smart contracts and identity

tomorrow’stransactionstoday

SmartContracts and identityBlockchain-ID+eID Café,April26th 2016

PascalVanHecke,Innopay

2 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

InnovationexpertsinPayments,DigitalIdentityandE-Business

• Foundedin2002

• Partners:ShikkoNijland&Douwe Lycklama

• HQinTheNetherlands,Amsterdam

• 20+consultantsplusInternationalnetworkofassociatedexperts

• Threecorepractices:Payments,DigitalIdentityandE-Business

• Strategy,co-creationandtransformation

• GeographicalfocusonEU

• Memberofa.o. EBA,ECPandEPCA

• FoundingmemberofHollandFintech

3 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

Thethreepracticescontinuouslyprovideclientswiththelatestknowledgeandinsights

DigitalIdentity

E-business• Internetenables services tobereachable viathedigitalchanneland causesbusiness toengageindigitaltransformation

• Innopay helps companies tooffer digitalservicesand provides strategiestosupport theirdigitaltransformation process

• Duetoplace-independent commerce itisbecoming anecessitytoidentify youronline customers

• Innopayworksfor several collaborative trust frameworks and alsohelpsorganisations todealwithonline identification, authentication and verificationprocesses of theircustomers

• Thematuring Internetand theenduringmobile revolutionchange contexts ofcommerce. Businesses andconsumers demand realtimeservices,anyplace anytime

• Innopay supports clientsacross thepayments valuechaintoadapt tonewdemands andexploit theopportunities ofthisnew reality

Payments

Douwe LycklamaDouwe.lycklama@innopay.com+31655711150

HugoLöwingerHugo.lowinger@innopay.com+31624395600

Vincent JanssenVincent.jansen@innopay.com+31642102058

4 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

Agenda

SmartContracts?

SmartcontractsandEthereum

Ethereum andidentity

5 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

6 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

7 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

8 SmartContracts and identity,PascalVanHecke,April26th2016.©InnopayBV

tomorrow’stransactionstoday

Red sends 1.1 to green

Blue sends 3 to green

Grey sends 1 to red

Blue sends 3 to red

Red sends 1.1 to grey

Red gets 50 for the puzzle!

10 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

SmartcontractsinBitcoin

• Containsadeliberatelysimplescriptinglanguage• Atransaction=lockingBitcoinanddescribinghowitcanbeunlocked• Examples:

− Multisig:multiplesignaturesareneededtounlock− CheckLocktimeVerify:Bitcoinonlyspendableatsomepointinfuture− ….

11 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

SmartcontractsinBitcoin

• Containsarelativelysimplescriptinglanguage• Atransaction=lockingBitcoinanddescribinghowitcanbeunlocked• Examples:

− Multisig:multiplesignaturesareneededtounlock− CheckLocktimeVerify:Bitcoinonlyspendableatsomepointinfuture− ….

Altcoin/Metacoin X

More ”opcodes”, more functionality

12 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

13 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Ethereum:anythingisprogrammable

“Classic“blockchains

• Addresses

• Balancewith“native”coin

• Transactions

• Blocks:transactionsbundled

Ethereum:

• Addresses• +datastorage• +code• BalancewithEther• +application-specific tokens

withspecificbehaviour• Transactions• +creationofcontractcode• +callingcontractcode• Blocks:“transactions”• +”newstate”ofentiresystem

14 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

15 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

16 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

17 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

18 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

19 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

20 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Slowandprimitive,but…

Promise:

A15-yearoldcandeploybusinesslogicthatis:

• Verifiable• Immutable• Untamperable• Untouchable

21 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Smartcontractpattern

1Lockthingofvalueincontract

2Contractcodedeterminesredistribution

3Basedoninformation thatisnotyetknown

22 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Smartcontractpattern

1Lockthingofvalueincontract• Nativecrypto• Tokensrepresentingvalue…or

abilities2Contractcodedeterminesredistribution

3Basedoninformation thatisnotyetknown

23 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Smartcontractpattern

1Lockthingofvalueincontract• Nativecrypto• Tokensrepresentingvalue…or

abilities2Contractcodedeterminesredistribution

3Basedoninformation thatisnotyetknown• Randomness• Actor• “Oracle”

24 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

25 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

26 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

27 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

28 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

29 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

30 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Developers

31 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

32 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

33 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

34 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Smartcontractsandidentity

”Proxycontract”

• Actingonbehalfofindividual(…orgroup,groupofcontracts...)

• Controlpolicyisinthecontractitself

• Examples:− Multisig/multifactor− Revokeandrestorepolicy

− compromise,insanity…− Policygovernance

->Roleoftrustedparties!

35 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Smartcontractsandidentity

However…

• Flexibility• Nostandardsyet• Everyapplicationinventsitsown

conceptofpermissions,groups,attributes…

36 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Uport (notyetreleased)

User-centricidentity

• Cryptographicallytiesattributestoidentifier (proxycontract)

• SigningkeyandAuthenticationkeyaspropertyofaproxycontract

• Attributesaresignedbyidentityproviders (orpeers)

• Attributesaredisclosedtorelyingpartiesviapeer-to-peer protocol(noIDPsurveillance)

37 SmartContracts and identity, PascalVanHecke,April26th2016.©InnopayBV

Uptake

1Research!• Scaling:sharding• Consensusalgo:mining

2Publicorpermissioned• Privacy/Confidentiality• Finality• Accountability

3Adoption?• Uptakeofpublicchainsuncertain• Bizmodelof

permissioned/consortium?

tomorrow’stransactionstoday

Contactus!Pascal.VanHecke@innopay.comwww.innopay.com