Lecture Blockchain

2. LectureBlockchain Jan H Jansen E-mail: jan.jansen@han.nl

3. Knowledge Distribution Centres Logistics Dutch National Centre of Expertise on Logistics Based on 6 Universities of Applied Science with Logistics Research Departments, resulting in 6 Knowledge Distribution Centres across the Netherlands: • North Holland • North East Netherlands • Rotterdam area • Gelderland • Zeeland / North Brabant • Limburg North Holland North East Netherlands Rotterdam area Gelderland Zeeland North Brabant Limburg

4. Main Themes Knowledge Distribution Centre on Logistics gelderland Healthcare Logistics Transport and Distribution of Fast Moving Consumer Goods Training, tools Training, tools Long term goal: Innovative SCM in Logistics Business Practice Fashion Community of Practice Sustainable Transport Community of Practice Freight Health Care Logistics Community of Practice Future: Patient Logistics Community of Practice Up-to-date qualificationsforlabour market research applied Future: Food Community of Practice Goal: Effectiveknowledgetransfer tostudents research applied

5. Source: https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv Date: 13 Dec 2017

6. Source: https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv Date: 13 Dec 2017

7. Twomonths later: Source: https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv Date: 16 Febraury 2018

8. How will Bitcoin prices behave? • Fundamental analysis • Technical analysis

9. Fundamental analysis: What determines the value of a Bitcoin / Cryptocurrency • Relative scarcity • Supply factors • Demand factors • Risk factors • Behavioural factors (FOMO) • Cost factors • ….

10. Pricing of Bitcoins with a fixed supply (BTC 16.8 mln)

11. Technical Analysis Bitcoin (Source: https://cointelegraph.com/news/price-analysis-dec-26-bitcoin-ethereum-bitcoin-cash-ripple-iota-litecoin-dash, 27-12-2017)

12. Bit Coin Data (https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv, Date: 13 Dec 2017)

13. Bit Coin Data (https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv, Date: 13 Dec 2017) Relative change?

14. Bit Coin Data (https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv, Date: 13 Dec 2017) Relative change of 4714.8%

15. Bit Coin Data (https://bitcoincharts.com/charts/bitstampUSD#rg1460ztgCzm1g10zm2g25zi2gROCzcv, Date: 13 Dec 2017) Relative change of: 4814.80 = 100 * (1+p/100)^6 = 90.73%

16. Bit Coin Markets • Spot market • Future market • Sunday 10 December 2017: The Chicago Board Options Exchange launchedfuturestradingforbitcoin • Functions: • Speculation • Arbitrage • Hedging

17. Bitcoin spot markets (±80) (Source: https://bitcoincharts.com/markets/ 18-12-2017))

18. Bitcoin the new (supranational) money?> Bancor (Keynes, 1944, Bretton Woods conference)> Numéraire (Walras, 1874, Elements of pure economics) Money • Coins • Banknotes • Demand deposits • Digital money (Bitcoins) Money functions: • Medium of exchange • Measure of value • Store of value • Transactions motive • Precautionary motive • Speculative motive

19. Some YouTube videos • https://www.youtube.com/watch?v=IMJmd_tNhlM • https://www.youtube.com/watch?v=a8SDnI3fNl0 • https://www.youtube.com/watch?v=1sOC_1DPtrc • https://www.youtube.com/watch?v=EVLdWu8j-Lg (partly in Dutch)

20. What are futures? Futurescontractsallowinvestorstoagreetobuy a certainamount of a commodity, bond or share at a specificprice at a designated time in thefuture, hencethe name. It means investorscan bet on whethertheybelieve a particular commodity – in this case bitcoin – willrise or fallby a specifiedfuture date. They are generallyused in commodity marketstohedgeagainst major fluctuations in prices, such as unexpectedweatherconditionshittingcrops. But they are also well established in equitymarkets, withtrading on individual companies and indices such as the FTSE 100 and S&P 500. There are risks, mainlywheninvestorsusedebttofinancetheirfuturesspeculation andtheir bet goesthe wrong way. Source: www.theguardian.com

21. Cboe XBT Bitcoin Futures Trading Data(Source: http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures, 13 December 2017)

22. Cboe XBT Bitcoin Futures Bitcoin futures are now available for trading on the Cboe Futures Exchange, LLC (CFE). CFE launched trading in Cboe bitcoin futures on December 10 under the ticker symbol "XBT" (contract specifications | fact sheet.) This brings many benefits to traders, including transparency, efficient price discovery, deep liquidity and centralized clearing. XBTSM futures provides a centralized marketplace for participants to trade based on their view of bitcoin prices, gain exposure to bitcoin prices or hedge their existing bitcoin positions. (Source: http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures, 13 December 2017)

23. Cboe XBT Bitcoin Futures (Source: http://cfe.cboe.com/cfe-products/xbt-cboe-bitcoin-futures, 13 December 2017)

25. Integrated reporting model (The IIRC, 2017)

26. Bitcoin Exchanges & Wallet (Source: bitcoin.com)

27. Risks • No central bank involved to secure the value • Price volatility (what / who is determing the value in terms of $ or €?) • Security of the IT system • Cyber attacks • Behavioural finance • Fear Of Missing Out (FOMO) • Illegal activities • Gambling • Drugs • Dark room (of the internet) • Etc

28. Blockchain

30. A blockchain, originally block chain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data.By design, blockchains are inherently resistant to modification of the data. Harvard Business Review defines it as "an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way." For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority. Source: https://en.wikipedia.org/wiki/Blockchain

31. Source: http://www.blockchain-lab.org/#publications

32. Hash code • Example: 6b1f6fde5ae60b2fe1bfe50677434c88 Source:https://en.wikipedia.org/wiki/Blockchain#/media/File:Bitcoin_Block_Data.svg

33. General ledger of company X (focal company) Liabilities Assets Accounts payable (A/P) Link to supplier Y Cash Accounts receivable (A/R) Link to customer Z

34. General ledger of company Z (customer) Liabilities Assets Accounts payable (A/P) Link to supplier X Cash Accounts receivable (A/R) Link to customer …

35. General ledger of company Y (supplier) Liabilities Assets Accounts payable (A/P) Link to supplier … Cash Accounts receivable (A/R) Link to customer X

37. A basic pattern of thesupply chain Company Y (supplier) Company X (focal company) Company Z (customer) Goods Services Information Money

38. Knowledge Distribution Centres Logistics Dutch National Centre of Expertise on Logistics Based on 6 Universities of Applied Science with Logistics Research Departments, resulting in 6 Knowledge Distribution Centres across the Netherlands: • North Holland • North East Netherlands • Rotterdam area • Gelderland • Zeeland / North Brabant • Limburg North Holland North East Netherlands Rotterdam area Gelderland Zeeland North Brabant Limburg

39. Main Themes Knowledge Distribution Centre on Logistics gelderland Healthcare Logistics Transport and Distribution of Fast Moving Consumer Goods Training, tools Training, tools Long term goal: Innovative SCM in Logistics Business Practice Fashion Community of Practice Sustainable Transport Community of Practice Freight Health Care Logistics Community of Practice Future: Patient Logistics Community of Practice Up-to-date qualificationsforlabour market research applied Future: Food Community of Practice Goal: Effectiveknowledgetransfer tostudents research applied