certifications as

developer, administrator &

instructor

3

Emerging technology

Building & bridging

communities

Innovative engagement

Co-founder & President,

Blockchain University

EDUCATION & EVENTS FOR STARTUPS AND THE

GLOBAL BLOCKCHAIN ECOSYSTEM

4

Educate &

Certify

• Entrepreneurs

• Intrepreneurs

• Developers

• Corporations

Connect

• Conference & hackathon events

• Ideation

• Incubation & placement

Inform

• Cutting edge developments

• Robust intellectual capital

5

BLOCKCHAIN UNIVERSITY TAKES OFF!

Cryto

eco

no

mic

on

Blo

ckch

ain

glo

bal

hackin

g

2015:

Co

ho

rts

in

se

ssio

n

Blo

ckch

ain

U

niv

ers

ity

invad

es

In

dia

!

2014:

Lau

nch

• Infosys/ Finacle, Bangalore & Mysore: delivered several courses + two day corp Hackathon

• Produced 13 blockchain projects

• Bombay Stock Exchange: designed and delivered training & hackathon

• Ideation and development of innovative blockchain solutions in payments, finance, enterprise IT, media etc.

• Engaged hundreds of developer and business enthusiasts across globe to develop blockchain solutions via global partnership (San Francisco, India, Argentina)

• Produced by CCRG, Koinify & Blockchain University

• 3-day, invite only, 40 sessions, 120+ attendance (startups, researchers, enterprises, VC)

• Students pile into BCU cohorts

• Comprised of seasoned engineers, serial entrepreneurs from 500 Startups, Y Combinator, professionals from law, finance & journalism

• Launch event with key SV* blockchain startups

• Dynamic panel discussion w/ SV* block-chain heavy weights (Adam Ludwin, Tim Swanson, Atif Nazir)

block.io

200+

students

successfully

graduated,

& counting

*aka Silicon Valley

Deep

en

ing r

oo

ts

• MSFTReactor, Microsoft’s brand new space in San Francisco launches and hosts Blockchain University for accelerated blockchain education and hackathon-ing!

• OrangeSV (division of world’s largest telecom operator) partners with Blockchain University to showcase 12 demo projects from our alumni, professors and partners

Garners

Infosys

CEO high

praise!

GLIMPSE INTO IDEATION AND SOLUTIONS SPINNING

OUT OF BLOCKCHAIN UNIVERSITY

6

BitReceipt: Payment

verification and receipt service

Hashloyalty Service that allows businesses to offer

rewards/ promotions in

bitcoin

Fractional investment for the masses: e.g 100 people to buy 1

share of Berkshire at $100 each

Crypto corp: reinvent modern

corporate infrastructure by

moving all equity/legal docs

to blockchain

Open wireless

router with SPV

based

micropayment

channel

Blockchain

University

produced

over 60

blockchain

experiments!

EDUCATING PEOPLE & BUSINESSES,

“ONE BLOCK AT A TIME!”

Over 150 videos!

Approximately 20,000 views!

Over 300 developers & other professionals graduated!

7

INFOSYS CASE STUDY BENGALARU & MYSORE, INDIA

Client challenge:

to understand how blockchain technology

will impact their clients, and how they can

develop competitive solutions to help them

Blockchain University Approach:

On-site one week immersive course; in

conjunction with 72-hour

innovation/hackathon lab for lecture

application and guided idea & prototype

creation

Client Business Impact:

Engaged in ongoing education with us to

remain well-versed in real-time tech

developments affecting their clients, and is

exploring other ways to create solutions for

them; business produced 13 blockchain

projects in-house

8

PROVIDING IN-DEPTH EXPLORATIONS OF

BLOCKCHAIN LEDGER TECHNOLOGIES

Technology training program

Ideation & prototyping

• Blockchain landscape

& ecosystem

• Blockchain

technologies &

cryptography

• Hash functions

• Asymmetrical

encryption

• ECDSA, security

• Transactions, Blocks

• Proof of work, Mining

• Peer-to-peer protocol,

transaction pools

• Wallets

• Security, identity

• Payment protocol

• Sidechains

• Merge mining

• Scalability

• Forking the

blockchain

• Apps on the

blockchain

• Smart contracts

• Ethereum basics

9

PROGRAM CLASS TOPICS

DE

LIV

ER

AB

LE

S

BLOCKCHAIN UNIVERSITY

SECRET SAUCE

10

Innovative

experiential

curriculum

Industry-

renowned

professorship

Extensive

global

network of

blockchain

peers

We are dedicated to

providing an advanced

learning structure consisting

of comprehensive academic

instruction and solution-

oriented design thinking,

brought to life by hands-on

experiential training.

We take pride in having the

brightest leading blockchain

minds as our instructors, so

our students learn from a

high quality league. (e.g. Vitalik Buterin, Ethereum

Founder &CEO, Atif Nazir,

Block.io Founder & CEO, Ryan

Smith, Chain CTO, Matthieu Riou,

BlockCypher Founder)

We are focused on

cultivating and building a

multi-disciplinary global

ecosystem to promote the

education and proliferation

of innovative blockchain

technology solutions and

applications across

industries.

AGENDA

What is blockchain technology?

Silicon Valley blockchain ecosystem overview

Why blockchain? Value of tech to enterprise

11

WHAT’S A BLOCKCHAIN

12

Protocol for building an immutable

historical record of transactions

Network of communicating computer

nodes running blockchain software

Each node validates transactions

“Blocks” are groups of transactions that

have been computationally verified by

miners

Multiple independent verifications to avoid

double spend

BLOCKCHAIN CHARACTERISTICS & BENEFITS

13

Public ledger system

that records &

validates

Transactions

authorized my miners

Removes need for

intermediaries

Distributed

Secure & reliable,

transparent

Immutable, hacking-

resistant

Real-time settlement,

operational cost

savings

Reduced risk

Easier for

law

enforcement to trace than

cash, gold or

diamonds

TYPES OF LEDGERS

• Open

• Consensus through pseudonymous/ anonymous validation

Unpermissioned

• Closed

• Consensus through known/ trusted validators

Permissioned

14

Gaining

enterprise

popularity

DISTRIBUTED LEDGER:

NETWORK THAT RECORDS OWNERSHIP

THRU SHARED REGISTRY

15

Source: Santander “Fintech 2.0 Paper”

Blythe Masters Chair of the Board of

Santander Consumer USA

“About as seriously as you

should have taken the

internet in "the early 1990's.”

“How seriously should you

take blockchain technology?”

16

WORLD ECONOMIC FORUM SURVEY:

BLOCKCHAIN 'TIPPING POINT' BY 2023

Blockchain technology is one of SIX mega-

trends

Surveyed 800+ information & communications

executives & experts

"an emerging technology that replaces need for 3rd

party institutions to provide trust for financial,

contract & voting activities"

17

BLOCKCHAIN TECH HAS

MANY APPLICATIONS.

ONE OF THE FIRST WAS

BITCOIN.

18

FROM HTTP TO BTC

19

POWER OF BITCOIN BLOCKCHAIN

13,000 times greater

World's 500 super computers

combined The Economist

January 2015

20

EVOLUTION OF INTEREST

2009-2011: Trading token used by crypto traders, gamers, hackers

2012-2014: Bitcoin gains international attention as currency in global markets

2015: Attention switches to blockchain technology; banks and institutions which previously denied involvement now openly experimenting

21

AGENDA

What is blockchain technology?

Silicon Valley blockchain ecosystem overview

Why blockchain? Value of tech to enterprise

22

KEY SILICON VALLEY

BLOCKCHAIN STARTUPS

23

BLOCKSTREAM: RAPID & SECURE TRANSFERS WITH

BITCOIN’S FIRST PRODUCTION SIDECHAIN

New LIQUID protocol will allow bitcoin exchanges, payment

processors and traders to reduce the time in which bitcoin-

denominated funds can be transferred between accounts

24

ABRA: REMITTANCE SERVICE ON BLOCKCHAIN,

ENABLES PEOPLE TO TRANSFER DIGITAL CASH

25

Deposit Send Withdraw

CHAIN: BLOCKCHAIN DEVELOPER PLATFORM THAT

SERVES AN ENTERPRISE MARKET

26

Unleashing pre-paid

mobile airtime Eliminating fraud in

digital gift cards

Increasing efficiency

in capital markets

for example…

AGENDA

What is blockchain technology?

Silicon Valley blockchain ecosystem overview

Why blockchain? Value of tech to enterprise

27

28

HOW IMPORTANT IS THE BLOCKCHAIN TO THE

FUTURE OF BANKING & FINANCE?

29

More than half think it will

transform banking

ALL THE RIGHT SIGNALS

A billion dollars in venture capital has flowed to

more than 120 blockchain-related startups, with half

that amount invested in the last 12 months

Over thirty of the world’s largest banks have joined

a consortium to design and build blockchain solutions

Nasdaq is piloting a blockchain-powered private

market exchange

Microsoft has launched cloud-based blockchain-as-

a-service

Blockchain concepts, prototypes, and investments are

emerging in every major industry

30

FINANCIAL SERVICES FIRMS PARTNER STRATEGICALLY

WITH BITCOIN & BLOCKCHAIN STARTUPS

31

relatively small number of

startups have captured the

large majority of financial

services investments

POTENTIAL BLOCKCHAIN APPLICATIONS IN

FINANCIAL SERVICES

Currency exchange

Supply chain management

Trade execution &settlement

Trading platforms

Post-trade processing services

Correspondent banking

Remittance Peer-to-peer

transfers

Micropayments, e.g. gaming

Asset registries Regulatory

reporting, KYC, AML

32

BLOCKCHAINS AKA LEDGERS

Distributed ledgers

could save banks

as much as $20

billion annually in

infrastructure costs

by 2022

- - Spanish bank Santander - -

33

CENTRAL BANKS TO ADOPT BITCOIN TECHNOLOGY?

34

Challenge: Bitcoin

pricing is volatile

U.S. Federal

Reserve creates

new blockchain

“Fedcoin”

Fed can create &

destroy ledger

entries

(“Fedcoin”)

Anchored/ Pegged

price of Fedcoin

BE

NE

FIT

S

Enjoy benefits of

bitcoin:

• Fast

transaction

speeds

• Cheap

transaction

costs

• Ability to

transact

almost

anywhere with

anyone

while maintaining

purchasing power !

35

Capital-market

spending on

blockchain R&D could

reach $400m by 2019,

from $30m last year

WHAT ‘S NEXT

2016: race to production

Increased investment

“co-opetition” for tech

leadership

36

QUESTIONS?

schwentker@blockchainU.co

37

APPENDIX

Blockchain Investment Landscape

39

SILICON VALLEY ACTIVITY: BOOST VC

40

Investment in Blockchain

Startups Tops $50 Million

2012

2015

OTHER SV ACCELERATORS

INVESTING IN BITCOIN & BLOCKCHAIN

41

42

43

44

gaiax-blockchain.com/events/421

45

Developer Day with Ryan X. Charles of Blockchain University and Azusa Kikuchi of Gaiax