Nuts and Bolts of Blockchain Technology: What RIM Professionals Need to Know

Transcription

1 Nuts and Bolts of Blockchain Technology: What RIM Professionals Need to Know Sue Trombley, MLIS, IGP,FAI Managing Director, Thought Leadership Iron Mountain 2018 ARMA Houston Spring Conference

2 Information Management disruptors 2 BLOCKCHAIN GLOBAL REAL ESTATE CONSOLIDATION DATA ANALYTICS MOBILE WORKFORCE ROBOTICS & AI IoT & SURVEILLANCE 2

3 Blockchain definition A technology model which allows a network of participants to use a digital dataset across a network of computers without the need for a central authority Ledger A > B 5 B > C 3 B > D 1 A record-keeping system with all transactions stored in an immutable distributed ledger 3

4 The ledger Ledger transactions are connected in blocks - always know what came before 4

5 Genesis Response to the financial crisis of 2008 Transfer of social trust from traditional symbols (governments, financial institutions) to technology and computer code The root problem with conventional currency is all the trust that s required to make it work. Satoshi Nakamoto - pseudonym for founder(s) of Bitcoin BLOCKCHAIN TRANSCENDS FINANCE! 5

6 Blockchain is not Science Fiction 6 6

7 Although CryptoKitties is a game centered around breedable, collectible, and oh-so-adorable creatures we call CryptoKitties! Each cat is one-of-a-kind and 100% owned by you; it cannot be replicated, taken away, or destroyed. Launched 11/17: 1.5 million users $40 million sales to-date A single cat was purchased for $200,000! 7

8 Nuts & Bolts

9 Blockchain vs current models Centralized System Siloed & Conflicting Systems Blockchain Based Model Central System Cost High Cost due to need for a clearing house No Cost Low Cost some nodes who execute parts of the code may get incentives Speed Slow due to transactional verification process and steps involved Very Slow combination of isolated systems and manual processes Near real time Basis of Trust Guarantee of Clearing House No common system, only directly between individual members Trusted network management mechanism Transaction Data Centralized, Single and Editable Data Limited data exists and is stored in different formats and silos Distributed, Replicated and Immutable Data Set Example Mortgage Info with lender(s), home owner, Fannie Mae, insurer, local government, etc. All transaction tracked in ledger 9

10 How it works Endorsement policy Agreed on by key network participants Transactions Submitted by peer node (with write access) Automatically sent to execute on all endorsement peer nodes Peer nodes attempt to replicate if not valid, transaction is rejected (this could be done as part of a workflow process) If successful, executed on all endorsement nodes Ledger Blockchain is updated and sent to all peer nodes 10

11 Fundamentals Users are invited to participate (private network) Permission granted based on role Immutable Ledger transactions cannot be changed Secure Encrypted Distributed ledger need access to all nodes Actual record exists outside of the ledger Founded on trust and transparency 11

12 Blockchain ecosystem Platforms* Professional Service Providers Applications* Independent Startup Applications Custom Enterprise Applications Underlying code and data-set which enables an application to be developed using Blockchain concepts Professional service providers specialize in providing Blockchain-related services some providers, like DAH, Chain or Monax have developed an accompanying platform. Applications are the use-case specific software solutions that run on top of the Blockchain platform. These applications come in two forms: 1. Independent Startup Applications created by a start-up to exploit a use-case opportunity, and 2. Custom Enterprise Applications created for companies to meet a certain need. Government / Regulatory *Some applications developers have also created a new platform on which to base their applications. Thus, in certain cases, there is overlap between the platform and applications sections in the value chain. 12

13 Blockchain in use today Financial Services Healthcare Other Enterprise Other Consumer and SMB International Payments Claims Processing Retail Loyalty Programs Cloud Storage Insurance Policies Sharing Patient Records Governance Land records, voting etc. Company Governance Trade Finance Counterfeit drug management Various Supply Chain Digital Identity Trading capital markets Rights Management Asset Management Blockchain-technology-cm

14 Use case AIG sells blockchain-based multi-national insurance policy to Standard Chartered Bank Allows those involved to see up-to-date, secure details of the policy terms, premium payments and claims Master policy in the UK is linked to local policies in the US, Kenya and Singapore Process that took months now takes days 14

15 Use case Quick tracking of contaminated food in the global supply chain Allows those involved to see origin of food, follow shipments and track deliveries/receipts Enables public health officials to determine communities exposed Process that took days or weeks now takes seconds 15

16 RIM facts Blockchain records must be managed as legal evidence alongside other records in order to meet business purposes Multiple copies of the same ledger avoid a single or even multiple points of failure Blockchain reduces complexity of maintaining multiple backups of conventional databases Chain of custody is established and transparent Access rights are selective through assigned keys Courtesy of John Isaza and Q. Scott Kaye: ARMA imasters presentation 16

17 What it means for RIM Pros Determine if blockchain is in use, in a pilot program, or under investigation at their organization Understand provider, access rights, members of the blockchain network Determine if the ledger is a new record in the Records Retention Schedule Map location of the official record Document protocol for discovery, FOIA, GDPR requests Modify RIM/IG policies and procedures, as required 17

18 Resources IBM s FREE ebook Blockchain for Dummies Amazon or your bookstore! 18

19 Stay up-to-date 19 19

20 Thank you! 20