What is the blockchain? What does it enable? What are the opportunities? Why does it matter?

1. vcapv.com © William Mougayar, Virtual Capital Ventures
William Mougayar
​ General Partner
​ Virtual Capital Ventures
Blockchains and Bitcoin:
WhyYou Should Care
Feb 10 2016

2. vcapv.com © William Mougayar, Virtual Capital Ventures
Cryptography
Science
BLOCKCHAIN
Software
Engineering
Cryptography
Science
Game
Theory
​ The Blockchain Novelty

3. vcapv.com © William Mougayar, Virtual Capital Ventures
The Blockchain is a new way to
implement trusted transactions
without trusted intermediaries.

4. 4
vcapv.com © William Mougayar, Virtual Capital Ventures
Self
Publishing
E-
Commerce
Social
Interactions
IT Supremacy Internet Years
​ Defining Technology Eras
Personal
Communications
Blockchain Promise
1994 2015
Data
computation
Database
applications
Transaction
processing
Business
Intelligence
Global
operations
Enabling
Decentralization
of
Trust
Value Flow
without
Intermediaries

5. 5© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
​ Unpacking the Blockchain
① Meta Technology
② Decentralized database
③ Decentralized computers
④ P2P Network
⑤ Shared, distributed ledger
⑥ Software development environment

6. 6
vcapv.com © William Mougayar, Virtual Capital Ventures
Taking an ATOMIC DDDive in Explaining the Blockchain
1. Programmable
3D’s
Decentralization
Disintermediation
Distributed Ledgers
“Exchanging Assets Without Central Intermediaries”
Governance
Value Creation
ASSETS
TRUST
OWNERSHIP
MONEY
IDENTITY
CONTRACTS
2. Based on:
3. Affecting:

7. 7
vcapv.com © William Mougayar, Virtual Capital Ventures
​ In the mid-2000’s FinTech Attacked the Banks,
and it was called “Unbundling Banking”
U.S.
Europe
u In startup fashion,
most attacks
aren’t head-on,
start small & look
harmless at first
sights, therefore
are ignored
u So, the banks
didn’t feel
FinTech initially,
because it crept
up
Graphs Source: CB Insights

8. vvv
BLOCKTECH in FINANCIAL SERVICES VIRTUALscape by William Mougayar
INFRASTRUCTURE & BASE PROTOCOLS
MIDDLEWARE & SERVICES
Public Special
Services So0ware Development Special APIs General APIs Pla9orms Smart Contracts
Miners Payment
APPLICATIONS & SOLUTIONS
Virtual Capital Ventures © 2015 1.7
Exchanges Brokerage
Banks
Money Services
Investments
Trading Pla9orms
Hard Wallets So0 Wallets
ATMs
Payroll & Insurance
Payments
Compliance
Merchants
Trade Finance
Source: hRp://startupmanagement.org/blog
Financial Data
MicrotransacTons
Capital Markets

9. 9
vcapv.com © William Mougayar, Virtual Capital Ventures
​ Banks and Startups: A Strange Relationship
​

10. 10
vcapv.com © William Mougayar, Virtual Capital Ventures
​ Banks and Startups: A Strange Relationship
​

11. 11© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
​ Some Numbers to Choke At
ü £2B in loans in the UK, last year
ü $1B / Quarter, Venmo
ü $2B Funded, Kickstarter
ü £500M / Month, TransferWise
ü $282B Loans Volume, Paypal
ü $500B Loans Volume, Alipay

12. 12
vcapv.com © William Mougayar, Virtual Capital Ventures
​ Kickstarter Campaign
​

13. 13© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
​ 5 Key Trends for FinTech
① Mobile
② Innovation vs. Regulation
③ Cryptocurrency & Blockchains
④ Identity & Data
⑤ Banks as Back-end

14. 14© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
​ Implications for Developers
1. Secure data in applications
2. Decentralize user data to protect it
3. Learn Blockchains and
Decentralization technologies
4. Write smart contracts on new / thin
cloud architectures (no servers)
5. Rethink identity ownerships for your
customers

15. 15
vcapv.com © William Mougayar, Virtual Capital Ventures
Consensus
Identity
Zero Knowledge
Mining
Distributed Ledger
Smart Contracts
Identity
Keys
Consensus
Blocks
Cryptocurrency
Tokens
Permissionless
Permissioned
Messaging
Hash Tables
Identity
Keys
Storage
Messaging
Languages
Transaction Ledger
Consensus Method
Tokens
Mining
Nodes
P2P
NodesReputation
File System
P2P
The Blockchain:
Alphabet Soup or Full-Stack?

16. vcapv.com © William Mougayar, Virtual Capital Ventures
​ William Mougayar
​ Investor . Entrepreneur
​ Blogger . Board Member
​ General Partner
​ Virtual Capital Ventures
​ william@vcapv.com
​ 1-416-648-7010
​ http://
startupmanagement.org/blog
​ http://vcapv.com
​ @wmougayar
thank you