HOW BLOCKCHAIN CAN IMPACT THE TELCO & MEDIA INDUSTRIES · The first blockchain powered payment...
Transcript of HOW BLOCKCHAIN CAN IMPACT THE TELCO & MEDIA INDUSTRIES · The first blockchain powered payment...
© BTO 2017 - All Rights Reserved 2
AGENDA
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BTO OVERVIEW – Alessia Bonanno, Country Manager LUX
KEYNOTE SPEECH – Stefano Rossi, Blockchain Specialist
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BTO OVERVIEW – VISION
BTO is an International Research Program that transfers Knowledge and Talents from Universities to
Companies, bridging the gap between these two worlds
Scientific Research Production
Talent training
No Execution Capacity
High bureaucracy
No business orientation
Knowledge in Execution
Talents in Action
ISSUES
Lack of Execution Capacity
High Bureaucracy
No Business Orientation
ACADEMIA
NEEDS
Innovation
Talents
Excellent Know-how
COMPANIES
“
“ is a
BRIDGE
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BTO OVERVIEW – BUSINESS MODEL
BTO has three main area of services: Research, Events and Consulting. Each of them comprises multiple
products and offerings
INSPIRATION for your
Business
EXPERTISE
to improve your
Performance
EXECUTION
to accelerate
Business Growth
INSIGHT
for your
Challenges
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BTO OVERVIEW – ACADEMIC RESEARCH NETWORK
BTO Service focuses on supporting the company in its Digital Transformation process through leveraging
Academic Research Network and Business Network
Carlson School of Management
Minneapolis, UNITED STATES
NYU Stern School of Business
New York, UNITED STATES
University of California, Irvine
Irvine, UNITED STATES
Michigan State University
Wien, UNITED STATES
UNITED STATES
Wirtschaftsuniversität Wien
Wien, AUSTRIA
Ludwig Maximilians Universität
Munchen, GERMANY
Universidad Carlos III
Madrid, SPAIN
University of Piraeus
Piraeus, GREECE
Grenoble Ecole de Management
Grenoble, FRANCE
Brunel University
London, UNITED KINGDOM
Imperial College London
London, UNITED KINGDOM
EUROPE
9 COUNTRIES
95 PROFESSORS IN NETWORK
12 UNIVERSITIES’ PARTNERSHIPS
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AGENDA
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BTO OVERVIEW – Alessia Bonanno, Country Manager LUX
KEYNOTE SPEECH – Stefano Rossi, Blockchain Specialist
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BEING AWARE OF DISRUPTIVE INNOVATIONS
Did not understand disruptive innovation
Rapidly adapted to new technology innovation
• The entertainment industry wasted its resources fighting MP3, streaming, and illegal p2p sharing
• We now get MP3/movies/stream from iTunes, Google, Amazon, YouTube… not Sony or Universal
• What about Blockchain innovation?
Source: Ametrano 2017
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THE BLOCKCHAIN JOURNEY 2008-2014
Blockchain development started before the recent hype: this technology sparkled after the birth of the Bitcoin protocol. Below a timeline with
the most important Bitcoin/Blockchain related facts and events
2008
BITCOIN WHITE PAPER RELEASED
Satoshi Nakamoto publishes his
white paper Bitcoin: A Peer-to-
Peer Electronic Cash System
2010
BITCOIN GETS A WIDER AUDIENCE
PIZZA DAY: 10,000 BTC
Market cap exceeds $1
million USD
2013 2015
BITCOIN SKYROCKETS
Many exchanges get
established
BLOCKCHAIN ARRIVAL
Blockchain acquires its own
identity
© BTO 2017 - All Rights Reserved 10
THE BLOCKCHAIN JOURNEY – RECENT YEARS
THE BLOCKCHAIN EVOLUTION 2015 - 2016
Blockchain events become very important and gather top level managers worldwide
Blockchain conferences hosted globally
The first blockchain powered payment takes place
Santander has started a pilot program to send money via a blockchain application
Media coverage spikes
Mainstream media interest in blockchain increased in the last two years
Over $1 Billion invested in Blockchain tech
Cumulative investments related to Blockchain start-ups have gone beyond one billion dollar recently
The rise of smart contracts
The Ethereum protocol brings the blockchain to the next level: smart contracts become available for development
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BLOCKCHAIN INVESTMENTS IN THE LAST TWO YEARS
228
160
145
101
85
114
26
132
0
50
100
150
200
250
2015 2016
Millions
$
Q1 Q2 Q3 Q4
Tot. 2015
$484M
Tot. 2016
$507M
Source: Coindesk 2017
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THE ICO CRAZE: THE NEW WAY OF FINANCING BLOCKCHAIN PROJECTS
1.33 17.1 38.74 1.17
173.36
797.82
0.53 26.86
1225.49
5.58 39.08
0
200
400
600
800
1000
1200
1400
2015 2016 2017
Mill
ion
s $
Q1 Q2 Q3 Q4
Tot. 2015
$ 8,61M
Tot. 2016
$ 256M
Tot. 2017
$ 2B
The Blockchain ecosystem has seen many ICOs so far: not many people know that Ethereum was funded after an ICO where more than 8000
contributors bought the eth pre-sale tokens (1 Bitcoin for 2000 Ether). The name reminds that of IPOs or Initial Public Offerings (IPO) where
stocks of a private company are offered to the public. ICOs are quite the same but instead of stocks, digital tokens are offered to potential
investors
Source: Coindesk ICO Tracker
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BLOCKCHAIN TAXONOMY
The term Blockchain began to be recognized as a chain of blocks that hold batches of all the valid transactions ever made since the beginning
of the Bitcoin network. Today, the term can refer to different development approaches.
PUBLIC
PRIVATE (ENTERPRISE)
A public blockchain, like the one that empowers the Bitcoin or the Ethereum networks, is a
decentralized distributed ledger which uses a native digital asset (i.e. Bitcoin) that acts as a unit
of account for transactions on that ledger
These blockchains are distributed ledgers that provide solutions to clients who intend to use
shared cryptographic databases managed by trusted intermediaries. Whatever falls into this
category can be defined as DLT or Distributed Ledger Technology
DESCRIPTION TYPE
Source: BTO Internal and Secondary sources
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ENABLING DIGITAL SCARCITY AND DATA SECURITY
The rise of Bitcoin and its underlying Blockchain technology enables
a series of possibility which were not possible before. Leveraging
Blockchain Technology is possible to ensure digital scarcity
SOLVING THE PROBLEM OF DOUBLE SPENDING
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BLOCKCHAIN EARLY APPLICATIONS
• Bitcoin, Ethereum, Litecoin and all the
cryptocurrencies born after Bitcoin represent the best
working applications of Blockchain Technology
• The blockchain represents the global shared ledger of
all the transaction happened on a given network
• The digital tokens used on these blockchains could be
used to represent real world assets
• A generic data file can be hashed to produce a short
unique identifier, equivalent to its digital fingerprint
• Such a fingerprint can be associated to a transaction
and registered on the blockchain
• Blockchain immutability provides non-refutable
timestamp, proving the existence of the data file in
that specific status at that moment in time
DIGITAL CRYPTOGRAPHIC TOKENS NOTARIZATION
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TELCO & MEDIA EARLY BIRDS AND MAJOR EXPLORATIONS
EARLY BIRDS MAJOR USE-CASES AND EXPLORATIONS
DIRECT INVESTMENTS IN BLOCKCHAIN
STARTUPS
SECURITY RELATED BLOCKCHAIN PATENTS
IOT SECURE CONNECTIVITY
ANTI-TAMPERING & DATA INTEGRITY
E-SIM & FRAUD PREVENTION
MICROPAYMENTS & M2M PAYMENTS
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WHY BLOCKCHAIN BETWEEN FINTECH & TELECOM?
$11.1
TR
Linking the physical and digital world could add $11.1tr
in economic value by 2025
Source: McKinsey Global Institute
Report, ‘The Internet of Things:
Mapping the value beyond the Hype’
Many industries are already testing and introducing IoT but a critical factor in integrating IoT into sustainable business models is the ability to
extend from the physical and communication supply chain to the financial supply chain
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POSSIBLE BLOCKCHAIN IMPLEMENTATIONS
ONLINE CONTENT DISTRIBUTION DIGITAL IDENTITY MOBILE PAYMENTS
E-SIM implementation will open the
possibility to move user proof-of-existence
on the device while leaving the user data
safely stored on the Blockchain. The
programmable Software Layer will create
an unique association between the device
and its user thus open a full range of
unexplored possibilities
Online content distribution is an hot topic
widely discussed which is at the centre of
FinTech development of creating tracking
models related to pay per use of digital
contents. This is going to be one of the
most interesting application in which
Telecoms will be providing new services
to their customers
Digital currencies could replace how
customers deal with topping up their sim.
This scenario enables some interesting
implementations regarding:
- Micropayments
- Money transfer between users
- M2M Payments, Wearables
- IOT integration
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POSSIBLE BLOCKCHAIN IMPLEMENTATIONS – CHATBOTS AND CONDITIONAL PAYMENTS VIA SMART CONTRACTS
P2P payments in chat Chat and pay in the same app just by
clicking links.
Chatbots Talk to a bot like you would talk to a
human.
Shop by chatting with a merchant's bot,
pay in two clicks
Risk-free conditional smart
payments Setting a condition when the payee
receives the money. If the condition is not
met, you get your money back.
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USE CASE: IDENTITY AS A SERVICE
Fraud prevention seems to be a promising application based on blockchain technology. The telco sector is big and complex therefore
individual use cases for the technology need to be identified. Telecom companies can create new sources of revenue by providing identity
and authentication as well as data management solutions to partners, enabled by a blockchain
VERIFIED IDENTITIES
ON THE BLOCKCHAIN SHARED PUBLIC
LEDGER FOR
SUBSCRIBERS INFO
SUBSCRIBER
Blockchain
certification
A public shared ledger could be the solution to reduce frauds and to improve KYC
processes alongside monetizing clients’ data with third parties
Blockchain
certification
$38B
LOSS Fraud steals $38 billion* a year
to companies
*Communications Fraud Control Association (CFCA)
2015 Global Fraud Loss Survey
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MARKET VIEW: INSIGHTS FROM THE MEDIA INDUSTRY
The introduction of Digital Rights Management systems has not substantially reduced copyright infringements. The reduced revenue streams have been only partially
recovered through new consumption models such as all-you can-consume streaming subscriptions and micro-payments for articles for examples. This seems one of the
main reason why the media industry at large is looking at Blockchain to improve the current business models and create new revenue streams
WHERE
ADVERTISING
PRESS
ENTERTAINMENT
USE CASE
Using the blockchain as a central repository for
advertising management specifically to
reduce fraudulent traffic and to better monitor
revenue streams
Creating a new digital content ranking
system for online content to evaluate and
distinguish between fake and real content
To directly tackle online content piracy this
company is aiming at launching a
decentralized and anti-piracy content
distribution platform
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CURRENT CHALLENGES AND POSSIBLE BENEFITS
CHALLENGES SOLUTIONS
• Margins are being eroded by new players
• Increasing costs in infrastructure and services
• Disruptive competition from Internet companies
• Changing customer needs and attitudes
Blockchain technology can be used to build open, secure
and trusted platforms through:
• A better data management system where the value
chain is monitored step by step
• Introducing the Blockchain trust paradigm (single
source of truth and better coordination between
transacting parties)
• Possibility to explore new disruptive solutions for the
IOT industry (M2M, Smart Contracts, Tokenization)
ECONOMIC LOSS
BRAND DAMAGE
STREAMLINING REVENUES
GROWING REPUTATION