Data Democratization, Blockchain-native Economy

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Towards the Blockchain-native Economy
Sei Kato, Oct. 7, 2019

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Source: https://www.nature.com/nature/volumes/529/issues/7587, http://www.bitcoin.org/bitcoin.pdf, https://www.tri.global/, https://www.flickr.com/photos/ibm_research_zurich/
The Fourth Industrial Revolution Moves On

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Now blockchain has become the core for the trustless systems
3RIETI Blockchain Symposium
bitcoin
blockchain
blockchain
2008
Cryptocurrency (BTC, ETH, XEM, ….),
STO/ICO, Sharing, SCM…
PHR/HER, e-GOV, IoT, PDS…
blockchain platforms,…
IAM, distributed ledger, smart contract,
cryptography, P2P computing, consensus
mechanism, …
2019

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Let us recap
the current data-driven business

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The growth of IoT systems and data consumption is fueled by a set
of emerging data-driven business models
5RIETI Blockchain Symposium
Category Examples Revenue Models
Augment Core Product
Adding sensors, processors, and
connectivity to existing core
products.
• GECAS Engine Leasing
• Google Nest
• Premium Pricing
• Product as a Service
Data-Driven Solutions
Directly or indirectly monetize
IoT data, either by selling data
outright or develop solutions on
top.
• GE Predix
• Siemens Mindsphere
• Ayla Networks
• Data / Analytics Subscriptions
• Managed Services
• Customized Solutions
Ecosystem
Orchestration
Monetize the ecosystem from an
orchestrator’s role, by enabling
ecosystem players to build &
succeed through a platform.
• Airbus Skywise
• Schneider Electric Exchange
• Ecosystems Services
• Platform Licensing
• Platform Revenue Sharing
Source: Taraxa Analysis

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One common feature in these models is that they all require the
centralized control of critical resources
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Centralized Data Aggregation Centralized Platform
Data
aggregator
Data generators Data consumers
Platform
owner
Participants
Source: Taraxa Analysis
Augment Core Product
Data-Driven Solutions
Ecosystem Orchestration

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The market is naturally addressing these concerns by experimenting
with decentralized models across a variety of verticals
7RIETI Blockchain SymposiumSource: Taraxa Analysis
Energy
Media
Healthcare
Real Estate
Distributed energy
DApp platform
Distributed blog &
rewards platform
Distributed DNA data
platform
Distributed real estate
listing & registry
Distributed energy
market
Distributed gaming
video platform
Distributed patient
data for pharma.
Distributed short-term
rentals platform.
Distributed energy
exchange
Distributed video
encoding network
Distributed insurance
claims data exchange.
Distributed real estate
escrow & purchase.

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What about the automotive industry?

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✓ Automotive data exchange
✓ MaaS x Blockchain
✓ SCM
✓ Traceability
✓ …

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Distributed automotive data exchange market use case
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Generator Storage Broker Buyer
Blockchain
Buyer submits a
purchase request
Broker synchronizes
data availability &
sales records
Generator uploads
encrypted data
Generator defines
data permissions on
the blockchain
Blockchain notifies
purchase intent
Storage pushes
encrypted data upon
request
Broker consolidates and
delivers encrypted data
0
0
1
2
3
4
5
6
Storage
synchronizes
data permissions
Broker queries
pricing and locks
payment in
escrow
Generator grants
permission & gets
paid
Source: Taraxa Analysis

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(Reference) Who would be the owner of our data?
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Theorem (Coarse 1960)
If trade in an externality is possible and there are
sufficiently low transaction costs, bargaining will
lead to a Pareto efficient outcome regardless of
the initial allocation of property. In practice,
obstacles to bargaining or poorly defined
property rights can prevent Coasean bargaining.
Coase, Ronald H. (1960), "The Nature of the Firm". Economica. 4 (16): 386–405.

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Let us build a new economy towards “Society 5.0”
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blockchain
blockchain-native economy
2019
Cryptocurrency (BTC, ETH, XEM, ….),
STO/ICO, Sharing, SCM…
PHR/HER, e-GOV, IoT, PDS…
blockchain platforms,…
IAM, distributed ledger, smart contract,
cryptography, P2P computing, consensus
mechanism, …
Vision
✓ Token Economy
✓ Data Democratization
✓ Distributed Data Exchange
✓ …
+
✓ MaaS
✓ Autonomous Vehicle
✓ …

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Thank you