May 2015 Memphis presentation. Overview of the Blockchain and likely application in the sales and trading world.

1. The Blockchain
Memphis Meeting, May 2015

2. About Us

3. 19 years Ago – (The Internet Epoch)
Idealab Capital Partners Was
an Early Stage VC Fund
10
Idealab Is a “Business”
Designed To Create
Businesses

4. 3
More than 125 companies

5. • Helped the companies raise more than $3.5B
• Completed 45 successful exits (IPO’s and
acquisitions) including Companies with more than
$1B exits
• Experienced 50 failures
• Created more than 10,000 jobs
• 43 current operating companies
While Idealab Capital Partners was a Top Rated VC Fund
Over The Last 19 Years, Idealab Has:
2A

6. About once Every 20 Years …
PERMISSIONLESS INNOVATION
6(b)

7. Bitcoin and The Blockchain

8. You Probably Seen Bitcoin Price $:BTC
Down 45% over the last year
$0
$200
$400
$600
$800
$1,000
$1,200
Dec ‘13 Dec ‘14

9. Meanwhile New Headlines
Goldman backs $50 Million fundraising by
payments company Circle
6

10. And Even More This Week!
6(b)

11. Traditional Centralized Networks
Alice
Centralized
Trusted Counterparties
Proprietary – Requires
Permission to build on it
Gate Keepers
Extract Tolls
Bob
7
CENTRAL
NETWORK

12. The Blockchain is Decentralized
Alice
Peer to Peer
(No Central Authority)
Cryptographically Secure
Consensus Ledger (Blockchain) Algorithm
based
Open Source
(Allows Permission less Innovation)
BLOCKCHAIN
PROTOCOL IS
EXTENSIBLE TO
VIRTUALLY ANY
ASSET
Value
Bob

13. Bitcoin Is More Than Digital Money
It’s the BLOCKCHAIN Technology
NetworkHardware ”Mining”
Blockchain
BTC App App
Blockchain
Hardware
OS Software
App App App
Tech Stacks (Oversimplified)

14. Key Tech of the Blockchain
Peer to Peer
(no central authority)
Public key
cryptography
Triple entry public ledger
with proof of work
(no central authority)
Open Source
Software

15. • Application of the Blockchain to become immutable record
of trades between counter parties
• Development of private Blockchains by trading and banking
participants to provide privacy of transactions and assured
control over IT
• Use of Blockchains for clearing and settling transactions.
Initially this will be for new products / non-exchange
securities as well as pilot tests for DTC settled trades
THE BLOCKCHAIN IS A COMING!
Look For the Following
2A

16. 10 Blockchain Startups

17. Digital Wallet &
Exchange
12

18. Remittances –
Money transfer to Africa
in Bitcoins
13

19. Peer-to-Peer ATM and
Money Transfer
14

20. Global Commerce
Payments Without
Wire Fees
15

21. Micropayments &
Tipping
16

22. Open-source Identity
Protocol
17

23. Securing Records Real-time
On the Blockchain
18

24. Decentralized
Prediction Market
19

25. Stealth Start Up
20

26. Stealth Startup
21 Inc (IoT?)
21

27. BILL GROSS
Managing Director, DDF
TOM MCGOVERN
Managing Director, DDF