1. Rechtsanwältin – Germany Attorney at Law – New York
Blockchain, Cryptocurrency, ICOs
Opportunity and Challenges
STEP Europe, Luxembourg, October 2018
Dr. Judith Taic
LLM Taxation (NYU), TEP
Rechtsanwältin – Germany
Attorney at Law – New York
Advocate – Tel Aviv

2. Overview Blockchain Bitcoin Ethereum/Smart Contracts
Initial Coin Offerings (ICOs)
Other Applications of Blockchain
Blockchain requires trust too…

3. What is Blockchain?

4. BLOCKCHAIN

5. Blockchain: A secure, distributed database of transaction
Definition: Distributed digital ledger of cryptographically signed transactions that are grouped into blocks. Each block is cryptographically linked to the previous one after validation and undergoing a consensus decision. New blocks are replicated across all copies of the ledger within the network.

6. Validation of transaction

7. Decentralization Blockchain – Decentralized Ledger Technology (DLT)
Banks
Registry
Lawyer
Agent
Broker
Blockchain – Decentralized Ledger Technology (DLT)
“Trust” established by Computer Code not through Middleman

8. Immutability-(unchangeable)
Data Protection Regulations?

9. What is Bitcoin? What are Virtual Currencies?

10. Satoshi Nakamoto 2008 Bitcoin BITCOIN – Virtual Currencies
peer to peer payment systems
secure
anonymous
electronic way without physical transfer
without a central body controlling the currency
Bitcoin

11. Bitcoin as a means of payment – peer to peer payment system
BITCOIN – Virtual Currencies
Bitcoin as a means of payment – peer to peer payment system
First transaction recorded 2010, purchase of 2 pizzas for 10,000 Bitcoins ( $ 24 )
Bitcoin Blockchain- prevention of double spending (cheating)
Mainly used for speculation

12. Storing of Bitcoin Digital wallet – private key
BITCOIN – Virtual Currencies
Storing of Bitcoin
Digital wallet – private key

13. Anonymity Pseudo- anonymous Challenge for Anti Money Laundering
BITCOIN – Virtual Currencies
Anonymity
Pseudo- anonymous
Challenge for Anti Money Laundering

14. No Government Involvement
BITCOIN – Virtual Currencies
No Government Involvement
Certain degree of government involvement desirable
Main Legal Aspects
Securities Law
Anti Money Laundering
Payment Regulations
Consumer Protection
Accounting and Taxation

15. Technical Challenges Electricity Usage Scalability
BITCOIN – Virtual Currencies
Technical Challenges
Electricity Usage
Scalability
Visa: 56,000 Transaction per second- Bitcoin: 7 transaction per second

16. Bitcoin has been the first, but maybe only a stepping stone……..
BITCOIN – Virtual Currencies
Source of value
Bitcoin has been the first, but maybe only a stepping stone……..

17. What is Ethereum? Creation of smart contacts Cryptocurrency is Ether
Ethereum - Smart Contracts
What is Ethereum?
Creation of smart contacts
Cryptocurrency is Ether

18. What are smart contracts?
Ethereum - Smart Contracts
What are smart contracts?
Smart contract is an executable code deployed to a blockchain such that future transactions can send data to it, and the contract will execute automatically to perform a service
Completely digital and recorded in computer language
No intermediary – the smart contract acts as trusted party
Accuracy
Fast and cheap execution as a consequence of automation
Immutable

19. What are ICOs, ITO, TGE? Ethereum and Smart contracts
Initial Coin Offerings (ICO), Initial Token Offering (ITO), Token Generation Event (TGE)
What are ICOs, ITO, TGE?
Ethereum and Smart contracts
The Event where a new token (or coin) is created (TGE)
Based on the White Paper

20. Initial Coin Offerings (ICO), Initial Token Offering (ITO), Token Generation Event (TGE)
Types of tokens
Transactional Coins
Used as means of payment or exchange for other cryptocurrency or fiat currency
Security Token
Grant ownership rights in a specific undertaking, offer profit sharing opportunities
Utility Token
Grant rights to purchse goods or services, right to access a certain platform , rights to use a certain software

21. ICO Rush ICO – New financing tool
Initial Coin Offerings (ICO), Initial Token Offering (ITO), Token Generation Event (TGE)
ICO Rush
ICO – New financing tool
$ 4 Billions were raised in 2017 and ~ $ 18 Billions so far in 2018
So far regulatory framework globally unsettled

22. Other Applications of Blockchain
Application in various businesses and industries, such as Financial Service Industry, Insurance Industry, Healthcare, Politics/Voting, Supply Chain Logistics, Charity and Aid Organizations
Compliance

23. Cut out intermediaries Reduce costs Increase speed
BLOCKCHAIN
Blockchain…….
Cut out intermediaries
Reduce costs
Increase speed
Increase transparency
Increase traceability

24. Blockchain requires trust too….

25. Rechtsanwältin – Germany Attorney at Law – New York
Thank You
Dr. Judith Taic
LLM Taxation (NYU), TEP
Rechtsanwältin – Germany
Attorney at Law – New York
Advocate – Tel Aviv

26. Sources
Slide 1-
Slide 3-
Slide 6-
Slide 7-
Slide 8-
Slide 9- ( Bloomberg—Bloomberg via Getty Images)
Slide 11-
Slide 13-
Slide 16-
Slide 17-
Slide
Slide 21-
Slide 24-