blockchains: risk, compliance and innovation · vvv blockchain in financial services consumer...

vcapv.com © William Mougayar, Virtual Capital Ventures

William Mougayar

General Partner, Virtual Capital Ventures

Author, The Business Blockchain

Blockchains: Risk, Compliance and Innovation

Global Risk Institute

April 14 2016


Cryptography

Science BLOCKCHAIN

Software

Engineering

Cryptography

Science

Game

Theory

The Blockchain Novelty


Cryptography

Science BLOCKCHAIN

Technical

Legal Business

The Blockchain Implications

4 © William Mougayar, Virtual Capital Ventures. vcapv.com © William Mougayar, Virtual Capital Ventures

How to view the Blockchain

Source: The Business Blockchain (Wiley, 2016) © William Mougayar

5 vcapv.com © William Mougayar, Virtual Capital Ventures

Blockchains, like the Web, need the

Internet

I N T E R N E T

WORLD WIDE WEB BLOCKCHAINS



Self Publishing

E-Commerce

Social Interactions

IT Supremacy Internet Years

Defining Technology Eras

Personal Communications

Blockchain Promise

1994 2015

Data computation

Database applications

Transaction processing

Business Intelligence

Global operations

Enabling

Decentralization

of

Trust

Value Flow

without Intermediaries


A T O M I C Blockchain

Programmable

ASSETS

TRUST

OWNERSHIP

MONEY

IDENTITY

CONTRACTS

vvv

Blockchain in Financial Services

Consumer

Facing

B2B

Services

Back-end

Processes

Inter Industry

Intermediaries

Hundreds of Processes

Billions of users

Millions of businesses

Dozens of Players

© 2015 William Mougayar

Mortgages

Digital identities

Wallets

Exchanges

Simple transfers & Payments

Increasing evolution complexity & delivery timeframe

IT & Business Reengineering

to support all these changes

Insurance

Payments

Trusts

Escrow

Clearing Networks

International Transfers

Trading &

Capital

Markets

Thousands of Use Cases

Securities & instruments

Syndicated Loans

Clearing & Settlements

Assets Ownerships

Bond sales

Digital Receipts


Business Drivers

Technology Enablers

Market / Business Challenges

Technical Challenges

Behavioral / Educational Challenges

SOLUTIONS (to Barriers)

CATALYSTS

BARRIERS

Legal / Regulatory Challenges

A Framework for Focusing Blockchain’s

Success


List of Challenges is Long



UNREGULATED

ENVIRONMENTS

REGULATED

ENVIRONMENTS

Innovation Potential for

Blockchain


Blockchain and Regulation

① Risk is regulatory confusion

② New regulations needed, e.g. record

keeping

③Where do you insert the blockchain?

④ Difference between blockchain and

cryptographic ledgers

⑤ Risk is centralization


Decentralization – What does it

look like? ① Speed in settlements

② No intermediary delays

③ Upfront identification and reputation

④ Flat structure with no overhead

⑤ Permission-less user access

⑥ Trust built inside the network

⑦ Resiliency against attacks

⑧ No censorship

⑨ No central point of failure

⑩ Governance decisions by consensus

11 Peer-to-peer communications



NEW COMPANIES

AND BEHAVIORS

INSIDE EXISTING

COMPANIES

THREATENED OR

TRANSFORMED

JUST TECHNOLOGY

How New Technology Permeates


William Mougayar Investor . Entrepreneur

Blogger . Board Member

General Partner

Virtual Capital Ventures

[email protected]

1-416-648-7010

http://startupmanagement.org

/blog

http://vcapv.com

@wmougayar

thank you

mailto:[email protected]

http://startupmanagement.org/blog

http://startupmanagement.org/blog

http://vcapv.com

blockchains: risk, compliance and innovation · vvv blockchain in financial services consumer...

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