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Personal data and blockchain: Opportunities and Challenges - Michele Nati - Lead Technologist Personal Data and Trust - Digital Catapult


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Presentation at My Data Conference 2016 - MyData2016 - Personal Data and Blockchain session

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Personal data and blockchain: Opportunities and Challenges - Michele Nati - Lead Technologist Personal Data and Trust - Digital Catapult

  1. 1. Personal data and blockchain: Opportunities and Challenges MyData 2016 Conference Day 1, August 31st, Helsinki Session: Blockchain and Personal Data Michele Nati Lead Technologist Personal Data and Trust Digital Catapult, London @michelenati
  2. 2. Personal Data: Opportunities •  Overall financial benefit •  £15bn  untapped  wealth  for  UK   consumers   •  The incentive to share •  30%  of  consumers  believe  “to  improve   services  and  benefit”  is  the  most   important  incen5ve  for  sharing  personal   data   •  How to incentivize •  43%  said  the  main  incen=ve  for  sharing   personal  data  is  if  it  was  going  to  be  used   to  improve  society   Personal  Data  and  Trust  Review:  h<ps://  
  3. 3. Personal Data: Barriers •  Trust •  44%  of  consumers  trust  the  public  sector   most  with  their  personal  data   •  2%  choose  telecoms  as  the  most  trusted   sector   •  30%  feel  the  retail  sector  is  not  clear  on   how  use  their  personal  data   •  Consent •  65%  of  consumers  are  insure  if  data  is   shared  without  their  consent   •  Loosing control •  76%  of  consumers  feel  they  have  no   control  over  how  their  data  is  shared  or   who  with   Personal  Data  and  Trust  Review:  h<ps://  
  4. 4. Personal Data Ecosystem •  How data can be linked together? •  How access can be granted and controlled? •  How all involved parties can trust each others? •  How the right incentives can be created?
  5. 5. Blockchain in 2015 h<p://­‐cycle.jsp  
  6. 6. Blockchain in 2016 h<p://­‐cycle.jsp  
  7. 7. Blockchain Ecosystem •  Blockchain: business case vs trust case •  Bitcoin: (and alt-coins) interoperable incentives within the ecosystem •  Smart Contracts: consent management •  Decentralized and Autonomous Organizations (DAOs): data sharing for social benefits and causes
  8. 8. Do you need blockchain? 1.  Consensus – is the use case benefiting from agreement across all the parties that each transaction is validated without 3rd party? 2.  Provenance – is the maintenance of a complete audit trail important for the use case? 3.  Immutability – is it important that the trail of transactions cannot be altered? 4.  Liquid trust – is there a need for an agreed “system of record” trusted by the all network?
  9. 9. Blockchain and identity •  Role in the Personal Data ecosystem •  Link  all  the  data  to  one  individual   •  Be<er  and  personalized  services  –  combining  different  a<ributes   •  Identities should be •  Sovereign   •  Unique  and  interoperable   •  Verified   •  Mul5ple  and  context-­‐based  (mul5ple  personas)   •  Blockchain role •  (Decentralized)  User-­‐managed   •  Consensus  –  new  forms  of  iden5ty  (for  unbanked)   •  Notary  func5on  -­‐  Integrity   •  Audit  trail  –  non-­‐repudiable   •  Confiden5ality?  (requires  some  thoughts)     (Attributes) Verification might still require 3rd party
  10. 10. BC and PD ecosystem: An example
  11. 11. Blockchain and Personal Data: An example Benefits distribution and tracking •  Assign coins with clause on how they are spent (alt-coin) •  Require to verify identities Possible Risks (to address): •  (might) Leak privacy on people identity (e.g. zero-knowledge proof required) •  Pseudonyms could be de-anonymized •  Deal with malicious behavior (in ethical way; this might require third party authorities) h<p://­‐36785872  
  12. 12. Blockchain evolution h<ps://www.digitale-­‐­‐blockchain-­‐evolu5on/   2009  BitCoin  blockchain  implementa5on   -­‐  Criminal  ac5vity   -­‐  2016:  AML  EU  regula5on  h<p://­‐direc5ve_en.pdf  
  13. 13. Blockchain evolution h<ps://www.digitale-­‐­‐blockchain-­‐evolu5on/   2013  Ethereum  Smart  Contracts  presented   -­‐  Security  and  scalability  concerns   -­‐  July  2015  launch  aber  crowdsale  campaign    
  14. 14. Blockchain evolution h<ps://www.digitale-­‐­‐blockchain-­‐evolu5on/   2016  May  launch   -­‐  DAO  hacked   -­‐  June  2016  hard  fork  
  15. 15. Blockchain evolution h<ps://www.digitale-­‐­‐blockchain-­‐evolu5on/   ?  ML/AI  will  run  organiza5ons   -­‐  What  kind  of  control  we  need?   -­‐  How  we  guarantee  ethical  decision?  
  16. 16. Blockchain evolution h<ps://www.digitale-­‐­‐blockchain-­‐evolu5on/  
  17. 17. Blockchain evolution h<ps://www.digitale-­‐­‐blockchain-­‐evolu5on/  
  18. 18. Governance in decentralized systems •  Everybody can use blockchain, run smart contracts, participate to DAOs •  But who takes decisions? •  Currently  developers  and  miners   •  SW  licenses  generally  disclaim  all  liabili5es   •  Who should be accountable for malicious behavior? •  Not  yet  well-­‐defined   •  Shall  core  developers  and  miners  be  considered  as  fiduciaries?  (duty  of  care,   loyalty  and  good  faith)   •  What governance structure will be required?
  19. 19. THANK YOU! #DigiCatapult 0300 1233 101 Digital Catapult /DigitalCatapult @DigitalCatapult