IESE Barcelona, 12th of March 2019 Blockchain in Government. From hype to reality Miquel Estape Deputy CEO Strategy & Innovation

1. Blockchain in Governments:
from hype to reality
IESE Barcelona, 12th March 2019
Miquel Estapé

2. Agenda
1. WhyBlockchain in Government
2. What is the current situation
3. What are the limitationsof Blockchain
4. A use case: Self Sovereign Identity

3. Why

4. Since ancient times Government has acted as an Intermediary
Sumerian (Iraq). Oldest
writing. Account of silver
for the governor. 2500 BC
Lydia (Turkey).
First coin. 600 BC

5. Blockchain is a disruptive technology
Builds trustworthy transactions between
parties without intermediaries
It may disrupt
Governments

6. Situation

7. Currently there
very few
blockchain
services live in
Government and
all of them are at
early stages

8. Gartner Hype Cycle for Digital Government, 2018
“Gartner expects it
will be at least five
years until the
technology
matures and
begins to deliver
benefits, but it will
lead to radical
transformation of
some government
functions and
services”

9. Blockchain: Latest advice for government agencies 12 February 2019
• Research how blockchain is being used in public & private sectors.
• Findings consistent with NIST (USA), OCDE & Gartner recommendations
• Blockchain is still an emerging technology and, when considered
against alternative technologies, gaps become evident
• Recommend focus on addressing the needs of users
• This should not stop agencies searching for innovative solutions
https://www.dta.gov.au/news/blockchain-latest-advice-government-agencies

10. Limitations

11. What are the Blockchain limitations?
”You are stronger when you know your weaknesses” Anonymous
• Not record of
information (logs)
• Not cheap
• Not fast
• Anonymity & no
confidentiality
• Not easy to scale
• Nobody is liable
However, Blockchain may be a major breakthrough !

12. Blockchain is not a mature technology (yet)
Governments have
the responsibility to:
• learn, experiment
and evaluate
disruptive tech
• promote
prototypes and
pilots of
innovative public
services

13. Two radically different approaches
Jim Collins “Good to Great”
About successful long-
term companies
“they do not adopt a
new technology just
because it is the latest
trend or state of the
art: if it does align
with your mission and
strategy, then you
need to take it by the
horns and become a
pioneer in it. But, if it
isn’t, then you should
ignore it.”
1st Approach
• Blockchain can be
used in almost any
use case
• Criteria: most
significant media
impact
• Learn about how to
use the blockchain
tech, not about its
added public value
• Risk to create
problems where we
already have good
solutions
2nd Approach
• Identify challenges not
solved so far with
existing technologies
• Analyze if blockchain
can help us out
• It is a disruptive tech.
Let’s use it in
disruptive business
cases
• Understand the
challenges and the
restrictions of the
blockchain

14. An example of the 1st
approach
What is the added value
of this use case?
Is this solution better than
a centralized register?

15. Identity

16. +70 accounts per user

17. Challenges about the Digital Identity
• Inefficient and Insecure
– Fragmented. Time-consuming. Annoying. Not safe
• Lack of a Digital Identity is a barrier
– 80% Internet users vs 35% e-transactions (Gov)
• Synergies between public & private sector
– Transactions: 3xYear (Gov) vs 10xDay (Private)
– eID success cases: private + public sector
• A global world, a global identity
– One Digital identity for all over the world
• Savings
– 18€ per online transaction
– User/password management is very costly

18. What is “identity”?
49
Engineer
PDD in IESE
Works in AOC
Lives in la Roca
Health records
Friends
+3000 Linkedin contacts
+1.500 twitter contacts
Public Management Society
Lawer
Notary
Bank
Insurance

19. SSI Principles
• Self-managed identity
– Gov does not ”own” the eID
– No central authority controls it
• Consent Driven
– Control of personal data: privacy
– Verifiable claims
• Portable
• Open by Default
• International Standards
• Secure & Trustworthy

21. Disclaimer: The views, thoughts, and opinions expressed in this presentation belong solely to the author,
and not necessarily to the author’s employer, organization, committee or other group or individual.
Blockchain in Governments:
from hype to reality
IESE Barcelona, 12th March 2019
Miquel Estapé