bitcoin sharing session @ stanford ceo
DESCRIPTION
Why Cryptocurrency will chang everything. Session at Stanford CEO session by Tom Ding, founder @KoinifyTRANSCRIPT
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Why Bitcoin will change everything Tom Ding, Founder
@Koinify
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Me
Religion: Cryptocurrency
Founder @KoinifySr. Manager @eBay U.S. and ChinaMarketing @ Alibaba, @Trilogy
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https://www.youtube.com/watch?v=Vd19SboRhVY
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Part I - Bitcoin is Dollar 2.0
Bitcoin is a Digital Cash, without central authority for issuance nor exchange
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Blockchain Explained
Transaction amount
Input & Output address
A unique private key controls the fund
Block 101
Block 102
Block 103
Blockchain
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Public key, Private Key & Address
2^160 address space for Bitcoin
Private Key
Public Key
(SHA256)
(RIPEMD160) Bitcoin address (160 bit)
Shark attack: 2^24PowerBall: 2^28
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Banking system: Centralized Ledger
Bank of America
Private Server
Hai $500
$600Yu
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Decentralized Ledger
Hai $500
$600Yu
Hai $500
$600Yu
Hai $500
$600Yu
Computer NComputer 2 Computer 1
…..
Synchronize Synchronize
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Double spending problem
Hai $500
$1000Amazon
Hai $500$600Yu
Hai $500
$600Yu
Computer N
Computer 2 Computer 1
…..
-$15 => $485
-$20=> $480
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Solution: Proof of Work
Hai $500
$600Yu
Hai $500$600Yu
Hai $500
$600Yu
Computer 1
…..
-$20 => $480
Computer 2 Computer N
…Hashing
…
…Hashing
…
…Hashing
…
Found correct solve
Broadcast
Adopt new chain
1
2
Adopt longest chain Adopt longest chain
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Quiz
❖ Explain what is a bitcoin wallet?
❖ Guess how large is the total bitcoin blockchain since genesis block in 2009?
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But where does Money and Bitcoins come from?
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Money = Debt = Economy Lubrication
❖ Barter
❖ Commodity money
❖ Precious metal / Gold
❖ Fiat money (11AD)
❖ 1944 - 1971: Bretton Woods agreement
❖ 1971: Nixon shock
❖ Bitcoin (2009)
Transaction cost
Standardization
Divisible
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Bernanke: Let there be money
Treasury Bonds
USD
1
2+1,000,000 T-
Bills- 1,000,000 USD
Lend
3
+1,000,000 USD
+1,000,000 USD
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Sad story of Zimbabwe
• First Dollar: ZWD (1980)
1.47 USD: 1 ZWD
…….
• Third Dollar
1 ZWR = 10 billion ZWN
• Fourth dollar: We’re really screwed!
A 100-trillion-dollar bill, it turns out, is worth about $5.
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Worldwide inflation
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Satoshi: Let there be coins
Transaction 1
Transaction 1
Transaction N
25 reward
Block 100
Transaction 1
Transaction 1
Transaction N
Block 101
25 reward
+25 Bitcoins!
+25 Bitcoins!
Max 21,000,000
…
Bitcoin Miner/Processor
Bitcoin Miner/Processor
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Recap
- Money = debt
- Dollar is a product (produced by government)
- Cryptocurrency is Dollar 2.0: Solving for Principal-Agent risk
Bitcoin / Cryptocurrency
Predefined supply algorithm
Vote by money
Central Bank
- Create money
- Set interest rate & reserve requirement
- NO opt-out
VS
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Quiz
❖ Assuming transaction fee is zero, Is Bitcoin transaction free? Why?
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Part II - Permission less innovation & Social
contract
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Innovation accelerates with decentralization
1430s:
Press
1980s:
Personal
Compute
r
1984: 3D
Printing -
manufact
uring
1989:
Web
2000s:
Blog/Twit
ter
2009 :
Bitcoin –
finance
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How can cryptocurrency help?
❖ 5th protocol: Value exchange layer (e.g. Uber)
❖ Decentralized financial innovations - e.g. pool insurance
❖ MaidSafe: Decentralizing Internet
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Story in Uganda
❖ https://www.youtube.com/watch?v=BrRXP1tp6Kw
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- Thomas Hobbes <Social Contract>
“… that a man be willing, when others are so too, … , to lay down
this right to all things; and be contented with so much liberty
against other men as he would allow other men against himself.”
Constitution
Laws
Sovereign
Corp
Business Contracts
Non-profit LLP
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Cryptocurrency enabling new org structure
❖ Why: Principal-Agent-Customer
❖ Distributed software foundations
❖ Charity / Investment Vehicle
❖ Autonomous public service
❖ Crowd Jury
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Yes, it’s all happening
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PayPal for Bitcoin: Coinbase
❖ One of the most popular wallet/ exchange
❖ Serving 31,000+ merchants
❖ $30m+ funding form A16Z, Union square, YCombinator, etc.
❖ Daily volume $20m +++
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Derivative: ICBIT
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Ethereum❖ Turing complete scripting language
❖ Contract, storage and fuel (Ether)
❖ Financial contracts, Decentralized Autonomous Organization, Voting, etc.Vitalik
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Decentralizing Internet: MaidSafe
http://maidsafe.net
AWS DistributedRaised $6mil in 5hours
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Most exciting crypto startup ever
❖ Traditional: Angel - VC - IPO
❖ Koinify: IPO on Day 1
❖ Coin Products:
❖ Game, Apps
❖ Financial assets
❖ Celebrity / Personal Coins
Sponsored Ads
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What’s Success for Koinify
❖ US Annual Tax income: $3.3 trillion
❖ Crowdfund HyperLoop - $7 billion
❖ Government projects modularized - medical research, space projects, even university
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Life: powered by blockchain
Birth StartupFinance for College IPO WillLawsuit
Powered by Blockchain
Bye
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Recap – 3 layers of innovation
Money as a service: Bitcoin & Altcoins
Permission-less innovation
Social contracts: Ethereum
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–Steve Jobs
“Life can be much broader once you discover …Everything around you that you call life was made up by people that were no smarter than you and you can change it, …”
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Quiz / Open discussion
❖ Most exciting crypto use case for you
❖ Implications for a world with abundant currencies
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Questions?
Email: [email protected]: @tom_ding
WeChat: tomding1987
Koinify is hiring! www.koinify.com
CTO, Founding Engineer#full-stack #distributed#cryptography #security
We Pay cash, equity & Koins!
Sponsored Ads
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Thought Experiment 2If X never invented, given X and Y, would Y be a no brainer?
Appendix: Evaluating Disruptive Technology
Often disguised as cheaper but inferior, or better but too expensive
Thought Experiment 1Assuming 100% adoption,, would it be a better world?
Thought Experiment 3: What if it becomes 100x cheaper, AND 100x faster?
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Appendix: Bitcoin price
❖ Miners selling bitcoin
❖ Merchant cash out
❖ Tax
❖ Stronger regulation / Decreased liquidity
❖ User adoption growth
❖ Hoarding
❖ Fiat currency inflation / Economy conditions worsen
❖ Cross-border remittance
❖ Institutional involvement
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Appendix: Further Resources
❖ Bitcoin-Dev Mailing List
❖ JayWSalon BitCoin SIG
❖ Sillicon Valley Bitcoin Meetup : Every Tue @ Plug n Play
❖ Stanford Bitcoin Meetup (Palo Alto)
❖ Ethereum Meetup
❖ SV Counterparty Meetup (In progress)