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Yes, there is an "I" in Blockchain
University of Dayton Law School—Program in Law and Technology
Sean Riggs & Matthew SchantzJune 8, 2018
(C) 2018 Frost Brown Todd LLC and Sean Riggs
This content is for general information only and is not legal advice as to any particular situation. Please engage a lawyer for that.
Who am I?
Sean Riggshttps://www.linkedin.com/in/seanriggs2/
Entrepreneur in the FinTech space Founder of Crypto-D.com Teach Cryptocurrency and Blockchain
technology to noobs
Experts to Follow in Blockchain
Tim Draper
https://www.linkedin.com/in/timothydraper/
Andreas M Antonopoulos
https://www.linkedin.com/in/amantonopoulos/
Rachel Wolfson
https://www.linkedin.com/in/rachwolf/
Charlie Lee
https://www.linkedin.com/in/chocobo/
Gavin Andersen
https://www.linkedin.com/in/gavin-andresen-6987971/
Section 1 Blockchain Fundamentals
So... What is Blockchain?
Blockchain is not Bitcoin!
What is Blockchain Technology?
“The blockchain is an incorruptible trusted digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”Don & Alex Tapscott, authors Blockchain Revolution (2016)
What is Blockchain?
A Matter of Trust
At its core blockchain solves the problem of trust.
Trust with or without central authority
Create value or issue assets Transfer value or ownership of
assets Record transfers of value or
ownership of assets Allow owners of assets to
manage rights of assets
TrustBreakdown
Blockchain Technology Fundamentals
Built on Open Source Still needs patents and IP protection
Decentralized Design No central point of failure
Built with Open Protocols No standardization yet
Built on a Standardized Platform No clear winner yet
Rapid Scalable Development Code is law, so changes need to be rapid and manageable
Asset (Cryptocurrency) Management and Control Smart Contracts
What is Cryptocurrency?
Wikipedia on Cryptocurrency:
A cryptocurrency (or crypto currency) is a controversial digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
The Father of Cryptocurrency
First blockchain tech, but not a definition of blockchain. Why is so Bitcoin important?
Intro and Proof of decentralization Paved the way for Blockchain technology Useful as a Store of Value
What is the future of Bitcoin? Constant updates and forking Is it the best technology as a digital currency? What is the future value of BTC? Will it remain the top market cap coin?
The Mother(s) of Cryptocurrency The need for more decentralization The Ethereum blockchain Why Ethereum is so important
Smart Contracts Dapp Simplicity Rapid Application Development
The problems with Ethereum Cannot handle all our transaction needs Built on too many technologies Permanently broken and hard to fix
The many other mothers EOS, NEO, Cardano, Stratus, Wanchain etc...
The Children of Cryptocurrency
The Wild West of Cryptocurrency
The Platform Blockchain War ERC20 Tokens and the future Battle to the top
The State of the Cryptocurrency Industry is:The Wild West
Blockchain Challenges
Moving Blockchain Technology Forward
Primary protocols need to be defined
Atomic swapping needs standardized
Key scalable platforms need developed and standardized
Regulation needs adopted by the industry
Rules around IP protection need implemented
Massive decentralized changes need to occur
Section 2 & 3Use Cases & Challenges
Use Cases
Use Case—Cryptocurrency
Public blockchain Pseudonymous identity Record creation/“issuance” of new units Record transfer of units Record destruction of units Some systems enforce anonymity
Use Case—Cryptocurrency
Use Case—Simple Supply Chain
Buyer sends purchase order Buyer gets confirmation, prepares shipping
arrangements Transport orders, bills of lading Receipts, proof of delivery, invoices, payment,
payment confirmations
Use Case—Complex Supply Chain
Multiple material and component suppliers to tier nsuppliers
Tier n suppliers sell to tier n-1 supplier, tier 1s to OEM Combine components into subsystems, subsystems
into systems, and systems into products Material quantities and serial numbers documented at
each processing and transfer step Initial fabricators accountable not to produce more
than materials for, components tracked in system Major defect issues instantly traceable
Use Case—Complex Supply Chain
Rolled Steel
Use Case—Public Records
Title-related transactions hashed and recorded on blockchains Deeds Mortgages Tax statements
Just enough public info Combination of public & private blockchains Extra encryption of some info on public blockchain
Use Case—Public Records
Real estate deed
MortgageTax statementor the like
Use Cases
Voting Transportation/logistics Charitable donations Wills Pharmaceutical supply chain Clinical trials Insurance claim processing Media ownership claims*
Blockchain Challenges
Industries in disruption Financial Technical Business Legal
Speed of public blockchains Privacy/anonymity
Blockchain Challenges
A decentralized world No one is responsible .. so there is no recourse for fraud, embezzlement,
or technical failures. Legal structures and regulations Forms of entities relying on blockchain – DAOs Securities law? Commodities?
Blockchain Challenges
Societal expectations are still in flux Liquidity of currency Who owns what? When?
Vocabulary is still being developed Participants Interests Technologies
The Future of Blockchain
What’s in motion What needs to happen next How it will be the next major shift in the world
Section 4The Future of Blockchain
The Future Of Blockchain
Major disruptions to industries are
coming.
Anything that can benefit from:•Transparent, Democratic, Decentralized, Efficient, Security improvements.
Decentralization Will be a Norm•Think Dapps, Companies, Websites, Data, Financials, etc...
Security Will be Greatly Increased
Content Ownership Will Change the
Internet
Super Computers Will Reface the
Industry
Artificial Intelligence Will Play a Major
RoleData Sharing Will Greatly Increase
Collection of Data Will Be Staggering
Identity Control Will Become
Standardized
Centralized Regulations Will
Change to Compete With Blockchain
Banking and Payments
Some say that the blockchain will do to banking what the internet did to media. It can be used to give access to financial services to billions of people around the world, including those in third world countries who don’t have access to traditional banking. Bitcoin allows anyone to send money across borders almost instantly and with relatively low fees.
Abra is one startup that is working on a bitcoin-based remittance service.
Utrust is a startup offering a payment processing solution for cryptocurrency.
Cyber Security
Although the blockchain ledger is public, the data is verified and encrypted using advanced cryptography. This way the data is less prone to being hacked or changed without authorization.
Applications built on the blockchain are still young and hacks are common. Hacken is one startup with a focus on bringing the White Hat community together to correct these issues.
Supply Chain Management
With blockchain technology, transactions can be documented in a permanent decentralized record, and monitored securely and transparently. This can greatly reduce time delays and human mistakes. It can also be used to monitor costs, labour, and even waste and emissions at every point of the supply chain. This has serious implications for understanding and controlling the real environmental impact of products. The distributed ledger can also be used to verify the authenticity or fair trade status of products by tracking them from their origin. Some blockchain companies working in this sector are Provenance, Fluent, SKUChain, and Blockverify.
Forecasting
The blockchain is set to change the entire approach to research, consulting, analysis and forecasting.
Online platforms like Augur and Gnosis are looking to create global decentralized prediction markets.
These technologies can be used to place and monitor bets on anything from sports to stocks to elections in a decentralized way.
Networking and the Internet of Things
Samsung and IBM are using blockchain technology for a new concept called ADEPT, which will create a decentralized network of IoT devices. Operating like a public ledger for a large number of devices, it would eliminate the need for a central location to handle communications between them. The devices would be able to communicate to each other directly to update software, manage bugs, and monitor energy usage.
IOTA is a platform designed to manage IoT devices and data on the Tangle network (A Blockchain variant)
Insurance
The global insurance market is based on trust management. The blockchain is a new way of managing trust and can be used to verify many types of data in insurance contracts, such as the insured person’s identity. So-called oracles can be used to integrate real-world data with blockchain smart contracts. This technology is very useful for any type of insurance that relies on real-world data, for example crop insurance.
Ontology is one blockchain project that is building tools that are useful in the insurance industry.
Private Transport and Ride Sharing
The blockchain can be used to create decentralized versions of peer-to-peer ridesharing apps, allowing both car owners and users to arrange terms and conditions in a secure way without third party providers. Startups working in this area include Arcade City and La’Zooz.
The use of built-in e-wallets can allow car owners to automatically pay for parking, highway tolls, and electricity top-ups for their vehicle. UBS, ZF and Innogy are some of the companies developing blockchain based e-wallets.
Cloud Computing & Storage
Data on a centralized server is inherently vulnerable to hacking, data loss, or human error. Using blockchain technology allows cloud storage to be more secure and robust against attacks.
DigiByte is one example of a cloud storage network using the technology.
Golem is a project designed to make the first fully decentralized super computer.
Charity
Common complaints in the charity space include inefficiency and corruption, which prevent money from reaching those that are meant to have it. Using blockchain technology to track donations can let you be sure your money is going to end up in the right hands.
Bitcoin-based charities like the BitGiveFoundation use blockchain’s secure and transparent distributed ledger to let donors see that the intended party has received the funds.
Voting
Probably one of the most important areas of society that the blockchain will disrupt is voting. The 2016 US election is not the first time certain parties were accused of rigging election results. Blockchain technology can be used for voter registration and identity verification, and electronic vote counting to ensure that only legitimate votes are counted, and no votes are changed or removed. Creating an immutable, publicly-viewable ledger of recorded votes would be a massive step toward making elections more fair and democratic.
Democracy Earth and Follow My Vote are two startups aiming to disrupt democracy itself through creating blockchain-based online voting systems for governments.
Government
Government systems are often slow, opaque, and prone to corruption. Implementing blockchain-based systems can significantly reduce bureaucracy and increase security, efficiency, and transparency of government operations.
Dubai, for example, is aiming to put all its government documents on the blockchain by 2020.
Public Benefits
The public benefits system is another sector that suffers from slowness and bureaucracy. Blockchain technology can help assess, verify, and distribute welfare or unemployment benefits in a much more streamlined and secure way.
GovCoin is a UK-based company that is helping the government to distribute public benefits using blockchain technology.
Circles is a project working on developing a blockchain-based technology for implementing a universal basic income.
Healthcare
Another industry that relies on many legacy systems and is ripe for disruption is healthcare. One of the challenges hospitals face is the lack of a secure platform to store and share data, and they are often victims of hacking because of outdated infrastructure. Blockchain technology can allow hospitals to safely store data like medical records and share it with authorized professionals or patients. This can improve data security and can even help with accuracy and speed of diagnosis.
Ontology and Medichain are two companies that are working on disrupting the current healthcare data space.
Energy Management
Energy management has been a highly centralized industry for a long time. Energy producers and users cannot buy it directly from each other and have to go through the public grid or a trusted private intermediary.
WePower and PowerLedger are startups that allow customers to buy and sell energy from each other in a peer-to-peer network.
Identity Management
Several startups are coming up with ways for people to manage their own identity and personal data. This gives the user the ability to manage what data is shared with a given provider and what access the provider has to their data.
TheKEY and Civic are two startups creating blockchain-based solutions that allow just this.
Retail
When you shop, your trust of the retail system is tied to the trust of the store or marketplace. Decentralized blockchain-based retail utilities work differently: they connect buyers and sellers without a middleman and associated fees. In these cases, trust comes from smart contract systems, the security of exchanges, and built-in reputation management systems.
One startup disrupting the retail space is OpenBazaar.
Real Estate
Some of the issues in buying and selling real estate are bureaucracy, lack of transparency, fraud, and mistakes in public records. Using blockchain technology can speed up transactions by reducing the need for paper-based record keeping. It can also help with tracking, verifying ownership, ensuring accuracy of documents, and transferring property deeds.
Ubitquity, is a blockchain-secured platform for real estate record-keeping that is an alternative for legacy paper based systems.
Blockchain for You!
Your company! Yes, your industry is likely being affected by
blockchain in some way. Take the time to study what new technologies are
developing in your sector by going to: https://coincheckup.com/ and looking at the category related to your business.
Is Here to Stay
Contributors and Credit
Big thank you to: Futurethinkers.org and Euvie and Mike Simply Explained and Savjee Siraj Ravel – AI Expert, Technologist,
and Blockchain Master Coder Great content on blockchain:
Free Oxford Blockchain course (6 weeks with a certificate of completion)
Blockchain Revolution by Don and Alex Tapscott
The Business Blockchain by William Mougayar
Thank You!
