BLOCKCHAIN 101. BIT Session 5. Bissonet Room

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1 BLOCKCHAIN 101 March 13, 2018 BIT Session 5 4:30pm 5:30pm Bissonet Room

2 PANEL AGENDA Overview of Blockchain Technology Gus Pina Director of SITA Lab Industry Perspectives and Future Trends Lawrence I Lerner CEO Pithia, Inc. Questions & Answers Dave Wilson, Moderator Director, Airport Innovation Seattle-Tacoma International Airport

3 TECHNOLOGY EVANGELIST S REWARD

4 Monday Morning Gift from Operations Staff

5 RECENT BLOCKCHAIN ACTIVITIES ACI-World Airport IT Steering Committee Blockchain Task Force Best Practice Document ACRP Study Proposal Developed the problem statement Submitting the proposal for a blockchain study Blockchain Proof of Concept or Pilot Project Seattle tech start up company Baggage tracking; air cargo manifests; concessions, property

6 OVERVIEW OF BLOCKCHAIN TECHNOLOGY Gus Pina Director of SITA Lab Société Internationale de Télécommunications Aéronautiques

7 Gus Pina Director of SITA Lab Gus Pina is the Director of SITA Lab, the company s strategic research and development arm. Created in 2008, SITA Lab explores new technology and drive innovations for the air transport community working both independently and in partnership with others on pilot projects in the areas of robotics, big data, AI, wearable technology, and many others. With 25 years in the IT industry, Gus has always had a passion for transforming business processes with emerging technologies. Prior to SITA, Gus spearheaded key roles in digital transformations across FedEx, Delta Air Lines, and Macys. During his 7 years at SITA, Gus was a Lead Engineer in the SITA Labs and Director of Enterprise Architecture.

8 Blockchain March 2018 Gustavo Pina

What is Blockchain Blockchain in the ATI SITA Lab Research

disintermediation It keeps a record of all transactions

Creating a chain of custody Information can be encrypted and

Creating trust between un-trusted parties Used for transfer

Allowing programmable, immediate, flexible, transfer of

9 What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN: AN ENABLER (OF TRUST) for decentralisation, disintermediation It keeps a record of all transactions taking place on a peer-to-peer network. Creating a chain of custody Information can be encrypted and every occurrence recorded; it cannot be altered. Creating trust between un-trusted parties Used for transfer of currency; contracts, records etc. Allowing programmable, immediate, flexible, transfer of ownership Information can be shared across multiple providers while guaranteeing consistency of data. Creating shared control of data 5

development in 2017 (YTD) 2 138 Start-ups working on

10 What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN: A FEW NUMBERS Gartner predicts technological maturity in 5+ years $2.5Bn Investment by VCs (25%) & ICOs (75%) in blockchain development in 2017 (YTD) Start-ups working on blockchain related services $3.1tn Estimated value that blockchain could generate by 2030 (Gartner) 4

11 What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN ECOSYSTEM A feel of the market Blockchain Intra company 24% Exchanges between companies 31% Emerging business models Consortium (cost saving) Hardware (mining) Hype cycle, 07/17 Digital Cash 24% Public Record 21% Transaction based Value split by 2030 Before 2019, most blockchain platform offerings will be too immature for true production The majority of projects that we have observed don t require blockchain technology to deliver value 6

12 What is Blockchain Blockchain in the ATI SITA Lab Research DEMOCRATIZED BUSINESS MODELS The new frontier $60B 25% Fee Internet Backbone Blockstack Certificate Authority $30B 15% Fee Smart Contracts Coins Sharing Economy W3C, identity.foundation sovrin.org uport Civic Identity Endor AI Economy 6

13 What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN ECOSYSTEM Tension between private & public models Public Blockchain Private / Permissioned Bitcoin Multichain Ethereum (public) Ripple Community or Consortium Hyperledger Ethereum (private) 6

What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN IN THE ATI What could or will be

receiver are also digitally bonded to the transaction, it could speed customs clearing (import duty

relying on human checks to validate passenger identification Track all state changes in an aircraft s

Drone registry Almost all use cases can be classified as next-gen data sharing.

Civil Aviation Agencies can use the data to track usage of drones Blockchain provides a way to move

Purchase/exchange tickets without a central 3d party Facilitate ticket transfers between Airlines

14 What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN IN THE ATI What could or will be disintermediated Flight & Baggage information Provide industry single version of the truth of flight or baggage data. Use smart contracts to merge data, provide insurance, Cargo Once digitally tracked the sender and receiver are also digitally bonded to the transaction, it could speed customs clearing (import duty paid) Identity information Reduce the current friction and burden of processing paper passports and relying on human checks to validate passenger identification Track all state changes in an aircraft s lifecycle from the initial purchase to every transfer of ownership or lease and maintenance event Drone registry Almost all use cases can be classified as next-gen data sharing. Provide a cross-border registry of drone ownership. Civil Aviation Agencies can use the data to track usage of drones Blockchain provides a way to move from copies of data to single Aircraft s part records Tickets source of truth to shared infrastructure. Purchase/exchange tickets without a central 3d party Facilitate ticket transfers between Airlines Payment Benefit from monetizing much smaller items as the transaction fees are 10 times lower than credit-card + don t requires PCI compliances Loyalty program Passengers can pay for goods and services in a secure fast and reliable method without credit card processing fees 8

15 What is Blockchain Blockchain in the ATI SITA Lab Research BLOCKCHAIN IN THE ATI Industry exploration IDENTITY TICKETs FlightChain PAYMENT MRO LOYALTY DRONE

16 What is Blockchain Blockchain in the ATI SITA Lab Research SITA LAB RESEARCH Past Proof of existence ShoCard project ShoCard Identity Single Travel Token Drone Registry SITA OnAir Drone Management Flight Chain Flight Chain Whitepaper focus areas Self-Sovereign Identity Community Data Chains Tracking of Things Cargo and Bags 11

17 INDUSTRY PERSPECTIVES AND FUTURE TRENDS Lawrence I Lerner CEO Pithia, Inc.

18 Lawrence I Lerner CEO Pithia, Inc. During his career, Lawrence has worked across industries in multiple roles (executive, lead technologist, board member) to enable digital transformation, scaling up businesses using edge technologies and processes creating $100Ms in new revenue. Whether it was rearchitecting Dun&Bradstreet s core product (35% growth), delivering the next generation of coupons across 31,000 retailers, growing an outsourcing business by $100M, defining Motorola s smartphone strategy or helping launch a dozen startups he s generated wealth for businesses, owners and shareholders. Today he is the CEO of Seattle s newest venture fund for blockchain technologies.

19 The future is the apex of choices made via the intersection of paths you have taken

20 WHERE ARE WE TODAY? BLOCKCHAIN 20 transactions per second Ethereum is single threaded Crypto-kitties slowed down the chain Limited token interoperability No end to standards Many of new initiatives No end to innovation Tokens vs. cryptocurrencies Why do do need them? AIRPORTS Ground operations & processes Terminal operations Passenger processes Security processes Airline operations Aircraft processes Environmental impact

SMART CONTRACTS AND ORACLES Used loosely as contract, a smart contract is a process with Persistent state Associated code Deterministic which is why you need

21 SMART CONTRACTS AND ORACLES Used loosely as contract, a smart contract is a process with Persistent state Associated code Deterministic which is why you need Oracles are connections to the outside world They are designed to edge trigger smart contracts. When one or more conditions are true they cause a smart contract to run

22 ORACLES Software Inbound and Outbound Hardware Consensus Based Oracalize Chainlink - link.smartcontract.com

23 23 PRIVATE VS. PUBLIC BLOCKCHAINS Public Blockchain Many third parties validate ledger entries No single owner Harder for the black hats to take over Policy changes are by consensus unlike companies (e.g., Facebook) Private blockchains Faster to close or clear transactions Focused on a simpler ecosystem Good for small autonomous networks Internet of Things

24 24 Simple Workflow Handoffs where there are manual processes Small claims Too expensive to test?

25 25 DECENTRALIZED IDENTIFIERS (DID) Conventional identity management is based on centralized authorities Directory servers Certificate Servers Domain name registries DID* Lifetime portable identity not dependent on any centralized authority and can never be taken away Person Organization Asset By transaction *

26 26 VERIFIABLE CLAIMS

27 27 ZERO KNOWLEDGE PROOF IDENTITY Proving you have knowledge of something without having to share the source of data. Completeness: If the assertion is true, the verifier is convinced of the truth of the statement Soundness: If the statement is false, no bad prover can convince the honest verifier that it is true, except with some small probability. Zero-knowledge: If the statement is true, no verifier learns anything more than that Example: I keep a speckled colored dragon I am over 21 This is the password to my bank account

28 28 WHAT MAKES A GOOD CASE? 1. Multiple parties share data Multiple participants need views of common information 2. Multiple parties update data Multiple participants take actions that need to be recorded and change the data 3. Verify Trust Every participant requires validation of the transactions and integrity of data written 4. Decentralized No single repository or owner of the repository locations 5. Distributed Ledger Data is written across multiple ledger entries

29 29 WHERE ARE THE IMMEDIATE OPPORTUNITIES? Disaster recovery & Record Keeping Airport data Flight plans Operations and Supply Chain Security and passenger movement Luggage movement and transfers Package movement #FollowTheMoney

30 30 BARRIERS/OPPORTUNITIES Regulators want to address single entities and not networks Too many use cases where everyone must participate Hot potato of risk Last one holding it, gets stuck with the check PII Right to be forgotten Where is the data shared/stored Keep the data only for as long as necessary

31 AUDIENCE PARTICIPATION Thank You

Blockchain and distributed ledger technology at Travelport

Blockchain and distributed ledger technology at Travelport A Travelport white paper Enterprise Architecture April 2018 2018 Travelport All rights reserved. Travelport, Apollo, Galileo, Worldspan and the