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Blockchain: use cases for the future

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Some blockchain use cases that don't involve cryptocurrency.

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Blockchain: use cases for the future

  1. 1. Blockchain: Use cases for the future by Bruno Lowagie CFO Conferenz 22 November 2018 iText booth, JavaOne, San Francisco
  2. 2. Hashing Los Gatos, California
  3. 3. Hashing Creating a “message digest” A Cryptographic Hash function is a mathematical transformation algorithm that takes an input of arbitrary length (“message”) and returns a fixed-size byte sequence (the “message digest” or “hash”). Example: ▪ Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Facilisi morbi tempus iaculis urna id volutpat. Cras tincidunt lobortis feugiat vivamus at augue eget arcu dictum. Ac feugiat sed lectus vestibulum mattis. Hac habitasse platea dictumst quisque. - 318 bytes ▪ SHA-2, 256-bit (or 32 bytes): A2EF46F63E8D8E093E1A263206692A973D332826A33E11270F37708C8C47FAED
  4. 4. Integrity check “fingerprint” of digital content ▪ Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Facilisi morbi tempus iaculis urna id volutpat. Cras tincidunt lobortis feugiat vivamus at augue eget arcu dictum. Ac feugiat sed lectus vestibulum mattis. Hac habitasse platea dictumst quisque. ▪ SHA-2, 256-bit (or 32 bytes): A2EF46F63E8D8E093E1A263206692A973D332826A33E11270F37708C8C47FAED ▪ Lorem ipsum dolor sit amet, consectetur adipiscing elit. sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Facilisi morbi tempus iaculis urna id volutpat. Cras tincidunt lobortis feugiat vivamus at augue eget arcu dictum. Ac feugiat sed lectus vestibulum mattis. Hac habitasse platea dictumst quisque. ▪ SHA-2, 256-bit (or 32 bytes): 2A0B6BEC62FC3038086854439839ED51DE0FF61EE0F4DFFA6D14D1E358EC6092
  5. 5. Distributed Ledger Technology Oracle, Redwood Shores
  6. 6. Distributed Ledger Technology DLT is a type of distributed database technology with the following characteristics: ▪ The records can be replicated over different nodes in a network (decentralized environment), ▪ New records can be added by each node, upon consensus reached by other nodes (ranging from one specific authoritative node to potentially every node), ▪ Existing records can be validated for integrity, authenticity, and non- repudiation, ▪ Existing records can’t be removed, nor can their order be changed, ▪ The different nodes can act as independent participants that don’t necessarily need to trust each other. Combined, these characteristics make DLT a great way to keep a ledger of records in a trustless environment.
  7. 7. Blockchain Caltrain station, Redwood City
  8. 8. “ hash Block 0 hash Block 1 hash Block 2 hash Block 3
  9. 9. node node node node node node Records are broadcasted over the network, with the goal to organize them in a block
  10. 10. node node node node node node Nodes need to reach consensus before they can add a block
  11. 11. node node node node node node When consensus is reached, all nodes add the same block
  12. 12. Smart Contracts Ferry, Hong Kong
  13. 13. Predefined Contract • All counterparties agree on the terms (e.g. terms & conditions for a sale) • Known conditions for execution (e.g. 10% down-payment; full payment upon delivery) • Expressed in source code stored in the blockchain Events • An event triggers contract execution • An event can refer to: • The initiation of a transaction (e.g. a down-payment) • Information that is received (e.g. a parcel has been delivered) Execute • Terms of contract dictate movement of value based on conditions met • E.g. a down-payment: a parcel is sent in the real world • E.g. a parcel is received: the payment is processed Settlement • On-chain assets: e.g. cryptocurrency (for instance “paid with Bitcoin”) • Off-chain assets: e.g. the parcel (for instance “a work of art”) • The value bearing item resides outside (“off”) the blockchain; It has a digital counterpart in the blockchain (e.g. identified using an RFID tag) • Lifecycle events of the item are mirrored in the blockchain: the blockchain contains the “rights” (e.g. owner’s claim to a work of art) Smart contract: example
  14. 14. Allow artists to keep a percentage of their work (and get more royalties)
  15. 15. https://t-mining.be/
  16. 16. http://www.internationalsupermarketnews.com/juicy-details-albert-heijn-uses-blockchain-to-make-orange-juice-production-transparent/
  17. 17. http://www.dfamilk.com/newsroom/press-releases/dfa-explores-blockchain-technology
  18. 18. Documents in the Blockchain San Francisco Bay
  19. 19. Registering documents in the Blockchain Document ID: [<ABCDEF>, <ABCDEF>] Timestamp Signed Document hash Compressed property list with metadata: - Status: e.g. “unpaid”, “paid” - Location(s) Certificate of signer • Identity • Public key
  20. 20. Adapted viewer Upon opening an invoice, the viewer can inform you: ▪ This document was registered in blockchain XYZ - Do you trust this blockchain? - Do you want to check the document in this blockchain? ▪ A blockchain service can return the following info: - The ID is not found: - This is a ghost invoice! - The ID is found, but the hash doesn’t correspond: - This is a forged invoice! - The ID is found and the hash corresponds: - This is a genuine invoice - It was originally signed by vendor ABC - Bank XYZ registered it as paid
  21. 21. Implemented in China! In its official release, the bank said it completed the development of blockchain electronic invoice system in just over a month, and connected it to the blockchain platform of Shenzhen Tax Bureau. According to CMB, blockchain electronic invoices connect each invoice stakeholder to facilitate tracing invoice’s sources, authenticity and reimbursement information. It will help address a number of issues that plague existing processes including false declaration and over-reporting of one vote and can significantly reduce operating costs and tax risks. “For the tax authorities, the life cycle of the invoice can be monitored in real time, intelligent tax management can be realized, and the tax can be guaranteed to be paid in full and on time,” the bank said. “Compared with traditional paper invoices, the introduction of blockchain technology electronic invoices highlights its unique advantages of risk management control, convenient operation and full chain processing.”
  22. 22. [<1234>,<5678>] SignedByBob[#DEF1] Status=quote [<1234>,<1234>] SignedByAlice[#ABCD] Status=quoterequestnode Alice (customer) node Bob (vendor) [<1234>,<5A6E>] SignedByAlice[#EF23] Status=accepted [<1234>,<ABCD>] SignedByAlice[#1234] Status=PO [<1234>,<5A6E>] SignedByCarol[#EF23] Status=shipment Carol (courier) node Dave (bank) node [<1234>,<F458>] SignedByDave[#B798] Status=paid Possible Application in Sales processes
  23. 23. Document Retrieval what if we store the URI of the document along with the signed hash? ▪ An alternative for doi.org to avoid Link Rot, ▪ A way to make sure you always look at the most recent document (e.g. in the context of agreements), ▪ A way to know which documents exist: - Criminal records spread over different courts, - Medical records spread over different hospitals, - Prescriptions for drugs that can only be retrieved by pharmacists, - Birth certificates, marriage certificates, death certificates that can only be retrieved by City Hall, - …
  24. 24. Long-term validation e.g. Last Will & Testament ▪ Suppose that I write my last will and testament today, and I digitally sign it using today’s state-of-the-art technology, would my digital signature survive me? ▪ I surely hope not: - I hope I survive my signing certificate, - I hope I survive the time-stamping certificate, - I hope I survive the algorithms. ▪ A last will and testament is usually a document of which the content may change over time, and of which the content remains a secret until it needs to be executed. ▪ This is a good use case for blockchain.
  25. 25. <ABC, ABC>👦 <ABC, ABC> Service Provider Document storage (Adobe, Amazon, Box, Dropbox,...) Public Permissioned Blockchain <ABC, ABC> <ABC, XYZ> <ABC, XYZ> <ABC, XYZ><ABC, ABC> <ABC, XYZ> <ABC, XYZ> <ABC, XYZ> Smart contract: • Author or • Notary • Death certificate 👪
  26. 26. Bruno Lowagie mail: bruno@lowagie.com Web: https://lowagie.com Twitter: @bruno1970 iText headquarters, Gentbrugge

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