BLOCKCHAIN REVOLUTION: Understanding the 2Nd Generation of the Internet and the New Economy

BLOCKCHAIN REVOLUTION: Understanding the 2nd Generation of The Internet and the New Economy

Alex Tapscott TWITTER: @alextapscott

JAVITZ CENTRE NEW YORK, NEW YORK LENDIT NY 2017

Animating the Autonomous Distributed Energy Technology in Our Machine Learning Virtual Reality Physical World Vehicles Sources Bodies

BLOCKCHAIN

Web Photos Sites

Word INFORMATION PDFs Docs

PPT Voice Slides

4 The Internet of Information ▶ The Internet of Value

Social Reputation Capital Intellectual Money property

Loyalty Attestations Identity points

ASSETS Contracts Deeds

Carbon credits Energy ASSETS Coupons

Other Financial Bonds Assets Premiums Music Art Votes Stocks

Other Futures Receivables

Swaps IOUs

Visual Film Art

5 The Middleman

6 BLOCKCHAIN: The Second Era of the Internet

7 Just Another Block in the Chain

1 2 3 4 5

Block 53 Block50.dat Block51.dat Previous block: Block52.dat 00000zzxvzx5 Timestamp Proof of work: 00000090b41bx 04.19.2016.09.14.53 Block53.dat Transaction: 94lxcv14

Community Reference to Distributed ledger New blocks added Permanent validation previous blocks time-stamp

8 ETHEREUM: A NEW TRANSACTION PLATFORM FOR THE INTERNET

9 ETHEREUM: A NEW TRANSACTION PLATFORM FOR THE INTERNET

10 HYPERLEDGER: THE FASTEST-GROWING LINUX PROJECT EVER

11 HYPERLEDGER: THE FASTEST-GROWING LINUX PROJECT EVER

12 The 2nd Generation of the Internet for Business

13 Re-Architecting the Corporation

THE THEORY OF THE FIRM

Transaction costs: 1. Search 2. Coordinating 3. Contracting 4. Establishing Trust Ronald Coase (1910–2013)

14 The Economics of Collaboration

Self- Organization Distributed Value Creation

Business Webs VALUE CREATION

Extended Enterprise

Industrial Age Traditional Corporation Hierarchy

Physical Financial CRITICAL RESOURCES Networked Intelligence

15 The Big Seven: Open Networked Business Models for the Enterprise

1. Blockchain 2. The Rights 3. The Re- Cooperatives Creators Intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Data Supply Chain Things

16 CREATING A TRUE SHARING ECONOMY

17 Suber

18 The Big Seven: Open Networked Business Models For the Enterprise

1. The Peer 2. The Rights 3. The Re- Producers Creators intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Data Supply Chain Things

19 The Music Industry

20 The Music Industry Today: A Model of Inefficiency

2 Record Labels 1

15 3 Organizations $1 Performance Rights 14 Streaming 5 Services 11 10 9 13 Promoters Financial Intermediaries 4 Industry 12 Associations 8 Technology 6 Agents Companies 7

Artist $0.0001-$0.15

21 22 The Golden Nine: New Tools to Fix a Broken Industry

1. Value Templates $1 2. Inclusive Royalties 3. Transparent Ledgers 4. Micromonetizing & Micrometering 5. Rich Databases 6. Usage Data Analytics 7. Digital Rights Management 8. Auction/Dynamic 9. Pricing Reputation System $0.98-$1.00 Artist

23 The Big Seven: Open Networked Business Models For the Enterprise

1. The Peer 2. The Rights 3. The Re- Producers Creators intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Data Supply Chain Things

24 ENDING THE REMITTANCE RIP-OFF

25 A REINTERMEDIATOR: PAYCASE, Targeting the $60 Billion/year remittance market

26 The Big Seven: Open Networked Business Models For the Enterprise

1. Blockchain 2. The Rights 3. The Re- Cooperatives Creators intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Data Supply Chain Things

27 Everledger: Tracing Ownership and Certifying Provenance of Diamonds

28 The blockchain is the new supply chain

29 The Big Seven: Open Networked Business Models For the Enterprise

1. Blockchain 2. The Rights 3. The Re- Cooperatives Creators intermediators

4. The 5. Animating the 6. The Platform Blockchain Internet of 7. Bigger, Better Builders Supply Chain Things Data

30 “The Internet of Everything Needs a Ledger of Everything”

31 Old: Industrial Age Power Generation

32 NEW: Distributed micro-grids powered by blockchain

33 The Big Seven: Open Networked Business Models For the Enterprise

1. Blockchain 2. The Rights 3. The Re- Cooperatives Creators intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Supply Chain Things Data

34 Rethinking Financial Services

35 The Golden Eight: Blockchain Transformations for the Financial Services Industry

8. Account for & Audit Value 1. Authenticate & Attest to Value 7. Insure Value & Manage Risk

6. Fund & Invest 2. Transfer Value

3. Store Value 5. Exchange Value

4. Lend Value

36 Fund and Invest OLD: Initial Public Offerings and Venture Capital

37 Fund and Invest NEW: Initial Token Offerings

38 The Big Seven: Open Networked Business Models For the Enterprise

1. Blockchain 2. The Rights 3. The Re- Cooperatives Creators intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Data Supply Chain Things

39 DATA FRACKING

40 dataminr.com

41 The Virtual You

42 43 44 PROSUMERS: Turning Customers into Producers

45 The Big Seven: Open Networked Business Models For the Enterprise

1. Blockchain 2. The Rights 3. The Re- Cooperatives Creators intermediators

4. The 5. Animating the 6. The Platform 7. Bigger, Better Blockchain Internet of Builders Supply Chain Things Data

46 A CRISIS OF LEGITIMACY

47 1. TRANSFORMING CENTRAL BANKING

After Britain’s referendum vote to leave the European Union, Brexit’s loudest advocates scurried from public view and the political establishment descended into a caustic battle for control. Emerging from the melee was Theresa May, who has a reputation for consistency, if little else. But Britain doesn’t need a caretaker in these uncertain times. It needs bold, innovative leadership.

One person has quietly stepped up: Canadian Mark Carney, Governor of the Bank of England. Mr. Carney acted quickly to stem the Brexit panic. Now, he can and should do more.

The list of challenges is daunting: prevent a recession from becoming a depression, preserve London’s pre-eminence as a financial capital, jump-start entrepreneurship and make the British economy work for everyone, not just a few. In normal circumstances, a central bank would take on one or two of these. 48 BLOCKCHAIN AND CENTRAL BANKING

✓ Cost and Efficiency ✓ Inclusion and Performance ✓ Transparency and Risk Reduction

49 2. MAKING E-VOTING A REALITY

50 2. MAKING E-VOTING A REALITY

51 Could Government Really Be an Early Adopter?

52 SHOWSTOPPERS: Why Blockchain Could Fail

1. The Technology is not ready for prime time 2. The Energy Consumed is Unsustainable 3. Government will Stifle or Twist It 4. Powerful Incumbents of the Old Paradigm will Usurp It 5. The Incentives are Inadequate for Distributed Mass Collaboration 6. Blockchain Is a Job Killer 7. Governing the Protocols is Like Herding Cats 8. Distributed Autonomous Agents Will Form “Skynet” 9. Big Brother is (Still) Watching You 10.Criminals Will Use it 53 How can a Digital Business Leader get started?

1. Education

2. Launch a pilot - think big, but start small

3. Hire or transition key blockchain IT talent to get going

4. Start now!

54 Second Half of the Chessboard

55 BLOCKCHAIN REVOLUTION: Understanding the 2nd Generation of the Internet and the New Economy

Alex Tapscott TWITTER: @alextapscott

JAVITZ CENTRE NEW YORK, NEW YORK LENDIT NY 2017