Transforming Industries Through Blockchain Innovations

Transcription

1 Transforming Industries Through Blockchain Innovations MARC TAVERNER BITFURY GLOBAL AMBASSADOR BLOCKCHAINEXPO, Oman, May 2 nd 2018

2 GLOBAL BLOCKCHAIN TECHNOLOGY COMPANY WITH A REALLY SIMPLE PURPOSE MAKE THE WORLD A BETTER PLACE c FOR ALL HUMAN BEINGS, MORE TRANSPARENT AND MORE TRUSTED

3 BITFURY GROUP World's Leading Blockchain Technology Company since 2011 Deliver and operate real life blockchain -based projects in USA, Georgia, Ukraine HQ in Amsterdam, offices in USA, UK, Latvia, Russia, China, Japan, 500+ employees in 17 countries Datacenters: Canada, Iceland, Georgia, Norway and many more Dubai (planned)

4 FULL-SERVICE BLOCKCHAIN TECHNOLOGY COMPANY SECURING BLOCKCHAIN BITCOIN REWARDS TRANSACTION FEES HARDWARE DESIGN, MANUFACTURE & SELL CHIPS SELL BLOCKBOXES BUILD DATA CENTERS Private SOFTWARE FULL RANGE OF OPEN SOURCE BLOCKCHAIN PROTOCOLS GOVERNMENTS & TOP 500 Hybrid Public Lightning BITCOIN PROCESS 11% TRANSACTIONS DATA ANALYTICS PLATFORM CONSULTING & IMPLEMENTATION

5 WHICH PROBLEMS BLOCKCHAIN SOLVES? Cybersecurity Discordant business processes Information on identification of clients Absence of transparency Legal and regulatory compliance Absence of trust 4

6 Benefits of Exonum: Security Resistant to compromise/failures Verification Read-only nodes and lightweight client tools for online auditing Efficiency Ability to process up to 1 billion transactions per day Private Blockchain Solutions Platform Anchoring Hash-state is recorded on a public Blockchain

7 IDENTIFICATION Online passport allowing accurate identification both online and offline. Results Issues Government Faster and cheaper identification at thirdparty services; Slow paperwork; Possible data manipulation; No common informational environment; Unreliable intermediaries. Elections Personal device Resistance to hacking and internal fraud; Relevant country-scale common space of data; Direct access to data with no intermediary; a citizen manages his own documents.

8 SUPPLY CHAIN Blockchain tracks goods at one distributed ledger and ensures compliance with the established rules and procedures. Results Issues Overdue deliveries; Orders accuracy; Corruption on procurement and delivery. Transparent coordination with a revenue and other services; No accounting manipulation; Open to all participants; Minimal corruption; Timestamping; Can be used in military sector, public procurement and education.

9 FINANCIAL SERVICES: INSURANCE Exonum provides a framework to develop decentralized approach to manage insurance products and audit requirements. Issues Results Convenient online audit of history of deals and aggregated values; Lack of trust for complex insurance products; Lack of technological flexibility for fast-developing industry; Fraud via data manipulations; Costly audit. Insurer Client Regulator Flexible products implementation via smart contracts; Trustless reliable data and documents exchange environment; Secure data storage protected from fraudulent manipulations.

10 FINANCIAL SERVICES: E-AUCTION Exonum Blockchain is used as a security layer to save sellers and auction participants from any kind of fraud on the part of the auction administration. Results Issues Inconsistent data due to transactions fulfilled off tech platform; Fraudulent schemes during the auction; Single point of failure due to centralized architecture. Seller Customer Regulator Transparent life cycle of each record; The auction is regulated by a decentralized and 100% available system; Data can not be compromised and/or deleted; Flexible auctions scheme via smart contracts.

11 AUDIT Blockchain significantly modifies the audit process making it much more efficient. Issues Audit is an expensive way to examine financial statements; Takes longer time; Hijackesinternal resources of a company. Results Faster process can be achieved by one auditor; Cost reduction: audit costs decrease exponentially; Reliability -100% certainty; Minimizing involvement of internal resources.

12 APPLICATIONS IN THE WILD

13 FIRST PUBLIC REGISTRY ON BLOCKCHAIN. GEORGIA 12

14 WHY LAND REGISTRY?

15 THE OPPORTUNITY Only 2 billion people around the world have a legal title to control their land LESS THAN 1 IN 3 $20T in dead capital sits outside land titling systems with no protection for property rights Lack of TRUST = desire to avoid corruption and increase resilience in the event of natural or manmade disaster

16 LAND TITLING SERVICE WITH NAPR Each property has its own unique hash Property certificate requests: 10 minutes instead of 3 business days A2323B2316C4566

17 BEFORE & AFTER Previous System 3 days Blockchain System 10 minutes Citizen Arcane registration processes are expensive and vulnerable Lawyer Personal phone Citizen Operations carried out instantly using mobile technology supported by blockchain validation Government Centralized systems and records increase the risk of fraud Database Smart-contract Government Built-in transparency increases trust Investor Uncertainty and high transaction costs lower confidence Certificate Blockchain Investor Reliable, trusted records improve investment climate while reducing costs OPERATIONAL COSTS REDUCED BY UP TO 90%

18 DEV OPS. ARICENT, DIGITAL SUPPLY CHAIN INSTITUTE Improve cycle time by 34 percent Increase productivity by 29 percent Improve quality by 11 percent 17

19 PROTECT WORKERS RIGHTS. COCA-COLA Enabling secure digital labor contract registry Create a validated chain of evidence Protect the registry and its members from malicious actors Eliminate manipulation outside scope of original labor contract 18

20 CRYSTAL All-in-one blockchain investigative tool for cryptocurrency transactions. Issues Crypto economy is booming, pseudonymous transfers of value across borders increasing Significant increase in transactions per day (300k+) Governments and Financial institutions need to better understand the identities of crypto owner Compliance on AML & KYC regulations Results Proved consistency of investigative outcome Understandable for nondata specialists outcome Connected blockchain address to physical person or Entity Enabled by automation efficiency: KYC Collected evidence of criminal crypto activities timely and quickly 19

21 BENEFITS OF CYSTAL Comprehensive Toolkit User-friendly Explorer Autonomous Tracking Interoperability Risk Scoring Advanced Analytics Secure Infrastructure Support

22 TAX DECLARATION Blockchain tracks goods at one distributed ledger and ensures compliance with the established rules and procedures. Issues A member of parliament indicated a purchase of 153 bitcoins on his declaration of income. Need to confirm that the operation had taken place and verify wallet address of the official Need to investigate the transactions Results Auditor enabled to determine other cryptocurrency operations of the official. Connections between the official s account and suspicious entities found: the bitcoins went through the Silk Road, a famous dark net marketplace.

23 WHAT CRYSTAL GIVES? Identify and track bad actors activities, such as tracing ransomware payments Link pseudonymous bitcoin payments to real-word entities, exchange services, individuals and mixer services, and reveal their real-world names Find ownership of bitcoin wallets and the interaction of different Blockchain entities Provide substantial evidence for legal pursuance of charges The Tool Set Address of the person s bitcoin wallet Amount of cryptocurrency received Origin of cryptocurrency, account name etc. Total amount of cryptocurrency at the specified cryptowallet All cryptowallets of related entities and their funds Trace all the network of the bitcoin transaction

24 The main event isn't bitcoin. It's using the blockchain to disrupt other industries and Wall Street. Patrick M. Byrne American entrepreneur, e-commerce pioneer and CEO of Overstock.com

25 THANK YOU!