Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology

This is from a talk I did at the Cards & Payments conference in Melbourne on 21 May 2015 regarding Bitcoin Applications In Banking and Retail.

Transcript

1. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology @alantsen CoinDoctrine
2. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology A Little About Me 01 • Ex-corporate tax advisor • Bitcoin consultant (CoinDoctrine) • Co-organise the Bitcoin Melbourne meet up • Editor of The Week In Bitcoin
3. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology Talking Points 02 The Currency 1. 2. Current Applications 3. Future Applications
4. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology The Currency 03 A New Kind of Money?
5. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 04 The Currency A New Kind of Money? A Better Way To Transact • To date much of the conversation has revolved around bitcoin as a currency. • Touted as a cheaper way to transact. • Reduced merchant fees • Reduced chargebacks • Speed of transaction. • Companies accepting bitcoin include: Dell, Microsoft and Webjet.
6. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 05 The Currency A New Kind of Money? The (Current) Reality • Still hard to purchase bitcoin. • Adoption curve. • Friction in bricks & mortar setting. • Little understanding by everyday consumers of what it is. • Why? Still early days. By Chairs & Co Shell Chair 1.4 BTC Pay 1.4 BTC NOW Signed In As Satoshi Nakamoto Signed In As Satoshi Nakamoto SMS Code SMS Code My Wallet (3.432 BTC)
7. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology Current Opportunities 06 The Blockchain
8. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 07 The Underlying Technology - The Blockchain • Huge amount of interest in the underlying technology that Bitcoin is built on - the Blockchain • A few ways one can think about the Blockchain. • A distributed, replicated ledger. • A protocol layer - SMTP for value transmission. • A distributed database. • The technology is really starting to get traction. • Nasdaq trial on Nasdaq Private Markets. • Western Union trial of Ripple. Current Opportunities Financial Piping Current Opportunities Financial Piping
9. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology Current Opportunities 08 Financial Piping
10. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 09 Current Opportunities Financial Piping Moving Monetary Value • Using the Blockchain to move value without reference to bitcoin. • It can be the ‘piping’ for the movement of value. • Hugely disruptive to, for example, the $514b remittence market • See Abra - peer-to-peer banking using the Blockchain to move value. • See Ripple - a competing blockchain. In trials with Western Union. $ $ $
11. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 10 Current Opportunities Financial Piping Using The Blockchain To Send, Receive And Track ‘Value’ • The blockchain at its core is a ‘distributed, replicated ledger’ of transactions. • Can be a powerful tool to, for example: • Run reward/ loyalty points; • Issue and manage securities; • Issue and track pre-paid cards; and • Manage energy credits; • See Nasdaq’s trial of Bitcoin blockchain to manage Nasdaq Private Market (coloured coin implementation). • Worth noting, this can be done by way of ‘private blockchain’ too (see Ripple, Eris Industries)
12. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology Future Opportunities? 11
13. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 12 What we talk about Today Discussion mainly surrounds bitcoin as a currency. Bitcoin’s impact is still largely hidden The real impact of Bitcoin (as a protocol) is yet to be seen. Just The Tip Of The Iceberg Innovation beyond the currency
14. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 13 Just The Tip Of The Iceberg Asset Transfer Settlement Examples Remittance, inter-company transactions, SWIFT competitor 1Cross- boarder Payments Remittance & SWIFT 2 Automated Resource Allocation ’Realtime’ Value Transfer 3 Examples Transfer of property (e.g. shares, derivatives), automatic settlement of transactions. Examples Automated purchasing of power at the best price in the market, Automatically connecting to wi-fi and using bitcoin to pay for it, wages paid in realtime Innovation beyond the currency The notion of bitcoin as a currency is the ‘tip of the iceberg’
15. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology Bitcoin Opportunities In the Future The New Financial Rails •Bitcoin offers a way for value and ownership to be transferred more quickly and with lower cost. •All this can be done without a trusted third party. Bitcoin will have the biggest impact when we don’t know it’s Bitcoin that is being used 14
16. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run." - Roy Amara 15
17. Bitcoin Applications In Banking and Retail - Taking Advantage Of Blockchain Technology 16 Thanks for listening! Feel free to contact me @alantsen CoinDoctrine The Week In Bitcoin