discover blockchain - wa state thought leader discussion

Discover Blockchain

“WHAT IT IS” AND HOW EVERYTHING COULD BE DIFFERENT

Mark Mueller-Eberstein

Rutgers UniversityThe Innovation Economy Institute

CEO of Adgetec Corporation

@MarkMEberstein

WeChat: MarkMEberstein

“Every inefficiency in a system will

be removed (by technology)

sooner or later.”


Mark Mueller-Eberstein & Adgetec Corporation


What differentiates

Winners from Losers?

Low IT Capability Maturity HIGH IT Capability Maturity



“Top Companies in 2007”



“….. And where they are in 2016”


The trick is being open to changing your mind, and

more importantly, knowing when to do so.

George Bernard Shaw

“Those who

cannot change

their minds cannot

change anything."

©Mark Mueller-Eberstein & Adgetec Corporation

Of the 7 billion people in the world…

7

6

5

4

3

2

1

0

Cell phonesToothbrushes

Un

its

in b

illio

ns


But only 20% (1.4B) have currently access to the banking system


At least $1.7 trillion in “inefficiencies”

up for grabs…

The Economist, 2014

And that is only the banking

system…

Think any kind of transaction and

related services…


… for example….

Records of estates

Records of shares

Any financial transaction

Voting

Domain control (DNS)

Central Trust (“Escrow”) for any kind of deals

Messaging (“signed and unchangeable”)

IP management

…


The more you learn, the more opportunity you will

see.

Nobody knew in early 1990s what the Internet was

or would lead to.

Milton Friedman: “Eventually, there will be a digital

value system beyond the nation state.”


“Innovation requires

learning through mistakes”

“Technology decisions are driven by

business requirements”

How leading business prioritize:


Blockchain

Blockchain is like the Internet

(it changed everything)

The implications for traditional

financial services are massive

The end of banks?

The end of central banks?

Big implications for regulators.


Blockchain Technology

Blockchains: Public / Open “Private”

Some

Blockchains:

SomeCrypto

Currencies:Mark Mueller-

Eberstein &

Adgetec

Corporation

Blockchain – in 2 minutes

https://m.youtube.com/watch?v=r43LhSUUGTQ

The “technical stuff”…

Networking….

Old school

computing and

business

Changed computing and

business over the last 20 years


Peer-to-Peer (P2P) Networking is everywhere

P2P(structured & Unstructured)

File Sharing

•Napster

•BitTorrent

Media

•Spotify

•Popcorntime

•PPLive (TV) Marketplaces

•BitCoin

•“Sharing Economy”

Cryptography

Storage & Search

•Minerva Project

Communication

•Skype

•Google Talk

•I M

Mobile

•WeChat

•WhatsApp

•Line

Messaging as Payment

E-Commerce

•E-Bay

•AirBnB

•Uber

Defense

•DARPA

High Performance Computing

•Grid Computing

•HIVE

•SETI@home

Analytics techniques exchange

•Chinook


Many commercial or government

services are basically “databases”

that are centrally owned and

managed.


Transactions are recorded in a “Ledger”


Central Control

= Central Point of Failure


Blockchain technology allows a distributed

ledger vs. a centrally managed ledger.

All transactions within a block are recorded and

visible.

And can never be changed (“Immutable”).

Blockchain without a “token” is just a database


Benefits of Blockchain secured

distributed leger vs. central ledger

Information can be put on block chain

and can never be changed

Worldwide ledger: IP, land titles, art,...

Full transparency for every transaction

"Record every information forever"


Bitcoin vs. Blockchain

Bitcoin is (currently the best know) usage of blockchain technology

One of many digital currencies using blockchain technology

Many more uses for blockchain technology other than “currency”

Why digital currency is used?

No need to use exchange (e.g. banks) for people who know/use Bitcoin

Direct exchange between individuals is possible


Bitcoin basics

Insider: "It feels like when we first developed the Internet"

It is a way to transfer value in the Internet

Bitcoin can not be copied. First "scarce" digital asset.

Bitcoin protocol (blockchain) is final piece of Internet puzzle

Very early and experimental stage

As longer as Bitcoin exists, the stronger it gets

60% of all Bitcoin mining done in China (up from 40% 8 months ago)

New block created every ten minutes


How “real” is Bitcoin?

... Most virtual believe might be "love"

Virtual goods are as real as people believe in them...

There is very little “real money”. Most are “0s””1s”

on some bank’s database


How “real” is blockchain?

Goldman-Sachs invest $500+ Million

Microsoft declares “blockchain” as one of

the key “must win” workloads for their Azure

platform and business (and announced

collaboration with many US banks)

Some governments invest into developing

their own “local” blockchains


is scary

Change

have

emotions

People

Is constant

Uncertainty

Endings Exploration New Beginnings

Reconciliation Reorientation Recommitment

Denial

Anxiety

Shock

Fear

Anger

Frustration

ConfusionStress

Creativity

Approach-Avoidance

Skepticism

Acceptance

Impatience

Hope

Energy

Enthusiasm

Productivity

Morale

Theory of Transition

Schlossberg; 1981 & 1995


Regulations and restrictions?

From an economist perspective: Every restriction

(and forced inefficiency) comes with a cost.

Lets be clear who carries the cost and if that is in

the best interest of an economy and society.


Security? Distributed ledgers and Blockchain technology

create unparalleled opportunities, paradigm shifts

and risk.

(Some) Risks areas:

technology, business, society and government

Cyber-currency and cyber-technology go hand-in-

hand as the internet evolves.

Topics that will need to be covered include:

Basics of Blockchain technology and its application in business and government scenarios

Security and trust models in Blockchain(s) and the applications using blockchains

Community and government approaches

Learning from spectacular security breaches (e.g. DAO (Ethereum); Mt. Gox (Bitcoin))

Security through resilience and agility


Blockchains are here. Our Opportunity!

1.Change will be fundamental on

business, technology, processes,

structures and people.

2.Technology leaders are positioned to

drive and realize the vision and image

of the future.


Question to ponder….

Where in our current and future business can distributed databases/ledgers provide a competitive advantage?

How would we position, defend and communicate such an advantage?

Build our own blockchain or leverage somebody else’s?

Are we engaging with the most innovative players in the ecosystem?

How can we improve agility, innovation potential, national and international partnerships?

How do we understand, assess and manage risks?

How do we think about blockchains issued/controlled by “others”—communities, commercial organizations, financial institutions, governments?

How does blockchain technology and entering the (money) transfer business impact relationships to customers, banking (partners), governments, regulatory institutions?


THANK YOU!

[email protected]

Twitter: MarkMEberstein

US +1 855.423.4383


The Innovation Economy Research Institute

CEO of Adgetec Corporation

Bestselling Author

WeChat: MarkMEberstein
