C RY P T O C U R R E N C Y
PA Y M E N T S , O P P O R T U N I T I E S , A N D C H A L L E N G E S
D E C E M B E R 3 , 2 0 ...
1 . E V O L U T I O N O F PA Y M E N T S
2 . W H A T I S C RY P T O C U R R E N C Y
3 . W H A T I S B I T C O I N
4 . H O ...
G O A L S
B Y T H E E N D O F T H I S P R E S E N TA T I O N , Y O U W I L L U N D E R S TA N D :
- W H A T I S C RY P T O...
S P E A K E R B I O
Lisa Cheng
- 7 years in Enterprise Software
- Started taking an interest in Bitcoin after seeing it tr...
T H E I N T E R N E T
1 9 8 4 - E L E C T R O N I C M A I L I S L A U N C H E D I N U S A N D C A N A D A
1 9 8 1 - I B M ...
D I G I TA L PAY M E N T S
1 9 5 0 - C R E D I T C A R D S A R E I N T R O D U C E D
1 9 6 8 - F I R S T P L A T F O R M F...
T E C H N O L O G Y PA R A L L E L S
Digital Payments: (established first, band-aid security later)
Protocol: first protoco...
B E G I N N I N G O F C RY P T O C U R R E N C Y
1 9 9 6 - E G O L D
1 9 9 7 - A D A M B A C K I N V E N T S H A S H C A S...
W H AT I S C RY P T O C U R R E N C Y ?
• CRYPTO = CRYPTOGRAPHY
• process of encrypting information for security, authenti...
W H AT I S B I T C O I N ?
• peer to peer
• digital value transfer
• pseudo anonymous
• not accessible by www
• no counter...
H O W D O E S I T W O R K ?
• Completely digital - no tangible form
• No names or identifiable information is used
• This ...
W H AT P O W E R S B I T C O I N ?
• The Bitcoin network is made up of a network of nodes (nodes are
personal/commercial c...
M A P O F B I T C O I N N O D E S
T H E B L O C K C H A I N
• Performs traditional functions of a Central Bank/Issuing Authority
by providing serial numbers...
L AT E S T B I T C O I N B L O C K S
B I T C O I N T R A N S A C T I O N S
• The average time for a new block is 10 minutes
• This is also the time it takes fo...
E X P L O R I N G B I T C O I N T R A N S A C T I O N S
H O W A R E N E W B I T C O I N S C R E AT E D ?
• The Bitcoin network is programmed to have a max
number of Bitcoins that...
B I T C O I N M I N I N G
Bitcoin mining is a reward process known as proof of work
1. Miners bundle new transactions into...
I N V E S T M E N T S I N T O
B I T C O I N M I N I N G
H A R D WA R E C O M PA N I E S :
Bitfury: $60 Million
KnC Miner: ...
H O W A R E B I T C O I N S U S E D ?
• Bitcoins are sent and received by Bitcoin addresses
• Bitcoins can be sent in whol...
H O W I S B I T C O I N S E C U R E ?
• Bitcoin addresses are secure because of ECDSA (Elliptic
Curve Digital Signature Al...
H O W I S T H E B L O C K C H A I N S E C U R E ?
• The Bitcoin Blockchain is secure because of SHA-256 (Secure
Hash Algor...
W H Y D O E S B I T C O I N W O R K ?
• There is only one official version of the Blockchain and
this version is shared by...
H O W I S B I T C O I N S T O R E D ?
• Bitcoins are kept in a wallet
• Wallets can be located on a computer, server, mobi...
B I T C O I N U S E R S , WA L L E T S , A N D T H E
B L O C K C H A I N
W H AT C A N S O M E O N E D O W I T H B T C
• Bitcoin as a currency
• Bitcoin as an ideology
• Bitcoin as a platform
B I T C O I N A S A C U R R E N C Y
Estimated Transaction Volume (USD)
$180,599,926.73 USD
B I T C O I N P R I C E
• Set by the free market
• No central authority to govern/oversee system
• The Bitcoin price diffe...
B I T C O I N P R I C E C H A R T
B I T C O I N T R A D I N G
• 24 hour market, 7 days a week
• Majority of Bitcoin trading communities located in US and Ch...
W H E R E C A N B I T C O I N B E U S E D ?
• WordPress in November 2012
• OKCupid in April 2013
• TigerDirect
• Overstock...
E X E C U T I V E D E C I S I O N
U S E R R E Q U E S T S
O R
D E C I S I O N T O A C C E P T B I T C O I N
PAY M E N T S
M A R K E T P L A C E C H A R I T Y
L I F E S T Y L E T R AV E L
E L E C T R O N I C S / T E C H N O L O G Y
B I T C O I N F O R G L O B A L T R A N S F E R S
• Growing interest among Bitcoin supporters and new
adopters to leverage...
B I T C O I N R E M I T TA N C E
C O M PA N I E S
• Abra
• Aircoinz – (Argentina)
• Align Commerce
• Beam Remit – (Ghana)
...
C H A L L E N G E S T O B T C R E M I T TA N C E
1) Lack of specifics on how they will achieve target
markets
2) Lack of f...
R E G U L AT O RY E N V I R O N M E N T
R E G U L AT I O N S H A P E S B I T C O I N
• Regulatory situation in a country determines the type of
Bitcoin companies ...
S O C I O - E C O N O M I C E N V I R O N M E N T
S H A P E S B I T C O I N
• Bitcoin is seen as a movement driven by ideo...
B E Y O N D T H E C U R R E N C Y
The Blockchain has been getting attention recently from major banks
and institutions:
Se...
B L O C K C H A I N W I T H O U T B I T C O I N
• The technology that powers Bitcoin is a platform.
• The Blockchain provi...
T E C H N O L O G Y D I S R U P T I O N
• The Blockchain demonstrates distributed consensus
• New type of networking infra...
WAY S T O P L AY W I T H T H E B L O C K C H A I N
• Create a sub currency
• Embed data
• Time stamp events
• Multi-signat...
B L O C K C H A I N P L AT F O R M S
• Ethereum - distributed computing/Smart Contract logic
• Factom - notarization permi...
U S E C A S E S T O R I E S
• Land titles
• Identity Management
• Decentralized Gaming
• Decentralized Applications
• Supp...
C H A L L E N G E S T O B L O C K C H A I N
C O M PA N I E S
• Monetization
• Demand
• Adoption
• Replacing traditional sy...
E M E R G I N G T R E N D S
• Turnkey Blockchain providers
• Financial assets on the Blockchain
• Interbank transfers on t...
W H AT S H O U L D I N S T I T U T I O N S C A R E
A B O U T R E G A R D I N G B I T C O I N ?
• According to a Report by ...
WAT C H F O R
• Block size debate
• Block reward halving
• Side chains
• Changing government regulation towards Bitcoin
• ...
C O N C L U S I O N
• Bitcoin and other cryptocurrencies essentially solve the
problem of how to securely transact in a di...
T H A N K Y O U
Q U E S T I O N S
F O R Q U E S T I O N S O R F E E D B A C K , P L E A S E F E E L F R E E T O C O N TA C...
Santander Presentation - Global Digital Innovation
Santander Presentation - Global Digital Innovation
Santander Presentation - Global Digital Innovation
Santander Presentation - Global Digital Innovation
Santander Presentation - Global Digital Innovation
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Santander Presentation - Global Digital Innovation

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Digital Payments and Cryptocurrencies - this presentation was given on Dec 3rd in Madrid to top execs at Santander Bank and Barrabes Group.

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Santander Presentation - Global Digital Innovation

  1. 1. C RY P T O C U R R E N C Y PA Y M E N T S , O P P O R T U N I T I E S , A N D C H A L L E N G E S D E C E M B E R 3 , 2 0 1 5 G L O B A L D I G I TA L I N N O VAT I O N
  2. 2. 1 . E V O L U T I O N O F PA Y M E N T S 2 . W H A T I S C RY P T O C U R R E N C Y 3 . W H A T I S B I T C O I N 4 . H O W D O E S I T W O R K 5 . B I T C O I N T R A N S A C T I O N S & M I N I N G 6 . W H E R E I S I T U S E D 7 . H O W I S B I T C O I N S E C U R E ? 8 . B I T C O I N A S A C U R R E N C Y 9 . R E M I T TA N C E S / M O N E Y T R A N S F E R S 1 0 . B I T C O I N A S A N I D E O L O G Y 1 1 . B I T C O I N A S A P L A T F O R M 1 2 . U S E C A S E S 1 3 . E M E R G I N G T R E N D S 1 4 . W H A T T O L O O K F O R 1 5 . C O N C L U S I O N Q U E S T I O N S T O P I C S
  3. 3. G O A L S B Y T H E E N D O F T H I S P R E S E N TA T I O N , Y O U W I L L U N D E R S TA N D : - W H A T I S C RY P T O C U R R E N C Y - W H A T I S B I T C O I N A N D H O W I T W O R K S - W H A T ’ S D R I V I N G I T - W H A T A R E T H E I M P L I C A T I O N S O F T H I S T E C H N O L O G Y - W H A T A R E T H E C H A L L E N G E S - A N D W H A T A R E T H E F U T U R E O P P O R T U N I T I E S
  4. 4. S P E A K E R B I O Lisa Cheng - 7 years in Enterprise Software - Started taking an interest in Bitcoin after seeing it transacted on the Deep Web - Has been getting paid in Bitcoin since 2013 - Director and Founder of Vanbex, a strategic consulting firm specializing in Bitcoin - Consulted for and worked with over 15 different Bitcoin companies and counting
  5. 5. T H E I N T E R N E T 1 9 8 4 - E L E C T R O N I C M A I L I S L A U N C H E D I N U S A N D C A N A D A 1 9 8 1 - I B M C R E A T E S F I R S T P E R S O N A L C O M P U T E R 1 9 9 0 - T I M B E R N E R S L E E C R E A T E S W O R L D W I D E W E B 1 9 9 5 - U S N A T I O N A L S C I E N C E F O U N D A T I O N R E M O V E S S T R I C T P R O H I B I T I O N O F C O M M E R C I A L E N T E R P R I S E O N T H E I N T E R N E T 1 9 9 9 - N A P S T E R D R I V E S M I L L I O N S O F P E O P L E T O WA R D S D E C E N T R A L I Z E D P E E R T O P E E R I N T E R A C T I O N
  6. 6. D I G I TA L PAY M E N T S 1 9 5 0 - C R E D I T C A R D S A R E I N T R O D U C E D 1 9 6 8 - F I R S T P L A T F O R M F O R E X C H A N G I N G E L E C T R O N I C D A TA C R E A T E D C A L L E D E L E C T R O N I C D A TA I N T E R C H A N G E ( E D I ) 1 9 7 5 - A T M S 1 9 7 9 - E L E C T R O N I C PA Y M E N T T E R M I N A L S ( E F T P O S ) L A T E 1 9 8 0 ’ S - M I C R O P R O C E S S O R WA S I N S TA L L E D S U C C E S S F U L LY I N T H E P L A S T I C C R E D I T C A R D 1 9 9 3 - E C A S H I S C R E A T E D B Y D A V I D C H A U M 1 9 9 5 - F I R S T E L E C T R O N I C ‘ WA L L E T ’ A N D C R E A T I O N O F S TA N D A R D S F O R M I C R O P R O C E S S O R C A R D S . U S F E D E R A L R E S E R V E S A Y S 9 0 % O F A L L U S T R A N S A C T I O N S A R E A L R E A D Y E L E C T R O N I C .
  7. 7. T E C H N O L O G Y PA R A L L E L S Digital Payments: (established first, band-aid security later) Protocol: first protocol for secure electronic transactions (SET) created in 1996. It was a set of security protocols that made it ‘safe’ to send credit card transaction data over open networks (the internet) - has since been replaced by 3D Secure Wallet: in 2000, an association of the 12 largest manufacturers of smart cards, special software, and credit associations announced creation of the first universal electronic wallet giving users the option to transfer their information securely and accurately Cryptocurrency: (designed using security) Protocol: Bitcoin is essentially a cryptographic protocol making it very difficult to fake or manipulate transaction data Wallet: Enables transactions in Cryptocurrency by tracking transactions and verifying user credentials without revealing any personal information http://blog.e-money.com/780/ http://www.michaelnielsen.org/ddi/how-the-bitcoin-protocol-actually-works/
  8. 8. B E G I N N I N G O F C RY P T O C U R R E N C Y 1 9 9 6 - E G O L D 1 9 9 7 - A D A M B A C K I N V E N T S H A S H C A S H 1 9 9 8 - W E I D A I I N V E N T S B - M O N E Y - N I C K S Z A B O I N V E N T S B I T G O L D 2 0 0 8 - S A T O S H I N A K A M O T O P U B L I S H E S B I T C O I N W H I T E PA P E R 2 0 0 9 - F I R S T B I T C O I N T R A N S A C T I O N
  9. 9. W H AT I S C RY P T O C U R R E N C Y ? • CRYPTO = CRYPTOGRAPHY • process of encrypting information for security, authentication, and / or verification • CRYPTO-CURRENCY= Digital Currency created using encryption techniques to regulate the supply and transfer of assets in the system • replaces the functions normally preformed by a central bank • operates independently / semi - autonomously • Presently, there are over 32 different cryptocurrencies each with a market cap over $1 million
  10. 10. W H AT I S B I T C O I N ? • peer to peer • digital value transfer • pseudo anonymous • not accessible by www • no counterfeit possible • irreversible transactions • no intermediary
  11. 11. H O W D O E S I T W O R K ? • Completely digital - no tangible form • No names or identifiable information is used • This address was created for this presentation: 1SANgPeUsmBBxQUPE85YDZrFHX3195LA8 • Bitcoin addresses are the only way to send and receive • All transactions are recorded and public • Transactions are recorded on a global ledger - the Blockchain • New transactions need to be approved by the Bitcoin network to be recorded on the Blockchain
  12. 12. W H AT P O W E R S B I T C O I N ? • The Bitcoin network is made up of a network of nodes (nodes are personal/commercial computers running a full version of the bitcoin software with a full copy of the blockchain) • Nodes validate transactions and more nodes add to the security of Bitcoin • Every time a node accepts a new transaction and relays it to other nodes, the transaction is sent through the Bitcoin network and forms blocks • These blocks of transactions form a long historical chain which is known as the Blockchain
  13. 13. M A P O F B I T C O I N N O D E S
  14. 14. T H E B L O C K C H A I N • Performs traditional functions of a Central Bank/Issuing Authority by providing serial numbers, keeping track of who has money, and verifying that transactions are legitimate • This process of a transaction being added to a block, and the block being added to the Blockchain which is confirmed by other nodes in the network is called a Confirmation • Only those transactions that are added to a block and receive confirmations, appear publicly on the Blockchain • The only information publicly viewable/recorded on the Blockchain: Bitcoin addresses and transaction values. • Essentially a distributed ledger of historical transactions
  15. 15. L AT E S T B I T C O I N B L O C K S
  16. 16. B I T C O I N T R A N S A C T I O N S • The average time for a new block is 10 minutes • This is also the time it takes for 1 Confirmation • Bitcoin companies/exchanges/services will often require 3 - 4 confirmations before the funds are recognized in the account • Attaching a fee to the Bitcoin transaction gives it priority, the higher the fee the greater the priority
  17. 17. E X P L O R I N G B I T C O I N T R A N S A C T I O N S
  18. 18. H O W A R E N E W B I T C O I N S C R E AT E D ? • The Bitcoin network is programmed to have a max number of Bitcoins that will ever be created (21 million) • The Bitcoin network awards newly minted Bitcoins to special nodes known as Bitcoin Miners • Bitcoin miners look for new transactions and bundle these into a block • Bitcoin miners compete against each other to solve a block
  19. 19. B I T C O I N M I N I N G Bitcoin mining is a reward process known as proof of work 1. Miners bundle new transactions into blocks 2. Then the latest block number in the blockchain is used to link it to the blockchain 3. Miners then use a trial and error calculation to complete the link and add their block to the Blockchain 4. This process requires a growing amount of time and resources (hashing power) to solve the number, when discovered this constitutes proof of work. 5. The current reward for creating a new block is 25 BTC, halving every 4 years.
  20. 20. I N V E S T M E N T S I N T O B I T C O I N M I N I N G H A R D WA R E C O M PA N I E S : Bitfury: $60 Million KnC Miner: $29 Million
  21. 21. H O W A R E B I T C O I N S U S E D ? • Bitcoins are sent and received by Bitcoin addresses • Bitcoins can be sent in whole amounts or smaller units • Bitcoin can break down into 8 decimal places • The smallest unit is called a satoshi 0.00000001BTC • Bitcoin addresses are made of scrambled letters and numbers • 1SANgPeUsmBBxQUPE85YDZrFHX3195LA8 • A bitcoin address is created by two digital signatures using a type of cryptography known as ECDSA (Elliptic Curve Digital Signature Algorithm)
  22. 22. H O W I S B I T C O I N S E C U R E ? • Bitcoin addresses are secure because of ECDSA (Elliptic Curve Digital Signature Algorithm) • ECDSA is a type of cryptography used as a security signature verification in systems like iOS, iMessage, iCloud. • Involves a public key (for public view) and a private key (acts like a secret password) • Security of the Bitcoin address depends on how difficult it is to determine the private key from the public key
  23. 23. H O W I S T H E B L O C K C H A I N S E C U R E ? • The Bitcoin Blockchain is secure because of SHA-256 (Secure Hash Algorithm) • SHA-256 is a type of cryptography used to secure PGP, website certificates, web servers, and browsers. • Involves comparing results of mathematical operations, the difficulty of generating the same result from two different starting numbers determines the security of SHA 256 (should be almost impossible to achieve hence it is considered very secure) • This process of SHA 256 is used in Proof of Work to create the Blockchain
  24. 24. W H Y D O E S B I T C O I N W O R K ? • There is only one official version of the Blockchain and this version is shared by all the nodes and Bitcoin miners • When the majority of nodes have the same version of blocks this is known as consensus • All nodes maintain consensus by keeping the same version of the Blockchain • The Bitcoin network only accepts the longest chain of blocks as the official Blockchain
  25. 25. H O W I S B I T C O I N S T O R E D ? • Bitcoins are kept in a wallet • Wallets can be located on a computer, server, mobile phone, and/or accessed through a hosted website. • A wallet can be unlocked with a password, and can be recovered if lost • Recovering a wallet also recovers the Bitcoins held in the wallet • A wallet contains all the private and public keys for each bitcoin address owned by a user
  26. 26. B I T C O I N U S E R S , WA L L E T S , A N D T H E B L O C K C H A I N
  27. 27. W H AT C A N S O M E O N E D O W I T H B T C • Bitcoin as a currency • Bitcoin as an ideology • Bitcoin as a platform
  28. 28. B I T C O I N A S A C U R R E N C Y Estimated Transaction Volume (USD) $180,599,926.73 USD
  29. 29. B I T C O I N P R I C E • Set by the free market • No central authority to govern/oversee system • The Bitcoin price differs between Bitcoin exchanges - order books all have a different Bid/Ask price • Bitcoin is exchanged today for USD, EUR, Yen, Peso, etc. • The Bitcoin price fluctuates with most changes historically caused by user demand and announcements
  30. 30. B I T C O I N P R I C E C H A R T
  31. 31. B I T C O I N T R A D I N G • 24 hour market, 7 days a week • Majority of Bitcoin trading communities located in US and China • 14,899,900 BTC - Available supply • In 2014, Bitcoin jumped from $2 to $266 between Feb - April • Bitcoin exchanges operate in US, China, HK, Singapore, UK, Mexico, Spain, France, etc. • There are over 14 major Bitcoin Exchanges - all with different order books, bid/ask prices
  32. 32. W H E R E C A N B I T C O I N B E U S E D ? • WordPress in November 2012 • OKCupid in April 2013 • TigerDirect • Overstock.com in January 2014 • Expedia in June 2014 • Newegg and Dell in July 2014 • Microsoft in December 2014 Major Bitcoin Merchant Processors:
  33. 33. E X E C U T I V E D E C I S I O N U S E R R E Q U E S T S O R D E C I S I O N T O A C C E P T B I T C O I N
  34. 34. PAY M E N T S M A R K E T P L A C E C H A R I T Y L I F E S T Y L E T R AV E L E L E C T R O N I C S / T E C H N O L O G Y
  35. 35. B I T C O I N F O R G L O B A L T R A N S F E R S • Growing interest among Bitcoin supporters and new adopters to leverage Bitcoin technology for remittances • Serve the Unbanked • Instant, Global, Frictionless Transfers • Free/Cheap/Fast compared to existing providers • WesternUnion, MoneyGram, Ria
  36. 36. B I T C O I N R E M I T TA N C E C O M PA N I E S • Abra • Aircoinz – (Argentina) • Align Commerce • Beam Remit – (Ghana) • Bit2Me • Bitex.la • BitPesa – (Kenya) • BitSpark.io • Bitx.co • ButterCoin • Circle • Coin Batch – (Mexico) • CoinJar • CoinPip • Coins.ph – (Philippines) • HelloBit • Igot • Moneero • Palarin – (Philippines) • PayFast (Payment Processor) • Rebit.ph – (Philippines) • Romit (formerly Robocoin) • Satoshi Tango – (Argentina) • TransferB • Volabit • WorldRemit • Zed by ZipZap http://themoneywiki.com/wiki/alternative-currency-rebittance-bitcoin-remittance
  37. 37. C H A L L E N G E S T O B T C R E M I T TA N C E 1) Lack of specifics on how they will achieve target markets 2) Lack of foreseeable way to make money with such targeting* 3) Banking networks that service remittance providers are increasingly deciding not to serve aspiring entrants** 4) AML and Compliance costs could outweigh remittance volume *https://www.saveonsend.com/blog/bitcoin-money-transfer/ ** http://www.coindesk.com/why-the-future-of-bitcoin-remittance-businesses-isnt-certain/
  38. 38. R E G U L AT O RY E N V I R O N M E N T
  39. 39. R E G U L AT I O N S H A P E S B I T C O I N • Regulatory situation in a country determines the type of Bitcoin companies and services emerging from that area • US, Canada, Europe, South America: Bitcoin Exchanges, Bitcoin Payments, Bitcoin services - operate legally • Africa, South East Asia: Remittances • China: All Bitcoin mining hardware is manufactured here • Singapore, HK: Bitcoin exchanges operate legally
  40. 40. S O C I O - E C O N O M I C E N V I R O N M E N T S H A P E S B I T C O I N • Bitcoin is seen as a movement driven by ideological groups: • Libertarians • Anarchists • Sharing Economy • P2P • Decentralization
  41. 41. B E Y O N D T H E C U R R E N C Y The Blockchain has been getting attention recently from major banks and institutions: See R3: https://en.wikipedia.org/wiki/R3_(company) Have integrated Bitcoin into customer facing tools: Research and development of blockchain usage:
  42. 42. B L O C K C H A I N W I T H O U T B I T C O I N • The technology that powers Bitcoin is a platform. • The Blockchain provides: • No centralized costs • Adaptable data management • Blockchain allows scripting systems (programs) • Built in data trails • Auditable and Permanent • Data Governance • Information input and access is heavily controlled • Tamper proof
  43. 43. T E C H N O L O G Y D I S R U P T I O N • The Blockchain demonstrates distributed consensus • New type of networking infrastructure capable of replacing the traditional server • Bitcoin demonstrates the possibility of self-governing technology • Pseudo anonymous nature of Bitcoin transactions demonstrates that market participants do not need to know each other to transact confidently
  44. 44. WAY S T O P L AY W I T H T H E B L O C K C H A I N • Create a sub currency • Embed data • Time stamp events • Multi-signature transactions (co-signers) • Distributed Contracts • Record keeping of external documents • Encrypting a document and embedding the hash into a transaction • Microtransaction tipping and games
  45. 45. B L O C K C H A I N P L AT F O R M S • Ethereum - distributed computing/Smart Contract logic • Factom - notarization permissioned ledger • Ripple - settlement and clearing permissioned ledger • Colored Coins - asset creation on Bitcoin • Tendermint - consensus engine • Credits - volume based permissioned ledger
  46. 46. U S E C A S E S T O R I E S • Land titles • Identity Management • Decentralized Gaming • Decentralized Applications • Supply chain • Data storage
  47. 47. C H A L L E N G E S T O B L O C K C H A I N C O M PA N I E S • Monetization • Demand • Adoption • Replacing traditional systems • Integrating with existing systems • Developing the business case
  48. 48. E M E R G I N G T R E N D S • Turnkey Blockchain providers • Financial assets on the Blockchain • Interbank transfers on the Blockchain • Hybrid Blockchain / Traditional Server software • Blockchain as a database • Diversity of industries using the Blockchain • Gaming, Media, Insurance, Finance,
  49. 49. W H AT S H O U L D I N S T I T U T I O N S C A R E A B O U T R E G A R D I N G B I T C O I N ? • According to a Report by McKinsey & Co - up to 40 % of the revenue and 60% of the profits in the global retail banking industry will be at risk due to peer to peer lending, cloud based payments, and blockchain technologies* • Demographics of Bitcoin users (millennials, early adopters, young people, tech savvy, the next workforce) • Bitcoin Transaction fees are scalable and up to the user = cost of transacting is on the sender • Transparency of the Blockchain = transparent business practices • Efficiency of Bitcoin transactions = faster delivery, happier customers *http://www.chicagotribune.com/news/sns-wp-blm-botin-b35b1eea-92b9-11e5-a2d6-f57908580b1f-20151128-story.html
  50. 50. WAT C H F O R • Block size debate • Block reward halving • Side chains • Changing government regulation towards Bitcoin • New financial instruments being created on the Blockchain opening up new markets previously not possible and changing human behavior* *http://www.michaelnielsen.org/ddi/how-the-bitcoin-protocol-actually-works/
  51. 51. C O N C L U S I O N • Bitcoin and other cryptocurrencies essentially solve the problem of how to securely transact in a digital world increasingly burdened by consumer fraud and cyber crime • ensuring people can’t steal or impersonate one another, reverse a transaction, or alter transactions • Would caution against using Bitcoin as a reserve currency or investment • Bitcoin is ideal for transactions, and people still have to pay bills in Fiat
  52. 52. T H A N K Y O U Q U E S T I O N S F O R Q U E S T I O N S O R F E E D B A C K , P L E A S E F E E L F R E E T O C O N TA C T L I S A @ VA N B E X . C O M

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