dr craig wright, founder, hotwirepe.com - bitcoin banks? hotwirepe – aiming to be the first...

Hotwiring the world, one transaction at a time.

Hotwire Pre-emptive Intelligence

Agenda

Crypto-Currency

The Opportunities

Hotwire PE Eco-system

Hotwire PE Overview Dr Craig Steven Wright

eBanking

eLearning

Bitcoin Banks? Aiming to be the First Bitcoin

Bank Based in Asia •  Dealing with Government regulators – “what a fun space to be

in” – examining the trials and tribulations

•  Moving to Bitcoin 2.0 – are we in it already?

•  Bitcoin banks – what of the competition?

•  Do we really need any regulation?

Our mission is to lead the development of technologies that will reinvent the internet, one transaction at a time

Our vision is to create a wiser and wealthier world through our ingenuity

Hotwire PE is a web technologies company. We develop and provide technologies that drive innovation in

the banking and finance industries.

Commercial-in-Confidence

‘Miners’ create Bitcoins by using computers to solve mathematical algorithms as proof-of-work to verify and balance Bitcoin general ledger transactions.

Bitcoin exchanges trade between conventional currencies and Bitcoin, offering a way into and out of the market.

Users can either download an ‘e-Wallet’ or use our online e-Wallet website to store and receive Bitcoins. Bitcoins can be transferred/ sent from one wallet to another.

Businesses can have a QR Code on their website linked to their e-Wallet, so that customers can transact directly in Bitcoins.

New transactions are pushed to the peer-to-peer (P2P) network, for verification and validation. Once a transaction is accepted, it is then recorded on the Bitcoin general ledger called the ‘Blockchain’.

Source: Bitcoin.com

How Bitcoins work?


Governments and regulatory agencies are just beginning to understand the benefits of regulated crypto-currencies in today’s global economy.

The media likes to portray Bitcoin (and crypto-currencies in general) as a “cowboy currency”, sensationalizing the dark side of commerce.

Bitcoin Influencers

Macro-Economic

Perception

Regulatory Industry

The GFC means people are looking for financial alternatives Lesser crypto currencies entering market

Currently seen as an investment stock Infant Market with great social & media interest Limited user & media knowledge of the facts

Race to establish market position This is the opportunity


Bitcoin: Future Evolution   World-wide Currency   Future Direction •  Scalable software/hardware

platform •  Fair and competitive bitcoin

related financial products •  Increase awareness of bitcoin

and its benefits •  Facilitate the Governments

and other regulatory bodies to approve bitcoin as legal currency

  Creating a naïve way for payment

•  Replacing Visa / Master Card network

•  Replacing PayPal system

•  Creating a new contract-based system (house, cars, loans etc.)

•  Creating a pay-as-you-go system Opening the world up for business !!

Bitcoin bank that facilitates micro-payment

Bitcoin trading platform to trade any currency and anything

Adaptive eLearning framework for university, professional, self-study

Hotwire PE

Eco-System

Bitcoin Bank with Micro-Payment

Bitcoin Trading Platform

Adaptive Education Framework

Trusted Ranking

Technology (Social

Network)

Pay-as-you-go System

Systems that merge the benefits of traditional banking and finance with payment technologies for tomorrow

New trusted ranking technology from multiple sources

Pay-as-you-go system for finite data packets of multimedia


Bitcoin Banking and Trading Platform

Denariuz Bank & Coin-Exch


Bitcoin P2P Network - Today

Bitcoin is pseudo anonymous.

Thousands of ‘good’ transactions take place everyday.

It has an image of ‘bad’ transactions that are associated with money laundering, buying drugs, and other illegal activities.


Trading platform

A

Trading platform

B

Online Wallet Client A

Standalone Wallet Client A

Bitcoin P2P Payment Network

Online Wallet Client B


Denariuz Bank & Coin-Exch Trading Platform

Our bank and trading platform will introduce; -  Anti Money Laundering

System (AMLS) -  Know Your Customer

(KYC) system – Removing pseudo anonymous

Only trusted transactions are allowed between our customers. This isolates good transactions vs bad transactions. Allowing us to involve the authorities when bad transactions hit our AMLS.


Denariuz Bank


Coin-Exch Trading Platform




Trading platform

A

Trading platform

B



Trading platform

B

Denariuz Bank

Coin-Exch Trading Platform Education

Framework & Social

Network

The Eco-System introduces; -  New trusted ranking

technology for pseudo anonymous, looking at multiple sources: -  Education in our

education framework -  Social and professional

ranking via social network

-  Bitcoin transaction history

Completely isolating between good and bad transactions, easily tracking bad transaction.

Hotwire PE Eco-System





Trading platform

A

Trading platform

B


Bitcoin is pseudo anonymous. -  Thousands of ‘good’

transactions take place everyday.

-  It has an image of ‘bad’ transactions that are associated with money laundering, buying drugs, and other illegal activities.


Our bank and trading platform will introduce; -  Anti Money Laundering

System (AMLS) -  Know Your Customer (KYC)

system – Removing pseudo anonymous

Only trusted transactions are allowed between our customers. This isolates good transactions vs bad transactions. Allowing us to involve the authorities when bad transactions hit our AMLS.


The Eco-System introduces; -  New trusted ranking

technology for pseudo anonymous, looking at multiple sources: -  Education in our

education framework -  Social and professional

ranking via social network

-  Bitcoin transaction history

Completely isolating between good and bad transactions, easily tracking bad transaction.

Hotwire PE Eco-System

Bitcoin P2P Network Evolution


Denariuz Bank & Coin-Exch Roadmap

-  BitCoin eWallet created - able to send and receive Bitcoin

-  Cold Storage secure vault in place

-  Daemon created -  Send & receive

Bitcoin as Monetary Gifts

-  BitCoin eWallet P2P + Old Daemon + Cold Storage

-  BitCoin eWallet P2P + Super Daemon + Trading Platform live

-  Bitcoin Core Bank (ATM + Debit Card) live

-  Required Licence: AFS

-  BitCoin Core bank (Loans + Credit Cards) live, Required License: Credit Licence

-  Official BitCoin Bank live, Required Licenses: ADI, Insurance

-  Contract Exchange (Super Daemon)

2013 2014 2015-6 2017


2013 Initial Architecture

C01N Website eRedPacket Website Front-End

eRedPacket Mobile Apps

Middle ware

Daemon (P2P Exchange) Secure Vault

Middle Layer

Database

Mail Server

REST Server Back End

Supporting more than 100 concurrent users; within 1 second of accessing the website, send & receive Bitcoin.

Simplified complexity to the users (private key is not disclosed)


Internet Banking

Mobile Banking

Phone Banking

Middle ware

Secure Vault

Database REST Server Core Banking Software Payment

Gateway

ATM

Credit Card

BPay

HD Bitcoin Address

Payment Protocol

Real-time Bitcoin / Currency Exchange

Audit

Daemon

2014 Bitcoin Banking Architecture


Internet Banking

Mobile Banking

Phone Banking

Middle ware

Secure Vault

Database REST Server Core Banking Software Payment

Gateway

ATM

Credit Card

BPay

HD Bitcoin Address

Payment Protocol

Real-time Bitcoin / Currency Exchange

Audit

Daemon

Customer BTC Payment

Merchant BTC Payment

Insurance Investment

2014 Bitcoin Banking Architecture


2014 Bitcoin Banking research

Anti-Money Laundering measurements for pseudo anonymous payment network

Capital risk modelling of highly volatile virtual currency for utilisation by a bank

Audit system for handling large volumes of Bitcoin addresses for merchants In addition, the traditional ATM network, Credit card network, international transfer only deals with existing currency such as AUD. A new and novel system for handling these issues in Bitcoin is required to be developed to bring virtual currencies into this market segment.


M4 Silverlight Website

HTML 5 Trading Apps

Middle ware

Database REST Server

MyExchange Payment Gateway

Bank Interface

Audit

Daemon

RMB Server StockChart X

Data Server Broker CRM

2014 Bitcoin Market & Exchange Architecture


2014-5 Bitcoin Market & Exchange research

Bitcoin is a deflationary virtual currency. We aim to create a fast and stable trading and exchange platform for Bitcoin. This should lead to a stable deflationary model.

Quantitative study on the effect of deflationary virtual currency on a shorter trading timeframe is underway.

Methods for stabilising a deflationary virtual currency in a trading platform are being explored.

Increasing the performance of the P2P exchange will increase the size of the Bitcoin blockchain, which will have a negative effect on the performance of the P2P exchange, as it takes longer to verify new transactions. This is being researched.


eLearning and Social network

Integyrz


-  Learning

Management

System (LMS)

-  Massive Open

Online Courses

(MOOCs)

-  Mobile Devices

-  Rich Media

Formats

-  Interactive

Modules

-  Social-based

learning

activities

-  Level of

Knowledge

-  Learning Pace

-  Optimum

Learning Style

Online Engaging Adaptive

Adaptive Delivery Platform


Roadmap

-  Developed a MOOC (Massive Open Online Courses)

-  Based on open-source applications

-  Contained Virtual classrooms

-  Online classes

SuperMOOC 1.0 (phase 2) -  Beta trial (InfoSec

courses) -  Basic delivery

modes -  (videos; slides

and -  other documents; -  links) -  Virtual classroom

1.0

SuperMOOC 2.0 (phase 3) -  Beta Trial

(Universities) -  Adaptive Delivery

(ADP) 1.0 (static model)

-  Second Life Enabled

LMS v1.0 / Corporate v1.0

LMS v2.0 -  ADP 2.0 (Dynamic

Model) -  Biometric

Authentication v2.0 -  Biometric LSP

analysis v1.0 -  Gamified module

2.0 (3D Individual) -  Simulated Lab

Experiment 2.0 -  Animation 2.0

2013 2014 2015 2016


CORE

Content Delivery Layer

(xAPI compliant)

Presentation Layer

MOOC

Learning Management

System

Corporate Training

Indie

University Products

Self-paced modules primarily aimed at employees of government departments and large corporations

Training programs produced by individuals or other small entities

Student online interfaces integrated with educational institutions’ backend systems

Massive Open Online Courses

Basic ADP Model


2013 Adaptive Learning Platform

Online Quizzes Video Recordings

Online forums

-  Developed a MOOC (Massive Open Online Courses)

-  Based on open-source applications

-  Contained Virtual classrooms

-  Online classes

Update


2014 Adaptive Learning Platform

-  Building our own MOOC from scratch

-  Able to provide better security and scalability

-  Proprietary code -  Able to handle 1

million users and several thousand courses

2014


Investment


Financial Position


Capital committed to date:

People, plant & equipment $ 4 million (500K per month)

Software and external IP $ 66 million

eLearning IP & business planning $ 10 million

$ 80 million +

Revenue commences

Denariuz from July 1 2014 (2nd quarter of Australia’s financial year)

*This revenue not included in any of our displayed projections

The Australian Government supports Research & Development and the Commercialisation of R&D outcomes through grants and/or rebates on money spent.

We are a recognised R&D entity with the Government.

We have received $1.4 million to date from government departments

R&D grant committed to receive an annual amount of $13-15 million between 2014-16

Additional Cash Sources


eBanking platform is designed for 1,000,000 account users and unlimited exchange users.

ATM connectivity will increase our national footprint. Merchants’ ease of access and acceptability will appeal to early adopters.

Our revenue expectations are 10 million for the three years, growing to an annualised 10 – 500 million within the first 5 years, and 3 billion within 10 years+

Our goal is to be among the second tier banks in Australia within 5-6 years.

Financial Opportunity


About us

Hotwire PE Group


-  eBanking company providing a primary suite of banking services for Bitcoin

-  Multi layer security & vault to protect Bitcoin

-  1st Release Based on Australian regulatory requirements

-  Secure Online Trading Platform

-  Allows the trade or exchange of Bitcoins - AUD

-  Expanding into the Bitcoin derivatives market

-  eLearning company

-  MOOC -  Adaptive delivery

platform providing online educational content that is tailored to the individual student’s learning style.

-  Education available to anyone with access to the web

-  IT Services company

-  Primarily provides IT services to HotwirePE group of companies

-  Excess IT capacity may be on sold to private companies or provided to not-for-profit entities

Denariuz Coin-Exch Integyrz Pholus IT

Hotwire PE group at a glance


Hotwire PE: OUR Vision

Virtual Currency Economy

C01N: eWallet

Bitcoin Market & Exchange

Bitcoin Payment & Merchant Gateway

Bitcoin Banking

Secure Wallet

P2P Exchange

•  Bitcoin for the wider community worldwide

•  Facilitate a future and stable virtual currency economy. Secure, Trust, integrity, Control against Fraud Dispute Mediation.

•  Audit Trail & Minimise users risks Keep detailed records for the transactions. The market prices for Bitcoin are kept for each transaction.

•  “Anywhere, Anytime, Any-device”

Time is everything!!

Questions

?

www.hotwirepe.com
