Usage of Blockchain in Telco, KT Case Study

1 Biz & Service Paradigm Shift

2 KT Case Study

3 Telco’s Perspective

3

Blockchain and Service innovationBoom of Crypto Currency investment! What is our opportunity in crypto currency Bubble?

Skyrocketing of Crypto Currency price! Speculative frenzy of ICO !

Bitcoin850% ↑ in 2017

Altcoins341B $ volume

Amazon came from ‘.com bubble’ , who is next Amazon from Chain bubble?

10K $/coin

1.3K altcoins

Initial Coin Offering

Blockchain Startup

3 Billion $

1.5K startup

4

Definition of ‘Blockchain base Service Innovation’

Legacy Middle-man Digitalized Middle-man

Amazon: connectivity between Online and Offline!

Next Amazon with Blockchain: The Trustful Connectivity among the industrial Players

1. Transformation of Middle-man Biz

2. Trust High way for 4th Industrial Revolution

5

Blockchain is changing the world !금융 – Blockchain base real-time Global Remittance network vs. Legacy SWIFT*Finance

SWIFT

RIPPLE

• Low-volume

• High-cost

• Slow

• Batch Payment

• High-volume

• Low-cost

• Real-time

• P2P Payment

Crypto Currency(XRP) base Remittance

Volume: 20B $, Connection with Global 100 banks

(* Society for Worldwide Interbank Financial Telecommunication)

6

Blockchain is changing the world !금융 – Blockchain is making the innovation of Legacy SCM, with providing the transparency & efficiency.SCM

Food Safety

Farm Processor Distributor Retail

…

Logistics

Bank

Logistics

Port

Custom

Exporter

ImporterBank

7

Blockchain is changing the world !금융 – Blockchain is making the innovation of Legacy Energy biz area, with providing the trustful and

efficient P2P energy trading feature among the distributed Generators, E-prosumers.Energy

8

Blockchain is changing the world !금융 – Direct trading between Content Creator and Consumer, Direct investment to Content Creator,

like composers/singers

Media

Content Platform

Drummer

Singer &Song-writer

Guitarist

Smart Contract(Pay per Play)

Listener

25%

50%

25%

Artist Coin

9

Potential power of BlockchainLike countless Internet Application, Big chance & opportunities in Blockchain

• Email (SMTP)

• File tx (FTP)

• Web (HTTP)

• Management (SNMP)

• Portal• YouTube• OTT

TCP/IP Blockchain

Use cases ?

vs.

All IP application

10

New ‘Value Transaction Biz’ Opportunities in X-Biz

Digital Contents Data Storage

• IPTV, Music streaming

• Micro-Licensing, Secure

Rights Management

• Cloud/Data Center Biz.

• Secure Access Control,

Ransomware-Free

IoT G/W

Healthcare Energy

• Chain of Everything

• IoT Data smart

transaction

• Health Chain

• Reputation mgmt

• Health License mgmt

• Energy Chain

• P2P Energy trading

Privacy Protection

• Perfect privacy preserving

• Secure voting

Transparent Donation

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Cloud

Blockchain as a Service

Enterprise

Service & Solution

SCM

Food Safety

Financial

Consortium

Status of ‘Blockchain-based Service Revolution’ in Real-world

Strengthen Legacy market with Blockchain New Biz Incubation & Market Disruption

Are you ready for ‘Big Biz Shift with Blockchain’ ?

Over 1,500 Startup companies

just POC level

BigPlayers

MarketLegacy

SmallStartup

MarketDisrupter

12

Authentication Blockchain

Hurdles in Blockchain-based Service Revolution‘Innovative Technology & Smart Business model’ to be Working successfully in current Legacy Biz environment

Regulation

Technology

Market power of Centralized LEGACY player

e.g.) Legacy Energy price from KEPCO

vs. Renewable Energy price

Regulation over ‘Technology Growth’

e.g.) Privacy Protection vs. Utilization of personal data

Market power of Centralized LEGACY IT Solution

e.g.) OAuth vs. Blockchain-based authentication

Market

Energy Blockchain

Personal Data Blockchain

Big Difference between each countries

▶ Global Biz vs. Local Biz

Regulation >>Technology

▶ Regulation improvement !

▶ Technology to overcome regulation !

Why Blockchain ? Which Benefit?

▶ Technology to make market shift !

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Prerequisites for Real BusinessNeeds Disruptive BM with “Stable Performance and Trust”

Most users are accustomed to ‘Legacy Biz Infra like internet, high speed & no limitation’

Decentralized/Distributed Technology

Performance guarantee ?

(Trust of node, transaction speed, Network delay, loss etc.)P2P network

ConsensusAlgorithm

Uncertainty about Finality

(Real-time processing?)

Performance ?(Block time)

Real-time ?(Block Confirmation time)

Blockchain (Public) vs. LEGACY

3~100 TPS

Transaction Per Sec

> 10K TPS

Transaction Per Sec

10min~1hour Real-time

E-Commerce, Mission Critical biz ?

1 Biz & Service Paradigm Shift

2 KT Case Study

3 Telco’s Perspective

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Security solutions

* MRO

Online Bank Payment Processing

Payment Gateway

Mobile Voucher

* maintenance, repair and operation

New Biz Chance for KT & KT’s subsidiaries

16

KT Smart Contract Use Case (1)

Vending machine @ Cashier-Less Store Coffee Vending machine @ office

Smart Contract with Programmable function

17

KT Smart Contract Use Case (2) Global Epidemic Prevention Program (Prototype to be completed by Jun, 2018)

18

ESC(Electronic Signature Capture) System

Inefficient High cost of solution

Optimization of Storage capacity

Efficiency

at work

Open source

S/W

Processing Time 88%↓ (Max. 3H 20min.) Server Consumption 84%↓ (Max. 1.7GB 270MB)

Waste of storage capacity

Managing a huge volume of customer information places an increased burden on companies

BC Card has adopted KT’s Blockchain-based electronic signature capture (ESC) system

ESC (July, 2017)

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EDMS(Electronic Document Management System)

Save license fee and minimize additional changes Improvements in efficiency at Back-up and automatic synchronization among nodes

Blockchain-based database to ensure data integrity in cloud computing environments

Launched Data Chain for electronic document management systems in partnership with BC Card

EDMS* (Feb. 2018)

Reduce TCO

Optimization (Server, Capacity)

Data security & integrity

Financial Institutions

- Credit Card, Insurance, Securities

Non Financial

- IoT, Health, Public service

ETC

- Call Center Recording of voice, CCTV, Contract

* EDMS(Electronic Document Management System

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Digital Asset Exchange Platform

Merchant side Clearing & Settlement Customer side Use, Top-up, Deduct, Check, Convert to other items (mileage, point…)

Customer

Customer

Merchant

Apply K-Coin, a Blockchain based virtual currency platform to mobile coupon service ‘Giftishow’

- Clearing & settlement with Franchise, Customer’s payment

K-Coin

Digital Asset Exchange Platform

based on Blockchain

Clearing

& Settlement

Use, Top-up, Deduct, Check,

Convert to other items Send as a gift

21

Blockchain-based Carrier Roaming Clearance & Settlement

22

Extension of Blockchain based Roaming Clearance & SettlementImplementation of Cross-Carrier Value Added Service Incubation

23

Blockchain base KT SSO

1 Biz & Service Paradigm Shift

2 KT Case Study

3 Telco’s Perspective

25

Telco’s Perspective for Blockchain TechBlockchain platform-less ‘Omni-Exchange platform’ for every transaction/things

26

Telco’s Perspective for Blockchain TechImplementation of Omni Exchange Infra from Managed, Fast, All-Round Blockchain technology

27

Differentiated Telco Blockchain: KT Operator Blockchain