 Yeah, thank you very much. Yeah, my name is Phillips under. It's very nice the organization. I uploaded this file. I don't know five minutes ago and it's already there So this is really Nice and nobody noticed it. It looks like it has been prepared weeks ago, right? It just was finished five minutes ago So therefore it's really nice to have this Conference organized so so well. Actually, I'm not talking about crypto economics because at this point of time I think it's too it's okay to discuss all these topics, but it's also foundational research in Germany I would call it Grundlagenforschung and therefore we also need to think about what we can implement now Research in blockchain is in a in my mind in a very very early stage and the reason for this is also because Yeah, the topic in all is very new. I think everybody knows this, but also you have state funded Institutions such as Fraunhofer, Max Blank and others and these are because they are state funded They will not change on the short term So you can we can do all kinds of research and discuss things But you cannot change these structures, which are probably even even more slowly changing than financial organizations in like the larger banks and therefore I think It's very important to discuss these topics But we should have in mind that these incumbents if we call it that way Are state funded and with this they cannot change I would say not in the next five to ten years Yeah, I'm from the Frankfurt School of Finance and Management from the business faculties in Germany So from the business schools in Germany, there are four hundred. We are among the top five now So it's a quite good university, but I always have to mention this because people don't know it We founded the blockchain center approximately two years ago over Christmas two years ago and Since that I think we work quite nicely. We have been the first University in Germany doing this with with quite some breath and now also others for example The mid-biter people are doing a brilliant job. They are also joining this game So you see here also that that research and also universities are joining this field You see quite much happening in all kinds of disciplines law business computer science And so on you see also here on the right hand side that what we are doing is not just Banking and finance. We are also working on topics such as industry 4.0 And the Internet IoT Internet of Things topic So it's quite broad and actually when I have to present ourselves very very quickly I always say that we are like found over Maybe you know and you know Fraunhofer Fraunhofer is an institute which provides consulting services Which provides a platform which also provides seminars workshops and conferences and we are actually exactly like them But of course much much much much smaller, but also much more focused. Yeah, but it's from an image We are not just doing research. We are not just doing lecturing We are more applied research similarly like Fraunhofer Yeah, so how how will blockchain change the way research will be done in the future and what is future I would say it's at least plus five years from now. Maybe plus 10 years We always have to this define it because I like all the token Stuff and the crypto economics, but it's we need quite some years until we get there and until these things will actually be adopted So if you have a look at how research is being done now I think nearly everybody in the room knows this you have the government who is paying money you have researchers such as PhD students professors Research groups and so on they are getting money and in between you have a research associations or research organizations such as for example universities German research Society DFG Max Planck and all these huge organizations and typically They cost 30 to 45 percent of the money So the state spends spends a 50 million and the researchers in total gets a 30 million because the structure costs money And with this you could now say that these organizations in between they are factually intermediaries Similarly like banks stock exchanges Similarly like platforms such as uber you know all these stories, but actually research So organizations like them are nothing else than intermediaries. They take money they are rooting it to the to the researchers and of course they need a share to live and they Like it. Yeah, they justify the money which they need for operations, which is absolutely fine Because they are selecting a research. They need to filter many proposals. So they are doing a good work You know, that's I have to say this definitely But at the same time the structure of course costs really a lot of money and in percentage point I would estimate it to be 30 percent or 45 percent. Yeah, there are studies out there, but it's the same with charity found Institutions you have now Christmas coming. You have charity Organizations you send 100 euro they should come to Africa and the structure costs say 20 percent or 30 or 45 percent Because the structure needs to be operated and I think blockchain will take some years, but it will change this Definitely, so how would it work? You all know this you have a blockchain structure in the middle It's the key here is the register function the register function provides the possibility to store Assets this can be of course Bitcoin, but it can also be the euro it can be tokens it can be ICOs whatever and this structure is nothing else than the new intermediary and If you now apply the logic from banks and financial organizations to research organizations, then you would now see these research Organizations very importantly not being replaced, but they have to change their business model similarly to banks We will also have banks in the future, but they are not doing the transactions This will be done by blockchain technologies, but they will provide a gateway into the blockchain and I would assume now that Organizations like Fraunhofer, Max Blank and all these large research organizations They should provide some kind of gateway into blockchain infrastructure for example for doing Filtering screening of research proposals and so on as they are doing it now, but the administration part You know like taking money rooting it to the researchers are then being Yeah, should be done from an operations perspective by blockchain technology I learned about this project yesterday. It's called blockchain technology research institute You don't need to note it down at this point of time because it's very very very small It's created by two three researchers in Frankfurt and they they would like to do independent research But they don't have money and therefore they have created their website and here you see how you can participate You can for example here send money to them and this is what you get you get tokens I would assume Nina maybe you can clarify this later on that these are donation tokens And and then there is some quite interesting law applying because you don't have these classical rules applying I'm not a lawyer, but according to two people in in law the donation tokens are very Fascinating so this could be a donation token and you see here what that what you get for your money You get independent research So you get also some basic results and you of course you get access to the research results And you get good karma and the question is now is this enough is this enough Actually, no because there are no transactions coming in so the point is here that you see that is an early Experiment which could work in the future, but probably what these guys are offering you can see it here It might not be enough yet because maybe you need to sell it more clear for example with access to data or access to other things To make it more plastic such that you can grasp it in a more in a better way And then maybe it would work in a better way, but fair enough these guys are doing this now since One or two months so time is very very early But I like the idea of just saying so hey we are doing research if you wish please send us your money But apparently so far it's not working yet. So in the future I Could imagine that it works like as follows so you have researchers on the right-hand side you have Those companies or organizations providing money on the left-hand side. They provide money and they get Results and data for it. Yeah, so this way we are like in the best of all blockchain worlds Which are which is about monetization of data. So you have data out there This can be monetized typically we talk about IOT sensors But you could also monetize the data coming from a PhD student who is writing his Research about a specific topic and then he is providing exclusivity for money for example And the money is higher when exclusivity is more strong for example, and there is a company here in in Berlin called Weave I think it's opposite of The river not far from here and they are doing exactly the same architecture in the IOT space They are providing a blockchain layer for data tokenization and data monetization Then they provide an IOT layer for connecting the physical world and the blockchain world and above all they have to a Data marketplace where you can sell and buy your data And I would think so but nobody has done it in detail that research in the future could work in a similar way So you would have something like an ethereum backbone for financial Transactions then you have an weave network protocol in a similar way, which is organizing the way research is being done you know milestones funding Mechanisms and so on and above this in yellow similarly you would have specific technical devices providing data But you could also have PhD students professors or research organizations which are then Working on specific tasks according to the protocol, which is organizing research I'm not sure if if there's so much work in this area probably some early startups But organizing research through protocols would be very very very fascinating But it's I think quite quite strong in the future and therefore the question would then be will Yeah intermediary such as Max Planck and so on will they become obsolete? I would say no because you still need experts for filtering and Screening start research proposals. I think this is very important. I'm not sure if this can be really outsourced to the crowd And therefore I think it's it's going a similar way like the banking industry where there for example the banks also need To change but they but they will survive more or less Yeah, so what do we need to achieve this? I think at the end of the day, of course you need as I said Specific protocols for research but underlying this you need to have money on blockchain systems And at the end of the day trip to currencies are not enough You also need to have the euro on a blockchain system and the reason for it is very simple because if the government Government spends money this money is being spent in euro and not in Bitcoin. So you still you definitely need to the The euro there is no way to simply operate this with ICOs Crazy trip to currencies and Bitcoin. So what I present to you now is coming I like actually from the financial world, but it's perfectly applicable also to the research area. So what you see here is Ethereum I have to clearly mentioned that Ethereum is just one word here. It could also be EOS. It could be an banking consortium or whatever But Ethereum is well known and therefore I have put Ethereum here So why do you need either because you need to pay for asset transfer? I think everybody knows this So once you want like to to transfer a specific amount of money You need to pay approximately one US dollar cent to get this transactions being done Alternatively you can pay for business processes. These are Called smart contracts. I think most of the people here in the room are knowing this and smart contracts are looking like follows So this is a very very basic smart contract for doing an Money transfer and I think research and the way research is being Yeah, put in a protocol in the future perhaps would also be organized in such smart contracts But I think this is a very very strong effort, which is very difficult project because you have to Yeah, reconcile many many many standards in the world to to arrive at one joint software code Which is then able to be a protocol for research But if this works you can then have ESE 20 tokens and with ESE 20 tokens You can create second-order crypto currencies on top of Ethereum Everybody knows this it's called ICO and if this works then people are now starting and I think this is getting really exciting They are starting to put traditional currencies on top of Ethereum. So you have the the project stars is which is now We are three four months old and they are putting the euro in an ESE 20 format And with this they have tokenized the euro, which means they are taking at this point of time 12 million traditional euro put it on an escrow account It's basically safeguarded by auditors and and the bank and in the volume of 12 million They are creating 12 million tokens of crypto euro and with this you now have the euro on Ethereum You stabilize the prices at exchanges at exactly 1.00 and then you have one crypto euro being equal to one Traditional euro and I think this is exactly what you need because this is the payment infrastructure You will also have to have in the research world. I don't believe in Coins and tokens for research funding, but you need to have to euro and therefore I think This goes into exactly the rate the same Direction people are also working on putting stocks and all kinds of financial Instruments on top of Ethereum and most interesting in the future. This has not been done yet But people are trying it you could also put research projects on top of Ethereum You put the milestones in a smart contract and you not just put one Research project on top of Ethereum, but you put say 50 or 500 Research projects on Ethereum and then you could ask people to invest or fund these research project Using the crypto euro on top of Ethereum. So this is the underlying Euro layer or Transactional layer you need to have otherwise blockchain based on or research based on blockchain will not work And the fascinating thing then is that you can exchange everything with everything a US person could invest US dollar into a German research project a South Korean state funding Organization could co-invest in the German University. So you have all kinds of people providing money and all kinds of research Projects consuming money and they would then all operate on the Ethereum platform So this would then allow some kind of seamless funding same with financial markets of all kinds of projects on one platform On a worldwide level. I think this is very important. There are no intermediaries. So no Fraunhofer and Max Planck institutes as we know them, but they would change their role being gateways and of course you would also have more easier reporting and so on and Similarly to the financial sector you would then have funds which are collecting stocks and providing for example a fund Which can be investing in say the all German companies and similarly you could now and that's getting really exciting You could now create funds for research and these funds are Sending money to all research projects in the area of say climate change And then all projects classified that way on a worldwide level would receive a specific amount of money by this kind of Fund fund which is sitting on top of the single research projects But this is probably even 15 years from now on. Yeah, and to close this short speech I would quickly highlight this initiative which we have started We we see that many many many tokens are being created. That's basically the vision behind this You it's not just ICOs. You also have the crypto euro. You have US dollars with Frank and everything being sitting on the blockchain in the future And as I said, it does not need to be Ethereum could also be EOS and Or an banking consortium You have thousands of stocks in the future on blockchain basis and also probably hundreds of thousands of research projects So there will be millions of coins as the CEO of Binance has said it there will be millions of coins And at the same time these token markets are lacking market standards And for this reason we are currently creating an association and I'm saying I'm I'm presenting this example because I think After some first weeks we have gained some positive feedback because we are setting it up like by definition as a non-profit Association and this makes it very easy for people to contribute Yeah So it's it's not an issue that people would like to contribute and pay say an annual fee of 50 euro or 100 euro But by really focusing on a non-profit character of an association People also feel that this is similarly to the open source approach making it broad very quickly And because with all what you see here on the slide you could have also formed a company But we decided to make a non-profit association out of it Yeah, and because there will be millions of tokens you need to have a unique identifier already now you have Bitcoin With multiple Appriviations some call it BTC others call it XTC and so you already already have confusion there on coin market cap The symbol is not unique. So you have a couple of coins which are using the same symbol. Yeah, this should not happen So we are providing or the association will provide an an it in number Which is providing a unique token identification number and it will also provide a classification framework There are many classification frameworks out there But so far there are not many people out there who have already classified 800 assets as we have done with the association. So we went through coin market crap kept from time Position one to position 800 and classified these 800 assets according to the classification and all this data will then be provided More or less for free in a database such that people can use it as soon as possible Why am I showing you this because it it seems to work and a structure like this could also work For pushing the topic of research in blockchain. I'm not jumping over this. I'm also jumping over this So what did we do here in in detail? We are saying that like others the classification scheme for tokens has four dimensions one is the economic purpose. So is it What is the reason of the token? Why does it exist then the second one is the technological center What's behind from a technological perspective? Then the third one is the legal claim. So in case you would have a research project focusing on simple donations Then you would not have a legal claim here and the fourth point is an industry classifications as we know it from existing stock markets So the economic purpose is split it as usual in three domains You have payment tokens which can be the Bitcoin which is an unpacked payment token or the crypto euro Which would be a packed payment token, then you have all the utility tokens That's basically the ICOs of the past 18 months And you also have an investment token. We did not call it security token because security token implies a local route in a specific legislation And therefore because so far we are focusing on the economic purpose We stayed away from the word security token and therefore called it Investment token there are not many out there, but you see already now that the number of tokens in this class category The categories called EP03 Is rising the technical setup at this point of time differentiates between native Infrastructures this would be Ethereum and Bitcoin and second order infrastructures, which would be ICO smart contracts placed on top of first-order structures Legal claim is fascinating because of course you have many projects out there where there is no claim This could be donation tokens, but also pure protocol tokens Then you also have some relative rights out there This would be the crypto euro where you have a right for the collateral Which is stored on the escrow account and in the future there might also be absolute rights tokens Yeah, this would be one Analyzes how Bitcoin is now classified including the the TCF classes as we call them And it shows now according to first statistics that the economic purpose is mostly utility tokens That's basically 18 months of ICOs being now through the system And now you already see that five percent are investment tokens even though they are not classified as security tokens mostly Yeah, so you see that some tokens are clearly investment tokens, but they worked Legally around the requirements such that they are utility tokens from a legal perspective You always need to differentiate the economic purpose and the legal situation and from a technological setup perspective You see here that like one third. That's yellow one third of all tokens are first-order crypto currencies That's Bitcoin, Ethereum and other networks and 57 percent are ESC 20 tokens So you see also here that Yeah Ethereum is the platform for ICOs. There is no other significant platform out there. Yeah with this I would like to close I hope I didn't extend the time too much And we do the questions later on, right? Okay, so note them down, please and Yeah, thanks very much. Thank you, Dr. Phillip