Finance: An Autonomous FutureTom Ding

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Episode 1 From Internet 1.0 to 2.0

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Most powerful tech companies are sophisticated networks & protocols

w/o offering service directly

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they out-compete with superior network scale, cost-efficiency & user experience

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… while making themselves very rich via intermediary fees

AirBnB: $26b (15% fee) Uber: $62b (28% fee) eBay: $40b (10% fee)

Google: $500b+

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Yet we pay a huge price for this revolution: 1. Loss of privacy

2. Monopolistic pricing 3. Innovation deceleration cycle

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Traditional industry = Greedy Human (+ Network)

Internet 1.0 = Greedy Human + Code + Network

What about Internet 2.0?

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Internet 2.0 = Decentralized & Autonomous

DAOCompany as a Protocol

Run by logic Augmented by Human

Fully Transparent

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To achieve that, however, we need a new computation architecture that makes …

Robots with a Soul

Title TextTHE WORLD COMPUTER POWERING

INTERNET 2.0

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A decentralized Cloud powered by millions of

individual nodes

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This computer is unstoppable , always

honest, and never shutdown.

1. Produce App ($$)

2. Fight regulation ($$$$)

3. Educate market ($$$$)

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Unbundling Uber

1. App: startup + contributors ($)

2. Regulation: Converted (thanks to Uber) & Hard-to-regulate P2P anyway

3. Market education: Done

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DAOify UBER

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Decoupling Operation, Control & Profit

Driver Passenger

open source, developed by contributors

controlled & profited by voting token holders

Autonomous Transportation

Protocol

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And soon not even drivers …

Autonomous Transportation

ProtocolAutonomous Car Passenger

open source, developed by contributors

controlled & profited by voting token holders

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Letting go of the control is the hardest but crucial bit to reimagine new business model

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Episode 2 - Reimagining Finance

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Yet Financial Access & Innovation remain prohibitively expensive

We have 3 billion people connected online and $4 smartphone available.

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Half of the world unbanked 2.5 billion with no access to savings,

interest, remittance, loan or investment.

And the remaining half … vastly overpay for access or permission

to innovate

Latin America: 65%

2000 2005 2011$5,000$500,000

$5,000,000

despite general technology cost dropped 100x since 2000 …

East Asia & Southeast Asia

59%

Central Asia & Eastern Europe

49%

Middle East 67%

Sub-Saharan Africa 80%

High borrowing

interest

Expensive Banking

relationship

Outdated Bank API …

Cost of a technology startup

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Why can’t finance be a public infrastructure, just like transportation or water?

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A parallel autonomous financial system

Decentralized applications /

smart contracts Ethereum world

computerautonomous

finance protocol

developed by string, partners and contributors

controlled by community

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TRADTIONAL FINANCE

D-BTD-AAPL

LONDON: BT

NASDAQ: Apple

AUTONOMOUS FINANCED-EURO

D-GOLD

Synthetic asset tokens Tokens whose values reliably “mirror”

those assets around world

Global financial programming layer Enable low cost creation consumer finance,

business and risk management d-apps

Build consumer

finance Dapp

Lock the price of fertilizer

Create a trading bot

Financial programming the easy way..

if autonomous finance becomes reality, what happens?

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Micro deposit/

withdrawal

Micro investment Free

Remittance

A Freedom 251 smartphone, priced at 251 rupees (less than $4)

1 Global Access to

Assets For Free

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2 Getting back our deserved interest

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A Freedom 251 smartphone, priced at 251 rupees (less than $4)

3 New form of organizations and funding

paradigm

Crypto bonds DAO BondsDAO Equity

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Venture capital highly centralized and not much IPOs for the public

source: a16z

Under US Securities Act, startups can only solicit and take investments from accredited investors ($1m+ net worth).

That excludes 97% of Americans from startup investing.

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4 Engineers become the new bankers

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Lesson for Decentralization: Trade-off transactional inefficiency for

removal of rent-seeking