0Copyrightⓒ 2018 by SK telecom All rights reserved.

Opportunities and Challenges of Blockchain Development

Software R&D CenterBlockchain Tech. Lab

Hyojin Jeong

1Copyrightⓒ 2018 by SK telecom All rights reserved.

How Blockchain Could Disrupt the Telecommunication Industry

Blockchain Networks is building on the Telecommunication Infrastructure

Challenges

Control the end-to-end value chain- Data Connectivity- Network Infrastructure- Related consumer services

BUT

Need to find additional sources of revenue and reduce cost

Opportunities

Blockchain can impact the core management

system of CSPs(Communication Service

Providers) by creating an environment where

cost can be reduced, and the revenue can be

increased with higher efficiency

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Blockchain Network on the Telecommunication Infrastructure

Infrastructure Access Network Core Operation-BSS-OSS

ServiceVoice/Data/Cable-Value added Services-Managed Service-

Network Management

Enterprise Management

Partner Management

Customer Management

Reporting and Analytics

Potential area for Blockchain disruption

Blockchain will provide a opportunities in a fields of Fraud Management, Identity-as-a-Service, 5G Enablement and IoT connectivity biz area

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Blockchain Opportunity for Telecommunication Industry

- Decentralized and distributed ledger

- Trustless operability

- Immutable, auditable and Irreversible

nature of records

- No or diminished role for third-party

intermediaries

- Cryptographically secure

- Chronological and timestamped

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Which kinds of Blockchain Network do we need

Can you articulate a real business problem that needs solving?

Could it have been fixed before blockchain?

Do you need a database

Do many people need to write to it

Are writers known and trusted?

Are writers known and trusted?

Choose the best blockchain or distributed ledger technology

You don’t need ablockchain, but a privatedistributed ledger mayserve your purpose

Based on your use case determine the appropriate blockchain

Coordinate those entities into a consortium

Is consensus determined by multiple entities?

Do you want to rely on a trusted third party

Do you value censorship resistance and immutability over efficiency?

Do you need to control read and write access?

Will all participants need to upgrade and replace system?

Do the benefits justify the cost of adoption?

You probably need a public blockchain

However, another distributed ledger technology might be better

You probably don’t need a blockchain

(Hybrid)Private PublicY

Y

Y

Y

Y

Y

Y

Y

Y

Y

YYou might

need a blockchain

Y

N

N

N

N

N

N

N

N

N

N

N

N

Consortium

Source : Blockchain Capital LLC

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Blockchain Technology with Existing Industry

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SKT Chain-Hub Infra - Cross Chain Connection & interoperation- Data Management for Digital Asset- Digital Asset Exchange- Enterprise Blockchain Features

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SKT Chain-Hub Platform to Connect Peer and Business

Off-Chain Infrastructure

BlockchainBiz Model

Cash BackPoint

Biz Logic Implementor

Crypto Payment

API Gateway

Account/contract

Management

Interoperation Chain

Network

Security

Token Mechanism S

mart

Contra

cts

Public Blockchain

Ethereum/Bitcoin/EOS …

DecentralizedExchange

Cryptocurrency& Digital Asset

CreativeAsset

Communi-cation

IoT Supply Chain

Storage

Multi-Chain Interoperation(Distributed Ledger)

Database

Exte

nsio

nFeatu

res

Account Permission

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Private Blockchain

…

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Distributed Trust collaboration for Multi-Chain

Inter-Communication API Modul

ToolExtension

Extension FeturesInterBlock- Data ChannelingInterChain- Data ChannelingGUI/Web dashboard / Admin- -terminalMulti- -Attatcher management

SDK Extension

Authority Control

Consensus Algorithm

Event Framework

System Chain-code

ToolExtension

Ethereum Ripple others

Multi-Chain API

Off-chain InfraOff-chain Infra

Asset ExchangeAsset Exchange

SKT Multi-Chain Platform supports public/private blockchain systems and is able to connect applications which is running on the different blockchain networks

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Off Chain Infrastructure

Off-chain N-party payment channels have been proposed as a solution to scaling both costs and speed

A B

On-Chain

SKT Off-Chain

State Channel

Off-chain Transactions

1 Ether

C H

1 Ether 1 Ether 1 Ether

1 Ether

1 Ether1 Ether

1 Ether

1 Ether

1 Ether IPFS

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Decentralized Asset Exchange

Communication Module

Protocol Module

RelayUnit

Smart Contract

Unit

Virtual Machine 1

Virtual Machine 2

Makers

Takers

PKIUnit

IPFS

Decentralized Exchange IPFS SecurityModule

In the currency/data exchange system all digital asset (with consent of the owner) can be discovered and traded while meeting individual privacy requirements.

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Application Scenario with Creative Asset on the Blockchain Network

Payment

Chain connection

TokenManager

Account

Off

-Chain

Infr

a

Asset Exchange

Artist(Creator)

Consumers

DigitalAsset

CryptoTransaction

BizUnit

BizUnit

BizUnit

BizUnit

BizUnit

Consumers

DigitalAsset Biz

Unit

BizUnit

BizUnit

BizUnit

BizUnit

CryptoTransaction

CryptoTransaction

OperationFee

Reword

Reword

Private Network

BizUnit

BizUnit

BizUnit

BizUnit

BizUnit

IPFS

Currency Network

Service Platform

Third-PartyPartnership

Public Blockchain

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How we support Web 3.0 on the Blockchain Network

Dapps Browsers

Decentralized Application

Cryptographic Network & Transport Protocol

Internet Routing Protocols

Infra-structure

Access Network

Core Operation

Trust NetworkService

Messaging

Data Feeds

StorageState

MachineConsensus

State Channels

GovernanceOff-chain

Computing

The Web 3.0 Abstract Stack

SKT builds the infrastructure for Web 3.0 trust network which is cross-chain, cross-system, cross-industry, cross-application, and cross-device.

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Q&A