Principle of Revolution Market Capital Chairman Blockchain Malta...
Transcript of Principle of Revolution Market Capital Chairman Blockchain Malta...
Patrick L Young● Fintech Pioneer - author “Capital
Market Revolution!” (1st ‘fintech’ bestseller - FT Prentice Hall 1999)
● Former exchange CEO - SIBEX● Former board member Liquidnet, Swiss Futures &
Options Association, cofounder Intrade/GSX etc● An inventor of prediction markets / single stock futures● Principle of Revolution Market Capital● Publisher of the industry daily Exchange Invest● Chairman Blockchain Malta (etc).
Blockchain / DLT/ Crypto and Exchanges
Patrick YoungJoshua Ellul28th August 2018
The good old days of services-with-a-smilePre-1995: Services at geographical locations
Along came the InternetMid-90s:
Start of the Internet Revolution (e-Services)Services made available from your office/home
In our pocketsMid-2000s:
Start of the mobile revolution (m-Services)Services made available, wherever you are
Blockchain? What the heck is Blockchain?Mid 2010s:
Start of the blockchain revolution
How does this change the way we interact with services?
Blockchain? What the heck is Blockchain?Mid 2010s:
Start of the blockchain revolution
How does this change the way we interact with services?It doesn’t.
Blockchain? What the heck is Blockchain?Mid 2010s:
Start of the blockchain revolution
How does this change the way we interact with services?It doesn’t.
So what is changing?
Blockchain? What the heck is Blockchain?
Blockchain Research GroupUniversity of Malta
Mid 2010s:Start of the blockchain revolution
How does this change the way we interact with services?It doesn’t.
So what is changing?Trust.
How are services provided?
How are services provided?
How are payments made now?I want to send Alice, €10,000
How are payments made now?
I’d like to send Alice €10,000
from my account
How are payments made now?
What is it for?
How are payments made now?
I would rather not say, it’s
private.
How are payments made now?
I’m sorry we cannot do it
Where it started: Trust and Money
But, it’s my money!
Where it started: Trust and MoneyI wish there was a way I
could send money to Alice, without having to trust a
bank with my money.
Where it started: Trust and MoneyThis was Bitcoin’s aim:
● Peer-to-peer (person to person)● transactions between users● without intermediaries
Easy to do:
● Each bank keeps their own database of all accounts of their clients.
● When John sends money to Mary and they use the same bank, just deduct amount from John’s and add to Mary’s.
Centralised Digital Money
Easy to do:
● Each bank keeps their own database of all accounts of their clients.
● When John sends money to Mary and they use the same bank, just deduct amount from John’s and add to Mary’s.
● When Dave sends money to Lucy, who uses a different bank, actually transfer funds to other bank (or keep IOUs).
Centralised Digital Money
Not easy to do:
● No central authority.● Every node, needs to have the complete
list of balances of all accounts.● When a transaction takes place, we have
to update the balances on every node.● How can we make sure this happens?
Decentralised Digital Money
Not easy to do:
● No central authority.● Every node, needs to have the complete
list of balances of all accounts.● When a transaction takes place, we have
to update the balances on every node.● How can we make sure this happens?
“The solution is a cunning ledger called the blockchain”.
The End of Money, New Scientist
Decentralised Digital Money
Every node, has all data and transactions recorded in the blockchain:
● In fact, it is a ledger: a list of transactions;● One can only append transactions to it;● Transactions that have been recorded can
never be changed (immutability).
Decentralised Digital Money
Can be seen as a ledger which enforces:
● Only the owner of resources can transfer their resources
● Only one transaction performed at a time
● Old transfers cannot be manipulated or lost
Bitcoin: It’s a Ledger
Can be seen as a ledger which enforces:
● Only the owner of resources can transfer their resources
● Only one transaction performed at a time
● Old transfers cannot be manipulated or lost
Bitcoin: It’s a Ledger
Joshua: 10 BTC
Gordon: 3 BTC
Alice: 6 BTC
Can be seen as a ledger which enforces:
● Only the owner of resources can transfer their resources
● Only one transaction performed at a time
● Old transfers cannot be manipulated or lost
Bitcoin: It’s a Ledger
Joshua: 7 BTC
Gordon: 6 BTC
Alice: 6 BTC
From To Amount
Joshua Gordon 3 BTC
-3
+3
Can be seen as a ledger which enforces:
● Only the owner of resources can transfer their resources
● Only one transaction performed at a time
● Old transfers cannot be manipulated or lost
Bitcoin: It’s a Ledger
Joshua: 7 BTC
Gordon: 6 BTC
Alice: 6 BTC
From To Amount
Joshua Gordon 3 BTC
Can be seen as a ledger which enforces:
● Only the owner of resources can transfer their resources
● Only one transaction performed at a time
● Old transfers cannot be manipulated or lost
Bitcoin: It’s a Ledger
Joshua: 6 BTC
Gordon: 6 BTC
Alice: 7 BTC
From To Amount
Joshua Gordon 3 BTC
Joshua Alice 1 BTC
-1
+1
Can be seen as a ledger which enforces:
● Only the owner of resources can transfer their resources
● Only one transaction performed at a time
● Old transfers cannot be manipulated or lost
Bitcoin: It’s a Ledger
Joshua: 6 BTC
Gordon: 6 BTC
Alice: 7 BTC
From To Amount
Joshua Gordon 3 BTC
Joshua Alice 1 BTC
How can I use Bitcoin (or any other blockchain)?Install a Bitcoin full node (a piece of freely available software) on your computer.
● The ‘full node’ will have the whole list of transactions
● You can then send money in a trusted manner by adding the transaction to your node
How can I use Bitcoin (or any other blockchain)?Or: Communicate with a trusted Bitcoin node, e.g. by using a wallet or exchange
Note: you are trusting the wallet/exchange to perform the transaction
Does everyone see my Bitcoin?Every ‘node’ or computer in the blockchain, can see all transactions and data
Does everyone see how much Bitcoin you own?> Yes and No;
Yes: all accounts, all balances, and all transactions are available for all to seeNo: Bitcoin only lists your account address (no name associated with account)
Key point: all data is available for all on the blockchain to see
Bitcoin is a public blockchain: anyone can download, and be part of the system
So, what about confidential information?
Permissioned...Some systems require more confidentiality; Not all data should be public
Permissioned/private Blockchains can limit who gets access to the Blockchain (and data)
Some Terminology
Bitcoin
Some Terminology
Cryptocurrency
Bitcoin
Instance of
Some Terminology
Blockchain
Cryptocurrency
Application of
Bitcoin
Instance of
Some TerminologyDLT
Blockchain
Cryptocurrency
Type of
Application of
Bitcoin
Instance of
Some TerminologyDLT
Blockchain DAG, Hashgraphs, ...
Cryptocurrency
Type of
Application of
Bitcoin
Instance of
Type of
...
Some TerminologyDLT
Blockchain DAG, Hashgraphs, ...
Cryptocurrency
Type of
Application of
Bitcoin
Instance of
Type of
...Each DLTcould be:
Public Private or Permissioned
Some TerminologyDLT
Blockchain DAG, Hashgraphs, ...
Cryptocurrency
Type of
Application of
Bitcoin
Instance of
Type of
...Each DLTcould be:
Public Private or Permissioned
Publicis
Summary of what blockchain guarantees•
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Patrick L YoungCryptoCurrency / ExchangesVFA Course: Xara Lodge, August 28th 2018
Copyright Patrick L Young, 2018
Pat
rick
L Y
oung
Michael Spencer CEO NEX
Jeff Sprecher Chairman NYSE
Today: Crypto Currency & Exchanges
● Some Crypto Currency History
● Exchanges - History / Devs / DLT/Crypto/Tokens/ICO et al
● Understand / Appreciate Exchanges & therefore how they impact VFA era.
A New Era of Money
● Historical : e.g. Beenz / eGold
● QV “Capital Market Revolution!”
● Arrival of Distributed ledger
Heliocentricity
the Bitcoin universe delivered the Model T
experience…
Conclusion
Crypto Currency is the Future
Bitcoin Will Not Be Alone
2013/4: The Coin / Token Explosion
e.g.
2013/4: The Coin / Token Explosion
First token sale (ICO) Mastercoin in July 2013. Ethereum (2014), raising 3,700 BTC in its first 12 hours, approx $2.3m.
What Is ICO?
● A form of participation● May be ‘utility’ in nature● Or Bond / Equity / hybrid
What Is ICO?
● Initially for IT systems / protocols etc.NB Early role of foundations
● Now more broadly based around companies / corporate entities
Cryptocurrency Vs DLT
A Significant Divergence…
● Cryptocurrency: a Byproduct of DLT
● DLT = a ‘database’ with the potential for decentralisation & Immutability…
AKA In financial terms:
Distributed Ledger: the new double entry book-keeping?
Exchanges
Exchanges
● History
● Types / Definitions
● Regulation
● Operation
Exchange Origins
● Ancient Markets: Agora
● Creation of “Clubs” - Coffee Shops etc.
● Coastal & Centralisation
● Deregulation of Commission
● Modern Demutualised Age
An Endangered Species?
Market Types
● Cash Markets
● Derivatives Markets
Market Types
● Cash Markets:SharesBondsCommoditiesForex
Market Types
● Derivatives Markets:Anything!
Simple Definition
● Derivative products provide:
The right or obligation to buy or sell a product in the future.
Market Definitions
● Primary Market:Where “issuance” happens
e.g. share IPO, bond listing etc.
Market Definitions
● Secondary Market:
A Venue For Trading(can be cash or derivative)
OTC Markets
● A number of markets may be defined as “OTC” i.e. they are not centralised like traditional exchanges but trade “Over The Counter” or perhaps in small pockets of marketplaces are operated by broker-dealers.
The Quirk of Exchange Definition
Almost anything can be termed an exchange in or beyond investment-related financial markets.
E.g. furniture, cars, telephone.Hence there is no clear prohibition onUsing the word exchange (qv ‘bank’).
Major Market Participants (include)
● Brokers● Broker-dealers● Market Makers● Traders● Arbitrageurs● Funds● Corporates● Governments
Major Market Participants (division)
● Buy Side
● Sell Side
Types of Trading
● Continuous markets…
● Periodic i.e. Auction / ‘fixing’ Markets
Types of Continuous Markets
● Market Maker Specialist
● Order Driven (w / w-out market makers)
Types of Auction Markets
● Continuous markets…
● Periodic i.e. Auction / ‘fixing’ Markets
Exchanges Offer Standardisation
● Contract or “lot” size● Tick Size● Trading Procedures / Market Access● Specific Settlement / Delivery Processes● Quality● All according to an agreed, public rule book,
independently overseen by the exchange.
Technology Driving Change
● Order Matching: New era of algorithms:○ Proportional (traditional)○ FIFO - “First In First Out”
● Latency & Access:○ Co Location○ High Frequency (HFT)
The Question of Speed:
From one perspective
A normal exchange:
C19th HFT
Technology Driving Change (2)
● Product Growth○ “It’s a derivatives world”
● DATA!○ Exponential Growth○ Driven by Technology○ Regulatory Requirements○ Customer demand drives customer demand
Defining Exchanges
● Various US & UK acts
● EU: MIFID, MIFID II
○ (and much else besides)
Regulated Market Types:
● A Regulated Market
● An MTF
● (also OTF: bonds, structured products, emission allowances or derivatives).
Regulated Markets
● Have (Regulated) Members○ Can be proprietary or agency
● Key provisions in primary market delivery○ No direct access unless a member
Legacy exchanges e.g. London SE or Malta SE are regulated markets.
MultiLateral Trading Facilities (MTFs )
Still regulated but more flexible:
● Can have direct access (aka not via regulated members)
● NOT primary listing venues for large cap stocks
● Can list SMEs, Bonds etc
Other Types of Trading ‘Platforms’
● Systematic Internalizers
● Broker-Dealer Platforms
● InterDealer Brokers
● “Dark Pools”
● Crowdfunding Platforms
Key Point:
● Anything which is generally recognised as an exchange whether a “regulated market” or an “MTF” must be an open, level playing field which does not discriminate amongst those who are entitled to be part of the market.
Key Point:
● AKA SI’s, Broker Dealers etc can havea more ‘caveat emptor’ approach!
EXCHANGES Operate Non DiscriminatoryOrder Matching Facilities
Key Point (2):
● NB Traditionally ‘exchanges’ are Centralised
● OTC / forex etc - ‘essentially not”
Dodd Frank / EMIR et al
NB After the collapse of 2008, OTC markets in interest rate derivatives came under regulatory pressure to be traded on platforms / exchanges.
Dodd Frank / EMIR et al
● Resulted in Dodd Frank (US) EMIR / MIFID II etc.
● New platforms e.g. SEF (US) OTF (EU)
● Hence e.g. bond platform growth…(anyway a natural aspect of electronification?)
Exchange Businesses
Exchanges (Many Still Co-Ops!)
Young’s Pyramid:
QV The London Stock Exchange:
● Maxim:
“My word is my Bond.”
However, (reminber):
In reality a lot of businesses can be called exchanges but they may not adhere to the
core principles of being unbiased marketplaces.
However:
...Again: “exchange” a different word to legislate (from telephony across many
sectors…).
Regulating Crypto Marketplaces
● The phrase “Exchange” is used in the cryptocurrency / token / DLT space to cover a variety of models…
● ...& frankly a multitude of ‘sins!’
Definitions (Malta law):● "DLT exchange" means any trading and, or
exchange platform or facility, whether in Malta or in another jurisdiction, on which any form of DLT asset may be transacted in accordance with the rules of the platform or facility.”
Definitions (2):● "VFA exchange" means a DLT exchange
operating in or from within Malta, on which only virtual financial assets may be transacted in accordance with the rules of the platform or facility, which is licensed by the competent authority under this Act to provide such services;
Definitions (3):
● "VFA exchange operator" means a person or persons who manages and, or operates the business of a VFA exchange and may be the VFA exchange itself;
Definitions (4):
● "virtual financial asset" or "VFA" means any form of digital medium recordation that is used as a digital medium of exchange, unit of account, or store of value and that is not -
Definitions (5):
(a) electronic money;(b) a financial instrument; or(c) a virtual token;
Definitions (6):● "virtual token" means a form of digital
medium recordation whose utility, value or application is restricted solely to the acquisition of goods or services, either solely within the DLT platform on or in relation to which it was issued or within a limited network of DLT platforms:
Definitions (7):● Provided that the term ''DLT platform''
referred to in this definition shall exclude DLT exchanges:
● Provided further that a virtual token which is or may be converted into another DLT asset type shall be treated as the DLT asset type into which it is or may be converted;
Definition Note● “Therefore, exchanges on which only
financial instruments are traded, shall not be licensable in terms of the VFA Act but will fall within the remit of the Investment Services Act.” - Mamo TCV
Purpose of Financial Instrument Test:
to determine classification of a DLT asset as either:● [i] Electronic Money
○ (3rd Schedule to the Financial Institutions Act);● [ii] a Financial Instrument
○ (2nd Schedule to the Investment Services Act;● [iii] a Virtual Financial Asset (VFA Act); or● [iv] a Virtual Token (VFA act)
...Token Types
● Token types / categorisation will be dealt with fully in a later lecture.
● For today I merely want to introduce the basic concept that there are ‘utility’ tokens and other (‘investment’) tokens.
Therefore Key Point (for Today)
● “Utility” tokens are not financial instruments
● ANY financial instruments come under the ESMA (MIFID) regime and thus require full investment licensing.
Key Point (for Today) (2)
● Any Maltese “Utility” tokens which pay for a listing on any exchange will be regarded as an investment token, even if they otherwise would be categorised as utility tokens.
Regulating Crypto/DLT Exchanges
● Discussion paper not published at time of writing.
● Likelihood is, devil will be in the details…
a> Categorisations…
b> Therefore category caveat emptor!
Regulating Crypto/DLT Exchanges● Regulated markets (?)
● MTFs - ‘open’ / ‘lit’
● MTFs (‘dark’)
● Systematic internalisers
● Broker Dealer Platforms
● ...Casinos / etc.
“VFA” Exchange Listing Problems
● Fraud / Misrepresentation● “Pump & Dump”
○ Hence need for White Papers, oversight etc.
“VFA” Exchange Problems
Potential (legacy) VFA/DLT/Crypto exchange problems for clear regulation include:
● Lack of Independent price formation○ (market makers tied to platform)○ Liquidity management pools…○ Front running risk as a result...
● ‘Fake’ Volumes (70% wash?)
Likely Impact of Regulation
● Reduction in front running & other actions pertaining to non-independent markets.
● More orderly, balanced markets are paramount for new markets to succeed.
● Some ‘exchanges’ will likely exit the business or restructure as broker dealers.
Key Factors To Consider
● Broker intervention
● Dealer intervention
Core Exchange Revenue Streams
● Listing Fees● Transaction Fees● Data Sales
○ Historical etc.● Membership / Access Fees
○ Co location● Clearing & Settlement
NB:
Exchanges are rarely identical.
● QV Department stores...
● Anna Karenina syndrome?○ “Happy families are all alike; every unhappy family is
unhappy in its own way”
Some Key Exchange Functions
● Members / Client Relations● Compliance● Surveillance● IT ● Data● Listing● Market News● Product Development
Centralization Vs Decentralization● Issues with decentralized exchanges are
moot:1) Malta law essentially enables Near DLT
2) because: ESMA
Decentralization (DEX)A trendy current topic but:
● Pure Decentraliation hard to regulate○ Hence Augur!
1) Malta law essentially enables “Near DLT”
2) because: ESMA
Decentralization (DEX)● Often No funds under custody ● on-chain transactions for order fulfillment
and rule enforcement.● Server operators collect no matching fee.● Orders placed on the exchange can be
internally regulated via rules enforced by the clients & server.
Decentralization (DEX)
● Therefore pure decentralization appears difficult to regulate…
a. Issue of ‘control’b. Issue of Responsibilityc. Issues of “busting’ trades / error process.
Clearing & Settlement
● Clearing - the management of risk post trade but pre settlement
● Settlement - completing the trade itself.● Delivery: particularly where there is e.g. a
physical commodity to be handed over...
Clearing & Settlement (2)
A Key Principal of Settlement is “DvP”:
Delivery Versus Payment
Clearing & Settlement (3)
Traditionally settlement of securities trades has been a lengthy process until recently...
1700s Amsterdam & London T+10
‘T+Forever’ Legacy● Pre-1994: Europe T+20● 1995 UK T+10 to T+5● 1996 US T+5 to T+3● N.B. France T+3 really meant T+20● 2001 Europe: T+3● 2015 T+2… (US only in 2017)
Pre-crypto: A Brief History of T+0● Russia● Kazakhstan
(both went to T+2 for Clearstream / Euroclear Access)
● Nepal
Settlement time is Approaching
Zero Hour
Settlement time is Approaching
Zero Hour
Settlement time is Approaching
Zero Hour
...Zero Hour is Coming...
Settlement time is Approaching
Zero Hour
CCP Clearing
● Derivatives are generally held in a clearing house before their contracts expire.
● A clearing house matches every buyer to every seller - reducing risk for counterparties.
● Using clearing margin enables leverage.
Settlement time is Approaching
Zero Hour
The Future Of Clearing & Settlement
● DLT / Crypto enables real-time clearing & settlement
● Possible new derivatives clearing models● & new “CSD” models (even a decentralised
securities depositary?)
Settlement time is Approaching
Zero Hour
The Future Of Clearing
However the importance of CCPs / CSDs means regulators may struggle to endorse decentralization & / or concentration risks on less capitalised networks...
Settlement time is Approaching
Zero Hour
Conclusion
● Alt currencies are powering the “Capital Market Revolution!”
● Likewise DLT is powering the CMR in clearing & settlement
● Regulation will impact moves towards a lot of financial decentralization
Settlement time is Approaching
Zero Hour
Conclusion
● At the same time, <<plus ca change…>>● AML / KYC / DD all as vital as ever...● For VFAs understanding exchanges will
involve keeping ahead of developments & being able to discern an emergent sector of ‘blue riband’ exchanges through more dubious actors...
Settlement time is Approaching
Zero Hour
Conclusion
● In due course, exchanges will fail...● ...Leaving risks to Investors (qv Mt Gox) ● Again VFAs will need to remain diligent to
avoid a plethora of potential risks / issues to outright scams.
Pat
rick
L Y
oung
@FrontierFinanceThank You
Summary of what blockchain guarantees•
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It’s actually all about ownership
Digital assets, and their owners can be stored, and passed around...
But it’s not just about money
It’s actually all about ownership
Digital assets, and their owners can be stored, and passed around...
For example in a national property register.
Owner Property
JoshuaFlat 3, 212, Triq Il-Belt, Floriana
Gordon17, East Street, Msida
Alice33, Old Mint Street, Valletta
But it’s not just about money
It’s actually all about ownership
Digital assets, and their owners can be stored, and passed around...
For example in a national property register.
Owner Property
JoshuaFlat 3, 212, Triq Il-Belt, Floriana
Gordon17, East Street, Msida
Alice33, Old Mint Street, Valletta
But it’s not just about moneyJoshua sells his property
to Gordon
It’s actually all about ownership
Digital assets, and their owners can be stored, and passed around,
for example in a national property register.
Owner Property
Joshua
Gordon17, East Street, MsidaFlat 3, 212, Triq Il-Belt, Floriana
Alice33, Old Mint Street, Valletta
But it’s not just about money
Joshua sells his property to Gordon
Tracking of rights and ownership of MPPs
We could keep track of Malta Parking Passes (MPPs):
● Everytime you use a bus you get 1 MPP;● If you do not use an MPP for a whole week
you get 3 MPPs;● You can park in reserved MPP parkings by
using up 5 MPP;● You can trade/sell MPP to anyone.
We could keep track of Malta Parking Passes (MPPs):
● Everytime you use a bus you get 1 MPP;● If you do not use an MPP for a whole week
you get 3 MPPs;● You can park in reserved MPP parkings by
using up 5 MPP;● You can trade/sell MPP to anyone.
Tracking of rights and ownership of MPPs
Owner Owns
Joshua 5 MPP
Gordon 1 MPP
Alice 10 MPP
Malta Parking Pass 0 MPP
e.g. Alice uses 5 MPP to park in a reserved MPP space.
Owner Owns
Joshua 5 MPP
Gordon 1 MPP
Alice 10 MPP
Malta Parking Pass 0 MPP
Tracking of rights and ownership of MPPs
e.g. Alice uses 5 MPP to park in a reserved MPP space.
Owner Owns
Joshua 5 MPP
Gordon 1 MPP
Alice 10 MPP 5 MPP
Malta Parking Pass 0 MPP 5 MPP
Tracking of rights and ownership of MPPs
e.g. Alice uses 5 MPP to park in a reserved MPP space.
But, how can you trust that Malta Parking Pass Ltd. will really give you 3 MPPs if you do not use your car for a week? Or that you will really get 1 MPP each time you buy a bus ticket?
Owner Owns
Joshua 5 MPP
Gordon 1 MPP
Alice 10 MPP 5 MPP
Malta Parking Pass 0 MPP 5 MPP
Tracking of rights and ownership of MPPs
Smart ContractsSzabo (1996) machine executable transactions which enforce certain behaviour: “robust against nai ̈ve vandalism [and] against sophisticated, incentive compatible breach”
Lessig (1999) “Code is law”
Ethereum (2013) “A blockchain with a built-in programming language, allowing anyone to write smart contracts”
In gods we trust, all others pay cash...
In gods we trust, all others pay cash...
● Solution 0: Sign a contract between customer and the company, making the company liable.
● Solution 1: Add a trusted third party to enforce the contract – to receive and distribute the funds.
● Solution 2: Use a smart contract.
Smart Contracts● Can store digital assets● Can execute executable logic● All this is done in a trustless
manner, on the blockchain
contract TenPercent:
Initial company balance is 0.
[A] Payment of <amount>:
Anyone may transfer <amount> in
cryptocurrency to this contract –
* 10% is immediately sent to the charity.
* 90% is added to the company’s balance.
[B] Withdrawal of <amount>:
May be done only by the company and if
<amount> does not exceed its balance –
* Reduce company’s balance by <amount>.
* Send <amount> from the contract
to the company’s address.
contract TenPercent:
Initial company balance is 0.
[A] Payment of <amount>:
Anyone may transfer <amount> in
cryptocurrency to this contract –
* 10% is immediately sent to the charity.
* 90% is added to the company’s balance.
[B] Withdrawal of <amount>:
May be done only by the company and if
<amount> does not exceed its balance –
* Reduce company’s balance by <amount>.
* Send <amount> from the contract
to the company’s address.
Do I really need a DLT and smart contracts?● Do you require trust?
○ Have no centralised trust.○ Participants control and transfer resources.○ Participants want proof of contract logic e.g. they can
always take the money back if the deadline has passed.● Do you require decentralisation?● Why wouldn’t a central server be an option?
Where can we use Blockchain and Smart Contracts? VAT
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Applications: Land Registry● Many registries are still paper based.
● Even digital registries require lots of paper trails with many signed documents.
● Information can go missing; not be input; or input incorrcetly or be altered?
● Time consuming process (checking documentation manually).
Applications: Land Registry● Many registries are still paper based.
● Even digital registries require lots of paper trails with many signed documents.
● Information can go missing; not be input; or input incorrcetly or be altered?
● Time consuming process (checking documentation manually).
Applications: Land RegistryUsing Blockchain ensures that the data is:
● Permanent;● Tamperproof;● Decentralised (no single trusted institution);● Instant (or near instant) processing;● Reduce search time to instant.
Applications: Land Registry
● Decentralised buying and selling of property.
● Minimise intermediary fees.
● No extensive paper trails.
You wake up an hour early, and you do not feel tired, so you get up and decide to make your way to work earlier.
Applications: Improving Transport Networks
You wake up an hour early, and you do not feel tired, so you get up and decide to make your way to work earlier.
You let your driverless car know that you are not in a rush to get to work.
Applications: Improving Transport Networks
You wake up an hour early, and you do not feel tired, so you get up and decide to make your way to work earlier.
You let your driverless car know that you are not in a rush to get to work.
Your car realises that others are in more of rush, and lets the other cars through.As an incentive for letting you through the other cars, had offered 10 NTT (national transport tokens)...
Which can be used to buy fuel, or use public transport.
Applications: Improving Transport Networks
Using Blockchain we cars can transfer tokens (or money)in a decentralised manner
Applications: Improving Transport Networks
You wake up an hour early, and you do not feel tired, so you get up and decide to make your way to work earlier.
You let your driverless car know that you are not in a rush to get to work.
Your car realises that others in more of rush, and lets the other cars through.As an incentive for letting you through the other cars, had offered 10 NTT (national transport tokens)...
Which can be used to buy fuel, or use public transport.
Applications: Improving Transport Networks
Too far fetched?
Ford filed (and were awarded) a patent to do exactly this.
Applications: Improving Transport Networks
Applications: VotingRight to vote: token
Smart contract will automatically count votes
Reveal outcome only when voting is closed
Can use in:❏ Elections (national)❏ Boards
Applications: Certificates on the BlockchainYou go to lectures, study and sit for your exams.
Applications: Certificates on the BlockchainYou go to lectures, study and sit for your exams.
You graduate (and celebrate).
Applications: Certificates on the BlockchainYou go to lectures, study and sit for your exams.
You graduate (and celebrate).
And land your first job.
Applications: Certificates on the Blockchain
You climb the ladder of success.
Applications: Certificates on the Blockchain
You climb the ladder of success.
War breaks out in your country.
Applications: Certificates on the Blockchain
You climb the ladder of success.
War breaks out in your country.
You need to leave.
Applications: Certificates on the Blockchain
You settle in a new land and make it your home.
Applications: Certificates on the Blockchain
You settle in a new land and make it your home.
You go for an interview.
Applications: Certificates on the Blockchain
You settle in a new land and make it your home.
You go for an interview.
They ask for your certificate.
Applications: Certificates on the Blockchain
You settle in a new land and make it your home.
You go for an interview.
They ask for your certificate.But it was lost in the war, and the registry no longer exists.So you cannot get a job in your profession.
Access to certificates is quick and direct(normal certificates need to pay and receive via mail)
Applications: Certificates on the Blockchain
Lots of applications… don’t worry about the how•
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MDIA Act•
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ITAS Act•
ITAS Act•
ITAS Act•
Thank you!