Dr. Antonín Pavlíček
Department of System Analysis
Exploring the Crypto
The Promises and Pitfalls Critical
Analysis
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2
• Cryptocurrencies, blockchain technology, and non-fungible tokens (NFTs)
have captured significant attention and investment in recent years. While
they have undoubtedly revolutionized various industries and financial
sectors, it is essential to critically assess these concepts and consider
potential reasons why they may not work or could potentially fail. This
lecture proposal aims to provide a balanced exploration of the strengths
and weaknesses of cryptocurrencies, blockchain, and NFTs, fostering a
deeper understanding of their implications.
• The main aim is to engage the audience in a thought-provoking discussion
on the future of cryptocurrencies, blockchain, and NFTs.
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3
Possible discussion points
• Regulatory issues and legal concerns
• Volatility and speculative nature
• Market bubbles and speculation
• Security vulnerabilities and fraud
• Scalability and performance issues
• Energy consumption and sustainability
• Governance and centralization challenges
• Long-term value and sustainability
• Ethical and cultural considerations
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4
Main problem – no real use cases
• Blockchain - math works, but how about use cases?
• Cryptocurrencies
• The biggest technologial Revolution of the internet / Greatest ponzi scheme of the history
• ICOs
• Thousands of „get rich schemes“, no real use
• NFTs
• Milions of „get rich schemes“, no real use
• Web3
• No functional use case – most are hypothetical
• Smart contracts
• No functional use case at all so far
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5
Main features of Bitcoin
• Digital Currency: Bitcoin is a decentralized digital currency that exists solely in
electronic form. It is not physical like traditional money (e.g., coins or paper bills) and
operates on a peer-to-peer network.
• Decentralized Network: Bitcoin operates on a decentralized ledger called the
blockchain. This ledger is maintained by a network of nodes (computers) spread across
the world, making it resistant to centralized control.
• Cryptographic Security: Bitcoin transactions are secured using cryptographic
techniques. Private keys are used to sign transactions, ensuring the integrity and
authenticity of each transaction on the blockchain.
• Limited Supply: Bitcoin has a capped supply of 21 million coins, which makes it
deflationary in nature. This scarcity is programmed into the system, with new bitcoins
being created through a process called mining, but at a decreasing rate over time.
• Digital Asset and Investment: Beyond being a digital currency, Bitcoin is also
considered a store of value and an investment asset by many. Its price has experienced
significant volatility, leading to both opportunities and risks for investors.
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6
WHAT IS BLOCKCHAIN?
Blockchain is a technology that:
• permits transactions to be
gathered into blocks and
recorded
• cryptographically chains blocks
with a hash in chronological
order; and
• allows the resulting ledger to be
accessed PUBLICLY.
Is it real technological
disruptor or just a hype?
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7
Recapitulation – Cryptography and Hash
Two basic mathematical principles in the foundations
of any blockchain
Cryptography
• asymmetric – pair of keys: public – encryption / private – decryption
• In Blockchain is public used for „addressing“ and private for „authorization“ of
transactions.
• Hash function - one-way function which gives unique hash value to
any given input.
• In Blockchain is used to „lock“ blocks together.
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8
HOW THE BLOCKCHAIN WORKS
• "Blockchain" is defined as a data structure storing information in blocks forming a chain, where the new blocks are
linked to previously generated blocks. It is a sequence of hash-chained records, where a block is a digital container
for transactions, contracts, property titles, etc.
Figure 1 Major components in blockchain systems.
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9
BLOCKCHAIN PROMISES
•gives users assurance that information stored, such as certificates, has not been changed
•can reduce transactional obscurity, insecure states, and dubiousness by providing complete transaction
disclosure and the supplementation of homogeneous and verified facts across all network members
Increased trust in value exchange
•where the government or cyberterrorists would be unable to pass through the personalized ledger designed for
personal use
Resistance to censorship and immutability
•lowers transaction costs and reduces the need for well-known and trustworthy third parties
•enables users of blockchain technology to avoid relying on third parties for transaction and asset security
Efficient, consistent transactions between participants
Decentralization, persistency, anonymity, and auditability
No single point of failure
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10
POSSIBLE AREAS OF USE CASES
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Recapitulation – Blockchain principles
• Main idea is to solve double spending problem in the decentralized /
distributed system, where actors don‘t trust each other.
• Achived through block authorization
• Distributed ledger technology
• Peer2peer, with „nodes“ who authorize correctness
• Consensus building
• Proof of work / Proof of stake / Proof of history / Proof of cover
• Advantages / Disadvantages / Troubles
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Blockchain – case studies and possible uses
• IoT
• Smart Appliances and metering
• IoT monitoring
• Cross-border transactions
• Medicine
• Clinical trial tracking
• Public sector
• Digital voting
• Transparent budgeting
• Personal identity protection
• Digital IDs (birth, marriage, death certificates, passports, …)
• Wills and Inheritances
• Gaming industry (play to earn schemes)
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13
What is wrong with blockchain?
• It is just another append only database system.
• Proof of work – too slow, estremely wasteful
• Proof of stake – never used in great scale, monopolistic tendencies
• Size of blockchain itself is horrendously small / big
• Trouble with node consensus – forking, …
• Publicity of the data
• Promises to replace central authority, but creates new „big
players“ anyway
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14
What is wrong with blockchain?
1. Scalability Issues: Blockchain networks, especially public ones like Bitcoin and Ethereum, can struggle with scalability. As more
transactions are added to the blockchain, the network can become congested, leading to slower transaction processing times
and higher fees. This scalability challenge needs to be addressed to accommodate mass adoption.
2. Energy Consumption: Proof-of-work (PoW) blockchains, like Bitcoin and Ethereum, require significant computational power and
energy consumption for mining activities. This has raised concerns about the environmental impact and sustainability of
blockchain technology. Efforts to transition to more energy-efficient consensus mechanisms like proof-of-stake (PoS) are
ongoing.
3. Security Concerns: While blockchain technology is often praised for its security, it is not immune to attacks. 51% attacks, doublespending
attacks, and smart contract vulnerabilities have all been documented. Additionally, the security of a blockchain heavily
relies on the security of private keys, which can be compromised through various means.
4. Lack of Regulation: The decentralized and global nature of blockchain makes it challenging for regulators to enforce consistent
rules and protections. This can lead to legal and regulatory uncertainties, which can hinder broader adoption and investment in
blockchain projects.
5. User Experience: Blockchain and cryptocurrency applications often have a steep learning curve for non-technical users.
Managing private keys, understanding transaction fees, and navigating complex wallet interfaces can be intimidating for
newcomers.
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15
What is wrong with blockchain?
1. Interoperability: Different blockchain networks often operate in isolation, making it difficult for them to
interact and share data seamlessly. Interoperability solutions are still evolving to address this challenge.
2. Privacy Concerns: While blockchain transactions are typically pseudonymous, they are also transparent
and permanently recorded on the public ledger. This can raise privacy concerns, especially as companies
and governments explore blockchain applications.
3. Legal and Regulatory Challenges: Blockchain technology faces a patchwork of regulations and legal
considerations around the world. Issues related to taxation, securities laws, and anti-money laundering
(AML) compliance can pose significant challenges to blockchain-based businesses.
4. Adoption Hurdles: Convincing established industries and institutions to adopt blockchain technology can
be difficult due to resistance to change, the need for industry-wide standards, and concerns about security,
scalability, and cost-effectiveness.
5. Governance Issues: Decentralized blockchains often rely on complex governance models to make decisions
about upgrades and changes. Disagreements among stakeholders can lead to contentious hard forks,
potentially splitting the community and undermining the stability of the network.
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16
Cryptocurrencies
• Bitcoin/Ethereum
• Currency or speculative assets?
• Technological limitations of the system
• Security – Privacy - Anonymity
• Current market – its value and fluctuations
• Stablecoins – Tether et at.– is it real solution?
• Legal aspects of cryptocurrency
• Alternative cryptocurrencies
• ICOs
• Scam or real thing?
• Is it real technological disruptor or just a hype?
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17
Legal problems of cryptocurrencies
• Some governments are forbidding it 
• Is it currency? Is it goods? Is it financial tool? Is it asset?
• Taxation?
• Income tax
• VAT tax
• Can you insure it?
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Problems of cryptocurrencies
Cryptocurrencies, while offering numerous advantages, also face various problems and challenges, which can
impact their widespread adoption and stability. Here are some of the key issues:
1. Regulatory Uncertainty: Cryptocurrencies operate in a regulatory gray area in many countries.
Governments and regulatory bodies are still developing frameworks for their use, which can lead to
uncertainty for users and businesses.
2. Volatility: Cryptocurrency prices are highly volatile, which can be a barrier to their adoption as a stable
store of value or medium of exchange. Investors can experience significant gains or losses in a short period,
making cryptocurrencies a risky asset class.
3. Security Risks: Cryptocurrencies rely on digital wallets and private keys for security. If these keys are lost or
stolen, funds can be irretrievably lost. Hacks and fraud in the cryptocurrency space are also a concern.
4. Scalability: Many cryptocurrencies face scalability challenges. As transaction volumes increase, networks
can become congested, leading to slow confirmation times and high transaction fees.
5. Lack of Consumer Protection: Unlike traditional financial systems, cryptocurrencies generally do not offer
the same level of consumer protection. There are limited options for recourse in the event of fraud or
disputes.
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19
Problems of cryptocurrencies
1. Adoption Barriers: Cryptocurrencies are not yet widely accepted as a means of payment. Limited merchant adoption and the need for improved
user-friendly interfaces can hinder their use for everyday transactions.
2. Environmental Concerns: Proof-of-work (PoW) cryptocurrencies like Bitcoin require substantial energy consumption for mining. This has raised
concerns about their carbon footprint and sustainability.
3. Market Manipulation: Cryptocurrency markets are relatively young and can be susceptible to price manipulation and pump-and-dump schemes.
Lack of regulation exacerbates this issue.
4. Privacy Concerns: While some cryptocurrencies offer enhanced privacy features, many are pseudonymous, and transactions can be traced on public
ledgers, raising privacy concerns.
5. Legal and Taxation Challenges: Cryptocurrency taxation laws can be complex and vary by jurisdiction. Compliance can be challenging, leading to
potential legal issues for users and businesses.
6. Technology Risks: Cryptocurrencies and blockchain technology are still relatively new and evolving. Technical vulnerabilities, software bugs, and
hard forks can lead to network disruptions and loss of funds.
7. Use in Illicit Activities: Cryptocurrencies have been associated with illegal activities, including money laundering, ransomware attacks, and the dark
web. This has led to increased scrutiny from law enforcement agencies.
8. Interoperability: Different cryptocurrencies and blockchain networks often operate independently, limiting their ability to interact and share data
seamlessly.
• Despite these challenges, cryptocurrencies have garnered significant interest and investment, and ongoing efforts within the crypto space aim to
address many of these issues. As the technology matures and regulatory frameworks become clearer, cryptocurrencies may find wider acceptance
and integration into traditional financial systems.
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20
Where the bitcoin is mined?
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21
Smart contracts
• Principles and technological limitations
• Legal status
• Case studies and possible uses
• Financial Services
• Insurance
• Investment management
• Financial data recording and management
• Supply chain management
• Copyright management
• Property ownership transfer
• Is it real technological disruptor or just a hype?
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22
Smart contracts - challenges
• Size of block is small (for bigger capacity needs more blocks)
• Functionality is actually very limited
• Usually only link to http or peer-to-peer network (link rot)
• Can not change errrors in code - minting new contracts is very
expensive (ConstitutionDAO)
• There are better ways to solve the problems
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23
Smart contracts - challenges
Smart contracts, which are self-executing agreements with the terms of the contract directly written into code, offer many benefits but
also face several problems and challenges:
1. Immutability: Smart contracts are typically immutable once deployed on a blockchain. If there's a coding error or a need for
contract modification due to changing circumstances, it can be challenging to make amendments.
2. Security Vulnerabilities: Coding errors or vulnerabilities in smart contracts can lead to exploits, hacks, and loss of funds. Examples
include the infamous DAO (Decentralized Autonomous Organization) hack and various vulnerabilities in DeFi (Decentralized
Finance) protocols.
3. Complexity: Developing complex smart contracts can be challenging, and even experienced developers can introduce errors. The
complexity of financial and business logic can make audits and testing difficult.
4. Oracles and External Data: Smart contracts typically rely on external data sources (oracles) to make decisions or execute actions
based on real-world events. Ensuring the accuracy and reliability of these oracles can be a challenge.
5. Legal and Regulatory Uncertainty: The legal status of smart contracts is still evolving. Depending on the jurisdiction, they may not
always be legally enforceable, and disputes related to smart contracts may pose unique legal challenges.
6. Scalability: As more smart contracts are deployed on a blockchain network, it can lead to congestion and scalability issues. This can
result in higher fees and slower transaction processing times.
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24
Smart contracts - challenges
1. Privacy: Many blockchain networks are transparent, and smart contract data is publicly accessible. This lack of privacy can be
problematic for applications that require confidentiality, such as sensitive business agreements.
2. Upgradability: The immutability of smart contracts can hinder their ability to adapt to changing business needs or evolving
technology. Developing mechanisms for safe and controlled contract upgrades is a challenge.
3. Interoperability: Smart contracts built on different blockchain platforms may not be compatible with each other, limiting their
usefulness in a multi-chain ecosystem.
4. User Experience: Interacting with smart contracts can be complex for non-technical users. Improving the user interface and
experience is crucial for broader adoption.
5. Standardization: The lack of standardized development practices and contract templates can make it challenging to create
interoperable and reliable smart contract systems.
6. Costs and Gas Fees: Executing smart contracts often incurs gas fees, which can be expensive during times of network congestion.
This can be a barrier to entry for users and businesses, especially in developing regions.
7. Human Error: While smart contracts aim to eliminate the need for intermediaries, the process of deploying and interacting with
them still relies on human actions. Errors in key management or transactions can lead to irreversible losses.
Addressing these challenges requires ongoing research, development, and collaboration within the blockchain and smart contract
development community. As the technology matures, solutions to many of these issues are likely to emerge, making smart contracts
more reliable and versatile.
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25
NFTs problems
• Principles and technological limitations
• Ownership/Uniqueness/Scarcity/Community
• NFT vs copyright
• Legal status, liability, regulation
• History, famous cases, 2022 crash
• Marketplaces and platforms
• Troubles and scams in NFT world
• Monetization pyramid scheme?
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26
The biggest NFT sales worldwide (March, 2021)
The 50 biggest NFT sales worldwide as of March 16, 2021 ETH
USD
(in 1,000)
Beeple Everyday: The First 5000 Days (Mar 11, 2021) 38474 69346
CryptoPunk 7804 (Mar 11, 2021) 4200 7821
CryptoPunk 3100 (Mar 11, 2021) 4200 7574
Beeple CROSSROADS (Feb 25, 2021) 4152 6600
CryptoPunk 6965 (Feb 19, 2021) 800 1546
CryptoPunk 4156 (Feb 18, 2021) 650 1199
CryptoPunk 2140 (Mar 02, 2021) 750 1069
CryptoPunk 6487 (Feb 22, 2021) 550 1052
hairy #1/1 (Mar 14, 2021) 543 1036
CryptoPunk 3393 (Mar 13, 2021) 500 884
CryptoPunk 2140 (Feb 22, 2021) 400 774
CryptoPunk 2890 (Jan 23, 2021) 605 747
CryptoPunk 3011 (Mar 12, 2021) 400 721
CryptoPunk 1839 (Mar 12, 2021) 360 649
Hashmask 9939 (Feb 02, 2021) 420 640
CryptoPunk 3609 (Mar 05, 2021) 369 585
The EverLasting Beautiful by FEWOCiOUS #1/1 (Mar 08, 2021) 336 566
CryptoPunk 5234 (Mar 04, 2021) 350 554
CryptoPunk 2681 (Feb 19, 2021) 277 535
Beeple Everydays - Raw #1/100 (Mar 13, 2021) 299 527
Hashmask 6718 (Feb 04, 2021) 300 498
Boardwalk #1/1 (Feb 20, 2021) 238 466
Aku.001 - The Vault #1/1 (Feb 23, 2021) 186 332
Beeple Everydays - Raw #19/100 (Feb 25, 2021) 204 324
The Smintons #1/1 (Jan 21, 2021) 236 314
INFECTED #67/123 (Feb 26, 2021) 176 268
Salvavidas #1/1 (Mar 13, 2021) 143 251
Afraid to Be Myself #5/5 (Feb 26, 2021) 153 233
Heroines - Weight Of The World (Mar 06, 2021) 149 230
BULL RUN #145/271 (Mar 11, 2021) 120 219
INFECTED #40/123 (Mar 11, 2021) 119 218
THE 5000 DAY SELECTS (Mar 12, 2021) 119 217
Everything's Fine #6/21 (Mar 10, 2021) 116 212
THE 5000 DAY SELECTS (Mar 13, 2021) 120 211
BULL RUN #238/271 (Mar 11, 2021) 115 211
BULL RUN #188/271 (Mar 11, 2021) 115 211
Queeny (Mar 03, 2021) 140 208
Real Ghost #1/1 (Mar 04, 2021) 122 195
BULL RUN #148/271 (Mar 11, 2021) 101 185
INTO THEER #156/207 (Mar 09, 2021) 101 180
The Bitcoin Angel #1/1 (Feb 28, 2021) 115 173
Cubist Satoshi #1/1 (Feb 28, 2021) 115 173
Beeple Everydays - Raw #76/100 (Mar 15, 2021) 92 172
The First Ever Edition Of Rick And Morty Cryptoart #1/1 (Jan 20, 2021) 122 172
BULL RUN #174/271 (Mar 11, 2021) 92 168
INTO THEER #196/207 (Feb 25, 2021) 101 160
AI Generated Landscape Painting #4 (Mar 06, 2021) 100 154
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27
NFT sales value in the art segment worldwide in the last 30 days May 2022 (in 1,000 U.S. dollars)
Note(s): Worldwide; April 15, 2021 to April 15, 2022; figures refer to the aggregated number of sales recorded on the Ethereum, Ronin, and Flow blockchains during the previous
30 days
Further information regarding this statistic can be found on page 8.
Source(s): NonFungible; ID 1235263
0
100 000
200 000
300 000
400 000
500 000
600 000
700 000
800 000
Apr 15,
2021
May 15,
2021
Jun 15,
2021
Jul 15, 2021 Aug 15,
2021
Sep 15,
2021
Oct 15,
2021
Nov 15,
2021
Dec 15,
2021
Jan 15, 2022 Feb 15,
2022
Mar 15,
2022
Apr 15,
2022
May 2022
SalesvalueinthousandU.S.dollars
Primary sales Secondary sales
6
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28
Crash of the NFT market in May 2022
• Data shown NFT transactions have decreased 92% in one
year.
• The popularity of NFTs appears to be in decline.
• NFT „The First Tweet“ – auctioned for almost 3 mil. USD in
2020 was auctioned for only 851 USD in 2022 week !!!
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29
Meltdown of cryptoworld in May 2022
• The price of Bitcoin, Ether and others got to its lowest point
since 2020.
• Coinbase, the large cryptocurrency exchange, tanked in value
by 20 %.
• Two major stable-currencies collapsed.
• More than $300 billion was wiped out by a crash in
cryptocurrency prices in just two days.
• Reasons? Consequences???...
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30
PROBLEMS OF NFTs
Non-Fungible Tokens (NFTs) have gained significant attention and popularity, but they also face various problems and challenges:
1. Lack of Inherent Value: NFTs derive their value from the digital or physical assets they represent, such as art, music, or
collectibles. However, some argue that NFTs themselves lack inherent value, and their prices may be driven by speculative and
hype-driven factors.
2. Copyright and Ownership: NFTs represent ownership and provenance of digital assets, but they don't necessarily grant copyright
or intellectual property rights. Copyright disputes and legal challenges can arise when the ownership of an NFT conflicts with the
rights of the original creator.
3. Piracy and Plagiarism: NFTs can be linked to digital content, making it easy for malicious actors to mint NFTs claiming ownership
of someone else's work. This raises concerns about plagiarism and intellectual property theft.
4. Environmental Impact: Many NFTs are built on blockchain networks that use energy-intensive proof-of-work (PoW) consensus
mechanisms, similar to cryptocurrencies like Bitcoin. The energy consumption associated with PoW blockchains has sparked
environmental concerns.
5. Scalability and Fees: Blockchain networks supporting NFTs, such as Ethereum, can experience congestion and high transaction
fees during periods of high demand, making it costly and slow to mint, buy, or sell NFTs.
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31
PROBLEMS OF NFTs
1. Interoperability: NFTs are often specific to particular blockchain networks, making it challenging for NFTs on one network to
interact with those on another. This lack of interoperability can limit the broader utility of NFTs.
2. Long-Term Viability: The NFT market has experienced rapid growth, but it remains uncertain whether this trend will continue or
if it represents a speculative bubble. Market volatility and uncertainty about the long-term value of NFTs can pose risks for
investors and creators.
3. Fraud and Scams: As the NFT space has gained popularity, it has also attracted fraudulent activities, including fake NFT sales,
phishing scams, and misleading marketing practices.
4. Market Saturation: The increasing number of NFT projects and marketplaces can lead to oversaturation and dilution of value,
making it harder for individual NFTs to stand out or gain recognition.
5. Cultural and Social Impacts: The commercialization of digital art and culture through NFTs can have complex cultural and social
implications, including concerns about access to art and the commodification of creativity.
6. Regulatory Scrutiny: Governments and regulatory bodies are closely monitoring the NFT space due to concerns about investor
protection, tax evasion, and money laundering. Future regulations could impact the NFT market.
While NFTs present opportunities for artists, creators, and collectors, they also face these challenges that must be addressed to
ensure their continued growth and sustainability in the digital ecosystem. As the technology evolves and matures, solutions to some
of these issues may emerge.
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32
Web3 and other concepts related to crypto
• Web3
• Decentralized internet of the future? or just another buzzword?
• Web 3.0 vs Web3
• Tokenization of the web
• Current projects of web3
• Metaverse
• Decentralized autonomous organization (DAO)
• The DAO and ConstitutionDAO vs Dash and UniSwap
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33
Use cases for blockchain technology in organizations worldwide 2021
Note(s): Brazil, China, Germany, Hong Kong, Japan, Singapore, South Africa, United Arab Emirates, United Kingdom, United States; March 24. to April 10., 2021; 1280 respondents;
senior executives and practitioners
Source(s): Deloitte; ID 878732
45%
44%
40%
40%
36%
34%
33%
32%
32%
31%
31%
31%
31%
28%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Secure information exchange
Digital currency
Asset tracking and management
Digital identification
Regulatory compliance
Financial flow traceability
Digitization of documents and recrods
Licensing and credentials
Asset tokenization
Product supply chain track and trace
Payments/trading processing
Contracts management
Internal controls
Anticounterfeiting
Share of respondents
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34
USE BY COMPANIES
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35
Real world case studies
• Usage of Cardano in Buenos Aires to create
Digital Identity Platform - published whitepaper - proposal
• Use of Cardano in Georgia to put educational credentials on
blockchain - Atala PRISM - https://atalaprism.io/app
• IBM Food Trust - modular solution built on blockchain.
Industry statistics - Blockchain
fis.en.vsefis.vse.cz/english
37
Blockchain by economic sector
• The financial sector currently accounts for about 30% of
blockchain’s worldwide market value, manufacturing (20% of the
market share), distribution and services (7%), retail (6%), public
sector (4.2%), and infrastructure (3.1%).
• Blockchain size – Bitcoin 407 GB, Ethereum 414 GB, Cardano 55 GB
fis.en.vsefis.vse.cz/english
38Markets influenced
29,7%
11,4%
10,9%
6,6%
6%
35,3%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Banking
Process manufacturing
Discrete manufacturing
Professional services
Retail
Others
Worldwide
Note(s): Worldwide; 2020; constant annual value
Further information regarding this statistic can be found on page 50.
Source(s): IDC; ID 804775
Distribution of blockchain market value in 2020, by sector
29,8%
10,3%
8,8%
6,9%
5,3%
38,9%
0% 10% 20% 30% 40% 50%
Banking
Process manufacturing
Discrete manufacturing
Retail
Professional services
Others
Europe
fis.en.vsefis.vse.cz/english
39
Top use cases for blockchain technology in terms of market share worldwide 2021
Note(s): Worldwide; 2021
Further information regarding this statistic can be found on page 8.
Source(s): IDC; ID 982566
15,9%
10,7%
10%
8,8%
7,6%
47%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Cross-border payments & settlements
Lot lineage/provenance
Trade finance & Post trade/transaction settlements
Asset/goods management
Identity management
Others
Market share
4
fis.en.vsefis.vse.cz/english
40Overview
0,95
1,5
2,7
4,5
6,6
19
0
2
4
6
8
10
12
14
16
18
20
2017 2018 2019 2020** 2021* 2024*
SpendinginbillionU.S.dollars
Note(s): Worldwide; 2017 to 2021
Further information regarding this statistic can be found on page 43.
Source(s): IDC; Statista; ID 8004262
Worldwide spending on
blockchain solutions from 2017
to 2024 (in billion U.S. dollars)
0,8
1,1
3,3
2,1
2,3
2,6
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
2016 2017 2018 2019 2020 2021*
FundinginbillionU.S.dollars
Venture-capital funding in blockchain
startup companies worldwide from
2016 to 2021 (in billion U.S. dollars)
fis.en.vsefis.vse.cz/english
41Overview
United States 51%
China 18%
Switzerland 5%
United Kingdom 4%
ROW* 22%
Note(s): Worldwide; 2015 to 2019
Further information regarding this statistic can be found on page 47.
Source(s): CB Insights; ID 12351176
Funding in blockchain companies worldwide from 2015 to 2019, by country
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42Markets influenced
52
6
5
5
4
4
2
2
2
1
1
1
1
1
0 10 20 30 40 50 60
United States
Japan
China
France
Spain
United Kingdom
Australia
Netherlands
Brazil
Germany
India
Italy
South Korea
Switzerland
Number of investments
Note(s): Worldwide; 2019
Further information regarding this statistic can be found on page 54.
Source(s): MINDSMITH; Clifford Chance; ID 122948614
Leading countries for investments of financial
institutions in blockchain companies in 2019, by
number of investments
Leading financial institutions for investments in
blockchain companies in 2019, by category
46
17
11
10
3
0 10 20 30 40 50
Banks
Insurance companies
Companies dealing in securities
Payments systems and fintech services
providers
Diversified financial institutions
Number of investments
Industry statistics
Cryptocurrencies
fis.en.vsefis.vse.cz/english
44
The global cryptocurrency market cap
is $1.35 Trillion (19/05/2022)
$0,57 Trillion (43%) just in Bitcoin $0,25 Trillion (18%) in Ethereum, $0,25 Trillion in next 10 cryptocurrenies
fis.en.vsefis.vse.cz/english
45
Top Cryptocurrency Categories By Market Cap
(smart contract platforms $ 0,4 trillion, second place)
fis.en.vsefis.vse.cz/english
46Cryptocurrency
66
506 562 644
1 335
1 658
2 817
4 501
6 044 5 840
6 826
7 557
9 929
10 397
0
2 000
4 000
6 000
8 000
10 000
12 000
2013 2014 2015 2016 2017 Mar 2018 Nov 2019 Feb 2021 Jul 2021 Aug 2021 Oct 2021 Nov 2021 Jan 2022 Feb 2022
Cryptocurrencynumber
Note(s): Worldwide; 2013 to 2022
Further information regarding this statistic can be found on page 56.
Source(s): CoinMarketCap; ID 86391717
Number of cryptocurrencies worldwide from 2013 to February 2022
Quantity of cryptocurrencies as of February 3, 2022
fis.en.vsefis.vse.cz/english
47
Leading cryptocurrencies - price development
fis.en.vsefis.vse.cz/english
48Bitcoin
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
450 000
Jan
2017
Mar
2017
May
2017
Jul
2017
Sep
2017
Nov
2017
Jan
2018
Mar
2018
May
2018
Jul
2018
Sep
2018
Nov
2018
Jan
2019
Mar
2019
May
2019
Jul
2019
Sep
2019
Nov
2019
Jan
2020
Mar
2020
May
2020
Jul
2020
Sep
2020
Nov
2020
Jan
2021
Mar
2021
May
2021
Jul
2021
Sep
2021
Nov
2021
Jan
2022
Mar
2022
Apr
02,
2022
Apr
04,
2022
Numberoftransactions
Note(s): Worldwide; January 2017 to April 4, 2021; The numbers provided concern network transactions, not trading volume
Further information regarding this statistic can be found on page 66.
Source(s): Coin Metrics; ID 73080628
Number of daily transactions on the blockchain of Bitcoin from January 2017 to April 4, 2021
Bitcoin (BTC) daily transaction history worldwide as of April 4, 2021
fis.en.vsefis.vse.cz/english
49Cryptocurrency
0%
20%
40%
60%
80%
100%
120%
Q2
2013
Q3
2013
Q4
2013
Q1
2014
Q2
2014
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
Q4
2015
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Q2
2020
Q3
2020
Q4
2020
Q1
2021
Q2
2021
Q3
2021
Q4
2021
Shareincryptomarket
Bitcoin (BTC) Ethereum (ETH) Binance Coin (BNB) Tether (USDT) Cardano (ADA) Solana (SOL)
USD Coin (USDC) Ripple (XRP) Terra (LUNA) Polkadot (DOT) Avalanche (AVAX) Dogecoin (DOGE)
Shiba Inu (SHIB) Polygon (MATIC) Binance USD (BUSD) TerraUSD (UST) Other
Note(s): Worldwide; Q2 2013 to Q4 2021; The numbers shown are interactive: Clicking on a coin name either adds or removes it from the graphic; The coins shown are the 16
largest as of February 21, 2022. Litecoin did not feature in the top ranked crypto based on market cap; The numbers provided are as of the end of each quarter
Further information regarding this statistic can be found on page 57.
Source(s): CoinGecko; ID 73078218
Quarterly market share of selected cryptocurrencies, based on market cap 2013-2021
fis.en.vsefis.vse.cz/english
50Cryptocurrency
0
5
10
15
20
25
30
35
Dec2013
Feb2014
Apr2014
Jun2014
Aug2014
Oct2014
Dec2014
Feb2015
Apr2015
Jun2015
Aug2015
Oct2015
Dec2015
Feb2016
Apr2016
Jun2016
Aug2016
Oct2016
Dec2016
Feb2017
Apr2017
Jun2017
Aug2017
Oct2017
Dec2017
Feb2018
Apr2018
Jun2018
Aug2018
Oct2018
Dec2018
Feb2019
Apr2019
Jun2019
Aug2019
Oct2019
Dec2019
Feb2020
Apr2020
Jun2020
Aug2020
Oct2020
Dec2020
Feb2021
Apr2021
Jun2021
Aug2021
Oct2021
Dec2021
Feb2022
Apr2022
May02,2022
May04,2022
May06,2022
May08,2022
May10,2022
May12,2022
May14,2022
May16,2022
PriceindexinU.S.cents
Note(s): Worldwide; December 2013 to May 17, 2022; The figures shown here are in U.S. cents: A figure like 0.19 in this chart, refers to 0.0019 USD.
Further information regarding this statistic can be found on page 60.
Source(s): CoinGecko; ID 120023521
Dogecoin (DOGE) price per day from December 2013 to May 17, 2022 (in U.S. cents)
Dogecoin DOGE/USD price history up until May 17, 2022
fis.en.vsefis.vse.cz/english
51Overview
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2020 2021 2022 2023 2024 2025
B2Bcross-bordertransactionsonblockchaininmillions
North America Latin America Europe Far East & China Rest of the world
Note(s): Worldwide; March 2021
Source(s): Juniper Research; ID 12288254
B2B cross-border transactions on blockchain in various regions
worldwide in 2020 with forecasts from 2021 to 2025 (in millions)
fis.en.vsefis.vse.cz/english
52Cryptocurrency
-10
0
10
20
30
40
50
60
70
80
90
Nov2011
Feb2012
May2012
Aug2012
Nov2012
Feb2013
May2013
Aug2013
Nov2013
Feb2014
May2014
Aug2014
Nov2014
Feb2015
May2015
Aug2015
Nov2015
Feb2016
May2016
Aug2016
Nov2016
Feb2017
May2017
Aug2017
Nov2017
Feb2018
May2018
Aug2018
Nov2018
Feb2019
May2019
Aug2019
Nov2019
Feb2020
May2020
Aug2020
Nov2020
Feb2021
May2021
Aug2021
Nov2021
Feb2022
Apr02,2022
Apr05,2022
Numberofusersinmillions
Note(s): Worldwide; November 2011 to April 6, 2022; Number of unique Blockchain.com wallets created worldwide
Further information regarding this statistic can be found on page 55.
Source(s): Blockchain; ID 64737416
Number of Bitcoin block explorer Blockchain.com wallet users worldwide from November 2011 to
April 6, 2022 (in millions)
fis.en.vsefis.vse.cz/english
53Cryptocurrency
15,92
7,1
5,43
5,03
4,08
3,88
2,84
2,84
2,82
2,65
2,55
2,5
2,39
2,26
2,01
0 2 4 6 8 10 12 14 16 18
Binance
Biconomy Exchange
CoinFLEX
CITEX
Hotcoin Global
DigiFinex
Deepcoin
TOKENCAN
WhiteBIT
Hoo
ZB.COM
Billance
FTX
BitMart
OKX
24h volume in billion U.S. dollars
Note(s): Worldwide; May 17, 2022
Further information regarding this statistic can be found on page 58.
Source(s): CoinMarketCap; ID 86473819
Largest cryptocurrency exchanges - 24h volume - on May 17, 2022 (in billion U.S. dollars)
fis.en.vsefis.vse.cz/english
54Cryptocurrency
0
200
400
600
800
1 000
1 200
1 400
1 600
Aug2015
Oct2015
Dec2015
Feb2016
Apr2016
Jun2016
Aug2016
Oct2016
Dec2016
Feb2017
Apr2017
Jun2017
Aug2017
Oct2017
Dec2017
Feb2018
Apr2018
Jun2018
Aug2018
Oct2018
Dec2018
Feb2019
Apr2019
Jun2019
Aug2019
Oct2019
Dec2019
Feb2020
Apr2020
Jun2020
Aug2020
Oct2020
Dec2020
Feb2021
Apr2021
Jun2021
Aug2021
Oct2021
Dec2021
Jan02,2022
Jan04,2022
Jan06,2022
Jan08,2022
Transactionvolumeinthousands
Note(s): Worldwide; August 2015 to January 9, 2022; The numbers provided concern network transactions, not the trading volume of each coin
Further information regarding this statistic can be found on page 59.
Source(s): BitInfoCharts; ID 73081820
Number of Ethereum transactions per day on the blockchain from August 2015 to January 9, 2022
(in 1,000s)
Ethereum (ETH) daily transaction volume up until January 9, 2022
fis.en.vsefis.vse.cz/english
55Cryptocurrency
0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000
Beeple Everyday: The First 5000 Days (Mar 11, 2021)
CryptoPunk 7804 (Mar 11, 2021)
CryptoPunk 3100 (Mar 11, 2021)
Beeple CROSSROADS (Feb 25, 2021)
CryptoPunk 6965 (Feb 19, 2021)
CryptoPunk 4156 (Feb 18, 2021)
CryptoPunk 2140 (Mar 02, 2021)
CryptoPunk 6487 (Feb 22, 2021)
hairy #1/1 (Mar 14, 2021)
CryptoPunk 3393 (Mar 13, 2021)
CryptoPunk 2140 (Feb 22, 2021)
CryptoPunk 2890 (Jan 23, 2021)
CryptoPunk 3011 (Mar 12, 2021)
CryptoPunk 1839 (Mar 12, 2021)
USD (in 1,000) ETH
Market cap in million U.S. dollars
Note(s): Worldwide; March 16, 2021; The transaction values were in ETH, and have been been converted to USD by using the average ETH price of that particular day
Further information regarding this statistic can be found on page 61.
Source(s): Various sources; ID 122211322
Most expensive non-fungible token (NFT) sales worldwide as of March 16, 2021
The 50 biggest NFT sales worldwide as of March 16, 2021
fis.en.vsefis.vse.cz/english
56Patents
2 542
1 273
1 128
452
373
359
294
251
187
175
174
168
167
154
141
0 500 1 000 1 500 2 000 2 500 3 000
Alibaba Group (including Alipay)
Tencent
Ping An Insurance
nChain
IBM
Inspur
WeBank
Baidu Network Technology
JD Digits
Insight Chain
Baidu Inc.
Siemens
Fuzamei
Rongzer
State Grid of China
Number of patent applications publicly filed
Note(s): Worldwide, China; January 1 to October 31, 2020
Further information regarding this statistic can be found on page 70.
Source(s): incoPat; ID 111919533
Global blockchain patent applications filed by major company publicly 2020
fis.en.vsefis.vse.cz/english
57Patents
185
78 74
50 48
38 37 32 30 28
0
20
40
60
80
100
120
140
160
180
200
Numberofactivepatentfamilies*
Note(s): United States; December 31, 2019
Further information regarding this statistic can be found on page 71.
Source(s): LexisNexis PatentSight; ID 102207734
Companies with the most blockchain patents in the United States / Europe
202
81
34 34
27
20 17 17 17 15
0
50
100
150
200
250
Numberofactivepatentfamilies*
fis.en.vsefis.vse.cz/english
58Note(s): Worldwide; 2021; 18-64 years; 2,000 or 12,000 respondents per country; Residential online population, picked "cryptocurrency (e.g. Bitcoin)"
Source(s): Statista Global Consumer Survey (GCS); ID 1202468
2019 2020 2021
Nigeria 28% 32% 42%
Thailand 23% 18% 31%
Philippines 15% 20% 28%
Vietnam 22% 21% 27%
Turkey 20% 16% 25%
Argentina 16% 14% 21%
South Africa 16% 18% 21%
Switzerland 10% 11% 16%
Kenya 10% 11% 16%
Malaysia 6% 12% 16%
Brazil 16% 11% 16%
Netherlands 9% 10% 15%
Colombia 18% 15% 15%
Czechia 10% 9% 15%
… Israel 8% 5% 8%
2
Owned or used cryptocurrencies – worldwide from 2019 to 2021
fis.en.vsefis.vse.cz/english
59
Name and surname of author
name.surname@vse.cz
Thank for your attention
Name and surname of author
name.surname@vse.cz
Resources
fis.en.vsefis.vse.cz/english
62
Book to read
• Camila Russo: The Infinite Machine: How an Army of Cryptohackers
Is Building the Next Internet with Ethereum
• https://www.amazon.com/Infinite-Machine-Crypto-hackers-Building-Internet-ebook/dp/B07X8HS2WC
• The Cryptopians: Idealism, Greed, Lies, and the Making of the
First Big Cryptocurrency Craze
• https://www.amazon.com/Cryptopians-Idealism-Greed-Making-Cryptocurrency/dp/1541763017
fis.en.vsefis.vse.cz/english
63
Interesting videos
• Crypto Honest Ad
• The Lines Goes Up
• John Oliver – crypto – I
• John Oliver – crypto – I