Introduction Business or company valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. Valuation is used by financial market participants to determine the price they are willing to pay or receive for an interest in the company or business. The rapid advancement in Blockchain technology opens a host of possibilities to build a comprehensive ﬁnancial services ecosystem in an open and transparent manner. Tapping into this technology, iP2PGlobal aims to introduce a global solution to provide aﬀordable and accessible ﬁnancing to borrowers and attractive risk-adjusted returns to lenders. iP2PGlobal plans to develop a peer-to-peer (“P2P”) ﬁnancing platform using smart contracts and blockchain technology called iP2PGlobal Personal Financing Platform. This Platform will bring together borrowers and lenders from all over the world and connects them on a single platform in a trusted, fast and easy manner. In this review we look at the key components of the iP2PGlobal Personal Financing Platform and the people behind the company to determine the company’s capabilities and capacity to weather the challenges of delivering its project, developing its business and in doing so hopefully provide some market guidance to investors and partners on a fair valuation of the TWQ Token. PEOPLE A. Management team Rashdan Ibrahim - Chief Executive Officer Rashdan has over 24 years of working & entrepreneurial experience, he has worked with household names like Petronas, Deutsche Bank, & Arab Real Estate Co. KSC, throughout South East Asia & the Middle East. Muhammad Radzi - Chief Operating Officer Radzi has over 27 years work and management experience in the consumer finance and factoring finance industries, he was also the co-founder of two Shariah-compliant factoring companies in Malaysia. Afdha Yusof - Chief Marketing Officer Afdha Yusof has over 15 years of experience in Human Resource and Talent Acquisition in some of the top MNC companies in Southeast Asia and Middle East. Derek Lee - Head of Business Development With over 31 years of working experience in banking treasury and factoring financing. He has worked with household names like DBS, Citibank & Deutsche Bank. Azli Noor - Head of Legal & Compliance Trained as a lawyer, Azli has over 25 years working experience of which 17 years was in investment banking and trusts industries. James Loy - Head of Credit Risk Management James has over 22 years of working experience of which 15 years was as an investment banker in one of the largest banks in Malaysia. ASSESSMENT: The management team of iP2PGlobal are predominantly from the banking and finance sector. A closer look at the key managers reveal that they are seasoned professionals in their fields with established track records in conventional banking and finance both in the debt capital and equity markets. The project that they are currently pursuing represents only a small taste of what the management team has experienced and is most likely capable of undertaking. It is quite likely that the team will be looking into migrating other financial products and solutions from the conventional market to the blockchain in the near future. This bodes well for the TWQ Token as its function as a utility token will not be limited to the Crypto Loan product but be expanded into other products and solutions which will invariably increase the demand for the TWQ token and thus apply upward pressure on the TWQ token price in the market. Unlike many projects that have come into the ICO/IEO market, iP2PGlobal has real people with qualifications, expertise, and experience in the field relevant to developing the P2P Loan Platform of this project. For new entrants and people from the conventional financial services sector who are just discovering the blockchain and crypto, it may provide some comfort to these new participants to see seasoned conventional financial professionals who have migrated to the crypto world ahead of them. It is encouraging and builds on the credibility as well as sends a signal to the conventional financial services sector that the blockchain and crypto is something they should not ignore. B. Advisors Dr Ahcene Lahsasna Currently the CEO of Salihin Advisory & he also sits in the shariah advisory committee for Standard Chartered Saadiq Bank & Re-takaful. Dr Ahcene has authored more than 20 books and is the recipient of the Global Business Leadership Award in Islamic Finance in 2017 & 2019. Azzizi Mohamad Ghazi Having a long Treasury experience with the largest bank in Malaysia, Maybank and with government owned Valuecap. Azzizi is a co-founder & Managing Director of AbleAce Raakin. He is a member of the Financial Market Association of Malaysia. Azaraie Mohamad Ghazi A chemist by profession, Azaraie co-founded AbleAce Malaysia in 1997. He was part of the group that co-founded AbleAce Raakin in 2006. He is a member of Malaysian Oil Scientists’ and Technologists’ Association (MOSTA). Scott Phillips With more than 25 years’ industry experience, Scott is Co-Creator of Smooth Retirement™. He has worked in various senior roles at Westpac, StatePlus (formerly State Super Financial Services (SSFS)), Bank SA, NEO Financial Solutions and Commonwealth Bank. Azmin Hassan With more than 18 years’ experience in banking, venture capital and private equity, Azmin has amassed various experiences in the oil & gas, general aviation, wireless infrastructure and real estate industry. He is the founding member of Qyrin Petroleum Technology. Abdul Rahman Ibrahim A computer science major, Abdul Rahman has worked in the animation and telecommunication industries household names such as Rhythm & Hues, Anima Vitae and Xoxzo (Japan). ASSESSMENT: iP2P Global has clearly stated that it will collaborate and work with partners who are subject matter experts (SME) in key areas where the management team believes it should leverage the best available technologies and practices in the market. There is no sense in reinventing the wheel when someone else has already established market acceptance and dominance. Additionally, for the iP2PGlobal Personal Financing Platform, being a Sharia compliant product and solution there are clear rules, regulation and requirements that need to be fulfilled in order to be properly recognized as Sharia compliant. As such, several members of the Advisory board are licensed and accredited by the relevant regulatory bodies responsible for Sharia compliance. The other Advisors on the board on the other hand come from industry and provide valuable experience and insights from outside the crypto market that could inject some real-life and real-world lessons learnt from various industry sectors. These Advisors serve as a check-and-balance to the management team and the TWQ project which will potentially improve the market acceptance and applicability of the TWQ project and other financial products and solutions which will be developed by iP2Pglobal following the successful delivery of the Crypto Loan platform. Besides providing oversight and industry input, the Advisors certainly will be involved in new product and solutions conceptualization which will ensure a steady pipeline of new crypto based financial products and solutions that will utilize the TWQ token. The board of Advisors of iP2Pglobal have a balanced mix of subject matter experts who should enhance the already strong team behind the project. C. Partners AbleAce Raakin Sdn. Bhd.: Commodity Murabahah Provider Salihin Shariah Advisory Sdn. Bhd.: Shariah Adviser ASSESSMENT: Ableace Raakin is the Global Islamic Finance Award winner for the Best Shariah-compliant Commodity Brokers in 2017. They are also a member of the International Islamic Financial Market (IIFM). The IIFM was formed under Royal Decree No. (23) Dated 2002 of the Kingdom of Bahrain as a neutral and non-profit infrastructure development organization. IIFM is hosted by the Central Bank of Bahrain in Manama. The founding members of IIFM are the Islamic Development Bank, Autoriti Monetari Brunei Darussalam (formerly Ministry of Finance Brunei Darussalam), Bank Indonesia, Bank Negara Malaysia (delegated to Labuan Financial Services Authority), Central Bank of Bahrain (formerly Bahrain Monetary Agency) and the Central Bank of Sudan. Salihin group offers an integrated and yet wide spectrum of professional services in the areas of auditing and assurance, taxation, business advisory and corporate finance. Salihin has over 70 professionals serving international clients globally. With a formidable pool of competent and experienced professionals they strive to consistently provide high value and high-quality end-to-end services to clients without compromising its integrity. Through insight and foresight, its professionals shape, revive, redirect and set the pace to leverage complexity and dynamism for clients’ sustainable business vitality, viability, profitability, and growth. iP2PGlobal has partnered with AbleAce Raakin and Salihin to provide Commodity Murabahah and Sharia compliance advisory. This is a clear indication of iP2PGlobals’ seriousness and commitment to providing bona fide Sharia compliant products and solutions to the market and to Muslims worldwide. We have seen a few blockchain projects bandying Sharia products and solutions to investors, but ultimately most if not all did not provide any proof or clear framework for Sharia compliance. In the case of the TWQ, investors especially Muslims can be assured that the platform and the crypto loans are structured to comply with Sharia precepts. 2. PRODUCT & TECHNOLOGY The ﬁnancing products oﬀered over the platform is based on Sharia ﬁnance principles. Sharia ﬁnance principles mean prohibition of interest and usury, steering clear of uncertainty-based transaction, avoiding gambling and avoiding investments in the production and selling of impure goods and goods of no use or no value. Sharia ﬁnance principles also relates closely to the concept of ‘Ethical Finance’ that emphasise the values of fairness, equality and morality in ﬁnance. Three ﬁnancing products, an unsecured and a secured personal ﬁnancing products based on Tawarruq contracts and a gold pawnbroking product based on Ar Rahnu contract will initially be oﬀered. In the future, iP2PGlobal aims to add other ﬁnancing products based on other Sharia ﬁnancing contracts, such as Ijarah (leasing) and Musharakah (profit sharing) amongst others. The TWQ is an ERC20 token that confer the right to the token holder to submit an application for a personal ﬁnancing based on a Commodity Tawarruq Trading program through the iP2PGlobal platform and have it listed in the platform for prospective lenders to view and choose to ﬁnance. The TWQ Token is a pure utility token and does / will not provide any other rights and functions to its holders. The medium of ﬁnancing in the iP2PGlobal Platform will be in stable coins that pegged its value to ﬂat currency. In its initial stage, the platform will be using PAX, TUSD and USDT in the future more stable coins will be accepted as the medium of ﬁnancing in the platform. ASSESSMENT: The TWQ project is built on a marriage of blockchain technology and peer-to-peer technologies, both of which are experiencing high growth and adoption in today’s digital world. Add to this the untapped and unfulfilled demand for Sharia compliant products and solutions not just in the crypto space but also in the conventional market, what we have in the iP2PGlobal platform is potentially an explosive or high growth business. The management team it appears has done a thorough study of the financial services market and the attempts by others to penetrate and introduce Sharia based products and solutions to the crypto market. Many have tried a blanket or shotgun approach hoping to capture overnight a piece of the Sharia market with a population of 2.18 billion Muslims worldwide. The evidence however seems to show that this strategy is ineffective and prone to many shortcomings. There are many critical issues which need close attention by project and solutions developers and providers in order to successfully encourage adoption and regular use of crypto based and peer-to-peer solutions. The blanket strategy does not work effectively in this situation. iP2PGlobal has chosen to develop a single product or solution to address a specific demand and need in the market — crypto loans — and has committed its whole roadmap over 24 months to ensure a world class and commercial grade platform is delivered to the market. The management team could have chosen to be overly ambitious or even greedy but instead they have forgone (for the moment) the larger market and opted to be focused on one segment to the benefit of users and investors. It appears that the management team foresight tells them that success with one product or solution is necessary first to solidify market credibility and commercial basis to develop other products and solutions as and when the crypto market evolves and when the critical demand for more financial services is in place. Unlike most blockchain projects we have seen, this project is very concentrated on doing and delivering one thing and doing it very well. This attitude by iP2PGlobal is admirable and lends a lot of confidence that the project is very likely to be completed and delivered to the market. The bull run of 2017 saw thousands of ICO’s raise funds based on frail and farfetched ideas, flimsy whitepapers, and aggressive marketing tactics compared to actual working products and a real market. Today the initial hype is over, but the utility of ICO’s and IEO’s still serves an important function. As the crypto market continues to develop, bad coins will cease to exist, while projects with real use cases will thrive. The iP2PGlobal lending platform is an example of a Bona Fide project raising funds through an exchange coin offering that has real-world use case and a real market, in addition to real people with qualifications, experience, and track record. 3. MARKET P2P is the practice of lending money to individuals or businesses through online services that match lenders with borrowers. P2P is a relatively new industry, with the 1st P2P lending platform only starting in 2005 in the United Kingdom. Prior to the introduction of P2P lending platforms, the main source of any ﬁnancing for individuals or companies was from traditional lenders such as banks and ﬁnance companies. The main reason why the P2P business model works, is because its operational expenses is lower when compared with traditional lenders. Technology plays a big part in bringing borrower and investors together ensuring that the main culprit of high costs i.e. branch infrastructure is made obsolete. These savings in operational expenses allow P2P players to under-cut traditional lender’s spread thus providing big savings to borrowers via lower interest rates and better returns for investors, compared to savings and investment products oﬀered by banks. Based on Industry Reports by Cambridge Centre for Alternative Finance, Global alternative ﬁnancing has been on a strong growth path over the past few years, registering US$419 billion in total in 2017 compared to only US$43.6 billion in 2014. Based on the 2016 total of US$289 billion raised, P2P lending made up the lion share with 55.8% coming from P2P consumer lending (US$161 billion), whilst P2P business lending and P2P real estate lending was at 23.85% and 2.96% respectively. The continued growth of P2P lending, in particular P2P consumer lending, which makes up the majority of the online alternative ﬁnance market especially in Asia Paciﬁc, Americas and Europe augurs well for the industry as more people accept the P2P lending model and start to branch out from traditional lenders like banks and ﬁnance companies. The global peer-to-peer lending market is expected to grow tremendously and post a compound annual growth rate of more than 53% by 2020 from 2015. Since the cryptocurrency lending market started in 2016, over US$4.7 billion loan volume has been originated, but the income generated is low at US$86 million or less than 2%, although the borrowing rate typically ranged from 6%-10% on an annual basis. iP2PGlobal Platform will open up ﬁnancing to a big Muslim population (estimated population of 2.18 billion), who wants to borrow and lend according to Sharia ﬁnance principles. However, although Sharia ﬁnancing products are sought after by Muslims, this does not preclude or should deter non-Muslims from tapping onto the platform, as the iP2PGlobal Platform is open to everybody regardless of their gender, race or religion. ASSESSMENT: The Global Peer to Peer (P2P) Lending market is categorized into consumer lending and business lending. The traditional P2P model generally exists on a large-scale mostly in developing regions. However, this is mainly due to minimum availability of modern technologies which makes companies adopt the P2P model. The industry is projected to reach USD 820.70 billion by 2025. The driving factors influencing the global peer to peer lending market demand are growing awareness among consumers, transparency in process, low-interest rates, process efficiency for easy loan distribution, and demand for loans by small & medium enterprises, real estate sector and other consumer loans. P2P Lending companies are investing in new technologies to make the process easier and efficient. For instance, Faircent has launched e-sign facility in collaboration with eMudhra to reduce the turnaround time for loan distribution by further reducing the human intervention in the process. In the year 2017, consumer lending dominated the overall peer to peer lending market by occupying a 72.2% share. P2P lending has provided easy access to loans due to which there is a rise in personal loans, home loans, student loans, and other consumer loans. However, business lending is also witnessing a significant growth owing to the growing number of small & medium businesses across the globe registering an exponential growth rate over the forecast period. Regionally the global peer to peer lending is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. In 2017, Asia Pacific dominated the global P2P lending market of which China occupied a major share in this region. However, in recent years there has been an increasing number of P2P lending frauds in China due to which China Banking and Insurance Regulatory Commission has imposed stringent regulations to restrict P2P lending companies from committing crimes. This development is actually a positive indication as the fact that the regulators are paying attention means that the industry is significant to the economy. In Europe, Unite Kingdom dominated the P2P market by contributing more than an 82.3% market share. Zopa was founded in 2005, the first company to launch website for borrowing and lending services. After which many new companies were launched including funding circle and rate setter. The stringent regulations implemented by the Financial Conduct Authority has paved the way for the UK P2P lending market. Moreover, many start-ups are coming into the market as investments are increasingly by venture capitalist. The global P2P lending market is fragmented with many regional and international players across the globe. Here are some of the leading players of the global peer to peer lending market include Zopa, Prosper Marketplace, Lending Club, Funding Circle, Upstart, SoFi, RateSetter, China Rapid Finance, PPDAI Group, Funding Societies. It should be noted that one of the reasons for the fragmentation is due to the limitations and restrictions on Global Fiat Lending or cross-border fiat lending because of the different licensing and regulations in different countries. The iP2PGlobal Personal Financing Platform will be the first truly Global P2P lending platform as the platform is a CRYPTO LOAN platform and as it is not fiat lending, the platform solves the problems, limitations, and restrictions imposed by country specific regulations on cross-border currency transfelending, and fiat currency exchange fluctuations. In terms of market size, market segment growth, and trends in the financial services industry, the iP2PGlobal platform appears to be entering a position that has all the right ingredients for mass acceptance and adoption of the loan platform solution/service. 4. PROFORMA FINANCIALS
IP2P GLOBAL PLATFORM 5 YEARS PRO-FORMA FINANCIALS The above proforma financials of the iP2PGlobal platform is prepared based on information and data provided by iP2PGlobal Ltd in its Whitepaper, and information and data available from reports in the public domain on the P2P Lending market, developments in the Fintech industry, and global trends in the financial services sector. Relevant and applicable growth rates of the P2P lending market and macroeconomic data on the funding-gap globally between the “banked” and “un-banked” market is also referenced and factored into the financial projections. Assumptions & Observations: The proforma financials rest on the latest public figures on the P2P Crypto Lending market, and for the 5-year forecast period, the historical industry CAGR was applied at a 50% discount, which implies that the growth will decelerate — this is a conservative position by iP2PGlobal (ii) At the end of the 5-year forecast period, iP2PGlobals’ share of the P2P Crypto Lending market is projected to reach a mere 1.56% which is very conservative given several unique features of the iP2PGlobal platform. (iii) The loan composition used in the forecast is constant at 20:80 between Unsecured and Secured Loans. A higher percentage of Unsecured Loans would yield higher revenue to the platform as the platform fee for unsecured loans is higher than for secured loans. (iv) Total borrowers using the iP2PGlobal platform over the 5-year period is 630,365 borrowers, borrowing a total US$194,667,762 assuming a fixed average loan per borrower of US$1,000. This US$1,000 amount may not be representative of what the platform will actually see as the is no limit on the loan amount that can be submitted. Assuming a low average loan amount discounts the forecast from potentially large loans from businesses and high-volume traders, who may also use the platform. (v) It should be noted that some P2P Lending platforms impose a minimum loan amount as high as US$30,000 whereas the iP2PGlobal platform has a much lower minimum loan amount of US$200 only (vi) Borrower growth and loan growth appear conservative by comparison to the historical CAGR of the market segment which ranges from 30–52%. (vii) Utilization of the TWQ Token starts at a conservative 4.86% of the theoretical total TWQ in Public hands but reaches a utilization of 38.96% by the end of the 5-year forecast period. 5) VALUATION & PRICING
TWQ TOKEN FUTURE VALUATION & PRICING A. Average P/E Ratio for the Financial Services Industry Companies that operate within the industry include those focused on brokerage operations, conventional banking, asset management, as well as debt and credit services. Since the financial services industry plays an important role in the overall performance of the markets, investors should be concerned with the average P/E ratio of this sector. As of August 2018, the average P/E ratio of the financial services industry is 14.26. This metric includes the sector averages of specific financial service categories, including banks with a P/E ratio of 13.51, capital markets with a P/E ratio of 18.83, and insurance with a P/E ratio of 14.64. A smaller sector in the broader financial services category, thrifts and mortgage finance has the highest P/E at 32.17, while the lowest at this time is the mortgage REITs sector at 7.11. Because of the absence of historical price data, a test of reasonableness cannot be done for the TWQ Token thus the only guidance that is available to assess the forecasted TWQ Token price are industry averages of PE multiples of the financial services industry. The first year proforma PE ratio of the TWQ Token is forecasted at 16.04x which is in the range of PE multiples of companies in the financial services industry that ranges from 7.11x to a high of 32.17x. By the 5th year of the forecast period the PE ratio is forecasted at 20.13x which is slightly higher than the PE ratio for capital markets at 18.83x but still within the range of multiples for the industry as a whole. As depicted in Figure 1 above, the rate of change of the PE ratio curve is not as steep as the TWQ Price curve which indicates that the iP2PGlobal lending platform earnings are forecasted to increase at a higher rate. As stated in the above section on assumptions and observations, the slightly higher PE curve applied may be justified by the fact that the proforma financials do not factor in the untapped Sharia market and the potential 2.18 billion Muslim population.
TWQ TOKEN FORECASTED PRICE & PE RATIO B. Market Capitalization When evaluating a token or coin, looking at Market Cap helps give some idea of the potential price performance in relation to the total crypto market capitalization and also similar tokens and coins. An examination of a tokens’ market cap also provides investors an objective tool in navigating through the hype and marketing which is so prevalent in the ICO/IEO scene. Market capitalization is a common metric for traditional securities and is now sparingly being applied in crypto. For the benefit of crypto investors, we look at the TWQ market cap in applying a conventional evaluation tool that is a measure of the value of a security. It is derived by multiplying the amount of outstanding stock shares by the current stock price. In crypto, it’s defined as the circulating supply of tokens multiplied by current price. If a coin has 1,000,000 tokens outstanding and is trading for US$1 a coin, it has a market cap of US$1,000,000. Stocks and bonds are regularly analysed with financial metrics and ratios. Measures like price-to-earnings ratio, earnings per share, the current ratio, earnings growth, and so on are used to examine stocks. In crypto, financial statements are mostly never published. A market cap is quick way to gauge a coin’s value — healthy market cap is indicative of a strong coin. When combined with other metrics, market cap gives investors more tools to arrive at an investment decision. The Market Cap of the iP2PGlobal platform in the first year is calculated as follows: Market Capitalization = TWQ Price x Circulating Supply of TWQ Tokens = US$0.57 x 50,000,000 = US$28,740,735 It should be noted that the market cap calculation used in the proforma is a 12-month average to smooth out price fluctuations during each proforma year. As can be seen from the formula above, the variable of significant importance is the TWQ Price, and going back to the section above on PE Ratio it has already been established that the proforma TWQ Token price is within the reasonable ranges of PE multiples for the financial services industry.
FORECASTED TWQ MARKET CAPITALISATION C. Economics The visuals below essentially show the number of circulating TWQ net of reductions from defaulted loans, in comparison to the total value of TWQ staked on the iP2PGlobal lending platform over the 5-year forecast period. It is a simplistic measure nevertheless highlights an important characteristic of the TWQ Token and the implications on its price trajectory.
FORECASTED TWQ TOKEN SUPPLY VS. VALUE STAKED What is clear from the chart above is the following: The supply of circulating TWQ reduces over time Value of TWQ staked is larger over time Given, Perennial reduction in the supply of circulating TWQ due to loan defaults Growth in the platform use and earnings will be reflected in a price increase of the TWQ Higher price of TWQ will reduce the number of TWQ needed for loan submission Thus, Although the amount of TWQ needed for a loan submission is less because the price has increased, the reducing supply of circulating TWQ combined with the price increase in TWQ will result in a net upward pressure on the TWQ price. This presumption is fundamentally correct as the increase in the utility of the TWQ will support the price of the TWQ which reasonableness has been established based on PE multiple price simulation using financial services industry averages. 6. OVERALL OUTLOOK & CONCLUSION Unlike investments through bank deposits, P2P platforms connect borrowers and lenders directly through the marketplace, thereby somewhat eliminating the role of middleman. This is what the iP2PGlobal Platform does. Traditionally, most investors are risk averse and rely more on bank fixed deposits (FDs) as the capital invested is not market-linked and is not exposed to short-term market volatility. However, things are now changing, as investors are not fearful of taking some calculated risks. The iP2PGlobal Platform offers investors/lenders this opportunity. As a result of the change in investment patterns, apart from savings accounts and bank FDs, P2P investment has been coming up as an alternative among the younger generation. By connecting the borrowers and lenders directly, P2P lending not only brings more transparency, but unlike in the case of banks, also provides opportunities for investors to choose the loans they want to fund, which is essentially what the iP2PGlobal Platform allows. Additionally, as the middleman (like banks in case of FDs) is eliminated, borrowers can negotiate a better cost of funds rate and investors can create their portfolio of loans as well on the basis of credit ratings and interest rates of borrowers, which may fetch higher returns for them. Before the introduction of P2P, the options to invest were either market-linked products like equity and mutual funds, which required the investor to have a decent knowledge about the market, or to park the money in banks which had lower returns. Now, with P2P lending, investors may also earn higher returns without having to worry much about the volatility of markets. P2P lending has become an alternative investment destination for those investors who wish to earn higher returns without facing short-term market risks. It is almost common knowledge now that millennial investors prefer data-backed investment options over the traditional options. As a result, P2P lending has become a go to option for the millennial individuals as P2P platforms use AI and Machine Learning to deploy the investor’s money to generate maximum returns. “P2P lending is still in the nascent stage and is expected to grow as there are huge opportunities, with the credit demand and supply gap — as per the estimates of the World Bank — being close to $380 billion’. One major risk for investors on p2p lending platforms is that the company running the platform becomes insolvent and is unable to continue to operate the marketplace. The importance of the financial health of a p2p lending company for assessing the overall risk is essential. More often than not, insolvency and business failures are due to people and management, and not the business or market itself. In the case of iP2PGlobal it is very clear and evident that the company and project is being developed and driven by real people with relevant qualifications, experience and track records. CEO of FinTech platform YouHodler stated that “the altcoin market cap is slipping, but it is far from being destroyed. We are amid a new altcoin rebirth. Many, once popular, altcoins will find it very hard to make a comeback to their all-time high, if at all. Yet, there are still many promising altcoins with real use cases and revenue generation models that will outline the new trajectory of the altcoin market”. In general, most subject matter experts conclude that the future of altcoins is still yet to be determined but will rely solely on a given project’s ability to provide firm use cases. The use case for the iP2PGlobal Platform is crystal clear from the onset — they are moving financial services from the conventional market to the Blockchain. Using altcoins as collateral for a crypto loan helps users utilize the value of their altcoins without having to sell. If the value of their altcoins increases during the loan term, then the users keep all the profits. If altcoins take a negative turn in the other direction, then users can take comfort since they already have the cash and did not lose any additional money. This feature or utility is often overlooked in its importance as the usual emphasis when people look at P2P lending platforms is on how much of a loan can be obtained and what the costs are. Most overlook the benefit or economic value of being able to get further leverage or utility from the altcoins which they have already expended real (fiat) currency to acquire. Perhaps with the growing understanding of P2P and Blockchain, these benefits will become more prevalent. We have all seen many companies with fantastic products, technology, ideas, and markets brimming with potential demand yet have fallen short of success. Many have come and gone, and many more will appear to take up the challenge of developing and establishing a commercially viable and sustainable business. The question that comes to the mind of many when we see so few successes of such great ideas and fantastic product and marketing strategies is — “What happened? Why did this company not make it?”. There is no shortage of analyst, consultants, and industry experts that regularly evaluate and review established companies and corporations especially listed companies. In these situations, the task of evaluation is focused more on how these companies are performing as compared to the market and competition. Established companies and businesses by definition are those who have succeeded. Evaluating private and early stage companies and businesses however requires a more dynamic as well as a rigorous thought process and evaluation framework. Oftentimes as these companies are early stage, the only “tangible” or real element that is available for analysis and evaluation are the people behind the company. History has also proven that success of many great companies and products are attributed to the founders and people behind the companies and the product. This review of iP2PGlobal Ltd and by extension the review of the TWQ Token has in some parts been detailed whereas in other parts general at best. This is a reflection of the absence of generally accepted and established methods for evaluation of crypto assets and the crypto market. The assessment has adopted fundamental as well as some technical analysis methods borrowed from mainstream. In areas where data and information are lacking, certain presumptions and extrapolations were made. One thing for certain however about the iP2PGlobal lending platform is that the company behind the project has real people with real experience and track record. Why this is important is because only real people with relevant experience can navigate the uncertainties and dynamic nature of the real world and real economy. If you are an investor, look at the next big ICO/IEO and try to sift through the hype and marketing, and see if you can find a real and solid team behind the project and solely base your decision to invest on the team and people developing the project. If you are a genuine investor and you struggle with this, then chances are what your instinct is telling you is correct. In the final analysis, any attempt to evaluate and assess the value of a business, company, stocks, token, and securities will always be incomplete. Having said this, some semblance of a proper and objective evaluation should bring a fresh air to the usual hype and hoopla crowded ICO/IEO market space. Analysis was done by Azmin Ahmad Hassan Azmin, is an advisor to iP2PGlobal Platform & TWQ token project, before establishing Qyrin Petroleum Technology in 2013, he has worked mainly in private equity and venture capital industry, amongst others he was a senior analyst with Maybank Venture Capital, he was also the Head of Private Equity for Bank Pembangunan Equity. Azmin’s linkedin profile page: https://www.linkedin.com/in/azmin-ahmad-hassan-385b923/
A (live/editable) timeline of historical events directly or indirectly related to the creation of Bitcoin and Cryptocurrencies
*still workin' on this so check back later and more will be added, if you have any suggested dates/events feel free to lemme know...
This timeline includes dates pertaining to:
- Forms of money
- Banking models
- Bank Bailouts
- Widely accepted economic systems
- Widely accepted forms of government
- Inventions which advanced FinTech
- Inventions in computer science and related technology
- Inventions which connected the world via transportation, communication and information
- Development of cryptography and cyberwar
- Notable Social Movements
- Hyperinflation and National Debts
Ancient Bartering – first recorded in Egypt (resources, services...) – doesn’t scale
Tally sticks were used, making notches in bones or wood, as a form of money of account
9000-6000 BC Livestock considered the first form of currency
c3200 BC Clay tablets used in Uruk (Iraq) for accounting (believed to be the earliest form of writing)
3000 BC Grain is used as a currency, measured out in Shekels
3000 BC Banking developed in Mesopotamia
3000 BC? Punches used to stamp symbols on coins were a precursor to the printing press and modern coins
? BC Since ancient Persia and all the way up until the invention and expansion of the telegraph Homing Pigeons were used to carry messages
2000 BC Merchants in Assyria, India and Sumeria lent grain to farmers and traders as a precursor to banks
1700 BC In Babylon at the time of Hammurabi, in the 18th century BC, there are records of loans made by the priests of the temple.
1200 BC Shell money first used in China
1000-600 BC Crude metal coins first appear in China
640 BC Precious metal coins – Gold & Silver first used in ancient Lydia and coastal Greek cities featuring face to face heads of a bull and a lion – first official minted currency made from electrum, a mixture of gold and silver
600-500 BC Atbash Cipher
A substitution Cipher used by ancient Hebrew scholars mapping the alphabet in reverse, for example, in English an A would be a Z, B a Y etc.
400 BC Skytale used by Sparta
474 BC Hundreds of gold coins from this era were discovered in Rome in 2018
350 BC Greek hydraulic semaphore system, an optical communication system developed by Aeneas Tacticus.
c200 BC Polybius Square
??? Wealthy stored coins in temples, where priests also lent them out
??? Rome was the first to create banking institutions apart from temples
118 BC First banknote in the form of 1 foot sq pieces of white deerskin
100-1 AD Caesar Cipher
193 Aureus, a gold coin of ancient Rome, minted by Septimius Severus
324 Solidus, pure gold coin, minted under Constantine’s rule, lasted until the late 8th century
600s Paper currency first developed in Tang Dynasty China during the 7th century, although true paper money did not appear until the 11th century, during the Song Dynasty, 960–1279
c757–796 Silver pennies based on the Roman denarius became the staple coin of Mercia in Great Britain around the time of King Offa
806 First paper banknotes used in China but isn’t widely accepted in China until 960
1024 The first series of standard government notes were issued in 1024 with denominations like 1 guàn (貫, or 700 wén), 1 mín (緡, or 1000 wén), up to 10 guàn. In 1039 only banknotes of 5 guàn and 10 guàn were issued, and in 1068 a denomination of 1 guàn was introduced which became forty percent of all circulating Jiaozi banknotes.
1040 The first movable type printer was invented in China and made of porcelain
? Some of the earliest forms of long distance communication were drums used by Native Africans and smoke signals used by Native Americans and Chinese
1088 Movable type in Song Dynasty China
1120 By the 1120s the central government officially stepped in and produced their own state-issued paper money (using woodblock printing)
1150 The Knights Templar issued bank notes to pilgrims. Pilgrims deposited their valuables with a local Templar preceptory before embarking, received a document indicating the value of their deposit, then used that document upon arrival in the Holy Land to retrieve their funds in an amount of treasure of equal value.
1200s-1300s During the 13th century bankers from north Italy, collectively known as Lombards, gradually replace the Jews in their traditional role as money-lenders to the rich and powerful. – Florence, Venice and Genoa - The Bardi and Peruzzi Families dominated banking in 14th century Florence, establishing branches in many other parts of Europe
1200 By the time Marco Polo visited China they’d move from coins to paper money, who introduced the concept to Europe. An inscription warned, "All counterfeiters will be decapitated." Before the use of paper, the Chinese used coins that were circular, with a rectangular hole in the middle. Several coins could be strung together on a rope. Merchants in China, if they became rich enough, found that their strings of coins were too heavy to carry around easily. To solve this problem, coins were often left with a trustworthy person, and the merchant was given a slip of paper recording how much money they had with that person. Marco Polo's account of paper money during the Yuan Dynasty is the subject of a chapter of his book, The Travels of Marco Polo, titled "How the Great Kaan Causeth the Bark of Trees, Made Into Something Like Paper, to Pass for Money All Over his Country."
1252 Florin minted in Florence, becomes the hard currency of its day helping Florence thrive economically
1340 Double-entry bookkeeping - The clerk keeping the accounts for the Genoese firm of Massari painstakingly fills in the ledger for the year 1340.
1397 Medici Bank established
1450 Johannes Gutenberg builds the printing press – printed words no longer just for the rich
1455 Paper money disappears from China
1466 Polyalphabetic Cipher
1466 Rotating cipher disks – Vatican – greatest crypto invention in 1000 yrs – the first system to challenge frequency analysis
1466 First known mechanical cipher machine
1472 The oldest bank still in existence founded, Banca Monte dei Paschi di Siena, headquartered in Siena, Italy
1494 Double-entry bookkeeping system codified by Luca Pacioli
1535 Wampum, a form of currency used by Native Americans, a string of beads made from clamshells, is first document.
1553 Vigenere Cipher
1557 Phillip II of Spain managed to burden his kingdom with so much debt (as the result of several pointless wars) that he caused the world's first national bankruptcy — as well as the world's second, third and fourth, in rapid succession.
1577 Newspaper in Korea
1586 The Babington Plot
1590 Cabinet Noir was established in France. Its mission was to open, read and reseal letters, and great expertise was developed in the restoration of broken seals. In the knowledge that mail was being opened, correspondents began to develop systems to encrypt and decrypt their letters. The breaking of these codes gave birth to modern systematic scientific code breaking.
1600s Promissory banknotes began in London
1600s By the early 17th century banking begins also to exist in its modern sense - as a commercial service for customers rather than kings. – Late 17th century we see cheques slowly gains acceptance
The total of the money left on deposit by a bank's customers is a large sum, only a fraction of which is usually required for withdrawals. A proportion of the rest can be lent out at interest, bringing profit to the bank. When the customers later come to realize this hidden value of their unused funds, the bank's profit becomes the difference between the rates of interest paid to depositors and demanded from debtors.
The transformation from moneylenders into private banks is a gradual one during the 17th and 18th centuries. In England it is achieved by various families of goldsmiths who early in the period accept money on deposit purely for safe-keeping. Then they begin to lend some of it out. Finally, by the 18th century, they make banking their business in place of their original craft as goldsmiths.
1605 Newspaper in Straussburg
c1627 Great Cipher
1637 Wampum is declared as legal tender in the U.S. (where we got the slang word “clams” for money)
1656 Johan Palmstruch establishes the Stockholm Banco
1661 Paper Currency reappears in Europe, soon became common - The goldsmith-bankers of London began to give out the receipts as payable to the bearer of the document rather than the original depositor
1661 Palmstruch issues credit notes which can be exchanged, on presentation to his bank, for a stated number of silver coins
1666 Stockholms Banco, the predecessor to the Central Bank of Sweden issues the first paper money in Europe. Soon went bankrupt for printing too much money.
1667 He issues more notes than his bank can afford to redeem with silver and winds up in disgrace, facing a death penalty (commuted to imprisonment) for fraud.
1668 Bank of Sweden – today the 2nd oldest surviving bank
1694 First Central Bank established in the UK was the first bank to initiate the permanent issue of banknotes
Served as model for most modern central banks.
The modern banknote rests on the assumption that money is determined by a social and legal consensus. A gold coin's value is simply a reflection of the supply and demand mechanism of a society exchanging goods in a free market, as opposed to stemming from any intrinsic property of the metal. By the late 17th century, this new conceptual outlook helped to stimulate the issue of banknotes.
1700s Throughout the commercially energetic 18th century there are frequent further experiments with bank notes - deriving from a recognized need to expand the currency supply beyond the availability of precious metals.
1712 First commercial steam engine
1717 Master of the Royal Mint Sir Isaac Newton established a new mint ratio between silver and gold that had the effect of driving silver out of circulation (bimetalism) and putting Britain on a gold standard.
1735 Classical Economics – markets regulate themselves when free of intervention
1744 Mayer Amschel Rothschild, Founder of the Rothschild Banking Empire, is Born in Frankfurt, Germany
Mayer Amschel Rothschild extended his banking empire across Europe by carefully placing his five sons in key positions. They set up banks in Frankfurt, Vienna, London, Naples, and Paris. By the mid 1800’s they dominated the banking industry, lending to governments around the world and people such as the Vanderbilts, Carnegies, and Cecil Rhodes.
1745 There was a gradual move toward the issuance of fixed denomination notes in England standardized printed notes ranging from £20 to £1,000 were being printed.
1748 First recorded use of the word buck for a dollar, stemming from the Colonial period in America when buck skins were commonly traded
1757 Colonial Scrip Issued in US
1760s Mayer Amschel Rothschild establishes his banking business
1769 First steam powered car
1775-1938 US Diplomatic Codes & Ciphers by Ralph E Weber used – problems were security and distribution
1776 American Independence
1776 Adam Smith’s Invisible Hand theory helped bankers and money-lenders limit government interference in the banking sector
1781 The Bank of North America was a private bank first adopted created the US Nation's first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the country's first initial public offering. It lasted less than ten years.
1783 First steamboat
1791 Congress Creates the First US Bank – A Private Company, Partly Owned by Foreigners – to Handle the Financial Needs of the New Central Government. First Bank of the United States, a National bank, chartered for a term of twenty years, it was not renewed in 1811.
Previously, the 13 states had their own banks, currencies and financial institutions, which had an average lifespan of about 5 years.
1792 First optical telegraph invented where towers with telescopes were dispersed across France 12-25 km apart, relaying signals according to positions of arms extended from the top of the towers.
1795 Thomas Jefferson invents the Jefferson Disk Cipher or Wheel Cipher
1797 to 1821 Restriction Period by England of trading banknotes for silver during Napoleonic Wars
1797 Currency Crisis
Although the Bank was originally a private institution, by the end of the 18th century it was increasingly being regarded as a public authority with civic responsibility toward the upkeep of a healthy financial system.
1799 First paper machine
1800 Banque de France – France’s central bank opens to try to improve financing of the war
1800 Invention of the battery
1801 Rotchschild Dynasty begins in Frankfurt, Holy Roman Empire – established international banking family through his 5 sons who established themselves in London, Paris, Frankfurt, Vienna, and Naples
1804 Steam locomotive
1807 Internal combustion engine and automobile
1807 Robert Fulton expands water transportation and trade with the workable steamboat.
1811 First powered printing press, also first to use a cylinder
1816 The Privately Owned Second Bank of the US was Chartered – It Served as the Main Depository for Government Revenue, Making it a Highly Profitable Bank – charter not renewed in 1836
1816 The first working telegraph was built using static electricity
1816 Gold becomes the official standard of value in England
1820 Industrial Revolution
c1820 Neoclassical Economics
1821 British gov introduces the gold standard - With governments issuing the bank notes, the inherent danger is no longer bankruptcy but inflation.
1822 Charles Babbage, considered the "father of the computer", begins building the first programmable mechanical computer.
1832 Andrew Jackson Campaigns Against the 2nd Bank of the US and Vetoes Bank Charter Renewal
Andrew Jackson was skeptical of the central banking system and believed it gave too few men too much power and caused inflation. He was also a proponent of gold and silver and an outspoken opponent of the 2nd National Bank. The Charter expired in 1836.
1833 President Jackson Issues Executive Order to Stop Depositing Government Funds Into Bank of US
By September 1833, government funds were being deposited into state chartered banks.
1833-1837 Manufactured “boom” created by central bankers – money supply Increases 84%, Spurred by the 2nd Bank of the US
The total money supply rose from $150 million to $267 million
1835 Jackson Escapes Assassination. Assassin misfired twice.
1837-1862 The “Free Banking Era” there was no formal central bank in the US, and banks issued their own notes again
1838 First Telegram sent using Morse Code across 3 km, in 1844 he sent a message across 71 km from Washington DC to Baltimore.
1843 Ada Lovelace published the first algorithm for computing
1844 Modern central bank of England established - meaning only the central bank of England could issue banknotes – prior to that commercial banks could issue their own and were the primary form of currency throughout England
the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt.
1848 Communist Manifesto
1850 The first undersea telegraphic communications cable connected France in England after latex produced from the sap of the Palaquium gutta tree in 1845 was proposed as insulation for the underwater cables.
1852 Many countries in Europe build telegram networks, however post remained the primary means of communication to distant countries.
1855 In England fully printed notes that did not require the name of the payee and the cashier's signature first appeared
1855 The printing telegraph made it possible for a machine with 26 alphabetic keys to print the messages automatically and was soon adopted worldwide.
1856 Belgian engineer Charles Bourseul proposed telephony
1856 The Atlantic Telegraph company was formed in London to stretch a commercial telegraph cable across the Atlantic Ocean, completed in 1866.
1860 The Pony Express was founded, able to deliver mail of wealthy individuals or government officials from coast to coast in 10 days.
1861 The East coast was connected to the West when Western Union completed the transcontinental telegraph line, putting an end to unprofitable The Pony Express.
1862-1863 First US banknotes - Lincoln Over Rules Debt-Based Money and Issues Greenbacks to Fund Civil War
Bankers would only lend the government money under certain conditions and at high interest rates, so Lincoln issued his own currency – “greenbacks” – through the US Treasury, and made them legal tender. His soldiers went on to win the war, followed by great economic expansion.
1863 to 1932 “National Banking Era” Commercial banks in the United States had legally issued banknotes before there was a national currency; however, these became subject to government authorization from 1863 to 1932
1864 Friedrich Wilhelm Raiffeisen founded the first rural credit union in Heddesdorf (now part of Neuwied) in Germany. By the time of Raiffeisen's death in 1888, credit unions had spread to Italy, France, the Netherlands, England, Austria, and other nations
1870 Long-distance telegraph lines connected Britain and India.
c1871 Marginalism - The doctrines of marginalism and the Marginal Revolution are often interpreted as a response to the rise of the worker's movement, Marxian economics and the earlier (Ricardian) socialist theories of the exploitation of labour.
1871 Carl Menger’s Principles of Economics – Austrian School
1872 Marx’s Das Capital
1872 Australia becomes the first nation to be connected to the rest of the world via submarine telegraph cables.
1876 Alexander Graham Bell patented the telephone, first called the electric speech machine – revolutionized communication
1877 Thomas Edison – Phonograph
1878 Western Union, the leading telegraph provider of the U.S., begins to lose out to the telephone technology of the National Bell Telephone Company.
1881 President James Garfield, Staunch Proponent of “Honest Money” Backed by Gold and Silver, was Assassinated
Garfield opposed fiat currency (money that was not backed by any physical object). He had the second shortest Presidency in history.
1882 First description of the one-time pad
1886 First gas powered car
1888 Ballpoint pen
1895 System of wireless communication using radio waves
1896 First successful intercontinental telegram
1899 Nickel-cadmium battery
1907 Banking Panic of 1907
The New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. This banking panic spurred debate for banking reform. JP Morgan and others gathered to create an image of concern and stability in the face of the panic, which eventually led to the formation of the Federal Reserve. The founders of the Federal Reserve pretended like the bankers were opposed to the idea of its formation in order to mislead the public into believing that the Federal Reserve would help to regulate bankers when in fact it really gave even more power to private bankers, but in a less transparent way.
1908 St Mary’s Bank – first credit union in US
1908 JP Morgan Associate and Rockefeller Relative Nelson Aldrich Heads New National Monetary Commission
Senate Republican leader, Nelson Aldrich, heads the new National Monetary Commission that was created to study the cause of the banking panic. Aldrich had close ties with J.P. Morgan and his daughter married John D. Rockefeller.
1910 Bankers Meet Secretly on Jekyll Island to Draft Federal Reserve Banking Legislation
Over the course of a week, some of the nation’s most powerful bankers met secretly off the coast of Georgia, drafting a proposal for a private Central Banking system.
1913 Federal Reserve Act Passed
Two days before Christmas, while many members of Congress were away on vacation, the Federal Reserve Act was passed, creating the Central banking system we have today, originally with gold backed Federal Reserve Notes. It was based on the Aldrich plan drafted on Jekyll Island and gave private bankers supreme authority over the economy. They are now able to create money out of nothing (and loan it out at interest), make decisions without government approval, and control the amount of money in circulation.
1913 Income tax established -16th Amendment Ratified
Taxes ensured that citizens would cover the payment of debt due to the Central Bank, the Federal Reserve, which was also created in 1913.The 16th Amendment stated: “The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.”
1914 November, Federal Reserve Banks Open
JP Morgan and Co. Profits from Financing both sides of War and Purchasing Weapons
J.P. Morgan and Co. made a deal with the Bank of England to give them a monopoly on underwriting war bonds for the UK and France. They also invested in the suppliers of war equipment to Britain and France.
1917 Teletype cipher
1917 The one-time pad
1917 Zimmerman Telegram intercepted and decoded by Room 40, the cryptanalysis department of the British Military during WWI.
1918 GB returns to gold standard post-war but it didn’t work out
1919 First rotor machine, an electro-mechanical stream ciphering and decrypting machine.
1919 Founding of The Cipher Bureau, Poland’s intelligence and cryptography agency.
1919-1929 The Black Chamber, a forerunner of the NSA, was the first U.S. cryptanalytic organization. Worked with the telegraph company Western Union to illegally acquire foreign communications of foreign embassies and representatives. It was shut down in 1929 as funding was removed after it was deemed unethical to intercept private domestic radio signals.
1920s Department stores, hotel chains and service staions begin offering customers charge cards
1921-1929 The “Roaring 20’s” – The Federal Reserve Floods the Economy with Cash and Credit
From 1921 to 1929 the Federal Reserve increased the money supply by $28 billion, almost a 62% increase over an eight-year period. This artificially created another “boom”.
1927 Quartz clock
1928 First experimental Television broadcast in the US.
1929 Federal Reserve Contracts the Money Supply
In 1929, the Federal Reserve began to pull money out of circulation as loans were paid back. They created a “bust” which was inevitable after issuing so much credit in the years before. The Federal Reserve’s actions triggered the banking crisis, which led to the Great Depression.
1929 October 24, “Black Thursday”, Stock Market Crash
The most devastating stock market crash in history. Billions of dollars in value were consolidated into the private banker’s hands at the expense of everyone else.
1930s The Great Depression marked the end of the gold standard
1931 German Enigma machines attained and reconstructed.
1932 Turbo jet engine patented
1933 SEC founded - passed the Glass–Steagall Act, which separated investment banking and commercial banking. This was to avoid more risky investment banking activities from ever again causing commercial bank failures.
1933 FM Radio
1933 Germany begins Telex, a network of teleprinters sending and receiving text based messages. Post WWII Telex networks began to spread around the world.
1936 Austrian engineer Paul Eisler invented Printed circuit board
1936 Beginning of the Keynesian Revolution
1937 Typex, British encryption machines which were upgraded versions of Enigma machines.
1927 Founding of highly secret and unofficial Signal Intelligence Service, SIS, the U.S. Army’s codebreaking division.
1937 Made illegal for Americans to own gold
1938 Z1 built by Konrad Zuse is the first freely programmable computer in the world.
1939 WWII – decline of the gold standard which greatly restricted policy making
1939-45 Codetalkers - The Navajo code is the only spoken military code never to have been deciphered - "Were it not for the Navajos, the Marines would never have taken Iwo Jima."—Howard Connor
1942 Deciphering Japanese coded messages leads to a turning point victory for the U.S. in WWII.
1943 At Bletchley Park, Alan Turing and team build a specialized cipher-breaking machine called Heath Robinson.
1943 Colossus computer built in London to crack the German Lorenz cipher.
1944 Bretton Woods – convenient after the US had most of the gold
1945 Manhattan Project – Atom Bomb
1945 Transatlantic telephone cable
1945 Claude E. Shannon published "A mathematical theory of cryptography", commonly accepted as the starting point for development of modern cryptography.
C1946 Crypto Wars begin and last to this day
1946 Charg-it card created by John C Biggins
1948 Atomic clock
1948 Claude Shannon writes a paper that establishes the mathematical basis of information theory
1949 Info theorist Claude Shannon asks “What does an ideal cipher look like?” – one time pad – what if the keys are not truly random
1950 First credit card released by the Diners Club, able to be used in 20 restaurants in NYC
1951 NSA, National Security Agency founded and creates the KL-7, an off-line rotor encryption machine
1952 First thermonuclear weapon
1953 First videotape recorder
1953 Term “Hash” first used meaning to “chop” or “make a mess” out of something
1954 Atomic Energy Act (no mention of crypto)
1957 The NSA begins producing ROMOLUS encryption machines, soon to be used by NATO
1957 First PC – IBM
1957 First Satellite – Sputnik 1
1958 Western Union begins building a nationwide Telex network in the U.S.
1960s Machine readable codes were added to the bottom of cheques in MICR format, which speeded up the clearing and sorting process
1960s Financial organizations were beginning to require strong commercial encryption on the rapidly growing field of wired money transfer.
1961 Electronic clock
1963 June 4, Kennedy Issued an Executive Order (11110) that Authorized the US Treasury to Issue Silver Certificates, Threatening the Federal Reserve’s Monopoly on Money
This government issued currency would bypass the governments need to borrow from bankers at interest.
1963 Electronic calculator
1963 Nov. 22, Kennedy Assassinated
1963 Johnson Reverses Kennedy’s Banking Rule and Restores Power to the Federal Reserve
1964 LAN, Local Area Networks adapters
1965 Moore’s Law by CEO of Intel Gordon Moore observes that the number of components per integrated circuit doubles every year, and projected this rate of growth would continue for at least another decade. In 1975 he revised it to every two years.
1967 First ATM installed at Barclay’s Bank in London
1968 Cassette Player introduced
1969 First connections of ARPANET, predecessor of the internet, are made. started – SF, SB, UCLA, Utah (now Darpa) – made to stay ahead of the Soviets – there were other networks being built around the world but it was very hard to connect them – CERN in Europe
1970s Stagflation – unemployment + inflation, which Keynesian theory could not explain
1970s Business/commercial applications for Crypto emerge – prior to this time it was militarily used – ATMs 1st got people thinking about commercial applications of cryptography – data being sent over telephone lines
1970s The public developments of the 1970s broke the near monopoly on high quality cryptography held by government organizations.
Use of checks increased in 70s – bringing about ACH
One way functions...
A few companies began selling access to private networks – but weren’t allowed to connect to the internet – business and universities using Arpanet had no commercial traffic – internet was used for research, not for commerce or advertising
1970 Railroads threatened by the growing popularity of air travel. Penn Central Railroad declares bankruptcy resulting in a $3.2 billion bailout
1970 Conjugate coding used in an attempt to design “money physically impossible to counterfeit”
1971 The US officially removes the gold standard
1971 Email invented
1971 First microcomputer on a chip
1971 Lockheed Bailout - $1.4 billion – Lockheed was a major government defense contractor
1972 First programmable word processor
1972 First video game console
1973 SWIFT established
1973 Ethernet invented, standardized in ‘83
1973 Mobile phone
1973 First commercial GUI – Xerox Alto
1973 First touchscreen
1973 Emails made up more than ¾ of ARPANET’s packets – people had to keep a map of the network by their desk – so DNS was created
1974 A protocol for packet network intercommunication – TCP/IP – Cerf and Kahn
1974 Franklin National Bank Bailout - $1.5 billion (valued at that time) - At the time, it was the largest bank failure in US history
1975 New York City Bailout - $9.4 billion – NYC was overextended
1975 W DES - meant that commercial uses of high quality encryption would become common, and serious problems of export control began to arise.
1975 DES, Data Encryption Standard developed at IBM, seeking to develop secure electronic communications for banks and large financial organizations. DES was the first publicly accessible cipher to be 'blessed' by a national agency such as the NSA. Its release stimulated an explosion of public and academic interest in cryptography.
1975 Digital camera
1975 Altair 8800 sparks the microprocessor revolution
1976 Bretton Woods ratified (lasted 30 years) – by 80’s all nations were using floating currencies
1976 New Directions in Cryptography published by Diffie & Hellman – this terrified Fort Meade – previously this technique was classified, now it’s public
1976 Apple I Computer – Steve Wozniak
1976 Asymmetric key cryptosystem published by Whitfield Diffie and Martin Hellman.
1976 Hellman and Diffie publish New Directions in Cryptography, introducing a radically new method of distributing cryptographic keys, contributing much to solving key distribution one of the fundamental problems of cryptography. It brought about the almost immediate public development of asymmetric key algorithms. - where people can have 2 sets of keys, public and private
1977 Diffie & Hellman receive letter from NSA employee JA Meyer that they’re violating Federal Laws comparable to arms export – this raises the question, “Can the gov prevent academics from publishing on crypto?
1977 DES considered insecure
1977 First handheld electronic game
1977 RSA public key encryption invented
1978 McEliece Cryptosystem invented, first asymmetric encryption algorithm to use randomization in the encryption process
1980s Large data centers began being built to store files and give users a better faster experience – companies rented space from them - Data centers would not only store data but scour it to show people what they might want to see and in some cases, sell data
1980s Reaganomics and Thatcherism
1980 A decade of intense bank failures begins; the FDIC reports that 1,600 were either closed or received financial assistance from 1980 to 1994
1980 Chrysler Bailout – lost over $1 billion due to major hubris on the part of its executives - $1.5 billion one of the largest payouts ever made to a single corporation.
1980 Protocols for public key cryptosystems – Ralph Merkle
1980 Flash memory invented – public in ‘84
1981 “Untraceable Electronic Mail, Return Addresses and Digital Pseudonumns” – Chaum
1981 EFTPOS, Electronic funds transfer at point of sale is created
1981 IBM Personal Computer
1982 “The Ethics of Liberty” Murray Rothbard
1982 Commodore 64
1983 Satellite TV
1983 First built in hard drive
1983 Blind signatures for untraceable payments
Mid 1980s Use of ATMs becomes more widespread
1984 Continental Illinois National Bank and Trust bailed out due to overly aggressive lending styles and - the bank’s downfall could be directly traced to risk taking and a lack of due diligence on the part of bank officers - $9.5 billion in 2008 money
1984 Macintosh Computer - the first mass-market personal computer that featured a graphical user interface, built-in screen and mouse
1984 CD Rom
1985 Zero-Knowledge Proofs first proposed
1985 300,000 simultaneous telephone conversations over single optical fiber
1985 Elliptic Curve Cryptography
1987 ARPANET had connected over 20k guarded computers by this time
1988 First private networks email servers connected to NSFNET
1988 The Crypto Anarchists Manifesto – Timothy C May
1988 ISDN, Integrated Services Digital Network
1989 Savings & Loan Bailout - After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act - This was a taxpayer bailout of about $200 billion
1989 First commercial emails sent
1989 Digicash - Chaum
1989 Tim Berners-Lee and Robert Cailliau built the prototype system which became the World Wide Web, WWW
1989 First ISPs – companies with no network of their own which connected people to a local network and to the internet - To connect to a network your computer placed a phone call through a modem which translated analog signals to digital signals – dial-up was used to connect computers as phone lines already had an extensive network across the U.S. – but phone lines weren’t designed for high pitched sounds that could change fast to transmit large amounts of data
1990s Cryptowars really heat up...
1990s Some countries started to change their laws to allow "truncation"
1990s Encryption export controls became a matter of public concern with the introduction of the personal computer. Phil Zimmermann's PGP cryptosystem and its distribution on the Internet in 1991 was the first major 'individual level' challenge to controls on export of cryptography. The growth of electronic commerce in the 1990s created additional pressure for reduced restrictions. Shortly afterward, Netscape's SSL technology was widely adopted as a method for protecting credit card transactions using public key cryptography.
1990 NSFNET replaced Arpanet as backbone of the internet with more than 500k users
Early 90s Dial up provided through AOL and Compuserve
People were leery to use credit cards on the internet
1991 How to time-stamp a digital doc - Stornetta
1991 Phil Zimmermann releases the public key encryption program Pretty Good Privacy (PGP) along with its source code, which quickly appears on the Internet. He distributed a freeware version of PGP when he felt threatened by legislation then under consideration by the US Government that would require backdoors to be included in all cryptographic products developed within the US. Expanded the market to include anyone wanting to use cryptography on a personal computer (before only military, governments, large corporations)
1991 WWW (Tim Berners Lee) – made public in ‘93 – flatten the “tree” structure of the internet using hypertext – reason for HTTP//:WWW – LATER HTTPS for more security
1992 Erwise – first Internet Browser w a graphical Interface
1992 Congress passed a law allowing for commercial traffic on NSFNET
1992 Cpherpunks, Eric Hughes, Tim C May and John Gilmore – online privacy and safety from gov – cypherpunks write code so it can be spread and not shut down (in my earlier chapter)
1993 Mosaic – popularized surfing the web ‘til Netscape Navigator in ’94 – whose code was later used in Firefox
1993 A Cypherpunks Manifesto – Eric Hughes
1994 World’s first online cyberbank, First Virtual, opened for business
1994 First DVD player
1994 Stanford Federal Credit Union becomes the first financial institution to offer online internet banking services to all of its members in October 1994
1994 Internet only used by a few
1994 Secure Sockets Layer (SSL) encryption protocol released by Netscape. Making financial transactions possible.
1994 One of the first online purchases was made, a Pizza Hut pepperoni pizza with mushrooms and extra cheese
1994 Cyphernomicon published – social implication where gov can’t do anything about it
1994-1999 Social Networking – GeoCities (combining creators and users) – had 19M users by ’99 – 3rd most popular after AOL and Yahoo – GeoCities purchased by Yahoo for $3.6B but took a hit after dotcom bubble popped and never recovered – GC shut down in ‘99
1995-2000 Dotcom bubble – Google, Amazon, Facebook: get over 600M visitors/year
1995 MP3 term coined for MP3 files, the earlier development of which stretches back into the ‘70s, where MP files themselves where developed throughout the ‘90s
1995 NSFNET shut down and handed everything over to the ISPs
1995 NSA publishes the SHA1 hash algorithm as part of its Digital Signature Standard.
1996, 2000 President Bill Clinton signing the Executive order 13026 transferring the commercial encryption from the Munition List to the Commerce Control List. This order permitted the United States Department of Commerce to implement rules that greatly simplified the export of proprietary and open source software containing cryptography, which they did in 2000 - The successful cracking of DES likely helped gather both political and technical support for more advanced encryption in the hands of ordinary citizens - NSA considers AES strong enough to protect information classified at the Top Secret level
1997 WAP, Wireless Access Point
1997 NSA researchers published how to mint e cash
1997 Adam Back – HashCash – used PoW – coins could only be used once
1997 Nick Szabo – smart contracts “Formalizing and Securing Relationships on Public Networks”
1998 OSS, Open-source software Initiative Founded
1998 Wei Dai – B-money – decentralized database to record txs
1998 First backdoor created by hackers from Cult of the Dead Cow
1998 Musk and Thiel founded PayPal
1998 Nick Szabo says crypto can protect land titles even if thugs take it by force – said it could be done with a timestamped database
1999 Much of the Glass-Steagal Act repealed - this saw US retail banks embark on big rounds of mergers and acquisitions and also engage in investment banking activities.
1999 Milton Friedman says, “I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that's missing, but that will soon be developed, is a reliable e-cash - a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A.”
1999 European banks began offering mobile banking with the first smartphones
1999 The Financial Services Modernization Act Allows Banks to Grow Even Larger
Many economists and politicians have recognized that this legislation played a key part in the subprime mortgage crisis of 2007.
1999-2001 Napster, P2P file sharing – was one of the fastest growing businesses in history – bankrupt for paying musicians for copyright infringement
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