1 00:00:00,179 --> 00:00:01,949 we need to get together we need to work 2 00:00:01,949 --> 00:00:03,689 together we need to be challenged and we 3 00:00:03,689 --> 00:00:05,310 need to basically figure out what this 4 00:00:05,310 --> 00:00:06,870 whole block train is doing and how we 5 00:00:06,870 --> 00:00:08,760 can use it to innovate the big companies 6 00:00:08,760 --> 00:00:11,219 and work together with the startups and 7 00:00:11,219 --> 00:00:13,889 that's going to happen now but what are 8 00:00:13,889 --> 00:00:16,049 we going to do with it what are we going 9 00:00:16,049 --> 00:00:17,279 to do with this blockchain with all 10 00:00:17,279 --> 00:00:19,140 these different perspective and it all 11 00:00:19,140 --> 00:00:24,390 starts with one thing with trust and on 12 00:00:24,390 --> 00:00:26,460 the other side identity you know 13 00:00:26,460 --> 00:00:27,960 blockchain is trust but they only have 14 00:00:27,960 --> 00:00:30,510 what is going on with identity how can 15 00:00:30,510 --> 00:00:32,460 we make sure that all these regulations 16 00:00:32,460 --> 00:00:34,290 because she didn't get us from the hooks 17 00:00:34,290 --> 00:00:36,239 he didn't say okay everything is allowed 18 00:00:36,239 --> 00:00:39,899 no we want privacy we want monitoring 19 00:00:39,899 --> 00:00:41,309 money-laundering we need to protect it 20 00:00:41,309 --> 00:00:43,110 to everything all the normal rules apply 21 00:00:43,110 --> 00:00:45,000 to the blockchain and how can we 22 00:00:45,000 --> 00:00:47,370 basically do business in the secure way 23 00:00:47,370 --> 00:00:50,190 and also deal with identity and I'm 24 00:00:50,190 --> 00:00:51,840 happy very happy to report that that 25 00:00:51,840 --> 00:00:55,199 very issue we have mr. identity Europe 26 00:00:55,199 --> 00:00:57,300 here in the room David birch who's 27 00:00:57,300 --> 00:00:58,949 basically written two old books about it 28 00:00:58,949 --> 00:01:00,930 and he's basically going to think about 29 00:01:00,930 --> 00:01:03,329 it and he's going to talk about it how 30 00:01:03,329 --> 00:01:04,799 we're gonna do that so give him a big 31 00:01:04,799 --> 00:01:09,740 hand the body phone speaker David birch 32 00:01:18,579 --> 00:01:23,429 right is there a thing for their slides 33 00:01:23,429 --> 00:01:26,229 yes Merrill can I give that to you 34 00:01:26,229 --> 00:01:29,289 did you have that oh there we go thank 35 00:01:29,289 --> 00:01:31,270 you okay 36 00:01:31,270 --> 00:01:33,759 yes so what I'm going to talk about this 37 00:01:33,759 --> 00:01:38,140 morning is is much more specifically so 38 00:01:38,140 --> 00:01:41,740 last year this was a great event and I 39 00:01:41,740 --> 00:01:43,479 remember sort of talking at a very high 40 00:01:43,479 --> 00:01:47,470 level as many people did and I thought 41 00:01:47,470 --> 00:01:49,420 this year it would be good to sort of 42 00:01:49,420 --> 00:01:52,380 focus down on more specific topics and 43 00:01:52,380 --> 00:01:55,630 one of the most interesting topics I 44 00:01:55,630 --> 00:02:00,819 think is identity I was at consensus in 45 00:02:00,819 --> 00:02:04,030 New York actually I was going to say was 46 00:02:04,030 --> 00:02:05,799 anybody else a consensus but I can't see 47 00:02:05,799 --> 00:02:07,689 anything because of the lights I've lit 48 00:02:07,689 --> 00:02:08,979 I have no idea if there's an audience 49 00:02:08,979 --> 00:02:11,530 left in the room at all so I won't i 50 00:02:11,530 --> 00:02:13,930 won't say that but the point is I was at 51 00:02:13,930 --> 00:02:15,250 consensus and one of the key topics 52 00:02:15,250 --> 00:02:18,010 which kept coming up again and again was 53 00:02:18,010 --> 00:02:22,319 this issue of identity and in particular 54 00:02:22,319 --> 00:02:24,280 and there and there have been some 55 00:02:24,280 --> 00:02:26,410 subsequent conferences and discussions 56 00:02:26,410 --> 00:02:29,260 about whether you know putting identity 57 00:02:29,260 --> 00:02:31,389 on the blockchain is a good thing or not 58 00:02:31,389 --> 00:02:34,420 and how we're going to do it and I have 59 00:02:34,420 --> 00:02:36,010 anybody that follows me on Twitter will 60 00:02:36,010 --> 00:02:37,690 see I've got into some arguments with 61 00:02:37,690 --> 00:02:39,489 people about this recently over the last 62 00:02:39,489 --> 00:02:43,959 few weeks because the the reader should 63 00:02:43,959 --> 00:02:48,660 we put identity on the blockchain has to 64 00:02:48,660 --> 00:02:50,950 there are two issues that need to be 65 00:02:50,950 --> 00:02:54,069 discussed within that so one is what is 66 00:02:54,069 --> 00:02:55,930 identity and the other one is what is a 67 00:02:55,930 --> 00:02:58,000 blockchain so once we've got those two 68 00:02:58,000 --> 00:03:00,669 things sorted out then I think we can 69 00:03:00,669 --> 00:03:03,609 move the discussion forward so so I'm 70 00:03:03,609 --> 00:03:04,750 going to try and cover both of those 71 00:03:04,750 --> 00:03:08,019 today which I think would be and I 72 00:03:08,019 --> 00:03:11,079 should say I'm I am genuinely curious 73 00:03:11,079 --> 00:03:12,880 because I know nobody knows the answer 74 00:03:12,880 --> 00:03:15,609 to what how exactly when and do this I 75 00:03:15,609 --> 00:03:18,340 am genuinely curious as to what you 76 00:03:18,340 --> 00:03:20,500 think about the model that I'm going to 77 00:03:20,500 --> 00:03:22,480 present and I genuinely welcome the 78 00:03:22,480 --> 00:03:24,280 feedback on it 79 00:03:24,280 --> 00:03:28,990 so so please post on Twitter what you 80 00:03:28,990 --> 00:03:31,120 think so I'm going to do it in three 81 00:03:31,120 --> 00:03:36,190 parts I'm going to talk about a model of 82 00:03:36,190 --> 00:03:37,720 identity and in particular model of 83 00:03:37,720 --> 00:03:39,910 digital identity because I think it's 84 00:03:39,910 --> 00:03:41,530 impossible to take the discussion 85 00:03:41,530 --> 00:03:44,200 forward unless everybody in the room has 86 00:03:44,200 --> 00:03:46,270 some shared understanding of what of 87 00:03:46,270 --> 00:03:49,870 what I mean by identity so I know your 88 00:03:49,870 --> 00:03:52,750 heart sinks mine does whenever the 89 00:03:52,750 --> 00:03:54,970 present wherever the presenter says now 90 00:03:54,970 --> 00:03:57,610 what is identity I know I know what a 91 00:03:57,610 --> 00:03:59,230 horrible thing but we can't have any 92 00:03:59,230 --> 00:04:01,150 discussion unless you understand what I 93 00:04:01,150 --> 00:04:03,489 mean by identity so we're going to have 94 00:04:03,489 --> 00:04:06,100 a little model of identity I'm going to 95 00:04:06,100 --> 00:04:08,260 talk about why some form of shared 96 00:04:08,260 --> 00:04:10,630 ledger for identity transactions might 97 00:04:10,630 --> 00:04:13,810 work and I particularly want to frame 98 00:04:13,810 --> 00:04:17,200 the discussion in that context and then 99 00:04:17,200 --> 00:04:19,450 I'm going to I'm going to look at a 100 00:04:19,450 --> 00:04:21,970 practical example of how it might of how 101 00:04:21,970 --> 00:04:23,560 it might work so those are my three 102 00:04:23,560 --> 00:04:27,970 areas to cover okay so stage one is to 103 00:04:27,970 --> 00:04:31,720 have a model of digital identity and the 104 00:04:31,720 --> 00:04:35,860 way I formed this model is based on a 105 00:04:35,860 --> 00:04:38,290 couple of a couple of ideas to actually 106 00:04:38,290 --> 00:04:40,740 go back quite a long way to some of the 107 00:04:40,740 --> 00:04:45,220 chapters in this book and I just want to 108 00:04:45,220 --> 00:04:48,100 highlight three points in order so that 109 00:04:48,100 --> 00:04:49,240 you understand where the thinking is 110 00:04:49,240 --> 00:04:52,930 coming from so the first thing is and 111 00:04:52,930 --> 00:04:54,250 you'll have seen this from anything I've 112 00:04:54,250 --> 00:04:56,979 written about this I am a very big fan 113 00:04:56,979 --> 00:04:59,820 of pseudonymity so a pseudonymous 114 00:04:59,820 --> 00:05:02,620 transaction is a transaction where the 115 00:05:02,620 --> 00:05:05,169 counterparties may not know who each 116 00:05:05,169 --> 00:05:07,419 other is but somebody knows who each 117 00:05:07,419 --> 00:05:10,150 other is right so to give the very 118 00:05:10,150 --> 00:05:14,910 simple example so Connie looks me up on 119 00:05:14,910 --> 00:05:18,190 Ashley Madison and when she looks me up 120 00:05:18,190 --> 00:05:20,950 on Ashley Madison and the first thing 121 00:05:20,950 --> 00:05:23,950 she wants to know it was I'm guessing I 122 00:05:23,950 --> 00:05:25,030 don't know the first thing she wants to 123 00:05:25,030 --> 00:05:27,640 know him this is a rhetorical purposes 124 00:05:27,640 --> 00:05:31,000 the first thing the first thing I think 125 00:05:31,000 --> 00:05:33,820 she should want to know is am i a real 126 00:05:33,820 --> 00:05:36,130 person or not right that's a very simple 127 00:05:36,130 --> 00:05:38,070 you do have any idea how 128 00:05:38,070 --> 00:05:39,840 that question is to answer on the 129 00:05:39,840 --> 00:05:42,420 internet right now just thats it is this 130 00:05:42,420 --> 00:05:44,910 a real person or not right so let's 131 00:05:44,910 --> 00:05:47,550 imagine so Connie wants proof that I'm a 132 00:05:47,550 --> 00:05:48,390 real person 133 00:05:48,390 --> 00:05:52,410 so I send her something from Barclays or 134 00:05:52,410 --> 00:05:54,120 ABN or something like that which says 135 00:05:54,120 --> 00:05:56,670 that I'm a real person and she knows who 136 00:05:56,670 --> 00:05:58,950 ABN are and she could trust ABN she 137 00:05:58,950 --> 00:06:01,410 doesn't know who I am but she knows that 138 00:06:01,410 --> 00:06:03,360 somebody knows who I am that's what I 139 00:06:03,360 --> 00:06:04,920 mean by pseudonymous so my first 140 00:06:04,920 --> 00:06:07,560 principle is the online interaction 141 00:06:07,560 --> 00:06:09,200 should be pseudonymous it's a 142 00:06:09,200 --> 00:06:12,630 fundamental if we're going to have any 143 00:06:12,630 --> 00:06:15,900 kind of privacy or manageable existence 144 00:06:15,900 --> 00:06:18,330 in the online environment we must have 145 00:06:18,330 --> 00:06:21,180 pseudonymity to any of those people who 146 00:06:21,180 --> 00:06:22,650 are talking about we must have internet 147 00:06:22,650 --> 00:06:24,720 driving licenses and whatever they're 148 00:06:24,720 --> 00:06:26,490 absolutely insane they don't know what 149 00:06:26,490 --> 00:06:29,460 they're talking about the second point 150 00:06:29,460 --> 00:06:34,080 is that these pseudonymous identities 151 00:06:34,080 --> 00:06:36,000 which will be the virtual identities 152 00:06:36,000 --> 00:06:37,680 that we interact with in cyberspace are 153 00:06:37,680 --> 00:06:39,990 very easy to link to digital identities 154 00:06:39,990 --> 00:06:43,050 so we can have lots of them depending on 155 00:06:43,050 --> 00:06:45,330 what a digital identity is of course so 156 00:06:45,330 --> 00:06:47,670 the idea that we interact online but we 157 00:06:47,670 --> 00:06:49,110 interact online through lots of 158 00:06:49,110 --> 00:06:51,660 identities for specific purposes is a 159 00:06:51,660 --> 00:06:55,890 very important part of my model and the 160 00:06:55,890 --> 00:06:57,600 third part is that we want people to 161 00:06:57,600 --> 00:07:02,070 have lots of these identities now so 162 00:07:02,070 --> 00:07:04,560 when I'm interacting with you whether I 163 00:07:04,560 --> 00:07:09,060 choose my ABN identity or my football 164 00:07:09,060 --> 00:07:11,190 club identity or my hobby identity or my 165 00:07:11,190 --> 00:07:13,500 home ident or my family identity or 166 00:07:13,500 --> 00:07:15,870 whatever I expect people to have a whole 167 00:07:15,870 --> 00:07:17,460 bunch of identities just like they have 168 00:07:17,460 --> 00:07:18,810 a whole bunch of credit cards or debit 169 00:07:18,810 --> 00:07:20,670 cards right now and it's an important 170 00:07:20,670 --> 00:07:22,710 thing so we want to get away from the 171 00:07:22,710 --> 00:07:25,950 idea that you have an identity and 172 00:07:25,950 --> 00:07:28,200 somehow this identity has to be used in 173 00:07:28,200 --> 00:07:30,840 all circumstances otherwise we can't 174 00:07:30,840 --> 00:07:32,430 have any kind of legal certainty that's 175 00:07:32,430 --> 00:07:34,350 just plain wrong so these are sort of my 176 00:07:34,350 --> 00:07:38,730 basic principles now in order to in 177 00:07:38,730 --> 00:07:41,610 order to sort of just realize why it's 178 00:07:41,610 --> 00:07:46,140 called truths so so the argument against 179 00:07:46,140 --> 00:07:47,700 all this people say well if you let 180 00:07:47,700 --> 00:07:49,770 people have pseudonymous virtual 181 00:07:49,770 --> 00:07:51,720 identities then you have the problem of 182 00:07:51,720 --> 00:07:52,230 troll 183 00:07:52,230 --> 00:07:54,060 right because people are anonymous on 184 00:07:54,060 --> 00:07:55,560 the internet and they say horrible 185 00:07:55,560 --> 00:07:57,000 things to each other and all all this 186 00:07:57,000 --> 00:07:58,680 kind of thing right it was total prom 187 00:07:58,680 --> 00:08:01,110 trials and my point is that's not true 188 00:08:01,110 --> 00:08:02,610 that depends on how you implement things 189 00:08:02,610 --> 00:08:05,430 so if you implement things properly with 190 00:08:05,430 --> 00:08:07,230 a secure infrastructure there's no 191 00:08:07,230 --> 00:08:08,790 reason why people cannot interact 192 00:08:08,790 --> 00:08:10,860 pseudonymous ly and you don't have to 193 00:08:10,860 --> 00:08:12,480 have trolls on historical stuff and I 194 00:08:12,480 --> 00:08:16,320 won't talk about that today okay so so 195 00:08:16,320 --> 00:08:20,610 here's the model I'm going to use then 196 00:08:20,610 --> 00:08:22,440 the reason the model looks like this is 197 00:08:22,440 --> 00:08:25,470 because my assumption that people will 198 00:08:25,470 --> 00:08:28,050 have lots of virtual identities right so 199 00:08:28,050 --> 00:08:29,250 on the left-hand side you got lots of 200 00:08:29,250 --> 00:08:31,530 virtual identities and some of those 201 00:08:31,530 --> 00:08:33,630 identities are controlled by more than 202 00:08:33,630 --> 00:08:36,840 one mundane our real identity on the 203 00:08:36,840 --> 00:08:39,240 right hand side okay and argue a simple 204 00:08:39,240 --> 00:08:41,490 example will be the virtual identity of 205 00:08:41,490 --> 00:08:44,280 consult Hyperion the virtual identity of 206 00:08:44,280 --> 00:08:46,230 consult a period isn't controlled by one 207 00:08:46,230 --> 00:08:48,600 mundane identity there are several 208 00:08:48,600 --> 00:08:50,790 executive officers of the company that 209 00:08:50,790 --> 00:08:52,170 can do things with that virtual identity 210 00:08:52,170 --> 00:08:54,180 so there's no one-to-one mapping between 211 00:08:54,180 --> 00:08:56,130 virtual identities and mundane 212 00:08:56,130 --> 00:08:58,620 identities right so you have many 213 00:08:58,620 --> 00:09:00,840 virtual identities on one side and many 214 00:09:00,840 --> 00:09:02,640 mundane identities on the other side and 215 00:09:02,640 --> 00:09:04,980 if you try to link those together a very 216 00:09:04,980 --> 00:09:07,890 basic rule of systems analysis I know I 217 00:09:07,890 --> 00:09:09,570 know systems analysis isn't fashionable 218 00:09:09,570 --> 00:09:10,050 anymore 219 00:09:10,050 --> 00:09:12,330 I know you're all agile and nobody 220 00:09:12,330 --> 00:09:14,040 bothers with requirement specifications 221 00:09:14,040 --> 00:09:15,930 anymore no one tries to work out what 222 00:09:15,930 --> 00:09:17,070 they're supposed to be doing before that 223 00:09:17,070 --> 00:09:19,920 I know all of this okay but when I was 224 00:09:19,920 --> 00:09:21,780 growing up we used to do a thing called 225 00:09:21,780 --> 00:09:24,630 systems analysis and in systems analysis 226 00:09:24,630 --> 00:09:26,430 one of the iron rules of systems 227 00:09:26,430 --> 00:09:28,590 analysis was you can't have many too 228 00:09:28,590 --> 00:09:30,990 many entity relationships if you have a 229 00:09:30,990 --> 00:09:32,790 many-to-many relationship that means 230 00:09:32,790 --> 00:09:34,080 there's something in the middle you 231 00:09:34,080 --> 00:09:36,330 hadn't thought about and so this is in 232 00:09:36,330 --> 00:09:38,280 this instance I want the many-to-many 233 00:09:38,280 --> 00:09:40,260 where I want many virtual identities 234 00:09:40,260 --> 00:09:42,270 many mundane identities the missing 235 00:09:42,270 --> 00:09:45,030 identity of the missing entity in the 236 00:09:45,030 --> 00:09:48,240 middle that's digital identity so I'm 237 00:09:48,240 --> 00:09:50,760 very sweat when I say digital identity I 238 00:09:50,760 --> 00:09:53,250 mean something very very specific by 239 00:09:53,250 --> 00:09:56,250 digital identity okay so in this model 240 00:09:56,250 --> 00:10:00,090 you have a digital identity which I mean 241 00:10:00,090 --> 00:10:01,560 you can think of it as being a key pair 242 00:10:01,560 --> 00:10:02,940 for sake of argument so think of a 243 00:10:02,940 --> 00:10:05,230 digital identity as a key pair 244 00:10:05,230 --> 00:10:06,520 this is the easy way to think about 245 00:10:06,520 --> 00:10:08,380 things so in the middle of a digital 246 00:10:08,380 --> 00:10:10,150 identity and you might have several 247 00:10:10,150 --> 00:10:12,190 people several mundane identities that 248 00:10:12,190 --> 00:10:13,750 can control that digital identity 249 00:10:13,750 --> 00:10:15,580 several people that have access to that 250 00:10:15,580 --> 00:10:17,950 private key and on the other side the 251 00:10:17,950 --> 00:10:20,080 public key can be used to create a great 252 00:10:20,080 --> 00:10:21,580 many virtual identities or what you 253 00:10:21,580 --> 00:10:22,480 would think of as public key 254 00:10:22,480 --> 00:10:25,540 certificates right so on my right-hand 255 00:10:25,540 --> 00:10:27,850 side here I've made two examples I've 256 00:10:27,850 --> 00:10:31,030 got I've got my digital identity which 257 00:10:31,030 --> 00:10:33,730 is dgw Burch and from that there are two 258 00:10:33,730 --> 00:10:35,650 virtual identities created one from the 259 00:10:35,650 --> 00:10:39,880 BBC and one from ANZ and remember what I 260 00:10:39,880 --> 00:10:41,170 said about the creation of the virtual 261 00:10:41,170 --> 00:10:44,320 identities so taking the public key from 262 00:10:44,320 --> 00:10:46,810 my digital identity and making a virtual 263 00:10:46,810 --> 00:10:48,760 identity from that which is essentially 264 00:10:48,760 --> 00:10:51,100 by signing it with your own private key 265 00:10:51,100 --> 00:10:54,730 so so my BBC identity is my public key 266 00:10:54,730 --> 00:10:57,040 signed by the BBC's private key and 267 00:10:57,040 --> 00:10:58,210 because of the way public key 268 00:10:58,210 --> 00:11:00,130 photography works anybody in this room 269 00:11:00,130 --> 00:11:02,650 can check the BBC public key and so 270 00:11:02,650 --> 00:11:03,940 therefore they can tell that that's a 271 00:11:03,940 --> 00:11:07,630 real virtual identity that's inexpensive 272 00:11:07,630 --> 00:11:09,730 cryptographic operation we can have lots 273 00:11:09,730 --> 00:11:13,660 of those now I don't want to go into it 274 00:11:13,660 --> 00:11:15,010 now but one other point about this of 275 00:11:15,010 --> 00:11:17,140 course is those virtual identities can 276 00:11:17,140 --> 00:11:19,030 say that contain the same public key so 277 00:11:19,030 --> 00:11:21,280 they can be matched so that's why I 278 00:11:21,280 --> 00:11:22,570 don't think people will just have one of 279 00:11:22,570 --> 00:11:25,470 these because you don't want necessarily 280 00:11:25,470 --> 00:11:28,450 your identity to be tracked across the 281 00:11:28,450 --> 00:11:30,400 multiple virtual identities if I have a 282 00:11:30,400 --> 00:11:31,780 virtual identity that I use for 283 00:11:31,780 --> 00:11:34,660 financial services right so it has the 284 00:11:34,660 --> 00:11:36,820 same public key in the virtual identity 285 00:11:36,820 --> 00:11:39,100 from ANZ and Barclays and Credit Suisse 286 00:11:39,100 --> 00:11:41,710 that might be absolutely fine right but 287 00:11:41,710 --> 00:11:43,120 there might be other circumstances where 288 00:11:43,120 --> 00:11:44,860 I don't want them to be tracked I don't 289 00:11:44,860 --> 00:11:46,420 want it to be to be matched across 290 00:11:46,420 --> 00:11:48,010 different virtual identities so 291 00:11:48,010 --> 00:11:48,970 therefore I would have a different 292 00:11:48,970 --> 00:11:53,130 digital identity by a different key pair 293 00:11:53,130 --> 00:11:58,030 now in practical terms those key pair 294 00:11:58,030 --> 00:11:59,980 which are the heart of all of this kind 295 00:11:59,980 --> 00:12:01,810 of thing the ownership of the digital 296 00:12:01,810 --> 00:12:03,400 identity depends on the ownership of a 297 00:12:03,400 --> 00:12:05,050 private key I'm sure you can all see 298 00:12:05,050 --> 00:12:08,020 where this argument is going so the also 299 00:12:08,020 --> 00:12:09,970 in it to do anything with the digital 300 00:12:09,970 --> 00:12:12,430 identity you have to control the private 301 00:12:12,430 --> 00:12:14,110 key and this issue of control of the 302 00:12:14,110 --> 00:12:17,710 private keys is what comes back to or 303 00:12:17,710 --> 00:12:18,819 how are we actually going to 304 00:12:18,819 --> 00:12:21,669 really implement this kind of thing so 305 00:12:21,669 --> 00:12:23,319 um oh sorry 306 00:12:23,319 --> 00:12:27,279 now I've divided the use of these 307 00:12:27,279 --> 00:12:30,999 identities across three domains which is 308 00:12:30,999 --> 00:12:32,769 very familiar to anybody that works in 309 00:12:32,769 --> 00:12:34,569 the identity space so we have an 310 00:12:34,569 --> 00:12:37,470 identification domain right so 311 00:12:37,470 --> 00:12:40,769 identification so in my world 312 00:12:40,769 --> 00:12:43,299 identification means binding the private 313 00:12:43,299 --> 00:12:45,839 key to a mundane identity right 314 00:12:45,839 --> 00:12:48,220 identification means something really 315 00:12:48,220 --> 00:12:50,559 specific to me not a general term so in 316 00:12:50,559 --> 00:12:52,959 the identification domain we need a way 317 00:12:52,959 --> 00:12:54,819 to connect that pub to connect the 318 00:12:54,819 --> 00:12:56,559 private key to something in the real 319 00:12:56,559 --> 00:12:59,579 world that is complicated and expensive 320 00:12:59,579 --> 00:13:01,929 because that's you having to go to the 321 00:13:01,929 --> 00:13:03,729 bank with a passport and driving 322 00:13:03,729 --> 00:13:06,129 licenses and God knows what else so we 323 00:13:06,129 --> 00:13:08,109 want we want to minimize the number of 324 00:13:08,109 --> 00:13:09,369 interactions in the identification 325 00:13:09,369 --> 00:13:11,829 domain because identification domain 326 00:13:11,829 --> 00:13:14,199 complicated and expensive and also by 327 00:13:14,199 --> 00:13:15,819 the way every time you're forced to 328 00:13:15,819 --> 00:13:18,069 reveal your real identity in in the 329 00:13:18,069 --> 00:13:20,350 domain that opens up the potential for 330 00:13:20,350 --> 00:13:22,059 identity theft it's not done properly so 331 00:13:22,059 --> 00:13:24,239 we want to minimize those interactions 332 00:13:24,239 --> 00:13:26,249 in the middle you have the 333 00:13:26,249 --> 00:13:29,079 authentication domain so authentication 334 00:13:29,079 --> 00:13:30,669 means demonstrating that you have 335 00:13:30,669 --> 00:13:33,789 control of the private key so again I'm 336 00:13:33,789 --> 00:13:35,919 not using these words generically I mean 337 00:13:35,919 --> 00:13:37,419 something very specifically by 338 00:13:37,419 --> 00:13:39,669 authentication authentication means 339 00:13:39,669 --> 00:13:41,169 demonstrating that you have control of 340 00:13:41,169 --> 00:13:43,539 the private key and then we have the 341 00:13:43,539 --> 00:13:45,369 authorization domain which is where 342 00:13:45,369 --> 00:13:49,419 stuff gets done okay so we transfer we 343 00:13:49,419 --> 00:13:52,179 transfer our our interactions into this 344 00:13:52,179 --> 00:13:54,489 authorization domain and that means all 345 00:13:54,489 --> 00:13:56,499 of the interactions are between virtual 346 00:13:56,499 --> 00:13:58,569 identities that are allowed to do stuff 347 00:13:58,569 --> 00:14:00,609 so we don't have any more who are you 348 00:14:00,609 --> 00:14:03,429 questions in the authorization domain we 349 00:14:03,429 --> 00:14:05,169 have the what can you do questions are 350 00:14:05,169 --> 00:14:06,669 you allowed to access this bank account 351 00:14:06,669 --> 00:14:08,919 can you open this door can you drive 352 00:14:08,919 --> 00:14:09,429 this car 353 00:14:09,429 --> 00:14:12,279 we don't ask who are you we get that out 354 00:14:12,279 --> 00:14:14,109 of the authorization debate we don't 355 00:14:14,109 --> 00:14:16,809 want to use your identity in 356 00:14:16,809 --> 00:14:21,549 transactions wherever possible so so the 357 00:14:21,549 --> 00:14:23,109 first part of my model is we now have 358 00:14:23,109 --> 00:14:25,989 the real identity the digital identity 359 00:14:25,989 --> 00:14:27,549 the virtual identity the three domains 360 00:14:27,549 --> 00:14:29,889 and they mean something specific I'm not 361 00:14:29,889 --> 00:14:31,270 using them as generic 362 00:14:31,270 --> 00:14:34,000 terms so that's the okay so now we can 363 00:14:34,000 --> 00:14:35,860 move on to we can move on to what we're 364 00:14:35,860 --> 00:14:38,890 going to do with that okay so I don't 365 00:14:38,890 --> 00:14:40,180 want talk about so in the identification 366 00:14:40,180 --> 00:14:42,130 domain yeah it's complicated and 367 00:14:42,130 --> 00:14:44,590 expensive authentication it getting easy 368 00:14:44,590 --> 00:14:46,480 because of mobile phones and Fido and 369 00:14:46,480 --> 00:14:47,680 stuff like that so that's nice and 370 00:14:47,680 --> 00:14:49,300 straightforward and in the authorization 371 00:14:49,300 --> 00:14:52,090 domain the switch to apps and mobile 372 00:14:52,090 --> 00:14:53,980 phones and online or whatever means 373 00:14:53,980 --> 00:14:55,360 these things are actually easy to 374 00:14:55,360 --> 00:14:57,670 implement they really are right because 375 00:14:57,670 --> 00:14:59,080 it's all to do with just moving these 376 00:14:59,080 --> 00:15:00,430 keys and certificates around I always 377 00:15:00,430 --> 00:15:03,160 spend time talking about that okay right 378 00:15:03,160 --> 00:15:06,640 so given that we now have a model of I I 379 00:15:06,640 --> 00:15:07,840 mean you have to agree with it but just 380 00:15:07,840 --> 00:15:09,310 for the sake of argument let's just go 381 00:15:09,310 --> 00:15:09,670 with it 382 00:15:09,670 --> 00:15:12,630 right so I now have a specific model of 383 00:15:12,630 --> 00:15:15,850 identity so the next question is what 384 00:15:15,850 --> 00:15:18,160 are our options for connecting that 385 00:15:18,160 --> 00:15:21,160 model of identity to some form of shared 386 00:15:21,160 --> 00:15:25,360 ledger so here's here's my shared ledger 387 00:15:25,360 --> 00:15:27,580 at the bottom and here's my identities 388 00:15:27,580 --> 00:15:28,990 at the top how are we going to connect 389 00:15:28,990 --> 00:15:32,410 those two things together well the next 390 00:15:32,410 --> 00:15:34,030 part of the model I want to put in front 391 00:15:34,030 --> 00:15:37,150 of you here is that the ledger a ledger 392 00:15:37,150 --> 00:15:41,200 is not a record of things that would be 393 00:15:41,200 --> 00:15:43,570 like a database or something a ledger is 394 00:15:43,570 --> 00:15:47,320 a record of transactions right so if 395 00:15:47,320 --> 00:15:48,640 we're going to store things in the 396 00:15:48,640 --> 00:15:50,080 ledger what we need to store in the 397 00:15:50,080 --> 00:15:53,620 ledger are transactions so what are the 398 00:15:53,620 --> 00:15:56,470 transactions that are associated with 399 00:15:56,470 --> 00:15:58,990 what identity that we're going to store 400 00:15:58,990 --> 00:16:01,420 in the ledger right so to again I want 401 00:16:01,420 --> 00:16:03,610 to get away from generic terms shared 402 00:16:03,610 --> 00:16:06,460 ledger is a record of transactions so 403 00:16:06,460 --> 00:16:08,740 what are the identity transactions that 404 00:16:08,740 --> 00:16:10,540 we're going to store in the ledger well 405 00:16:10,540 --> 00:16:12,580 and from the way I've set it up you can 406 00:16:12,580 --> 00:16:14,410 see there are three kinds of identity 407 00:16:14,410 --> 00:16:16,270 that we could put in the ledger so the 408 00:16:16,270 --> 00:16:18,100 first thing we could do is we could take 409 00:16:18,100 --> 00:16:21,280 the real identities and put them in the 410 00:16:21,280 --> 00:16:24,940 ledger okay so a crud means create read 411 00:16:24,940 --> 00:16:28,320 update delete so it just it doesn't mean 412 00:16:28,320 --> 00:16:33,220 nonsense it means create read update 413 00:16:33,220 --> 00:16:37,000 delete so I could take your real 414 00:16:37,000 --> 00:16:38,950 identity and I could put that in the 415 00:16:38,950 --> 00:16:41,470 blockchain okay and this is the sort of 416 00:16:41,470 --> 00:16:43,480 nonsense that you read about quite a lot 417 00:16:43,480 --> 00:16:45,460 at the moment we can give everybody in 418 00:16:45,460 --> 00:16:45,580 the 419 00:16:45,580 --> 00:16:47,770 world and identity because we can take 420 00:16:47,770 --> 00:16:50,350 their fingerprints face DNA whatever and 421 00:16:50,350 --> 00:16:52,690 put it on the blockchain for no 422 00:16:52,690 --> 00:16:55,000 conceivable reason I could imagine I 423 00:16:55,000 --> 00:16:57,730 can't think of any viable use case which 424 00:16:57,730 --> 00:16:59,290 would make sense to store people's 425 00:16:59,290 --> 00:17:01,900 actual identities on a blockchain 426 00:17:01,900 --> 00:17:03,700 somewhere I mean that just seems to me 427 00:17:03,700 --> 00:17:06,459 to be inviting trouble right with what 428 00:17:06,459 --> 00:17:08,410 we want to keep your real identity 429 00:17:08,410 --> 00:17:11,140 locked up safe away from all of this 430 00:17:11,140 --> 00:17:13,869 kind of thing so the idea of taking your 431 00:17:13,869 --> 00:17:17,319 real identity and putting it on a shared 432 00:17:17,319 --> 00:17:20,010 ledger a blockchain or the blockchain 433 00:17:20,010 --> 00:17:22,599 I'm not sure about that I'm not sure I 434 00:17:22,599 --> 00:17:24,190 can see any real reason for doing that 435 00:17:24,190 --> 00:17:27,970 ok when when Connie and I connect up on 436 00:17:27,970 --> 00:17:30,220 Ashley Madison she's not looking for my 437 00:17:30,220 --> 00:17:32,890 DNA not at first ok what she's looking 438 00:17:32,890 --> 00:17:35,230 for is so connecting to the real 439 00:17:35,230 --> 00:17:37,720 identity doesn't help it because it 440 00:17:37,720 --> 00:17:39,400 doesn't answer the important question 441 00:17:39,400 --> 00:17:44,440 you know also the thing is if you start 442 00:17:44,440 --> 00:17:46,980 putting things like DNA on block chains 443 00:17:46,980 --> 00:17:50,500 then you can start so for example I was 444 00:17:50,500 --> 00:17:51,580 at a conference a couple of weeks ago 445 00:17:51,580 --> 00:17:53,860 and somebody from Department of Homeland 446 00:17:53,860 --> 00:17:56,080 Security was talking about DNA testing 447 00:17:56,080 --> 00:17:57,640 at points of entry not for 448 00:17:57,640 --> 00:18:00,040 identification purposes but familial 449 00:18:00,040 --> 00:18:02,440 matching right so if I turn up at an 450 00:18:02,440 --> 00:18:04,540 airport with a kid and I say yeah this 451 00:18:04,540 --> 00:18:07,180 is my son knit for you whatever they can 452 00:18:07,180 --> 00:18:09,850 take cheap swabs and they can do DNA 453 00:18:09,850 --> 00:18:12,160 testing now and it only takes two hours 454 00:18:12,160 --> 00:18:14,020 which i think is pretty impressive it 455 00:18:14,020 --> 00:18:15,850 takes two hours to get the familial 456 00:18:15,850 --> 00:18:18,220 match like are you related to this kid 457 00:18:18,220 --> 00:18:21,700 and and so it would be fun like if 458 00:18:21,700 --> 00:18:23,950 everyone's DNA was on the blockchain you 459 00:18:23,950 --> 00:18:25,360 know you could run these matches all the 460 00:18:25,360 --> 00:18:27,220 time to find out who was related to her 461 00:18:27,220 --> 00:18:29,230 Bria and that might considerably 462 00:18:29,230 --> 00:18:31,150 increase the Gaiety of the nation that's 463 00:18:31,150 --> 00:18:33,640 all I'm saying it might be I don't think 464 00:18:33,640 --> 00:18:35,500 Neeley will be very happy with it but it 465 00:18:35,500 --> 00:18:36,640 the point is it would be funny wouldn't 466 00:18:36,640 --> 00:18:38,020 it because you know you fill out that 467 00:18:38,020 --> 00:18:40,000 form when you go to America how many 468 00:18:40,000 --> 00:18:41,620 family members are traveling with you 469 00:18:41,620 --> 00:18:43,540 you know 470 00:18:43,540 --> 00:18:46,370 and then you get to the desk and the guy 471 00:18:46,370 --> 00:18:52,160 says guess again you know so so I'm not 472 00:18:52,160 --> 00:18:54,740 sure about putting real identities on 473 00:18:54,740 --> 00:18:56,390 the blockchain it's a possibility but 474 00:18:56,390 --> 00:18:58,910 I'm not sure about them what about 475 00:18:58,910 --> 00:19:00,410 putting digital identities on the 476 00:19:00,410 --> 00:19:02,120 blockchain that's an interesting idea 477 00:19:02,120 --> 00:19:05,330 because remember the key problem that I 478 00:19:05,330 --> 00:19:07,820 alluded to if if this is a good model of 479 00:19:07,820 --> 00:19:08,720 identity 480 00:19:08,720 --> 00:19:11,660 if digital identity is essentially a key 481 00:19:11,660 --> 00:19:14,360 pair at its heart then the problem of 482 00:19:14,360 --> 00:19:16,070 looking after that private key becomes 483 00:19:16,070 --> 00:19:18,740 the key digital identity problem right 484 00:19:18,740 --> 00:19:21,620 so I create the digital identity dgw 485 00:19:21,620 --> 00:19:24,710 burch do I really want the 486 00:19:24,710 --> 00:19:26,480 responsibility of looking after the 487 00:19:26,480 --> 00:19:32,120 private key right now a consensus nobody 488 00:19:32,120 --> 00:19:34,309 liked my idea but my idea was I can take 489 00:19:34,309 --> 00:19:37,070 my private key I can convert it to a QR 490 00:19:37,070 --> 00:19:39,170 code like you saw this morning and then 491 00:19:39,170 --> 00:19:40,850 I can have it tattooed onto my scrotum 492 00:19:40,850 --> 00:19:42,770 and I thought that would be a very 493 00:19:42,770 --> 00:19:45,559 effective way of managing the private 494 00:19:45,559 --> 00:19:47,870 key and making sure that it was yeah 495 00:19:47,870 --> 00:19:52,040 blah r j-- li private right but also so 496 00:19:52,040 --> 00:19:53,960 that I wouldn't forget it because you 497 00:19:53,960 --> 00:19:56,480 know if it's if it's in something I can 498 00:19:56,480 --> 00:19:58,970 forget they move this has got no future 499 00:19:58,970 --> 00:20:01,340 because if you can lose that private key 500 00:20:01,340 --> 00:20:03,290 you absolutely will look why haven't we 501 00:20:03,290 --> 00:20:05,540 Bitcoin with all the people who like 502 00:20:05,540 --> 00:20:06,770 they were worried about big going 503 00:20:06,770 --> 00:20:08,809 schedule so they printed out their their 504 00:20:08,809 --> 00:20:10,340 keys and they put on pieces of paper and 505 00:20:10,340 --> 00:20:12,380 then the dog ate it and that's your 506 00:20:12,380 --> 00:20:14,179 bitcoins gone right we don't want to be 507 00:20:14,179 --> 00:20:16,850 in that sort of world so the problem of 508 00:20:16,850 --> 00:20:18,410 what to do with the private key is a 509 00:20:18,410 --> 00:20:20,240 serious problem okay 510 00:20:20,240 --> 00:20:23,600 and I'm not sure that putting it on the 511 00:20:23,600 --> 00:20:26,210 blockchain solves the problem because if 512 00:20:26,210 --> 00:20:27,470 I put it on the blockchain then the 513 00:20:27,470 --> 00:20:29,120 ownership of the private key that owns 514 00:20:29,120 --> 00:20:31,550 the private key becomes the problem all 515 00:20:31,550 --> 00:20:34,100 I'm doing is moving that problem on one 516 00:20:34,100 --> 00:20:35,809 step I'm not solving the problem in any 517 00:20:35,809 --> 00:20:37,970 way speaking as a member of the general 518 00:20:37,970 --> 00:20:39,500 public and not one of the blockchain 519 00:20:39,500 --> 00:20:41,390 Illuminati that they're in front of me 520 00:20:41,390 --> 00:20:43,070 speaking as a member of the general 521 00:20:43,070 --> 00:20:45,140 public I don't want the responsibility 522 00:20:45,140 --> 00:20:48,860 of managing a private key I don't I want 523 00:20:48,860 --> 00:20:50,990 the private key to be managed by a 524 00:20:50,990 --> 00:20:53,600 regulated financial institution that I 525 00:20:53,600 --> 00:20:55,610 have legal recourse against if something 526 00:20:55,610 --> 00:20:56,750 goes wrong I'd 527 00:20:56,750 --> 00:20:58,910 one the stress of looking after a 528 00:20:58,910 --> 00:20:59,750 private key 529 00:20:59,750 --> 00:21:03,140 I want the bank or somebody else to do 530 00:21:03,140 --> 00:21:05,030 it for me right and have their own 531 00:21:05,030 --> 00:21:06,470 authentication mechanisms for me to 532 00:21:06,470 --> 00:21:08,360 access it so putting the digital 533 00:21:08,360 --> 00:21:11,000 identity on the blockchain that doesn't 534 00:21:11,000 --> 00:21:12,650 feel to me like you're solving a problem 535 00:21:12,650 --> 00:21:14,180 because I've still got the problem 536 00:21:14,180 --> 00:21:16,690 looking out to the other private key so 537 00:21:16,690 --> 00:21:19,520 the third possibility would be what if I 538 00:21:19,520 --> 00:21:22,460 took the virtual identities and put them 539 00:21:22,460 --> 00:21:24,740 on the blockchain now that kind of makes 540 00:21:24,740 --> 00:21:28,490 more sense to me right so I've now got a 541 00:21:28,490 --> 00:21:30,500 virtual identity that comes from ANZ 542 00:21:30,500 --> 00:21:34,520 Bank which says minimal things lit says 543 00:21:34,520 --> 00:21:36,440 basically it says I exist I must have 544 00:21:36,440 --> 00:21:38,480 done right in order to have that virtual 545 00:21:38,480 --> 00:21:40,550 identity I must have gone through kyc 546 00:21:40,550 --> 00:21:44,000 with ANZ so I'm a real person and I have 547 00:21:44,000 --> 00:21:45,470 a bank account that's all it says about 548 00:21:45,470 --> 00:21:47,750 me bit for an awful lot of purposes 549 00:21:47,750 --> 00:21:52,130 that's enough right so now I put that on 550 00:21:52,130 --> 00:21:53,810 the blockchain okay 551 00:21:53,810 --> 00:21:58,220 and when I'm on Ashley Madison Carney 552 00:21:58,220 --> 00:22:00,230 says prove that you're a real person and 553 00:22:00,230 --> 00:22:03,170 I can point to an identity on the 554 00:22:03,170 --> 00:22:05,870 blockchain and say that's me I'm Luke C 555 00:22:05,870 --> 00:22:06,710 I'm a real person 556 00:22:06,710 --> 00:22:09,560 ANZ donor and that could solve some 557 00:22:09,560 --> 00:22:12,080 problems I could see that could work so 558 00:22:12,080 --> 00:22:14,360 if I take the identity transactions that 559 00:22:14,360 --> 00:22:15,830 are associated with that virtual 560 00:22:15,830 --> 00:22:18,500 identity the creation to read the update 561 00:22:18,500 --> 00:22:20,240 the delete of that virtual identity and 562 00:22:20,240 --> 00:22:22,640 I put those on the blockchain now I can 563 00:22:22,640 --> 00:22:25,100 see that we're getting somewhere okay so 564 00:22:25,100 --> 00:22:27,380 now I come to open an account with ABN 565 00:22:27,380 --> 00:22:29,150 ABM want to know if I have an account 566 00:22:29,150 --> 00:22:30,800 with another Bank I point to my account 567 00:22:30,800 --> 00:22:33,800 with ANZ they can just go and look at 568 00:22:33,800 --> 00:22:34,940 the blockchain they'd have to talk to 569 00:22:34,940 --> 00:22:37,700 ANZ because the crud the creation the 570 00:22:37,700 --> 00:22:40,400 reading the update deleting of that it's 571 00:22:40,400 --> 00:22:41,260 all on the blockchain 572 00:22:41,260 --> 00:22:44,330 so now if they want to see for example 573 00:22:44,330 --> 00:22:46,010 does that account still exist or has it 574 00:22:46,010 --> 00:22:47,690 been deleted all they've got to do is 575 00:22:47,690 --> 00:22:49,370 look along the blockchain for that 576 00:22:49,370 --> 00:22:50,930 virtual identity and see if there's a 577 00:22:50,930 --> 00:22:54,670 delete record so it kind of makes sense 578 00:22:54,670 --> 00:22:58,970 to take those identities and put them 579 00:22:58,970 --> 00:23:02,600 onto the blockchain right so we have we 580 00:23:02,600 --> 00:23:06,110 now have the bank looking after my 581 00:23:06,110 --> 00:23:07,790 private keys or associate with digital 582 00:23:07,790 --> 00:23:10,010 identity we have another Bank that's 583 00:23:10,010 --> 00:23:11,390 age of virtual identity that's linked to 584 00:23:11,390 --> 00:23:13,670 that I've put that virtual identity onto 585 00:23:13,670 --> 00:23:16,400 the blockchain but my real identity and 586 00:23:16,400 --> 00:23:18,080 my real digital identity those are 587 00:23:18,080 --> 00:23:20,000 locked away and looked after and taken 588 00:23:20,000 --> 00:23:25,520 care of right you know when I go and 589 00:23:25,520 --> 00:23:27,260 stay in a hotel the first thing I do is 590 00:23:27,260 --> 00:23:29,600 I take my identity I take my passport 591 00:23:29,600 --> 00:23:31,610 and my credit cards and I lock those up 592 00:23:31,610 --> 00:23:33,770 in the hotel safe when I go out for 593 00:23:33,770 --> 00:23:35,450 dinner I just take a prepaid card that 594 00:23:35,450 --> 00:23:36,560 doesn't have my name on it 595 00:23:36,560 --> 00:23:40,220 I keep my identity locked up and for 596 00:23:40,220 --> 00:23:42,050 transactional purposes I use something 597 00:23:42,050 --> 00:23:43,940 else and I think this takes us in that 598 00:23:43,940 --> 00:23:46,730 direction okay so for the final part of 599 00:23:46,730 --> 00:23:50,180 the presentation I want to answer the so 600 00:23:50,180 --> 00:23:54,230 what question so I can store my virtual 601 00:23:54,230 --> 00:23:56,420 identities I can store the crud of my 602 00:23:56,420 --> 00:23:59,960 virtual identities on the blockchain so 603 00:23:59,960 --> 00:24:02,810 what I can store them in a database I 604 00:24:02,810 --> 00:24:05,000 can store them in the bank what are you 605 00:24:05,000 --> 00:24:06,980 guys going to do differently with this 606 00:24:06,980 --> 00:24:09,230 kind of identity that we couldn't do 607 00:24:09,230 --> 00:24:12,050 using other technology and my answer is 608 00:24:12,050 --> 00:24:15,530 this right if you look at my model of 609 00:24:15,530 --> 00:24:18,260 the shared ledger I divide the shared 610 00:24:18,260 --> 00:24:20,780 ledger into two parts we have the 611 00:24:20,780 --> 00:24:22,790 communications the content consensus 612 00:24:22,790 --> 00:24:24,890 that we talked about last year and on 613 00:24:24,890 --> 00:24:26,540 top of that we have the appalling lis 614 00:24:26,540 --> 00:24:29,450 badly mislabeled contract layer right I 615 00:24:29,450 --> 00:24:31,640 hate the word contract they're not 616 00:24:31,640 --> 00:24:33,980 contracts if they were called someone 617 00:24:33,980 --> 00:24:35,210 else we'd never have got into this mess 618 00:24:35,210 --> 00:24:37,700 with a theory i'm in the dao they're not 619 00:24:37,700 --> 00:24:39,620 contracts and they're not smart 620 00:24:39,620 --> 00:24:42,800 contracts is a stupid word for 621 00:24:42,800 --> 00:24:45,380 distributed applications but i've kept 622 00:24:45,380 --> 00:24:47,390 it because it begins with c and so it's 623 00:24:47,390 --> 00:24:50,660 easy it's easier for everybody to 624 00:24:50,660 --> 00:24:51,890 remember the model if they will begin 625 00:24:51,890 --> 00:24:53,210 with C if you're understand one point 626 00:24:53,210 --> 00:24:57,020 now my point is there's a break between 627 00:24:57,020 --> 00:24:59,450 the bottom layers and that top layer 628 00:24:59,450 --> 00:25:01,700 which I call the Bouvier Sam's boundary 629 00:25:01,700 --> 00:25:04,100 so the bottom layer is about the shared 630 00:25:04,100 --> 00:25:06,560 ledger but the top layer is about the 631 00:25:06,560 --> 00:25:07,940 applications we're going to run on the 632 00:25:07,940 --> 00:25:10,070 shared ledger the bottom three layers 633 00:25:10,070 --> 00:25:11,870 are about this new kind of computer that 634 00:25:11,870 --> 00:25:14,570 we've created the consensus computer 635 00:25:14,570 --> 00:25:16,460 that we've built using these 636 00:25:16,460 --> 00:25:17,960 proof-of-work protocols or other 637 00:25:17,960 --> 00:25:20,300 consensus protocols other ways of 638 00:25:20,300 --> 00:25:21,800 managing practical byzantium fault 639 00:25:21,800 --> 00:25:23,720 tolerance what we've effectively 640 00:25:23,720 --> 00:25:26,659 is a new kind of computer the consensus 641 00:25:26,659 --> 00:25:28,760 computer and on that new kind of 642 00:25:28,760 --> 00:25:30,440 computer we can run a new kind of 643 00:25:30,440 --> 00:25:32,120 application the shared ledger 644 00:25:32,120 --> 00:25:35,809 application now my point is that if 645 00:25:35,809 --> 00:25:37,940 we're going to do something really new 646 00:25:37,940 --> 00:25:40,070 and really different in this space we're 647 00:25:40,070 --> 00:25:41,630 going to do it through those 648 00:25:41,630 --> 00:25:44,390 applications those applications are the 649 00:25:44,390 --> 00:25:47,120 new way of doing stuff what does that 650 00:25:47,120 --> 00:25:49,340 mean for my model well I'll give you the 651 00:25:49,340 --> 00:25:53,059 example here's how I'm going to 652 00:25:53,059 --> 00:25:55,370 influence my shared ledger so I've got a 653 00:25:55,370 --> 00:25:57,470 shared ledger of identity transactions 654 00:25:57,470 --> 00:26:00,320 so those entries are the crud that go 655 00:26:00,320 --> 00:26:01,730 with the virtual identity is the 656 00:26:01,730 --> 00:26:04,250 creation update read and delete if the 657 00:26:04,250 --> 00:26:06,020 virtual identities we're actually going 658 00:26:06,020 --> 00:26:08,390 to implement that in a real way we could 659 00:26:08,390 --> 00:26:09,530 implement it in lots of different ways 660 00:26:09,530 --> 00:26:11,270 I'm going to implement it in a 661 00:26:11,270 --> 00:26:12,320 blockchain because that's what the 662 00:26:12,320 --> 00:26:13,100 conference is about 663 00:26:13,100 --> 00:26:16,789 so I map my entries up here down to 664 00:26:16,789 --> 00:26:18,440 entries in a real blockchain this is 665 00:26:18,440 --> 00:26:21,049 exactly how the block stream identity 666 00:26:21,049 --> 00:26:22,429 layer works this is a very good way of 667 00:26:22,429 --> 00:26:24,500 doing it in other words you build 668 00:26:24,500 --> 00:26:27,049 applications that use the shared ledger 669 00:26:27,049 --> 00:26:29,270 for identity the virtual one and then 670 00:26:29,270 --> 00:26:30,530 you have different implementation 671 00:26:30,530 --> 00:26:31,760 choices about how you want to put it 672 00:26:31,760 --> 00:26:34,429 onto real shared ledger technologies or 673 00:26:34,429 --> 00:26:35,030 blockchains 674 00:26:35,030 --> 00:26:42,620 and so here's my point so when you 675 00:26:42,620 --> 00:26:45,650 actually do the create the see when you 676 00:26:45,650 --> 00:26:47,510 create one of these virtual identities 677 00:26:47,510 --> 00:26:49,240 and you put it onto that shared ledger 678 00:26:49,240 --> 00:26:52,159 you're really creating two things you're 679 00:26:52,159 --> 00:26:54,740 creating the ledger entry itself which 680 00:26:54,740 --> 00:26:57,830 contains that virtual identity or an 681 00:26:57,830 --> 00:26:59,150 encrypted version of that virtual 682 00:26:59,150 --> 00:27:02,720 identity and you're creating the smart 683 00:27:02,720 --> 00:27:05,210 contract entry that goes with it okay 684 00:27:05,210 --> 00:27:08,840 and so my suggestion to you the model I 685 00:27:08,840 --> 00:27:11,780 want to leave you with is what if we 686 00:27:11,780 --> 00:27:13,850 built I'm going to use the example of 687 00:27:13,850 --> 00:27:17,110 kyc what if we build our identity 688 00:27:17,110 --> 00:27:21,100 interactions on the basis of this right 689 00:27:21,100 --> 00:27:23,840 not the identities themselves so in 690 00:27:23,840 --> 00:27:26,210 other words if connie wants to know 691 00:27:26,210 --> 00:27:29,659 whether I'm over 18 what really happens 692 00:27:29,659 --> 00:27:31,610 under the hood it may not look like this 693 00:27:31,610 --> 00:27:34,760 in her mobile app but under the hood her 694 00:27:34,760 --> 00:27:37,789 smart contract is sending a transaction 695 00:27:37,789 --> 00:27:40,220 to my smart contract and my smart 696 00:27:40,220 --> 00:27:41,649 contract is responding appropriately 697 00:27:41,649 --> 00:27:44,780 right so there are certain questions 698 00:27:44,780 --> 00:27:47,330 that my smart contract will accept are 699 00:27:47,330 --> 00:27:49,640 you over 18 is one of them and it will 700 00:27:49,640 --> 00:27:51,440 respond back to Connie with a yes or no 701 00:27:51,440 --> 00:27:54,950 and the shared ledger can have access to 702 00:27:54,950 --> 00:27:57,640 on ledger data the virtual identity 703 00:27:57,640 --> 00:27:59,899 itself which might be an encrypted form 704 00:27:59,899 --> 00:28:02,659 or it can have access to off ledger 705 00:28:02,659 --> 00:28:05,330 databases which the smart contract knows 706 00:28:05,330 --> 00:28:07,370 about and can have access to but are not 707 00:28:07,370 --> 00:28:10,100 themselves present on the blockchain so 708 00:28:10,100 --> 00:28:12,289 here's the point of the model what we're 709 00:28:12,289 --> 00:28:14,000 putting on the what we're putting on the 710 00:28:14,000 --> 00:28:16,429 ledger is the crud of the virtual 711 00:28:16,429 --> 00:28:19,039 identities and the way we access them is 712 00:28:19,039 --> 00:28:20,840 through the appalling Lemus named smart 713 00:28:20,840 --> 00:28:25,580 contracts okay right so I want to finish 714 00:28:25,580 --> 00:28:27,409 with a practical example I haven't got 715 00:28:27,409 --> 00:28:31,820 any time for breakfast example I should 716 00:28:31,820 --> 00:28:33,110 have put that picture in MIDI that's 717 00:28:33,110 --> 00:28:34,760 that's a real picture I like using this 718 00:28:34,760 --> 00:28:37,250 picture in security talks that's because 719 00:28:37,250 --> 00:28:40,100 I had a meeting at a bank and in it and 720 00:28:40,100 --> 00:28:41,960 it's a real picture this is a meeting at 721 00:28:41,960 --> 00:28:43,520 a bank and it happened to be on the same 722 00:28:43,520 --> 00:28:46,610 day that there was like a g20 or g8 or 723 00:28:46,610 --> 00:28:50,240 g6 or g9 or something and and there were 724 00:28:50,240 --> 00:28:52,010 protesters out in the streets protesting 725 00:28:52,010 --> 00:28:55,730 about things in general I don't know 726 00:28:55,730 --> 00:28:56,809 what specifically they were protesting 727 00:28:56,809 --> 00:28:58,580 about it was somebody with you and so 728 00:28:58,580 --> 00:29:01,159 the bank sent us an email to say please 729 00:29:01,159 --> 00:29:03,080 don't come to the meeting today wearing 730 00:29:03,080 --> 00:29:05,630 a suit because it will inflame the 731 00:29:05,630 --> 00:29:07,940 protesters right which you could 732 00:29:07,940 --> 00:29:09,409 understand I mean I look pretty good in 733 00:29:09,409 --> 00:29:10,100 a suit 734 00:29:10,100 --> 00:29:12,590 you got to if I was a protest right 735 00:29:12,590 --> 00:29:14,390 being flamed by this wouldn't you it's a 736 00:29:14,390 --> 00:29:15,649 Ralph Lauren of course you're being 737 00:29:15,649 --> 00:29:18,919 cause you'd be upset by it so so I 738 00:29:18,919 --> 00:29:22,580 thought well the way to not inflame the 739 00:29:22,580 --> 00:29:25,520 protesters then would be to go dressed 740 00:29:25,520 --> 00:29:26,750 as a protester I thought this would be 741 00:29:26,750 --> 00:29:28,940 the most sympathetic thing I could do so 742 00:29:28,940 --> 00:29:30,860 I went dressed completely in black from 743 00:29:30,860 --> 00:29:32,390 head to toe I was wearing black gloves 744 00:29:32,390 --> 00:29:34,190 dark glasses black burr I went 745 00:29:34,190 --> 00:29:36,049 completely in black from head to toe and 746 00:29:36,049 --> 00:29:38,539 I walked into the bank and said oh I've 747 00:29:38,539 --> 00:29:41,680 got a ten o'clock with whoever 748 00:29:41,680 --> 00:29:44,170 and they let me in look there's the 749 00:29:44,170 --> 00:29:47,500 visitor's pass they gave me to say so my 750 00:29:47,500 --> 00:29:49,450 point is the reason it that's not the 751 00:29:49,450 --> 00:29:52,240 security that we want like that's not 752 00:29:52,240 --> 00:29:54,460 real security that's pretending it's 753 00:29:54,460 --> 00:29:55,300 security 754 00:29:55,300 --> 00:29:56,559 all right you know I signed the visitors 755 00:29:56,559 --> 00:29:58,420 but I could be anybody I'm dressed as a 756 00:29:58,420 --> 00:30:00,400 protester folks it's because we're 757 00:30:00,400 --> 00:30:02,350 English if you say if you politely ask 758 00:30:02,350 --> 00:30:02,860 too late 759 00:30:02,860 --> 00:30:04,090 it doesn't matter if you're dressed as a 760 00:30:04,090 --> 00:30:06,730 terrorist if you're polite people will 761 00:30:06,730 --> 00:30:09,190 let you in that's the English that's the 762 00:30:09,190 --> 00:30:11,050 English way we don't want that security 763 00:30:11,050 --> 00:30:15,460 we want real security right we don't 764 00:30:15,460 --> 00:30:17,440 want no looking at driving licences or 765 00:30:17,440 --> 00:30:19,360 whatever we want some real security and 766 00:30:19,360 --> 00:30:21,610 my suggestion to you is it's plausible 767 00:30:21,610 --> 00:30:24,400 at least that the shared ledger will 768 00:30:24,400 --> 00:30:26,710 imply that the shared ledger will 769 00:30:26,710 --> 00:30:29,290 implement that real security and if we 770 00:30:29,290 --> 00:30:31,720 think carefully about the identity model 771 00:30:31,720 --> 00:30:34,540 and the way that we implement that using 772 00:30:34,540 --> 00:30:37,840 the shared ledger we can have real 773 00:30:37,840 --> 00:30:40,750 security and real privacy it's an 774 00:30:40,750 --> 00:30:43,570 attainable goal if we're smart thank you 775 00:30:43,570 --> 00:30:46,080 very much for listening 776 00:30:51,160 --> 00:30:54,230 did I understand that you really still 777 00:30:54,230 --> 00:30:56,690 see a role of financial institutions and 778 00:30:56,690 --> 00:31:00,170 banks and help you to help us to have 779 00:31:00,170 --> 00:31:03,110 all this mirrored of identity levels 780 00:31:03,110 --> 00:31:05,900 suitable to to handle those I I think in 781 00:31:05,900 --> 00:31:07,790 the future a bank will be a place where 782 00:31:07,790 --> 00:31:09,710 you store your identity not your money 783 00:31:09,710 --> 00:31:13,100 and the money will just be a store money 784 00:31:13,100 --> 00:31:14,780 anywhere money's not important but your 785 00:31:14,780 --> 00:31:16,610 identity is important that's why you 786 00:31:16,610 --> 00:31:17,750 want to store it in the bank 787 00:31:17,750 --> 00:00:00,000 okay David Burridge thank you