Presentation at Devcon4 at Prague on Scalability and Mass Adoption. Slide 18 is modified from Bank Negara and Alliance of Financial Inclusion's e-Financial Inclusion slide.

1. From Scalability to Inclusion:
Enabling Mass Adoption
David LEE Kuo Chuen
Co-founder, BlockAsset Ventures
Professor, Singapore University of Social Sciences
2 Nov 2018, Prague Congress Centre
https://devcon4.ethereum.org/
https://www.linkedin.com/in/david-lee-kuo-chuen-%E6%9D%8E%E5%9B%BD%E6%9D%83-07750baa/
www.BlockAsset.ventures
www.Sussblockchain.com

2. Scalability
• Technical Scalability
• Layer 1: Data Structure, Consensus, Sharding
• Layer 2: Side Chains, State Channel
• Social Scalability
• Ability to overcome the mindset that limits who or how
many can successfully participate
• It is about human limitations, not about technological
limitations or physical resource constraints.

3. The 5Ds of Social Scalability for Cryptoeconomics!
•Digitalisation
•Disintermediation
•Democratisation
•Decentralisation and
•Diminishing Oneself
•It is a natural progression!

4. The 1st D - Digitalisation
• New business models from digitisation
• Avoid Tokenising a legal entity – Security Token!
• Tokenise a non securitised asset – Token Security!
• Many dead assets are excluded in our financial world
• Mindset: Bringing the excluded assets back to the
economic and financial system through Digitalisation

5. The 2nd and 3rd D – Disintermediation and
Democratisation
• E.g. Livestock Token
• Disintermediate the Rent Seeking Lenders
• Democratise Micro Insurance
• Democratise Micro Lending
• GPS and Tag - Lower Risk of Lending
• Lower Lending Rate: From 100pc to 10pc!
• Mindset: balance profit and social objectives

6. The 4th D - Decentralisation
• FinTech Companies are good for inclusion but still
seeking rent and unable to cross border
• A dynamic and continuous process of distributing trust
• Purpose: To Distribute and Lower The Cost of Trust
• At Genesis, all blockchains are centralised and mutable
• Off chain governance is almost always centralised
• We can do better to distribute trust on chain, off chain
and over child chains
• Mindset: Dynamic Distribution of Trust!

7. The 5th D – Diminishing Oneself
• Diminishing Oneself: The Hardest but Essential!
• Rent Seeking
• Corporate Fiat Stable Coin - Dis-Disintermediate?
• Maximalist – We as the Centre?
• Super nodes – Drawing to the Centre?
• Mindset: We are Just Facilitators task to Minimise a
Single Point of Failure
• Satoshi Nakamoto: Diminish to Disappearance!

8. Signs Are Not Good!
• Concentration of Mining
• Concentration of Wealth
• Concentration of Developers
• Exposing to Third Party Trust in both soft and hardware
• Security Token, Scam ICO and Fiat Stable Coin
• First Layer versus Second Layer
• First: High Governance Cost Involving Human Decisions
• Second: Centralisation Risk

9. But we need more than
technical and social scalability!
Focus has switched!

10. We Need Privacy Protection and Security
• Zero Knowledge Proof, secured Multi Party Computing, Full
Homomorphic Encryption, Secret Sharing etc.
• Data and smart contract privacy, pentesting, code audit
• Open Source Software to Open Source Hardware: TEE, SGX
and more

11. The success, though not perfect,
of privacy protection is drawing
attention.
Mass adoption will be triggered
by more major hacks!

12. What is never discussed!

13. Where is the Sustainable Demand Coming from?
Where?
How?

14. Decentralised Financial
Inclusion

15. World Riches 1% – In 2017
Controlled 50%
of global wealth
Received 82% of
the new wealth
generated
Low Marginal
Propensity to
Consume
Leads to Margin
Squeeze
Results in Low
Growth
Where is the
Future Growth?

16. MAJOR UNBANKED DEVELOPING COUNTRIES IN ASEAN
438 MILLION
ADULTS WITHOUT BANK
ACCOUNTS
>100%
MOBILE PENETRATION
RATE
UNBANKED
OF SE ASIA
73%
Myanmar Cambodia Laos
VietnamIndonesia Philippines
UNBANKED
SITUATED
IN 6 MAIN
COUNTRIES:
1 https://home.kpmg.com/xx/en/home/insights/2016/04/fintech-opening-the-door-to-the-unbanked-and-underbanked-in-southeast-asia.html

17. The Demand is in Decentralised Inclusion
• Greatest Demand: The Excluded! People and Assets!
• Converting dead assets to live digital assets
• Tokenising the non securities, and then securitised the
tokens
• Fractionised and heterogenised the digital assets
• Serving the underserved
• Solving the greatest mystery of leapfrog economies
• Cheap Capital via globalised crypto funding!
• Convergence of Tech!
• Sustainable Green Business Model

18. 10 Critical Enablers for Mass Adoption!
1.Fast, stable
internet/mobile/mesh
network connectivity
2.Interoperable value
transfer gateway
3.Privacy
protection for
users
4.Strong security
framework
5.Open Source and
Trust Distribution
governance
6.Digital literacy
and UX
7.Digital ID
8.Compliance easy
10.Talent,
knowledge and
skills
9.Comprehensive
data and Oracle
ecosystem
v
Source:
Bank Negara,
AFI

19. Market Size
Confidential
Governments Lose Trillions Due to Lack of Transparency
& Inefficiencies
2.4 Billion People Without an Identity
2 Billion People Financially Excluded
$452 bn Remittances Market - High Fees
$4.4 TRILLION Lost Each Year Due to Fraud
Remittances - USD 600bn
Welfare - USD 217bn
AID - USD 161bn
Healthcare - USD 371bn
Remittances Welfare Aid Donations Ownership
of data
Healthcare
tge.aid.technology @aidtechnologyt.me/AIDTech

20. www.aid.technology
First Baby born
On the Blockchain
www.aid.technology @aidtechnologytge.aid.technology @aidtechnologyt.me/AIDTech

21. Worlds 1st Blockchain company to have two
government investors
Enterprise Ireland &
SGInnovate (government
investment arms) investment
signing May 28th 2018, Dublin,
Ireland.
tge.aid.technology @aidtechnologyt.me/AIDTech

22. Unlocking the Crypto-Economy To
Serve the Under-Served
SENTINEL CHAIN “COW TOKEN”

23. CROSSPAY
LIVESTOCK TAG
• Tamper-Proof
• NFC-enabled
• QR Code Registered

24. MOU signing with Myanmar Insurance
60m Cows
PARTNERSHIP WITH
MYANMAR
GOVERNMENT

25. Cypherpunk Governments?
• Government Open Source Projects
• Ubin 1 : Ethereum, Sing Dollars for Interbank Payments
• Ubin 2: Corda (UTXO), Hyperledger Fabric(Channels) and
Quorum(ZKP) for Real-Time Gross Settlements on Microsoft
Azure
• GeTS Open Trade Blockchain/ Networked Trade Platform
• Agnostic and Harnessing the best technology!
• Expanding into the open virtual space!
• The government diminishes itself by providing infrastructure !

26. •The excluded will change the world
•If you are doing exactly the same thing as the
Governments and Corporates, then it is not
sustainable
•That is why ease of compliance is key
•Too much of developed economy thinking in design,
e.g., Ricardian Contract instead of completely new
Token Legislation
•That is why investment should go into places that lay
out the red carpet

27. •Convergence of technology brings convergence
of profit and social objectives
•That is why the leapfrog economies may have
mass adoption before others

28. To Complete and Not to Compete
To Serve and Not to Rule
Cypherpunk Manifesto 2.0 may have to be rewritten!

29. Appendix

30. What is also not being
sufficiently discussed

31. Token Design Thinking and Governance!
• Open + Permissioned/Side Blockchains + Channels
• Ways to increase the number of administrative nodes to
distribute trust?
• How to continuously be delegating trust?
• Delegate to which nodes or parties?
• How to further minimise the cost of trust?
• How to further minimise the possibility of single point or
few points of attack?
• What about privacy?

32. What is not being thoroughly
discussed

33. Decentralised Business Model
•Inclusive Blockchain - Chain communicating with
Chain!
•Blockchains as nodes of entire ecosystem:
• Interoperability, Smart Contract, Hash Locking etc.
•Cross Chain
• Risk involving Privacy in Notary Technology, Relay/Side
Chain Technology, Hashed Time-Lock Technology
• Risk involving Smart Contract, Decentralised Oracles

34. Decentralised Business Model
•Business Model
•Value of Blockchain: Discounted future
income flow
•Fees + new tokens created
•The more connected chains, the more
valuable!
•Higher Cost of Hacking!

35. Successful Model in Digital Economy
•3Cs: Community, Compassion, Creativity
•5D’s: Digitalisation, Disintermediation,
Democratisation, Decentralisation and
Diminishing Oneself
•LASIC Business Model: Low Margin, Asset
Light, Scalable, Innovative and Compliance
Easy

36. Cow Token
Onshore: a Private Blockchain
Centralized Governance
Decentralized Technology
International Cow Token
Offshore: a Public Blockchain
Decentralized Governance
Decentralized Technology
Token
exchange via
smart
contract
ERC20：
Borderless
Fractional
Digital Asset
Ownership
Cow Token: Inclusive Blockchain Design
Token
exchange via
smart
contract
Domestic Cow Token
Onshore: a Consortium Blockchain
Centralized Governance
Decentralized Technology
David Lee (2018), "Decentralisation Technology and Distributed Innovation

37. LIVESTOCK IDENTITY REGISTRATION
http://www.infocorp.io | info@infocorp.io | Copyright 2017
LIVESTOCK INSURANCE
LIVESTOCK COLLATERALISED LOANS
ELECTRONIC PAYMENTS
LIFE INSURANCE
NEW FINANCIAL INCLUSION MODEL

38. Smart
Access to (financial)
services on the platform
• A user requires a financial service
(such as a loan)
• User grants consent for a data
assessor smart contract to decrypt
info
• Smart contract returns
assessment results to financial
service without revealing the
granular data
Big data analytics
• An entity wishes to collect big
data to perform analytics
• Smart contract serves as a data
subscription provider
• Looks for and requests consent
from users who fit profile
• Pay out users periodically for
feed of data
• Anonymizes data to provide to
entity
• Collects tokens from entity to
pay out to users
•Jupiter Chain:

39. Others and the Cypherpunk Government
• SmartMesh: Decentralised Mesh Network
• MediShares: Decentralised Mutual Aid Insurance

40. References for Singapore
IMDA
Transformation Map
https://www.imda.gov.sg/
-
/media/imda/files/industr
y-
development/infrastructur
e/technology/technology-
roadmap/wg4-executive-
summary-for-artificial-
intelligence-and-data-and-
blockchain.pdf
MAS Project Ubin
http://www.mas.gov.sg/Si
ngapore-Financial-
Centre/Smart-Financial-
Centre/Project-Ubin.aspx
Enterprise
Singapore
https://spring.enterprises
g.gov.sg/nurturing-
startups/pages/nurturing-
startups-overview.aspx
Singapore Custom’s
Networked Trade
Platform
https://www.customs.gov.
sg/about-us/national-
single-
window/networked-trade-
platform
PSA and Crimson
Logic
https://www.enterprisesg.
gov.sg/media-
centre/media-
releases/2018/august/cri
msonlogic-embarks-on-
next-growth-phase-psa-
becomes-majority-
shareholder
SUSS Graduate
Courses
https://sussblockchain.co
m/postgrad-fintech/