Making Blockchain Happen
Total Page:16
File Type:pdf, Size:1020Kb
Making Blockchain Happen Making Blockchain Happen November 2019 Robert M. Learney, Lead Technologist – Blockchain & DLT [email protected] Introduction to Digital Catapult Unique position – vendor-neutral technology & innovation specialists ACCELERATORS Introduction to Digital Catapult Advanced Digital Technologies – we work across 4 technology areas which have maximum economic impact potential Future Networks Immersive Artificial Intelligence Distributed Systems – 5G – VR & AR & Mixed – Artificial Intelligence – DLT – IoT (LoRa & Sigfox) – Haptics – Machine Learning – Blockchain Introduction to Digital Catapult Industry Focus – Remit is to focus on two broad industry sectors with the greatest growth potential for the UK economy Manufacturing Creative Increasing the number of trailblazer companies Delivering advanced digital research, working with advanced digital technologies in development and innovation for the UK’s the UK manufacturing sector world-leading creative sector Introducing DLT Why use Distributed Ledger Technology? Why DLT? § Why DLT? § Why DLT? § Why DLT? § Why DLT? This is a Tragedy of the Commons Why DLT? 3 4 § 1 6 Why DLT? What is Distributed Ledger Technology? Introducing DLT Introducing DLT Introducing DLT Introducing DLT Introducing DLT Introducing DLT Introducing DLT Key Features of DLT: - High availability - Synchronised records - Secure against intrusion - Cryptographic keys - Impossible to alter history DLT Anatomy Synchronised Distributed DLT Consensus Copies Protocol P2P Message Cryptographic Passing Signatures State of the Market Market Research – understanding the state of the UK DLT landscape Connections Programmes Connect to the key up-and-coming players Design and deliver new programmes to in this new field to understand their enable true DLT-based digital transformation products, concerns, and barriers to growth across our two target industries State of the Market https://www.digicatapult.org.uk/news-and-views/publication/blockchain-in-action-state-of-the-uk-market/ State of the Market 3 month process 267 companies identified 45 detailed interviews • Stage of development • Stage of investment • Types of offerings • Current concerns UK DLT Subsectors Service Providers (37%) Centralised Applications (15%) dApp Developers (35%) Blockchain Builders (13%) Stage of Development Most DLT companies in the UK are still growing But half have more than 10 employees And 10% have more than 50 Types of Offerings Non-Specific Finance 75% of DLT companies Technology have products ready to Transport demonstrate Creative But most work still comes Healthcare from the financial sector Agriculture Manufacturing Charity None Yet 0 5 10 15 20 Number of Companies State of the Market We have evidence of massive investment, a massive local talent pool, and a desire for breakthrough digital innovation But little engagement with DLT outside the financial sector Supply Chains Item Provenance Rewarding Creators Securing our Future - Turning supply chains - Ensuring food safety - Tracking IP rights and - Managed data access for into robust networks - Achieving sustainability usage the AI-enabled economy - Improving trust and goals - Securing critical national timeliness infrastructure The Business of Blockchain The Business of Blockchain DLT Business Models Mobilising Stakeholders Company 1 Company 2 Company 3 Process Process Process Data Data Data Comms Comms Comms Mobilising Stakeholders Company 1 Company 2 Company 3 Process Process Process Data Data Data Shared Communication Network (Internet) Mobilising Stakeholders Company 1 Company 2 Company 3 Process Alignment Common Data Environment Shared Communication Network (Internet) Blockers to Transformation ? Businesses Blockers to Transformation ● Technical complexity ● Regulatory uncertainty ● No governance models ● No proven value props ● Can’t map mutual benefits ● Inertia of “business as usual” Developers ● Nobody gets fired for playing ● Tech instability it safe ● “Dreamers” facing reality ● Uncertain business models ! ● Unable to engage with traditional industry ● Unable to mobilise multiple stakeholders simultaneously Blockers to Transformation Demand-side Problem Technical Complexity Technical Complexity Technical Complexity ethereum Technical Complexity ethereum DLT Technical Stack Users dApps Virtual Machine Consensus Protocol Database Network Layer DLT Technical Stack Users dApps Virtual Machine Consensus Protocol Database Network Layer DLT vs. Blockchain Other Parties PBFT Lamport- Known Liskov RAFT etc. Consensus Blockchain Nakamoto DAG Unknown Metastable Avalanche DLT Technical Stack Users dApps Virtual Machine Consensus Protocol Database Network Layer DLT Process Stack Law Identity Digitised Objects Transfer Rules Payment Rail Consensus Protocol Mobilising Stakeholders Mobilising Stakeholders We are here Diffusion of Innovation We are still here Mobilising Stakeholders Mobilising Stakeholders Shared Future Pioneers DLT Business Models Business Models in Blockchain DLT Business Models What are you selling? Well…hmm…blockchain? Why are you selling it? To make money and/or change the world Who wants to buy it? How rude – we have a customer! Why should they buy it? Because it will save them money Product? Service? Experience? - Full-stack blockchain - Development consultancies - 'Cloud’ blockchain - dApps - Crypto exchanges - Data lakes Value Propositions Value Propositions for Blockchain Value Propositions Value Propositions DLT Field Labs Finding a way forward • Collaboration from the outset • Diverse stakeholders • Tap into local talent • Neutral coordinator DLT Field Labs Problem Definition Sense Checking Deploying Solutions DLT Field Labs DLT Field Labs First 3 DLT Field Labs – industry, university, legal, and innovative DLT companies already engaged in discussions Oil & Gas Construction Nuclear Industry Improving supply chains and Reducing the costs and risks in Tracking hazardous waste worker certification in this major complex multi-stakeholder disposal and storage sector projects Weather Compensation Example Construction Field Lab Construction Field Lab Weather Compensation Example Weather Compensation Example 1 Weather compensation clauses and conditions identified in standard construction contract Conditions of execution visible to all stakeholders - source of weather data - regularity of updates - parties to be informed - external arbiter - etc. 2 Clauses analysed and converted into smart contract Weather Compensation Example 3 Key stakeholders engaged 4 Simple governance rules No GDPR-sensitive data No sensitive company data Weather Compensation Example 4 Digital weather feed 6 Novel apps and services can communicate with the ledger 5 Events identical for all parties Weather service API Weather Compensation Example 9 Instant awareness 7 Weather alert recorded 8 Smart contract(s) execute 10 Immediate compensation or dispute Making Blockchain Happen Thank you Robert M. Learney, Lead Technologist – Blockchain & DLT Digital Catapult 101 Euston Road London, NW1 2RA 0300 1233 101 [email protected] .