Blockchain, Bitcoin and Altcoins - Champike Munasinghe Founder/CEO Bitcoin Pvt. Ltd. Foudner/CEO Cryptofinity Ltd. Colombo, Sri Lanka
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Blockchain, Bitcoin and Altcoins Champike Munasinghe Founder/CEO Bitcoin Pvt. Ltd. Foudner/CEO Cryptofinity Ltd. Colombo, Sri Lanka
Financial services giant Northern Trust managing over US$ 10.7
Trillion Assets has significantly expanded its work with blockchain
and cryptocurrencies across multiple divisions.
Morgan Stanley has poached a 12-year veteran of Credit
Suisse to lead "digital asset markets" at the bank.
Galaxy Digital, Cryptocurrency Bank is listed in Toronto Stock
Exchange
Baclays Bank gauging customer interest to open a Cryptocurrency
Trading Desk
The very first concept of a Blockchain was publishedin 2008 Technical Vision– The impregnable Open Source network with undisputed ownership of the data that can never be retrospectively altered. Political Vision – The freedom of physically owning and moving value across borders and communities, peer to peer, without the involvement, interference, approval or control of a central authority such as a Central Bank Financial Vision – Intelligence built into the network to maintain flow and scarcity of Bitcoins to increase its value exponentially against the demand.
Blockchain is a sequence of data ordered in a chronological order. Each set of data is called a
block and carries a timestamp, a pointer to the previous block and the stored data.
Block1 Hash Block 2 Hash
Time
Wallet is basically a store for the User’s Private Keys for the Blockchain. It is similar to a private safe where you have a Digital PIN Code
Trading platform where fiat currencies can be exchanged to Cryptocurrencies. Interface similar to a Stock Exchange trading screen Worlds biggest exchanges are Bitfinex, Kraken, Coinbase, CEX, BitStamp and Poloniex.
Mining was introduced to maintain the Blockchain in a decentralized manner The reward for participating in the Mining process was the automatic grant of Tokens The first such token was Bitcoin Later it was called the “Cryptocurrency”.
Mining is the process which validate the transactions on the network. In the early days of Bitcoin Mining could be done with Personal Computers. Now you need specialized equipment. Most of these boxes run specific protocol and software to mine a specific Cryptocurrency.
Ethereum Mining Rig Antminer S9
Bitcoin’s value in terms of US$ has grown from 0 to $6,000 currently with a peak reaching US$20,000 in December 2017 and a market cap of around US$ 104 Billion
The demand and growth is two fold. • Users who want the flexibility, independence and anonymity provided by Bitcoin to use it as a vehicle to store and move value in the short term • Users who are observing the growth and investing in Bitcoin as a Medium or Long Term asset
The Bitcoin algorithm is built factoring scarcity and managing supply and demand with advancements of technology. There can ever be only 21 Million Bitcoins mined and so far around 16.8 have been Mined. However it would take approximately another 100-120 years to mine rest of the Bitcoins. Why? Bitcoin has a built in control to Halve the mining reward every 4 years. 50% Of the 21 Million designed was mined within the first 5 years.
Bitcoin has a built in control to adjust the “Difficulty” of Mining a block and claiming the reward. As the computing power on the network increase when more miners join the network, the difficulty also proportionally increase thus maintaining a constant network “Speed” This mining difficulty adjustment is automatically done every 2 weeks which is the defined time to generate 2016 blocks.
Altcoins are the generic name given to all Cryptocurrencies other than Bitcoin Ethereum was developed as a distributed computing platform and Ripple was developed as a alternative to RTGS solutions for financial institutions.
Altcoin Purpose US$ Value Market Capitalization
Ethereum Distributed Computing Platform $270 $27 Billion
for Smart Contracts
Ripple RTGS (Real Time Gross $0.26 $10 Billion
Settlement)
Bitcoin Cash Increase efficiency of Bitcoin $500 $9 Billion
Cardano Strike a balance between privacy $0.09 $3 Billion
and regulatory compliance and
host smart contracts
Litecoin Faster transaction time, less $51 $2 Billion
computing powerICO (Initial Coin Oferring) is similar to an IPO where the objective is raising funds for a specific business case or a purpose. Investors from anywhere with a bank account or a credit card can take part in an ICO Documented ICOs have manage to raise over $6 Billion for projects as diverse as Cloud Based File Storage, ERP and Farming and Distribution of Cannabis.
• No dilution of equity
No shares issued
• Not debt
No interest
• Ability to reach investors around the world
Funds raised via ICO In 2018 – US$ 7 Billion
• Faster execution compared to IPO
Can be completed in 3-4 months
• Investor Returns
As decided by the promoterhttps://elementus.io/token-sales-history
Prominent ICOs
Envion – Offgrid
Travel Block – Blockchain Mining FTV Coin –
Blockchain Based Cryptocurrency for the
Holiday Booking Raised US$ 100
Fashion Community for
Solution Million within 30 days
Lifestyle and glamour.
from December 2017
Raised US$ 25 Million to January 2018 Has raised around 60M
from June to July 2018. Euro between May 2018
Entirely concept based Based in
to July 2018. Token price
with no physical assets Germany/Switzerland
is increased from 1.10
in place. Euro to 2.20 Euro during
Based in UK/USA the ICO. Based in FranceSimple answer is “Absolutely Not”. Bitcoin does not have any feature that is to identify a Pyramid Scheme. Basic feature of a Pyramid scheme is “Rewards based introductions” Bitcoin and other cryptocurrencies sustain and value position themselves based on supply and demand. It would appreciate when there is demand and oversupply will deflate the market.
• Mining • Exchanges • ICO
2017 Exchange Control Act has relaxed much of the restriction that was in place when it comes to foreign investments. An individual is allowed to invest US$ 250,000 in total during lifetime as foreign investments. A corporate is allowed between US$500,000 to US$2,000,000 per annum. Investments are allowed to be in the form of Shares, Units, Debt, Securities and Bonds. It would be interesting to see how Cryptocurrency and ICO investments are categorized. The Act speaks of “Digital Currency” however it is unclear how this is defined. Central Bank has appointed a committee to evaluate Cryptocurrency adoption in Sri Lanka.
Sri Lanka being listed in EU Money Laundering list is a problem in general in the financial industry. However, with careful planning, Cryptocurrency can be used to bypass this temporary blockade.
Government Sector An ideal Blockchain implementation would be project approval process and building approval project which involves numerous agencies and approvals. For example, in the case of Building Approval, agencies involved include Local Authority, Municipality, Utility, RDA, Tax, Banks Another example would be the Courts system where interaction with many agencies is a must and integrity and authenticity of documents is paramount. Most of government process involve participation of many agencies spread across the country in order to finalize a process. This makes it ideal for a Blockchain implementation. Single such implementation can drastically increase efficiency of government and provide a fast service to the public.
commercial development
Example process for a
Inland Revenue
such as a Hotel.
Excise Department
Tourist Board
CoC
Building Approval Process
Health Inspection
Utilities
Local Revenue Col.
Building Plan Approval
Architect
Non Vesting
Street Lines
Bank
Block plan approval
Ownership TransferThank You! Champike Munasinghe Founder/CEO Bitcoin Pvt. Ltd. Foudner/CEO Cryptofinity Ltd. Colombo, Sri Lank champike@hotmail.com +94 71 411 4348 www.cryptofinity.io
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