Enterprise Ethereum Panel | Manufacturing, Traceability and Distributed ID

[Music] Thank you, Kawasaki-san. Okay, we've kept you waiting for quite a while, but we'd like to begin our first panel discussion, Manufacturing Traceability Decentralized ID. So, all the panelists, please come up to the stage. Please sit in the order you are on the panel. Okay, thank you.

Everyone, thank you. We have slides prepared, so each of you will briefly introduce yourselves and talk about the businesses you are working on. Okay, I'm ready to go from here. Okay, next please. Okay, I'll give a brief introduction to Yamashita-san.

Okay, everyone, please go ahead. I'm Yamashita from NTT Data. It 's 12 minutes. Okay, well, I'd like to talk mainly about blockchain. At NTT Data, we have established a global blockchain team and I'm working within that team.

At NTT Data, since around the mid-2010s, we've been working on how to use blockchain, especially in the enterprise. A representative project in Japan is TradeWaltz, which is called a trade platform and is currently under development and launch. We also have an overseas base in Italy. On the one hand, we are currently running a project called Spoonta, which involves participation in financial platforms. Also, recently, we have been working on Web3 projects, including NFTs, and we are still trying to figure out how to apply them to enterprises.

So, we are participating in and working on such projects. Furthermore, as NTT Data, as written below, we have named and are working on a solution called BlockTres. In particular, we are working on how to apply blockchain to important elements in supply chains and corporate activities. I'm wearing shorts today, but it's nice to meet you. My name is Takahashi from Hitachi, Ltd.

I am here today from Hitachi's research institute. From our research institute's perspective, we are mainly researching security and trust, and as part of that, we are exploring how to effectively utilize blockchain to realize decentralized identity, as discussed today, or how to rebuild the financial system in a more efficient and reliable way, or from the perspective of the manufacturing industry, how to improve the supply chain. 。 。 English: Today, I'm working on rebuilding it in a trustworthy way. I'm particularly working on research that focuses on how to utilize biometric authentication and cryptographic technologies to enhance the trust, security, and convenience of blockchain. I'd like to touch on that a little as I move on to the slides, and hopefully we can have a discussion today based on what we've just talked about.

Yes, yes, yes, yes, yes. I'm working on how to create a Web3 world with layers such as identity drafting, key management, and how to make wallets possible without relying on smartphones, or even hands-free. Yes, it's a short time today, but thank you very much. Thank you. Yes, next, Mr.

Sakamoto please. Yes, I'm Sakamoto today. Nice to meet you. I'm currently a researcher at the Data & Security Institute, and from April, I've been working on the trustedWeb3 Core Project, which is specifically about Web3. My research so far has focused on distribution networks, specifically distributed network security.

However, while we have researched home networks, content delivery methods over networks, and mobile IoT, since 2008 we have focused on blockchain-related areas, particularly decentralized identity research. Currently, as an application of this, we are working on a new concept called Trustable Internet. I believe there was a photo earlier; that was taken at the Double 3C general meeting, where I introduced the concept briefly using tea bags. Next, please. And speaking of research that was recently cancelled, one project was conducted in collaboration with Keio University.

Keio issues student registration certificates using decentralized electronic equipment, which runs on Microsoft's ION system. We converted these into a decentralized identity system created by Fujitsu, which runs on the idyx Hyperledger Indy system. The goal was to create an integrated connectivity system that would allow users to link multiple IDs to various services. Taking that a step further, we have been working on this project from last year to this year. We are researching whether it is possible to make data on the internet trustworthy using identity.

So, that's where we're currently conducting research. Well, as a blockchain-related technology, we're working on applications, but that's the main area we'd like to discuss. Thank you very much. Yes, now the interpreter will come in, but it's a rather complicated discussion, so please be understanding. So, first, Mr.

Yamaguchi from NTT Data, I believe you're working on improving the efficiency of trade and manufacturing through things like Tradewaltz, but recently, with all the talk about Web3, have you noticed any changes in demand or customer expectations? In terms of the situation, well, until now, when we talked about blockchain, the focus was mainly on the new technology, and there were a lot of discussions that centered on the technology, and we often interacted with people from companies that were particularly focused on facts. However, now that the keyword Web3 has emerged, we've been having more and more conversations with people who are thinking about business ventures, and there's a sense of expectation that we haven't seen before. I think there are [music] However, that is only the first step, so keep developing it month by month. Not everything in the world is like that, and I recognize that this is really just the beginning.

That's right. In Japan, for example, in trade and manufacturing, people are generally very serious and have a strong desire for efficiency, so expectations are rising and so, I guess, there is an increasing trend towards concrete adoption. It is increasing, but it is still only among people called business leaders, and it is only slowly penetrating, and it is not yet in the phase where it has penetrated a large number of people. Yes, thank you. And again, for example, Hitachi is working on identity verification, in the form of authentication that does not rely on passwords, such as biometric authentication.

And recently, there have been stories about so-called generation AI being able to crack passwords in a minute, so there is an image that expectations are rising, but what are the current customer expectations and the market like? That's right, I'm Apple Thank you. Regarding Web3 and blockchain, I think the challenges are much bigger and broader than the concept of user authentication in conventional systems. I think there are three main aspects to consider. First, there's key management.

Second, there's identity verification. Third, there's the convenience of the wallet. First, regarding key management, in the Web3 world, a user is essentially a public key, and the account itself is a public key. So, the moment you lose that key, you lose your identity, your assets, and the basis for all your activities in the digital world. When I talk to customers, I get the impression that many of them are really worried about this issue and don't know what to do.

Second, identity verification, of course, is due to increasingly strict regulations from the Financial Services Agency and so on. And finally, convenience, the big problem is how to properly verify identity, while also being convenient and protecting privacy. As for the third, wallets, it goes without saying that they are difficult to set up, and explaining them at night is also difficult, and the passphrase... There are also management issues. To begin with, unless you are someone who can use a smartphone very effectively, you can't enter the Web3 world.

I think this inclusion is a big problem. I myself am currently working to solve this problem, and there is a technology called TVI, which is a fusion of biometric authentication and cryptography. It is a public infrastructure technology, and we are currently working on solving this problem by using this to manage keys based on biometric information, as long as the private key is not stored anywhere. PBR public inflash. Thank you.

Yes, thank you. In particular, the convenience aspect is quite a big issue, isn't it? Yes, it is a very big challenge that I have been talking about. After all, players are on the path to avoid viruses. Hitachi has something like ID, which is centered on personal authentication.

Fujitsu has something like connecting multiple IDs with a conversion gateway, and I think it has recently been implemented at a university. What are the expectations at the university, or what is the current demand? Speaking of decentralized identity, it is slowly but surely entering the world. I have the impression that it's becoming more widespread. In that sense, there's talk of universities using it as well, so, well, not just the demonstration experiment we did with Keio University, but also the tracedWeb demonstration project, where we're doing similar things with other universities, and I think there's a lot of excitement surrounding it.

That's right. Trusted Night, the initiative is on the web, right? What do you think is the biggest reason for the excitement? In short, rather than each individual managing it, I guess universities feel that decentralization is better and that there are benefits to it. After all, identity is basically about managing your own identity, and it's not so much that it's being accepted, but rather that the idea of ​​D-centralization is spreading throughout the world.

For example, in the EU, there are changes in regulations such as the mandatory use of identity wallets, and the Japanese government is also concerned about that and there have been discussions in promotion councils and so on, and there have been criticisms, so there are requests from the government side rather than from the companies side. I feel that this is becoming increasingly important [music] Perhaps the risks of managing IDs independently are increasing, and so is the amount of personal information. At that time, people are probably wondering what will happen if it is leaked due to their own management, and there seems to be a trend towards decentralized, highly secure systems. I think that's exactly why Sakai-san is expecting SSI and did, and the risks of companies managing personal information themselves are getting heavier every year. However, on the other hand, the challenge is that there is a gap between the two situations, and it's not easy to jump straight to the point where individuals can control their own data under their own self-sovereignty.

The big trend is to shift towards decentralized or self-sovereign systems, and to get there... Well, I think there are two factors driving this. As Mr. Sakamoto just mentioned, one is regulations. Mr.

Sakamoto mentioned today, is the webration. The other is somehow rebuilding the new business model. This is where everyone is struggling right now. With a new identity management system, frictionless, smooth movement of IDs will occur, and if we can break through the question of how to implement a monetization mechanism as an ecosystem, I think it will be a big driving force. Yes, thank you.

That's exactly it. As Mr. Takahashi said, the burden and risks of managing data, especially personal information, are increasing for companies and organizations, and there's been talk about what to do about it. And this is exactly the kind of risk that Mr. Kawasaki is working on in Setagaya Ward and other areas, so there is a tendency to be very conservative.

Mr. Sakamoto, Mr. Takahashi, that's right. Yes, thank you. You're absolutely right, but in Setagaya Ward...

What I feel from actually working in DX is that the discussions at the local government level are still at a much earlier stage than discussions about Web 3 and such, such as abolishing faxes, going paperless, or, you might be surprised to hear this, but PCs are not actually connected to the internet right now, and you have to log out and switch to VDI to connect, and that is because of the Ministry of Internal Affairs and Communications guidelines, and it was not possible to do that until now, but it is being changed now, but that is the level at which it is, so frankly speaking, the local government level has not yet reached the level of key management and things like that, that is the first thing. In my main job as a lawyer, I talk to many corporate clients, and as you said, the risks of holding personal information and things like that are working as a very strong demand, and I think the pain of wanting to solve these problems is at a very high level. I would like to ask you one question as well. However, the two points that Mr. Takahashi mentioned earlier are that one is that stricter regulations will be key to future widespread adoption, and the other is that a new business model will be clearly defined.

I really agree with that. And the probability of success in this business model is something that many people struggle with, and it's something I myself find very perplexing. But today, Mr. Data was the first to talk about concrete use cases, and he mentioned that he has already implemented some of them overseas and in Japan, and that he has customers, so I would like to ask him about that in relation to what we just discussed. The cases differ from country to country, so they are not all the same, but in the case of Italy, he said that if they don't do it now, they won't be able to measure efficiency and business costs will just keep piling up.

In the case of Japan, he said that the business model is basically just a hypothesis, and they are pushing forward with it, but of course they keep iterating and trying to find the ideal form. は、 。 English: Since various IDs are used within the company, even if someone asks us to post our company ID, that's the current situation. Yes, on the other hand, we think it would be good if we could make identities more useful, so we are researching that, and I think that will be an important point. What I mean is, for example, in order to draft data that flows on the internet, we attach an article identity to that data and then publish it. This way, we can attach an identity to the data, for example, news articles, and so on, as if to say, "This news article is correct," as if to endorse the data.

We are creating a system to attach identities to various kinds of data and distribute data on the internet in this way, and I think that could be one application that really makes use of identities. We are currently conducting research on this. In particular, it's bad, because fake data is increasing exponentially right now. Fake news is usually published by dubious people, so if it says that this article was written by a university professor, then it's somewhat trustworthy, right? Yes, so if an identity is attached, the credibility of the data is, yes, that's right.

I think there are a lot of haiku, but let's see, the first one is, for example, NFTs, well, right now there are a lot of fakes and unlicensed minted ones circulating, and it feels like the excitement from last year has subsided a bit, but there's a renewed discussion about architectures to build trust in them, and JCBI is being directly incorporated into that, and I think this trend is developing and I'm expecting it to become a big movement towards a major period of widespread adoption in the future, and we ourselves are working on various things from a technological standpoint, and we are trying to work on technology plus, how should I put it, how to revitalize the fan community, and for example, as I mentioned earlier, PBI is a technology that creates keys that manage keys based on biometric information, but if we apply this a bit, for example, In baseball, for example, a top player in the league, like Shohei Ohtani, would sign a baseball, and that would become a premium item. But I wondered, ca n't we do something similar in the world of NFTs? Can't we digitally prove that the person who signed it actually did it? For example, Ohtani could place his finger on something, or hold his face up, and a key would be created based on that biometric information to create an electronic signature, which could then be minted. This way, everyone could publicly self-verify that the person who signed it did indeed sign it.

NTT is working on this to create a sense of premiumity and, well, to revitalize the market and the fan community. In fact, Hitachi had a booth at South by Southbest in the US the other day and exhibited something like this, and the response was quite good. We are thinking about creating a new market from there. [Music] On the backend side... When companies exchange information, I think it's important to establish and spread a system that protects that information, like a secret sauce, so that it's not disclosed to others.

Privacy control. And one more thing, on the front end, there's a wallet that companies can use. Right now, there are NFTs and wallets that individuals use, but a wallet that companies can use. We just need to get rid of the word wallet. I think that's something that will really come in the next six months or so.

Well, it's time, so I'll end here. Thank you very much. You can also attend the networking event, so please talk then. Yes. EVE you have any questions.

Awe have the after. Thank you very much. Let's give a round of applause.