The Great F(l)attening: Unintended Consequences of Architecture

Transcript

1. The Great F(l)attening
   Unintended Consequences of Architecture
   August 2019
   Meltem Demirors | CoinShares
   @Melt_Dem / @CoinSharesCo
   

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   Important Disclaimer
   

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3. The Great F(l)attening: Consequences of Architecture
   

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4. The Great F(l)attening: Consequences of Architecture
   

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5. The Great F(l)attening: Consequences of Architecture
   

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6. The Great F(l)attening: Consequences of Architecture
   

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7. The Great F(l)attening: Consequences of Architecture
   

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8. The Great F(l)attening: Consequences of Architecture
   Copyright © 2019 CoinShares Group. All rights reserved. 8
   Architecture is essentially a social and cultural product, and is influenced by the
   ideas, values, beliefs, activities, relationships and forms of the social organizations
   that they sustain. Society produces buildings, and the buildings, although not
   producing society, help to maintain many of its social forms.
   - Pritzker Prize
   Design has profound implications for the civic possibilities of innovation and
   experience for everyone. If you build something, it doesn’t affect just you. It affects
   everything around it.
   - Virgil Abloh, Designer
   

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9. The Great F(l)attening: Consequences of Architecture
   The Times We’re Living In
   MISTRUST GENERATIONAL SHIFT DISRUPTION
   • Rising populist tide, trade wars,
   growing societal unrest
   • Constant revelations of abuses of
   power of all types
   • Balkanization of society in physical
   and digital world
   • Largest generational wealth
   transfer under way – or maybe not?
   • Failing social entitlement systems
   • Millennials facing life-long
   indebtedness
   • Fundamental shift in trust models
   • Drastic reduction in friction and
   barriers
   • Fractional, tokenized ownership
   models
   The preference for crypto is driven by social, political, and economic factors
   Copyright © 2019 CoinShares Group. All rights reserved. 9
   

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10. The Great F(l)attening: Consequences of Architecture
    The Presents Shape our Desires for the Future
    Copyright © 2019 CoinShares Group. All rights reserved. 10
    

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11. The Great F(l)attening: Consequences of Architecture
    A Paradigm Shift
    Physical World
    Price of Physical Things = pp
    Today – the digital world is undervalued, and controlled by a small group of companies
    In the Future – an increasingly digital world where pd
    > pp
    creates massive arbitrage opportunities
    VALUE TO BE CAPTURED
    Digital World
    Price of Digital Things = pd
    Copyright © 2019 CoinShares Group. All rights reserved. 11
    $800B
    $500B $900B
    $1,000B
    $900B
    Our Digital Overlords
    $4.1T in Market Cap / 5% of US GDP
    

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12. The Great F(l)attening: Consequences of Architecture
    Mapping Out This Paradigm Shift
    Copyright © 2019 CoinShares Group. All rights reserved. 12
    

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13. The Great F(l)attening: Consequences of Architecture
    1982
    Independent
    Dependent
    Digital
    Physical
    Wine
    Gold
    Precious Metals
    Oil
    Real Estate Equities
    Copyright © 2019 CoinShares Group. All rights reserved. 13
    

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14. The Great F(l)attening: Consequences of Architecture
    1992
    Independent
    Dependent
    Digital
    Physical
    Wine
    Gold
    Precious Metals
    Oil
    Real Estate Equities
    Domain Names
    Copyright © 2019 CoinShares Group. All rights reserved. 14
    

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15. The Great F(l)attening: Consequences of Architecture
    2002
    Independent
    Dependent
    Digital
    Physical
    Wine
    Gold
    Precious Metals
    Oil
    Real Estate
    Equities
    Game Assets
    Domain Names
    Copyright © 2019 CoinShares Group. All rights reserved. 15
    

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16. The Great F(l)attening: Consequences of Architecture
    2012
    Independent
    Dependent
    Digital
    Physical
    Wine
    Gold
    Precious Metals
    Oil
    Real Estate
    Equities
    Bitcoin
    Game Assets
    Domain Names
    Copyright © 2019 CoinShares Group. All rights reserved. 16
    

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17. The Great F(l)attening: Consequences of Architecture
    Pay no attention to the man behind the curtain
    

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18. The Great F(l)attening: Consequences of Architecture
    2019
    Independent
    Dependent
    Digital
    Physical
    Wine
    Gold
    Precious Metals
    Oil
    Real Estate
    Equities
    Game Assets
    Domain Names
    Copyright © 2019 CoinShares Group. All rights reserved. 18
    

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19. The Great F(l)attening: Consequences of Architecture
    What Does a World Without Trust Look Like?
    Copyright © 2019 CoinShares Group. All rights reserved. 19
    

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20. The Great F(l)attening: Consequences of Architecture
    Crypto is Different
    Copyright © 2019 CoinShares Group. All rights reserved. 20
    “Financial institutions make people feel safe by hiding risk behind
    layers of complexity. Crypto brings risk front and center and brags
    about it on the internet.”
    - Elaine Ou, Global Financial Access
    

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21. The Great F(l)attening: Consequences of Architecture
    Independent
    Dependent
    Digital
    Physical
    Wine
    Gold
    Precious Metals
    Oil
    Real Estate
    Equities
    Game Assets
    Domain Names
    Copyright © 2019 CoinShares Group. All rights reserved. 21
    $80T
    $280B
    “Tokenized" Equity
    “Tokenized" Debt
    “Tokenized" Commodities
    $250T
    Markets are Taking Notice
    

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22. The Great F(l)attening: Consequences of Architecture
    Ideas Don’t Exist in Isolation
    Regulation
    User Preferences
    Service Providers
    Compliance
    Requirements
    Political Pressure
    Macroeconomic
    Climate
    Financing
    Talent
    Technology
    Execution
    Financial Planning
    Operational Discipline
    User Acquisition
    Idea
    Distribution
    Security
    

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23. The Great F(l)attening: Consequences of Architecture
    Not so Much Revolution as Evolution
    Evolution
    Early adoption fits the existing regulated structure
    Revolution
    Experimentation phase takes time…
    Decentralized
    Financial System
    Centralized
    Blockchain
    Applications
    DENIAL ANGER DEPRESSION
    BARGAINING ACCEPTANCE
    *The Kübler-Ross grief model serves as a good index of how incumbents and stakeholders alike will react as we progress through the parallel paths
    VALUE TO BE CAPTURED
    

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24. The Great F(l)attening: Consequences of Architecture
    But Are We Flattening the Stack?
    Identity
    Layer 1: Protocol
    Layer 2: Token / Asset
    Layer 3: Smart Contract
    Layer 4: Issuance Platform
    Layer 5: Exchange
    Governance
    Data
    Key Management
    Storage
    Conflict Resolution
    Blockchain Application Stack Additional Services and Logic
    

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25. The Great F(l)attening: Consequences of Architecture
    People Want Stuff that Works
    When the hype fades, consumers and businesses only care that stuff works.
    $8 B
    5 Years
    $5 B
    4 Years
    $4 B
    5 Years
    $5 B
    2 Years
    ISSUE DISTRIBUTE MANAGE EXCHANGE
    

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26. The Great F(l)attening: Consequences of Architecture
    

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27. The Great F(l)attening: Consequences of Architecture
    md@coinshares.co
    

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