Post on 21-Apr-2017
@SDWOUTERS
Bitcoin & Blockchain
For Friends
Speaker on Bitcoin & Blockchain
Digital Transformation Consultant at Duval Union Consulting
@sdwouters
Sam Wouters
‣ We are a digital consulting company.
‣ Founded in 2009 as DearMedia.
‣ We work for large European clients.
‣ We have a strong vision on the impact of digital and act accordingly.
‣ We are advisors, writers, coaches and entrepreneurs.
I explain to people why Bitcoin & Blockchain matter, how they work
and what we can do with them@SDWOUTERS
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One of many DISRUPTIVE PLAYERS
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“bitcoin is digital money”
Who has heard of Bitcoin before today?
Positive image? Negative image?
Who fundamentally
understands Bitcoin?
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Media that predicted The Death of Bitcoin
Deaths by publication:
DailyPaulCNNCity A.M.ChronBroken Librarian BTC Feed Business InsiderBloombergAbout.com Acton BizNews.comArduino TronicapenwarrAOL
Financial TimesFester’s DenDavid Seaman FortuneForbesFool.com FusionGizmodo Australia IEX International Business Times Javamazon Moneygeek
MyBroadBandMother Jones News.com.au NewStatesman NY Mag OUI Share
The New York TimesThe KernelThe Calculating InvestorStreet InsiderSputnik NewsPYMNTS.com Reuters Robert Nielsen Salon Seeking Alpha
The Underground EconomistThe Telegraph The Washington Post The Weekly StandardUSA Today Valley News VICE News Wired YahooWall Street Daily
bitcoinobituaries.com
"Don't forget that the millions of people all over the world who are now part of the Bitcoin network were once very strong skeptics. This includes people with decades of experience in network security and cryptography." ~Andreas Antonopoulos
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A Quick Introduction To Bitcoin & Blockchain
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Invented in 2008: a system to eliminate the need for “trusted” third parties
bitcoin.org/bitcoin.pdf
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? ?
? ?
?
??
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The first thing bought with 10.000 Bitcoins in 2010
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Bitcoin’s best days must be over!
Is worth over €6 Million today at €600 per BTC
So much value, all for shady digital money?
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Bitcoin challenges your understanding of money
Banks: Bitcoin can’t work, It’s all about the Blockchain
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What’s the difference?
Bitcoin is a way to digitally transfer ownership
without a middleman
The blockchain is a database that records
ownership through time
A 5 minute explanation won’t make you understand why they matter
@SDWOUTERS
WHAT can we do with them?
HOW do they work?
WHY do Bitcoin & Blockchain
exist?
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WHY do Bitcoin & Blockchain
exist?
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Why do digital money transfers take days?
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Why are digital money transfers expensive?
9% FEE?
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Financial innovation is held back by rules and regulations@SDWOUTERS
@SDWOUTERSBut this is innovation!
Say that to the 40% unbanked adults worldwide…
And to the people who pay 5-25% money transfer fees
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If you want to send money you have to
WAIT PAY
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Yet we can do THIS?
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Bitcoin is about more than global payments
We have more debt than can EVER be repaid
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Income inequality keeps growing
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Nations have gold reserves that don’t exist
“There hasn’t been a comprehensive audit of Fort Knox in over 60 years.”
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Currencies are not backed by anything
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Leading to unprecedented money printing
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The money in your bank loses value
Inflation Interest>
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Soon you’ll be PAYING banks so they can do risky investments with your money
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If finance is so messed up why don’t we fix it?
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Governments are not in charge in the financial world
Governments
Corporates
Banks
National central banks
International central banks
Central bank of central banks
Regulation
Resulting in "cosy" relationships between financial businesses and regulators
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Banks won’t stop messing around
Resulting in "cosy" relationships between financial businesses and regulators.
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We are fighting a never ending flood
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HOW do they work?
WHY do Bitcoin & Blockchain
exist?
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Fundamentally different
Transactions Security
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Transactions Security
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Money is sent directly between two parties
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Transactions are synchronised through the network
The blockchain is a global “bookkeeping” system
It records who owns what, and when
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Anyone can own a copy of the Blockchain
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How do we Record transactions
so nobody can change them?
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Transactions Security
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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
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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
The Internet & Bitcoin
Centralized
All organizations
The Blockchain is secured by computing power from people and companies all over the world
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In return for their work, the miners earn new bitcoins and transaction fees
…
These “miners” verify the transactions and add them to the next block in the Blockchain
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When you change a transaction the link to that block changes as well
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The network will know that your version has been messed with and reject it
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You then need to create a blockchain with more
computer power than the entire network combined
The network is 20.000 times stronger than the top 500 supercomputers in the world
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Who decides what everyone does with their computer?
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
The Internet & Bitcoin
It started from the base code, ever since improvements have been proposed by developers around the world
bitcoin.org/bitcoin.pdf
…
github.com/bitcoin/bips
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If the vast majority of the network
agrees, the code can be changed
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What does this technical stuff mean for me?
Send & receive payments anywhere in the world
Nobody can stop it
Bitcoin is open to anyONE without identification or authentication
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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. They can track exactly what we
do with it, but we would also see what they do…
BITCOIN
Which is exactly what happened
theguardian.com/us-federal-agent-investigating-silk-road-admits-800000-bitcoin-theft
What criminal leaves permanent evidence?
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Should we have forbidden these too because criminals can use them?
Technology always reflects society
Anyone can develop new applications for Bitcoin, without permission
@SDWOUTERS internetlivestats.com/internet-users/
The same force driving internet innovation for 20 years
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Creates huge value for consumers, economic growth, jobs
I don’t really need Bitcoin
Until your life is international
Transferred money with a large fee or terrible exchange rate?
Have you ever…
Tried to understand why these transfers take days?
Paid fees or exchange rates at ATM’s or with your card abroad?
Have you ever been to a country where the majority of the population is unbanked?
Have you ever met people who cannot use their debit or credit cards abroad?
Exchanged money on the black market?
Returned home with leftover foreign currency?
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Dealt with currency controls?
Or Hyperinflation?
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Soon you’ll be PAYING banks so they can do risky investments with your money
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Perhaps you & your country don’t really need it…
But it will help the world a lot if Bitcoin succeeds.
@SDWOUTERS
WHAT can we do with them?
HOW do they work?
WHY do Bitcoin & Blockchain
exist?
@SDWOUTERS
Sending money
0.00000001 BTC1 BTC
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Bitcoin has been running non-stop for 7+ years
160M 434K $150M $105B
Transactions Blocks in the blockchain
in transactions per day currently
Transferred over the blockchain
466M 16M $11B 160K
bitcoins transferred over the blockchain
Amount of Bitcoins that currently exist
Value of all bitcoins
companies (indirectly) accept bitcoins
Money is the tip of the iceberg
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Logical Evolution
INTERNET Transfer information
BLOCKCHAIN Transfer ownership
TEXT IMAGES PROGRAMS VIDEOS
MONEY CONTRACTS PATENTS ASSETS
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“Blockchain could disrupt everything”
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THE BLOCKCHAIN is an inefficient database
10
100
1000
10000
7
185
24000
Transactions per second
Imagine a massive decentralized Dropbox
synchronizing 24/7
But all these banks are investing in blockchains!
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3 Immutability
5 Open innovation
1 Censorship resistance
2 Decentralization
4 Open access
Banks/governments won’t replicate the BlockchainOpen
Editability 3
Centralization 4
Interoperability 1
Business innovation 5
Permissioned access 2
Private
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The open Blockchain will create the most value
The BlockchainThe Internet
“Private” BlockchainsIntranets
>
If Bitcoin is so great, why isn’t everyone using it?
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‣ Bitcoin is only 7 years old, it still needs a lot of development.
‣ We have never tried THIS before and it is about MONEY, not info.
‣ It’s 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
Some links to help you get started with BitcoinGet a wallet: (and make a backup!)
• Circle Pay / Coinbase / Mycelium (Android)
• Circle Pay / Coinbase / Breadwallet (iOS)
• Copay / MultiBit HD (Desktop)
• Circle Pay / Coinbase / Xapo (Web)
• Trezor / Ledger Nano S (Hardware)
Get bitcoins:
• coinbase.com
• bitstamp.net
• bitonic.nl
Following the bitcoin price:
• bitcoinwisdom.com
Following Bitcoin news:
• reddit.com/r/bitcoin
• bitcoinmagazine.com
Bitcoin payment processing for businesses:
• bitpay.com
• coinbase.com
Bitcoin statistics:
• blockchain.info
Bitcoin white paper & info:
• bitcoin.org
• circle.com
• bitwage.com
• localbitcoins.com
Thanks! Want to learn more?
@sdwouters
WWW samwouters.com
sam.wouters@duvalunion.com