William Mougayar Financial Securities Operations Conference Presentation
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Transcript of 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
vcapv.com © William Mougayar, Virtual Capital Ventures
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
6© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
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
Source: The Business Blockchain (Wiley, 2016) © William Mougayar
Source: The Business Blockchain (Wiley, 2016) © William Mougayar
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
14© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
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
15© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
3 Pillars of Decentralization
TRUST
INFORMATIONWEALTH
16© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
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
18© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
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
19© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
Some Leading Examples
• eTRS (ConsenSys, Microsoft, IPFS)• Clearmatics, DCN for OTC derivatives• Cambridge Blockchain catastrophe bond
counterparty validation
20© William Mougayar, Virtual Capital Ventures.vcapv.com © William Mougayar, Virtual Capital Ventures
Going Forward Choices
Improve the current systems
OR
Innovate from scratch
vcapv.com © William Mougayar, Virtual Capital Ventures
William Mougayar
Investor . Entrepreneur
Blogger . Board Member
General PartnerVirtual Capital Ventures
1-416-648-7010
http://startupmanagement.org/blog
http://vcapv.com
@wmougayar
thank you