BITCOIN & BLOCKCHAINS

Presented By: Jaiveer Singh

Innovation Lead, Access SG

(Singapore Cryptocurrency and Blockchain Industry Association)

www.access-sg.org www.JaiveerSingh.com

ACCESS SG – BLOCKCHAIN INDUSTRY ASSOCIATION

ACCESS envisions Singapore as a premier global hub for businesses

driven by digital currencies and blockchain technologies

www.access-sg.org

Massive Failure of Existing Checks & Balances

2001: Enron was cited as the biggest audit failure2002: Second largest long distance phone company

in the USA- accounting scandal of more than $7b

2011: Former executives at Olympus admitted to

an accounting fraud worth $1.7 billion lasting

more than a decade. Toshiba admitted that it had overstated its

earnings by nearly $2 billion over seven years

ACCOUNTING & AUDIT FAILURES

• Ernst & Young Pays $10 Million To Settle Lehman Brothers

Audit Failure Lawsuit

• Goldman Sachs to pay $5bn for its role in the 2008 financial

crisis

• Auditor PwC settles $5.5 billion lawsuit as Taylor, Bean

mortgage fraud case enters eighth year

• Panama agrees to adopt global tax reporting standards

• Deutsche Bank is fined $14 Billion (2016).

ACCOUNTING, AUDITING AND COMPLIANCE ARE A MASSIVE COST FOR BUSINESS GLOBALLY. (FINES ALONE HAVE COST BANKING

$200 BILLION SINCE 2009.)

SOX- SARBANES-OXLEY COMPLIANCE, BASEL, CFT, AML, FATCA , CRS,

IFRS….

Approx. $150 b Global Audit Market Share

• Deloitte & Touche

• Ernst & Young

• KPMG

• PWC

(Pricewaterhousecoopers)

GLOBAL AUDIT MARKET AND THE BIG FOUR

PricewaterhouseCoopers (PwC) With $35.4 billion revenues in 2015, PwC is now the

largest accounting firm in terms of revenue

Intro to Bitcoins - Cryptocurrency

DIGITAL PEER TO PEER CURRENCY - BITCOIN

a type of digital currency in which encryption techniques are used to regulate the generation of

units of currency and verify the transfer of funds, operating independently of a central bank.

BITCOIN – KEY FACTS

• No one single entity controls this currency.

• There’s a finite number of bitcoins.

• Bitcoins have no inherent or set value.

• You can see all transactions.

• You can mine bitcoins.

• You cannot reverse a transaction or be forced to pay.

• You can send money with little to no fees.

• Bitcoins are held in digital wallets.

• Losing a wallet means those bitcoins are lost forever.

• You can really buy things with bitcoins.

Satoshi Nakamoto an unknown person or group of person introduced Bitcoins in

2009 after global financial crisis of 2008.

BITCOIN – UNITS & PRICE CHART

1 Bitcoin equals

638.70 US Dollar

The satoshi is currently the smallest unit of the bitcoin currency

recorded on the block chain. It is a one hundred millionth of a single

bitcoin (0.00000001 BTC) 10^-8

•Bitcoin – BTC – (1 full Bitcoin)

•MilliBitcoin – mBTC – (1 thousandth of a BTC)

•MicroBitcoin – uBTC – (1 millionth of a BTC)

ALTERNATIVE CRYPTOCURRENCIES

KEY BUILDING BLOCKS OF BITCOIN

• Distributed Public Ledger

• Public Key – your account number

• Private Key – signing, control

KEEPING THE LEDGER IN ORDER

• Block of Transactions

• Hash SHA-256 (cryptographic hash functions)

• Proof of Work

P2P SECURE MESSAGING SYSTEM

DOWNFALLS OF BITCOIN MARKET PLAYERS

• Mt. Gox was a bitcoin exchange based in Tokyo, Japan. It was launched in July 2010, and by

2013 was handling 70% of all bitcoin transactions. It filed bankruptcy in 2014

• New evidence presented in April 2015 by WizSec led them to conclude that "most or all of the

missing bitcoins were stolen straight out of the MtGox hot wallet over time, beginning in late

2011 worth $450m at that time.

• Silk Road was an online black market and the first modern darknet market, best known as a

platform for selling illegal drugs. Founder Ross William Ulbricht was convicted of seven

charges related to Silk Road in U.S. Federal Court in Manhattan and was sentenced to life in

prison without possibility of parole.

Blockchain – The Distributed Ledger

DISTRIBUTED LEDGER – BLOCKCHAIN INTRO

BENEFITS OF BLOCKCHAIN TECHNOLOGY

1. Disintermediation & trustless exchange

2. Empowered users

3. High quality data

4. Durability, reliability, and longevity

5. Process integrity

6. Transparency and immutability

7. Ecosystem simplification

8. Faster transactions

9. Lower transaction costs

BLOCKCHAIN – DECENTRALIZED & DISTRIBUTED LEDGER

USAGE BEYOND CRYPTOCURRENCY/ DIGITAL MONEY

• Public Blockchain-based distributed computing platform

Ethereum is a decentralized platform that runs smart contracts:

applications that run exactly as programmed without any possibility of

downtime, censorship, fraud or third party interference

Everledger Plans Blockchain Database to Combat Art Fraud

Ripple is the creator and a developer of the Ripple payment protocol and

exchange network. Global payments settlement platform.

BLOCKCHAIN SOLUTIONS

Nasdaq Opens Blockchain Services to Global

Exchange Partners

Slock.it disrupts the billions dollar disruptors by enabling

anyone to rent, sell or share their property without

middleman

An Open-Source, Decentralized, Peer-to-Peer Prediction

Market Platform.

Opportunities for Blockchain Deployment

• Permissioned Distributed Ledger across ASEAN countries

• Moving from Double Entry to Triple Entry Accounting

QUESTIONS TO PONDER UPON

THANK YOU.

Presented By: Jaiveer Singh

Innovation Lead, Access SG

(Singapore Cryptocurrency and Blockchain Industry Association)

www.access-sg.org Email: LetsTalk@JaiveerSingh.com