Blockchain technology is a disruptive technology which has emerged in the last 5 years. Today, different concrete implementations were performed and are operational like Bitcoin. This talk summarizes different success stories and highlights open source aspect and the governance of their implementations. A specific focus is done on who takes benefits from Blockchain technology.

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Blockchain, a disruptive
Technology, Governance
and Usage
SEBASTIEN KELLER (THALES SIX GBU – ADVANCED
STUDIES)
07/06/2018

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Blockchain, a disruptive
Technology

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What is Blockchain ?
1 Blockchain for Dummies – IBM Limited Edition

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key concepts of Blockchain for business
▌ Shared ledger
▌ Permissions
▌ Consensus
▌ Smart contracts
1 Blockchain for Dummies – IBM Limited Edition

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Finally !
▌ Blockchain is not only a secured distributed storage
▌ Blockchain is not a disruptive technology but a foundational technology

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Blockchain, a disruptive
Governance

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Blockchain Governance
▌ Definition 1
“Governance refers to all actions such as decision-making processes that are
involved in creating, updating, and abandoning formal and informal rules of a
system. These rules can be code (e.g. smart contracts), laws (e.g. fees for malign
actors), processes (what must be done when X happens), or responsibilities (who
must do what).”
▌ Blockchain Context
In the Blockchain space, there are three broad types of such rules which translate
to different areas where Blockchain governance is needed;
- Blockchain or network governance,
- fund governance,
- solution governance.
1 http://researchly.leobosankic.com/2018/04/29/blockchain-governance-takeaways-nine-projects/

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Network Governance
▌ Definition
“Blockchain or network governance is needed to achieve network mining
consensus through special algorithms. Typical algorithms are Proof-of-Work (PoW),
Proof-of-Stake (PoS) and a hybrid of these.”
▌ Consensus definition?
All the miners are in competition to add the next block to the Blockchain but only
one of them will be selected to perform that (and will be paid), this selection
being unpredictable for every new block. This unpredictable character is very
important for the security of the Blockchain: because nobody knows which miner
will be chosen, a hostile miner has a low probability to be selected, and thus has
not much interest to attack the system because he has not much luck to
succeed.

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Network Governance
▌ Different examples of Consensus
Proof of Work (PoW)
Proof of Stake (PoS)
Practical Byzantine Fault Tolerance (PBFT)

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Funding governance
▌ Funding governance regulates how projects manage collected funds.
Funding source: Defines the funds’ source, i.e. where do funds come from (e.g. a
cut of mining rewards)
Funding amount: Defines how much funds are collected (e.g. 10% of all mining
rewards)
Funds Administrator: Defines who collects, spends, and keeps the funds
Fund usages: Defines what should be done with the funds
Reporting process: Defines how the fund usage should be communicated to the
outside (e.g. through quarterly financial statements)

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Solution governance
▌ Solution governance deals with all topics related to the technology (i.e.
the code), Blockchain/network governance, funding governance, and
meta-governance (i.e. changing the governance process itself).
Blockchain parameters (e.g. changing block size or gas prices)
Fixing bugs, adding new features, new version
Other aspects : Recovery of lost coins due to hacks for example

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Blockchain, a disruptive
Usage

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Different usages
Access to
Transactions
Access to transaction validation
Permissioned Permissionless
Public All nodes can read and submit
transactions. Only authorized nodes
can validate transactions
All nodes can read, submit,
and validate transactions
Private Only authorized nodes can read,
submit, and validate transactions
Not applicable
▌ Main aspects
To have to manage decentralized autonomous organizations (DAO).
To be interested by transactions where immutability, resilience, transparency are
important.

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Public Blockchain
▌ Technology
Most of existing Blockchains implementations are public
A trust based on several years of usage
A large number of existing client implementations (C++, java, python, …)
▌ Governance
PoW approach to have an important amount of miners
Usage of a cryptocurrency with reward and fees
- Infrastructure is ready to be used
▌ Example
Cryptocurrency
Assets transfers
Logistic, Supply chain, maintenance

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Private Blockchain
▌ Technology
Most of existing Blockchains implementations are Open Source and can be deployed
privately
▌ Governance
A basic trust exists inside a consortium so:
- Funding model depending on the motivation
- PoW approach not adapted, other Consensus have to be used (PoS, …)
- Need an Infrastructure for the Blockchain deployement
▌ Example
Internal currency
Logistic, Supply chain, maintenance

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Examples

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NRG-5 Vision
1. Definition of an extended
MEC software stack for fast
and optimal deployment
of generic and utility-
centric VNFs
2. Build on MCM
communications through
the development of
generic and utility centric
VNFs
3. Realizing an extended 5G
ETSI-MANO framework
integrating analytics in the
OSS/MANO layers
addressing smart energy
applications requirements

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Different Blockchain initiatives
▌ Private Blockchain
▌ Military use case
- Messages exchanged inside a coalition
- Supply chain
- Access control based on Blockchain
▌ Public Blockchain
▌ Civil use case
- Enforcement of security for cryptocurrency
- Logistic