Tapping the Trust Value of the BlockchainCardware Bootcamp – June 13, 2016By Alex Todd of Trust2Pay

Blockchain Bootcamp

• What is blockchain technology?

• How is blockchain technology being used?

• Is blockchain technology valuable for me?

What is blockchain technology?

Blockchain is infrastructure that allows individuals to trust consequential information without relying on trusted institutions!

Individuals

Institutions

Applications

Infrastructure(Internet and Blockchain)

Value

Trust is integral to every transaction and is the foundation for business success. It drives the volume, velocity and value of every business transaction, and accounts for 40-80% of a company’s market capitalization.

Valu

e

1. Blockchain technology enables a distributed database (or ledger).

Data Data & Logic (smart contracts)

Unilateral & Opaque

Collaborative & Transparent

2. Blockchain technology enables an immutable record of entitlement.

Source: http://sammantics.com/blog/2016/5/18/immutable-me-a-discussion-paper-exploring-data-provenance-to-enable-new-value-chains

3. Blockchain technology enables autonomous automation.

DAO

Source: http://sammantics.com/blog/2016/5/18/immutable-me-a-discussion-paper-exploring-data-provenance-to-enable-new-value-chains and https://www.pinterest.com/pin/439734351088583336/

Ethereum is a decentralized platform that runs smart contracts.

Ethereum Foundation

Ether valued at $1B, second to Bitcoin at $8B.

TheDAOLargest ever crowdfunding project raised $150M

Trust TheDAO?

The world’s first Decentralized Autonomous Organization based investment fund with 100% participatory governance – more than 20,000 token holders.

Source: http://www.ubergizmo.com/2010/08/couple-builds-a-robot-child-companion-called-aimec/

Where would value reside in a DAO-based eBay?

People(minimal trust in people)

Institutions

Applications

Infrastructure(Internet)

People(or legal persons)

Institution(minimal role)

Application(Smart Contracts)

Infrastructure(Internet & Blockchain)

Escrow

Feedback

ForumPro

duct

Authentic

ation

ID Ver

ifyPr

oduc

t O

pini

ons

& G

radi

ng

Prod

uct

App

rais

al

TR

UST

e Se

al

Reliability of feedback

Policies

Safe Harbour

InvestigationsDisallow

ed

Products

Dispute Resolution

Notice of IP

Infringement

Security

User

Agreem

ent

Frau

d

Insu

ranc

e

PayPal Buyer

Protection

Escrow

ID Verify

Product

Appraisa

l

Fraud Insurance

Product Authentication

PayPal Buyer Protection

Policies

Safe Harbour Investigations

Dispute

Resolution

Disallowed

ProductsNotice of IP

Infri

ngement

User Agreement

Relia

bilit

y of

feed

back

Today Tomorrow

Security

TRU

STe

Seal

Feedback Forum

Product Opinions

& G

rading

How is blockchain technology being used?

Absolute and conditional entitlement.

Source: http://www.slideshare.net/RedChip/btcs-201507

Blockchain ecosystem

Source: https://schobinger.files.wordpress.com/2015/12/firstpartner-blockchain-market-map_evaluation-v1-0-30-11-15.jpg

Is blockchain technology valuable for me?

Is my product or service suitable for blockchain technology?

Primary Considerations YES NO

Do third parties rely on the output?

Does the output convey an entitlement or attribute?

Could it run autonomously?

People

Organization

Application

Infrastructure

My Product / Service:

My Current Product / Service:

People

Organization

Application

Infrastructure

Competitor’s Future Product / Service:

Transparency

•Reporting of anomalies•Transaction tracking•Feedback forums•Escrow services•Performance Verification• Identity verification•Support responsiveness•Fulfillment metrics•Tracking status of

applications/proposals•Satisfaction with funding

process•Comparative economic

impacts•Privacy protection

experiences•Confirmations of

transactions•Access to person offline•etc.

Promises / Assertions

•Provision of adequate information

•User awareness program•Seals of approval•Known merchant seals•Security and Privacy seals•Brands•Security & Privacy policies

on web site•Presentation•Regional/cultural

perspectives•Service/performance

opinions and grading•Value appraisals•Quality of service rating•Fair, ethical and

responsible business principles assertions

•Published FAQ/Help•Available technical

support•Rating of site and services•Assurance rating•Disclosure of funding

sources•Supporting brands•Co-branding•Frequently Asked

Questions•Assertions of competence•Assertions of fairness•Associations and

affiliations•Reputation•etc.

Empowerment / Choice

•Reliable providers of feedback

•Referral to other sources•Evaluating recommenders•Links from other trusted

sites•Recommendations from

other sources• Introduction & matching

services•Voting•Opting out•etc.

Reliability

•Redress mechanisms•Rules for information

protection•Laws and/or regulations

that protect privacy•Governance structures

and practices•Recourse mechanisms•Business policies and

practices•Safe harbour

investigations•Disallowed conduct and

services•Dispute resolution• IP Infringement policy•Commitment•Organization’s integrity•Values of participants•Ethical standards•Enforceability of conduct•Regulations•Culture•Common social or legal

code•Community member

interdependence (continuity)

•Motivation to deliver value

• Individual ethics•Organizational charter• Incentives•etc.

Integrity

•Security controls•Current technology• IT scalability•Privacy controls•Dependable technology•Knowledgeable and

competent staff•Operational resources•Reliable processes• Information protection

functionality• Information validation

functionality•Secure infrastructure•Operational resiliency•Ability to deliver expected

value•Controls on use of

information•etc.

Risk Transference

•Contract formation•Liability protection•User agreement•Fraud protection

insurance•Satisfaction guarantee•Warranties• Insurance•Credit protection•Fiduciary responsibilities•Privacy guarantee•Confidentiality guarantee• Identity theft guarantee•Accountability• Inducements•etc.

Common trust enabling mechanisms

Is my product or service suitable for blockchain technology?

Primary Considerations YES NO

Do third parties rely on the output? Does the output convey an entitlement or attribute? Could it run autonomously?

People

Organization

Application

Infrastructure

• Identity verification• Co-branding• Dispute resolution• User agreement• Privacy guarantee

• Confirmations of transactions• Presentation• Links from other trusted sites• Security controls• Dependable technology

My Product / Service: Loyalty

My Trust Enabling Mechanisms

People

Organization

Application

Infrastructure

• Co-branding• Dispute resolution

• Confirmations of transactions• Presentation• Links from other trusted sites• User agreement• Privacy guarantee

• Identity verification• Security controls• Dependable technology

Competitor’s Trust Enabling Mechanisms

Blockchain suitability exercise results.

Primary Considerations YES NO

Do third parties rely on the output?

Does the output convey an entitlement or attribute?

Could it run autonomously?

People

Organization

Application

Infrastructure

My Product / Service:

My Current Product / Service:

People

Organization

Application

Infrastructure

Competitor’s Future Product / Service:

Thank you!Alex Todd – your blockchain strategist@Trust2PayAlex.Todd.Trust2Pay@gmail.comhttps://ca.linkedin.com/in/alextodd