Future Commerce: Reinventing Markets with Blockchain, by David Shrier

ReinventingMarketswithBlockchain

DavidL.Shrier,ManagingDirector,MITConnectionScience21December2015

(c)FarHorizonsManagement

FutureCommerce

Agenda

§ Introduction toFutureCommerce

§ Whatis“theBlockchain”?

§ Applications

§ Howisitchangingmoney&payments?

§ Howisitchangingmarkets?

§ Howcoulditchangeinsurance?

§ Whatcouldhappentodataandsecurity/privacy?(MITENIGMA)

§ Whataretheopportunities?

December2015 (c)FarHorizonsManagement 2

MITFutureCommerceInstructors

December2015 (c)FarHorizonsManagement

ALEX"SANDY"PENTLANDMITProfessor;advisesU.N.SG,WEF,Google,othersonData/Analytics

DAVIDSHRIERManagingDirector,MITConnectionScience

BRIANFORDEDirector,MITDigitalCurrencyInitiative

JOOSTBONSENMIT’sventurecatalyst

3

Fintech ishot


YTDSep2015$12.4Bn*

GlobalFinTech VCInvestments

*source:Finovate

4

FutureCommerceThemes


SECURITY&PRIVACY

MARKETS

MONEY&PAYMENTS

INFRASTRUCTURE

5

Let’smaketheleap…


WHATIS“THEBLOCKCHAIN”?BASICS


IntrotoBlockchain

§ Therearemanyblockchains§ It’saformof“distributed ledger”

§ Let’sdiveintoasimplified “blockchain”


GENESISBLOCK

BLOCK1 BLOCK2 ... BLOCKN

8

Blockchain runsondistributednetworkofservers


Ledgers:centralizedvs.decentralizedvs.distributed


Source:WorldEconomicForum2015

üFAST

üTRANSPARENTüDIRECT

üLOWERCOST

üMORESECUREüMORECONVENIENT

WHATCANWEDOWITHTHIS?


Money/Payments


“NEW”

“CONVENTIONAL”

$

12

€

InAfrica,10Xto100Xlessexpensive

BANK1 CENTRALBANK

BANK2

PROCESSINGNETWORK

PROCESSINGNETWORK

EXPENSIVE COMPLICATED TAKES3DAYS

$ €ALTCOINCOMPANY

CHEAP FAST

FINANCIALMARKETS


“NEW”

“CONVENTIONAL”

€

13

AAPLBANK1 DTCC

BROKER BROKER

EXPENSIVE COMPLICATED TAKES90DAYS

€ AAPLDIGITALXCHNG

CHEAP FAST

EXCHANGE

Insurance


BROKER

BROKER

BROKER

INSURANCECOMPANY

RISKPOOL

MGA

SELFINSURED

FUTURE1 FUTURE2 FUTURE3

?

TODAY

$€

$€

BUYERSOFRISK

14

DIRECT

Datasecurity


DATA

trust.mit.edu

MAKETHICKERWALLS

TODAY

FUTURE

Commercialopportunities

§ Disaggregatethebanksandinsuranceco’s

§ Eliminatefriction (takeoutmiddlemen)

§ Improvefinancialaccess

§ Democraticidentity

§ Reducefraud

§ Enhanceanalytics

§ Decreasetimetomarketforfood

§ Improvevelocityofmedia(music, film…)

§ …possibilities areendless


FutureCommerceOnline!


http://mit.getsmarter.ac/future_commerce/

ü 8weekdigitalcourse

ü Expertperspectives

ü Personalizedexperience

ü CertificatefromMIT

DavidL.ShrierManagingDirector,Connection ScienceMassachusettsInstituteofTechnology

[email protected] /@DavidShrierconnection.mit.eduwww.futureenterprise.eu

Future Commerce: Reinventing Markets with Blockchain, by David Shrier

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Transcript of Future Commerce: Reinventing Markets with Blockchain, by David Shrier