Thursday, September 19, 2019

Re: @RGrottola, DNVGL. Keynote from Shanghai Blockchain International Week

Save us the trouble of translating: posting here since it’s too long for the daily thread.

From Chainnews.com.

Re: @RGrottola, DNVGL

”Norwegian Centennial Enterprise DNV GL Senior Vice President: The real potential of the blockchain is to promote the transition from a linear economy to a circular economy

Chain Express Coupon Logo Logo Chain Express · September 18, 2019 13:12 On September 17, 2019, "2019 Shanghai Blockchain International Week" officially kicked off in Shanghai. This event was hosted by Wanxiang Blockchain Lab to "Blockchain New Economy: New Decade, New Starting Point" As the theme, focus on the industry's ten-year changes and look forward to a new future. The real potential of blockchain technology for society is to promote the shift of the linear economy to the circular economy. Renato Grottola, senior vice president of DNV GL, shared the practical case of the blockchain reshaping the trust industry. Image (50).jpg

The following is the full text of Mr. Renato Grottola's speech.

First of all, I would like to thank the Wanxiang Blockchain Lab for inviting me to participate in the blockchain global summit. This is my second time in Shanghai to participate in the blockchain conference. I would like to share with you the work done by DNV GL on the blockchain. For us, the blockchain is a disruptive technology. First of all, I will first introduce our current work and future plans.

At present, the blockchain has become an important part of our business. Let me introduce myself first. I am the global head of DNV GL digital transformation. My company is not a startup company, an established company founded 155 years ago, a Norwegian company. We are a non-profit foundation, the industry is a third-party credibility industry, and the blockchain is very similar, because the blockchain is a trusted machine. The company has multiple businesses that provide customers with a variety of services to build trust, such as verification, certification, and other businesses, ensuring that there is sufficient trust in the transactions between the customer and the supplier so that the transaction can be successfully executed. When we started to get in touch with the potential technology of the blockchain, a few years ago, we started to study the blockchain in 2015. When we read the relevant articles in the blockchain, we saw that the blockchain would kill all the intermediaries. At that time, I thought we were going to be unemployed, and the industry was going to disappear, so I began to try to analyze this technology and try to understand How to protect yourself.

It quickly became clear that for DNV GL and other companies, this technology will give us many opportunities to create new business value for us. Why? First of all, let me introduce that trust is actually the origin or cornerstone of any type of transaction. In fact, trust is not only important when transferring value between customers and suppliers, but also the execution of any transaction is inseparable from trust. In normal business life, the cost of trust is implicit in the price of products and services, and we have defaulted to the cost of such a trust. Trust has a cost, so there are many services, many business models, and if you have trust, you can be proud of it. But be aware that the cost of trust now is too expensive compared to the price of a single transaction.

The third point I want to talk about is the impact of digitization on trust, which changes the nature of the transaction and therefore the type of trust required to execute the transaction. Give everyone an example, think about the transaction between the machine and the machine or no one. In this kind of transaction, a large number of IoT technologies will bring us 3 trillion transactions per day. The transaction amount per transaction is very small, but the frequency of transactions is very high. There is no cheaper form of trust. Making this type of transaction feasible is economical.

So in this respect the blockchain can really influence or reshape our future. Why? First of all, as a developer, everyone knows about the blockchain far more than me. The blockchain actually transforms the process of trust creation. It has replaced some elements of trust, making the process of trust creation more transparent. , security and decentralization. More dependent on calculations. So far, companies like DNV GL have been acting as intermediaries to provide buyers and sellers with the necessary trust to execute transactions. So the question we are facing now is that we still have the need in the future? Is it necessary to have a technology like blockchain? In society, do we still have status? Does the blockchain solve all the trust problems in any transaction? The answer is, to some extent, to see why.

Because in the digital world, if we talk about value transfer or the transfer of value of a pure asset, there is really no need for intermediation. The blockchain itself can provide all the necessary elements to enable the successful execution of digital asset transactions. In this case, the blockchain is a necessary element of trust, and the trust mechanism provided by the third party is no longer needed to promote The value of digital assets has shifted. But in the real world, when digital transactions involve physical objects, such as products, services, processes, and even people, blockchains are not enough. Because we still need to ensure that the information we use to make decisions, which actually represents the real thing or the service itself. This information is consistent with the facts. This is actually a blockchain that cannot be implemented, so the blockchain is still an essential element of our trust mechanism. If the transaction involves physical objects, the blockchain itself is not enough. When it comes to physical objects, processes, and non-native digital assets, the blockchain technology itself is not enough. This is why we will study this technology in depth. Working with the unique chain of VeChain, I hope to deploy a new concept. Two years ago we had released a new concept, digital certification, which integrates the blockchain with other activities. Other activities are human-based or digital-based, providing all the necessary elements to ensure physical assets or The transaction of the process is new.

Regardless of the relationship between the customer and the supplier, and any stakeholder is trustworthy, including public government departments and so on. As I delve into, at the beginning of this journey, we realized that we must be very cautious when it comes to new business models and new services, because this work is very difficult. So the first implementation we made, this project is our project with Deloitte and the only chain VeChain, which is very important for us. When we perform any confidence-building activities, our ultimate goal is to send a statement, perhaps a certificate of the management system or any other statement. The first thing we did was to turn this statement into a digital asset. So at present our certification declaration is a token, which can be shared and traded between the parties, and is basically an untouchable token. This product is in compliance with regulatory requirements. This statement is on the smart contract. Anyone can verify its authenticity and reliability. If there is a problem with the certificate, we will immediately withdraw the certification statement, so there is no risk of fraud. The solution was released at the end of 2017 and is now fully developed and is driven by the blockchain.

The first project started this year, and we have provided this platform to our customers so that our customers can create and share their own compliance statements. In the near future, it is very important for large-scale promotion. In the near future, digital assets will be placed in digital wallets. We will provide digitally certified wallets to 900,000 customers. We will provide this service at the end of January 2020. We will continue to cooperate with Weigel and Deloitte. of. Yesterday, Mr. Lu said that there are 470,000 active users in the Bitcoin community. By January 2021, we will have 900,000 active users to use this digital wallet. There are digital assets in the wallet, and there are some features that can enter the blockchain. Among the supported ecosystems.

When it comes to the relationship between the blockchain and the supply chain, we often focus on the benefits that the blockchain will bring to the supply chain, for example, it will increase the efficiency of supply activities. For example, if we can trace the traces of the product, such a tracking solution actually proves the value of the blockchain for the supply chain. We are convinced that the true value of promoting blockchain technology far exceeds its value in the traditional blockchain. The real potential of blockchain technology is its ability to create a community and create an ecosystem. This kind of organizational entity can empower new business models, such as shared and circular economy business models, and we are convinced that the future of the blockchain is closely related to any business model based on shared and circular economy. So the benefits of blockchain or the benefits of tokenization are actually very large.

I want to give you a few examples, some of the work we do. Back in the traditional supply chain, we have launched a solution since January 2019, which is available to food and beverage customers. You will see this solution, which basically combines the tracking and tracking of the blockchain characteristics with some business considerations. These business considerations are very important for the company. In the beginning, I talked about trust. In fact, there has been a shift in trust in society. In particular, after 00 and 90, more and more rely on the product itself, rather than relying on the brand. So this program combines our classic verification activities with blockchain to provide real stories to any consumer. It combines the benefits of the blockchain, which is to trust this aspect and all product-related information, to provide it to consumers. If the consumer comes into contact with the product, they can see all the information about the product. This product was launched in Italy and involved three wine manufacturers. One of them is Italy's largest wine producer. Everyone knows that Italy is the world's largest wine producer. The potential market is 2.7 billion bottles a year. This is only in Italy, so this program has been mass-produced and is based on Chain VeChain's blockchain technology is done.

Norwegian Centennial Enterprise DNV GL Senior Vice President: The real potential of the blockchain is to promote the transition from a linear economy to a circular economy

I will spend a few more minutes talking about the future. I just said that the future of the blockchain is closely related to the model of circular economy. Where is our future?

We are convinced that our future is to create an ecosystem that uses blockchains while at the same time stimulating good behavior and leveraging the principles of any circular economy. Minimize negative externalities, such as carbon dioxide emissions. Or another example, there are activities that may increase the share of recyclable products. By using tokenization, we can reach the right platform at the right time by ensuring any type of incentive mechanism. We believe this is a huge opportunity for the blockchain to enable the blockchain to be large-scale. Landing.

Recently in July, we signed an agreement with a small European country, and we worked with the country to create an ecosystem. All citizens will participate in this ecosystem. There are 35,000 people in this small country, and every citizen has their own wallet. If the public has good behavior, they will be motivated, that is, if the citizens use shared travel instead of driving by themselves, they will be rewarded. If they act to reduce carbon dioxide emissions, save energy or save water, they can get rewards. This reward will be placed in the smart contract and will be verified by us, and the citizen will be able to enter the early ecosystem to get established. This token will be accepted by the government as a tax incentive, and citizens can use this reward to shop in the store. This is a very good opportunity for us to try out how this technology can create value for us in a small country. At the same time, we are able to ensure compliance with all existing regulatory requirements.

At the end of the speech, share with us the lessons we have learned.

First, the era of proof of concept is over, so the company has no time to announce projects that are only in the proof of concept phase. Everyone is thinking about this solution, is there a chance to land on a large scale, so the blockchain is not a tool for proof of concept. We need to use the blockchain to really make an impact, rather than using it as an eye-catching propaganda tool. Second, not all blockchains are suitable for us, so it is most important to choose the right blockchain partner to support our business development. Because value is not actually in the technology itself, this value is the perfect integration of technology and business processes, so we must apply the blockchain technology from a business perspective. Based on this, we have cooperated with the unique chain VeChain. Third, the enemy of the massive blockchain landing is not a regulation, but a lack of supervision. If there is no supervision, it will slow down the pace of promoting blockchain technology. If there is no regulation, most companies do not have enough courage to adopt the blockchain, so this is something the government should pay attention to. There is also an enemy in the blockchain. In the community itself, the argument of one coiners and alt coiners (supporting the coin) is actually a debate between Bitcoin and its world, which is a huge obstacle to the large-scale landing of this technology. I think the blockchain community should be consistent and promoted together to promote the large-scale landing of blockchain technology, not just financial technology or transfer payments, so that more companies can truly understand the value of blockchain. . Finally, the real potential of blockchain technology for society is to promote the shift of the linear economy to a circular economy.”


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