Enterprise Blockchain Is Dead

Transcript

talk about a rather provocative subject which is Enterprise blockchain is dead so I'm curious to find out more Fred this let's go around Applause thank you thank you hey everybody oh come on hey everybody are you asleep oh that's nice so yeah we try to pick a little bit of a provocative topic this year and they put us in the small room anyway but um what I wanted to do today is talk a little bit about how awesome the last 12 months has been because most people has been saying oh it's a bear Market it's really horrible we are hot link and all of that but from where I am standing in the blockchain world it's been phenomenal right so we've seen a

lot of huge Trends emerging verifying themselves but we also saw that the blockchain really is sort of maturing and a part of maturing is that some of the players go out of the space and it doesn't really work so um let's dig into it so as I said um we're sort of a pinnacle right now right so where utility tokens public permissions blockchains public commission blockchains is doing really really well so across the board when we look at the adoption rates when we look at new wallets when we look at Enterprise adoption um you know it's just green green but what actually is going to happen if we get into sort of a bull market where we see that utility tokens are just spiking up through this roof there might

be a couple of these Enterprises saying okay actually I thought it would only cost you know a fraction of a dime to do a transaction but now suddenly we are in you know ethereum land where it's a hundred bucks to do a transaction right so we're sort of standing at a level where we have certain parameters we need to solve for even though the world looks really awesome so what are we really talking about so this is like the only slide you should take a picture of today because this is sort of the main thing huh so what we saw is we saw a huge shift to third generation blockchains and we even saw some of this first and second generation blockchains are trying to update now what is a third generation blockchain well third generation blockchain works on the narrative that there is not just

one type of identity but there's multiple types of identity right there is not just one type of asset representation so like a Bitcoin on eth or an ADA but there is multiple types of asset representation and some of them hold zero or no Financial value so they're really like transactions in a decentralized distributed database and this is changing the game completely right because I was just in Brussels discussing the new Mika regulation and you know what it's all the banks and it's all the exchanges sitting in there and you know what they're all saying don't worry Regulators it's all capital markets and we have the licenses you know that's really a shame because I think there's a lot of things happening

around gaming around ngos around Enterprise adoption where we say yeah we don't necessarily need to have a financial intermediary to use a database right so this is a huge sort of uptake and a huge Epiphany moment for us to engage more with regulators and policy makers and We Gather quite a few layer one blockchains around us to to join that huh and then last but not least this we've seen a huge increase in sort of the use cases as metadata and different types of Contracting languages is emerging so so this shift has been really volatile under the sort of positively going up in the last 12 months the utility tokens we spoke about already regulatory Clarity is coming but

it's two Capital markets oriented unfortunately however we do see that Regulators are really you know they're coming to our door now and they're asking can you help us so we actually have a principal-based regulation so we have a situation that we're not killing growth across multiple Industries but we're actually looking at across all social systems including Financial systems so I think that's been super positive in the last 12 months so we've seen even though most people are saying you know we've seen a lot of regulatory enforcement and projects but we're actually seeing from the Enterprise sort of blockchain adoption and the layer one spaces we're actually seeing the opposite we're seeing Regulators who's investing in Talent we're seeing Regulators who is coming to us and they want to learn we even had to put our own

educational content out there focusing on policy makers and Regulators to talk about third generation blockchains the other half of what I spoke a lot about last year thought about you know these private blockchains and as you probably have seen the cost of operating them is just too high right so basically what the large Fortune 500 companies are seeing is that they trade-off to go to something who looks like a blockchain based infrastructure is too big if it's a private blockchain so they want to have something which is more towards public and every single week there's a new RFP in the market from a huge company representing a huge brand and in the first five lines it says something like it needs to be open

source and it needs to be a public blockchain I mean isn't that insane in a bear Market right now this is really changing crypto right because what it does is it's really changing what is crypto and what is the underlying fundamentals which crypto is based upon now there are evidence challenges I won't lie to is actually really hard to run a public commission this blockchain with a huge community and there's different stakeholders and how do you sort of you know hand over the beton to the Next Generation and how do you ensure they take you know what you feel is good decisions so I think most third generation blockchains they are sort of looking at you know this sort of governance challenges operational

resilience and I'll come back to that a little bit in a couple of later slides right but the notion is very simple if you are a large company or if you are a small company you have 10 employees or 20 employees and your world is a business on a blockchain wouldn't you like to participate in the decision making and the infrastructure you base your business and 10 20 50 families on you would right and therefore it's super important that we actually create a way where not just large companies but also small companies who actually bet the infrastructure and can participate now I showed you this last year and we had a long discussion about what it means and how a circular system goes towards economic sustainability so if

for those of you who are here last year you will see this has been dramatically updated it's still the same picture but there's a lot more clarity around those boxes and what I wanted to spend some time on is talking about in general but I would use cadano as an example because I do think there's some really good blockchains out there but in general what are the big challenges we are facing right now and what do we need to answer to get well the previous panel spoke about institutional adoption which sorry we got that right you know JP Morgan is is is using crypto right so Fidelity is using crypto you know you can pay for PWC services using crypto right I mean I mean it's there right so when I speak about inter institutional adoption and speaking about when our institutions like large larger

Enterprises or relevant Enterprises actually starting to use the blockchain as intended and crypto is just one of those components right so what we saw um and specifically on cadana right but it is goes hand in hand with many other blockchains is that we haven't seen a lot of radical new innovation I might be a little bit hard now right but what we saw is is Bitcoin and Bitcoin really changed the narrative and then we've seen the nfts now we also saw a huge growth in what we call consuming the blockchain um but what really is happening is that the Legacy businesses is coming fast and faster I put a couple of logos in here which you know could mean something for somebody so here is an Asian state for instance here is a large so you know a

reforest education project yes United Nations humanitarian crisis organization right but what we could also do there is we could put Mercedes in there because they have a live application on a blockchain we could also put in Coca-Cola right so suddenly what we're seeing is that instead of all these you know we have a little Innovation arm and they're playing around with something in the basement well that's actually maturing and coming in in the real operating model and that's when it gets really interesting because they start having questions about this landscape so if I'm suddenly responsible for 10 000 employees and I'm under EU gdpr and consumer protection I have distribution in 50 different countries how do I ensure because I live up in the green box up there how do I ensure that I can actually contribute to the code

Repository stories how to ensure that the incentive parameters for the blockchain which I am living on or have a part of my business on that I can sit at the governance table that I know that they're there in 20 years time but it's not just an echo of that in 20 years time and how do I ensure that the features down in the lower right corner is in such a way that the new products I'm having in my pipeline they also can live on the blockchain and now what you suddenly are faced with is a situation of of trade-offs right so this is a picture just a metadata right the metadata we're often saying you know the data is the it's the new oil right it's the blood of a company and we've been protecting data for so long that most people is really scared about

opening up to the engine room and getting Innovation happening right so when we see here sort of Bitcoin had about 50 or half about 50 bytes in a transaction ethereum the second generation of about 70 bytes and this is I could have put you know Teslas and pocket and a few others up there right but this is our ability now to take valuable data from an Enterprise application and start using the blockchain for something relevant so if you imagine I mean uh we are in crypto Valley today right you can sort of think about market cap right so and then you can do the same sort of sort of thought about where the world will be going right but what I'm really trying to say to is that you haven't seen anything yet you know this is just the start what

we've been living through in the last eight years of revolution from Satoshi to now you know this is going to be a block on the time curve compared to what you're going to see in the next five to six years because we are now not just talking about something who might go away and not go away we're talking about something where nation states Regulators huge chunks of you know businesses you know the largest businesses in this world are starting to take this serious and for those of you who think that AI just took over the whole show well I got news for you right there's two ways of looking at AI one is Computing models right so computational models so that's like Wolfram Alpha so basically you're looking at facts you're trying to get

into a place where you can compute an answer and then you have the neural networks and the text-based edits as we're seeing right now which is really on a high and it's super interesting right but what they're doing is they're not talking about what was right or what's wrong they're looking at a large data set of unstructured data and saying if there's more of X then X must be correct but what we can then do is we can put a blockchain underneath that and we can get better data which means we get better decision making and we can now use the text editor to do code right so we can program a smart contract using chat DBT right that basically lowers the barrier for most people to actually interact with the blockchain which is good right right and when you then add a little bit

more extra text space so you can put some more stuff on the blockchain you're actually able to solve really big problems so the problem about operation resilience is such the Internet by the way this is an old slides you've probably seen it before right but a lot of people got really shocked when they actually noticed that there was a little repo who was maintained by a private individual in Nebraska which is basically the whole internet is built on right and unfortunately we do still see that with some blockchains and we still need to be very much aware of how how do we answer those questions in the old world we have a framework for that it's called a sock 2 audit on Esa 8341 type 2 audit if you're in financial services right but

there's a way which the governments are trying to mitigate the when you become a substantial infrastructure component and therefore I really urge you to do because a lot of you have a lot of experience right you know start looking after those small things who can break down the whole blockchain and instead of hiding it point it out okay point it out because the more of those chinks in the armor we can take away the more ready we are to answer those questions to get another million people on a blockchain last but not least as you've probably seen many places sidechain architecture is really coming off right so this is a slide we actually did for the Singapore monetary authorities

um the reason we did that is because they had a public consultation right where they were saying we want to build Capital Market infrastructure on open source and public commission there's blockchains that's a regulator huh that's pretty insane and yes they've done the first couple of Trades already so what we wanted to say is that it's not just an ethereum but there's a lot of layer 3 blockchains who actually have mature layer 2 Solutions where you can do you know unlimited amount of transactions you can even change the consensus algorithm you can have a permissioned environment which you can port in to a layer one public permission is these things are live now it's not just something we're talking about as we've been doing in the last couple of years

and it's not just with kidano huh so but the the hardest point we're facing right now in sort of in the maturity part is that one of the chinks one of those small little foundational pillars who might tumble the house is governance right because as more and more people come they'll be more more interest and that is for me what I call the talk of War so the first question we have is how do we change the Rope so every public commission is blockchain well probably even every blockchain has some kind of a change management system and how do we ensure that that change management system that we can change the ropes of the blockchain while thousands of businesses in cardano's case we have you know we're getting close to 2 000

businesses who's deploying and living on karano how can we change the Machinery change maybe some of the rules while these people depend on it right that's a huge attack Vector this attack Vector we don't have on bitcoin Bitcoin is sort of the Holy Grail right but it doesn't have any changes either right so when you look at the talk of War you see the incentives of the participants and Bitcoin is is a little bit of a stalemate which is amazing it means that it's super stable no attack vectors it doesn't go away it keeps bothering everybody right and it just works right when we have these third generation blockchains what we're doing is we are adjusting the tech stack as we understand the needs and the features of the companies you're representing and

when we do that right then you introduce attack vectors and if you don't want to have a decentralized ecosystem you have to ask yourself is that okay so we have thousands of companies who's asking for code updates and features and you're having different optimums in terms of transaction fees and attacks and adversaries right and on the other hand you want to have these new features in there that's a really hard problem to solve excited about it is it introduces these opportunities for Q a and cyber security companies to come in now and actually live on the blockchain because there's coming to enough substance for them to specialize into it so who

ends on a blockchain that the one who owns the tokens is that the one who sacrifices the day-to-day job in decentralized finance and they're now built on a blockchain where they have employees and the community and everybody there so they're basically depending on this blockchain shouldn't they have equal rights or even more rights than the one who holds the tokens what about the one who actually operates the blockchain so in Canada as you know is a is a proof of stake blockchain right we have more than 3 000 operators of the blockchain right shouldn't they have a say in it and what's the best optimum of that so so this is a really hard problem to solve and you know probably you get you know you know you get a price if you solve it but that's why we have with

cardano at the moment so everything actually looks super super green where we are looking at it from and what we're trying to do right now is we're saying that the kidana foundation can no longer be unbiased it can no longer be representing the whole Community because if the community now is millions of people who's interacting with different interests what we need to get to is a situation that you can still have a public commission that's infrastructure with everybody even if you don't have an ID that you can contribute to you can live on you can participate in right and then you have the kidana foundation where we're trying to unlock some of those Rivals and show not just the regulator but Inspire everybody to see what you can actually build on a

therefore I highly encourage you to go down to a booth if you haven't been there already and kind of you know figure out why it is that you know the blockchain not just kidano is open for business huh so thank you very much and I hope we can take a question [Applause] [Laughter]