Anurag Yadav is the founder of Primafelicitas LLC, an end-to-end blockchain development company that specializes in providing cutting-edge solutions at the intersection of emerging technologies. Anurag helps organisations and innovators in building their solutions from scratch, taking it from inception to launch. He is currently advising a number of blockchain companies. Anurag is a keynote speaker, lecturer and moderator on a number of Global technology conferences.View the profile
About the talk
How Blockchain is disrupting the Finance Industry
Good afternoon, good evening. And whatever part of the body has no ending in foam at this point. So what you going to be talking about today is how blockchain is disrupting the finance industry and Morty of the sea gave a little bit of beef about me. So thanks for that. I let me quickly add a few words to that one of them the co-founder and CEO of to compete. When is Final Fantasy 7 is vodka trade and barter trade is a centralized exchange. I'm going to talk about that too closely with
diamonds Enterprises and status. What is bonded is more of a leading exchange value could trade into crypto centripetal Philadelphia other properties? The company is located in Cheney different areas San Francisco Landing in Delhi Delhi Zyrtec Center and Watergate of the Season 4 continents Europe Asia and in the Middle East. And don't go postal expertise. I have mostly on the side of block in Technical and business Consulting. I sit on the board of several Russian companies baby been doing well for the past several years
and older all 18 years of experience by Marlene strategy marketing Global organization. Justin McElroy, you know, I've been doing for the day in which the space what is the overview of blockchain and how that Poppy supplies to the financial industry and how it is taking the financial industry for work and then I'll receive into the financial sector pussy. What time does a contest are a couple of things which are very interesting to be noted here one is the projected value of the launching
in the streets is going to be closed 225 billion dollars by the end of 2025 that sell the projection of when you can look at different reports. The numbers are going to be here and there a little bit but mostly in that ballpark economy compared to act with the artificial intelligence pocket, which is oversee several decades old year 2025 supposed to be a hundred and fifty billion dollars. So I technology which is being there a fee for five or six years that you truly feel like I'm locked in when it started to find good used in the business and other areas was in the
year 2015. They still technically in 5 years Time by technology is competing with artificial intelligence has been there for several decades of the sea. Make sure they do where is chicky. Why is this the case? The reason is blockchain Finds Its use in almost every industry every Walk of Life we can think of. We talked about government says oversee the voting application where Augustine commentary extensively time to see if they can use blockchain Healthcare Automotive real estate shipping or just take you name it and is definitely somebody who has a product which is
running in that industry. And that is the reason why the Sandusky is Flushing. Now let's go to another contact. And in this case, I want to tell a story and then draw an analogy based on that story and see how that applies to our case, especially about the financial in this week. So contacts twice a year 2003. If you look at the global music report Industries Revenue that Revenue was 20 billion dollars fast forward 15. The steam of Revenue has shrunk by a dog. I buy a billion dollars now it is close to 19 billion dollar
revenue of 19 billion is actually shared now between two kind of service providers are too kind of business is which are providing access to the music and what is this. The first of whiskey is the traditional brick-and-mortar where you have to do is go to the store today and get your music all you have to get in shape. So there's a physical version of that getting shipped to you or doing that the other than you were so streaming services came in and loss of
Phineas took almost 50% of the revenue from the tradition industry play the music industry in a sentence sort of got distracted and let's see who were the player that you were doing this or the players were Apple YouTube Spotify Amazon music Colectomy this phone companies control almost 80% of the streaming business less 20% as a way as exotic businesses one interesting thing which we can look from this or girl from this particular, you know, mm TB Stampy's
weren't even the music business types of these are primarily internet companies, which of our traditional nothing to do with music that came in the music industry and basically took a chunk out of that. Right and the Beast is going, you know, it's going to be a 34% year-on-year, you know in the next decade or so, I believe they'll be close to 90% if not hundred percent, right? so if they are able to take that big piece of the business what exactly was it that the cause that drives the number of ways which you can look at, of course that be internet that I was there and
these companies game about base motive and opportunity in the music industry and the business model which oversees defensible and that's how they took the share away, but If you look at it more DPS in simplifying this problem and overlooking number of key issues with 2003 the way you could get your music was going to a physical store or getting a chip bag to to get to access. There was a physical element trade and what do you think he's dead or live streaming of mr. I was looking this actress problem and solve this problem, right? And so streaming provider that
access to a lot of people who may not have the ability or the time to visit the store will get it right. So because of that are fundamental reason I'm usually able to describe rights issue when she's confused. No, let's go to the financial industry and we talked about this particular contact and said how that context is going to apply to the financing. She so fine. She also has an access issue. What is an access issue? If you have to use any of the financial industry products more unless you're looking at getting an appointment to the institution
going there doing yourself, you know, if I feed summoning all your documents getting us as approved before you get access to the ecosystem, right and it could take anywhere between 1 to 2 weeks. I depending on your credit history and the rest of the time so that's number one fiction blame. The other fiction point is of course if you are unemployed, if you are a student. If you are an immigrant rights again on these categories that are so many other categories which are similarly treated by the banking and financial institutions. So these categories of
customers Are not really you know off entrance to the bank so much and the reason is I don't have the traditional background which the banks wanting their uses of customers against which they can, you know, if I do kyc and the rest of it if they don't fit in the pie in a dream, but they're not real interested in getting you as a customer. So those two fishing points actually made the current Financial system not ready suitable for adequate excuse to the current in a millennial side. And what's happening is a number of things which is there financial institutions play. So
before we even get there, I think one of the fundamental things that needs to be addressed as why do Finance industry or other financial institutions as we know them today even exists, right? What is the purpose? What are they trying to do, right? So fundamentally, what they're trying to do is address the counterparty risk involved in any transaction, you take an example of any two different parties on two different continents time to do a business. Do you know, how are you bringing that dress has always that risk? So imagine somebody in a small city in Nebraska trying to do a trade with
somebody sitting in Delhi, right? How do you draw a people person. The boys are going to be shipped and he's going to pay on time or if the person is already paid. Well, are you going to get the good so that kind of risk in any deal is what the banking and the financial institution set out to address and how they do it cost. And what is the stress the Trust In the case of the financial institutions is fairly straightforward you giving them the money the money is going to be in a successfully given to the recipient on the other end day and if there's any issue with
the transaction that transaction is it worse in August you get the money So as long as you're done all the right things, you know provided you're in octane you signed it correctly, you know, the correct wire transfer the money is going to get on the other side of the trust the banks boys and how do they do it? They take on the display that the other person is going to pay is going to honor the contractual obligation of entering into a specific deal. So that's one reason of their existence and how are they actually which wood is a very interesting story. That is so imagine this particular
Bank in Nebraska with a small Credit Union bank and they're trying to transact with the wind. Chill in India is that this particular Credit Union also has a branch are in jelly. And so it's a very straightforward internal funds transferred but given that deserve a small Credit Union Bank in Ohio and there are so many out with him attention to all parts of the words if they start opening branches everywhere is in a regular glue going to be unfeasible to actually run the business side. And so what they have to do is they
have to rely on what is called as a trusted network of financial institutions, of course comprises Banks would also trading houses and clearinghouses brokerages custodial services for hostos financial. Institution and they come together as a consorcia, right and the Consortium, you know, if you might have heard of the Sith Society people who have used one word Emma tenses and in some form would know that there's a surfboard and the surfboard is an almond a check coming from the social type these operations, right? And so
everybody is part of this close a network or consorcia of banking financial institutions designated as Swift and they're so what happens is Banks can then use this particular Network, you know here in India from the US of their time to transfer using the switch networks folds late. So using that messaging platform, they are able to transfer that information overseas saying this is a legit transaction and this is between these two parties. Please transfer these many dollars. Pennsylvania straightforward process coming out
of the Swift what happened through is because all this information is under, you know one single umbrella. There's obviously a rest of that information data and so many other aspects and we are going to talk more about how centralization increases risk in any system. But at this point, you know, we can take it back because it is centralized as a human race that comes along with it and finally because this particular Bank in Nebraska is relying on a network they have to pay the network
from one point to the other nikolovski has to be paid for their services eggs and who pays the services it's not the bank to pay the services at the customer's you and I hope you pay for the services and how do you pay in the form of a wire transfer charges? Right? We'll try out for it and also involved if it's a specific bank, right? So up to $3,550 each. You paying on a small transaction if it's a small ticket transaction 200-250 $300. That's a lot of money specially that kind of ticket sizes for the emergence Market where
people are everything money back. And if you charged almost $50 on a $200 to $50 transaction is the huge money. Where is it? That money is on $50,000 hundred thousand and four different story dates. So in essence the finance industry again has similar issues of axis and I and the selection criteria that they have for having people as they're clean and all of that is dependent on a network of intermediaries to facilitate on last night. It's not a straightforward.
No, but that left understand. For what is blockchain and then how blockchain will help or is helping Finance industry actually move to the next level. What is blockchain at a very high level we can think of rotten as a ledger nothing more than a letter to be very honest. And on this Ledger you can store transactions and these transactions would be transferring money video files audio files. You can anything which can be in the form of a signature on hash Denbigh stored on the Block in order in this Ledger.
And this lesson can be viewed by anybody. So anybody who has access to Internet can go and look at that ledger, which is obviously not the case if you are in any other industry for instance, if you are nobody centralized business such as Google Facebook, you obviously cannot go get the Ledger. But in this case you can look at The Ledger, but you cannot add information you can only add information if you're part of that necklace also, so it can become a part of that process and anybody can again become a part of that Netflix also. By and large, if you do not have the
membership, you cannot add information, of course, nobody can edit or modify information and I'm going to tell you why that is not possible unlocked. But because you cannot edit and modify therefore it is immutable. All you can do is add more information. So it is like a giant interactive Google spreadsheet where people can go online and look what's happening or who's doing what transaction with whom but they can only do something and underwriting information if they have access other way they can. And the information actually doesn't get
stored as a side. So as soon as I can happen, if it's not that automatically is going to get sold on the legend. It has to First wait for certain number of transactions to get approved by the necklace. Obviously each transaction that is submitted to the blockchain doesn't get stored. Automatically. It has to be approved first by the network and then it is stored on the blockchain and these transactions as I was saying don't get stood straight away as they are actually stored in The Bachelor number of international particular block
quarterback, which is what is Father the Block in the blockchain. So I fix number of transaction in the block and that's how I block gets approved and then get stored on the blockchain and the last word is these blocks are linked to each other. So the last dog is linked to the second last. So it's basically gets offended right East newborn gets up and get to the last block in the chain and you can get us out of visualize this Model S. As you might have seen in the motor cheese are linked list some of those arrangements.
So that is how you get this name blockchain and each other. A list of The Blocking from the perspective of storage. So how is information stored on the Block in before we talk about how is information stored on Rotten lettuce and dust and how is information stored traditional traditionally you to think of this as maybe Google or Amazon? Let's consider Amazon here. So imagine this is the Amazons database. The information is getting transported from all these different devices mobile devices
laptop desktop and people are entering all sorts of information billing information in the shipping address to credit card user ID is all of that information is getting stood here. Baton this Central Data Center and you are getting a copy of The Ledger. Right? And this copy of The Ledger is only under the control of Amazon and you have the ability to make smaller changes a changes in the password. Maybe the shipping address bank account as a new car D12 attached but any major things such as you kyc documents your verification,
all of that has to be approved by Amazon before Dad can get store on the cell was right and the octopus should look something like this. You have the central point which is ready ready to go board digital asset Rd and physical security and you have all these different notes contributing information. So this is a single point where everything is going to storm. Of course, you know information here is also distributed to the ground always keep the entire information one location that multiple location but it's not
spread globally across millions of devices, which is what brought Chinese I'm going to talk about that now, so in case of blockchain each note here has its own copy of The Ledger. And this is the same copy of the laser hear you see it's only Amazon which has a copy of the legend and everybody has the same copy of The Ledger. And as soon as this device has been conducting a transaction propagated throughout the entire network again has the same version of Truth. Other thing it's only one version of fruit are here. Everybody has the same
again. Now, this is how the network looks like. All of you notes have the same copy of the letter and they are distributed Google initially only c67 devices, but these are primarily millions and tens of millions of devices globally. She and I think one interesting thing which is worth noting is that the central system is also a central point of philia. They all has to do one of the shooters have to ask to get into the system bring this thing down. And as soon as you are able to bring the central system down the entire network collapses, right and
you know, it might sound a little louder than everybody in all the major asking no social security email you are you named it have been executed fundamentally in this particular fashion has managed to gain access to the internet was down. Now if you have to do the same in the Block in it, but we should always be everybody has the same copy of The Ledger and these copies are distributed across tendon malindo devices globally. So the only way somebody can do it is by executing a 15% attack. So what is the 15%
or 51% or tag is primarily An attack which is able to compromise 51% of the network nodes. Imagine. There are 10 million devices and you have to simultaneously by Melinda price is right. So if you are able to do that at the same time, right then on the other able to bring the Netflix down, which is clearly not feasible because Technologic. I'm going home by Melinda versus the same time and definitely not commercially viable. So therefore has accused in the current weight of
Architecture is not possible. You know, what Quantum Computing coming in there are your chances of things are going to get updated and some of these 51%. Axe might be feasible. But at the same time one time, is it in several years down the line and life was locked University is thinking of this issue already and they are trying to build a new version of the protocol which are definitely going to stay. Off all day shoes, which Quantum Computing might pose in the near future. Now let's look at the actual weight of a national happens on a
blockchain and how it in store. So the entire mechanics of how each transaction is initiated to how it gets stored on the Block the imaginalis involved and turn into a transaction was $10 to work. And that goes and gets stored. And what is Carla and confirm transaction pool. So in this unconfirmed transaction pool, we now have 15 different transaction 106cc belongs to Allison. And as soon as he signs action the dead Indian confirm transaction pool ingesting phenomenon happened, so I was sending you only people who have a
membership student have the ability to add information to the blockchain network. And so as soon as these elections are posted these members are basically rushing against I'm competing against each other trying to do what trying to find the next block of the snatching and how is the next block sort of found from these transactions. It is Busy Bee by picking up the right combination of the transactions of the 5 connection. So imagine this is a blockchain which supports our type of rock is not can have five. Election that I was telling
each block will always have a fixed number of connections. So in this case, it's by fun action. So the network has to now compete and find out those five transactional of these two things which are going to comprise an Xbox. So it has to be timestamp in the same order. And how old is this is done. It's basically done truly truly buffos computation where millions of limitations combinations are running and you have to come up with the next version with as soon as you are able to and it is nice to be a
lot of things that you are there your rock gets to the network for their approval. So let's look at some of the Galaxy So this is basically the block right and block has automated in this case in a block in a block away. So it will have information on the PS Vita than the number of other things. I was telling overtime Standard Version nonces, you know something which is attached to meet a specific hashtag it again getting a little bit technical but just to give you a contest so we don't let information you run a hashing algorithm in if you are able to
achieve a specific Target two things happen one of us are new rock is created because I'm going to approve it because it is to make me prove to be correct. And do you get the reward right? What is it about here in this case is you get 6.25 Bitcoins if this is a Bitcoin Network, which means you're getting up to 70 to $75,000 for the 10-minute timer contribution in terms of population. Of course, it's not a easy conversationalist. Vanessa Boutros population it's not even normal machines near the lake application specific with Junel
Fe 15000 $20,000. So all of that comes together, right and you get the reward and you're able to phone the next block and this whole process of taking out those five transactions and forming. The next block is called as binding why is it called mining because you know, it's taken from the traditional mining industrial mining for their medals and windows. And the idea here is that in a precious block of connection rated could be the Bitcoins next block and which is worth $70,000. Therefore it is precious and therefore the term mining.
And what happened in that is the net worth of booze that I was telling you and then the foundation to the store in the block resting thing, which I also want to point out here is that it is very difficult to sort of meet the hashing Target and that is where the entire network is fighting against each other to compete for that $70,000, but it is very very easy for the network to verify because he's always answer right? So it is very easy to find that for the next
week is able to verify it in a very short time. And so from this entire exercise, you know how block 350 HS elections 125 and this is the existing Roxanne from Rockville to Block C 57 and block speaker. Goes and gets offended to Roxy 57 right now. Very interesting to note here is that you have information from inception to date in August New York. You see the reference Caterpillar stock. So that has brought information and all the way to the Dennison rock is he? All right. We have Inception to
date record. Their 4058 is connected to 357 like West 57 is connected to 3:56 and all the way to block zero. So what does that has a couple of very interesting things on you know, this has very huge implications for these supply chain in the skin. That's where it is being used a lot after the financial industry is that doesn't compute traceability n2n. Nobody can you know tamper with things over again do anything with the information that store and you get complete traceability right from the very beginning
and not going to work instead of transaction fee may be done lesson 13 is the correct version of the snow fine. So he tries to change that transaction here and he tries to submit it and get and so what he has to do is as you can see its Inception to detect on so he has changed Rocks Amphitheater. He has to go and change and Roxy 57 because it has an inflammation of Phoebe Snow. Once he gets 4057 he has to Chauncey 56th and so on right to the end that allows zeros. So this is now when you stayed at the Roxbury has managed to let the change the entire that cuz I found in
section that I can tell you is extremely difficult. First of all, secondly, he normally has to do that. He has to been get the network because as you know, anything that goes and gets stored on the blockchain has to be verified by the neck so clearly impossible version of The Roxy in which has been completely by a single actor lights and therefore this immutability aspect considered to be right the wrong things are immutable. So coming back to our example of supply chain because it towards the seamless and doing the
information. So that is why it is being used in keeping me in the supply chain industry after the financial. Panola Rd cool features which really help financial industry move to the next level up from of the Rock in ecosystems. The first and foremost is the decentralization aspect because it is decentralized. No single Authority is controlling it there for the democratization us all the axes issues, which we were talking about earlier. It is distributed of positive thing Amazon has disordered set of data
centers. It's not just one but then in this case, it is truly distributed globally and then it isn't any information which goes on the blockchain is there on the rocks in forever, right? And there's obviously a huge debate going on especially with the GDP are coming in and right to be forgotten and a whole host of other issues as to when information is there on Rockton. How do you forget because there's no way to Forget You can only go in add more information. We cannot undo what has been there so that New work is going on with some of the information.
You know, what is a smart contract? So it's a very interesting, you know concept and honesty symbol Smith work to call it a smart contract because these contracts and you are smart and not legally enforceable, but as an idea smart contracts have existed for several decades now and to put it simply smart contracts are selfies with you to Gold program Small Program. Basically mimic contract contract of salmon, California. This Shipment has to be at a certain temperature.
And so if a port in Tokyo Oh Andros being put in the container if it was ratified and prove to be of good quality. Then inside the container will have all sorts of sensors temperature sensor is bad in fire information during transit in the ocean is getting transported and getting captured on the Block in and when it arrives in California We Know by default by looking at this information on the Rock in that because information on the rocks in there for
the does immutable. Nobody has tampered with that information. And since you can rely on that information there for you don't really need to do a lot of inspection on that Consignment and you can now straight of it is the payment. So the payment part gets automated right? So what are smart contracts that's basically says it's unconditional music to the other part. So if B Storage conditions are met in the fish is in good condition then straight away release the funds to the bank. But that is what a smart contract does it in automate this entire process
actually have been helping a lot of the new Financial order PSE, especially with some of their Technology Academy. Let me see in the rocks in. So before we get into that I will walk you through the example of the payments industry, which of these is most familiar before I get into something once has The Global Payments industry is $310. / see one of the largest by far and within that small segment, which is going to run Fest off the size of the total industry is the cost for a payment of $22,000
and profitable, right? Yet every year they lose roughly 8% in terms of transaction fees in moving money across borders is Everton's business no to this earlier on his business is primarily what friends and family send funds back home for you to sustain in education for supporting home loans and holos of other things to 690 billion dollars and this also started heavy physical therapy for people billion dollars. And if you break that down fast food restaurants was account for a fee 96% of huge amount there and Family
Maintenance comprises 60% Drake Family Maintenance. Send, you know family members working overseas back home. No, I bring an indie examples here because India is the highest recipient of the inward remittances. So it has the most efficient in word payment corridors and therefore so the best Android are some of the best things that you can get for when you're transferring money to India and the average Hamilton's to India is about 3.29 again. This is how you get this is definitely very good compared to the
industry standard and if you look in sub-Saharan Africa This is a free 9% rate. And most of this of you saw is Family Maintenance and usual ticket sizes 200 to $50. So it might into $50 and 10% gone right to $25 meant for supporting a family of four or five when to start in Africa. That's a lot of money taken out of the system. So from that perspective, this is an area where Augustine all the work is going on because people recognize that there are a lot of beneficence. He's in the system and people's
hard-earned money is going because of this. No, let's understand how I actually some of these Payment Systems compared with each other sometime concert again, you know cost of sending $50 is $5.20 and you know post office Western Union in mobile operator and pestle uses more prevalent in Africa. Kenya is $1.27 in terms of the functions of Olivia. Now again, I'm in love you're taking a number here $50. If you change this number, these numbers are going to be different, but it just to illustrate the point. It'll definitely cryptocurrency offers
the cheapest and by far the fastest way of transferring funds. Let's see how I actually money flows from one side to the other. Imagine again. Let's go back to a Nebraska example of this particular customer walks into the credit union bank you are in Nebraska and initiates the payment order. So the details on the recipient the bank account details, everything is Cher and what they're going to pass with this information because of it doesn't really have a data connection to receiver bank and they said so they have to rely on this whole network of
intermediaries who are going to help them pass on the message over the Swift net worth when she spoke about so what happens if I'm going to forward this message through the central counterparty in this case the fed and the fiddle in the band find somebody in the nekropolis ascending correspondent. Which will have a relationship with corresponding banking relationship with the bank in India, right? So as soon as the FED is able to locate this message is transmitted to them and they transferred the message forward to the recipient corresponding lines and the correspondent bank
on the other side. Then transmit this information to the central The Reserve Bank of India. And as soon as I get this information deposit going to the bank where the recipient holds the account and from that mean when it goes to the specific branch and that's all the money gets transferred. So this entire process that you have so many in the middle and a very simplified this bus is here. So all the world and the timer takes write Rocky Patel. Can you ever been to five days and it cost for the weather cause we spoke about earlier on God's time with
contrast which is basic. bearded bear all you have to do is use a mobile app on one end and the other day and you can make this transfer instantly something instantly. Okay. I'm in if you are in love with Bitcoin Network, this might take 10 minutes, but if you are on Sunday other necklaces of the tedium Etc in this is going to take just 10 to 15 seconds to get approved and get transferred. Right? So it removes all the all the costs involved in the traditional Finance space and does transfers directly to Steve.
Let's look at the financial sector person how it is structured and what are some of the innovations that are going on to? Before we get into that other thing, let's go get the current system for say so. The banking and the financial institutions today have unprecedented access to data on a Skype video of them all sorts of information because that's how they have to do. You store all that information and use it to the extent that this information becomes proprietary knowledge for them basis, which they can clearly under eye loans and other things to do outside,
so they have a lot of information on us. To Sonoran insurance on the deposit that happened in the bank side of the AC is on the other things. You can just sort of on the San Diego system how you know honest already until you can get us all in and turning all sorts of deposits to a bank. And of course, they have a very special status as you know, Spire credit rates. So that's another area where they have major axis. And finally because these banks have been there for such a long time before
they have a distributed Network spread globally in case of the advance and if it is a small ranch still have a huge Network lights. So any new player who has to enter the financial industry major issues, right? Because you're dealing with more or less of a monopolistic system where a barrier to entry is very high. You have huge Capital requirements for snowfall to enter and then of course a huge Regulatory and compliance that is 200 time before you can think of setting up a new financial institution and that explains why there is
no incentive wouldn't be financial institution in the parent be there at eight exist to innovate right? Because the battery twenties ready High it is very monopolistic. So why I know we don't have a lot of choices And that is where to some extent of industry in the last 15 years. I would say I've been trying to do that. But of course, you know, and then there's another work to be done in major areas. The places where fintech has been successful I would say is lost in the retail space and Lending Club. We all know about
and there, you know competitive. So that's a big project crossbody payments. Of course that was pointing out earlier is a major pinpoint which some of the founders actually bought themselves when they were younger students are, you know, getting money from their parents are there had young families and that's how they came about this idea solving this problem. So you find all of the class in the hospital payments space and very interesting area off on this Earth market. So what are these Market? These are primarily small businesses
which again Going to Aldi financial institution in tongues are getting them as their value test, So, you know these people have money and they let you know do business but they don't fit into the specific more. Therefore. They don't get access to the financial industry and that's where frente comes in by packaging them differently in Tamil. No, despite all of that context hasn't yet disrupted the finance industry, right? I would say it's basically done to the country. It's not know how to spell from that perspective. What is the primary reason the primary reason is that
context of a c as any start of would struggle to get early uses in her doctors and for start of with not a very significant name in the market? That's the way you ready Steve boss to get in a solid user base. And that's where they are the land on times for Partnerships. Right and this Partnerships help them gain access to the bangs and users and for the bank at 7:20 at the banks now have access to technology which is going to set themselves apart from some of their competitors and the context get access to the user base. So it's a good
partnership. To introduces a Regulatory Compliance for a different Tack and why does so is because now all the onus is on the bank Northern the fintech startup. Otherwise the burden of Finance even though the way to set up today with all the sandbox is globally the printing industry gets very mean in terms of applying for musically tree framework. So exorbitant cost is not always born by different but coming under the umbrella. It just takes care of all the
negative Chi shoes. What's what happens in the end is beast when taking nasty players end up just building Our Lady of party system out of system which had affection which was inefficient, right? So it's more of a factual trying to make do. And so we don't see the first principles approach in terms of building it the same first principles approach which we problem solving the music streaming companies came in and they disrupted Immortal fundamentally or how Amazon came about and change the detail, space. What do
you mean ride sharing in the transportation in this week? So maybe I'm seeing the print a space. It's more of partnering and Indian getting acquired by some of the major rank. That's between the exit strategy moralist. Now when we look at the Block in space and why blockchain is not going down the same road as a friend takes place is primarily because of the fundamental underlying infrastructure. So different textures are reliant on the banking industry because they have to use same
kind of user base that using similar technology. Therefore they have to ride on a big update of new technology space which in this case is financial institution in the bank and therefore that partnership make sense with blockchain. Which is basically are distributed Network. Do you know she is basically building a fresh infrastructure ground up there for there is no way they can rely on the existing banking infrastructure. Therefore it is a complete fresh, you know, first principles approaching importantly that is a direct competition between the blockchain Based Services to the
banking services financial institution Services as we know them today. So that's one fox two. Because of all the things we've been speaking about in the smart contract the decentralization no single point of failure and parlor security immutability all the good things. Actually helps lower the counterparty risk systemically winning the blockchain based on network. So now you don't have to rely on interested in WWE Network to get in that trust the system
itself provides that trust the software is building the way that you have that trust building right so you don't have to adjust on anybody else but on this off, Indicting in top of all of this that's happening in the Lost in Space in the United States is a new Revolution, which is being done. Listen to lies Finance in the Block in space are Nephi or shark. And what is defy or decentralized Finance? So it's basically a financial institution Services bird on top of decentralized blockchain network. So
what financial institution services do financial institutions provide a thing such as opening a bank account saving account loan mortgages Insurance directed to all that you can think of in the traditional Finance industry also is getting burned on the decentralized blockchain infrastructure. And the what is does is fundamentally one very important thing. It gives universal access to people because now you are not aligned on the banks complex procedures bureaucracy time access issues. They are you can directly
Create these are take part in this financial products that are out there Berliner decentralized Network. And what do you mean? All you need is basically an internet-enabled smartphone, right? And on that smartphone you log in to this particular application application or a finance application download, you know your wallets that are attached to that and you start unlocking straight away. You don't need any sort of approval or inside of time to live. Too because it is decentralized. Therefore. There's no central control.
That's very obvious. What's not so obvious as most of these decentralized applications that are getting building again. This is where you lead is if I can afford industry because Industries just five years old is that these decent lies application which are not centralized decentralized. Also, there are aspects guy that is some amount of control with B cool team. So in case of something going wrong with the platform, they have the ability to switch the switch off in the sense that the girls can be starved already know if a cat is trying
to gain access control and once the problem is settled then the switches turn off turn on again rights of control is there with some of the project and again it is based on community. Besides and then Ward Theaters that I will go ending or controlling fun and then over time. 30% 20% control comes down significantly. What is the protocol is make sure enough there since you better be should have been addressed. So it is not purely decentralized also, but you know, it has the ability to truly be
centralized with then it might be very chaotic a distance because Governor decentralization is something which is being drugged up on there for this 80/20 sort of arrangement is much better. I can't think of any right but your dad today in Lake Standard Chartered bank institution atasco, today has to go to so many local Regulatory Compliance has before they can actually start doing business. Contrast that with decentralized Finance. This happens automatically on day one to day one Euro Global business and everybody actually can take part
in your car. And finally gets permission that's to create and permission has to participate. What does that mean? So permissionless to create is in a you can create your own Financial products, right? Because you have the underlying blockchain infrastructure lyrics and all you have to do is add layers on top of it and you are able to do so think you know, so you have the and on top of that where you able to ensure the underlying a sufficiently derivatives and these are so kind of newer things are possible
in this because you don't really need permission. You don't really need all that depend acacian which you know usually comes with the traditional systems. No, let's also look at the value of this market. And so the total Finance based in John of this year was 650 million and by the end of September nine billion dollars, right? And if I look at the figures today morning, this is 11.21 billion dollars. So what you're looking at is in a span of nine months that is a
multiplier effect of almost 17 * 5. And you know number of things. I've actually had one of those do the Cougars has been extremely good for the business because people started to look at various options of sending money overseas are in a Justice be making digital payment and that is where a lot of new first-time users came in and When the Music's came in they realize the potential and they started with Saudi aspects of lending felony has been very good for something you were trip to convert
and all of that is basically contributed to the surgeon this but this isn't seemly in a positive going at a rapid pace and the newer models are coming in then I'm going to talk about that Trucking. Things like automated lawn and what is automated only imagine two people sitting in two different part of the world right again, let's go back to Nebraska and Deli alone between them those two people ever a family today that is using some of the applications out there where the system is going to negotiate on the two bodies we have and I'm only
going to be logged into a smart contract to do something like an Astro and ones of you turn the finalized and executor on the blockchain and they're stored there. Then this transfer happens, right? So this thing is not a futuristic day of this action is happening as we speak. No, I just another decentralised final space and what are the major use cases? The first is of Coast lending. I was talking about lending selendy what happens if you put in your trip to acid, I could be Bitcoin NY Bitcoin Diamond appreciates the
locks in value. It's more or less something like a precious commodity and some people don't want to sell it. So what happens is people, you know get there something I can ask you as I was sending you for 90 days and that amount actually owns interest because it can be used in multiple other things and what not. And so this person after 90 days has to return the principal and dangerous part night. And then unlock the Bitcoin back to his wallet so that it
was pretty much like a exchange which we all know of another London Stock Exchange the New York Stock Exchange has basically trading in stock. So here we people are treating in Vegas strip two dogs named Sue companies issue their tokens and people are contacting in them. The difference here is that this trip to training happens over there decentralized blockchain Network Sonia's exchange elaborate on top of decentralized blockchain episode is more pier to pier nobody
controls. So that's another area of a chance of us to you know, Ready Bacon to be feisty. I'm finally asset tokenization again, there are multiple ways in the in which this asset tokenization texture, but I'm going to talk about just one here. So I imagine there's a real estate downtown Manhattan dinner, maybe a studio apartment. 2-bedroom flat butt 10 million dollars and I here sitting in Delhi want to buy that property. So 1 hour to go to self legal Regulatory Compliance issues, but importantly
I need to have that entire 10 million dollar in my account to be able to buy that for your question of counting buddy mortgage. Another option sucks is that has to happen. I need to hook a million dollars. Otherwise, I'm not going to get the property this pretty yes or no right now trying to do is they are fast-rising this so what I mean by faction Rising is the putting this acid onto a rock in the nodding a dinner using that as a And you think tokens on top of it rain? So 10 million
dollars worth of broken down into 500 Hundred 500 hundred thousand dollar value, but now I can actually buy $10,000 worth of this apartment or studio apartments on life ways. I can do other parts of the world. You know, I can do that in Tokyo. I can do that in Shanghai. I can do that in Delhi. And so now my Google portfolio and the value of this house and goes up and down. I can come back and settle this in the secondary Market where my tokens are going to be sold or traded in. So that's a big part, which is happening to Dollar Tree key areas than other than that.
He spoke about space again, very important and margin trading volume training over see, you know how to log in terms of traders who are radioactive in local project. Twin confusion. The blockchain is definitely disrupting the finance industry number of ways of a sailor saying it offers some of the advanced features which the traditional Finance is not able to offer because of course, you know, it has on itself to provide safety security Home Depot protection and a host of other things because of which they are not in a position
to sell some of the market to the two problems. When is the access issue and the other is the selection of the uses those two problems remain with the finance industry and that is why I blocked incomes and addresses those two problem then and it's sending you to gain in. So just to get to that specific wind we and let's take to major corporations today JPMorgan. So JPMorgan is deciding to come up with a 2.4 GPM coin which will be there to currency for their users to turn acting and eventually they'll
be opening it up to that as part of the world does the point of making or GPM is that it's not just GPM if I look at any major in a globally I think none of them would not be experimenting on using lotion in some form or fashion. So you do some heavy-duty POC what has been going on right now trying to implement. They're looking at some full fledge in implementation. We've gone past you see stage. Go Banking and Financial industry birthday is well aware of the challenges that are posed by brought into them and they are trying to experiment and do things with them. But the
problem is that is it is, you know, again the ferry for the levels daytime to do things to protect their existing business. Where are the views are two very different ecosystems is getting buildup. And if they have to a dog that ate moralist goes against that established core business model. Is it going to be very interesting to see if I can see how do you stew competing forces come together one is experimenting with this emerging technology. And then protecting the existing business which is better than the traditional sort of infrastructure.
Likewise libracoin which is owned by the Libra Foundation, which is headed by Facebook Facebook created at foundation and has 30 different members including Facebook including MasterCard. Visa PayPal does a big name, of course, some of them left also after the government, you know, the Senate called into question some of the aspects of the point, but truly committed to bring this libracoin to Alex Facebook users in the next 2 years time, right? He's working, you know how to not get along with you
30 members drawn from different business acquisition and access to crypto coin through Facebook, right that's going to be a user adoption and actually democratizing access to financial services, which is not dead. even in some of the leading economies and then you have this YouTube effects of what YouTube did back in the day was held her democratized the creation of video content and the distribution of anybody could hear that people are able to build their own Financial products without the involvement of any Central controlling Authority. Right. So we just spoke about this example of
insurance on top of derivatives. That is something which is definitely feasible and possible and it would not be surprising if somebody comes up with that. I have not seen that idea but if somebody comes up with that idea, is this something is it going to be locked up by the market very quickly. So what gives them the ability to create their own tools based on the needs of the market? How the markets which are not Market musician not addressed by the existing players are actually getting a dress and how you know, because there is a market
for products, but she never envisioned something like multi-level marketing or Matrix marketing where you know, you have 30% referral 20% referral bonus. You have a flying down lines lights all of this happens in the regular space for the financial institution can get involved because it is associated with it and decentralization. These things are happening in the foodi decentralized automated Manor where fear to Pier this contract smart contract is formed and people are getting money based on the commission
and they're getting back pain because that money is getting invested into English farming and some of the other areas and of course the money is appreciating in value as well. So people are able to run handsome. Returns of 8/9 10% again don't take me as a rocket has been exploding babies be in early stages of this Market going up which is causing this momentum. What does mean a huge search in the valley? Multi-level marketing is one than this another concept of emergent and people come together is $10,000
to a part of money and dad when he's again used for you to find me know some of the other day because there is tons of interest in that one month span at the end of the month does not contract runs into logic it selects one person and that person gets their $10,000 back along with the insurance dentist hundred thousand or so, they guard be interest plus the $10,000 less. Everybody got their $10,000. So what does Muses people get risk-free interest earning otherwise activate the capital back to this kind of
possible because of blockchain really wouldn't be possible in need additional space and Hear the value is created by the parts inside with the lender and borrower. They're creating value and the value getting shared by these institutions on the money of people rights of people's money is given to them. They use that money capture all the value right here in this case that values distributed, you know, true that smart contract value knows all these presentations are decided before entering into the contract and who's going to get caught. Everything is basically decided.
So what we do as a company do the things you do over Stevie do rocks and Consulting with developments all sorts of development that we talked about fun fact exchange solution in the Roxy in space right from the idea in section 2 executioner Department launched an open face maintenance box and Alyssa you talk about the exchange. Which is essentially the same base out of the four continents me talk box. So that is a very Noble exchange you think of it as the
version of binance to coinbase and playing in a very Niche segments. So if anybody has any interest happy to talk about that as well. These are my contact information my email LinkedIn thing else. So I think without ever let me and this presentation and take some pressure and I help you.
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