autonomous finance @stanford

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autonomous finance

tom ding

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we all know software eating the world the new tech middlemen rise as the old fade away

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similarly fintech unbundling banks startups offer better, cheaper and faster financial services “in an app”

source: cbinsights

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… yet banks stand mostly unchallenged

PayPal: 44B

Wells Fargo: $250B

Bank of America $136B

Goldman Sachs $66B

Lending Club

WealthFront

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protected by the great wall of regulatory monopoly

Regulatory Barrier Top of the Food chainFree Money

Wire | ACH | SWIFT

App

fractional reserve

massive bailoutsMoney transmitter

Broker/DealerMSB

Clearinge-Money

Banks

Broker | ClearingExchange

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from 2000 to 2011:

cost of running Internet application went down 100x… but not financial services.

why don’t we just build better banks?

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paypal

nokia

producer vs. middlemen

the fate of dragon slayer <in search of George Orwell in Burma>

uber

AIG

BoA

wealthfront

toyota

gold dealer

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1/ middlemen always maximize rent-seeking 2/ regulatory barrier worsen them 3/ they control gateway to wealth equality 4/ innovation stagnates w/ middlemen

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finance should be part of public infrastructure

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a robotic financial infrastructure which is: unstoppable | tamper proof | democratized

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enter ethereum: the world computer

1980

1990

2000

2005

2010

2015

Ethereum

BitcoinIBM PC

www

decentralized

centralized

aws

bittorent

world’s decentralized file network

world’s decentralized ledger

world’s decentralized computer

world’s centralized cloud of million servers

computer for everyone

connecting world’s computers

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allowing access to global mirror assets

mirror | liquidity AUTONOMOUS FINANCE

TRADTIONAL FINANCE

LOCAL “PHYSICAL”Equities & Commodities

GLOBAL MARKET NATIVE & MIRROR ASSETS

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D-BT

NASDAQ: Apple

D-AAPL

LONDON: BT

D-BOND-1

DTCC: $1.6 QUARDRILLION EUROCLEAR: 633 TRILLION

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makes possible: a global permission-less financial protocol

Decentralized applications /

smart contracts Ethereum world

computerautonomous

finance protocol

developed by string, partners and contributors

controlled by community

consumer | developer | trader

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from banker finance to autonomous finance

autonomous finance protocol

custodianship p2p exchange

p2p margin lending automated market making

bond issuance & collaterlization

DTCC NASDAQ eTrade

market makers investment banks

if autonomous finance available for everyone, what happens?

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1 financial access for everyone, free

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Micro loanMicro

investment Free Remittance

A Freedom 251 smartphone, priced at 251 rupees (less than $4)

3/4 of the world’s poor do not have a bank account, not only because of poverty, but also due to costs, travel distance

and paper work involved.”

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finance 1.0 separate systems, jurisdictions and markets

Broker ExchangeBanks

1970s & Before

5 days settlement

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finance 1.5: industry network monopoly layer upon layer of intermediaries

Transactions increase More intermediaries emerge

Complexity & Customer Costs explode

DTC

E-TRADE NASDAQ

BNY Mellon

NUMEROUS & EXPENSIVE INTERMEDIARIES

Wire/ACH

EUROCLEAR

1980s - 2015

3 day settlement

DTCC: $1.4 QUARDRILLION EUROCLEAR: EUR 633 TRILLION

CommissionSpreads

Interest on Floats Front-running

High-frequency trading

Gated entry-barrier

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2 asset becomes the new cash

001.30 Facebook!VALUE $146.9 Dusd 1.6 BTC

+4.5%

000.09 Gold Ounce!VALUE $119.07 Dusd 0.59 BTC

-1.3%

+! Send! Recv.!

1302.1 DusdAvailable for buying assets

! !

081.17 Fund – Zabel...!VALUE $110.73 Dusd 0.52 BTC

+9.7%

012.23 Google !VALUE $7,704.9 Dusd 32.78 BTC

+0.8%

Programmable & configurable…

Steady interest through margin lending coins

Global stocks & commodities.

Fractional assetsAutomatically spend from your overall balance

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liquid asset wallet blurring the line between asset and cash

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3 public market converging with private market

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Top 20 deals used to be mostly IPOs now they’re almost all private

source: a16z

Under US Securities Act, startups can only solicit and take investments from accredited investors ($1m+ net worth).

That excludes 97% of Americans from startup investing.

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4 everyone’s voice in world financial system

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5 engineer become new bankers

wealth are just “symbolic objects”

Autonomous Financial Platform (inc. global “mirror” D-assets & smart contract API)

I can easily program any financial system using autonomous finance and smart contractsCODE !

REGULATORYSYSTEM ABC

REGULATORYSYSTEM XYZ

EXCHANGENMO

EXCHANGERSV

DARK POOLNMO

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6 new world currency emerge

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autonomous finance launch - q3 2016

What would you like to build on autonomous finance?

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Q&A

https://twitter.com/tomding wechat: tomding1987