Difference between revisions of "Technology Trends/Blockchain"
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<tr> | <tr> | ||
<th>Official publication</th> | <th>Official publication</th> | ||
− | <td>[[Media:EN_-_Technology_Trends_- | + | <td>[[Media:EN_-_Technology_Trends_-_Blockchain_-_v0.2.pdf|Blockchain.pdf]]</td> |
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<p>Lastly, SSC and the GC should consider the capacity issues in resources, network capabilities, and time required to create and maintain blockchain networks on its own. Blockchain is not a pedestrian technology, it will require dedicated teams that are appropriately resourced and financed in order for the technology to be deployed as any other service. SSC may wish to consider looking for private sector companies that specialize in providing Blockchain as a Service (BaaS), and determine the risk and cost benefits of outsourcing this process altogether.</p> | <p>Lastly, SSC and the GC should consider the capacity issues in resources, network capabilities, and time required to create and maintain blockchain networks on its own. Blockchain is not a pedestrian technology, it will require dedicated teams that are appropriately resourced and financed in order for the technology to be deployed as any other service. SSC may wish to consider looking for private sector companies that specialize in providing Blockchain as a Service (BaaS), and determine the risk and cost benefits of outsourcing this process altogether.</p> | ||
− | </ | + | <h2>Hype Cycle</h2> |
− | + | <div class="container"> | |
− | + | <div class="row"> | |
− | <div class="container"> | + | <div class="col-sm-4"> |
− | + | <table class="wikitable hypecycleTable"> | |
− | + | <tr> | |
− | + | <th>English</th> | |
− | + | <th>Français</th> | |
− | + | </tr> | |
− | + | <tr> | |
− | + | <td>Expectations</td> | |
− | < | + | <td>Attentes</td> |
− | < | + | </tr> |
− | </ | + | <tr> |
− | </ | + | <td>Time</td> |
+ | <td>Temps</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Blockchain Wallet Platform</td> | ||
+ | <td>Plate-forme de portefeuille de la chaîne de blocs</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Blockchain Interoperability</td> | ||
+ | <td>Interopérabilité de la chaîne de blocs</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Postquantum Blockchain</td> | ||
+ | <td>Chaîne de blocs post-quantique</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Smart Contract Oracle</td> | ||
+ | <td>Oracle des contrats intelligents</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Zero Knowledge Proofs</td> | ||
+ | <td>Preuve à divulgation nulle de connaissance</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Distributed Storage in Blockchain</td> | ||
+ | <td>Stockage distribué dans la chaîne de blocs</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Smart Contracts</td> | ||
+ | <td>Contrats intelligents</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Blockchain for IAM</td> | ||
+ | <td>Chaîne de blocs pour la gestion des identités et de l’accès</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Blockchain PaaS</td> | ||
+ | <td>Chaîne de blocs à titre de PaaS</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Blockchain for Data Security</td> | ||
+ | <td>Chaîne de blocs pour la sécurité des données</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Decentralized Applications</td> | ||
+ | <td>Applications décentralisées</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Consensus Mechanisms</td> | ||
+ | <td>Mécanismes de consensus</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Metacoin Platforms</td> | ||
+ | <td>Plates-formes de Metacoin</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Sidechains/Channels</td> | ||
+ | <td>Chaînes latérales/canaux</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Multiparty Computing</td> | ||
+ | <td>Calcul multipartite</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Cryptocurrency Hardware Wallets</td> | ||
+ | <td>Portefeuilles matériels de cryptomonnaie</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Cryptocurrency Software Wallets</td> | ||
+ | <td>Portefeuilles logiciels de cryptomonnaie</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Blockchain</td> | ||
+ | <td>Chaîne de blocs</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Distributed Ledgers</td> | ||
+ | <td>Grands livres distribués</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Cryptocurrency Mining</td> | ||
+ | <td>Minage de cryptomonnaie</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Innovation Trigger</td> | ||
+ | <td>Déclencheur d’innovation</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Peak of Inflated Exepctations</td> | ||
+ | <td>Pic des attentes exagérées</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Trough of Disillusionment</td> | ||
+ | <td>Gouffre des désillusions</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Slope of Enlightenment</td> | ||
+ | <td>Pente de l’illumination</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Plateau of Productivity</td> | ||
+ | <td>Plateau de productivité</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>As of July 2018</td> | ||
+ | <td>En date de juillet 2018</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Plateau will be reached:</td> | ||
+ | <td>Le plateau sera atteint :</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Less than 2 years</td> | ||
+ | <td>dans moins de 2 ans</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>2 to 5 years</td> | ||
+ | <td>dans 2 à 5 ans</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>5 to 10 years</td> | ||
+ | <td>dans 5 à 10 ans</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>More than 10 years</td> | ||
+ | <td>dans plus de 10 ans</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Obsolete before plateau</td> | ||
+ | <td>Désuet avant le plateau</td> | ||
+ | </tr> | ||
+ | <tr> | ||
+ | <td>Source: Gartner (July 2018)</td> | ||
+ | <td>Source : Gartner (juillet 2018)</td> | ||
+ | </tr> | ||
+ | </table> | ||
+ | </div> | ||
</div> | </div> | ||
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+ | <h2>References</h2> | ||
+ | |||
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Latest revision as of 12:48, 25 November 2019
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Status | Published | ||||||
Initial release | May 23, 2019 | ||||||
Latest version | November 25, 2019 | ||||||
Official publication | Blockchain.pdf | ||||||
|
Blockchain is a list of digital records (called blocks) that are securely linked together to form a chain using secure encryption and time stamps. Blockchains form a digital ledger, which is a history of transaction records that can be accessed by multiple users but cannot be individually modified.
Business Brief
Due to increasing mistrust around data sharing by some large corporations, as well as the financial crisis earlier that year, there was a growing desire for a means in which personal data or currency could be held individually. It needed to be decentralized and needed to reduce the requirement for middlemen, such as banks, brokers, or insurance companies. As the first of its kind, blockchain technology was revolutionary.[1]
While blockchain technology has begun to expand since its creation, when it first began, users were exclusively individuals. While individual uses involving cryptocurrency such as Bitcoin are still in existence, companies such as Ethereum, Golem, and Blockstack have since emerged and also employ blockchain technology for the rendering of “smart contracts” between individual parties, the sharing of computer processing power and open-source app development respectively. However, the technology is still deemed immature and underutilized.
Technology Brief
In contrast to traditional records of transactions, which often require an intermediary such as a bank or other administrator, and involve multiple records of the same transaction, the data or transaction records contained within a blockchain are decentralized. For example, in a traditional purchase, a consumer would have a record, the merchant would have a record, a supplier would have a record, and an auditor or accountant would have a record. The bank would also have a record. All of these records are kept separately. Therefore, this process requires a great deal of trust between the individual parties that one record will not be tampered with or lost.
With a blockchain transaction, each of the parties involved (called nodes, users or miners), all have the same replica of a ledger, which is contained in the blockchain on a peer-to-peer (or node-to-node) network. As a result, the bank and the traditional merchant databases traditionally used to record and organize the data in ledger would be eliminated (i.e. transaction time and date, product, buyer).
In order to form a block or a blockchain, each user requires a specialized computer and mining software. A blockchain is managed and verified collaboratively on a network accessed by multiple users or nodes. These users work collaboratively and use mining and “consensus algorithms” to solve complex mathematical problems. A consensus algorithm is an agreed-upon process for solving calculations and there are several used in blockchain technology depending on the type of calculation to be solved and the type of data to be verified.
Blockchain’s decentralized, open and cryptographic nature allows people to trust each other and perform perform peer to peer transactions, which removes the need for intermediaries. It is resistant to hacking attacks that impact centralized intermediaries like banks because to succeed, an attacker would need to hack both the specific block in a blockchain as well as every one of the other potentially million ledgers in the network simultaneously.
Despite this natural resistance to attacks, it was reported in the MIT Technology Review that security holes are increasingly appearing in cryptocurrency and smart contract platforms. In some cases, the security issues are fundamental to the way the platforms were built.
Industry Usage
The most well-known use of blockchain is in support of cryptocurrencies, such as Bitcoin. A digital currency launched in 2009, Bitcoin does not rely on a monetary authority to monitor verify or approve transactions, but rather relies on a peer-to-peer computer network made up of its users’ machines to do that. Blockchain can be used for all sorts of inter-organizational cooperation. In 2017, Harvard Business Review estimated that approximately 15% of banks are expected to be using blockchain.[4]
Although Bitcoin is the first and most well-known use of the blockchain technology, it is only one of about seven hundred applications that use the blockchain distributed ledger system. Blockchain is a digital ledger on top of which organizations can build trusted applications, via a secure chain of custody for digital records.
Canadian Government Use
According to Gartner, there is no Government around the world that is operating a true blockchain initiative , although some (State of Georgia, Hong Kong, United Arab Emirate) are operating pseudo-initiatives and starting to experiment with the technology.[5] Treasury Board of Canada notes highlights a few specific initiatives: Estonia uses an eHealth Foundation partnership to accelerate blockchain-based systems to ensure security, transparency, and auditability of patient healthcare records. Singapore employs the use of blockchain to prevent traders from defrauding banks through a unique distributed ledger-based system focused on preventing invoice fraud.[6]
In 2017, “The Blockchain Corridor: Building an Innovation Economy in the 2nd Era of the Internet” was developed, discussing ways to turn Canada into a global hub for the “Blockchain revolution.” Written by a high-tech think tank and prepared for / partially funded by the federal Department of Innovation, Science and Economic Development (ISED), the report lays out a few proposals regarding how to cement Canada’s role as a world leader in blockchain technology. The Canadian Government announced in July 2017 the intention to run at least 6 select pilot projects on the use of blockchain.[7]
Implications for Government Agencies
Value Proposition
Blockchain offers a numbers of benefits to the Government of Canada, such as a reduction in costs and complexity, trusted record keeping and user-centric privacy control. It offers significant opportunities in terms of a single source for public records, support for multiple contributors and a technology ideal for multi-jurisdictional interactions. Due to its decentralized, collaborative nature, it potentially aligns well with policies and practices around Open Government, which aim to make Government services, data, and digital records more accessible to Canadians.
By eliminating the duplication and reducing the need for intermediaries, blockchain technology could be used by SSC to speed-up aspects of service delivery. A challenge for SSC in terms of blockchain will be to identify which enterprise solutions emerge as leaders and how they deal with privacy, confidentiality, auditability, performance and scalability.
- Elections Canada – practical applications to support Voter List Management, Secure Identity Management, and management of electoral geography.
- Financial Transactions and Reports Analysis Centre of Canada – exploring implications for anti-money laundering and counter-terrorism financing.
- Public Safety Canada – focused on various uses and misuses of virtual currencies, such as extortion or blackmail.
- Natural Resources Canada – use as a public registry for the disclosure of payments under the Extractive Sectors Transparency Measures Act.
- Bank of Canada – exploring a proof of concept model alongside Payments Canada, Canadian commercial banks and the R3 consortium.
- ISED – engagement with Government departments, provincial-territorial-municipal partners, and key industry players.
Challenges
The amount of time and energy required to maintain the blockchain and create new blocks is not small and this is a frequent criticism of the technology. Conventional database entry, such as using SQL, takes only milliseconds, compared to blockchain, which takes several minutes. Due to the length of time required as well as the need for multiple computers to verify the blocks, blockchains consume an enormous amount of energy.
There are also some concerns with respect to privacy. Since blockchain is built on the premise of decentralization and transparency, the data within the chain is technically available for anyone on the network, provided they have the computational power and knowledge to gain access. Instead of being identified on the network by name, users have encryption keys, which is a list of seemingly random numbers and letters.
Considerations
In a traditional transaction, all stakeholders have to keep a record of the transaction and in the case of a discrepancy, it was more difficult / costly to determine the accuracy of a record. As a result, Blockchain may offer significantly higher returns for each investment dollar spent than that of traditional internal investments. However, to doing so, it means collaborating with customers, citizens, suppliers and competitors in new ways.[11]
Further research is needed to understand the potential impacts that blockchain could have on SSC as a service provider as well on the usage amounts the GC would require. SSC should consider the identification of client areas where blockchain may be leveraged. It may be required that client departments self-identify spaces which could benefit from blockchain processes.
Lastly, SSC and the GC should consider the capacity issues in resources, network capabilities, and time required to create and maintain blockchain networks on its own. Blockchain is not a pedestrian technology, it will require dedicated teams that are appropriately resourced and financed in order for the technology to be deployed as any other service. SSC may wish to consider looking for private sector companies that specialize in providing Blockchain as a Service (BaaS), and determine the risk and cost benefits of outsourcing this process altogether.
Hype Cycle
English | Français |
---|---|
Expectations | Attentes |
Time | Temps |
Blockchain Wallet Platform | Plate-forme de portefeuille de la chaîne de blocs |
Blockchain Interoperability | Interopérabilité de la chaîne de blocs |
Postquantum Blockchain | Chaîne de blocs post-quantique |
Smart Contract Oracle | Oracle des contrats intelligents |
Zero Knowledge Proofs | Preuve à divulgation nulle de connaissance |
Distributed Storage in Blockchain | Stockage distribué dans la chaîne de blocs |
Smart Contracts | Contrats intelligents |
Blockchain for IAM | Chaîne de blocs pour la gestion des identités et de l’accès |
Blockchain PaaS | Chaîne de blocs à titre de PaaS |
Blockchain for Data Security | Chaîne de blocs pour la sécurité des données |
Decentralized Applications | Applications décentralisées |
Consensus Mechanisms | Mécanismes de consensus |
Metacoin Platforms | Plates-formes de Metacoin |
Sidechains/Channels | Chaînes latérales/canaux |
Multiparty Computing | Calcul multipartite |
Cryptocurrency Hardware Wallets | Portefeuilles matériels de cryptomonnaie |
Cryptocurrency Software Wallets | Portefeuilles logiciels de cryptomonnaie |
Blockchain | Chaîne de blocs |
Distributed Ledgers | Grands livres distribués |
Cryptocurrency Mining | Minage de cryptomonnaie |
Innovation Trigger | Déclencheur d’innovation |
Peak of Inflated Exepctations | Pic des attentes exagérées |
Trough of Disillusionment | Gouffre des désillusions |
Slope of Enlightenment | Pente de l’illumination |
Plateau of Productivity | Plateau de productivité |
As of July 2018 | En date de juillet 2018 |
Plateau will be reached: | Le plateau sera atteint : |
Less than 2 years | dans moins de 2 ans |
2 to 5 years | dans 2 à 5 ans |
5 to 10 years | dans 5 à 10 ans |
More than 10 years | dans plus de 10 ans |
Obsolete before plateau | Désuet avant le plateau |
Source: Gartner (July 2018) | Source : Gartner (juillet 2018) |
References
- ↑ Gilder, G. (2018). Life After Google: The Fall of Big Data and the Rise of the Blockchain Economy. New Jersey: Gateway Editions.
- ↑ Furlonger, D., & Kandaswamy, R. (25 July 2018). Hype Cycle for Blockchain Technologies. Retrieved on 23 May 2019
- ↑ Orcutt, M. (19 February 2019). Once hailed as unhackable, blockchains are now getting hacked. Retrieved on 23 May 2019
- ↑ Gupta, V. (28 February 2017). A Brief History of Blockchain. Retrieved on 23 May 2019
- ↑ Gartner conference call.
- ↑ Treasury Board of Canada
- ↑ Secretariat, T. B. (29 March 2019). Digital Operations Strategic Plan: 2018-2022. Retrieved on 23 May 2019
- ↑ Treasury Board of Canada, Blockchain: Ideal Use Cases for the Government of Canada, 5.
- ↑ Vallée, J.-C. L. (April 2018). [Vallée, J.-C. L. (April 2018). Adopting Blockchain to Improve Canadian Government Digital Services. Retrieved on 23 May 2019 Adopting Blockchain to Improve Canadian Government Digital Services]. Retrieved on 23 May 2019
- ↑ Diedrich, H. (2016). Ethereum: Blockchains, Digital Assets, Smart Contracts, Decentralized Autonomous Organizations. Scotts Valley: CreateSpace Independent Publishing Platform.
- ↑ Treasury Board of Canada, Blockchain: Ideal Use Cases for the Government of Canada, 5.