open & private blockchains at cscmp benelux supply chain event

@SDWOUTERS

BlockchainsOPEN & Private

samwouters.com

Speaker on Bitcoin & Blockchain

Digital Transformation Consultant at Duval Union Consulting

WWW

sam.wouters@duvalunion.com

Sam Wouters

@sdwouters

‣ We are a digital consulting company.

‣ Founded in 2009 as DearMedia.

‣ We work for large European clients.

‣ We have a strong vision on the impact of digital and act accordingly.

‣ We are advisors, writers, coaches and entrepreneurs.

One of many DISRUPTIVE PLAYERS

Invented in 2008: a system to eliminate the need for “trusted” third parties

bitcoin.org/bitcoin.pdf

@SDWOUTERS

“bitcoin is digital money”

Who has heard of Bitcoin before today?

Positive image? Negative image?

Who fundamentally

understands Bitcoin?

Media that predicted The Death of Bitcoin

bitcoinobituaries.com

Deaths by publication:

DailyPaulCNNCity A.M.ChronBroken Librarian BTC Feed Business InsiderBloombergAbout.com Acton BizNews.comArduino TronicapenwarrAOL

Financial TimesFester’s DenDavid Seaman FortuneForbesFool.com FusionGizmodo Australia IEX International Business Times Javamazon Moneygeek

MyBroadBandMother Jones News.com.au NewStatesman NY Mag OUI Share

The New York TimesThe KernelThe Calculating InvestorStreet InsiderSputnik NewsPYMNTS.com Reuters Robert Nielsen Salon Seeking Alpha

The Underground EconomistThe Telegraph The Washington Post The Weekly StandardUSA Today Valley News VICE News Wired YahooWall Street Daily

@SDWOUTERS

Bitcoin has been running non-stop for 7+ years

160M 434K $150M $105B

Transactions Blocks in the blockchain

in transactions per day currently

Transferred over the blockchain

466M 16M 11B 160K

bitcoins transferred over the blockchain

Amount of Bitcoins that currently exist

Value of all bitcoins

companies (indirectly) accept bitcoins

Banks: Bitcoin can’t work, it’s all about the Blockchain

@SDWOUTERS

Bitcoin is a way to digitally transfer ownership

without a middleman

The blockchain is a database that records

ownership throughout time

What’s the difference?

A 5 minute explanation won’t make you understand why they matter

@SDWOUTERS

WHAT can we do with them?

HOW do they work?

WHY do blockchains

exist?

@SDWOUTERS

WHY do blockchains

exist?

@SDWOUTERS

WHY do blockchains

exist?Open Blockchains

@SDWOUTERS

Why do digital money transfers take days?

@SDWOUTERS

Fees hurt profit margins for businesses

9% FEE?

@SDWOUTERS

Financial innovation is held back by rules and regulations

@SDWOUTERSBut this is innovation!

Say that to the 40% unbanked adults worldwide…

And to the people who pay 5-25% money transfer fees

@SDWOUTERS

@SDWOUTERS

If you want to send money you have to

WAIT PAY

@SDWOUTERS

Yet we can do THIS?

@SDWOUTERS

@SDWOUTERS

This is about more than global payments

@SDWOUTERS

We have more debt than can EVER be repaid

@SDWOUTERS

We have unprecedented money printing

@SDWOUTERS

Soon you’ll be PAYING banks so they can do risky investments with your money

Resulting in "cosy" relationships between financial businesses and regulators.

We are fighting a never ending flood

@SDWOUTERS

@SDWOUTERS

WHY do blockchains

exist?Open Blockchains Private Blockchains

Make existing players a few % more efficient

Make the world a fairer place

@SDWOUTERS

HOW do they work?

WHY do blockchains

exist?

@SDWOUTERS

Open Blockchains

HOW do blockchains

work?

1 Censorship resistance

@SDWOUTERS

Ownership is TRANSFERRED directly between two parties

@SDWOUTERS

Transactions are synchronised through the network

How do we Record

transactions so nobody can change them?

@SDWOUTERS

The blockchain is a global “bookkeeping” system

It records who owns what, and when

@SDWOUTERS

@SDWOUTERS

Open Blockchains

HOW do blockchains

work?

1 Censorship resistance

2 Decentralization

@SDWOUTERS

Problems Solutions

Central point of failure Decentralized network

Expensive to secure Shared security cost

Trust who is in charge Trust a fixed set of rules

Centralized

All organizations

@SDWOUTERS

Problems Solutions

Central point of failure Decentralized network

Expensive to secure Shared security cost

Trust who is in charge Trust a fixed set of rules

Decentralized

The Internet & Bitcoin

Centralized

All organizations

The Bitcoin network is 20.000 times stronger than the top 500 supercomputers in the world

Blockchains are secured by computing power from people and companies all over the world

@SDWOUTERS

@SDWOUTERS

Open Blockchains

HOW do blockchains

work?3 Immutability

1 Censorship resistance

2 Decentralization

…

The “miners” verify transactions and add them to the next block in the Blockchain

@SDWOUTERS

Change a transaction? Change the link

@SDWOUTERS

The network will see and reject your fraud

@SDWOUTERS

To convince them you need to create a longer

blockchain than the entire network combined

@SDWOUTERS

Miners earn new currency and tiny transaction fees for their work and electricity

@SDWOUTERS

Open Blockchains

HOW do blockchains

work?3 Immutability

1 Censorship resistance

2 Decentralization

4 Open access

Send payments on any network,

without risk

An open blockchain is open to anyONE

without identification or authentication

@SDWOUTERS

@SDWOUTERS

No criminal wants to leave permanent evidence

@SDWOUTERS

Open Blockchains

3 Immutability

5 Open innovation

1 Censorship resistance

2 Decentralization

4 Open access

HOW do blockchains

work?

Anyone can develop new applications for an open blockchain, without permission

@SDWOUTERSinternetlivestats.com/internet-users/

The same force driving internet innovation for 20 years

@SDWOUTERS

Creates huge value for consumers, economic growth, jobs

@SDWOUTERS

Open Blockchains Private Blockchains

Editability 3

Centralization 4

Interoperability 1

Business innovation 5

Permissioned access 2

3 Immutability

5 Open innovation

1 Censorship resistance

2 Decentralization

4 Open access

HOW do blockchains

work?

@SDWOUTERS

WHAT can we do with them?

HOW do they work?

WHY do blockchains

exist?

@SDWOUTERS

Sending money

0.00000001 BTC1 BTC

Money is the tip of the iceberg

@SDWOUTERS

What other opportunities are out there?

Finance

Internet of Things?

Energy?

Supply chain?

Identity? Property?

Legal?

@SDWOUTERS

The major challenge of Supply Chain blockchains

Getting everyone on the same chain

@SDWOUTERS

Potential solutions: Sidechains or Interledger

blockstream.com interledger.org

@SDWOUTERS

“Blockchain could disrupt everything”

@SDWOUTERS

THE BLOCKCHAIN is an inefficient database

Imagine a massive decentralized Dropbox

synchronizing 24/7

But all these banks are investing in blockchains!

@SDWOUTERS

3 Immutability

5 Open innovation

1 Censorship resistance

2 Decentralization

4 Open access

Banks/governments won’t replicate the BlockchainOpen

Editability 3

Centralization 4

Interoperability 1

Business innovation 5

Permissioned access 2

Private

@SDWOUTERS

When open blockchains solve privacy & scalability companies may build services on them instead

Security Neutrality Development

@SDWOUTERS

Private blockchains may have “use cases” like intranets do

The BlockchainThe Internet

“Private” BlockchainsIntranets

@SDWOUTERS

Private blockchains can learn from Open ones

The BlockchainThe Internet

“Private” BlockchainsIntranets

SidechainsLive environment

@SDWOUTERS

The open Blockchain will create the most value

The BlockchainThe Internet

“Private” BlockchainsIntranets

>

samwouters.com

Speaker on Bitcoin & Blockchain

Digital Transformation Consultant at Duval Union Consulting

sam.wouters@duvalunion.com

Sam Wouters

@sdwouters

WWW