YouTube Video https://youtu.be/hth3JNQqETc Speakers Patrick Harding | SVP of Product | Hedera Hashgraph Jon West | VP of Blockchain Engineering | Thomson Reuters Abstract Patrick Harding, SVP of Product at Hedera Hashgraph, and Jon West, VP of Blockchain Engineering at Thomson Reuters, will take the stage to discuss the future of cryptocurrency micropayments, and the tax and accounting requirements to be expected. Patrick will present a brief history of micropayments and how we got to where we are today. He’ll present a live demonstration of in-browser micropayments, using an open source decentralized application and wallet extension built on Hedera Hashgraph. The micropayments dapp was created as a developer example to demonstrate the fundamentals of building a dapp on Hedera Hashgraph, while showcasing the speed and efficiency of Hedera cryptocurrency transactions which enable practical micropayments. Jon will be discussing how cryptocurrency micropayments will be treated as taxable events, and accounting for them becomes a business requirement. He’ll explain potential ways businesses might treat distributed ledger technologies (DLTs) in relation to traditional ERP software, and how DLTs will revolutionize financial business dealings globally. Jon will conclude his presentation with a real-world example of utilizing DLTs and cryptocurrency micropayments for government tax remittance purposes, leading to reduced costs and improved efficiency for both businesses and governments.

1. Patrick Harding
SVP Product

2. The Future of Micropayments
with Hedera Hashgraph

4. War Games property of MGM and United Artists

5. "Afewyearsago,usersof
internetservicesbegantorealize
thatwhenanonlineserviceisfree,
you'renotthecustomer.
You'retheproduct."
—TimCook,CEOatApple

6. A Brief History of Micropayments
Crypto
solutions
2000
IBM
Micropayments
20152010200519951990
CyberCoin Millicent
iPIN Paypal
MicroPayments
NetbillFirst Virtual
Holdings
Digicash

7. Micropayment Challenges
• Support ad hoc payments down to 1/100 of a penny
• Fees are a fraction of the actual payment
(e.g. 1/1000 penny)
• Ultra low latency on transactions (< 3 seconds)
• Support very high transaction rates (>100K TPS)
• No prior business relationship between parties
• User experience must be fast, easy, and intuitive
Challenges

8. Data
Monetization
New Data Monetization Models
• Create entirely new and disruptive business models
• Allow interactions that are short-lived and
transient - don't justify the setup costs of a
long-term subscription model
• Remove costly intermediaries
• Reduce friction of payment lifecycles
• Eliminate collection and float issues

9. B2C
Micropayments
B2C Micropayment Opportunity
Digital Content Monetization
• Purchasing digital assets and services
e.g. news articles, streaming songs, photos, videos
Consumer/Influencer Activity Monetization
•Used to reward consumers and influencers
e.g. watching ads, answering questionnaires,
online voting

10. B2B Micropayment Opportunity
•Micropayments for API’s and micro services
•Incorporate micropayment into every API
request
•Allow businesses to monetize data/services in
real time
•Top line: Alternative to Open & Subscription API
business models
•Bottom line: Reduces account receivables ‘float’
B2B
Micropayments

11. John West
VP, Blockchain Engineering

15. Flow Diagram
Protected
Digital Asset
BUSINESS
2. Signal cost to user in response
3. Micropayment transaction included
1. User requests access to digital asset
4. Micropayment
transaction
completed
5. Digital asset shared with user
CONSUMER
Browser
User Wallet Business Wallet
B2C Micro Payments

16. The internet has been missing a decentralized
economic layer that enables ad hoc payments
Hedera makes it economically viable to send
runtime, ad hoc, decentralized micropayments
between parties

17. THE TRUST LAYER OF THE INTERNET