Transforming Industries Through Blockchain Innovations Marc Taverner, Bitfury Global Ambassador BLOCKCHAIN SUMMIT, London, June 26 2018
Company with a simple purpose: MAKE THE WORLD A BETTER PLACE FOR ALL HUMAN BEINGS, MORE TRANSPARENT AND MORE TRUSTED 2
Bitfury Group is a full service blockchain company DELIVER AND OPERATE REAL LIFE BLOCKCHAIN HQ IN AMSTERDAM 550+ EMPLOYEES DATACENTER S Projects in USA, Georgia, Ukraine and many more Offices in USA, UK, Latvia, Russia, China, Japan, Dubai across 17 countries Canada, Iceland, Georgia, Norway
Bitfury Areas of Operation SECURING BLOCKCHAIN Process 11% of Global Transactions HARDWARE Design & sell ASIC chip SOFTWARE Build on open source protocols Private Hybrid Public BITCOIN BlockBox Blockchain & Crypto Analytics Risk Scoring Investigation KYC / AML
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 ANCHORING Hash-state is recorded on a public Blockchain
Opportunities for Transformation
Identification Online passport allowing accurate identification both online and offline. ISSUES Slow paperwork; Possible data manipulation; No common informational environment; Unreliable intermediaries. GOVERNMENT ELECTIONS PERSONAL DEVICE RESULTS Faster and cheaper identification at third-party services; 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.
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.
Financial Services: Insurance Exonum provides a framework to develop decentralized approach to manage insurance products and audit requirements. ISSUES RESULTS Lack of trust for complex insurance products; Lack of technological flexibility for fastdeveloping industry; Fraud via data manipulations; INSURER CLIENT REGULATOR Convenient online audit of history of deals and aggregated values; Flexible products implementation via smart contracts; Trustless reliable data and documents exchange environment; Costly audit. Secure data storage protected from fraudulent manipulations.
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. 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 REGULAT OR RESULTS 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.
Applications << in the wild >>
513 First public registry on Blockchain
Why Land Registry?
The opportunity to make a difference LESS THAN 1 IN 3 $20T LACK OF TRUST Only appx 30% of people around the world have a legal title to control their land in «dead capital» sits outside land titling systems Mistrust due to corruption and low resilience in the event of natural or manmade disaster
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 fraud risk 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%
Dev Ops. Aricent, Digital Supply Chain Institute Increase productivity BY 29% Improve cycle time BY 34% Improve quality BY 11%
Analytics & Investigation 12
Crystal All-in-one blockchain investigative tool for cryptocurrency transactions. ISSUES Booming with pseudonymous transfers of value across borders Volumes growing with 300K transactions per day Governments and Financial institutions want to better understand the identities of crypto owner; Compliance on AML & KYC regulations. RESULTS Proved consistency of investigative outcome; Understandable for non-data specialists outcome; «Connected» Blockchain address to physical person or Entity; Enabled by automation efficiency: KYC; Collected evidence of criminal crypto activities timely and quickly.
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; RESULTS Auditor enabled to determine other cryptocurrency operations of the official; Connections between official s account and suspicious entities found: the bitcoins went through Silk Road, a famous dark net marketplace. Need to investigate the transactions.
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
Thank You! marc.taverner@bitfury.com Bitfury.com