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2019.03.12 Blockchain in Government. IESE Barcelona

  1. Blockchain in Governments: from hype to reality IESE Barcelona, 12th March 2019 Miquel Estapé
  2. Agenda 1. WhyBlockchain in Government 2. What is the current situation 3. What are the limitationsof Blockchain 4. A use case: Self Sovereign Identity
  3. Why
  4. Since ancient times Government has acted as an Intermediary Sumerian (Iraq). Oldest writing. Account of silver for the governor. 2500 BC Lydia (Turkey). First coin. 600 BC
  5. Blockchain is a disruptive technology Builds trustworthy transactions between parties without intermediaries It may disrupt Governments
  6. Situation
  7. Currently there very few blockchain services live in Government and all of them are at early stages
  8. Gartner Hype Cycle for Digital Government, 2018 “Gartner expects it will be at least five years until the technology matures and begins to deliver benefits, but it will lead to radical transformation of some government functions and services”
  9. Blockchain: Latest advice for government agencies 12 February 2019 • Research how blockchain is being used in public & private sectors. • Findings consistent with NIST (USA), OCDE & Gartner recommendations • Blockchain is still an emerging technology and, when considered against alternative technologies, gaps become evident • Recommend focus on addressing the needs of users • This should not stop agencies searching for innovative solutions https://www.dta.gov.au/news/blockchain-latest-advice-government-agencies
  10. Limitations
  11. What are the Blockchain limitations? ”You are stronger when you know your weaknesses” Anonymous • Not record of information (logs) • Not cheap • Not fast • Anonymity & no confidentiality • Not easy to scale • Nobody is liable However, Blockchain may be a major breakthrough !
  12. Blockchain is not a mature technology (yet) Governments have the responsibility to: • learn, experiment and evaluate disruptive tech • promote prototypes and pilots of innovative public services
  13. Two radically different approaches Jim Collins “Good to Great” About successful long- term companies “they do not adopt a new technology just because it is the latest trend or state of the art: if it does align with your mission and strategy, then you need to take it by the horns and become a pioneer in it. But, if it isn’t, then you should ignore it.” 1st Approach • Blockchain can be used in almost any use case • Criteria: most significant media impact • Learn about how to use the blockchain tech, not about its added public value • Risk to create problems where we already have good solutions 2nd Approach • Identify challenges not solved so far with existing technologies • Analyze if blockchain can help us out • It is a disruptive tech. Let’s use it in disruptive business cases • Understand the challenges and the restrictions of the blockchain
  14. An example of the 1st approach What is the added value of this use case? Is this solution better than a centralized register?
  15. Identity
  16. +70 accounts per user
  17. Challenges about the Digital Identity • Inefficient and Insecure – Fragmented. Time-consuming. Annoying. Not safe • Lack of a Digital Identity is a barrier – 80% Internet users vs 35% e-transactions (Gov) • Synergies between public & private sector – Transactions: 3xYear (Gov) vs 10xDay (Private) – eID success cases: private + public sector • A global world, a global identity – One Digital identity for all over the world • Savings – 18€ per online transaction – User/password management is very costly
  18. What is “identity”? 49 Engineer PDD in IESE Works in AOC Lives in la Roca Health records Friends +3000 Linkedin contacts +1.500 twitter contacts Public Management Society Lawer Notary Bank Insurance
  19. SSI Principles • Self-managed identity – Gov does not ”own” the eID – No central authority controls it • Consent Driven – Control of personal data: privacy – Verifiable claims • Portable • Open by Default • International Standards • Secure & Trustworthy
  20. Disclaimer: The views, thoughts, and opinions expressed in this presentation belong solely to the author, and not necessarily to the author’s employer, organization, committee or other group or individual. Blockchain in Governments: from hype to reality IESE Barcelona, 12th March 2019 Miquel Estapé
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