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SPEAKER:
How can Blockchain
amplify Digital Identifiers
Improving Data Persistence, Openness
and Trust in the modern world...
Presentation plan
 Digital Identifiers and their challenges
 Why Blockchain?
 The concept of using Blockchain 2.0 Smart...
Digital Identifiers and their challenges
UniquenessOpenness Decentralization
Non-
repudiation
ResilienceAuthenticity Neutr...
Digital Identifiers Examples
Legal Entity Identifiers (GLEIF)LEI
International Securities Identification Number (ANNA)ISIN...
WHY
?
The most important features of Blockchain
explained along three fundamental axes.
Decentralized exchange
medium for moving...
Why is Blockchain a game changer for Digital IDs ?
 Trust
 Data openness
 Uniqueness
 Decentralization
 Non-repudiati...
Blockchain - a metaphor
Open Data carved in stone
Existing uses of Blockchain for Identifiers
 Blockstack
…the first implementation of a decentralized DNS
system on top of...
Blockchain evolution
Bitcoin and other Crypto Currencies
“The deployment of cryptocurrencies”
Quotations from: “Blockchain...
The idea of using
Blockchain 2.0 Smart Contracts
for Identification Services
Blockchain 2.0 Smart Contracts for Identification
Services. I - The central tenet
A record for entity to be
identified by ...
Blockchain 2.0 Smart Contracts for Identification
Services. II – The Entity Contract
Contracts offer methods for
accessing...
Blockchain 2.0 Smart Contracts for Identification
Services. III - Architecture
The suggested architecture
for the Digital ...
Blockchain 2.0 Smart Contracts for Identification
Services. IV – Consensus mechanisms
The most suitable for Digital Identi...
Building
Blockchain based system
for LEI
LEI – Legal Entity Identifier
 The Legal Entity Identifier (LEI) is an
alpha-numeric code based on the
ISO 17442.
 LEI c...
Step I – Creating LEI Resolver – LEI.INFO
5493001KJTIIGC8Y1R12 http://lei.info/5493001KJTIIGC8Y1R12
Visual for Human
Web M...
Step II – Adding attractive UX on all devices
Visual for Human Web Media (HTML)2 http://lei.info/5493001KJTIIGC8Y1R12
Step III – Generating Data for machine consumption
Data for Machine consumption
The data can be returned
in multiple forma...
Step IV – defining data semantics - GLEIO
GLEIO Ontology
Lightweight ontology describing
LEI Level 1
Adding LEI temporal...
The fundamental principles for the POC 1.0:
Modelling a small consortium blockchain (only 3 nodes for the POC 1.0)
Using...
POC 1.0 Web interface
http://leiblc.mm.com.pl/POC.html
POC 1.0 Web interface and JSON-LD LEI representation
Step VI – MakoLab POC 2.0
 Representing entire current LEI dataset
(0.5 M records) on the Ethereum
blockchain
 Using GLE...
Extras: Embedding Ontology into the Blockchain
 Since Blockchain is a state machine …
 … Ontology can not be an external...
Lessons Learned from the LEI POCs
 Ethereum is a very good platform for building Blockchain based system for
Digital Iden...
Lessons Learned from the LEI POCs
 Index and cache security is important
 POW difficulty can be easily adjusted (low for...
Results: Possibility for radically new LEI system
 Large Consortium Blockchain with Proof-Of-Authority consensus mechanis...
Results: Possibility for radically new LEI system
GLEIF
Body responsible for
application of global uniform
standards
LOU
L...
What is next?
Next steps in our Blockchain research will include:
 Replacing POW (Proof-of-Work) by PoA (Proof-of-Authori...
Conclusions
 Blockchain technology is the ideal choice for Digital Identifiers working in
the public space
 Blockchain o...
Contact
Dominik Kuziński
MakoLab SA
Rzgowska 30
93-172 Łódź
Poland
dominik.kuzinski@makolab.com
Brandon Pate
MakoLab USA I...
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How Can Blockchain amplify Digital Identifiers? Improving Data Persistence, Openness, and Trust in the modern world.

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My talk at Data Amplified XBRL conference in Singapore on November 10, 2016.

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How Can Blockchain amplify Digital Identifiers? Improving Data Persistence, Openness, and Trust in the modern world.

  1. 1. SPEAKER: How can Blockchain amplify Digital Identifiers Improving Data Persistence, Openness and Trust in the modern world. Dr Mirek Sopek MakoLab SA, Poland
  2. 2. Presentation plan  Digital Identifiers and their challenges  Why Blockchain?  The concept of using Blockchain 2.0 Smart Contracts for Digital Identifiers  Building Blockchain based system for LEI – our POC  Lessons learned from the POC  Possibility for radically new LEI system  Conclusions
  3. 3. Digital Identifiers and their challenges UniquenessOpenness Decentralization Non- repudiation ResilienceAuthenticity Neutrality Persistence
  4. 4. Digital Identifiers Examples Legal Entity Identifiers (GLEIF)LEI International Securities Identification Number (ANNA)ISIN Financial Instrument Global Identifier (Bloomberg)FIGI Unique Product/Transaction Identifiers (CMPI – BIS)UPI, UTI Companies Registration Numbers/VAT (Various National Agencies, Registrars)CRN, VAT Electronic Product Codes, European Article Numbering (GS1 - EAN UCC)EPC, EAN Vehicle Identification Number (Automotive Manufacturers)VIN
  5. 5. WHY ?
  6. 6. The most important features of Blockchain explained along three fundamental axes. Decentralized exchange medium for moving value and trusted data between participants. A new, trusted way for contractual transactions not requiring intermediary assistance. Massively distributed ledger-type tamper resistant database. Technology Business Law
  7. 7. Why is Blockchain a game changer for Digital IDs ?  Trust  Data openness  Uniqueness  Decentralization  Non-repudiation  Authenticity  Resilience and persistence  Neutrality  warranted by independence from any form of technological or organizational frames.  guaranteed by mathematics and algorithmic consensus supported by replication technology  ensured by the associated algorithms  guaranteed by the system architecture  ensured by data immutability  guaranteed by consensus mechanisms  ensured by total system distributivity
  8. 8. Blockchain - a metaphor Open Data carved in stone
  9. 9. Existing uses of Blockchain for Identifiers  Blockstack …the first implementation of a decentralized DNS system on top of the Bitcoin blockchain”  Namecoin The cryptocurrency with applications for naming ( .bit domain)  … and more: ShoCard, Hypr, BlockAuth (Neuroware), CryptID …
  10. 10. Blockchain evolution Bitcoin and other Crypto Currencies “The deployment of cryptocurrencies” Quotations from: “Blockchain” by Melanie Swan, O'Reilly Media, Inc. Contracts and Identities “The entire slate of economic, market, and financial applications using the blockchain that are more extensive than simple cash transactions” Applications “Beyond currency, finance, and markets”Blockchain 3.0 Blockchain 2.0 Blockchain 1.0
  11. 11. The idea of using Blockchain 2.0 Smart Contracts for Identification Services
  12. 12. Blockchain 2.0 Smart Contracts for Identification Services. I - The central tenet A record for entity to be identified by some KEY is "atomic" and is curated* as a single unit of data. The representation of a single “atomic” record is defined as a state of a single smart contract. * by the authority that assigns the KEYs.
  13. 13. Blockchain 2.0 Smart Contracts for Identification Services. II – The Entity Contract Contracts offer methods for accessing the representation, and a data structure that holds its "revisions". If a record changes globally, its new representation would be added to the state of the contract.
  14. 14. Blockchain 2.0 Smart Contracts for Identification Services. III - Architecture The suggested architecture for the Digital Identifiers on the blockchain is: Consortium blockchains sometimes called also: „Permissioned blockchains” Vitalik Buterin - https://blog.ethereum.org/2015/08/07/on-public-and-private-blockchains/
  15. 15. Blockchain 2.0 Smart Contracts for Identification Services. IV – Consensus mechanisms The most suitable for Digital Identifiers: PoA - Proof of authority. Proof-of-Authority chains utilize a number of secret keys (authorities) to collaborate and create the longest chain instead of the public proof-of-work scheme. TurboEthereum supports PoA private chains through the Fluidity Core Ethereum client. Ethcore Parity is building PoA into its High-performance & low-footprint Ethereum client.
  16. 16. Building Blockchain based system for LEI
  17. 17. LEI – Legal Entity Identifier  The Legal Entity Identifier (LEI) is an alpha-numeric code based on the ISO 17442.  LEI connects to key reference information that enables clear and unique identification of legal entities participating in financial transactions.  Publicly available LEI data pool forms a global directory, which enhances transparency in the global marketplace. www.gleif.org
  18. 18. Step I – Creating LEI Resolver – LEI.INFO 5493001KJTIIGC8Y1R12 http://lei.info/5493001KJTIIGC8Y1R12 Visual for Human Web Media (HTML) Data for Machine consumption (RDF) Picture for Paper Media (QR-Code) 1 Create URI LEI.INFOi 2 http://lei.info/5493001KJTIIGC8Y1R12
  19. 19. Step II – Adding attractive UX on all devices Visual for Human Web Media (HTML)2 http://lei.info/5493001KJTIIGC8Y1R12
  20. 20. Step III – Generating Data for machine consumption Data for Machine consumption The data can be returned in multiple formats: 2 http://lei.info/5493001KJTIIGC8Y1R12
  21. 21. Step IV – defining data semantics - GLEIO GLEIO Ontology Lightweight ontology describing LEI Level 1 Adding LEI temporal aspects Award winning – FOIS 2016 LEI Level 2 ready http://lei.info/gleio
  22. 22. The fundamental principles for the POC 1.0: Modelling a small consortium blockchain (only 3 nodes for the POC 1.0) Using private Ethereum as smart contract platform (distributed cluster) Three LOUs (Local Operating Units) modelled LEIs expressed as JSON-LD objects Human Interface build as a Web Application Step V – Blockchain Proof of Concept (1.0)
  23. 23. POC 1.0 Web interface http://leiblc.mm.com.pl/POC.html
  24. 24. POC 1.0 Web interface and JSON-LD LEI representation
  25. 25. Step VI – MakoLab POC 2.0  Representing entire current LEI dataset (0.5 M records) on the Ethereum blockchain  Using GLEIO Ontology for data semantics (as external resource)  New UI – similar to LEI resolver  New, more powerful backoffice (using .NET technology)  New, secure (blockchain-based) methods for cache protection
  26. 26. Extras: Embedding Ontology into the Blockchain  Since Blockchain is a state machine …  … Ontology can not be an external object to the Blockchain  It must be embedded into the Blockchain - We have invented a method how to do it. contract Class { address public subClassOf; string public label; string public comment; function Class(address _subClassOf, string _label, string _comment) { subClassOf = _subClassOf; label = _label; comment = _comment; } } contract Instance { address public isA; //address of Class contract describing entity } contract LeiRecord is Instance { struct Revision { bytes data; Solidity contracts OWL Ontology
  27. 27. Lessons Learned from the LEI POCs  Ethereum is a very good platform for building Blockchain based system for Digital Identifiers  However, Blockchain software is not enough to build a fully functional identification system  The need for indexing and caching is important (access time to LEI data varied between few hundreds ms to ~2 seconds depending on the number of LEI record revisions)
  28. 28. Lessons Learned from the LEI POCs  Index and cache security is important  POW difficulty can be easily adjusted (low for initial blockchain creation, higher for new entries and updates)  Semantic Layer is needed for adding meaning to smart contracts (e.g. GLEIO Ontology for LEI) – next on our POC but …  … we need a method to embed Ontology into the Blockchain
  29. 29. Results: Possibility for radically new LEI system  Large Consortium Blockchain with Proof-Of-Authority consensus mechanism  Extending capacity of registration beyond LOUs (adding registrars)  Enabling Legal Entities’ full ownership of their LEIs through Multisignatures (the block with its LEI is signed by both the authority and the Entity)
  30. 30. Results: Possibility for radically new LEI system GLEIF Body responsible for application of global uniform standards LOU LOU LOU LOU LOU LOU LOU LOU LOU LOU Legal Entities registrars LOU Local Operating Units LOU
  31. 31. What is next? Next steps in our Blockchain research will include:  Replacing POW (Proof-of-Work) by PoA (Proof-of-Authority)  Modelling and testing a very large distributed system  Further work on Ontology Embedding and data semantics  Building interfaces for LEI Authorities  Testing Multisignatures for LEI registration
  32. 32. Conclusions  Blockchain technology is the ideal choice for Digital Identifiers working in the public space  Blockchain offers non-repudiation, persistence, fault-tolerant operation, security (authenticity), trust and low-cost decentralized management  For Identifiers assigned by distributed system of affiliated organizations (like LOUs and registrars) – the consortium Blockchains form the ideal organizational framework  Combining PoA – Proof-Of-Authority with Mulitisignatures creates possibilities for the strong LEI identifier ownership model creating radically new LEI system
  33. 33. Contact Dominik Kuziński MakoLab SA Rzgowska 30 93-172 Łódź Poland dominik.kuzinski@makolab.com Brandon Pate MakoLab USA Inc. 20 West University Ave., Gainesville, FL 32601 USA brandon.pate@makolab.com Mirek Sopek MakoLab SA Demokratyczna 46 93-430 Lodz Poland +48 600 814 537 sopek@makolab.com

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