how blockchain can impact the telco & media industries · the first blockchain powered payment...

December, 2017

Luxembourg

HOW BLOCKCHAIN CAN IMPACT THE TELCO & MEDIA INDUSTRIES

© BTO 2017 - All Rights Reserved 2

AGENDA

1

2

BTO OVERVIEW – Alessia Bonanno, Country Manager LUX

KEYNOTE SPEECH – Stefano Rossi, Blockchain Specialist


BTO OVERVIEW – VISION

BTO is an International Research Program that transfers Knowledge and Talents from Universities to

Companies, bridging the gap between these two worlds

Scientific Research Production

Talent training

No Execution Capacity

High bureaucracy

No business orientation

Knowledge in Execution

Talents in Action

ISSUES

Lack of Execution Capacity

High Bureaucracy

No Business Orientation

ACADEMIA

NEEDS

Innovation

Talents

Excellent Know-how

COMPANIES

“

“ is a

BRIDGE


BTO OVERVIEW – BUSINESS MODEL

BTO has three main area of services: Research, Events and Consulting. Each of them comprises multiple

products and offerings

INSPIRATION for your

Business

EXPERTISE

to improve your

Performance

EXECUTION

to accelerate

Business Growth

INSIGHT

for your

Challenges


BTO OVERVIEW – ACADEMIC RESEARCH NETWORK

BTO Service focuses on supporting the company in its Digital Transformation process through leveraging

Academic Research Network and Business Network

Carlson School of Management

Minneapolis, UNITED STATES

NYU Stern School of Business

New York, UNITED STATES

University of California, Irvine

Irvine, UNITED STATES

Michigan State University

Wien, UNITED STATES

UNITED STATES

Wirtschaftsuniversität Wien

Wien, AUSTRIA

Ludwig Maximilians Universität

Munchen, GERMANY

Universidad Carlos III

Madrid, SPAIN

University of Piraeus

Piraeus, GREECE

Grenoble Ecole de Management

Grenoble, FRANCE

Brunel University

London, UNITED KINGDOM

Imperial College London

London, UNITED KINGDOM

EUROPE

9 COUNTRIES

95 PROFESSORS IN NETWORK

12 UNIVERSITIES’ PARTNERSHIPS


AGENDA

1

2

BTO OVERVIEW – Alessia Bonanno, Country Manager LUX

KEYNOTE SPEECH – Stefano Rossi, Blockchain Specialist


THE EVOLUTION OF ICT

Source: Ametrano 2017


BEING AWARE OF DISRUPTIVE INNOVATIONS

Did not understand disruptive innovation

Rapidly adapted to new technology innovation

• The entertainment industry wasted its resources fighting MP3, streaming, and illegal p2p sharing

• We now get MP3/movies/stream from iTunes, Google, Amazon, YouTube… not Sony or Universal

• What about Blockchain innovation?

Source: Ametrano 2017


THE BLOCKCHAIN JOURNEY 2008-2014

Blockchain development started before the recent hype: this technology sparkled after the birth of the Bitcoin protocol. Below a timeline with

the most important Bitcoin/Blockchain related facts and events

2008

BITCOIN WHITE PAPER RELEASED

Satoshi Nakamoto publishes his

white paper Bitcoin: A Peer-to-

Peer Electronic Cash System

2010

BITCOIN GETS A WIDER AUDIENCE

PIZZA DAY: 10,000 BTC

Market cap exceeds $1

million USD

2013 2015

BITCOIN SKYROCKETS

Many exchanges get

established

BLOCKCHAIN ARRIVAL

Blockchain acquires its own

identity


THE BLOCKCHAIN JOURNEY – RECENT YEARS

THE BLOCKCHAIN EVOLUTION 2015 - 2016

Blockchain events become very important and gather top level managers worldwide

Blockchain conferences hosted globally

The first blockchain powered payment takes place

Santander has started a pilot program to send money via a blockchain application

Media coverage spikes

Mainstream media interest in blockchain increased in the last two years

Over $1 Billion invested in Blockchain tech

Cumulative investments related to Blockchain start-ups have gone beyond one billion dollar recently

The rise of smart contracts

The Ethereum protocol brings the blockchain to the next level: smart contracts become available for development


BLOCKCHAIN INVESTMENTS IN THE LAST TWO YEARS

228

160

145

101

85

114

26

132

0

50

100

150

200

250

2015 2016

Millions

$

Q1 Q2 Q3 Q4

Tot. 2015

$484M

Tot. 2016

$507M

Source: Coindesk 2017


THE ICO CRAZE: THE NEW WAY OF FINANCING BLOCKCHAIN PROJECTS

1.33 17.1 38.74 1.17

173.36

797.82

0.53 26.86

1225.49

5.58 39.08

0

200

400

600

800

1000

1200

1400

2015 2016 2017

Mill

ion

s $

Q1 Q2 Q3 Q4

Tot. 2015

$ 8,61M

Tot. 2016

$ 256M

Tot. 2017

$ 2B

The Blockchain ecosystem has seen many ICOs so far: not many people know that Ethereum was funded after an ICO where more than 8000

contributors bought the eth pre-sale tokens (1 Bitcoin for 2000 Ether). The name reminds that of IPOs or Initial Public Offerings (IPO) where

stocks of a private company are offered to the public. ICOs are quite the same but instead of stocks, digital tokens are offered to potential

investors

Source: Coindesk ICO Tracker


BLOCKCHAIN STARTUPS WHICH LEVERAGED AN ICO

Source: CBInsights


BLOCKCHAIN TAXONOMY

The term Blockchain began to be recognized as a chain of blocks that hold batches of all the valid transactions ever made since the beginning

of the Bitcoin network. Today, the term can refer to different development approaches.

PUBLIC

PRIVATE (ENTERPRISE)

A public blockchain, like the one that empowers the Bitcoin or the Ethereum networks, is a

decentralized distributed ledger which uses a native digital asset (i.e. Bitcoin) that acts as a unit

of account for transactions on that ledger

These blockchains are distributed ledgers that provide solutions to clients who intend to use

shared cryptographic databases managed by trusted intermediaries. Whatever falls into this

category can be defined as DLT or Distributed Ledger Technology

DESCRIPTION TYPE

Source: BTO Internal and Secondary sources


ENABLING DIGITAL SCARCITY AND DATA SECURITY

The rise of Bitcoin and its underlying Blockchain technology enables

a series of possibility which were not possible before. Leveraging

Blockchain Technology is possible to ensure digital scarcity

SOLVING THE PROBLEM OF DOUBLE SPENDING


BLOCKCHAIN EARLY APPLICATIONS

• Bitcoin, Ethereum, Litecoin and all the

cryptocurrencies born after Bitcoin represent the best

working applications of Blockchain Technology

• The blockchain represents the global shared ledger of

all the transaction happened on a given network

• The digital tokens used on these blockchains could be

used to represent real world assets

• A generic data file can be hashed to produce a short

unique identifier, equivalent to its digital fingerprint

• Such a fingerprint can be associated to a transaction

and registered on the blockchain

• Blockchain immutability provides non-refutable

timestamp, proving the existence of the data file in

that specific status at that moment in time

DIGITAL CRYPTOGRAPHIC TOKENS NOTARIZATION


TELCO & MEDIA EARLY BIRDS AND MAJOR EXPLORATIONS

EARLY BIRDS MAJOR USE-CASES AND EXPLORATIONS

DIRECT INVESTMENTS IN BLOCKCHAIN

STARTUPS

SECURITY RELATED BLOCKCHAIN PATENTS

IOT SECURE CONNECTIVITY

ANTI-TAMPERING & DATA INTEGRITY

E-SIM & FRAUD PREVENTION

MICROPAYMENTS & M2M PAYMENTS


WHY BLOCKCHAIN BETWEEN FINTECH & TELECOM?

$11.1

TR

Linking the physical and digital world could add $11.1tr

in economic value by 2025

Source: McKinsey Global Institute

Report, ‘The Internet of Things:

Mapping the value beyond the Hype’

Many industries are already testing and introducing IoT but a critical factor in integrating IoT into sustainable business models is the ability to

extend from the physical and communication supply chain to the financial supply chain


POSSIBLE BLOCKCHAIN IMPLEMENTATIONS

ONLINE CONTENT DISTRIBUTION DIGITAL IDENTITY MOBILE PAYMENTS

E-SIM implementation will open the

possibility to move user proof-of-existence

on the device while leaving the user data

safely stored on the Blockchain. The

programmable Software Layer will create

an unique association between the device

and its user thus open a full range of

unexplored possibilities

Online content distribution is an hot topic

widely discussed which is at the centre of

FinTech development of creating tracking

models related to pay per use of digital

contents. This is going to be one of the

most interesting application in which

Telecoms will be providing new services

to their customers

Digital currencies could replace how

customers deal with topping up their sim.

This scenario enables some interesting

implementations regarding:

- Micropayments

- Money transfer between users

- M2M Payments, Wearables

- IOT integration


POSSIBLE BLOCKCHAIN IMPLEMENTATIONS – CHATBOTS AND CONDITIONAL PAYMENTS VIA SMART CONTRACTS

P2P payments in chat Chat and pay in the same app just by

clicking links.

Chatbots Talk to a bot like you would talk to a

human.

Shop by chatting with a merchant's bot,

pay in two clicks

Risk-free conditional smart

payments Setting a condition when the payee

receives the money. If the condition is not

met, you get your money back.


USE CASE: IDENTITY AS A SERVICE

Fraud prevention seems to be a promising application based on blockchain technology. The telco sector is big and complex therefore

individual use cases for the technology need to be identified. Telecom companies can create new sources of revenue by providing identity

and authentication as well as data management solutions to partners, enabled by a blockchain

VERIFIED IDENTITIES

ON THE BLOCKCHAIN SHARED PUBLIC

LEDGER FOR

SUBSCRIBERS INFO

SUBSCRIBER

Blockchain

certification

A public shared ledger could be the solution to reduce frauds and to improve KYC

processes alongside monetizing clients’ data with third parties

Blockchain

certification

$38B

LOSS Fraud steals $38 billion* a year

to companies

*Communications Fraud Control Association (CFCA)

2015 Global Fraud Loss Survey


MARKET VIEW: INSIGHTS FROM THE MEDIA INDUSTRY

The introduction of Digital Rights Management systems has not substantially reduced copyright infringements. The reduced revenue streams have been only partially

recovered through new consumption models such as all-you can-consume streaming subscriptions and micro-payments for articles for examples. This seems one of the

main reason why the media industry at large is looking at Blockchain to improve the current business models and create new revenue streams

WHERE

ADVERTISING

PRESS

ENTERTAINMENT

USE CASE

Using the blockchain as a central repository for

advertising management specifically to

reduce fraudulent traffic and to better monitor

revenue streams

Creating a new digital content ranking

system for online content to evaluate and

distinguish between fake and real content

To directly tackle online content piracy this

company is aiming at launching a

decentralized and anti-piracy content

distribution platform

http://adage.com/article/digital/digital-tv-players-eye-blockchain-block-facebook-google/308090/?_ke=c3RlZmFuby5yb3NzaUBidG9yZXNlYXJjaC5jb20=

https://techcrunch.com/2017/05/03/userfeeds-aims-to-stop-fake-news-by-linking-the-blockchain-to-social-content/?_ke=c3RlZmFuby5yb3NzaUBidG9yZXNlYXJjaC5jb20=

http://www.zdnet.com/article/australian-blockchain-startup-takes-on-film-and-tv-industry-piracy/


CURRENT CHALLENGES AND POSSIBLE BENEFITS

CHALLENGES SOLUTIONS

• Margins are being eroded by new players

• Increasing costs in infrastructure and services

• Disruptive competition from Internet companies

• Changing customer needs and attitudes

Blockchain technology can be used to build open, secure

and trusted platforms through:

• A better data management system where the value

chain is monitored step by step

• Introducing the Blockchain trust paradigm (single

source of truth and better coordination between

transacting parties)

• Possibility to explore new disruptive solutions for the

IOT industry (M2M, Smart Contracts, Tokenization)

ECONOMIC LOSS

BRAND DAMAGE

STREAMLINING REVENUES

GROWING REPUTATION

www.btoresearch.com

how blockchain can impact the telco & media industries · the first blockchain powered payment...

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