BlockChain Forum Japan Company [Hitachi]

Transcription

1 BlockChain Forum Japan Company [Hitachi] Nov OSS Solution Center, Hitachi Ltd. Ryo Kawai

2 1-1. Hitachi Corporate Profile Established February 1, 1910 Capital billion yen (as of end of Mar. 2017) Hitachi, Ltd. President & CEO Toshiaki Higashihara Number of Employees Revenues 303,887 (as of end of Mar. 2017) 9,162.2 billion yen (FY2016 Consolidated) Operating Income billion yen (FY2016 Consolidated) *Figures are on a consolidated basis 1

3 1-2. Consolidated Revenue by Segments Financial Services Other (Logistics & Other services) Information & Telecommunication Systems Smart Life & Ecofriendly Systems 10% 14% 6% 6% 2% 20% Total 9,162.2 billion yen FY % Automotive Systems 7% 12% Social Infrastructure & Industrial Systems High Functional Materials & Components Construction Machinery Electronics Systems & Equipment *Figures are on a consolidated basis 2

4 1-3. Global Expansion* (FY2016) Europe Revenues: billion yen Number of companies: 133 Number of employees: 14 thousand China Revenues: billion yen Number of companies: 140 Number of employees: 44 thousand Japan North America Revenues: 1,144.0 billion yen Number of companies: 97 Number of employees: 20 thousand Revenues: 4,757.6 billion yen Number of companies: 208 Number of employees: 169 thousand Asia(incl. China) Revenues: 1,860.7 billion yen Number of companies: 325 Number of employees: 86 thousand Other Areas Revenues: billion yen Number of companies: 101 Number of employees: 12 thousand Japan Outside Japan Total Revenues: 4,757.6 billion yen/number of companies: 208/Number of employees: 169 thousand Revenues: 4,404.5 billion yen/number of companies: 656/Number of employees: 134 thousand Revenues:9,162.2 billion yen/number of companies: 864/Number of employees: 303 thousand * Revenues: FY2016, Number of companies and employees: As of end of FY2016 3

5 Contents 1. What is BlockChain 2. Latest trends in Japan 3. Hitachi s Strategy 4. Proof of Concept 4

6 1. What is BlockChain 5

7 1-1 What is BlockChain Sharing Ledgers in securely, Direct transaction between users, no centerized authority Current system System using BlockChain Shared Ledger Centerized Authority High level security required Distributed Electronic Signature Deal is done when a trusted third-party organization guarantee "trading partner" and "trading medium" Transaction will be completed when all Participants agree on contents of shared ledger 6

8 1-2 Values provided by BlockChain Reduction of transaction/paperwork cost, high level implementation of business transaction, automatic execution of business contract (1)Basic values No intermediary agencies Reduction of intermediary fee And paperwork cost Possibility of micropayment 1 Recution of cost Value from e. signature and transaction recording Secure transaction by Electronic signature Unable to tamper contents Of transaction 取引の偽造が不可能 Record and open all Transaction History Unable to do Fraudulent transactions (AML/CFT*) 2 Strict transaction 3 transparen transaction (2)Future values Define transaction as procedure(smart contract) Automatic execution of transaction based on agreement (DAO/DAC:Decentralized Autonomous Organization / Company) 4 automatic transaction *AML/CFT : Anti Money Laundering / Combating Finance of Terrorism 7

9 1-3 Models of BlockChain(1) (1) Public type, (2) Consortium type, (3) Private type(bitcoin is Public type) In financial segment, Consortium or Private type will be used because of performance, operation and management(compliance and security) Models of BlockChain 1Public type 2Consortium type 3Private type Files are accesible through internet. End user can: Send transaction data to blockchain, Approve on validity of transaction Limited participants will approve transaction Read may be available by participants only, or by public Only the organization can use BlockChain, but Read may be available by public, limited. Proof of Work is not necessary because of participants are limited to the organization Bitcoin Future(Fintech) 8

10 1-4 Models of BlockChain(2) Consortium type and Private type BlockChain will be adopted by Financial segment from the view point of performance, operation and management (compliance and security) Comparison between each types Requirements 1Public type(bitcoin) 2Consortium type Trustless Build consensus between participants without relationship of trust Participants can be trusted Finality strict finality not necessary Strict finality is required Latency/Throu ghput Performance is negotiable (a few transaction/sec) high performance is required a few hundreds transaction/sec) Implemention (Consensus technology) Consensus by PoW Low performance, but can build consensus between participants without trust Fee business will have more profit than unfairness Consensus by PBFT* Less authorization process will provide performance Unfairness will cause punishment. It may less motivation. *PBFT: Practical Byzantine Fault Tolerance 9

11 2. Latest trends in Japan 10

12 2-1 Japanese Gov., Big financial services companies in Japan Japanese Gov. Financial Services Agency Workgroup, Committee on Fintech, BlockChain The Ministry of Economics, Technology and Industry Research on Movement not only in Japan, but Overseas The Ministry of Internal Affair and Communications Use case research, Electronic application system Big financial services companies The Bank of Japan Establish FinTech Center, Research with the European Central Bank Japan Exchange Group(JPX) Start PoC tests for DLT to capital market infrastructure Japan Bank Association provide Blockchain experimental platform for developing new financial service Shifting to business evaluation in real from technology evaluation of block chain 11

13 2-2 Japanese Gov., Big financial services companies in Japan Japan Banks Association has provided BlockChain experimental platform for the purpose of easy co-operation between Banks and reduction costs of development. Hitachi is one of the platform partner vendor. BlockChain experimental platform Blockchain network Ref : 12

14 2-3 Start-up companies in Japan bitflyer:miyabi Private BlockChain with High performance Techbeuro:Mijin Permission type BlockChain with High speed, secure, reasonable cost Orb:Orb DLT DLT which supports community economy, such as local district currency (DLT:Distributed Ledger Technology) Soramitu:Hyperledger Iroha BlockChain which supports simple, digital assets and smart phone A lot of Platform are developed, which improve Finality, Performance and support specific use case. 13

15 3. Hitachi s strategy 14

16 3-1 Hitachi s important business segments ❶ Interface area :High level channel, Mobile, API ❷ Security/Authority area:security and Authorization Platform ❸ Bigdata, AI area :Service based on BigData and AI ❹ Financial Infra area :Financial Infrastructure based on BlockChain Technology User FinTech Company ❶Interface Channel 金融機関 Other Segment API API ❷Security/Authorization Financial Service Bank Insuranc e ❸Bigdata/AI Security カード ❹Infrastrucre (BlockChain) 15

17 3-2 Applying BlockChain to other business segment and collaboration Collaboration using BlockChain Health care Life log Insu rance Financial Settle ment Settlement Payment Vehi cle SCM visit log Asset Loan retail distribution Vote Tax Pay Public Property register Buyer Order Order Shipment Shipment Settlement Supp lier Payment Note Collaboration on Social/API Service/Function 16

18 3-3 Activity Strategy on BlockChain Improving the speed of developing Platform with Open Innovation Develop Hitachi s original social Infrastructure. Application Middle / API Transfer Phase 1 (Specific Domein) Exchange Blockchain basic API Post Trade Phase 2 (Collaboration) collaboration with other segments Smart contract Phase 3 (Automation Platform) DAO/DAC Audit analysis API cooperation Smart Contract FW technology AI BlockChai n Platform Transaction ack. DLT Chain Monitoring Monitoring, automation Blockchain management BlockChain Core Public-key encryption authentication, anonymization Functions for Financial Side-chain DAO/DAC desc. model Contract platform Improved Function for Collaboration IoT P2P 通信基盤 Hyperledger Community Contribution Developing Global standard BlockChain core function through Hyperledger project Enhance functions including security Developing enhanced function using experience with building financial system. Develop future use case for social infrastructure Propose new use case in social infrastructure domain (DAO/DAC:Decentralized Autonomous Organization / Company) 17

19 3-4 Hitachi s Strategy ~Financial Innovation Laboratory~ 4 research sites : Silicon Valley, New York, London, Tokyo Silicon Valley Bigdata Laboratory Tokyo New York Healthecare Automotive Resource Energy London + Social Innovation Laboratory 1 2 Research on IT movement in Financial segment Collaboration with Bigdata Lab. Innovation from Silicon Valley to Japan/Asia 3 4 PoC with customers Development on BlockChain 18

20 3-5 Hitachi s Strategy ~Standardization of BlockChain~ [1] Hyperledger Community Contribution Hyperledger hosted by Linux Foundation has been developing BlockChain platform with open innovation power. More than 150 companies are participating. Hitachi has been Premier member since establishment and making a lot of collaboration on implementation of BlockChain core function. Hyperledger Premier Members General Members Accenture Airbus DTCC Daimler Fujitsu SORAMITSU Red Hat SWIFT IBM Intel Associate Members NEC Bank of England other 21 companies Federal Reserve Boston others others ref: (as of Oct. 2017) 19

21 3-6 Hitachi s strategy ~ Standardization of BlockChain ~ [1] Hyperledger Community Contribution Hitachi has made a lot of contribution, such as Sustainable, application platform, documentation, review on other participant s proposal at the time of Hyperledger Fabric 1.0 *1*2 Hitachi is sitting the seat of the board member of Hyperleger and makes a lot of contribution to the management of project. *1 Blockchain platform for enterprise segment *2 No.2 contributor in global Hyperledger Premier Members General Members Accenture Airbus DTCC Daimler Fujitsu SORAMITSU Red Hat SWIFT IBM Intel Associate Members NEC Bank of England other 21 companies Federal Reserve Boston others others ref: (as of Oct. 2017) 20

22 3-7 Hitachi s Strategy ~Technology and Knowhow with PoC~ [2] Enhance functions including security Hitachi is leading the PoC to create new financial service and development of high reliable/performance BlockChain platform PoC of Check transfer with BTMU in Singapore Blockchain New Financial Service Energy Smart Grid Supply chain Financial Settle ment Sign. 6 Borderless Money Loan 国境を超える資産 離れていても 支えあう暮らしが送れる ノマドワーカーや外国人労働者が増えるにつれ 国際的な 安く 早く 安全な金融サービスが求められる Insu rance Healthcare Healthcare Sign. 9 Will Payment 意志のある金 お得に社会貢献できる方がいいよね 見返りのある打算的な社会貢献的消費の広がりが 資金調達文化や富の再分配を拡げる契機になっていく Sign. 11 Request for Identity 信用と不可分になるアイデンティティ この人だったら信用できる 顔が見えない相手との取引において 自身をどう守れるのかが重要事項になる Industry Future vision Speedy, More efficience of Financial Operation Secure and reliability Anonymouse Data with audit function Digital solution for financial segment High performance (Throughput improve) Paralell concensus BlockCHain Platform(Open Innovation, Hyperledger) 21

23 3-8 Hitachi s Strategy ~Easy-to-use Blockchain environment~ [3] Develop future use case for social infrastructure 22

24 4. Proof of Concept 23

25 4-1 Internal PoC~Trade~[1/4] Developed Demonstration application, Trade Abstract Manage the processes of Contrace, Customs and Settlement to improve business process Orderer Order info Contractor Shipment Product V. Coin Cusom Product Shipment Demo 1.Order 2. Contract 3. Custom Check Process in Demonstration 1.Order (Orderer filed information of order) 2.Contract (Contract completed with contractor s sign) 3.Custom Check(Settlement executed via Custom s signature) 24

26 4-2 Internal PoC~Trade~[2/4] (1)Order Screen shot 1. Order 2.Contract 3. Custom Check Enduser screen Manager s screen (2) Orderer input information and press the button (1) (3) (1) File contents to BlockChain (2) Update the status to Ordered (3) Deposit 200,000, assumed V.Coin from Orderer s account 25

27 4-3 Internal PoC~Trade~[3/4] (2)Contract Screen shot 1. Order 2. Contract 3. Custom Check Enduser screen Managers screen (2) (1) Orderer input information press the button (then ship the product) (1) Update the status to accept of contract (2) Update the status to contract 26

28 4-4 Internal PoC~Trade~[4/4] (3)Custom check Screen shot 1. Order 2. Contract 3. Custom Check Enduser screen Managers screen (2) (1) Custom checks contents and products, press confirm button (3) (3) (1) File custom check completion and contract information to BlockChain (2) Update the status to Custom (3) Move Deposit to Contractor s account. 27

29 Trademarks Linux is the registered trademark of Linux Torvalds in the U.S. and other countries. HITACHI is a registered trademark of Hitachi, Ltd. Other brand names and product names used in this material are trademarks, registered trademarks, or trade names of their respective holders. 28

30 END BlockChain Forum Japan Company [Hitachi] Nov OSS Solution Center, Hitachi Ltd. Ryo Kawai 29

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