Wall Street Firms to Move Trillions to Blockchains in 2018 | IEEE Spectrum

Wall Street Firms to Move Trillions to Blockchains in 2018; Amy Nordrum; In IEEE Spectrum; 2017-09-29.
Teaser: The finance industry is eagerly adopting the blockchain, a technology that early fans hoped would obliterate the finance industry

tl;dr → Depository Trust and Clearing Corporation (DTCC) will trial something with a blockchain in the title.



The Old Money Managers


The New Money Managers



  • Consensus 2017, the booster conference
  • Hype Cycle, Gartner Group.
    The metaphor of the Trough of Disillusionment of underdamped an control system, comprehending the social process of the diffusion of innovation.


The Boosterists

The Products


  • The canon is recited
  • Depository Trust and Clearing Corporation (DTCC)
  • permissioned blockchain
  • Hyperledger
  • J.P. Morgan
  • Axoni
  • Axcore
  • Consensus, a conference
  • Bloomberg
  • Thompson Reuters
  • Chain
  • IBM
  • Microsoft
  • Goldman Sachs
  • DApps
  • Go, a programming language
  • Hyperledger Fabric
  • Ethereum
  • public chain
  • Citibank
  • Proof of Concept (PoC)
    Proof of Work (PoW)
    Proof of Stake (PoS)
  • Enterprise Ethereum Alliance
  • World Economic Forum, (WEF)
  • Guernsey
  • Unigestion
  • Goldman Sachs
  • Northern Trust
  • R3
  • Corda


“Satoshi Nakamoto,” The Prophet.
An archetype figure: a Santa Claus or Moses or even a Jesus-type figure. “He” came, gave us a gift (and behold! it was perfect in every way!); upon the Redemption, he was Assumed and thus disappeared. No one is sure who “he” was or if “he” really existed. Whether “he” existed at all is not important to those of The Faith. “He” has no childhood friends or contemporaries who knew “him.” All we have are “his” writings, enshrined in the Wayback Machine and conspiracy theory discussion forums. Maybe “he” really was from The Future; maybe “he” really was sent by our descendants to prevent a Greater Evil, as was foretold in multi-part Hollywood hit movie, The Terminator. Maybe The Blockchain is itself “The Skynet” as was prophesied. No one knows. But, HURRY, INVEST NOW!


For color, background & verisimilitude…



In IEEE Spectrum

Previously filled.

The Marketer’s Guide To Blockchain | AdExchanger

The Marketer’s Guide To Blockchain; ; In AdExchanger; 2017-07-06.


  • IBM
  • Comcast
  • MadHive
  • Rebel AI


AdLedger Consortium

  • IBM,, anchor
  • Integral Ad Science, trading
  • MadHive, a boutique
  • TEGNA, subsidiary of Premion, a DSP for OTT

Scope: unclear


  • Comcast
  • Altice USA
  • Cox
  • NBCUniversal
  • Disney

Scope: data share contracts, record transactions in blockchain.
Story: <quote>
a vetted, trusted media buyer could execute a campaign against segments provided by members of the Comcast consortium</quote>

Scope: sells guarantee contracts as futures; not live inventory.

  • TV ad buying
  • multiple stakeholders
  • multi-party contracts
Interactive Advertising Bureau (IAB)
“in an exploratory phase”, attributed to Allana Gompert.


All future tense. Very aspirational. Many qualifiers.

Qualifiers: Still forming, working group, will dictate policy, will dictate API specifications.
Qualifiers: Not until 2018 [e-o-2018] is “2019,” think: ~600 days
Qualifiers: is developing, proofs of concept, beta partners.


  • <quote>securely share their assets without exporting or handing them over to another stakeholder </quote>
  • <quote>And media owners can strike a blow against unauthorized sellers and domain spoofers. </quote>
  • <quote>[remove out unwanted supply chain intermediaries </quote>


  • Use [unique] blockchain keys instead of gimmicky [URL] names
  • Use blockchain <snip/> to log transactions, recording the use of “data”consumer dossiers.


  • <paraphrase>[As] Comcast and Cox, [I have] different inventory rates for specific content or audiences, or [as a] buyer [I] wants to blacklist certain supply sources, <snip> each company’s smart contract and dictates how others on the blockchain can access its data. <paraphrase>
  • <paraphrase>[As an] advertiser [I] could lock up inventory over the long term and publishers could score bigger upfront deals or offer different types of discounts. And in this instance, blockchain would serve as the ledger recording all of these transactions – and their value. </paraphrase>


  • Slow
  • Does. Not. Scale.
  • Ill-posed
    • The media business wants transparency.
    • The media business requires opacity.
  • AppNexus
  • DoubleClick Ad Exchange


  • Ken Brook, CEO, MetaX, a boutique
  • Peter Guglielmino, CTO, IBM’s Media & Entertainment Group.
  • Alanna Gombert, general manager of the IAB Tech Lab.
  • Adam Helfgott, founder, MadHive, a boutique
  • Will Luttrell, Curren-C, a boutique; co-founder, ex-former CTO, Integral Ad Science
  • Manny Puentes, CEO, Rebel AI, a boutique
  • Lou Severine, CEO, NYIAX CEO


  • government-backed legal tender
  • secured bank vaults,
  • bitcoin
  • blockchain ledger
  • guarantee security
  • full transparency
  • smart contracts


In Ad Exchanger


AdLedger Consortium, in data trading around OTT
Rebel AI
Something about “hoping to develop”, something about brand safety & ad fraud
On-(block-)chain and off-chain solutions. adChain, a protocol on Ethereum. with Direct Marketing Association Data & Marketing Association (DMA)
“like legacy data players” Acxiom and Experian; Blockchain Insights Platform; not before 2019.
Is NASDAQ’s proprietary blockchain; a futures recordation scheme, against The Upfronts. Among ex-AOL VP-levels, Bill Wise, founder and CEO, Mediaocean, is a board member
Bluemix, a services suite, cloud-blockchain frontrunner. Something about having deep pockets, being able to incur long periods of R&D costs, hoping to recoup on IBM services in other domains, e.g. healthcare and finance.
A boutique.

Previously filled.

The resolution of the Bitcoin experiment | Mike Hearn

Mike Hearn; The resolution of the Bitcoin experiment; On Medium; 2016-01-14.

tl;dr → 4500 words. The Bitcoin culture is & was corrupt.  Now it is failing.  The technology “doesn’t scale” anyway. The long con is folding up.  Mike Hearn exits, stage left.


  • age, 31,
  • R3
    • <quote ref=”NYT“>currently “on salary,” Andreessen Horowitz; towards Bitcoin development</quote>
    • <quote ref=”NYT“>R3, is developing Bitcoin-like networks for banks to enable cheaper and faster ways to trade assets of all sorts. The start-up aims to take advantage of the less-centralized record-keeping methods of Bitcoin, but still allow for someone to be in charge, to handle the software and to manage access to the system.</quote>
  • ex-Google, Google aps
  • degree? Durham University, England
  • grew up in Manchester, England,


<quote ref=”Mike Hearn“>

Think about it. If you had never heard about Bitcoin before, would you care about a payments network that:

  • Couldn’t move your existing money
  • Had wildly unpredictable fees that were high and rising fast
  • Allowed buyers to take back payments they’d made after walking out of shops, by simply pressing a button (if you aren’t aware of this “feature” that’s because Bitcoin was only just changed to allow it)
  • Is suffering large backlogs and flaky payments
    • … which is controlled by China
    • … and in which the companies and people building it were in open civil war?

I’m going to hazard a guess that the answer is no.


<quote ref=”ProHashing“>

Some customers contacted Chris earlier today asking why our bitcoin payouts didn’t execute …
The issue is that it’s now officially impossible to depend upon the bitcoin network anymore to know when or if your payment will be transacted, because the congestion is so bad that even minor spikes in volume create dramatic changes in network conditions. To whom is it acceptable that one could wait either 60 minutes or 14 hours, chosen at random?

It’s ludicrous that people are actually writing posts on reddit claiming that there is no crisis. People were criticizing my post yesterday on the grounds that I somehow overstated the seriousness of the situation. Do these people actually use the bitcoin network to send money everyday?


  • Bitcoin
  • Developers
    • a.k.a. The Good Guys, who support the block size increase, Bitcoin XT
    • The Bad Guys, who do not support the block size increase, Bitcoin Core
    • The Fantastic Guys
      • Satoshi Nakamura
        The Ghost of Christmas Past, The Shower of The Way, The Savior & The Man Who Never Was
  • Bitcoin Core
    The software that you have to run to participate.

    • contra Bitcoin XT
    • Bitcoin Core v0.12
      • transactions are reversible
      • transaction fees can be added after the transaction is recorded.
      • transaction clearing fees; <quote>higher than credit cards<quote>
  • Bitcoin XT
    • achieved 15% adoption
    • contra Bitcoin Core
  • Factoid
    • Mining blocks is paid 25 BTC ~ $11,000 USD
    • Conversion rates (various days)
      • ₿1 BTC = $325 USD
      • ₿1 BTC = $440 USD
  • Coinbase
  • Governance, Community Processes
  • Componentry
    • libconsensus
    • Bitcoin Core
    • “the node software”
    • The Bitcoin Consensus
  • Attacks
    • Bitkiller
      • “a hacker”
      • Russie
    • <quote>entire datacenters were disconnected from the internet until the single XT node inside them was stopped. About a third of the nodes were attacked and removed from the internet in this way.</quote>
  • Promotions
    a.k.a. <quote>The Bogus Conferences</quote>

  • Scandals
    • Mt. Gox
    • other embezzlement and pump & dump scams.
  • Alternative Bitcoin
    • Bitcoin XT (Mike Hearn & ilk)
    • Bitcoin classic
    • Bitcoin Unlimited


  • Satoshi Nakamoto created Bitcoin, then disappeared [not died, killed, or disavowed, but he disappeared; c.f. indeed, the Monomyth]


  • <quote>When Satoshi left, </quote>


  • bitcoin.org
  • linuxfoundation.org


  • 2015-12 → Scaling Bitcoin, Hong Kong
  • 2015-08 → Scaling Bitcoin, Montreal
  • 2015-08 <quote><snip/> due to severe mismanagement, the “Bitcoin Core” project that maintains the program that runs the peer-to-peer network wasn’t going to release a version that raised the block size limit.</quote>
  • 2015-05 → Gavin Maxwell begins arguing against raising the limit, in his blog; c.f. , Time to Roll Out Bigger Blocks


Mike Hearn, using the self-asserted identity token @octskyward, on Medium.


In order of appearance, duplicates removed & some sources coalesced.


Exhibit: A graph of the timeline 2014-10-01 → 2016-01-01

  • yellow, right → bytes, block sizes
  • blue, left → XBT, transaction value

Exhibition: 95% of bitcoin mining capacity is <quote>a handful of guys sitting on a single stage</quote>. in Hong Kong, at Scaling Bitcoin, 2015-12-06.

Source: Gavin Andresen, New York Times (NYT)