what is blockchain tech for tokyo blockchain summit dec 2015
TRANSCRIPT
WHAT IS BLOCKCHAIN
TECHNOLOGY & ECOSYSTEM
BLOCKCHAIN SUMMIT JAPAN - DECEMBER 2015 #BLOCKSUMMITJP
ROBERT SCHWENTKER
PRESIDENT, BLOCKCHAIN UNIVERSITY
GAIAX-BLOCKCHAIN.COM/EVENTS/421
AGENDA
What is blockchain technology?
Silicon Valley blockchain ecosystem overview
Why blockchain? Value of tech to enterprise
2
PERSPECTIVE
Developer, startup & incubator
relations across PayPal, AmEx,
Citigroup
30 IBM Certifications as
developer, administrator &
instructor
3
Emerging technology
Building & bridging
communities
Innovative engagement
Co-founder & President,
Blockchain University
EDUCATION & EVENTS FOR STARTUPS AND THE
GLOBAL BLOCKCHAIN ECOSYSTEM
4
Educate &
Certify
• Entrepreneurs
• Intrepreneurs
• Developers
• Corporations
Connect
• Conference & hackathon events
• Ideation
• Incubation & placement
Inform
• Cutting edge developments
• Robust intellectual capital
5
BLOCKCHAIN UNIVERSITY TAKES OFF!
Cryto
eco
no
mic
on
Blo
ckch
ain
glo
bal
hackin
g
2015:
Co
ho
rts
in
se
ssio
n
Blo
ckch
ain
U
niv
ers
ity
invad
es
In
dia
!
2014:
Lau
nch
• Infosys/ Finacle, Bangalore & Mysore: delivered several courses + two day corp Hackathon
• Produced 13 blockchain projects
• Bombay Stock Exchange: designed and delivered training & hackathon
• Ideation and development of innovative blockchain solutions in payments, finance, enterprise IT, media etc.
• Engaged hundreds of developer and business enthusiasts across globe to develop blockchain solutions via global partnership (San Francisco, India, Argentina)
• Produced by CCRG, Koinify & Blockchain University
• 3-day, invite only, 40 sessions, 120+ attendance (startups, researchers, enterprises, VC)
• Students pile into BCU cohorts
• Comprised of seasoned engineers, serial entrepreneurs from 500 Startups, Y Combinator, professionals from law, finance & journalism
• Launch event with key SV* blockchain startups
• Dynamic panel discussion w/ SV* block-chain heavy weights (Adam Ludwin, Tim Swanson, Atif Nazir)
block.io
200+
students
successfully
graduated,
& counting
*aka Silicon Valley
Deep
en
ing r
oo
ts
• MSFTReactor, Microsoft’s brand new space in San Francisco launches and hosts Blockchain University for accelerated blockchain education and hackathon-ing!
• OrangeSV (division of world’s largest telecom operator) partners with Blockchain University to showcase 12 demo projects from our alumni, professors and partners
Garners
Infosys
CEO high
praise!
GLIMPSE INTO IDEATION AND SOLUTIONS SPINNING
OUT OF BLOCKCHAIN UNIVERSITY
6
BitReceipt: Payment
verification and receipt service
Hashloyalty Service that allows businesses to offer
rewards/ promotions in
bitcoin
Fractional investment for the masses: e.g 100 people to buy 1
share of Berkshire at $100 each
Crypto corp: reinvent modern
corporate infrastructure by
moving all equity/legal docs
to blockchain
Open wireless
router with SPV
based
micropayment
channel
Blockchain
University
produced
over 60
blockchain
experiments!
EDUCATING PEOPLE & BUSINESSES,
“ONE BLOCK AT A TIME!”
Over 150 videos!
Approximately 20,000 views!
Over 300 developers & other professionals graduated!
7
INFOSYS CASE STUDY BENGALARU & MYSORE, INDIA
Client challenge:
to understand how blockchain technology
will impact their clients, and how they can
develop competitive solutions to help them
Blockchain University Approach:
On-site one week immersive course; in
conjunction with 72-hour
innovation/hackathon lab for lecture
application and guided idea & prototype
creation
Client Business Impact:
Engaged in ongoing education with us to
remain well-versed in real-time tech
developments affecting their clients, and is
exploring other ways to create solutions for
them; business produced 13 blockchain
projects in-house
8
PROVIDING IN-DEPTH EXPLORATIONS OF
BLOCKCHAIN LEDGER TECHNOLOGIES
Technology training program
Ideation & prototyping
• Blockchain landscape
& ecosystem
• Blockchain
technologies &
cryptography
• Hash functions
• Asymmetrical
encryption
• ECDSA, security
• Transactions, Blocks
• Proof of work, Mining
• Peer-to-peer protocol,
transaction pools
• Wallets
• Security, identity
• Payment protocol
• Sidechains
• Merge mining
• Scalability
• Forking the
blockchain
• Apps on the
blockchain
• Smart contracts
• Ethereum basics
9
PROGRAM CLASS TOPICS
DE
LIV
ER
AB
LE
S
BLOCKCHAIN UNIVERSITY
SECRET SAUCE
10
Innovative
experiential
curriculum
Industry-
renowned
professorship
Extensive
global
network of
blockchain
peers
We are dedicated to
providing an advanced
learning structure consisting
of comprehensive academic
instruction and solution-
oriented design thinking,
brought to life by hands-on
experiential training.
We take pride in having the
brightest leading blockchain
minds as our instructors, so
our students learn from a
high quality league. (e.g. Vitalik Buterin, Ethereum
Founder &CEO, Atif Nazir,
Block.io Founder & CEO, Ryan
Smith, Chain CTO, Matthieu Riou,
BlockCypher Founder)
We are focused on
cultivating and building a
multi-disciplinary global
ecosystem to promote the
education and proliferation
of innovative blockchain
technology solutions and
applications across
industries.
AGENDA
What is blockchain technology?
Silicon Valley blockchain ecosystem overview
Why blockchain? Value of tech to enterprise
11
WHAT’S A BLOCKCHAIN
12
Protocol for building an immutable
historical record of transactions
Network of communicating computer
nodes running blockchain software
Each node validates transactions
“Blocks” are groups of transactions that
have been computationally verified by
miners
Multiple independent verifications to avoid
double spend
BLOCKCHAIN CHARACTERISTICS & BENEFITS
13
Public ledger system
that records &
validates
Transactions
authorized my miners
Removes need for
intermediaries
Distributed
Secure & reliable,
transparent
Immutable, hacking-
resistant
Real-time settlement,
operational cost
savings
Reduced risk
Easier for
law
enforcement to trace than
cash, gold or
diamonds
TYPES OF LEDGERS
• Open
• Consensus through pseudonymous/ anonymous validation
Unpermissioned
• Closed
• Consensus through known/ trusted validators
Permissioned
14
Gaining
enterprise
popularity
DISTRIBUTED LEDGER:
NETWORK THAT RECORDS OWNERSHIP
THRU SHARED REGISTRY
15
Source: Santander “Fintech 2.0 Paper”
Blythe Masters Chair of the Board of
Santander Consumer USA
“About as seriously as you
should have taken the
internet in "the early 1990's.”
“How seriously should you
take blockchain technology?”
16
WORLD ECONOMIC FORUM SURVEY:
BLOCKCHAIN 'TIPPING POINT' BY 2023
Blockchain technology is one of SIX mega-
trends
Surveyed 800+ information & communications
executives & experts
"an emerging technology that replaces need for 3rd
party institutions to provide trust for financial,
contract & voting activities"
17
BLOCKCHAIN TECH HAS
MANY APPLICATIONS.
ONE OF THE FIRST WAS
BITCOIN.
18
FROM HTTP TO BTC
19
POWER OF BITCOIN BLOCKCHAIN
13,000 times greater
World's 500 super computers
combined The Economist
January 2015
20
EVOLUTION OF INTEREST
2009-2011: Trading token used by crypto traders, gamers, hackers
2012-2014: Bitcoin gains international attention as currency in global markets
2015: Attention switches to blockchain technology; banks and institutions which previously denied involvement now openly experimenting
21
AGENDA
What is blockchain technology?
Silicon Valley blockchain ecosystem overview
Why blockchain? Value of tech to enterprise
22
KEY SILICON VALLEY
BLOCKCHAIN STARTUPS
23
BLOCKSTREAM: RAPID & SECURE TRANSFERS WITH
BITCOIN’S FIRST PRODUCTION SIDECHAIN
New LIQUID protocol will allow bitcoin exchanges, payment
processors and traders to reduce the time in which bitcoin-
denominated funds can be transferred between accounts
24
ABRA: REMITTANCE SERVICE ON BLOCKCHAIN,
ENABLES PEOPLE TO TRANSFER DIGITAL CASH
25
Deposit Send Withdraw
CHAIN: BLOCKCHAIN DEVELOPER PLATFORM THAT
SERVES AN ENTERPRISE MARKET
26
Unleashing pre-paid
mobile airtime Eliminating fraud in
digital gift cards
Increasing efficiency
in capital markets
for example…
AGENDA
What is blockchain technology?
Silicon Valley blockchain ecosystem overview
Why blockchain? Value of tech to enterprise
27
28
HOW IMPORTANT IS THE BLOCKCHAIN TO THE
FUTURE OF BANKING & FINANCE?
29
More than half think it will
transform banking
ALL THE RIGHT SIGNALS
A billion dollars in venture capital has flowed to
more than 120 blockchain-related startups, with half
that amount invested in the last 12 months
Over thirty of the world’s largest banks have joined
a consortium to design and build blockchain solutions
Nasdaq is piloting a blockchain-powered private
market exchange
Microsoft has launched cloud-based blockchain-as-
a-service
Blockchain concepts, prototypes, and investments are
emerging in every major industry
30
FINANCIAL SERVICES FIRMS PARTNER STRATEGICALLY
WITH BITCOIN & BLOCKCHAIN STARTUPS
31
relatively small number of
startups have captured the
large majority of financial
services investments
POTENTIAL BLOCKCHAIN APPLICATIONS IN
FINANCIAL SERVICES
Currency exchange
Supply chain management
Trade execution &settlement
Trading platforms
Post-trade processing services
Correspondent banking
Remittance Peer-to-peer
transfers
Micropayments, e.g. gaming
Asset registries Regulatory
reporting, KYC, AML
32
BLOCKCHAINS AKA LEDGERS
Distributed ledgers
could save banks
as much as $20
billion annually in
infrastructure costs
by 2022
- - Spanish bank Santander - -
33
CENTRAL BANKS TO ADOPT BITCOIN TECHNOLOGY?
34
Challenge: Bitcoin
pricing is volatile
U.S. Federal
Reserve creates
new blockchain
“Fedcoin”
Fed can create &
destroy ledger
entries
(“Fedcoin”)
Anchored/ Pegged
price of Fedcoin
BE
NE
FIT
S
Enjoy benefits of
bitcoin:
• Fast
transaction
speeds
• Cheap
transaction
costs
• Ability to
transact
almost
anywhere with
anyone
while maintaining
purchasing power !
35
Capital-market
spending on
blockchain R&D could
reach $400m by 2019,
from $30m last year
WHAT ‘S NEXT
2016: race to production
Increased investment
“co-opetition” for tech
leadership
36
APPENDIX
Blockchain Investment Landscape
39
SILICON VALLEY ACTIVITY: BOOST VC
40
Investment in Blockchain
Startups Tops $50 Million
2012
2015
OTHER SV ACCELERATORS
INVESTING IN BITCOIN & BLOCKCHAIN
41
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gaiax-blockchain.com/events/421
45
Developer Day with Ryan X. Charles of Blockchain University and Azusa Kikuchi of Gaiax