Blockchain represents Web 3.0, the next phase of The Web, and will significantly touch all of our lives in the coming years. But its power is as reformative as it is disruptive. Jamie explores how blockchain technology will both reform banking and insurance as well as disrupt the disruptors of Web 2.0. He will give a glimpse into the future at how blockhains will lead to an exponential growth of all other major trends inc. artificial intelligence, internet-of-things, 3D printing providing them with a new infrastructure to scale securely and combine in interesting ways.
2. Web 3.0 – Web of Ownership / Trust
• Silicon valley began the computing revolution
• Web 1.0 connected those computers up in a ‘Read-
Only Web’
• Web 2.0 allowed for mediated P2P with ‘Read-Write-
Web
• Web 3.0 enables unmediated p2p / m2m / b2b / a2a
via Read-Write-Own Web
4. Bitcoin Blockchain – digital currency
Counterparty – digital assets
Ethereum Decentralised
(Software) Computer
Decentralised Applications
Decentralised Autonomous
Organisations
(UNPERMISSIONED) (PERMISSIONED)
Eris Industries – permissioned apps
Ripple – bank to bank payments
Hyper Ledger / Linux – open collab.
Multi-chain Universe
Accenture’s Editable blockchain
5. What is the value they can bring?
Provenance
P2P
Exchange
Digital Trust
Supply Chains
Task
Automation
Distributed
Database
Auditability
B2B
Marketplaces
Identity Paperless Security Transparency
GovernanceRedundancyReduce Fraud
Sharing
Economy
B2C
Marketplaces
M2M
Liquidity
Asset Integrity Back Office
6. (UNPERMISSIONED) (PERMISSIONED)
Public / Private
Commons based peer
owned networks
More efficient
private markets
Secure, private, censorship
proof, self financing
Fraud proof, auditable,
automated, liquid
Reconfiguring 2.0Fixing legacy systems
7. • Open source, not rely on donations
• Protocol layer (infrastructure)
• Variation of crowd funding / crowd sale IPO
• Network token pre-sale
• Developers who build apps on top grow holing value
• Funded their apps with profits from token holdings
• Very powerful network effect
• Legal gray area (securities law)
First Industry to Self Finance
2.0 participatory but mediated
compromise / trade off
become very centralised; Network effects, Economies of scale & VC financing models
Trust brokers sharing of our content & things
(Facebook, Google, AirBnB, Uber)
Weakness in security, privacy & censorship
3.0 is an upgrade. A blockchain replaces the trust broker. trustless I say trust full
How web was supposed to work. very deliberate
Not just content but money
share or transact: assets, data, resources.
Everyone votes on if they understand
Catch all term
record assets, identity and therefore ownership over time
The difference is we all own this ledger. We can all use it. We don't need a central intermediary to manage it for us
This removes their costs, time delays & censorship
When two or more of us transacts we all simulatously see that change recorded in real time.
assets are tokens, long unique numbers, no two people can own at the same time
This ensures provenance
All transactions are encrypted and ledger is uneditable or immutable
These transactions are processed, or mined, by a distributed network but are pseudo anonymous so they cant be corrupted
The majority of those miners ultimately decide the rules of the network - consensus
Smart contracts are simple computer programs that can be built onto of this ledger to automate tasks.
This can be as simple as an escrow service or or to manage a sequence of events in a complex supply chain
The rules that govern these tasks are themselves also incorruptible
This means whole markets can be automated with surety
blockchainS plural
Evolving as open source
8 years
Divergence – permissioned / unpermissioned
Inherently fractious
Changes / improvements decided by 51% of network
Tension, ideals + commercial pragmatism
In actuality networks led made by cabals
IMAGINE A FACEBOOK FORK
uniquely verifiable tokens can be purely digital or associated with physical assets
they can be tracked as they move through a supply chain
this means provenance
Sovereign identity KYC
Marketplaces between not just people but things
Ledgers provide auditability, which is why regulators are warming to the idea
Digital cash is much more preferable to Govts than just cash
two very different driving motives
Reconfiguring 2.0 to have Web was intended
Without need for professional investors (good / bad)
This more so now private money in the VC world is drying up.
less relevant where a startup is an application (or DApp) whose use-case should be clear to a traditional professional investor who can provide not just capital
Dismiss as hype, but all tech go through hype cycle
Adoption Curve:
Bitcoin Experiment
BaaS
Open Ledger Standards
Professionalization
Gartner Hype Cycle:
Depends on location. Barbers
Over reach. Protocol layer catching up with promise
DAO - largest crowdfund ever $168m
1,200 publicly listed startups and growing
40 every month doubled in last 6 months
Now not just driven by techies looking for a problem
But commercial folk from within industries connecting the dots
Infra focus on $1.1bn investment to date
Smart energy grids
Bill of landing
Cross border trade
Ad serving media
KYC and compliance
Cisco here is this building want 20% of startups target
20% of Barclays last batch were blockchain
EY ran dedicated blockchain accelerator
Taking VERY simple use cases.
Gaurdtime now have a handful of big channel partners
protocol / infrastructure layer
unpermissioned entirely self financed
Over hall banking and insurance / capital markets
Fire walled from disruption
Automation / digitisation
Clearing and settlement costs billions and, according to Santander’s 2015 report LINK, it is estimated that moving this into a digital record, near real-time and over the internet, will save the industry $20 billion a year in more in overhead costs due to D+3. D+3, or T+3, is the three-day clearing and settlement cycle
common operating system it allows to convergence
intellectually and commercially interest
There growth limited by not having an infrastructure that secures their assets. data. files.
AI
IoT
Autonomous Robotics
VR / AR
3D Printing
Lets look at a future blockchain enabled convergence scenario.
AI, Autonomous Robotics / Drones, 3d Printing, Blockchain
A car’s IoT sensor picks up a non critical part needs replacing
The car has an identity on an automotive ledger. Associated to it it has a smart contract 3rd party warranty which means it just needs to pay 50%
The car (as a wallet) orders a new part from a parts manufacturer for $1000
The cars warranty smart contract pays $500 towards it
All money is held in a smart contract escrow on the ledger until the part has been delivered to the garage to be fitted
The parts manufacturer 3d printer receives the order of $1000.
It pays $500 to the manufacturer to print the associated 3d cad design knowing with surety the customers money is held in escrow
Once printed an instruction is sent to the supply-chain ledger where a drone is ordered from an autonomous fleet for $100
The drone collects the package credits $100 pays $5 to its insurer and $95 to the drone fleet network DAO
The car is instructed to drive itself to the garage to fit the part
All this is done without any meat including accountants
An AI audits the ledger to check for anomalies which are reported for end of month reconciliation
Why on a blockchain? because all these various parties need to trust the network is secure and the flow of money gets to where it needs to get to and cant be corrupted. distributed