Information governance and blockchain
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This document discusses blockchain technology and its potential uses and challenges. It provides an overview of current blockchain use cases such as supply chain logistics and e-government. It also describes key elements of blockchain like distributed ledgers and digital signatures. While blockchain promises improvements in areas like security, reliability and transparency, there are still challenges around scalability, long-term record keeping requirements, and legal/regulatory issues that need to be addressed for it to reach its full potential. Information governance professionals should help advocate for proper record keeping in blockchain initiatives and work to establish governance policies.
Information governance and blockchain
- 1. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 1 Metataxis Information Governance and lockchain – hype or hero? The Innovation Network, Warwick Business School, July 2018 Noeleen Schenk, Director, Metataxis
- 2. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 2 Blockchain Predictions Source: http://raconteur.net/business/the-future-of-blockchain-in-8-charts Tipping points • Satoshi Nakamoto 2008 coined Bitcoin as a “chain of digital signatures” • World Economic Forum estimates over $1 billion in funding • Wide range of innovations/use cases • All sectors – public, private and not-for- profit • Wide range of industries from financial to FMCG, education and technology
- 3. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 3 Current Use Cases https://www.opendatascience.com/blog/what-is-the-blockchain-and-why-is-it-so-important/
- 4. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 4 • The cost of global trade is estimated at $1.8 trillion annually with potential savings from more efficient process of ~10 percent • The cost and size of the world’s trading ecosystems continues to grow in complexity • IBM and AP Moeller-Maersk A/S have established a joint venture to provide a more efficient and secure method for conducting global trade • A shipping information pipeline - Provide end-to-end supply chain visibility to all involved in a global shipping transaction to securely and seamlessly exchange shipment events in real time • Paperless trade - Digitize and automate paperwork filings for the import and export of goods by enabling end users to securely submit, stamp and approve documents across national and organizational boundaries https://youtu.be/tdhpYQCWnCw Supply Chain Logistics
- 5. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 5 Digital Society and e-Government • X-Road is the backbone of e-Estonia – allowing public and private services to join up • Electronic health records integrating data from different healthcare providers to create a common record
- 6. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 6 How Blockchain Works https://www.pwc.com/us/en/financial-services/fintech/bitcoin-blockchain-cryptocurrency.html
- 7. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 7 • Distributed ledger - A Blockchain is digitally distributed across a number of computers in real time. It is decentralised, and a copy of the entire record is available to all the users and participants of a peer to peer network (this eliminates the need for a central authority) • Decentralised processing network - Blockchain uses many participants in the network to reach consensus – the participants use their computers to authenticate and verify each block • Digital signatures - A Blockchain uses cryptography and digital signatures to prove identity – transactions can be traced back to real-life identities • Programable logic - Blockchain is programmable. Instructions are embedded within blocks to allow transactions or actions to be carried out if certain conditions are met. This helps ensure transactions meet strict criteria • Immutable - A Blockchain has mechanisms to make it hard (but not impossible) to change historical records. Historical records can be read, and new data written. In theory the data that exists in earlier blocks cannot be altered • Auditable - All Blockchain transactions are time stamped Blockchain Elements
- 8. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 8 Requirement Comments Reliable Capable of continuous and regular operation. Decentralised processing network increases potential for reliability, availability and maintaining services, and makes it easier to access and share information. Secure Capable of protection of critical data. The encryption processes enable the protection of critical information. Each block is hashed and added to the previous one. Distributed ledgers enhance the transparency of the record. Encryption and use of cryptographic keys reduces the risk of unauthorised access and data manipulation. Comprehensive Capable of managing all required records. A copy of the entire record is available to all the users giving full visibility of the provenance of the asset/transaction. (debatable considering the cost of processing) Providing an increase in transparency, it increases confidence, improves auditability, increases efficiency by standardising data formats across entities. Systematic Capable to adhere to authorised policies and procedures. Embedded rules to validate and capture new entries. Embedded rules supporting security, access and management of the content. Blockchain as a System of Record-Keeping
- 9. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 9 Requirement Comments Reliability Is this a full an accurate representation? The immutable nature of the information / data capable of demonstrating the provenance make it easier to maintain trusted information. The decentralised consensus further enhances the trust in the content. Authenticity Is the record what it purports to be? The timestamping of the record along with it’s immutability through use of cryptographic tools provide a powerful argument to it’s authenticity. Once a piece of data is added, it cannot be removed. The distributed nature which means a copy of the entire record is available. (This eliminates the need for a central authority.) Integrity Is the record complete and unaltered? The hashed value demonstrates the integrity – as any modification or alteration results in a new hash value. Digital signatures mean that transactions can be traced back to real-life identities. Providing an increase in transparency, it increases confidence, improves auditability, increases efficiency by standardising data formats across entities. Usability Can the data be located, retrieved and presented over time? The metadata should provide the “identifiers” needed to retrieve information. Participants need cryptographic keys to transact and the loss of those could result in the loss of the transactions. Blockchain as an Authoritative Record
- 10. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 10 • Currently high failure rate • “Blockchain is the answer, now what is the question?” • Companies should ask the following questions to determine whether or not blockchain adoption is right for them: • How can my company use blockchain to improve data movement, security and transparency? • How complex is our work/processes - how many players are involved? • Does our work involve a database — or multiple databases? • How many parties will be using / contributing to the database(s)? • Do we have any concerns about the trustworthiness of any parties might access the database(s)? • What type of information, like invoices or employee records, needs to be stored? • How long will you need to store the data? Is deletion likely to be required? • Should proprietary information be public or private? Using Blockchain Solutions
- 11. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 11 • Low awareness of record keeping requirements in the Blockchain community and current use cases • Embedding record keeping theory, principles and practice into Blockchain solutions • Ongoing questions round long term authenticity and availability • Relationship between blocks and other related information • Legal and regulatory implications and current inability to keep up (for example GDPR) • Establishing common infrastructure, governance and management between organisations • Behavioural and process paradigm shifts • Mistakes can be costly • No software code is infallible, but the model does reduce the risk • Scalability and computational power Key Challenges
- 12. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 12 Professional Response • Advocate information and record keeping requirements to Blockchain initiatives • Engage with IT, the Blockchain community and the business • Seek to use information architecture in Blockchain innovations • Increased componentisation of information and data • Support process reengineering to enable business efficiencies using Blockchain • Establish governance policies in blockchain initiatives • Including Blockchain for the critical aspects of the record • Blockchain technology is giving raise to new forms of records which we need to engage with and manage alongside other traditional forms of record Blockchain offers a new form of generation, use, storage, control of records, which we should be contributing to its development
- 13. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 13 Metataxis It’s all about the information
- 14. © Metataxis 2018 Designing the information-centric environment since 2002 Slide 14 Questions? Noeleen.schenk@metataxis.com www.metataxis.com Metataxis