Ethereum for Enterprise - Victor Wong

[Music] so we've already discussed some of the topics that I'm going to cover off from my presentation on a theorem for enterprise but I'll give you a little bit more detail on what block Apps is doing and what we're trying to do and why we're pushing into a theorem and enterprise so hard so one thing you should understand about block Apps is we are the leading enterprise platform built on the theorem we have over a thousand projects that been built on our status and over 130 companies that are already working as our customers in addition we built the Haskell implementation of a theorem but really what we're trying to do is make sure that a theorem stays relevant in the entire ecosystem of enterprise blockchain development to that end we're working with key partners like our partner consensus Deloitte we launched boxing as a service a year ago with Microsoft and if you notice on the slide here there are some interesting Chinese clouds that I won't announce today but if you stay tuned we have some very exciting developments happening on Friday so what is going on with the market right now in terms of enterprise blockchain development as I mentioned in the panel what we're seeing is that there's a very clear development that systems are actually moving into production people are finding real business use cases that make economic sense for those businesses to develop here you see a quote from Tim grant of our three labs it says the banks that are belonging to the r3 consortium are not really interested in pocs anymore they want to talk about pilot production systems things that will help their businesses and if anything I think block chains have proven that economic incentives work when it comes to adoption so what are the kind of business use cases that these companies exploring so on a general level we can really group them into two areas one is about simplifying existing business processes so many people say inside an organization why would you need a blockchain doesn't everyone trust each other and the answer is no like different Department different branches different even like regional offices don't fully trust each other they all run their own databases they all use different methods to coordinate between the different parties so this is where we start we work inside an organization to help them improve coordination between these different parties but this is only the beginning where they want to get to is to build new applications and new businesses that are simply not possible without blockchains so for example you know you may start with wanting to improve coordination between your different branches inside a bank but where you really want to get to is something that looks more like a consortium where you're onboarding all your partners thousands of partners onto an entirely new platform and they can talk directly peer-to-peer with each other so you may have heard that financial industry is very very keen on adopting blockchain you know a recent report by Goldman says that blockchain technology can save finance industries 50 billion dollars if they implement and the big question that I get from a lot of people is how does this happen why are these savings possible well there are three key reasons why they're possible one is legacy infrastructure if you go inside almost any bank today you'll find systems that are running on mainframes that are 20 or 30 years old and these systems are reaching end-of-life and they're getting more and more expensive to maintain so whether or not they're moving to a blockchain they really have to update these systems and one of the things that we see is that they're really wanting to move to a leap frogging next-generation system like a blockchain the second thing is that the entire security and compliance space is moving very rapidly and these old systems are very difficult to move to this so with block chains the benefit is and adaptability especially with smart contract enable dot Jane's like a theorem are kind of built in from the start and then lastly these current systems are based on batch processing so you know they don't update in real time you know the best systems update once a day some systems update over week now this poses a huge risk to financial institutions one of the things that the financial crisis showed the most financed industries is not that do you have BOM sitting on your balance sheets that you don't know about it's where these bombs are so within the blockchain landscape you guys know about lots of experiments so if you just look at the enterprise space you know let's start in the middle where you have two so Bitcoin derive things these are things like what digital acid is doing or chain and the challenge that they are facing is that they're building on top of a protocol that was only designed for one thing cryptocurrency so they have to build their own application stacks and as we mentioned before these application stocks are not interoperable with each other then you have a lot of experiments going on that they're trying to solve specific problems and specific verticals like our three corner big chain errors and you know the challenge of these guys are facing is that it's hard to get wide scale adoption on these specific verticals lastly you have a theorem so as we know a theorem is designed from the start to be a general application protocol it's not meant to be used in enterprises but because of this generality it can be adopted to many of the use cases that enterprises really want to pursue and there are thousands of developers like yourselves are we building up this ecosystem so it's giving enterprises a lot of confidence that they can build on this and that in the future there will be developers like yourselves to support it and because of these things a theorem is actually winning in the enterprise space now you don't have to take my word for it I'm obviously in that theorem fanboy but you can read reports by Accenture Forester Gardner ey Microsoft support and all of these groups are telling enterprises that if you want to experiment with blockchain a theorem is the way to go but my favorite quote is the one from a recent extension report that just says every self-respecting lab is running a theorem now one of the benefits of a theorem is it gives these enterprises the ability to model and prototype business use cases very very fast so let's take an example of combining our blockchain as a service with the theorem Fido Bank signed a relationship about 11 months ago with Ripple and they were trying to build a proof of concept on that system they spent months trying to do this and out of frustration their team started to look around for other solutions they found our solution on Microsoft's the blockchain as a service they were able to spin it up and within a week they were able to build a prototype of a customer banking solution complete with kyc and a my Amell checks all by themselves and the first time we heard about it is when there was a press release on corn desk announcing that this had been built on our system so that's the power of ethereal you know you can model incredibly complex business processes in a few lines of code and the other benefit is that as Roman mentioned because the public chain is out there and being you know lots of experiments are going on soon this will be basically tested more than any core banking system out there today now what are the challenges with the public chain and why are we so interested in building these Enterprise block chains now one of the things that we see today is there are thousands of enterprise there are thousands of a theorem developers and blockchain developers and within a year that's amazing but we want that number to be millions of different and so how do we achieve that one thing is we have to make it easier for normal enterprise developers to on board to blockchain applications and we've done that by building simplified tools SDKs that allow these developers to start building applications our first one we announced last year was blocked that is built-in nodejs and makes writing a blockchain application more like writing a web app recently we announced a visual studio integration now nine million visual studio developers can also start building blockchain applications and today I can announce a xamarin SDK integration which allows cross-platform development of blockchain applications on mobile so you can write once a blockchain application and deploy it on an iOS device or an Android device seamlessly thank you but there's more than this honestly speaking most enterprises and most developers don't care about what consensus algorithm you're running they don't care about whether you know you're running the EVM or something else what they care about is I won't be able to run write an application once and deploy it on a private chain or consortium chain or a public chain and I want this to be seamless and that's what we've done it block apps so we've completely separated the application layer from these underlying core layers on the ethereum blockchain and the private chains were generated so an enterprise can come along and say you know we don't want to use the standard mining algorithm we want to use something more traditional like raft or PFD we or we want to use some external algorithm like tender mint and they can all do this without having to rewrite those applications that they've already created and deploy it seamlessly in addition they can deploy it on virtually any cloud they want or on-premises so World War II working with cloud providers like Microsoft but we've extended it to Red Hat and cloud foundry and very shortly you'll hear about some new clouds that we're adding and we're very excited about it now one of the key challenges that we faced is that unlike the public chain enterprises don't want all the information to be public so let me give you a very common use case I want to do a supply chain I have different parts suppliers one part supplier I pay 10 cents apart another part supplier I paid 20 cents apart I don't want these guys to be able to see these variants and pricing so what we've done is we've created what we call multi chain fabric built on aetherium what this allows is that each individual partner can sit on a porch a they can have all their smart contracts they get all the audibility between these two peers and these interactions are summarized on a master tray now what this allows is that I have complete trust between my partners and I have complete visibility in real time to all these transactions but the individual partners can't see the details of all my contracts and this applies whether it's a financial transaction whether it's a supply chain transaction or any other type of industry now as we mentioned before this also allows interoperability one thing is as we build up these multi chains where we have multiple block chains it's a simple matter over time to expose it to a consortium chain or the public now the second thing about entering into the larger enterprise ecosystem is you can't do this alone enterprises aren't going to come to our startup like block apps or even companies like consensus just by themselves they're used to dealing with massive amounts of vendors who have long experience dealing with their business use cases and they're used to dealing with system integrators and business processes outside those to maintain these systems over time and they want to deploy these where they want so that is why block Apps is working with companies like consensus like Deloitte like Eli who I understand these different business processes and can help them guide their process on to mapping their business on to blockchains secondly is we are working with system integrators and BPOs company and it's like we Pro and cognizant so when these companies want to maintain these botching applications over time they can work with system integrators that they're already working with and then lastly is we are deploying these on multiple clouds so Microsoft was only the beginning soon you're gonna be able to deploy a block up straddle node on any cloud out there whether it's Chinese base whether it's Western based pretty much every cloud provider will be able to provide and you'll be able to connect to your network seamlessly [Applause] so what do we have to do to bring a theorem to enterprises we really have to do three things one is we have to build an enterprise architecture designed for enterprises and what this means is we have to expand the idea of what a theorem is we can't say look everything is going to happen on the blockchain we have to be able to have connectors into existing databases we have to be able to open our tools up to these millions of developers or going to build these applications and we have to onboard lots of systems that already exist and let them modify things or act as Oracle's onto these blockchain applications secondly we have to basically provide business models like blocking as a service which reduce barriers to entry as my colleague Andrew keys from consensus mentioned this we need to provide a lot of modular tools that help these enterprises spin up things very very quickly and go from one or two nodes to thousands of nodes seamlessly without having to you know hire a bunch of consultants or work with us in order to kind of grow their applications and lastly we need to work with partners who are already helping in the enterprise oh gee space these this started with Microsoft but doesn't end there it has to go to companies that these companies are working with like Deloitte like ey and there will be new room for new players in this space so I ask all of you today to help me build this enterprise etherion ecosystem together as black ops thank you very much so as black ops we want to take our leading position to provide infrastructure but leverage all of your knowledge about building applications to help service all of these enterprises already we're working with companies and finance insurance healthcare iot supply chain but we think that blockchain technology and especially aetherium blockchain technology can transform virtually any business that it touches and we can't do this alone so please contact me this is my WeChat ID and I look forward to building the enterprise ethereum blockchain ecosystem with you thank you very much thanks Victor thank you [Music] nothing