Workshop Report at 25/Mar/2016

attendees

• LGCNS: Sean Kim, Baeck Seung Eun, Han Seung Jun
• Konkuk Univ: Nick Lee
• Blocko: Allan Jonghwan Kim, Seok Ho Chul, Kim Won Beom
• ETRI: Phillip Seyoung Huh
• PayGate: Mountie Lee
• Kookmin Bank: Hyugsoon Kwon

workshop purpose

• approaching open standards based on blockchain
• recommend usage guideline of storage including torrent, public/private blockchain, sidechain and CDN
• study and evalue new techs
• initial preparing workshop
• approaching details, prototyping

Perspectives from Blockchain Industry

• https://docs.google.com/presentation/d/17KmamYtO9J4Ae1DMLd9MGtWrjPNaYjGVsTu2Dn4QFuA/edit?usp=sharing
• share basic understanding for blockchain
• Proliferation of blockchain applications
  • various applications are introduced currently
  • blockchain is the key tech for new generation
  • strong industry requirement
• Blockchain-based Applications in Real World
  • many interests
  • but less implementations
  • same experience at the starting stage of PC, Internet
• Case Study: Blockchain-base Auth
  • different implementations by different vendors
  • Blocko suggest a standard compliant with existing PKI utilizing blockchain tech
  • faced numerous problems in adoption
  • Problems
    • Lack of Understanding
      • peoples don’t understand well
      • same experience for new techs
    • Lack of Engineering Standard
      • how data should be represented and stored?
      • which cryptography?
      • how to integrate with existing security subsystems?
      • no goto-toolkit
      • many bitcoin libraries but too many choices
    • Lack of Evaluation/Audit
      • on regulation side, audit is important like CC
      • best-practices are not shared well
  • What to do? we need killer applications
  • Solutions
    • Education
      • need effective education path with organized efforts
      • coffee-break style education is also considerable
    • Standardization of Engineering Assets
      • need standards and recommendations
    • Standardization of Protocols/Specs
      • need basic spec
      • lessoned learn from FIDO
        • FIDO provides specs, education and certification
        • two specs: biometric and two factor auth
        • suggesting architecture, protocol and api
        • doing educational efforts and give certification
        • but FIDO seams commercial oriented
• Benefits from Standarization
  • experts are preparing well with their own spec
  • reduced effort
  • more secure
  • robust implementations
  • more credibility and usability for end users
  • with standard, we can expect many blockchain based applications at near future
• Blocko’s contributions
  • blockchain-based PKI specification
    • https://coinstack.zendesk.com/hc/ko/article_attachments/204746008/Blocko_-_OpenKeyChain.pdf
    • similar to colored coin
    • is it right approach alternating/defining OP codes?
  • SDK

Perspectives from Banking Industry

• R3
  • MS azure, 5 more blockchains are tested. ethereum is tested lastly
  • MS BaaS
    • providing almost free for blockchain industries
    • IBM and MS compete
  • R3 requested too much annual fee over 250,000USD
  • R3 has more interest now non-bank participants
• Cloud Service
  • we have several sensitive issues using cloud services
  • adopting cloud service like MS BaaS in financial industry is currently unavailable in some countries like Korea
  • same issue in EU
• ISO20022
  • ISO20022 is trying to define message and flow of financial institutions
  • Korean banks is refusing ISO20022 standard because of cost and other legacy systems
  • KB Bank has strong interest for blockchain. but not so much interest on ISO20022
• in ethereum, IBAN code is added in spec recently. in address structure

Perspectives from non-Banking Industry

• blockchain tech and capital market (link : https://goo.gl/E4IYMa )
• pros and cons of blockchain
  • pros
    • reduce settlement time between institutions
    • easy document management
    • reduce system risk
    • improve effectiveness of M/O, B/O operation
    • reduce cost of ledger system management
  • cons
    • technical limitation
    • unable to revoke
    • limit of market and regulation
    • different attitudes of institutions
• multiple marketplaces for stock exchange
• experience of stock market and OTC market limitation
  • use OTC marketplace for growth momentum
  • structure of open platform for startup exit
  • issue stock at blockchain as example implementation at 2015
  • issuing stock based on open asset. manage stockholder list via blockchain
  • store evidence of stock exchanging to blockchain for OTC stock
  • trying to use public blockchain. but institutions has more interest for private chain
  • use separated private storage to manage details
  • are the existing players restricting access to private chain from other players? => they don’t think 3rd party players
  • now starting new different private market (confirmed by regulator)
  • researches
    • Australia marketplace focused on settlement only
    • researched nasdaq case : still non-Live status but no detail
    • crowd funding case
      • central repository has role to manage crowd funding investors. conflict with blockchain
  • other types of digital assets can be placed to same model of OTC stock
  • what was the biggest issues : how to post maker value
• smart contract
  • value awareness concept is important
  • how to interface external system which is keeping value with blockchain
• document stamping
  • currently generalized now
• Augur
  • it is illegal in US or other country
  • answer “is futures trading gambling”?
  • we have to recommend minimum guideline to regulator
• blockchain can be base of IoT service

study and evaluate other techs related to blockchain

• including activities
  • digital currency group
  • W3C groups: CryptoLedgers, InterLedger
  • Chinese Groups
    • Chinese Blockchain Miner’s association is not standardizing body
    • they has different color
• Ethereum
  • LGCNS reviewed other techs and activities but picked Ethereum
  • is it really possible to implement IoT service with Ethereum?
• we don’t need to develop totally new standard but improvement by referencing other standards, activities and techs
  • de-facto is actually important

Storage

• Torrent as a storage
  • magnet link of torrent? is this permant? magnet link is hash value
  • we can consider distributed hash table tech. bit-torrent is one of example of implementations
  • consider open source distributed file system
• Public Blockchain
  • any concerns using public-blockchain? ==> not so much reststance
  • store linked-data at blockchain, store main data to CDN or other distributed storage
  • scalability
    • TPS has totally different view between blockchain and financial trans
    • mis-understanding
    • Eris has different approach. changing consensus algorithm will increase scalability
• blockchain 2.0
  • calculate guess value. set guess-limit. no-limit for size

Use Cases

• store non face-to-face evidence in blockchain
• using blockchain as replacement (fully or partially) of CA/RA
• inter-bank communications (payment, balance check…)
• stock(OTC) issue/exchange
• content licensing

ACTION Items

• generalize OpenKeyChain spec
  • prepare english version
  • put on WIKI
  • generaze it
• share knowledge about ISO20022
• develop UseCases
• announce
  • chair will announce for group formation
  • reference : https://goo.gl/Kvycbe

Group Formation

• scope
  • we don’t need to focus on Web only
  • to define scope
    • need to study or take full view of other technologies including ethereum, bitcoin
    • and including more for Eris, Tendermint, Hyperledger, IBM’s OBC-peers
  • try to narrow scope as much as we can
  • bitcoin and ethereum is good starting point
  • Blockchain CG focus on which boundaries? narrow to financial industries or more generalized scope?
  • research use cases more
• chairs
  • nicklee002 (LEE YOUNG HWAN)
  • reserve room for other participant as co-chair
• language
  • do we use bi-lingual communication? or officially using ONE language?
  • English as Main language (unofficially use local languages)
• communication
  • communication channel: irc, mailing list, teleconference, f2f meeting(incl workshop)
  • teleconference
    • tool : hangout
    • date & time : Thursday 4:00 PM KST bi-weekly (next teleconference : 7/Apr/2016 KST)
• F2F meetings
  • 1/Jun/2016 in KR as first F2F meeting
  • at TPAC 2016 at Lisbon
• charter
  • Blocko will edit charter draft