why bitcoin will change everything

Why Bitcoin will change everything Tom Ding, Founder @Coinify

because history is about shift in power structure

They say Bitcoin …• Has no intrinsic value!• Is not a legal tender!• Doesn’t solve any problem

(1) Money as a service!Bitcoin is Dollar 2.0

2000 years ago …

Chunfa – founder of ChowFarm, producing vegetables and crops

Bao - Technical nerd. Full-stack Hunter

Balanced diet, Happier life

Value Exchange of Three parties

Life simplified with cows

Yet, Cow get ill

Let’s tokenize Cow

100 HuangDollar = 1 Cow

=

Aha moment: Villagers never redeem cow.

Let’s print more HuangDollars

Sad story of Zimbabwe• First Dollar: ZWD (1980)!

1.47 USD: 1 ZWD!

…….!

• Third Dollar!

1 ZWR = 10 billion ZWN

A 100-trillion-dollar bill, it turns out, is worth about $5.

Worldwide inflation

Recap- Money = debt!

- Dollar is a technology!

- Cryptocurrency is Dollar 2.0: Solving for Principal-Agent risk

Bitcoin / Cryptocurrency!

■ Predefined supply algorithm!

■ Vote by money

Central Bank!

- Create money!- Set interest rate & reserve

requirement!- NO opt-out

(2) Permission-less Innovation

Innovation accelerates with decentralization

1430s: Press

1980s:

Personal

Computer

1984: 3D

Printing -

manufactur

ing

1989: Web!

2000s: Blog/

Twitter

2009 :

Bitcoin –

finance

How can cryptocurrency help?

❖ Decentralized financial innovations - e.g. pool insurance !

❖ 5th protocol: Value exchange layer (e.g. Uber)!

❖ MaidSafe: Decentralizing Internet

(3) Social contract and enforcement

- Thomas Hobbes <Social Contract>

“… that a man be willing, when others are so too, … , to lay down this right to all things; and be contented with so much liberty against other men as he would

allow other men against himself.” Constitution

Laws

Sovereign

Corp

Business Contracts

Non-profit LLP

Cryptocurrency enabling new org structure

❖ Why: Principal-Agent-Customer!❖ Distributed software foundations!❖ Charity / Investment Vehicle!❖ Autonomous public service!❖ Crowd Jury

Recap – 3 layers of innovation

Money as a service: Bitcoin & Altcoins

Permission-less innovation: Maidsafe, Counterparty

Social contracts: Ethereum

–Steve Jobs

“Life can be much broader once you discover …Everything around you that you call life was made up by people that were no smarter than you and you can change it, …”

Thought Experiment 2!If X never invented, given X and Y, would Y be a no brainer?

Appendix: Evaluating Disruptive Technology

Often disguised as cheaper but inferior, or better but too expensive

Thought Experiment 1!Assuming 100% adoption,, would it be a better world?

Thought Experiment 3: What if it becomes 100x cheaper, AND 100x faster?

Appendix: Further Resources

❖ Bitcoin-Dev Mailing List !

❖ JayWSalon BitCoin SIG!

❖ Sillicon Valley Bitcoin Meetup : Every Tue @ Plug n Play!

❖ Stanford Bitcoin Meetup (Palo Alto)!

❖ Ethereum Meetup!

❖ SV Counterparty Meetup (In progress)