William Mougayar Financial Securities Operations Conference Presentation

What Blockchain Means for Your Business

William Mougayar

Author, The Business Blockchain

General Partner, Virtual Capital Ventures

SecOps North America 2016

vcapv.com © William Mougayar, Virtual Capital Ventures

The Blockchain Novelty

Cryptography

Science

BLOCKCHAIN

Software

Engineering

Cryptography

Science

Game

Theory


The Blockchain Implications

Cryptography

Science

BLOCKCHAIN

Technical

LegalBusiness

5© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures

How to view the Blockchain

Source: The Business Blockchain (Wiley, 2016) © William Mougayar


Many Facets to the Blockchain① Cryptocurrency

② Computing Infrastructure

③ Transaction Platform

④ Decentralized Database

⑤ Distributed Accounting Ledger

⑥ Development Platform

⑦ Open Source Software

⑧ Financial Services Marketplace

⑨ Peer-to-Peer Network

⑩ Trust Services Layer

Blockchains, like the Web, need the Internet

I N T E R N E T

WORLD WIDE WEB BLOCKCHAINS



Types of Blockchain Applications

Four Types of Blockchain Applications

Source: The Business Blockchain

(Wiley, 2016) © William Mougayar

In the mid-2000’s FinTech Attacked the Banks,

and it was called “Unbundling Banking”U.S.

Europe

In startup fashion,

most attacks aren’t

head-on, start

small & look

harmless at first

sights, therefore

are ignored

So, the banks

didn’t feel FinTech

initially, because it

crept up

Graphs Source: CB Insights

Innovation Potential for Blockchain

UNREGULATED

ENVIRONMENTSREGULATED

ENVIRONMENTS


Blockchain and Regulation

① Risk is regulatory confusion

② New regulations needed, e.g. record keeping

③ Where do you insert the blockchain?

④ Difference between blockchain and cryptographic ledgers

⑤ Risk is centralization


3 Pillars of Decentralization

TRUST

INFORMATIONWEALTH


Decentralization – What does it look like?① Speed in settlements

② No intermediary delays

③ Upfront identification and reputation

④ Flat structure with no overhead

⑤ Permission-less user access

⑥ Trust built inside the network

⑦ Resiliency against attacks

⑧ No censorship

⑨ No central point of failure

⑩ Governance decisions by consensus

⑪ Peer-to-peer communicationsSource: The Business Blockchain (Wiley, 2016) © William Mougayar

NEW COMPANIES

ANDBEHAVIORS

INSIDEEXISTING

COMPANIES

THREATENEDOR

TRANSFORMED

JUSTTECHNOLOGY

How New Technology Permeates


13 Generic Ideas for Implementing Blockchains1. Rethinking intermediary functions

2. Bundling / Unbundling

3. New flows of value

4. Decentralized governance

5. New legal frameworks

6. Creating/Issuing digital assets

7. Embedding trust rules inside transactions

8. Implementing digital signatures & what they enable

9. Proofs of records / transactions / process / storage etc.

10. Verifying authenticities

11. Embedding digital identities

12. Escrow / custodial services

13. Enabling smart things to transact autonomously


Some Leading Examples

• eTRS (ConsenSys, Microsoft, IPFS)• Clearmatics, DCN for OTC derivatives• Cambridge Blockchain catastrophe bond

counterparty validation


Going Forward Choices

Improve the current systems

OR

Innovate from scratch


William Mougayar

Investor . Entrepreneur

Blogger . Board Member

General PartnerVirtual Capital Ventures

[email protected]

1-416-648-7010

http://startupmanagement.org/blog

http://vcapv.com

@wmougayar

thank you

mailto:[email protected]

http://startupmanagement.org/blog

http://vcapv.com