Day 1: Samuel Meyer (Deon Digital)

Transcript

[Music] but now to our initial block of five speakers they're going to be speaking about IOT and shared data first up we've got Sammy Meyer CMO of Dion Digital Sammy hello everybody first of all thanks a lot for having me thanks to Elliott thanks to the Krypto Valley Conference thanks to all of you for taking your time and yeah being here discussing about the future of a very

interesting technology maybe a quick word about me my name you've already heard is Sammy Meyer I'm the chief marketing officer at film digital a young Swiss start up with subsidiaries in Switzerland Germany and Denmark and what we produce is basically a toolset that allows to build applications based on distributed ledger technology in a fundamentally new way why is what I'm going to present relevant for you well we want to make this toolset available to as many people as possible and we truly believe this can be something radically new that you all you all can hopefully employ in the future I'm sure

there has been sufficient coverage about blockchain disputed lecture technology and when talking about this technology I always like to cite the Economist who once said in an article a few years ago it's about as sexy as the double accounting standard that was invented sometimes in the 16th century I'm not precisely sure about the figure however it's a fundamental shift and this fundamental shift has dramatic implications on how people do business together it basically represents a beautiful new internet of transactions meaning it helps us to do transactions in a safe and the central way and thus eliminating intermediaries in a in a

really great way and thus really greatly helping improve productivity however we as a company we're asking ourselves is it now sufficient to have a new layer of distributed ledger technology that brings together the different parties of a business transaction on the same platform or is something more required in order to have them operate and do business together and as the current chart implies well we came to the conclusion yes there is indeed more needed what is actually needed is a common language for people to talk in order to establish setup and execute human agreements contracts or even

processes within a company and that's what our company is about that's what our technology is about which was developed mainly in Copenhagen by a team of Professor Fritz hang line and his team and what we are basically now doing is a technology transfer to bring this to you and hopefully to the world in order to make it usable for people when we got started by being Swiss and being born and raised in in Zurich I travelled extensively during my career but otherwise I was really a madman I'm Swiss I could have bet that our first client would be some sort of financial service institution well you typically cycle by

another day that I had there however we very quickly discovered that there was a large German conglomerate called Daimler that had precisely a problem that we could solve with our technology what Daimler has realized is that the future will be connected mobility and they realize that if they do nothing they will probably become a contributor of Hardware behind some booking platform aggregator let's call it mobility booking.com of the future and they will basically be a price taker and due to that facts basically they discovered that they need to act and the

best way for them to act in order to counter such threats to their business model would be to establish an open consortium of people that build a connected mobility platform together and instead of now talking myself too much I would actually like to have Daimler quickly speak in a corresponding video our world is changing mega cities are rapidly growing up to 53 percent by 2025 by 2030 60 percent of the world's population will live in dense urban areas challenging the way we live commute and travel consumers demands seamless mobility that suits their lifestyle sharing is the new owning

access is the new product hannah is ready to commute to work her mobility contract gives her access to multiple options in the future we expect mobility to be a holistic and connected service based on her needs the right service is chosen Hannah needs to prepare for a meeting so she is taking a pool car an intelligent system controls the car pool based on traffic availability and location an autonomous driverless vehicle enables distraction free working even on the go cars objects and services communicate with one another 30 billion devices will

be connected by 2030 induction technology charges the car on the road on arrival a micro payment is automatically transferred to the car the vision is beautiful but it currently requires a complex network of businesses services and transactions the current state is inefficient and full of friction making it difficult to collaborate the entry barrier for new businesses is high due to legacy issues efforts and costs introducing the mobility operating system an open collaborative standard digital environment created for mobility

services running on the blockchain the model environment is based on a domain-specific language reducing the complexity of developing new applications improving stability through automated tests and validation the API provides easy access to services and smart contracts the API also lowers entry barriers and facilitates collaboration a distributed ledger acts as a safe Authority that enables users to reclaim their data and personalize their offering Hana's car could be charged automatically because a contract agreement was already in place with each new service provider the

complexity grows to create seamless experiences we need to collaborate the future of mobility demands standards and collaboration MOS is the only technology specifically developed for our future mobility we want you to join us to define to design to decide our vision to create an open concert him let's define the future of mobility together so to quickly elaborate how this works in a practical example something that

we're actively now building together with Daimler of maiya and other partners let's quickly compare the old world to the new world how would you build such a system in a traditional IT environment well you would basically more or less have a classical V approach maybe you would say you have an agile project approach but it would ultimately come back to the same you'd basically define top-down what is the functionality that is required you would then at some point write specifications for that functionality basically the use cases of your mobility platform you would have to agree with the lawyers whether those use cases are the right ones you would then talk to the technicians to make it happen if things would be implemented aggregated built and that's what Daimler

actually did however somewhere along the process they started that about 10 years ago somewhere along the process they just got stuck things got too complex why did things get too complex well you see the chart on your left it's just dramatically difficult to combine all these silos into one ecosystem of offerings huh what's the new approach the new world on the right side the new world is imagine you have the distributed ledger platform as a persistence layer basically the data layer one single source of truth on top of that persistence layer you run an operating system which allows all the parties independent of each other to

define contract templates process templates so to say a process template in this context could be SPP putting a train ticket template onto the platform that others can then instantiate and purchase Lufthansa might add its airline ticket as a template that order can go instantiate and therefore by Daimler would put its rental car as a template on the platform so that people can get a rental car and the insurance of maiya would would put a template for a travel insurance to wrap the whole thing on the platform so that people can actually get the travel insurance which is fired by law due to regulatory standards in the European Union what then happens

is when the user comes to the platform it asks for the ticket to go from Zurich to Berlin somewhere in the vicinity and needs a rental car and basically needs this whole ticket not only can he get the itinerary as he could get over Google Maps as well but he would actually be able to get the entire ticket from one platform and not having to login with different providers but basically viable to be platform this contract would be aggregated based on the corresponding templates would be put in a master contract which is basically an aggregated tree of all the sub contracts and that's what he would get back as a ticket for the whole trip how does this work

well basically it starts with realising that we've to distribute the lecture technology if you have a new hardware and is very often a new hardware arrives you soon after see the emergence of logical layers on top of that hardware you've all observed this with your computers you have your Dell HP or think that computer it runs with the Windows operating system abstraction of layer you don't care anymore about the hardware you use the operating system within that operating system you might be using words to write a letter again you don't care about the operating system anymore because you are every Doozer somebody could actually open word for you you will never have to care even about whether whether you Windows system

or Linux system works works properly the same thing happened to phones the same thing happened to Internet and is now happening to distributed lecture technology what we speak about is an operating system to create contract templates that can then be combined with api's to front-ends sensors machines tag scanners anything in the physical world and that allows people to define contract or process templates that can then be executed on the underlying distributed ledger infrastructure so what our company does is it provides the corresponding adapters to the most relevant distributed ledger technology currently by the way we work mostly with

corridor which is not the fully public standard but you but it's only on the on the on the contrary it's it's it's ready to be used it has privacy it has sufficient capacity for transactions and so on and so on and on top of this distributed ledger hardware to which you become agnostic as mentioned before you now have an environment that allows you not only to script processes first a payment then a delivery but also to script reports go to the lecture and check whether a payment was done and if yes then do something and it also allows you to script automated components as an example go to the lecture check whether a payment was done if the payment was

done automatically conduct the corresponding delivery thereafter at the latest possible date because you want to optimize your working capital for example and what you basically have is a technology that allows you to build applications in a more decentralized way and in a much more agile way how does this work in more detail basically our technology and that was the work that was done by Fritz hang line and the team in Copenhagen in a time period of over 10 years is that what they discovered is that the basics of contracts human agreements and processes always evolve

around the same and that can be called deontic logic it actually evolves around obligations permissions and prohibitions you can do something you must do something or you mustn't do something and yes there is boilerplate language yes there is definition of parties and yes there is plenty of other legal stuff but the basics of any human agreement is always always around that it's actually a sequence of such statements and what the team has done it has basically first captured such logic in mathematics because such logic can be represented by mathematical functions and it then went ahead and translated this mathematics

into code and into a language and what results is a technology that allows you to script workflows processes contracts in a language that can be understood by humans because yes you just phrase your obligations permissions prohibitions but it can also be interpreted by the computer who then basically knows what your contract is about what your agreement is about it knows what can happen what it also know what can't happen it basically does what any good contract do does it gives you the boundaries of action it tells you what can happen versus what shall not happen however how we then navigate within

these boundaries is still subject to the user or basically can even be your business secrecy because maybe you don't want to tell people how precisely you do that delivery or when you do it or how you do your production but the contract just specifies you need to deliver up to some date that's our principal distinction between the term smart contract that you all know and are aware of a piece of code that executes and can be seen as a contract and our contracts which we rather call digital contracts again it gives the boundaries but not the execution strategy let's look at the

example and sorry that this is so small I'm aware this is not ideal for large audiences but basically let me quickly read it to you this is out of our interface which allows directly online to script such templates which can then be instantiated and executed directly on a distributed ledger let me take you through the example first you use the language to specify your contractual agreement this is a very simple example but I think it shows what you can do it basically says Alice which is the instantiation of a party one does a payment P where P price is 100 P receiver is party two or in this case Bob and key timestamp is some date and

then this second party in this case Bob does it delivery where the delivery D the item is a bike that he needs to deliver the receiver is Alice and the due date is the original date plus some time lapse that you have agreed in the contract what the technology then does and that's really the secret sauce it is able to translate from the left to the right it basically creates automatically what any good lawyer would do as a first step it creates the tree of all potential future contract states so the system based on only 12 lines of code

which would by the way be roughly five to seven pages of JavaScript if you had to code this the system directly can there derive from these twelve lines which future contract states can happen and which cannot happen because actually only the states that are represented in the tree can actually happen so on the right side left side from your perspective there is all potential situations around the payment and you read the contract tree always from left to right and on the right side you basically have all the potential situations that may arise around the delivery so delivery late delivery incorrect and so on and so on

that is directly derived from 12 lines of natural almost natural language and what then happens is that the system knows and that you see at the bottom the system knows which action needs to happen in the next step it knows I'm now expecting for this given contract that was executed between Alice and Bob I'm now waiting for a payment of 100 and it would reject any other action until this right payment is does happen and when that right payment does happen one part of the tree would fall away and the residual tree would again be saved on the distributed ledger so publish to all relevant parties and all relevant parties would again know what does what

does need to happen next so what you may say but the implications of this are actually quite dramatic if you think it through the point being that you can suddenly implement business logic in a system that is dramatically more connective than traditional siloed architectures due to the distributed ledger architecture you can suddenly write business logic in a way that is far quicker and far more agile than with other than with any other programming

technology you basically don't have to be a technician anymore to do that we have people in our team that never studied IT that have a degree in economics that basically now use our language in order to script applications and all you need to add to these applications is a front-end or some other connected sensors that actually records events into the lecture that then drive forward these corresponding contracts and what you have is a is a far more agile way to program applications that then run on Adi central infrastructure however the infrastructure could actually even be a central one being just the data base in case but it best runs on distributed

ledger infrastructure and so you have matic increase in agility you obviously have a dramatic increase in cost effectiveness because you basically your business can start writing its own application templates that then can very quickly be brought to market and it's ultimately also more secure because since you always know the system is deterministic you always know which potential future states may occur due to the tree and therefore when you test your system you actually no longer have to do test cases and hope that you got the right test cases and hope that there is no case that you did not foresee no the computer can actually go through the tree that I mentioned before and check all potential

situations and then give you a feedback whether this is okay or whether you did forget something or whether there is any contract situation that would actually bring you to bankruptcy in the worst case there is actually a second implication of this that is not even yet on the slide imagine your company being nothing else fundamentally that with some of its contractual agreements so your company has employee contracts your company has provider contracts your company has client contracts financial contracts and so on but it's it's a sum of your contractual agreements every single contractual agreement will in the future be modeled in a tree that I showed you

before which is directly derived from the writing of the corresponding contract what you suddenly have is a system that can actually project them to a simulation of all potential future states of that company very directly no need to build a separate risk system risk model which we all do today when we have a core system and then we need a risk system that is basically a representation a model of your core system which is already a model of reality so to the rivets you will be able to do that directly out of your core system now application a very widespread I talked about the mobility system that we are building

together with Daimler and of Mia but imagine - how many other situations such technology could be relevant we're currently building with a Spanish bank real estate one-stop-shop well you basically go to your bank and you want to get a real estate loan mortgage and not only that you can get that but you can also get directly the registry with the public register you can at the same time procure your gas and electricity for your house and you can even buy other services all over a very similar platform that mentioned before imagine how this can be applied in logistics

commodity trading we're very often today the delivery of good actually takes place sorry the the yeah the delivery of goods takes place before the papering is done and then the ship cannot be unloaded so imagine you bring those parties on the same platform everybody can do his own contract templates and in the execution it's just a matter of aggregating the right contracts together executing them and you basically have your delivery or commodity delivery papering let me go back to my initial promise vice is relevant for you so we currently work mostly with large corporates as mentioned commodity

companies logistics companies financial services companies mobility companies in order to develop our language and to get real-life requirements on the technology however we are fully aware that that won't really scale and that won't really help us to define a new defect to stand around the technology we believe is affect to tend more efficient than any other comparable technology currently out there and we all know ultimately it's about the fact to standards not having the best technology so what we intend to do soon is to open source a large part of our language so that basically you all can start to play around with it partners can start using the technology

to do consulting projects with our technology and so on and so on and I hope I was able to encourage you to follow us to follow this interesting development in technology and please let me know if you have any questions thank you