The Current State of Enterprise Blockchain in 2020 & Beyond | LA Blockchain Summit

I think we're on how everyone thanks for joining us for the panel on the state of Enterprise blockchain. I am not going to introduce the panel members. They are going to be some self along with a response to the first question cuz we have so much to talk about. So we are going to talk about what defy has to do. With Enterprise adoption of black Jane, are they running in parallel? Are there, is there a chicken-and-egg scenario? What are we seeing in the sector? And I guess I should all start with Dan. Text Hailey. I

appreciate it on the great topic and I'm feeling lucky to be on such a great panel with everybody else the CEO of security or a black fan base Financial of Justice company. Specialized in tools overlay or embedded in the LTE networks to enable automated compliance among other things. And effectively our strategy is what what red hat has done for Lennox. In terms of making it Enterprise adoptable. We do the same thing. Four block Pain, Solutions in the space will bear me out here. I'm we're actually

super excited about the defy movement and we see these things moving in, parallel, the key pieces, what, what defines bringing some of the back office functions that are traditionally held within banks are now being exposed, and they're very powerful tools that the banks make a lot of money off of what causes friction in the traditional, I bringing them out and E5 in the defy world and lower costs associated with financial transactions. The one thing we'd say is missing from the device. Space is a real sense for compliance. I'm so we call it institution be fine. It's

really layering over top of defy tools for Lending for for unlimited Mark, making the apology components in the necessary to make sure that these tools for being compliant and safe. Yeah. It was, for example, that we use would really pioneered picdeer devsecops, with smart contracts. And so it allows you to really smart contracts to do defy components without having a big monolithic, modify instruments. So these two things running in parallel and we're excited about the growth in those

spaces. Great salt. I'm the Chief Architect for the Oracle blockchain platform. It's a man has watching as a service offering that's on Roc ijen to cloud and us while we have an offering this for on-premise customers. So where were based upon hyperledger Fabric and so we come at this from a nest of the Consortium model and Enterprise applications. And the ones that were seeing largely don't have a lot of defy interaction at the moment. I'm not sure why that is. But I can tell you the, what we're seeing large is a huge interest in

things like Logistics, which is a traditional watching application. But we also seen it a number of other spaces and those spaces are growing, but we're not seeing a lot of financial space, maybe that's cuz we're fabric base or not seeing some of the kind of defy opportunities, but as a safe for the our customer base, they've been suicide. Move ahead with our platform because we make it extremely easy for customers to develop and deploy their they're watching applications.

We can't hear you do audio. Try that again. Thanks for letting me know. I got a new crypto in pretty strange way. I was at the Securities and Exchange Commission as an engineer and a working group and joined up as Bishop. Last 28 Morgan ended up on down there watching Center for excellence, built their first watch in called, you know, which was eventually open source in presenting hyperledger for adoption and my coat out of there. We left after 5 years. And now Angelina is a blanching platform that is designed for

both Enterprise and public Bocce news. It is about democratizing all of the features that we knew we would need to see and bring that to a public network that also has things. Like, if you can listen to started a state, a public together, Everything that the public sector does crypto legitimizes, the entire sector of The Regulators come down eventually, which I kind of think they're going to do with a lot of the fuel tokens ever seeing right now. None the less that shows interest and shows new Concepts and does help with the conversation. When you go in for

Enterprise adoption, I am person big believer. That the public side of watching is crucial and you need to get traction there and push that for Enterprise to exist. I think Enterprise should exist. Until we have really good used. So is it a notion of this needs to be functional and introduction to really Aid in that? I'm second kick that we're going to need to get Enterprise Stone and getting onto Washington. Awesome Jordans. Everyone. So I'm happy to be here live from my guest bedroom at home. I also like we all came to crypto a really roundabout way. I was

running a VPN company. A virtual private network over in Budapest Hungary called, Bufford VPN. And the timing was interesting with 2013 and all of our customer said, hey we don't want to pay for this with a Visa, Mastercard, we want to use something called a point and we were one of the earlier web applications back in 2013, to start taking decline in our checkout, flow partnered with bitpay of course and and and that kind of led me down the rabbit hole when we were acquired in 2017. I got another space full time at hedera hashgraph where I lead up Business Development today, we've built a

deployed enterprise-grade public network. What that means is, we saw her performance and security with the strap algorithm And we married that with a governance model where we're governed by some multibillion-dollar multinational companies like Google IBM, Boeing Bush Telecom Tata on and in all of that. So we brought some really cool Enterprises to the space in the Attic. The questions, really interesting one. What is the intersection of defy and an Enterprise? And the way I think about it is software was always going to eat the world. If we all agree on that hypothesis, what we're

seeing with crypto currency is software, is is eating money and I think that defy we can kind of summarize. As you know, the software is is clearly disrupting Financial Services. We got the ability to program things like escrow contracts or things like dividend agreements and we've got this program ability Within These tokens. I actually see this as cryptocurrency, we can't beat around the bush. Mean in the word, currency currency is money and we're seeing whether we like it or not Defy is a really cool use for that money and I think that's good for the cryptocurrency space. In

general, the more utility this money has the more People, that will hold it. The more people that hold it, the more users we get on that Network. And the more Enterprises will, it will attract the space. I'll give you a practical example. If, you know, if, if there were a hundred million PayPal users that held $0 balances in their PayPal account to PayPal, never would have become a de-facto payment method online, but Defy is because it's an interesting use of currency is attracting a lot of users holding value and it is going to make it interesting for Enterprises to start to build

applications to capture some of that value, that is being held by those users. So I think that's where we're going with it. Thank you. Hello. My name is Jules Hilliard on the CEO secure. Blocktech rebuild the first-of-its-kind Enterprise. Greg bought or blocks. You in operation Center, a single-pane-of-glass. If you will to develop the Floyd and manage all of your block games and apps for one centralized Management console monitoring analytics, security and optimization or the core of our technology stack, we consider ourselves the Third Leg of the stool. You

think Network infrastructure? Think knock sock box. The adoption question is one that we've been trying to solve from the beginning, like to take a little twist on this and talk about the adoption of new technology by the Enterprise as they faced similar hurdles and watching is no exception, as most of you already know, defy as only one of the many Industries for blockchain. And I believe that's what gets everyone excited for the new career technologist. However, we have seen many great Technologies of game-changing functionality come and go. So what are the key factors that decide which

new technologies such as blockchain get adopted in which technology? Don't a few of them to me. I have to be the man for the consumer Marketplace and I think we're all seeing that I use cases in a does the technology solve, the problem does the incurring the cost of integration benefit, the company called Sports Roi and tools. And I think that's where a lot of us. Come in here, have the needed development of management tools been created to successfully on board and operate the new technology cuz no matter how good the truck is, if you can't drive it, you're not going to use it. I think

it's good news though, for blockchain. It appears that the consumer demand for Defy is growing, which will stimulate the need for businesses to adopt. In addition, we're seeing all the green lights for blockchain technology, to play a significant role in the future development of network and application architecture across the Spectrum. We believe it's not all or nothing after all. Like most technology adoptions they will be a convergence. Thank you. I forgot to introduce myself. I'm Haley and I'll be with consensus work on Business Development, mainly in

finance thanking payments. But I do spend a lot of time with public sector globally, US, government and other governments and doing a lot of work on Central Bank, digital currencies these days, there is no. So, I spend most of my time on the Enterprise side but have started to spend some more time with the defy side and I think there is more interest from, you know, the institutional players in what was happening in T5. And with that investment with that interest is coming the investment also,

people want returns right? They what they're willing to get more risk or in a in a challenging Market hose covid. So we're seeing kind of busy I would say it's a little bit of the chicken-and-egg situation happening, but put some challenge if you have to be worked out including covered in. So my second question for the panel is around. What what's happening with the governance on the public and permission side from where you're sitting with her interesting models? What are some of the challenges you're facing? And the industry is facing that we need to work

out together. So I won't start with Todd because I know you had some interesting things to say about the Consortium. So you know we're in a private blockchain, a private but that's seems he commonly used offering and you know so our customers are largely large Enterprises so you know that they have to apply know your customer laws and a money laundering laws, all this kind of stuff. And one of the big issues is that we're trying to get organizations to

work together who may not have work together through any kind of formal mechanism, or maybe add there, an adversarial relationships. So how do you get these adversaries to work together and to form a network that's going to be beneficial to both of them? So what we're seeing is that at the organizational levels, do how do you form? A Consortium is one of the big problems. One of these were working on and and focusing on is how can we govern the blockchain network in that? Kind of a model with the governance is performed on chain. So decisions that are made a

recorded on chain. All the all that sort of stuff is, is not something this present right now. It's all done largest to Autumn and communication and we believe that, you know, that that needs to happen on chain. So everybody knows what decisions were made, how they were made, who participated in those decisions, that's really what we do government is about right, mate, making policies, and ensuring those Policies are tier 2. Yeah, will you? We spoke about what's happening in defy runs over names in the tokens. We hear a lot about governance, Elkins right now

on the public space and is really more of a code word for just like being without a contract, there's a Madman keys. And then the governance token is really just like animal swap in the word airdrop for it. Governance is crucial for adoption. Real decentralization. Tell me when you get there is real, the centralized governments and it's pretty hard to see how we get there with the current device ecosystem Direction, on a public chain, where the gas cost can be.

So astronomical that a single vote for something could be due to a hundreds of thousands of bucks? I think there was a bug and a contract and people tried Samurai So what we need is something a much more powerful substrate and hard-of-hearing platform because of our heritage, and it was designed initially for Enterprise use cases, which include contortions with me, crazy and Incredibly detailed before they decided, they don't actually want to deal. See you trying to get over it

in front and it was for his Network for something closer to like there was actually at the governess was going to be on the public network and people can buy an NTB whitelisting. And I'm basically stating on a contract on the public network and then using that information for the private Network. So then it said, A Consortium model where everyone gets in a room and started using for the blue in the face. You can actually say, it seems to be a really interesting approach that I don't. They were seeing much right now just because he is.

And how do you say, hey, is it be centralized like how, what does that mean? The answer is, if The Regulators want to come after you like easy, just two people with, that's what a lot of it is, what you really want to see where it's hard and if it's needed like, what you doing other things but I'm in the same side. And we don't know how strong is going to be, but I'm a Believer. I don't know what to do. What do you do? If there's hope we're all here with, you know, the decentralized hope but it's tough to get that. I would love to hear. Jordan's use

on from padera. How you all have dealt with. Yeah, it's funny. We started with a book for the Reds. I've seen people on social media share. Recently, it was a d. Hoc the hawk was the founder of BankAmericard. Now known today, popularly has to be sitting at work and he kind of struggle with the same set of problems in the sixties when they were trying to solve problems in the payment card industry and it was how do we get a bunch of these competing institutions together to set standards and establish? Basically this you can think of it like a globally, distributed payments Network. On

top of it they would settle payments and he came up with this whole idea of the chaotic organization, chaos, plus order, he invented a word chaotic and we were very inspired by a lot of his, a lot of his thought leadership in that and that's where we came up with. With the governing body that hit their Hash Pipe. Governing Council are answer to that. I totally agree with wheels comments. And some of the other panelists comments, I think that was been stopping Enterprise adoption, has been serious governance. I'm in in truly decentralised governance of some of these networks. A lot of

networks are really nailing decentralisation of the platforms themselves, but our I think falling short when it comes to addressing continuity plans for how these networks will operate. Who defines a product roadmap, who defines you? Do a software upgrade, do we have the legal controls and Technical controls required to keep these platforms stable, especially if we want to attract, he's really valuable tokenization ecosystems. So, our model is, you know, it was very dhawk inspired. But it's if we tweet, we have these governing council members, they serve two consecutive three-year

terms on our governing body. We have a membership committee that is also filled up by these, by these companies, they Define objective, standards. And then, we were crew companies based on the criteria that the membership committee set Members can build each other out. They can vote new members in if members are in compliance or not running their infrastructure or not updating their software, they can they can be penalized in and instead of a proper fashion. So I'm in and there's only 39 companies in sort of our definition of how we govern itself in, in, in, in that regard, that's how we've

done it yet, our our differentiators, we offer this consensus service in the thinking is if this thing is going to get integrated into these private blocks and platforms, Todd mentioned, hyperledger Fabric and the Oracle manage Washing Service which has scrapped. What we have done, is we have discovered consensus service, that we integrating those platforms, similarly could be integrated into, you know, a quorum implementation or North recording for meditation. And we really seen that is the answer. When you have governed consensus it, it sort of makes the ease of of spinning. A new

Block Chain up, you don't have to necessarily build the Consortium first, you can kind of just build the platform and then have a really well cover and consensus. Sure thing. ISO standards. And then I mean it it does sound like a komplex but well working governance structure but it does also found a little centralized, right? So so Dan do you have any thoughts on that the governance and decentralized and then permission models of this across our portfolio example, I like the word chaotic. Jordan, that that's pretty cool. Another way

another equivalent word is confederated so that ends with a group of folks who have expressed Authority, but there's no simple party we've developed a confederated model for governance. And in some setting, an example of this would be the intravascular working group on for the exchange of travel data between parties. To be at that one must be a part of that group broker-dealer rules work. The same way with finra question is, who gets to establish that one has the Two example kyc a party and it works in it. The confederated model that we have seen out

most actions and has really means I'm within a boundary. And so we see for companies like for example, This really is how old is wanting get the right to express Authority and within a company if I'm an Institutional trailer for J P. Morgan for example. I guess my authority to execute transactions with the value that JPMorgan, owns based on an assignment that I have within JPMorgan, I can't. If I leave JPMorgan, I don't take that Authority with me. So, in fact that Enterprise corporate structure that you

see, which gives me the authority, is something that also needs to be expressed with, in the box. And when you do fund management, you're accountable to parties. The fund manager is designator delegated that Authority. Typically, that's not a person as an entity and you need to be able to track one bright to act on behalf of the entities. We have tools there. And finally, there's business processes are typically. When one does a significant action on back of one's Enterprise there's actually a sequence sign-offs or other party. So we have a decentralized, work. Didn't realize hierarchical

model a confederated model and then just flat-out. Dow based governance models, wear shareholders, it's up the road. What are your thoughts on this topic of great information here? You know, and maybe step back a little bit for some of the audience members, you know, is who comes to compliance regulations and governor. And we all know this is a very complicated piece of the equation for the successful adoption of defy by the Enterprise. Like, it needs to be said though that I think many listening, I would like to see blotchy to disrupt. The, Current financial

industry panel being said, I think if you were to take a quick peek into the past evolutionary cycle of governance, we know that it moves many cycles behind the analytics and intelligence needed, to make smart fair and most importantly legal decisions. And although we don't have, the answer is complicated and fast-moving piece of the puzzle. Yet. I would like to influence those in the audience that are pursuing it law. Highly recommend you, consider blockchain governance has an option and help us push this new technology towards Mass adoption. Awesome.

And so we have six minutes left. So each of you, approximately thirty seconds to one minute. Tell me what you think the future of Enterprise. And I'm watching adoption is and try to enter possible. Use a use case in there. So I will start with perception plays a role here. I think we've all been battling that his group and I think we know what we're battling, you know, as a team. And then I think there's a group of technologist would never, have you blocked me in as an all-or-nothing, piece of technology, which it is

today, it seems that many single executive and sea-level technologist, still have that impression. I think we need to fix this misconception with the decision-makers and courage, the Enterprise, I get a dub team working in. Their sandbox is my ways to enhance our augment, their current applications and architecture utilizing watching. No, for example, there are finger is a different pieces of currently utilize application. ID are peas accounting supply chain File sharing a list goes on and on like a greatly benefit from watching. Now, looking at this event was panel the audience in the mini

great companies and teams that are committed to this process, it appears. The blockchain is here to stay new siding future, the block single plan the future of technology as we know it is just getting started. So thanks for having me. Yeah, I think I fixed the future of Enterprise adoption. Is you do today? We were those of us have been in the space for a while. You know a number like fifteen billion dollars in circulating supply of something. Like usdt is somewhat exciting and we sort of celebrate that I expect that in the relatively near-term

you'll have very large for a reputable sort of the payment in financial service and come over the bank's issue stablecoins that very quickly. The door, some of what we have in the market today. I think that will serve as probably one of the bigger Fiat to heal crypto, our ecosystem, on ramps, and bring much more Dobson, to these networks. That is definitely going to stress test. A lot of the infrastructure that we have in place today and I expect a lot more token Bridges between some of these networks to facilitate value Exchange in a lot more people building substrates to kind of

dictate interoperability between these networks and again how that value gets transacted. I am very bullish. Long-term I think it's still so early so there was listening that are not yet. In the space. I think you do now is a great time specially in this new post covid, world of ours to really get involved in Shameless, plug, we're definitely hiring here to there. Drive me to future of Enterprise blockchain and a couple words out of the next couple of years is going pretty slow and then is going to pick up back in the day. After lunch, people try to apply to

Enterprise and had a very hard time getting an option and then kind of round 2 of Enterprise adoption was aetherium, should a huge amount of potential but the technology snacks that are just arriving now, I think that's all we needed to exist or real Enterprise adoption to really move and the way it is going to happen. The way you can know what's happening quickly is that or bridging on to them with some way. Like it's going to involve the public Enterprises on a public chain. That way, they don't worry about gas cost or through the roof. Then you're going to like the

Enterprise isn't quite happening. Thank you, that's great. Add the future is largely in our seen in public services were seeing it in the medical industry. So for sharing medical health, records, all the information. So I see largest people coming up with new ideas about how do we apply some of this? And I think one of these, I seen the Enterprise world is that we're not. So they're not so focused on so the month ization. And so he didn't have a currency built into your underlying platform. Is it necessary to them? So you know who you share this information

with a little bit foreign in some regards, I see some interoperability work that can be done there and I see also in Rockaway work being done between the various Enterprise blockchains is being critical. yeah, Dan We're working on tokenized exchange-traded funds with an Institutional partner with him. And this is real racy. The Enterprise intersecting with the broader a black chain contacts were working to make these on public networks on my net. And so the key pieces of how you

govern back-end activities back-office functions. But also allows shareholders have a voice in these tokens are our Central. So we're excited about that. It's really as a Jordan said, the beginning of institutional value really with high-grade investment opportunities coming to investors in the space. They're highly liquid easy to trade available in New York, Stock Exchange or in the crypto wallet. Yeah, you've got so it. So thank you all so much for your time. I, I totally agree with the team. Some interesting models mainly spend my time in the ecosystem and we do have to figure

out how to put gas. You know, I think there is something with governance of privacy that balance between privacy and transparency. He will be figured out and different models as we go forward. I depending on the UK's and I am looking forward to the next few years. It's it's moving so quickly and there's never a dull moment though. I hope they would be working with all of you in some form or fashion, the near future, thanks for your time.