Where is blockchain in comparison to the internet? From insurance, government, gambling, real estate, and other industries, how are they using blockchain? What does this mean for banks, payments, lending, and MSBs? Presented at The Blockchain Series Miami.

1. STATE OF BLOCKCHAIN 2017
Olivia Chow
o@yokip.consulting

2. What does it mean
when people say:
“Blockchain is the
new internet?”

3. INTERNET BLOCKCHAIN
1966 - 1969 ARPANET developed by US Defense 2008 - 2009 Bitcoin developed by Satoshi Nakamoto
1970 - 1972 Only available to academic and government institutions 2009 - 2010 Only accessible to cypherpunk people in the know at first (no exchange)
1972 Email and FTP 2010 First bitcoin exchange launched
1973 - 1982 TCP/IP allows other networks to be built on ARPANET backbone and
connect them all
2015 Ethereum, Qtum, Eos allow for multiuse addresses and apps to be built on top
of blockchain
1980s Widespread Ethernet (LAN) development by businesses 2015 Hyperledger launched and private blockchains spread
2016 Enterprise Ethereum Alliance formed
1973 - 1982 Internet scaled by tiering networks and creating gateways to connect
them
2016 Blockchains still experimenting with sidechains, lightening networks, different
mining algorithms for scale, Bitcoin forks
1985 - 1995 Government funded NSFNET for internet infrastructure 2017 Chicago, Dubai, Hacera, Hyperledger, Consensys and more hash assets on the
blockchain
1995 Netscape IPO — sparks Americans imagination of internet future 2017 Soaring of Ether price and ERC-20 token — begins ICO and cryptomarket boom
1993 - 2002 Browser wars seeking how to monetize internet with Google on top Ark and competitors to link all blockchains together and access transparency and
manage privacy
1998 Netscape crushed by Microsoft Amazon or Google responds?
1998 Ebay IPO — re-ignites .com rally Another ICO boom? Or will it bust before?
2000 - 2002 Dot com bubble Soon?
2003 - present Web 2.0 - Social media DAOs and DApps after assets are hashed on the blockchain, scalability solved, and
consumer demand for privacy and transparency can be met. Web 3.0???

4. Development differences: Internet v. Blockchain
● Payments infrastructure was not affected by internet
● IPO v. ICO
○ Does not rely on VC funding → Originators independently wealthy
○ Did not need public funding (no NSFNET — yet) to monetize
○ Did not need a consumer-facing product to raise millions of dollars
● Blockchain is developing its technology, business adoption, public,
commercialization, and public partnerships ALL AT ONCE!
○ It feels like 1996 or 1998
○ But in terms of tech development and scale, we’re in 1975 or 1980

5. 2017: Blockchain, blockchain, blockchain.
● Enterprise Ethereum Alliance and ICOs send ETH to grow 4800% in 6 months
● Japan and Australia determine Bitcoin a currency
● CBOE to launch XBT futures
● $309B crypto marketcap v. $574B in remittances in all of 2016
● Bitcoin fails to fork and continues to hit $10,000
● Nigeria, South Africa, Slovenia, Bolivia, and Ghana Googled “Bitcoin” the most
(in that order)
● ICOs raised over $2B in 2017, $2B raised in VC equity since 2013
● China bans ICOs

6. Where is all this
funding going
towards?

7. Top 5 most established blockchain industries
Industry Status Barriers Players Problem addressed
1. Payments Active Protocol scaling, regulation, liquidity
between fiat pairs
Bitcoin, Dash, ZCash, Ripple, Coinbase,
Bitpesa, OKLink, Bitshares, Stellar,
Circle, Mastercard, Veem, 10x, Bitpay,
Coinbase
Replace USD for world trade
currency, low-fee, near-instant
settlements, alternative to
correspondent banking
2. Business
investment
Active Ballooned but facing regulatory
challenges and possible bubble
Ethereum, Waves, TokenMarket,
SingularDTV, Science, Blockchain
Capital, Polychain Capital, Digital
Currency Group
Democratized IPO and provide a
mechanism for startups to fund
independently
3. Online
gambling
Active Simple dice games and bitcoin
gambling performing well, but more
complex visual games on blockchain
have yet to catch on.
Acebusters, Edgeless, iDice, Etheroll,
FunFair, FortuneJack, Sportsbet
Provably fair house, share in house
earnings,
4. Securities
and Trading
Active Marketcap of cryptocurrencies is
$309B, but skeptics call bubble.
CBOE to launch XBT futures
Bittrex, Kraken, OKCoin, Oasisdex,
Bitshares, Coindash, Enigma, eToro,
CBOE, Gcoin, Tether, Digixdao, Jibrel,
Swarm, LedgerX, Axoni
Allows interoperability with crypto
tokens, liquidity, decentralization,
trusted log of payments and
transfers of ownership, increased
ability to share assets
5. Media Active Business development, quality
content that isn’t just monetarily
driven
Steem, SingularDTV, DTube, Civil Content creators have more control
over monetization, fundraising, and
ownership. IP liquidity.

8. Crypto advances w/incumbent slow adoption
Industry Status Barriers Players Problem addressed
6. Data storage Active,
pilots
Scale, business development Sia, Filecoin, Maidsafe, Storj, Golem,
Bluzelle, Azure Blockchain Service
Better utilization of storage via
marketplaces, shared storage, and
improved security with
decentralization
7. Voting Active,
pilots
Business development, government
and municiple adoption
Bitnation, Aragon, Augur, Gnosis,
Swarm, Voatz, Sovereign
Trusted voting processes, accurate
information, democratization of
processes.
8. Lending Active,
pilots
Limited to crypto. Pilots, requires
identity to develop new credit
scoring and regulatory
improvements in payments.
Salt, WeTrust, ahorrolibre, Moeda,
Celsius, Bloom,
With more data potential for more
tailored credit scores, cross-border
lending, improved liquidity and
access
9. Marketplaces Active Business development District0x, Bitbay, OpenBazaar,
Canya
Low fees, trusted data, trust
between parties
10. Identity
management
Active Business and ecosystem
development
Civic, uPort, sovrin, Blockstack Control over identity, prevention of
identity theft, improved identity
recovery, makes possible many
other aspects of blockchain
11. Insurance Active,
pilots
Industry slow to move, lack of
development from ICOs, many
unproven business models
Sep 2017 - Fizzy, Bitpark, Aigang,
Umbrella Coin, Blockchain Insurance
Industry Initiative B3i, IBM, Risk
Cooperative, fidentiaX, AIG
Reduce custody risk, increase
liquidity, reduce claims fraud,
streamline claims process,
streamline security settlement

9. Pilot zone
Industry Status Barriers Players Problem addressed
12. Real Estate
and land
Infancy,
pilots
Dubai first city to commit to
registering real estate on
blockchain. Time. Bureaucracy.
Atlant.io, IBM, Chicago, Dubai,
Switzerland, Delaware, Symbiont,
Ubiquity, Brazil, Georgia, Xinyuan Real
Estate
Maintain accurate records, liquidize
real estate, fairer marketplaces,
globalize contracts
13. Finance Infancy,
pilots
Risk-averse finance companies are
cautious before implementation
Symbiont, R3, Chain, Nimbrix,
Quorum
Streamlined processes, accuracy of
data, new markets, cost-saving,
better evaluation of investments
14. Supply
chain
management
Pilots Digitizing assets face
infrastructure barriers in remote
areas, IoT needs to be developed,
large initial investment,
competing interest to withhold
transparency
Provenance, Chronicled, Sweetbridge,
Wabi, RMG, GCoin, Maersk, Walmart,
Kroger, Nestlee, Unilever, IBM
Track items end-to-end, prevent
fraud, identify bad batches of food,
streamline payments, optimize
supply chain, provide end-user tools
to make decision about purchases,
streamline regulation
15.
International
trade
Pilots Regulatory barriers and crypto
payments infrastructure in
banking
IBM, Wells Fargo, BBVA, Waves Streamline letters of credit
settlement, untapped markets,
improved transparency
16. Healthcare Pilots,
whitepa
pers
Requires large industry
agreement, confidential
information, lots of stakeholders
invested in status quo
Globex Health, Patientory, Simplyvital
health
Provide much needed price,
insurance, and service
transparency. Streamline insurance
settlement. Provide better more
tailored care for patients. Affordable
healthcare.

10. Phases of blockchain implementation
0. Peer-to-peer network with crypto to conduct services directly
1. Build infrastructure and incentives to allow for digitization
2. Bridge with the real world by registering users, timestamp assets
onto the blockchain
3. Develop applications, like wallets, user oriented interface designed
for transparency, smart contracts, decentralized exchanges, data
analysis and tracking tools

11. 15% banks surveyed
by IBM are
implementing
blockchain solutions
in 2018.

12. Meanwhile, fax use still growing in 2017 at 8%
WIRE AND FAX INTERNET BLOCKCHAIN
Secure direct unshared connection Need to set up separate
email-to-email encryption
Private blockchains allow for direct
private transactions that can be
cryptographically hashed when
complete
Paper trail with transaction reports
and phone logs
Emails can be doctored, deleted, and
rely on cooperation from email
provider
All transactions permanently stored
and hashed
Network existing and functioning Customers and industries resistant to
change
Perceived growing threats by
fintechs, globalization, and possibility
of tapping under-utilized markets
Which one is it?

13. Fear of Fintechs is Real
“I’m totally convinced that the
battleground of banking is not the
front office. The battleground is
the back end. There’s no
understandable reason why the
financial-services industry has not
developed a more comprehensive
sharing of the value chain.”
-- UBS Group (UBS) CEO Sergio Ermotti

14. E-retailers plateau domestically
2017 Pitney Bowes Report

15. Room for
growth in
emerging and
frontier
markets
2017 Pitney Bowes Report

16. Trailblazers understand the potential for new markets

17. Where banking will be blockchainized?

18. Opportunity for MSBs
Deposit taking ripe for disruption
How can we help facilitate global payments so that banks can more
easily access these untapped markets?
How can we use blockchain to do this?
What about reducing compliance overhead?