@SDWOUTERS

& blockchainbitcoin

#Darefest16

@sdwouters

Bitcoin & Blockchain since 2013

Digital Transformation Consultant at Duval Union Consulting

sam.wouters@duvalunion.com

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.

One of many DISRUPTIVE PLAYERS

“bitcoin is digital money”

Who has heard of Bitcoin before today?

Positive image? Negative image?

Who fundamentally

understands Bitcoin?

Media that predicted The Death of Bitcoin

bitcoinobituaries.com

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

"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

@SDWOUTERS

A Quick Introduction To Bitcoin & Blockchain

Invented in 2008: a system to eliminate the need for “trusted” third parties

bitcoin.org/bitcoin.pdf

? ?

? ?

?

??

The first thing bought with 10.000 Bitcoins in 2010

@SDWOUTERS

Bitcoin’s best days must be over!

Is worth over €5 Million today at €500 per BTC

So much value, all for shady digital money?

Banks don’t believe Bitcoin can work, but they are investing in its technology, the Blockchain

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

WHAT can we do with them?

HOW do they work?

WHY do Bitcoin & Blockchain

exist?

WHY do Bitcoin & Blockchain

exist?

Why do digital money transfers take days?

Imagine you want to BUILD A BUSINESS

9% FEE?

@SDWOUTERS

Financial innovation is held back by rules and regulations

@SDWOUTERSBut this is innovation!

Say that to the 40% unbanked adults worldwide…

And to the people who pay 5-25% money transfer fees $175 Billion profit per year for Western Union & co!

If you want to send money you have to

WAIT PAY

@SDWOUTERS

Yet we can do THIS?

@SDWOUTERS

Bitcoin is about more than global payments

We have more debt than can EVER be repaid

Currencies are not backed by anything

Leading to unprecedented money printing

The money in your bank loses value

Inflation Interest>

Soon you’ll be PAYING banks so they can do risky investments with your money

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

Rules are decided behind closed doors

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

Banks won’t stop messing around

Resulting in "cosy" relationships between financial businesses and regulators.

We are fighting a never ending flood

HOW do they work?

WHY do Bitcoin & Blockchain

exist?

Fundamentally different

Transactions Security

Transactions Security

Money is sent directly between two parties

The blockchain is a global “bookkeeping” system

It records who owns what, and when

Transactions are synchronised through the network

Every ~10 minutes, they are permanently

recorded in a new block in the blockchain

…

How do we SAFELY Record

the transactions so nobody can change them?

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

Decentralized

The Internet & Bitcoin

Centralized

All organizations

The Bitcoin Blockchain is secured by computing power from people and companies all over the world

“So much energy waste!” Bitcoin’s ecological footprint is tiny

In return for their work, the “miners” earn new bitcoins and transaction fees

They verify the transactions and add them to the next block in the Blockchain

The transactions are permanently recorded in a new block, linked to the others in a chain

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

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

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

The network is 20.000 times stronger than the top 500 supercomputers in the world

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

If the vast majority of the network agrees, the code can be changed

But everything can be hacked

right?

Wallets can be hacked if they are not secured, but the Bitcoin protocol can’t be hacked

With over $50M per day in irreversible transactions, it is the biggest target for hackers on the Internet

What does this technical stuff mean for me?

You can send payments without encryption and on any network,

without risk

Send & receive payments anywhere in the world.

Nobody can stop it

Bitcoin is open to any participant

without identification or authentication

No criminal wants to leave permanent evidence

The power is in the hands of the user, we want to protect and use our money

Anyone can develop new applications for Bitcoin, without permission

internetlivestats.com/internet-users/

The same force driving internet innovation for 20 years

Creates huge value for consumers, economic growth, jobs

I don’t really need Bitcoin

Until your life is international

Have you ever…

Transferred money internationally, with a large fee or a terrible exchange rate?

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?

Dealt with currency controls?

Or Hyperinflation?

Perhaps you & your country don’t really need it…

But it will help the world a lot if Bitcoin succeeds.

WHAT can we do with them?

HOW do they work?

WHY do Bitcoin & Blockchain

exist?

Sending money

0.00000001 BTC1 BTC

Is it accepted anywhere?

Antwerpen

Gent

Arnhem

Buenos Aires

Amsterdam

Montreal

Money is the tip of the iceberg

Logical Evolution

INTERNET Transfer information

BLOCKCHAIN Transfer ownership

TEXT IMAGES PROGRAMS VIDEOS

MONEY CONTRACTS PATENTS ASSETS

Everledger stores unique info and ownership of (900k) diamonds on the Bitcoin blockchain

everledger.io

“Blockchain could disrupt everything”

@SDWOUTERS

THE BLOCKCHAIN is an inefficient database

3

Censorship resistance

2

Immutability

5

Open Access

Decentralization

4

1

Open Innovation

Banks/governments won’t replicate the Blockchain

But all these banks are investing in blockchains!

Private blockchains are like every company building their own Dropbox service

>The Internet

Both will have their own uses, but the Open Blockchain will create the most value

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

Some links to help you get started with BitcoinGet a wallet (and make a backup!)

• Coinbase/Circle Pay/Xapo/Mycelium (Android)

• Coinbase/Circle Pay/Xapo/Breadwallet (iOS)

• MultiBit HD (Desktop)

• Coinbase/Circle Pay/Xapo (Web)

• Trezor/Ledger Nano S/KeepKey (Hardware)

Buying bitcoins:

• coinbase.com

• bitstamp.net

• bitonic.nl

• localbitcoins.com

Following the bitcoin price:

• bitcoinwisdom.com

Following Bitcoin related news:

• reddit.com/r/bitcoin

• coindesk.com

Bitcoin payment processing for businesses:

• bitpay.com

• coinbase.com

Bitcoin statistics:

• blockchain.info

Bitcoin white paper & info:

• bitcoin.org

Thanks! Want to learn more?

WWW

@sdwouters

sam.wouters@duvalunion.com

samwouters.com