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