Presentation at My Data Conference 2016 - MyData2016 - Personal Data and Blockchain session

1. Personal data and blockchain:
Opportunities and Challenges
MyData 2016 Conference
Day 1, August 31st, Helsinki
Session: Blockchain and Personal Data
Michele Nati
Lead Technologist Personal Data and Trust
Digital Catapult, London
@michelenati

2. Personal Data: Opportunities
• Overall financial
benefit
• £15bn
untapped
wealth
for
UK
consumers
• The incentive to share
• 30%
of
consumers
believe
“to
improve
services
and
benefit”
is
the
most
important
incen5ve
for
sharing
personal
data
• How to incentivize
• 43%
said
the
main
incen=ve
for
sharing
personal
data
is
if
it
was
going
to
be
used
to
improve
society
Personal
Data
and
Trust
Review:
h<ps://www.digitalcatapultcentre.org.uk/pdtreview/

3. Personal Data: Barriers
• Trust
• 44%
of
consumers
trust
the
public
sector
most
with
their
personal
data
• 2%
choose
telecoms
as
the
most
trusted
sector
• 30%
feel
the
retail
sector
is
not
clear
on
how
use
their
personal
data
• Consent
• 65%
of
consumers
are
insure
if
data
is
shared
without
their
consent
• Loosing control
• 76%
of
consumers
feel
they
have
no
control
over
how
their
data
is
shared
or
who
with
Personal
Data
and
Trust
Review:
h<ps://www.digitalcatapultcentre.org.uk/pdtreview/

4. Personal Data Ecosystem
• How data can be linked
together?
• How access can be granted
and controlled?
• How all involved parties can
trust each others?
• How the right incentives
can be created?

5. Blockchain in 2015
h<p://www.gartner.com/technology/research/methodologies/hype-­‐cycle.jsp

6. Blockchain in 2016
h<p://www.gartner.com/technology/research/methodologies/hype-­‐cycle.jsp

7. Blockchain Ecosystem
• Blockchain: business case vs trust case
• Bitcoin: (and alt-coins) interoperable
incentives within the ecosystem
• Smart Contracts: consent management
• Decentralized and Autonomous
Organizations (DAOs): data sharing for
social benefits and causes

8. Do you need blockchain?
1. Consensus – is the use case benefiting from
agreement across all the parties that each
transaction is validated without 3rd party?
2. Provenance – is the maintenance of a
complete audit trail important for the use
case?
3. Immutability – is it important that the trail of
transactions cannot be altered?
4. Liquid trust – is there a need for an agreed
“system of record” trusted by the all network?

9. Blockchain and identity
• Role in the Personal Data ecosystem
• Link
all
the
data
to
one
individual
• Be<er
and
personalized
services
–
combining
different
a<ributes
• Identities should be
• Sovereign
• Unique
and
interoperable
• Verified
• Mul5ple
and
context-­‐based
(mul5ple
personas)
• Blockchain role
• (Decentralized)
User-­‐managed
• Consensus
–
new
forms
of
iden5ty
(for
unbanked)
• Notary
func5on
-­‐
Integrity
• Audit
trail
–
non-­‐repudiable
• Confiden5ality?
(requires
some
thoughts)
(Attributes) Verification might still require 3rd party

10. BC and PD ecosystem:
An example

11. Blockchain and Personal Data:
An example
Benefits distribution and tracking
• Assign coins with clause on how they are
spent (alt-coin)
• Require to verify identities
Possible Risks (to address):
• (might) Leak privacy on people identity (e.g.
zero-knowledge proof required)
• Pseudonyms could be de-anonymized
• Deal with malicious behavior (in ethical way;
this might require third party authorities)
h<p://www.bbc.co.uk/news/technology-­‐36785872

12. Blockchain evolution
h<ps://www.digitale-­‐exzellenz.de/die-­‐blockchain-­‐evolu5on/
2009
BitCoin
blockchain
implementa5on
-­‐ Criminal
ac5vity
-­‐ 2016:
AML
EU
regula5on
h<p://ec.europa.eu/jus5ce/criminal/document/files/aml-­‐direc5ve_en.pdf

13. Blockchain evolution
h<ps://www.digitale-­‐exzellenz.de/die-­‐blockchain-­‐evolu5on/
2013
Ethereum
Smart
Contracts
presented
-­‐ Security
and
scalability
concerns
-­‐ July
2015
launch
aber
crowdsale
campaign

14. Blockchain evolution
h<ps://www.digitale-­‐exzellenz.de/die-­‐blockchain-­‐evolu5on/
2016
May
daohub.org
launch
-­‐ DAO
hacked
-­‐ June
2016
hard
fork

15. Blockchain evolution
h<ps://www.digitale-­‐exzellenz.de/die-­‐blockchain-­‐evolu5on/
?
ML/AI
will
run
organiza5ons
-­‐ What
kind
of
control
we
need?
-­‐ How
we
guarantee
ethical
decision?

16. Blockchain evolution
h<ps://www.digitale-­‐exzellenz.de/die-­‐blockchain-­‐evolu5on/

17. Blockchain evolution
h<ps://www.digitale-­‐exzellenz.de/die-­‐blockchain-­‐evolu5on/

18. Governance in decentralized
systems
• Everybody can use blockchain, run smart
contracts, participate to DAOs
• But who takes decisions?
• Currently
developers
and
miners
• SW
licenses
generally
disclaim
all
liabili5es
• Who should be accountable for malicious
behavior?
• Not
yet
well-­‐defined
• Shall
core
developers
and
miners
be
considered
as
fiduciaries?
(duty
of
care,
loyalty
and
good
faith)
• What governance structure will be
required?

19. THANK YOU!
#DigiCatapult
info@digicatapult.org.uk
0300 1233 101
Digital Catapult
digicatapult.org.uk
/DigitalCatapult
@DigitalCatapult