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Personal Data: Own or Be OwnedWhat You Need to Know About the Future of Digital Innovation and the 4th Industrial
Revolution
Presented by Steven Schwartz
PERSONALDATAWEEK™
2Siena College Presentation Agenda
1. Introduction
4. What’s
Blockchain?
3. We’re in
the 4th
Industrial
Revolution?
2. What do
You Know About
Personal Data?
5. What is the
“Internet of
Things?”6. What
about Cyber
Security?
www.globalcyberconsultants.comwww.cyberfense.com
www.globalcyberconsultants.com
Who isSteven Schwartz
- Graduated Siena in 2011 and Union College’s Graduate School in 2013
- Founder of Global Cyber Consultants – Risk Management & Commercial Insurance Consulting, aligned with Cyber Security Solutions to provide an integrated, transparent, end-to-end solution to cyber security and traditional risk management
- The US Director of CyberFense, a Cyber Risk and Insurance Tech Start-Up launching in Q1 2017
- Insurance Advisor to Agentic Group, one of the largest Blockchain Consortiums with more than 40 member organizations to date and many institutional investors and private funds
- Working with the Keith Institute and am on the Advisory Board for the Personal Data Project and Personal Data Week
www.cyberfense.com
What Do You Know About Your Personal Data?
www.globalcyberconsultants.comwww.cyberfense.com
The Economics of Personal Data
1. All humans have intrinsic value2. Value is like that of energy. It cannot be created not destroyed, but change form3. Monetary value is distributed through ownership4. Your big data is the best way to value your ownership status
When people own their data There will be a tangible record of influence
The value of influence will justify compensation
50% of today’s jobs will be automated in 20 years!
The Personal Data Project is Based on 4 Ideas
How Does the Technology Work?
2nd 3rd 4th 1st
The Four Stages of the Industrial Revolution
Late 18th Century
First mechanical manufacturing equipment
powered by water and steam
1784 = First Mechanical Loom
Early 20th Century
Introduction of mass production through assembly lines and
electricity
1870 = First Assembly Lines at Slaughterhouse
Cincinnati
Early 1970sUse of electronics and computers are used
worldwide to automate manufacturing
1969 = First programmable logic
controller
Today!“Cyber-Physical
Systems:”
Real objects and virtual process that are interlinked, such as the integration of
the: Internet of Things, Blockchain,
Artificial Intelligence and Robotics
www.globalcyberconsultants.comwww.cyberfense.com
What is the Blockchain?
www.globalcyberconsultants.comwww.cyberfense.com
8Hexa Presentation
Blockchain in PracticeThe Status Quo:
• A centralized database with a single point of failure• Financial intermediaries who are needed to validate
transactions, thus slowing them down and charging transaction fees
Certainty as a Service through Decentralization:
• Database decentralization and record keeping disintermediation provides freedom from 3rd parties and complete control over who has access to your data
9Hexa Presentation
Industry Use Case Use case description How Blockchain can be implemented? Benefit of Blockchain
Financial Services
Letter of Credit
A bank handling letters of credit (LOC) wants to offer them to a wider range of clients including startups that are "born Global" but are currently constrained
by the costs involved and the time to execute the transaction.
A common ledger for letters of credit that allows the bank and all counter-parties to have the same validated record of transaction and fulfillment of
conditions.
1. Increased trust2. Increase speed of execution to
<1 day3. Vastly reduced cost
Financial Services
Client Onboarding / Know Your
Client
Client Onboarding is the process by which a market participant determines whether to do business with a counterparty. This is by the detailed
examination of related risks. A key part of Client Onboarding is Know your customer (KYC). KYC is the process used by a business to verify the identity of
their clients.
Blockchain stores the verified digital identity of customers, updated each time KYC checks are re-
run. This could be shared within a group of banks, or eventually within Government run
information hubs.
1. Banks in group have rapid access to validated customer documents.
2. New client accounts can be opened more quickly, leading to quicker deposits and revenue generation & reduced costs of acquisition.
3. Improved customer satisfaction through bureaucracy reduction
Financial Services Trading
PlatformFinancial Services (Trade Financing, P2P Marketplace, Any-to-Any
Marketplace, Consortium networks)
Blockchain based Trading platform not only for private and public equities but also for other
trading of goods and services. These platforms can also embody embedded contracts. Using Blockchain technology, individuals and firms
can produce and exchange financial contracts.
1. Reduced cost of compliance, simplified stack of processes, and easy auditing of transactions.
2. Lower cost of creating contracts and settlements since there are no intermediaries.
10Hexa Presentation
Industry Use Case Use case description How Blockchain can be implemented? Benefit of Blockchain
HealthcareElectronic Medical Records
Electronic Medical records are currently maintained in data centers/cloud like environment and access is limited to Hospital and care provider networks.
Centralization of such makes it vulnerable to security breach and can be expensive.
Patient data can be stored on a blockchain network with multi-signature address for each
EMR. The Owner i.e. the patient can be provided with Private key and a multi-sig address and each
hospital/healthcare provide have their own private key and multi-sig address.
1. Improved visibility to patients on who has access to their data.
2. Cost reduction in the hospital and provider network from massive compliance costs associated with EMR.
InsuranceSmart
Insurance Contracts
Insurance contracts today are cumbersome to read and require lawyers and other intermediaries to be involved for application, enforcement and
regulation.
Contract conditions could be stored as smart contracts on a blockchain network. This smart
contract can be executed automatically based on an event trigger (for example, medical
emergency, flight delays, accidents, etc).
1. Quick and easy settlement with no overhead
2. Highly efficient and automated execution of insurance contracts.
GovernmentSimplified
Tender Process
Government public tenders are subject to many different types of fraud and several layers of oversight is required which adds cost and time in making
decisions.
A blockchain solution would introduce a confidential bid process that is completely
transparent to all parties. Companies would be allowed to submit exactly one encrypted bid
prior to the tender deadline. Once the deadline has been reached, the companies would submit
keys to unlock their bid. The keys could be submitted to the government only in which case
the bids remain confidential, or to all parties.
1. Many types of fraud are prevented as described above.
2. A court can obtain access to the securely submitted bids to enable judgement if the evaluation process was done according to the rules.
3. The entire process can be audited since all transactions are part of the blockchain ledger that cannot be manipulated.
11Hexa Presentation
What is the “Internet of Things?”
CyberSecurity is No Longer an IT Department Issue
But How Much is
this Threat Worth?
Can a Director or Officer be
Liable?
The Threat Landscape is Changing
What Will Cyber Insurance Cover and
When?
“There are those companies that have been hacked, and there are those companies that don’t know that they’ve been hacked” The Annual
Global Cost of Cybercrime is
upwards of $445 Billion –
Center for Strategic and International
Studies (CSIS)Directors owe
Duties of Care and Duty of Oversight.
1. Data Breach and Privacy Mgmt.
2. Media Liability
3. Cyber Extortion
4. Network Security & Business Interruption