B I T C O I N I S D E A D

L O N G L I V E

B L O C K C H A I N

V L A D I S L AV D R A M A L I E V

D I R E C T O R , T H E B I T H O P E F O U N D A T I O N

ABOUT ME

• In the “Bitcoin” sphere since 2013

• Founder and Director of the BitHope Foundation

– BitHope.org (Bitcoin Charity)

– CoinFixer.com (Crypto-Brokerage)

– CryptoCrowd.org (Talent network)

• Co-Founder of Sofia Crypto Meetup

• Co-Founder of Bulgarian Bitcoin AssociationSofia Crypto Meetup

Marketing & Community Manager

IS BITCOIN DEAD?

• Is it useful?

• Is there adoption?

• How is the network doing?

• What does the market think?

• Cost-effective — Eliminates intermediaries

• Efficient — Transactions are recorded once, available to all parties

• Safe and secure — Ledger is tamper-proof, transactions are immutable

• Low transactional fees — 1 USD (average fee)

• Deflationary — only 21m bitcoins

IS BITCOIN DEAD?

DIGITAL GOLD

IS BITCOIN DEAD?

Transactions

IS BITCOIN DEAD?

Network Security

IS BITCOIN DEAD?

Market Capitalization

IS BITCOIN DEAD?

1 BTC = ~2550 EUR

IS BITCOIN DEAD?

Front Page, The Wall Street Journal, June 6, 2017

IS BITCOIN DEAD?

IS BITCOIN DEAD?

More alive than ever.

LONG LIVE BLOCKCHAIN

Bitcoin ≠ Blockchain

• Bitcoin is the first “app” on a blockchain

• Blockchain provides the means to record and store bitcoin transactions

• Blockchain could have many other uses beyond bitcoin

Blockchain is shared, distributed ledger that

facilitates the process of recording transactions and

tracking assets in a business network.

(NOT maintained by a single entity)

LONG LIVE BLOCKCHAIN

LONG LIVE BLOCKCHAIN[ - B L O C KC H A I N - T R A C K A B L E A S S ET S - ]

• Tangible — A house, a car, cash, land

• Intangible — Patents, copyrights, identity, tokens, HC records, votes

Anything of value can be tracked and traded on a blockchain network,

reducing risk and cutting costs to all involved.

LONG LIVE BLOCKCHAIN[ - K E Y C H A R A C T E R I S T I C S - ]

• Consensus — All participants must agree on transaction validity

• Traceability — Records/assets have complete history of ownership

• Immutability — Once recorded, transactions cannot be changed

• Finality — A single, shared ledger accessible to all parties

• Remittance

• Car leasing

• Shared KYC services

• Contract management

• Governance/Decision-making

• Notary services

• Accounting systems

• Transportation/Energy platforms

• Tokens

• Smart Contracts

• Asset management

• Payments, clearing, settlement

• Identity management

• Regulatory compliance

• Contract management

• Risk free cash transfer

• Credit default swaps

• Loan services

• Digital assets platforms

• Internet of Things

LONG LIVE BLOCKCHAIN[ - A P P L I C AT I O N S - ]

LONG LIVE BLOCKCHAIN

Tokens & Crowdsales

LONG LIVE BLOCKCHAIN

TOKENS( - D E F I N I T I O N - )

• Digital asset on a blockchain (cryptocurrency)

• Can be traded peer-to-peer or at an exchange

• Not equity, more like “fuel”

• Multiple tokens can exist on a blockchain

TOKENS[ - C R E AT I O N A N D D I S T R I B U T I O N - ]

• Centralized: Internal distribution (pre-mine)

• Decentralized: Hybrid approach

• Distributed: Crowdsale (Initial Coin Offering)

TOKENS[ - B O O T S T R A P P R O B L E M - ]

CROWDSALE ON A BLOCKCHAIN[ - A D V A N TA G E S - ]

• Global userbase of millions of people (>20-25x larger market)

• Digital currency transfers coming in from all over the world (peer-to-peer)

• Millions of dollars transferred in seconds

• Coming from thousands of public cryptographically-secured accounts

• Enabling instant custody with no intermediaries (>1000x time-to-liquidity)

• Decentralizing the process of funding a new technology (esp. open-source projects)

• Creating a New Business Model

CROWDSALE ON A BLOCKCHAIN[ - N E W B U S I N E S S M O D E L - ]

Better-Than-Free

Token buyers are to investors what bloggers/tweeters are to journalists.

CROWDSALE ON A BLOCKCHAIN

CROWDSALE ON A BLOCKCHAIN

CROWDSALE ON A BLOCKCHAIN

Contribution campaign details:

Phase 1

• Duration: 3 days

• 1 ETH = 1000 AE tokens (1 ETH = 1100 AE tokens in first 24h)

Total Contributions: ~5.5m CHF

Phase 2 (54 days later)

• Duration: 3 weeks (10 days in reality)

• Week 1: 1 ETH = 750 AE tokens (1 ETH = 800 AE tokens in first 24h)

Week 2: 1 ETH = 700 AE tokens

Week 3: 1 ETH = 650 AE tokens

Total Contributions: ~23.6m CHF

More than 10.000 participants globally.

Tokens are a breakthrough in the design and development of open networks,

combining the societal benefits of open protocols with the

financial and architectural benefits of proprietary networks.

L O N G L I V E

B I T C O I NL O N G L I V E

B L O C K C H A I NL O N G L I V E

T O K E N S

V L A D I S L AV D R A M A L I E V

D I R E C T O R , T H E B I T H O P E F O U N D A T I O N

V L A D @ B I T H O P E . O R G

REFERENCES

Thoughts on Tokens by Balaji S. Srinivasan

Crypto Tokens: A Breakthrough in Open Network Design by Chris Dixon

Security, Transparency, Simplicity by Yanislav Malahov

ICOs and VCs by Albert Wenger

State of Blockchain Q4 2016 by CoinDesk

State of Blockchain Q1 2017 by CoinDesk

Blockchain for Dummies (IBM Limited Edition) by Manav Gupta