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PRIVACY, IDENTITY, ADVERTISING,
AND THE BLOCKCHAIN.
Inês Almeida
APD BEST OF THE NEXT - MAY 2018
Content. 1. The Sorry State of Privacy
2. The State of Identity
3. Brief Intro to Blockchain
4. Blockchain Possibilities: Identity, Privacy, and
Advertising
01
02
03
04
The Sorry State of Privacy
Privacy vs. Governments & Corporations
Surveillance
Personalisation
Targeting
PRIVACY
GOVERNMENT
“Security”
CORPORATIONS
Advertising
“The algorithms that orchestrate our ads
are starting to orchestrate our lives.”
Eli Pariser, The Filter Bubble: What the Internet is Hiding FromYou
2011
“Social media has swallowed the news – threatening
the funding of public-interest reporting and ushering
in an era when everyone has their own facts. But the
consequences go far beyond journalism.”
Katharine Viner, How technology disrupted the truth.The Guardian.
2016
What happened next will blow
your mind…
87million
users affected by the Facebook’s data
breach.
Objective: Election interference.
Privacy vs. Governments & Corporations
Surveillance
Personalisation
Targeting
PRIVACY
GOVERNMENT
“Security”
CORPORATIONS
Advertising
Privacy vs. Governments & Corporations
GOVERNMENT
“Security”
CORPORATIONS
Data as Business Model
IS THE ERA OF
PRIVACY IS OVER?
“Your money is nice, but tell me about your data.”
The biggest data breaches of the 21st
century also include:
• Ebay – 3b
• Equifax – 143m
• JP Morgan Chase – 76m
• Home Depot – 56m
• Target – 110m
• Adobe – 38m
• RSA Security – 40m
The data you capture is
always at risk.
€20 million or 4% of global annual
turnover penalty for non-compliance with
EU’s General Data Protection
Regulation.
Regulation is here to stay.
Privacy by design.
Continuous consent is necessary and
can be withdrawn at any time and just
in time without any friction or
complexity.
The inevitable consumer backlash.
• Ad blockers
• VPNs
• #DeleteFacebook
• Cryptocurrency
• Blockchain
• Telegram
• …
Inigo Montoya: Who are you?
Man in Black: No one of consequence.
Inigo Montoya: I must know.
Man in Black: Get used to disappointment.
Inigo Montoya: [shrugs] Okay. [resumes fighting]
The State of Identity
Your identity has traditionally been viewed
through the lens of an organisation and its needs
such as a bank, the government or Facebook.
Digital identity is not designed for your needs.
“You” & the organisation.
We have hundreds of online
personas at hundreds of
organisations.
These are stored in disconnected
proprietary systems owned by
government and businesses.
Updating an address is hard.
Fragmented identity.
• Personal id & biometrics
• Values & behaviours
• Preferences & buying patterns
• Credit rating
• Criminal history
• Professional experience
• Licences
• Genomic & health data (the new frontier of individual
profiling and fortune telling)
The ever expanding digital “identity”.
That require a third party root trust authority
• “I am John Williams”
• “I’m over 21!”
• “I have a health nutrition degree.”
• “I’m authorised to drive trucks.”
Verifiable claims.
Ratings & reviews
• Amazon
• Uber
• Airbnb
• Airtasker
Social media likes & shares
New trust indicators.
The clique & gig economies…
Beyond social status to net worth…
The Birth of the Internet of Value
Blockchain.
Out of scope.
• Cryptocurrency as security
• ICOs
• Financial advice
• Best wallets and exchanges
• The identity of Shatoshi
Nakamoto
• Silk road
In scope: The underlying technology framework and its potential.
The birth of Bitcoin.
When physical cash leaves your hands you
are not able to spend it again.
Double-spending problem.
Double-spending problem.
Online transfers Credit card payments E-commerce
With digital currency, things get a bit more complicated…
Financial intermediaries such as banks, clearing
houses, visa etc. engage in identity verification
and update their ledgers with transactions.
Double-spending problem.
Most brokers extract more value than they
produce.
Double-spending problem.
The illusive Shatoshi Nakamoto solved the
double-spending problem using a decentralisation
and cryptography.
Bitcoin. Problem solved.
• Financial brokers are replaced by public and
distributed ledgers running on a network of
computers around the world
• ​Each peer-to-peer transaction is replicated
across the network, making it immutable
• Lower transaction costs enable micropayments
The great decentralisation.
Encryption enables privacy & security.
A private key unlocks the information stored on
the distributed network.
Encryption.
Blockchain, the technology that runs Bitcoin
can do much more than just enable digital
currency.
Blockchain – The internet of value.
CRYPTOCURRENCY
Blockchain – The internet of value.
ANY VALUE EXCHANGE
Money, goods, property,
work, and even votes.
Blockchain – The great disintermediator.
FINANCIAL INSTITUTIONS
Blockchain – The great disintermediator.
TRUST SERVICE
PROVIDERS
Governments, financial and
legal institutions
“Instead of putting the taxi driver out of a
job, blockchain puts Uber out of a job
and lets the taxi drivers work with the
customer directly.”
Vitalik Buterin, Ethereum foundation
Brokers working to automate workers…
Blockchain working to automate brokers…
Shawarma anyone?
Blockchain pumping new life in the enterprise.
Businesses are trialling blockchain technology to gain cost savings and efficiencies, streamline
the supply chain, uncover new business models or compete with startups.
Example: Financial services sector.
Self-sovereign Identity
Powered by the Blockchain.
From this.
To this.
Issue & verify claims
Accepts, rejects and shares claims
Self-sovereign identity.
University Employer
CLAIM ISSUER CLAIM VERIFIERCLAIM HOLDER
PUBLIC BLOCKCHAIN
Signs claim Counter signs claim Verifies claim
Properties powered by the
blockchain
• Persistent
• Peer-to-peer
• Private
• “Just in time”
• Portable
Issuers have power to revoke some claims.
Interoperability is key.
Decentralised Identity
Foundation.
The open standards infrastructure for self-
sovereign identity is being developed now.
Permission Based Marketing & Advertising
Powered by the Blockchain.
As much as 56% of all display ad
dollars were lost to fraudulent
inventory in 2016.
​The cost of ad fraud globally is
expected to increase to $50 billion.
Ad fraud.
Source: Forrester.
94% of marketers don’t have a single view
about their consumers that could have
facilitated cross-platform continuity.
Fragmented experiences.
Source: HBR: What blockchain means for marketing.
Could drive:
• transparency in the advertising network
• responsible content delivery
• disintermediation of middle layers
• accountability
• relevance of content delivery
Blockchain-based advertising supply
chain.
Blockchain transaction speeds (10–30 secs)
are not fast enough for the ad-tech ecosystem
(millisecs).
But, it’s just a matter of time. Everyone in the
blockchain community is working on this
problem:
• Increase blocksize
• Off-chain transaction
• Scaling network size
• . . .
Not fast enough. Yet.
What if . . .
brands could engage in meaningful, consensual and distinct
connections, at the right place and time?
the ad dollars currently spent on brokers were used to reward
prospects’ time and customer loyalty?
These ideas are very difficult to implement, but the concept is gaining momentum.
What does this mean for businesses?
Privacy, Identity, Advertising and the Blockchain.
Keepaneyeonthelatestdevelopments.Permission-basedengagementisthefutureofmarketing.Thesesolutions
are,atbest,nascent,butbrandsmaybenefitfromfirstmoveradvantage.
Assess Blockchain technology.
The crossroad.
05
Blockchain G5 & IOT
Artificial
Intelligence
?
So what?
“Tech isn’t the underdog anymore. It’s time
to act like it.”
Eli Pariser, SXSW Interactive 2018 Hall of Fame speech
“I am no bird; and no net
ensnares me: I am a free
human being with an
independent will.”
CharlotteBrontë,JaneEyre
Act. Now.
DISCOVERY/
AWARENESS
RESEARCH
PURCHASE
BOOKINGS &
DELIVERY
INSTALLATION
SERVICE &
SUPPORT
REVIEW
TRUST
PlaceCustomerExperienceatthecenterof
yourstrategyandexecution.
PlaceTrustatthecenterofyourCustomer
Experience.
Thank you.
Inês Almeida
Chief Transformation Officer
ialmeida@apdgroup.com

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Blockchain Possibilities: Identity, Privacy, and Advertising

  • 1. PRIVACY, IDENTITY, ADVERTISING, AND THE BLOCKCHAIN. Inês Almeida APD BEST OF THE NEXT - MAY 2018
  • 2. Content. 1. The Sorry State of Privacy 2. The State of Identity 3. Brief Intro to Blockchain 4. Blockchain Possibilities: Identity, Privacy, and Advertising 01 02 03 04
  • 3. The Sorry State of Privacy
  • 4. Privacy vs. Governments & Corporations Surveillance Personalisation Targeting PRIVACY GOVERNMENT “Security” CORPORATIONS Advertising
  • 5. “The algorithms that orchestrate our ads are starting to orchestrate our lives.” Eli Pariser, The Filter Bubble: What the Internet is Hiding FromYou 2011
  • 6. “Social media has swallowed the news – threatening the funding of public-interest reporting and ushering in an era when everyone has their own facts. But the consequences go far beyond journalism.” Katharine Viner, How technology disrupted the truth.The Guardian. 2016
  • 7. What happened next will blow your mind…
  • 8. 87million users affected by the Facebook’s data breach. Objective: Election interference.
  • 9. Privacy vs. Governments & Corporations Surveillance Personalisation Targeting PRIVACY GOVERNMENT “Security” CORPORATIONS Advertising
  • 10. Privacy vs. Governments & Corporations GOVERNMENT “Security” CORPORATIONS Data as Business Model IS THE ERA OF PRIVACY IS OVER?
  • 11. “Your money is nice, but tell me about your data.”
  • 12. The biggest data breaches of the 21st century also include: • Ebay – 3b • Equifax – 143m • JP Morgan Chase – 76m • Home Depot – 56m • Target – 110m • Adobe – 38m • RSA Security – 40m The data you capture is always at risk.
  • 13. €20 million or 4% of global annual turnover penalty for non-compliance with EU’s General Data Protection Regulation. Regulation is here to stay.
  • 15. Continuous consent is necessary and can be withdrawn at any time and just in time without any friction or complexity.
  • 16. The inevitable consumer backlash. • Ad blockers • VPNs • #DeleteFacebook • Cryptocurrency • Blockchain • Telegram • … Inigo Montoya: Who are you? Man in Black: No one of consequence. Inigo Montoya: I must know. Man in Black: Get used to disappointment. Inigo Montoya: [shrugs] Okay. [resumes fighting]
  • 17. The State of Identity
  • 18. Your identity has traditionally been viewed through the lens of an organisation and its needs such as a bank, the government or Facebook. Digital identity is not designed for your needs. “You” & the organisation.
  • 19. We have hundreds of online personas at hundreds of organisations. These are stored in disconnected proprietary systems owned by government and businesses. Updating an address is hard. Fragmented identity.
  • 20. • Personal id & biometrics • Values & behaviours • Preferences & buying patterns • Credit rating • Criminal history • Professional experience • Licences • Genomic & health data (the new frontier of individual profiling and fortune telling) The ever expanding digital “identity”.
  • 21. That require a third party root trust authority • “I am John Williams” • “I’m over 21!” • “I have a health nutrition degree.” • “I’m authorised to drive trucks.” Verifiable claims.
  • 22. Ratings & reviews • Amazon • Uber • Airbnb • Airtasker Social media likes & shares New trust indicators.
  • 23. The clique & gig economies… Beyond social status to net worth…
  • 24. The Birth of the Internet of Value Blockchain.
  • 25. Out of scope. • Cryptocurrency as security • ICOs • Financial advice • Best wallets and exchanges • The identity of Shatoshi Nakamoto • Silk road In scope: The underlying technology framework and its potential.
  • 26. The birth of Bitcoin.
  • 27. When physical cash leaves your hands you are not able to spend it again. Double-spending problem.
  • 28. Double-spending problem. Online transfers Credit card payments E-commerce With digital currency, things get a bit more complicated…
  • 29. Financial intermediaries such as banks, clearing houses, visa etc. engage in identity verification and update their ledgers with transactions. Double-spending problem.
  • 30. Most brokers extract more value than they produce. Double-spending problem.
  • 31. The illusive Shatoshi Nakamoto solved the double-spending problem using a decentralisation and cryptography. Bitcoin. Problem solved.
  • 32. • Financial brokers are replaced by public and distributed ledgers running on a network of computers around the world • ​Each peer-to-peer transaction is replicated across the network, making it immutable • Lower transaction costs enable micropayments The great decentralisation.
  • 33. Encryption enables privacy & security. A private key unlocks the information stored on the distributed network. Encryption.
  • 34. Blockchain, the technology that runs Bitcoin can do much more than just enable digital currency.
  • 35. Blockchain – The internet of value. CRYPTOCURRENCY
  • 36. Blockchain – The internet of value. ANY VALUE EXCHANGE Money, goods, property, work, and even votes.
  • 37. Blockchain – The great disintermediator. FINANCIAL INSTITUTIONS
  • 38. Blockchain – The great disintermediator. TRUST SERVICE PROVIDERS Governments, financial and legal institutions
  • 39. “Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.” Vitalik Buterin, Ethereum foundation
  • 40. Brokers working to automate workers… Blockchain working to automate brokers… Shawarma anyone?
  • 41. Blockchain pumping new life in the enterprise. Businesses are trialling blockchain technology to gain cost savings and efficiencies, streamline the supply chain, uncover new business models or compete with startups. Example: Financial services sector.
  • 44. To this. Issue & verify claims Accepts, rejects and shares claims
  • 45. Self-sovereign identity. University Employer CLAIM ISSUER CLAIM VERIFIERCLAIM HOLDER PUBLIC BLOCKCHAIN Signs claim Counter signs claim Verifies claim Properties powered by the blockchain • Persistent • Peer-to-peer • Private • “Just in time” • Portable Issuers have power to revoke some claims.
  • 47. Decentralised Identity Foundation. The open standards infrastructure for self- sovereign identity is being developed now.
  • 48. Permission Based Marketing & Advertising Powered by the Blockchain.
  • 49. As much as 56% of all display ad dollars were lost to fraudulent inventory in 2016. ​The cost of ad fraud globally is expected to increase to $50 billion. Ad fraud. Source: Forrester.
  • 50. 94% of marketers don’t have a single view about their consumers that could have facilitated cross-platform continuity. Fragmented experiences. Source: HBR: What blockchain means for marketing.
  • 51. Could drive: • transparency in the advertising network • responsible content delivery • disintermediation of middle layers • accountability • relevance of content delivery Blockchain-based advertising supply chain.
  • 52. Blockchain transaction speeds (10–30 secs) are not fast enough for the ad-tech ecosystem (millisecs). But, it’s just a matter of time. Everyone in the blockchain community is working on this problem: • Increase blocksize • Off-chain transaction • Scaling network size • . . . Not fast enough. Yet.
  • 53. What if . . . brands could engage in meaningful, consensual and distinct connections, at the right place and time? the ad dollars currently spent on brokers were used to reward prospects’ time and customer loyalty?
  • 54. These ideas are very difficult to implement, but the concept is gaining momentum.
  • 55. What does this mean for businesses? Privacy, Identity, Advertising and the Blockchain.
  • 58. Blockchain G5 & IOT Artificial Intelligence ? So what?
  • 59. “Tech isn’t the underdog anymore. It’s time to act like it.” Eli Pariser, SXSW Interactive 2018 Hall of Fame speech
  • 60. “I am no bird; and no net ensnares me: I am a free human being with an independent will.” CharlotteBrontë,JaneEyre
  • 61. Act. Now. DISCOVERY/ AWARENESS RESEARCH PURCHASE BOOKINGS & DELIVERY INSTALLATION SERVICE & SUPPORT REVIEW TRUST PlaceCustomerExperienceatthecenterof yourstrategyandexecution. PlaceTrustatthecenterofyourCustomer Experience.
  • 62. Thank you. Inês Almeida Chief Transformation Officer ialmeida@apdgroup.com

Editor's Notes

  1. At that time and over the coming years I became
  2. At that time and over the coming years I became
  3. At that time and over the coming years I became
  4. http://www.backupworks.com/worldwide-digital-data-growth-44ZB.aspx
  5. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  6. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  7. http://www.backupworks.com/worldwide-digital-data-growth-44ZB.aspx
  8. http://www.backupworks.com/worldwide-digital-data-growth-44ZB.aspx
  9. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  10. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  11. https://www.technologyreview.com/lists/technologies/2018/
  12. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  13. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  14. https://www.coindesk.com/theres-alternative-facebook-called-self-sovereign-identity/
  15. At that time and over the coming years I became
  16. At that time and over the coming years I became
  17. http://uk.businessinsider.com/blockchain-technology-banking-finance-2017-9/?r=AU&IR=T
  18. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  19. https://www.csoonline.com/article/2130877/data-breach/the-biggest-data-breaches-of-the-21st-century.html
  20. https://www.computerworld.com/article/3244128/security/how-blockchain-makes-self-sovereign-identities-possible.html https://sovrin.org/wp-content/uploads/2017/06/The-Inevitable-Rise-of-Self-Sovereign-Identity.pdf
  21. https://www.coindesk.com/theres-alternative-facebook-called-self-sovereign-identity/
  22. https://www.coindesk.com/theres-alternative-facebook-called-self-sovereign-identity/ https://www.informationweek.com/infrastructure/pioneers-create-infrastructure-for-self-sovereign-identity-online/d/d-id/1331774 Projects: https://veres.one/ https://www.uport.me/ https://blog.sovrin.org/self-sovereign-identity/home
  23. https://hbr.org/2018/05/what-blockchain-could-mean-for-marketing
  24. https://hbr.org/2018/05/what-blockchain-could-mean-for-marketing
  25. https://docs.zilliqa.com/zilliqa-slides-updated.pdf
  26. At that time and over the coming years I became
  27. At that time and over the coming years I became