Blockchain: Applications for Registries? · 6/7/2016 · Mehmet Munur, Partner, Tsibouris &...
Transcript of Blockchain: Applications for Registries? · 6/7/2016 · Mehmet Munur, Partner, Tsibouris &...
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Julian Lamb, Director, Companies Registry, Jersey
Mehmet Munur, Partner, Tsibouris & Associates, LLC
Gary Walsh, Senior Manager, ERS
Blockchain: Applications for Registries?
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Overview
1. Julian Lamb – Registry, innovation, and Blockchain
2. Gary Walsh – Blockchain and how it works
3. Mehmet Munur – Blockchain and legal challenges
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Registry, Innovation, and Blockchain
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What is Blockchain?
A Blockchain is a distributed, tamper-proof ledger of facts
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Blockchain
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NODE 1
My name is Mehmet Munur
#3456 + #681012 = #9121468
My name is Julian Lamb
#5678 + #1234 #681012
Immutability
My name is Gary Walsh
#1234
NODE 2 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
NODE 3 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
NODE 4 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
NODE 5 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
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Public –v- Private
• Public can be read and modified by anyone
• Private requires special permissions
• Unique challenges
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Blockchain Use Cases
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Smart Contracts
• Pre-written logic
• Stored and replicated on Blockchain
• Executed by network of computers
• Results in ledger update
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Blockchain & Registry
• What is wrong with current model?
– Corruption / Trust
– Speed
– Centralisation
– Cost of operation
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“The pointless Blockchain”
“If trust and robustness aren’t an issue, there’s nothing a blockchain can do that a regular database cannot.”
Dr. Gideon Greenspan, CEO MultiChain
“If your requirements are fulfilled by today’s relational databases, you’d be insane to use a blockchain.”
Dr. Gideon Greenspan, CEO MultiChain
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Honduras
“In the past, Honduras has struggled with land
title fraud. The country’s database was
basically hacked. So bureaucrats could get in
there and they could get themselves beachfront
properties.” Factom President, Peter Kirby
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Honduras
“When the Honduran police came to evict her in 2009, Mariana Izaguirre had lived in her lowly house for three decades. Unlike many of her neighbours, she even had an official title to the land on which it stood. But the records at the country’s Property Institute showed another person registered as its owner, too—and that person convinced a judge to sign an eviction order. By the time the legal confusion was finally sorted out, Ms Izaguirre’s house had been demolished.”
Source: economist.com
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Registry Use Cases • Land titles
• Secured Transactions – Smart Contracts
• Estonia - Register of Wills
• Estonia – Health records
• Australia – Stock Exchange
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Regulation
• Accountability / Responsibility
• Jurisdiction of the transaction
• Smart contracts – Contract law
• Consumer protection
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Challenges - Technical
• Maturity
• Staff expertise
• Replacing existing infrastructure
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Legal Challenges
• Importance of existing legal frameworks
• Identification challenges
• Contractual challenges
• Security challenges
• Privacy challenges
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Bitcoin Lessons
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Existing legal frameworks
Blockchain implementations must comply with existing legal frameworks—whatever they may be.
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Identification Issues
• Identification and fraud issues
• Satisfying regulatory requirements
• Know Your Customer obligations (OFAC, SDN and related)
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Contractual Issues
• Licenses (Open Source or Proprietary)
• Systemic Changes (forks)
• Terms of Use
• Privacy Policies
• Electronic Signatures
• Obtaining Consent
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Security Issues
• Systemic security issues
• Transactional security issues
• Security issues relating to wallets or repositories
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Privacy Issues
• Configuration issues
• Obligations relating to data breaches
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Questions & Answers
Julian Lamb, Director, Companies Registry, Jersey
Mehmet Munur, Partner, Tsibouris & Associates, LLC
Gary Walsh, Senior Manager, ERS