BLOCKCHAIN...OPEN SOURCE Open-source tool such as Ethereum allows organizations to implement and...
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BLOCKCHAIN How might emerging adoptions of distributed ledgers impact auditors? Biennial Audit Forum 2020, Session 12 July 30, 2020
Transcript of BLOCKCHAIN...OPEN SOURCE Open-source tool such as Ethereum allows organizations to implement and...
BLOCKCHAINHow might emerging adoptions of distributed ledgers impact auditors?
Biennial Audit Forum 2020, Session 12July 30, 2020
Moderator
TAKA ARIGAChief Data Scientist, GAODirector, Innovation Lab
Panelist
CRAIG D. FISCHERSupervisory Program ManagerOffice of Financial Innovation
and TransformationBureau of the Fiscal Service
Panelist
ANDREW SERFASSSenior Data ScientistInnovation Lab, GAO
Panelist
SHARON LEUPolicy Advisor
Office of Higher Education Innovation
Department of Education
P R E S E N T E R S
Distributed Ledgers (Blockchain): State of Technology
How does blockchain work?
Generalized use cases:• Exchanging money• Tracking packages• Smart contracts
Decentralized, no one clearinghouse of
transactions like a bank
Everyone can transparently see
all records
Records are immutable once recorded to the
shared ledger
How does blockchain work?
Source: GAOGAO-19-704SP
Different Types of BlockchainNetworks
A permissionless blockchain is one that anyone can join and participate in (e.g., Bitcoin)• Often public• Decentralized copies of ledgers• Untrusted/anonymous participants
A permissioned blockchain places restrictions on who is allowed to participate in the network, and only in certain transactions (e.g., Hyperledger Fabric). • Can be public or private• Less decentralized (fewer copies of ledger and
permission authority)• Invitation to known participants (trust by verify)
The right type of blockchain for the right business case
OPEN SOURCE
Open-source tool such as Ethereum allows organizations to implement and customize their own distributed ledger network
BAAS
Blockchain-as-a-Service allows businesses to use cloud-based solutions to build, host and use
their own blockchain apps
COTS/PROPRIETARY
Commercially available, proprietary solutions
customized and optimized for specific use cases
State of Blockchain Technology
While the technology continues to evolve, no winner-takes-all like VHS and DVD
Engineering Economic OpportunityDepartment of Education
Maria is enrolled in an after school program focused on algebra. Recent hurricanes have devastated the strawberry crops in her state so there is no longer demand for seasonal farmworkers. Her family faces a difficult
decision about what to do next.
Jonas is an international student who completed his graduate studies last fall. A prospective employer is requesting verification of his USCIS status,
educational attainment, and special qualifying skills.
Olivia has been informed that her college is closing at the end of the term due to financial distress. She is one semester away from completing her
BS in Nursing and RN licensure requirements.
Lifelong Data Silos
Presenter
Presentation Notes
The silos of data about our achievements and abilities creates an inefficiency in the learning and employment pathway. Think of how many times you have called the registrar to send a transcript to prove you have the right academic credentials Search for old pay stubs to verify income To apply for State University, Olivia needed high school diplomas, to get … The inefficiency and slowness of verifying necessary skills, appropriate credentials, or valid licensure is not merely an inconvenience It can mean a barrier to advancement or pursuit of new career for working learners if it is difficult to verify the skills they have obtained at the workplace or it could mean delayed academic progress if prior learning is not credited. In some cases, it can systematically exclude first generation students or those in underserved communities who can’t figure out how to navigate the various requirements of this system It can delay critical services and support and academic progress when information even in one of the vertical stacks is not quickly transferred and validated - Olivia attending multiple high schools or attempting to transfer credits from community college or prior work into State College During this time of economic recovery, where so many individuals need education so they can respond to the changing skills demands, these barriers make the goal of economic stability seem even more unattainable. The Department considers the interoperability of data within and across these silos to be one very important piece of the solution.
Dallas County Community College District
Society of Human Resource Management’s 2016 Human Capital Benchmarking Survey https://www.shrm.org/about-shrm/press-room/press-releases/Pages/Human-Capital-Benchmarking-Report.aspx
Technology of Lifelong Learning and WorkRecords Management● Permanence● Trust and Verification● Portability and Interoperability● W3C Verifiable Credentials Data Model
Digital Identity ● Access and Control● Self-sovereign identity, W3C Decentralized Identifier Specification
Presenter
Presentation Notes
Unique attributes of blockchain
Considerations1. What are technical elements unique to education architecture and
governance that can support mobility, especially for traditionally disadvantaged populations? (Open technology, open standards, interoperability)
2. How can a distributed approach to educational records strengthen our approach to student privacy and data security? How do these policies intersect with technology decisions to protect against misuse or abuse? (Privacy by design, structural bias in technology)
3. How do we promote digital stewardship and empower learners to manage their digital identity and assets? (Digital access, data literacy)
Presenter
Presentation Notes
ResourcesProject Overviewhttps://medium.com/designing-the-future-of-education-and-workforce/education-have-a-problem-put-a-blockchain-on-it-bc2574826752
Introduction to Blockchain for Educatorshttps://www.youtube.com/watch?v=D4MrXvVX9FQ
Research Reporthttps://www.acenet.edu/Documents/ACE-Education-Blockchain-Initiative-Connected-Impact-June2020.pdf
Education Blockchain Initiativehttps://www.acenet.edu/Research-Insights/Pages/Education-Blockchain-Initiative.aspx
Follow along@OfficeofEdTech medium.com/@OfficeofEdTechhttps://usedgov.github.io/blockchain/
Sharon Leu | [email protected]
Proof of Concept using Distributed Ledger Technology for Multi-Tier Grants Payments
L E A D ∙ T R A N S F O R M ∙ D E L I V E RPage 18
Distributed Ledger Technology (DLT) Project Scope and Goals
Recommendations for Optimizing Training Facility UsageProject Goals Project Scope
Assess how blockchain/DLT technology could be used to:
• Increase payment efficiency and transparency for sub-recipient payments
• Reduce prime and sub-recipient reporting for Federal payments that “pass through” multiple parties.
ACM$
PMSHHS
G5DoEd
ACM$NSF
ASAPTreasury
GPRSDoJ
Grant Payment Systems
FDP
L E A D ∙ T R A N S F O R M ∙ D E L I V E RPage 19
Problem: Lack of Visibility into Sub-recipient Grant Payments
Federal Agencies
Multiple Grant Payment Platforms
Prime Recipient
Unknown Sub-Recipients
Current State
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“Tokenizing” a Grant Letter A Grant Letter becomes “tokenized” by extracting, digitizing, and storing specific data elements onto a blockchain token where those data elements are permanently stored and can be transferred
Grant Info: Agency, Payment Type, Award ID, Description
Key Dates: Appropriation Expiration and Award Start, End, and Closeout
Awardee Information: Awardee Name, Principal Investigator (PI)
Award Amount: S&B, Travel, Direct Costs, Indirect Costs, Subgrants
Grant Letter Information and Payment Data are Digitized and Stored on the Token
L E A D ∙ T R A N S F O R M ∙ D E L I V E RPage 21
Improving the Grant Payment Process – Enabling Sub-Recipient Payment Visibility
Federal Agencies
One Grant Payment Platform
Prime Recipient
Known Sub-Recipients
Future State
Federal Agencies
Multiple Grant Payment Platforms
Prime Recipient
Unknown Sub-Recipients
Current State
Questions?
