Connected Event - Blockchain 3 05 2018
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This document outlines the agenda for the "Connected Event - La blockchain et son impact sur le monde de la finance" event on May 3rd, 2018 in Geneva. The event will consist of two sessions, from 9:00-10:45 and 11:15-14:00, and will feature presentations and experiences from various companies and organizations working with blockchain technology and its impact on finance. The goal of the event is to share experiences, stimulate collaborative projects, and discuss blockchain's role in the financial world. Presenters will discuss political perspectives, academic views, company experiences, and the startup ecosystem.
Connected Event - Blockchain 3 05 2018
- 1. CONNECTED EVENT - La blockchain et son impact sur le monde de la finance - #SconnectE 3 mai 2018 8:30 – 14:00 Auditorium de la FER, Genève 6ème édition
- 3. Stimuler le lancement de projets collaboratifs Partager et échanger sur ses expériences OBJECTIFS
- 4. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 5. CONNECTED EVENT - La blockchain et son impact sur le monde de la finance - #SconnectE 3 mai 2018 8:30 – 14:00 Auditorium de la FER, Genève 6ème édition
- 6. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 7. 7 C4DT Presentation | 2018 Connected Event Geneva, May 3 2018 Blockchains and Digital Trust Prof. Jean-Pierre Hubaux, Academic Director of C4DT
- 9. Transactions 9 Sender Receiver Amount Trans. 1 Alice Bob 10 Francs Trans. 2 Charles Deborah 25 Francs Trans. 3 Deborah Emil 180 Francs Trans. 4 Alice Francis 20 Francs A crucial challenge: prevent double spending!
- 10. Hash N The Blockchain: Immutable Ledger of Transactions 10 Trans. 3 Trans. 2 Trans. 1 Hash 1 Trans. 6 Trans. 5 Trans. 4 Hash 1 Hash 2 Block 1 Block 2 Block N … Trans. K Trans. K-1 Trans. K-2 Hash N-1 Hash: One-way hash function: Unique fingerprint of its inputs
- 11. Decentralization: Replication of the Blockchain 11 … … … … … … The Internet Around 200 Gbytes in the case of Bitcoin Along with the hash values, replication guarantees unforgeability of the blockchain
- 12. Mining Nodes 12 • Validate transactions • Add them to the block they are building • Broadcast the completed block to other nodes All these operations (especially the many, many cryptographic computations) have a huge cost
- 13. 13 2008 : Birth of the Bitcoin • Mankind discovers that a decentralized piece of software can embody a virtual currency • That piece of software is the blockchain • No central bank, no legal person, no regulation
- 14. 14
- 16. ”Decentralization”: Hashrate Distribution among the Largest Mining Pools 16 https://blockchain.info/pools 4 Mining pools can collectively attack the system
- 17. DPPH - January 19th, 2018 17
- 18. 18 60: yearly electricity consumption of Switzerland
- 19. 19 Do You Need a Blockchain? For a more complete version: Do you Need a Blockchain? Morgen E. Peck IEEE Spectrum Special Issue on Blockchains September 2017
- 20. 20 October 2015
- 21. 21
- 22. Center for Digital Trust (C4DT) 22
- 23. Center for Digital Trust (C4DT) 23 • A new initiative of EPFL around data protection, blockchains and cybersecurity • Brings together companies and (EPFL) research labs • Creation announced in December 2017 • Will be operational in the fall of 2018 • Will involve also other academic institutions • 8 organizations associated with the announcement • Several more have expressed interest in the meantime, including GE, FR and VD
- 24. 24 EPFL faculty involved in C4DT Aberer Vaudenay Ebrahimi Süsstrunk Kuncak Larus Hubaux Odersky Troncoso Ford Guerraoui Falsafi Le Boudec FilipovićArgyraki HugonierGrossglaus er Jetchev Candea Salathé Fellay … and more to join Blockchain Cloud computing Cryptography Cyber-physical systems Data mining Decentralized systems Distributed systems and algorithms Finance Genomics Image conceptualization Large-scale systems Machine learning Media Security Network security Personalized health Privacy enhancing technologie Programming languages Reliability and security Risk management Semantic information Software verification West Jaggi Bugnion
- 25. 25 The Digital Trust Platform – Technologies & Applications PRIVACY CRYPTOGRAPHY FINANCE& ECONOMY DIGITAL TRUST OPEN PLATFORM - DTOP BLOCKCHAINS SMART CONTRACTS SOFTWARE VERIFICATION SYSTEM SECURITY HEALTH GOVERNMENT& HUMANITARIAN CRITICAL INFRASTRUCTURES DIGITAL INFORMATION … TRUSTWORTHY DIGITAL PRODUCTS & SERVICES APPLICATION VERTICALS TECHNOLOGY PILLARS
- 26. 26 C4DT – A "virtuous circle" 1) Trusted platform 2) Collaboration hub 3) Knowledge transfer PARTNERS C4DT Needs & Foresight Specialists & Knowledge Data & Infrastructures Funding Foresight & Opportunities Research projects Prototypes Collaborative platform Dr. Olivier Crochat Executive Director
- 27. c4dt.org 27
- 28. Conclusion • Blockchains are useful to build consensus among mutually distrusting stakeholders • Especially appropriate to keep track of (financial) transactions • Tool to reinforce trust • Pitfalls • Technically: energy consumption, performance, miners’ collusion • Cryptocurrencies: Use for tax evasion, money laundering, ransomware, payment for illegal goods and services, funding of terrorism • Emergence of fully anonymous (not just pseudonymous) cryptocurrencies, e.g. Zcash • Tokenization: how do you make sure that the blockchain represents reality? • Temptation to replace institutions by computers • Misunderstanding and hype about blockchains • EPFL’s response to this and related challenges: Center for Digital Trust (C4DT) 28
- 29. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 30. 3 MAY 2018 LAMINE BRAHIMI MANAGING PARTNER TAURUS GROUP Blockchain and its impact on finance Taurus Group SA www. taurusgroup.ch 11 rue d’italie 1204 Geneva Switzerland
- 31. 31 AGENDA 1. SIX-Swiss Fintech Innovations prototype: lessons learned 2. Digital assets: significant opportunity for a Swiss player 3. Base conditions to succeed
- 32. 1. WIDE RANGE OF BLOCKCHAIN APPLICATIONS Source: Grant Thornton; team analysis 4. Internet of Things Blockchain applications 5. Smart contracts 6. Decentralized autonous organization (DAO) Supply chain tracking 3. Industrial applications 2. Financial services applications Process optimization ICOs/ Tokenis ationDigital assets Pay- ments 1. Public sector applications Digital ID e-GOV services Citizen docume nts smart cities 32
- 33. 33 1. SIX-Swiss Fintech Innovations prototype: Objectives and organisation GAIN PRACTICAL EXPERIENCE WITH DLT DOES IT WORK? LEARN FOR FURTHER IMPLEMENTATIONS Project objectives Highly collaborative environment Post-trading world: structured products
- 34. 34 1. SIX-Swiss Fintech Innovations prototype: Structured products settlement SIX production-like test environment Each member with own access Limited investment from banks ✓ ✓ ✓ Carefully prepared test scenarios ✓ Nasdaq DLT technology (permissioned DLT) ✓ • New • Nasdaq provided Existing Existing
- 35. 35 1. SIX-Swiss Fintech Innovations prototype: objectives and set-up GAIN PRACTICAL EXPERIENCE WITH DLT DOES IT WORK? LEARN FOR FURTHER IMPLEMENTATIONS Project objectives ✓ ✓ ✓ Robust understanding YES Extensions planned Comments
- 36. '4 '18 '40 '298 '482 1'773 2'341 3'090 4'078 5'384 - - '0 '6 '142 '503 '664 '877 1'157 1'527 '551 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 XBT ETH 2017 post fly-up prices 36 316 % 43% 1 BTC Less than 0.4% of the total FX market ($5 tn per day) 2. Market expected to increase to CHF 7trn+ trading volumes by 2022 Digital asset market trading volumes Annual trading volumes CHF bn, 2013-2022, base case, only BTC and ETH ETH
- 37. 37 2. Surge in demand 25 m wallets Total number of created wallets Source: blockchain.info; etherscan.io; Team analysis Ether, Daily transactions and unique addresses 12mn addresses x30 since Jan 2017 +120% since Jan 2017
- 38. 38 2. Numerous inefficiencies and anomalies to exploit Multiple opportunities to seize especially for a Swiss player D1. Market anomaly in exchanges market D2. Loosely regulated exchanges D4. Lack of security D3. Very limited investment offering Western-European customers require EU or Swiss counterparties Trade: need proper supervision to increase trust Protect: need banking-standards security levels to safeguard customers assets Invest: need proper investment vehicles to further drive adoption
- 39. 39 2. Time for a swiss institutional-grade player to emerge Building the next generation platform to trade, invest, protect digital assets TRADE INVEST PROTECT
- 40. 3. 5 Base conditions to succeed ACCELERATE PACE OF REFORMS … FINTECH LICENCE ACCELERATE FILE-TREATMENT … BERN OPEN BANK ACCOUNTS … COLLABORATE … AUTHORITIES, PRIVATE SECTOR, ACADEMIA EDUCATE 40
- 41. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 42. La blockchain et son impact sur le monde de la finance L’écosystème des start-ups Antonio Gambardella 3 mai 2018 Avec le soutien de
- 44. Customer Front Office (distribution) Back Office (manufacturing) Processing Infrastructure Investing / Wealth mgt Personal Savings Payments Lending Capital raising Consumer Business UX, digital front end API-driven middle and back office Market infrastructure Independent, UX, digital front end, middle and back office
- 47. Blockc…
- 51. Commochain - Bring Blockchain to Commodity Trading IPStock - Ecosystem for visual digital assets on blockchain Gmelius - Make your inbox instantly smarter and safer Quantum Integrity - Technology to track digital image manipulation Token Estate - Real estate investing on the blockchain Wealth Initiative - Marketplace and automated valuation tool for non-bankable assets
- 53. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 54. Geneva, 03.05.2018 Blockchain as driver for digitization
- 55. Blockchain Maturity Audit & Compliance Security & Privacy Adoption Open source standard. Double blind: blinding between participants Triple blind: Central blind identity broker Central repository of transactions No private data leaves country Specific audit reporting to provide XBRL type reporting. Platform business KPIs in a blind world (how do we bill) solvedFull transparency out of the box Specific functionality to comply with topical regulation (GDPR; EU161) Throughput interrogation and analytics solved Community consortium of industry leaders Brand neutral joint venture If we build it, they will come Node Strategy with separate channels Incentivized adoption Central identity broker No transaction data stored centrally Full secrecy out of the box Obfuscation protocols on top of open standard to achieve privacy Fully dark protocol; no noisy, or malicious state power can get access Tumbling Separate settlement layer Community out reach efffective Interopperability Consensus withstands challenge
- 56. Industry Segments “When the technology becomes available, you have to embrace it.” Nader Naeimi, AMP Capital Investors "The use of this technology will permit fintechs and other financial actors to offer new solutions for exchanging securities, solutions that are faster, cheaper, more transparent and more secure," Finance Minister Bruno Le Maire 1: Trading December 7, 2017 ASX Ltd. will start using blockchain -- to process equity transactions. January 19, 2017 Mercuria introduces blockchain to oil trade with ING, SocGen Digital Asset Holdings technology December 8, 2017 France to allow blockchain for trading unlisted securities Hyperledger November 17, 2017 Over 20 Banks Join Singapore-Hong Kong Blockchain Trade Network November 6, 2017 BP, Shell lead plan for blockchain-based platform for energy trading Undisclosed To be determined To be determined A B C D E 56 Commodities Trade ToolsLive Production Use Cases
- 57. A B “ By using this blockchain-enabled platform, clients are able to benefit from the extended ecosystem that trade finance brings, but with a reduction in friction and cost and an improvement in speed and transparency.” Marilyn Blattner-Hoyle AIG’s head of supply chain and trade finance 1: Logistics October 04, 2017 New collaboration on trade finance platform built on blockchain Batavia, CaixaBank, Commerzbank and Erste Group September, 2016 Barclays and Wave become first to execute global trade using blockchain technology. Wave C October 06, 2017 AIG partners with TradeIX, Standard Chartered for blockchain-enabled trade finance transaction D Hyperledger October 18, 2017 CGI integrates blockchain with conventional trade finance platform Bank of Montreal, Royal Bank of Canada and MUFG October 25, 2017 Hong Kong, Singapore to link up trade finance blockchain platforms Not disclosed Not disclosed Bespoke Ledger 2: Insurance 3: Financing E 57 Trade Finance Industry Segments Live Production Use Cases Tools
- 58. B "It was painfully obvious to me that the blockchain could be used to track objects, and of course one of the largest pain points that runs through the supply chain is provenance," Everledger CEO Leanne Kemp 1: Logistics September 8, 2017 Blockchain at Walmart: Tracking Food from Farm to Fork August 22, 2017 IBM Forges Blockchain Collaboration With Nestlé & Walmart In Global Food Safety C D December 4, 2017 De Beers to invest in blockchain-based diamond platform 58 Industry Segments Live Production Use Cases Tools Hyperledger Hyperledger Hyperledger A August 1, 2015 Everledger Brings Blockchain Tech to Fight Against Diamond Theft Hyperledger Provenance
- 59. B "This is transformational for identity. It makes it easier for me to prove it's me and harder for the 'bad guy' to masquerade as me.“ Greg Wolfond, CEO of SecureKey 1: Logistics November 15, 2017 SecureKey Taps IBM Blockchain for Digital Identity System Launch October 11, 2017 National Bank of Canada joins SecureKey digital identity network C D October 11, 2017 IBM, Hyperledger Join Blockchain Identity Consortium 59 Industry Segments Live Production Use Cases Tools Hyperledger Hyperledger Hyperledger A May 4, 2017 U.S. credit agencies test Canadian blockchain identity network Hyperledger Identity
- 60. B “To send a £1000 through the Barclay's to a non-EEA country, the total will be £1040 + receiver fee, plus £20 they charge for tracking. Plus anadditional £7 fee for paperwork. A trans- Atlantic transaction took almost a week and required the receiver to visit the bank branch to prove his identity. The same payment in BTC with Cryptopay results in 0.0005 BTC (£0.89) fee and would be delivered in an hour or three.” 1: Remittance August 30, 2017 UAE Remittance Giant Taps Ripple Blockchain for Instant International Payments July 31 2017 SBI Reveals Joint Blockchain Remittance Venture With South Korean Startup C D May 25, 2017 Everex Announces Mobile Blockchain-Powered Microfinance and Fiat Transfer Platform 60 Industry Segments Live Production Use Cases Tools Hyperledger Coinplug Ripple A November 23, 2016 Over 100 Migrant Workers Test Blockchain Remittance in Thailand EVEREX / CryptoCash Banking Services
- 61. 61 Counterfeit drug market annually $200 billion Most counterfeit drugs manufactured India or China Internet sales of counterfeit drugs $75 billion Counterfeit drugs in some countries up to 50% Dying people per year in Africa 120,000 Deep Dive – Counterfeit Pharmaceuticals
- 62. 62 Date of Production Commissioning Trucking Leg Factory Truck Port Services Milan, Italy Shipping Vessel Maersk Port Services Abidjan, CI Trucking leg Owner Operated Bus Owner Operated Date of consumption Decommissioning EU Hub National Hub Commissioning Requires Authentication Verification & Decommissioning Requires Authentication No blockchain, no distributed ledger Optional Pharma Serialization, EMVO – Counterfeit Pharmaceuticals Mandatory Mandatory
- 63. Why Blockchain – Counterfeit Pharmaceuticals 63 Incentivizing desired behaviour The smart contract execution and crypto currency aspects of the blockchain can be used to steer behaviours through loyalty Immutable Trust Proof of identity, and business identity, as well as the ability to quickly add new members to the supply chain would not be possible with legacy architecture Tracking & Feedback The smart contract execution allows for a full visibility at every stage of the product supply chain Three Key Advantages of Distributed Architecture for Serialization Legacy architecture for the same build becomes cost prohibitive due to security and authorizations Increases trust and differentiates the manufacturer Incentivizing the adoption of the membership in clear fungible currency.
- 64. 64 Deep Dive – Currency Remittance
- 65. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 66. TRADING DES CRYPTO-MONNAIES LA FIN DU FAR-WEST
- 67. Exchanges • 10’500 • Plus grand? ❖ Binance • Volume Trading journalier? ❖ $3 Milliards • Profit (Q1) 2018 ❖ $200 millions • Deutsche Bank ❖ $146M ❖ 100.000 employés • Binance ❖ 200 Employés Source: CoinMarketCap.com – 30.04.2018
- 68. HACKING
- 69. Mt Gox 2010 à 2014 70% 850.000 BTC $450 Millions / $8 Milliards
- 70. La liste est longue… • Bitfloor ❖ 2012 ❖ 2400 BTC • Poloniex ❖ 2014 ❖ 12% • Bitstamp ❖ 2015 ❖ 19’000 BTC • Bitfinex ❖ 2016 ❖ 120.000 BTC
- 71. Sécurité?
- 72. POURQUOI?
- 73. RÉGULATION
- 74. Des règles à respecter • Sécurité • Identification des clients (KYC) • Loi sur le Blanchiment d’Argent (LBA/AML) • Protection des données (GDPR)
- 75. Europe’s Premier Digital Asset Exchange Centralisés Décentralisés
- 76. 9:00 – 10:45 11:15 – 14:00 • Partage d’expérience Daniel Haudenschild, Swisscom • Partage d’expérience Emilie Raffo, Torus Solutions • Guide ICO Vincent Pignon, Canton de Genève • Conclusion • Apéritif dînatoire - réseautage • Introduction, Olivier Sandoz • L’impulsion politique Pierre Maudet, Canton de Genève • La perspective académique Jean-Pierre Hubaux, EPFL • Partage d’expérience Lamine Brahimi, Taurus Group • L'écosystème start-up Antonio Gambardella, Fongit
- 77. Page 77 Guide pratique : Initial Coin Offerings (ICOs) dans le canton de Genève Genève, le 03.05.2018 Département de la sécurité et de l’économie (DSE) Direction générale du développement économique, de la recherche et de l'innovation
- 78. Page 78 Sommaire 1. Introduction 2. Guide de l’Etat de Genève 1. Traitement fiscal 2. Qualification 3. Annuaire
- 79. Page 79 2017 : La Suisse en tête des ICOs
- 80. Page 80 Janvier 2018 : «nation crypto» Le ministre suisse de l'économie Johann Schneider- Ammann déclare lors d'une conférence que la Suisse veut être la "nation crypto".
- 81. Page 81 Février 2018 : Guide de la FINMA La FINMA publie un guide pratique sur les ICO qui identifie 3 catégories de jetons : paiement, utilité et investissement.
- 82. Page 82 Mars 2018 : Blockchain taskforce La blockchain taskforce composée d’un groupe d'environ 50 personnalités de la politique, de l'économie et de la science remet ses recommandations.
- 83. Page 83 Mai 2018 : Guide de l’Etat de Genève L’Etat de Genève publie son guide pratique pour faire une ICO.
- 84. Page 84 Sommaire 1. Introduction 2. Guide de l’Etat de Genève 1. Traitement fiscal 2. Qualification 3. Annuaire
- 85. Page 85 Position de l’AFCGE • A l’heure actuelle, les ressources financières reçues en échange de tokens émis sont constitutives d’un produit imposable, quel que soit la nature du jetons. • Dans la mesure ou il existe un engagement formel à allouer les ressources financières à la R&D, une provision est admise selon une durée à déterminée. • Les jetons d’investissement ou hybrides devront faire l’objet d’une analyse spécifique en amont. • Un ruling fiscal liant juridiquement l’AFCGE et la société émettrice peut-être obtenu : www.ge.ch/ruling
- 86. Page 86 Sommaire 1. Introduction 2. Guide de l’Etat de Genève 1. Traitement fiscal 2. Qualification 3. Annuaire
- 87. Page 87 Grille de qualification 1. L’équipe et son écosystème 2. Les aspects technologiques 3. Le concept et le business plan 4. Les aspects juridiques 5. Le processus d’onboarding 6. La stratégie marketing et relations publiques 7. Le calendrier
- 88. Page 88 Procédure de qualification 1. Demandes par email : dgderi@etat.ge.ch 2. Qualification avec : – Accompagnement pour l’implantation à Genève – Mises en relations éventuelles avec les acteurs de l’écosystème genevois – Possibilité de qualification par un comité d’experts publics et privés L’Etat de Genève ne traite les demandes que sous l’angle du développement économique et n’émet aucun avis sur les ICO. Les acteurs du marché sont les seuls responsables de l’évaluation et du respect des lois.
- 89. Page 89 Sommaire 1. Introduction 2. Guide de l’Etat de Genève 1. Traitement fiscal 2. Qualification 3. Annuaire
- 90. Page 90 Annuaire de l’écosystème genevois 1. Banques 2. Avocats 3. Compliance 4. Technologie 5. Marketing et relations publiques 6. Académiques 7. Incubateurs Pour être référencé : dgderi@etat.ge.ch
- 91. Page 91 Q&A Vincent Pignon Vincent.pignon@etat.ge.ch Département de la sécurité et de l’économie (DSE) Direction générale du développement économique, de la recherche et de l'innovation
- 92. CONNECTED EVENT - La blockchain et son impact sur le monde de la finance - #SconnectE 3 mai 2018 8:30 – 14:00 Auditorium de la FER, Genève 6ème édition