why how what - the blockchain

@sdwouters

THE BlockchainWHY HOW WHAT

@sdwouters

Into Bitcoin since 2013

Digital Transformation Consultant at Duval Union Consulting

Sam Wouters

@sdwouters

One of many disruptIVE PLAYERS

@sdwouters

Who has heard of Bitcoin before today?

@sdwouters

“bitcoin is digital money”

@sdwouters

Positive image?

Who has heard of Bitcoin before today?

@sdwouters

Negative image?Positive image?

Who has heard of Bitcoin before today?

@sdwouters

Who fundamentally understands Bitcoin?

Negative image?Positive image?

Who has heard of Bitcoin before today?

@sdwouters

Media that predicted the death of Bitcoin

bitcoinobituaries.com

@sdwouters

Who has heard of Bitcoin before today?

Negative image?Positive image?

Who owns bitcoins?Who fundamentally

understands Bitcoin?

@sdwouters

“We’re trying to make laws for something we don’t understand”

@sdwouters

Banks try to skip learning about Bitcoin

@sdwouters

Nearly all of them are investing in Bitcoin’s technology, the Blockchain

@sdwouters

WHY does the

Blockchain exist?

@sdwouters

HOW does it work?

WHY does the

Blockchain exist?

@sdwouters

WHAT can we do with it?

HOW does it work?

WHY does the

Blockchain exist?

@sdwouters

WHY does the

Blockchain exist?

@sdwouters

How it began in 2008: a financial systemwithout “trusted” third parties

bitcoin.org/bitcoin.pdf

@sdwouters

Banks built the most complex system in the world

*Insert image of global financial system*

@sdwouters

Why do bank transfers take days?

@sdwouters

Why can’t we use microtransactions?

Financial innovation is held back by rules and regulations

But this is innovation!

@sdwouters

Say that to the 40% unbanked adults worldwide…

And to the people who pay 5-20% money transfer fees!

Yet we can do this?

@sdwouters

The Blockchain is about more than global payments

@sdwouters

We have more debt than we can ever repay

@sdwouters

Governments struggle to track expenses

@sdwouters

We have unprecedented money printing

research.stlouisfed.org/fred2/series/AMBSL

The money in your bank loses value

Inflation Interest>

@sdwouters

If Finance is so messed up why don’t we fix it?

@sdwouters

Governments are not in charge in the financial world

Governments

Corporates

Banks

National central banks

International central banks

Central bank of central banks

@sdwouters

Despite regulation, banks won’t stop ‘misbehaving’

cnbc.com/2015/10/30/misbehaving-banks-have-now-paid-204b-in-fines.html

Resulting in "cosy" relationships between financial businesses and regulators.We are fighting a never ending flood

@sdwouters

HOW does it work?

WHY does the

Blockchain exist?

Transactions Security

The Blockchain works fundamentally different

Transactions Security

@sdwouters

Money is sent directly between two parties

@sdwouters

Money is sent directly between two parties

@sdwouters

THE BLOCKCHAIN records who owns what, and when

@sdwouters

Everyone can participate

@sdwouters

Governments and banks dislike…

because they have less control over us. They can't track what

we do with it, so people can use it for illegal activities.

CASH

@sdwouters

Governments and banks dislike…

because they have less control over us. They can't track what

we do with it, so people can use it for illegal activities.

CASH

because they have no control over us. They can however track

exactly what we do with it.

BITCOIN

@sdwouters

Anyone can see where a transaction is sent to and where it came from

@sdwouters

What criminal leaves permanent evidence?

@sdwouters

Digital currencies lowest risk in money laundering

@sdwouters

Transactions are synchronised through the network

@sdwouters

Every X minutes, they are permanently recorded in a new block in the blockchain

…

@sdwouters

Nobody can manipulate it

Transactions Security

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

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 Decentralized

All organizations The Internet & Bitcoin

@sdwouters

An open blockchain is secured by computing power from people and companies all over the world

@sdwouters

In return for their efforts, these “miners” earn Digital currency and tiny transaction fees

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

@sdwouters

When you change a transaction in the past the link to that block changes as well

@sdwouters

The network will know that your version has been messed with and reject it

@sdwouters

You need to create a longer blockchain than the entire network combined

@sdwouters

The Bitcoin network is over 25.000 times stronger than the top 500 supercomputers in the world

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

Who is in charge of the network/computers?

@sdwouters

Improvements can be proposed by developers around the world

bitcoin.org/bitcoin.pdf

…

github.com/bitcoin/bips

@sdwouters

If the majority of the network agrees, the code can be changed / UPDATED

@sdwouters

WHAT can we do with it?

HOW does it work?

WHY does the

blockchain exist?

@sdwouters

Sending money

1 BTC

@sdwouters

Sending money

0.00000001 BTC1 BTC

Money is the tip of the iceberg

@sdwouters

Logical evolution

INTERNET Transfer information

BLOCKCHAIN Transfer ownership

TEXT IMAGES PROGRAMS VIDEOS

MONEY CONTRACTS PATENTS ASSETS

@sdwouters

Everledger stores unique info and ownership of diamonds on the Bitcoin blockchain

everledger.io

@sdwouters

“The Blockchain could disrupt everything”

@sdwouters

THE BLOCKCHAIN IS AN INEFFICIENT DATABASE

@sdwouters

Better sharing of data?

WHY IS a Blockchain Amazing TO USE?

@sdwouters

3

Censorship resistance

2

Immutability

WHY IS a Blockchain Amazing TO USE?

Decentralization

4

1

Open Innovation

5

Open Access

@sdwouters

3

Censorship resistance

2

Immutability

5

Open Access

Decentralization

4

1

Open Innovation

Banks/governments won’t replicate the Blockchain

@sdwouters

Should we have forbidden these too because criminals can use them?

Technology always reflects society

@sdwouters

Remember them, they outweigh the bad minority

@sdwouters

But all these banks are investing in BLOCKCHAINS!

@sdwouters

They are no longer trying to build a “private blockchain”

@sdwouters

Some still try to build private blockchains

Controlled Innovation

Controlled Access

(Auditable) Privacy

High Transaction Capacity

No Volatile Cryptocurrency

No Mining Security Costs

@sdwouters

The Open Blockchain will create the most value

@sdwouters

Bitcoin is driven by the same force that grew the Internet to billions of users: Open innovation

@sdwouters

Don’t skip learning about it

If Bitcoin is so great, why isn’t everyone using it?

‣ Bitcoin is only 7 years old, it still needs a lot of development.

‣ This has never been tried before and it is about money, not information.

‣ Bitcoin is like the Internet in the 90s:

‣ People don't get it. ‣ It looks ugly.‣ We have few use cases.‣ People don’t see how it will

change the world.‣ Those who are disrupted by it

will do everything to stop it.‣ Mainstream 10 years later‣ Mass adoption 20 years later

@sdwouters

Perhaps you think you don’t really need it

@sdwouters

But the world does

Thanks! Want to learn more?

WWW

@sdwouters

sam.wouters@duvalunion.com

samwouters.com