 This is the session for latest technology adoption trends in enterprise blockchain projects. I'm Jim Zhang. This is Tracy, as many of you know. She's the chair of TSC. I'm one of the TSC members. So a little bit of introduction for myself. And when Tracy comes up for her part, she will do introduction for herself. I'm one of the co-founders of Kaleido. At Kaleido, we provide infrastructure for blockchains, both on the blockchain layer, but also on the off-chain components layer, because we figured since day one at Kaleido that when you build a solution on a blockchain, there's many components beyond the blockchain itself. In fact, we often find that blockchain is 5%, sometimes 10% of the whole solution. For everything else, you have to build a lot of components to make things work together. So Kaleido is always a platform that provides not just the blockchain, but also other components to make it easier to build solutions on. So a bit more about myself. I'm one of the TSC members as of this year. In the past, before I joined or co-found at Kaleido, I was part of the IBM team on the platform side for blockchain. I was one of the Hyperledger Fabric maintainers, not a retired maintainer. On Fabric, I'm also the commercial platform's lead architect for IBM. In terms of the things that both from our point of view at Kaleido and Tracy's point of view at Accenture, both of us work with customers quite a lot. These are the latest trends that we see customers do in terms of getting blockchains into their enterprise architecture and solve their own pain points. The first one is tokenization. Token, I think, is among the few technologies that are universally understood regardless of what blockchain protocols you are part of. Whether you are Ethereum, the whole Ethereum community, there are many protocols under that umbrella, or Polkadot, Cosmos, Avalanche, whatnot. Even Hyperledger Fabric and Besu, regardless of your protocol or even Corda, which is not a Hyperledger, but nonetheless a prominent enterprise blockchain protocol. Token is something that everybody supports because it's a very useful programming construct. So it can be very simplistic yet popular. For example, fungible token standards so you can launch your Shiny coins or mint valuable things in the form of non-fungible tokens or NFTs. They can also be sophisticated things. For example, you can launch a token implementation that models one of the security instruments, which as you know has many aspects to them. For example, if you look up ERC 1400 set of standards, you can see they are attempting to model real-world securities that are in the regulated space. A token can either represent value, those would be fungible tokens. Fungible means one token is exactly the same as the next token, just like currency. They can also be representing global uniqueness in the form of non-fungible tokens. So every token is unique from every other token. There are many token designs and implementations. A lot of them have been battle tested by being launched in the public networks and being responsible for securing sometimes multi-billion dollar worth of value. There is a popular term you may have heard of, total locked value, which represents how much value a particular smart contract, for example on Ethereum, is responsible for in that particular construct for token. This should make enterprise feel safe when they adopt a token implementation because if there are any flaws they would have been discovered because a public network having a flaw is very easy to be a target for hackers. So the fact that they have been responsible for a large amount of value for a long time is proof that it's very high quality. Just as an example of a token, USDT is a stable coin on Ethereum. It's an ERC20 implementation. ERC20 is one of the simplest token standards as a fungible token. It has a market value of 32 billion as of the writing of this documentation. So tokens is being adopted in enterprise space from many angles. For example, banks, their customers come to them often with a custody need when I have a wallet that I'm responsible for and I have a couple Ethereum or Bitcoin in there. I may be comfortable managing the key myself but as my portfolio keeps growing, the value continues to rise. At some point I may feel a need for someone else to look after that value. So in case I misplace my key, I won't lose all that. So banks will have a need to provide a custody service both for safekeeping purposes but also for earning interest on that value. Consumer brands, they are very interested in token standards because they want to launch NFTs for their unique designs and for growing their brand in the virtual space. One of the most popular NFT ecosystem is NBA Top Shot. Accumulated sales have surpassed $1 billion. So that's generated in the past year also that was never there before. So it's net new value that's generated just because of the NFT technology. Healthcare, healthcare insurance consortiums can use fungible tokens as an incentive to share, improve data quality. So this is one of the sample use cases that one of the Clydo customers had which is a healthcare insurance consortium. One of the year-long challenges for them was making sure their healthcare provider information is high quality. Information about the doctors. So when their patients needs to contact their doctor they didn't have the wrong phone number and wrong address. So the best way to improve the quality is to pull together the data from different vendors and different insurance companies and to encourage the sharing of the data using tokens as incentive is a great way to do that. Post-trade clearing. To use DLT to make settlements more real-time rather than batch at the end of the day. As an example, DTCC which Bob mentioned earlier announced the Project ION which is finally in parallel production after a long period of experimentation in August this year and has processed a large amount of value through this new DLT-based system. Web 3 startups is another early adopter of token technologies. They want to use DLT to provide a new ecosystem for doing DeFi, decentralized finance so that regular people can participate in financing activities which before blockchain is not possible because of the high threshold to entry. As another example, Finality which is a company based in London just won UK regulators approval as a new regulated payment solution provider. So that's a key milestone for that company and you can see mainstream adoption of token technologies. Token Bridges, this is another very critical component for the blockchain space in the enterprise side. Token Bridges is part of the bigger umbrella called cross-chain interoperability. There are other types of interop technologies and Token Bridges is one of the most mature and one of the popular solutions for that. So what this does is we talked about blockchain solving silos issues but we still have blockchain themselves being silos because you have Ethereum as one silo, you have Solana as another silo, you have Avalanche as yet another silo. And you often have a need for digital assets to go from one to another. For example, I want to use my Ethereum to invest in Solana because there's a great debt that's been developed on Solana. How do I participate in that but invest from my Ethereum portfolio? Or sometimes when you need to pay for NFT that is minted in the side-chain ecosystem, how do I pay for that with my Ethereum holdings? So things like that all involve digital assets or a state to travel from one chain to another chain in a secure and seamless way. So assets can do this transfer in different fashions, right? Sometimes it's a clear transfer where I need to take it out of circulation in the source chain and then I put it into circulation on the target chain. Sometimes it's sort of a swap or exchange where parties do payment in one way and then in one chain and then do delivery in the opposite direction in another chain so it's sort of a swap between two chains. So bridges are typically secured smart contracts that require multiple approvals before actions are taken. So most of the popular implantations of token bridges have smart contracts on both the source and the target. And there's a relay component that acts in between to listen for events and take actions. Besides tokens, general purpose bridges can coordinate state transfers between two systems. So not just tokens but if you have a smart contracts that has custom state those can be monitored and act upon in the different blockchain through the bridges. I won't have time to go into details on this chart but this is a typical setup of a blockchain across two ecosystems. So in this particular example I have an enterprise DeFi that's built in the side chain on the right hand side and then I'd like to integrate with a layer one for example Ethereum on the left hand side through the bridge. So you would have someone who have accounts on both sides and a smart contract on either side so that the events that happen on one hand can be coordinated through the token bridge so that the corresponding action can be taken on the other side. For example when I have a large amount of Ethereum that I like to invest in this side chain ecosystem because whoever built the DeFi is very smart and knows the market and it's a very lucrative business that I like to participate in you would deposit your Ethereum through the bridge so the contract sensing that someone deposited some amount of value will then mint a corresponding value into the side chain ecosystem so now you have exchanged your Ethereum to a token that you can use on this side and then you can invest at some point your proceeds accumulated enough and you like to cash out. You can do a withdrawal and that would be a burn on this side and again the bridge will sense the burning event and then will release the fund that was previously locked here and you take out what more Ethereum than you have deposited earlier. So that's what a token bridge looks like. The next component I like to cover is advance wallets. So as more and more value go into enterprise based blockchains key management becomes a critical component so you want all keys to be highly secured managed securely managed and you also want certain transactions to have multiple signatures so no one rogue actor can steal the money and run away. So multi-party compute is a cryptographic technique that allows a common output to be computed across multiple parties and no single party has a whole truth in the end. Every party produced only partial truth, the whole truth only comes out at the very end. So this is a great way to make sure that no single party holds your private key that has the power to unlock the value on blockchain so MPC based wallets is very secure in that way. It's a great way to manage your keys and it's a great way to do multi-signature flows so it's very popular within the crypto exchanges that have to hold huge amount of digital assets but also banks providing digital assets custody which also needs to manage huge amount of assets will find this very useful. Last slide before I hand over to Tracy is hybrid blockchain you will hear more about this in other sessions. This is when enterprises use a mix of public chain and private chain together. It's somewhat similar to this kind of setup where you use a gas-free chain to do the majority of your transactions because who wants to deal with gas-free fluctuation on a minute-by-minute basis? That's a lot of headache you want to avoid if possible. In general, a gas-free chain running more efficient consensus algorithm gives you a higher throughput compared to the public chains and in addition you don't have to hold crypto to most a lot of industries is a problem especially the regulated industries. It's also desirable to allow digital assets to flow in and out of the ecosystem built around the gas-free chain so having a hybrid chain setup you can have values flow securely and seamlessly between the public and the private. With that I'll hand over to Tracy. Thanks, Jim. Alright, am I on? Everybody can hear me? Okay, good. So welcome everybody. Just a bit of background about myself. I've already spoken but I currently work for Accenture. I got involved in the blockchain space back in 2015 when basically IBM introduced open blockchain platform which eventually became Hyperledger Fabric. My manager at the time came to me and said, hey, there's this new thing. Can you check it out as part of the strategic architecture team? And I said sure, let's take a look at it. I thought it was so interesting that I moved over to the Linux Foundation where I worked for a couple years as a community architect at Hyperledger and have since moved to Accenture where I focus on this day to day. So let's take a look at the rest of the trends that we have within this presentation. So the next trend that we have is organizational wallets. So we actually have a couple of different things that are happening in Hyperledger specifically focused on the organization and wallets for the organization. The first one is traction. It is a Hyperledger Aries project. It's a digital wallet solution for organizations that focuses on the line of businesses and allowing them to easily integrate Hyperledger Aries into their applications. So without the businesses specifically having to stand up an instance of Accopy themselves. So imagine being able to use Aries without having to set up that instance. Traction provides a service layer to manage those Aries agent instances in a multi-tenancy Accopy deployment. It provides some value added services and future functionality for that will include things like machine readable governance. We also have within Hyperledger Labs the business partner agent. So this is a opinionated SSI wallet. It's controlled based on Hyperledger Aries and it allows you to verify a hold and issue verifiable credentials. So you can attach your public organizational profile to your public DID and then you can add business partners and connect to those business partners and exchange information about your business with your business partners. The second thing that I'll include here with trends is the multi-purpose wallet. So wallets is obviously a big sort of conversation that we're having and we think that, and I think you heard it in Melanie's talk, right, where she talked about the fact that we currently today have blockchain wallets that are focused on digital assets, your tokens, your cryptocurrency, or we have blockchain wallets that are focused on verifiable credentials. What if we had a universal or multi-purpose wallet that could hold all of your different sort of assets, your financial instruments, your cryptocurrencies, your NFTs, your digital identity, those verifiable credentials, any sort of travel data or loyalty cards that you might have. So we think this is a place where we will see some work being done and allowing you to access those wallets through the web, through your mobile devices, through hardware, through VR headsets in the virtual world and even through your desktop. The next trend we have is roll-ups. So roll-ups are becoming more and more used. Roll-ups move that computation in your state storage off-chain and allows you to keep some data per transaction on-chain. So there's a couple of different sorts of roll-ups that exist. So optimistic roll-ups use fraud-proofs. The roll-up contract keeps track of the entire history of the state and the hash of each batch. If anyone discovers that one of those batches had an incorrect post-state route, then they would use a fraud-proof to prove that there was an incorrect computation. The contract itself would then be able to verify that proof and revert the batch and all batches after it. There's also the zero-knowledge roll-ups. These use validity proofs. So every batch would include a cryptographic proof and that cryptographic proof would be using a ZK snark. And that would prove that basically the post-state route that is stored on the Layer 1 has the correct result of executing the batch. So no matter how large that computation is, the proof can quickly and easily be verified. Interoperability. I think you'll see a lot around interoperability. You'll notice there's like 29 different talks on the Global Forum that had something about interoperability either in the title or in the description. So interoperability is obviously an interesting space and there's different places where interoperability takes place. The first sort of interaction that you might have is an interaction with a non-DLT-based system. This is exactly what we would see when you're integrating with your enterprise systems, your SAPs, your Oracles, anything that you might think exists today within your enterprise. The second type of interoperability that we have is interaction within the same DLT network. So it's running the same DLT protocol. It's the same exact network, but you might be interoperating across different sort of smart contracts in that particular blockchain. The next sort of interoperability that we have is interoperability across different sort of DLT networks. So these are still running the same protocol, but it's a completely separate network. So think about a hyperledger fabric A network and a hyperledger fabric B network and interoperating across those different networks. And then the last and probably most complex type of interoperability that we have is interoperability across different DLT protocols. So this is something that may be running hyperledger fabric for one of your networks and maybe an Ethereum virtual machine for another network. This is obviously more challenging and more difficult. And of course that hyperledger we have projects that are focused on, interoperability specifically hyperledger cactus, and we have some labs that are also focused on interoperability. And then what would a trends presentation be without talking about the metaverse? So in the metaverse, and this is a slide directly from some of our Accenture slide decks that we have, we start thinking about the way in which the internet is being reshaped. So in the 90s we talked about the internet of data. So there were vast amounts of data that we want to make available to multiple people and allow them to have access to that particular data. In the 2000s we moved to the internet of people. So connecting ourselves through social media and being able to bring to life those connections with people across the world. In the 2010s we talked about the internet of things. Those connected devices that we have throughout our houses, our devices that we carry around every day and connecting those machines together in the way that we work. And then with the metaverse we see the internet of place and the internet of ownership. So bringing together people virtually in the real world and the people who are watching this right now on the live stream. We talk about the internet of ownership where we now own digital assets and verifiable credentials and those are owned by people, things and organizations. So with that I think I'm going to call Jim back up to the stage and we're going to take some Q&A from the audience. Any questions that anybody has? Or maybe share what you may have used in your own business, in your own projects? Did you, microphone. Any other trends that people are seeing that we missed that we should have covered? Who are already using tokens in your projects? Okay, majority of the people. It's great. Who's onboarded MPC wallets? Okay, two. Okay. Token bridges. Token bridges. Any interop components? Okay, a bit more. Okay, very encouraging. Let's see, what else? Who have done a hybrid setup from a side chain, permission side chain with a public chain? Wow, okay. Very encouraging. So I think these are the trends we've seen definitely in the past year also and all these hands are proof that we're not joking. Anything that we've missed in this deck that you think holds a lot of promise and is very critical to the advancement of the space. Daniel, I'm sure you've got a few ideas. Sorry to put you on the spot. So this is probably, a big merge. Yup. Because there's newsmarked people when really the whole pie is gone. The value of roll-ups allows for use cases where it's like, you know, we only have 100 transactions a day, centralization, and the non-centralized ownership. It's essential to have it on some sort of a public or uncontrolled chain that can be in very asynchronous and very, you know, that you can check in once a week to make sure things are working. There's, I think, a large market for decentralized apps like that, particularly in the decentralized autonomous organization type of environment where people are trying to basically build LLC governance into a chain. There's going to be legal stuff coming up with that, but I think ultimately they're going to figure out how to make it work. And a lot of these LLCs, they don't run, you know, 100 TPS per second. They run, like, 100 transactions a week. So there's going to be roles for some of those coming in. I think these are, some of these are important to grow, to grow into smaller applications that are going to be more numerous, you know, a little thousand-part bloom that don't necessarily need their own layer of one, but would want to share a layer of one that other people are running on. And to summarize for those who are on video, the merge, proof of work, to proof of stake, proof of stake going to be very important. A plus one to the roll-ups is being extremely important and seeing what's going to happen there. And then Dano mentioned DAOs. So I think those are some interesting things. I think we actually had a slide on that. We removed it for some reason. I don't know. Yeah, enterprise now. Don't think those are coming to the scene just yet. So I decided to remove it, but just for a show of hands. Anybody thinking of creating a DAO in their enterprise use case? Wow, I'm impressed. I should have left it in. Yeah, I appreciate the input from Dano. We're TSC fellow members, so I thought I'm just a bit justified to pick on. Yes, sir? CBDCs say at some of the very established use cases, they're very traditional in terms of insurance, things like that. Do you have a sense of interoperability maybe a few years down the line when there are common CBDCs? We're seeing some practical implementations of the medverse beyond sandbox and things like that. And then what's in the middle with commercial? Do you have a sense of how those kind of strands are going to come together in foreseeable future? Yeah, so just to repeat the question for the people in the video, it's around interoperability. The spectrum from CBDCs to mediverse and what's in between and how does this become sort of reality and what do we see happening there? I think there's some really interesting things that can happen. Specifically, I think if we look at the hyperledger space, we have things that are networks, blockchain networks. Those blockchain networks could be CBDC networks. They could be supply chain networks. They could be identity networks. I think in the mediverse, things that are going to be important obviously are payments that could happen on a blockchain network either CBDCs, stablecoin, cryptocurrencies. I think there could be some really interesting things around proving who we are within the mediverse. As we think about doing sort of commerce in the mediverse, how do you know who you're interacting with? Are you interacting with somebody on the mediverse who is a known entity? Or are you interacting with somebody that you don't know? The different sort of ways in which you need to be able to prove things about yourself, maybe where you're located, even your age. Different sorts of attributes that we could think about with verifiable credentials that are obviously a big hotspot with the indie areas aspect of hyperledger I think is going to be key. As I think about a high level kind of mediverse stack, I think about the network layer that you're going to have. You're going to have the different protocols that are going to have to interoperate across those different sort of networks. Then the sort of interaction that you're going to have. Not everybody is going to interoperate in world, in a mask. Some of us are going to operate on a desktop and there's going to be some interesting sorts of things that happen at that display layer. Then what is the ecosystem that you're building within that mediverse? Is it focused on commerce? Is it focused on social interaction? What is that focus? I think there's going to be some interesting things that happen there. Definitely I do see a lot of interoperability that's going to come into play when it comes to dealing with the different sorts of networks that you're going to have to communicate with. Just to add what Tracy said, from Kaleido's point of view, we worked with quite a lot of CBDC projects and from what we've observed, still early days. Both on the retail side and on the wholesale side because until you solve the privacy problem, it's not going to be completely comfortable for the participants to join in the proper way because in the proper decentralized system you want decentralized ownership, right? It shouldn't be that a CBDC DLT is owned by a single organization that defeats the purpose, but if you want multiple orgs to join, you have to solve privacy properly and that's going to be a very big challenge. There are some projects that specifically focus on this. I think Ubin was one of them trying to use zero knowledge proof to solve privacy in a cross-border payment scenario. So there's a lot of lesson learned from that and then there's still mass adoption in the near future, hopefully. But it's a very active area where blockchain is being used. I think we'll see standards being developed. We'll probably see new projects coming into Hyperledger that are implementing those standards and so I think there'll be a lot of interesting things happening in that space. Thank you for the question. I do know that we are at time. I think 11.55 was when we were supposed to end. So thank you for attending. We'll be there if you want to chat more.