Crypto Traders event at Atlas Workspace 04-2018
1 like143 views
The document discusses the evolution and significance of blockchain technology, including its applications in finance, identity management, and record-keeping. It highlights the rapid growth of cryptocurrencies, the functionality of blockchains, and their potential to solve issues of trust and decentralization in transactions. Additionally, it mentions investment opportunities in blockchain-related companies and the need for collaboration among participants for successful implementation.
Crypto Traders event at Atlas Workspace 04-2018
- 1. Cryptocurrencies & Blockchain True Tales from a Blockchain Realist April 2018
- 2. #FollowTheMoney • Token sales of blockchain are north of $2,000,000,000 in 2017 • CME (12/18) and CBOE (12/10) begin trading Bitcoin futures • $500M in VC money in 2016 • Bitcoin hit $4,000 $7,300 $10,000 $12,000 $19,000 • 18,000 cryptotokens launched • The rise of the Crypto-millionaires • NASDAQ begins trading ETFs 1
- 4. What is a blockchain? 3 Recorded events (ledger entries) recorded chronologically and verified by multiple third parties. May be public or private
- 5. Blockchain Evolution – FinTech Emerges • 1.0 – Currencies § Hardwired to crypto fund transfers. Uni-tasker • Consensus based § 2.0 – Contracts o Recorded agreements across transactional processes. Multi-tasker § 3.0 – Organizing Activity o Assets are owned and may transact with one another. o Smart homes, distributed devices in remote areas (E.g., farms) 4
- 6. What’s in a Blockchain Ledger? • Rows of information, like a database • Validation and verification is based on mistrust • Public audit trails, (we’ll talk about private ones later) • Record keeping by many third parties often unknown 5 1. Eye Exam 5/12/2017 Patient 8931 2. Visit on 5/12/2017 3. Need new glasses 4. New prescription Patient 8931 5. Prescription 99881 filled 6. Follow-up appt scheduled 6/12/2017 7. Annual Checkup 5/12/2018 1. Eye Exam 5/12/2017 Patient 8931 2. Visit on 5/12/2017 3. Need new glasses 4. New prescription Patient 8931 5. Prescription 99881 filled 6. Follow-up appt scheduled 6/12/2017 7. Annual Checkup 5/12/2018 1. Eye Exam 5/12/2017 Patient #8931 2. Office visit on 5/12/2017 3. Need new glasses 4. New prescription Patient 8931 5. Prescription 99881 filled 6. Follow-up appt scheduled 6/12/2017 7. Annual Checkup 5/12/2018
- 7. Bitcoin- Just Three Things 1. The value of a bitcoin is market reactive (volatile) - Like stocks 2. Bitcoin transactions are not reversible - Like cash 3. There are no bitcoins § There are only bitcoin transactions 6
- 8. Why will Blockchains get Adopted? $7,000 7
- 9. Why Will Blockchain gain adoption? 8 $400 Ether • 600,00 transactions per day less than $.50 • There are a total of 18,140 ERC-20 Token Contracts • High in January of 1.23M per day at $4.15
- 10. What Makes a Good Case for using Blockchain? 1. Multiple parties share data § Multiple participants need views of common information 2. Multiple parties update data § Multiple participants take actions that need to be recorded and change the data 3. Verify Trust § Every participant requires validation of the transactions and integrity of data written 4. Decentralized § No single repository or owner of the repository locations 5. Distributed Ledger § Data is written across multiple ledger entries 9
- 11. What Problem Does Blockchain Solve? 10
- 12. What Problem Does Blockchain Solve? 11 • Shared • Replicated • Immutable • Consensus oriented • Final
- 13. Is this a Blockchain Use Case? 12 Yes/No Am I using a database? I don’t need a blockchain Maybe
- 14. 13 Trust
- 15. 14 Distributed
- 16. 15 Coordination
- 17. Dependent 16
- 18. 17 Give us Boring • Unilever buys Dollar Shave Club for $1B – May 2016 • Subscription model
- 19. Is This a Hammer In Search of a Nail? • Inter-Company Transfers (manual hand-offs) § Insurance § Property and title transfers § Anything with government as a third party • Verifiable Record Management § Formally physical assets now digital (stocks, currency, prescriptions, vehicles) • Identity Management § Identity and “certificates of trust” for mobile economy companies such as AirBnB and Uber § Reputation • Smart Contracts § The new Software as a Service 18
- 20. Where are Some Immediate Opportunities? • Onboarding § Costs § Opportunities § Churn in the industry • Fraud Detection § Estimates show that 5 – 10% of non-healthcare claims are fraudulent. Identity resolves tracking the information • Disaster recovery • Identity • Micropayments 19 #FollowTheMoney
- 21. Other Questions To Ask • Does this blockchain have an earnable token? #FollowtheMoney • How will we get data into the blockchain? • Does this require a consortium to agree to its use? • How will we analyze the data? • Does it perform at the speed of business? 20
- 22. Barriers/Opportunities • Regulators want to address single entities and not networks • Too many use cases where everyone must participate • Hot potato of risk § Last one holding it, gets stuck with the check • Personally Identifiable Information (PII, PHI, PCI) § Right to be forgotten § Where is the data shared/stored § Keep the data only for as long as necessary 21
- 23. Pithia Snapshot Headquarters Redmond, Wa Founded 2017 Current Fund Size 80M CrytoTokens ~$170M USD Fund Size Catena Fund One -$20M Number of Funds Catena Fund One (Active) Fund Two & Three (Planning cycle) Target Industries • Blockchain-enabled services • Financial Services (non-crypto) • Hi-Tech • Media & Entertainment • Healthcare Geographies • North America (primary focus) • No limit Investment/Deal Style • Significant minority (10 – 15% equity) • Board and Operational Support Key Investment Criteria • Foundational to the blockchain ecosystem • Growth oriented • Transformational in their industry Website www.pithia.com Contact Lawrence.Lerner@pithia.com 22 Select Portfolio Companies lifeID lifeID was founded with the vision that every person in the world deserves to own and control their identity. TBA Pithia Overview Pithia invests in new companies developing blockchain-based businesses, existing blockchain companies adding RChain, and software companies, foundations, and enterprises extending their products and business models with blockchain.. We seek out businesses that are ”tilling the soil and planting seeds” in the overall ecosystem and in select industries. Building strong foundations enable longer term more aspirational endeavors.
- 24. Thank You! Lawrence I Lerner, CEO Lawrence.lerner@pithia.com www.pithia.com Twitter: @RevInnovator
- 25. Why separate the Blockchain from Bitcoin • Common vocabulary § The blockchain – The underlying ledger solution for Bitcoins § A blockchain – The technology solutions that solve distributed record keeping § Distributed Ledger Transactions (DLT) – Consensus based transactions § Proof of Work § Proof of Stake 24Byzantine General Scenario