foreign
[Music]
I hope you are all having a fantastic
day like my name is Anna and Evelyn and
I'm very excited because this is the
first day of talks in the tropical
Sunset and today we have the talk of
ethereum business redness in 2022 with
Dan sha and Dan Burnett
thank you so much thank you
all the dance
ethereum Enterprise you have to be
called Dan uh so hi I'm Dan Shaw from
the ethereum foundation
um you know I I work with the uh
Enterprise uh big businesses back in
2017 uh at the launch of uh the ethereum
the Enterprise ethereum Alliance the eea
uh you know vitalik called for
collaboration amongst private and uh you
know public
um uh you know to to be able to support
Enterprise needs and
um you know I I joined back in
um in 2020 to come in and support those
Enterprise users uh you know when I came
in uh there were some you know sort of
big blockers for uh you know going on on
mainnet
um you know concerns around privacy gas
prices and you know regular regulatory
risks of holding assets
um over the past year and a half I've
been really happy to see a massive sea
change away from uh only uh a private
chain and you know gradual introduction
of uh real real mainnet adoption but I
really didn't know you know what was
going on uh and I'm really happy to
share what uh Dan Burnett and the EA
have been working on uh you know to
really you know give us some proof give
us some data uh and uh I've been really
surprised at uh at the majority of of
what's going on you know things are
farther ahead and farther on mainnet
than you might think so Dan Burnett
thanks so much
[Applause]
hello oh there we go all right okay
thanks
um and I may ask you to put the notes
font size back to what we had agreed to
um all right thanks uh yeah all right so
anyway what I'm here to talk to you
about today is a report that the EA
wrote issued earlier this year our
ethereum business Readiness report
so
you know in the media all the stories
are focused on uh you know popular media
right all focused on crypto speculation
nft speculation uh big collapses and
things like that but as the ethereum
ecosystem matures more and more
businesses are actually adopting the
technology unfortunately that story is
not as visible to the general public
okay and
um it's
as as an organization that is committed
to enabling uh other organizations to
adopt and use business uh ethereum uh in
their day-to-day business operations uh
we thought it was important to shed
light on what's actually happening in
business use of ethereum today so behind
the defy nft and so on headlines now
there are some challenges to this in
particular day-to-day projects are all
happening behind the scenes okay many of
us know about them or those who are sort
of crypto Savvy but those outside of
this room outside of the the crypto
bubble were definitely not aware of them
so our our goal was to
find them and quantify them and that's
that's what we set out to do
so we did a a mix of direct interviews
case study development
surveys and also the other uh important
part with this particular report was to
be able to educate business decision
makers about how to think about
ethereum-based deployments
so the work that we did is based on both
quantitative and qualitative research we
did the quantitative research where I'll
talk about that a little bit more later
but the point is that we focus primarily
on the qualitative our goal was to was
to do storytelling based on case studies
and interviews and when I say
storytelling I mean stories that make
sense to businesses
one of the reasons we focus so much on
case studies is you know everyone in
this ecosystem likes to ask well what
are the use cases what are the use cases
what are the use cases use cases are for
sellers case studies are for buyers
buyers don't want to hear what you could
do
buyers want to hear what works today so
that was one of the the important goals
that drove what we did
um so
just very quickly I'm gonna I'm gonna
walk through this part this is something
that's in the report we from a business
perspective we describe kind of the the
history of the ethereum platform as
having three main phases in the early
days of of course there's a lot of
excitement experimentation with you know
decentralize all the things and there's
a lot of great experimentation that's
still happening of course
um but there was a realization pretty
early on that there were some
limitations from a business perspective
in using the public mainnet and in
particular the three that we always
talked about the three p's were privacy
permissioning and performance those were
things that the the broader public
Community was not interested in focusing
on at the time but but for businesses
are just absolutely essential okay and
that actually led to a focus on private
blockchains private Consortium networks
um using ethereum or or other other
Technologies now as we all know there
has been a great Revival of interest in
public blockchain and this is actually
from a business perspective also that's
driven by of course what we've seen with
consumer defy which is uh demonstrated
that decentralized business models can
work
um also nfts but also some technological
improvements and I'll I'll talk about
that a little bit more later on
so um before I
um before I talk about what's on this
slide I want to mention that from this
point on everything that I describe is
being viewed through a business lens
okay so when I when I show Circles of
certain sizes and so on this is based on
our particular data set
what we did is we we collected a data
set that was restricted to down to about
118 business oriented ethereum projects
these are projects these are companies
or projects that are active now have
live teams and are developing solutions
for traditional business problems
so the data set is somewhat small and
eclectic and keep that in mind when I
when I draw some conclusions like I do
on this particular slide
um yes please reduce the font size back
down one or two thank you on the notes
um
okay
stop there
thanks um so uh okay so on the left side
here what we have is the business
projects organized by industry
and the Lion's Share of course has been
an infrastructure and fintech
unsurprisingly we're basically still in
in the stage of building the platform
and selling picks and shovels okay I
mean that is really where the industry
is particularly from a business
perspective
now if you look at use cases on the
right side most of the activity is in
software development and fintech which
of course aligns with what I just said
and so again it's still early stages
there's a lot of Need for building core
materials yet
foreign
so I just wanted to throw this up some
people like looking at logos this is a
subset of the companies and projects
that are in our database I'm not going
to talk about it this isn't exhaustive
but just to give you an idea of of uh
some of the the companies and projects
that showed up in that list of 118
now one of the things we wanted to do
was uh well look if we're gonna if we're
going to put out a report on business
Readiness of ethereum we have to Define
what business Readiness means okay so
that was our first goal was to figure
that out and through the interviews that
we did
we came up with a way to define it that
we believe is is useful for business so
our goal keep in mind with this report
is to always to do two things and
education is one of those parts so we
wanted to make sure to educate people
and we also wanted to give businesses a
tool as they evaluate uh ethereum
technology and deployment possibilities
so we developed what we call our
ethereum business Readiness framework
um and we think this is the first
attempt
that we're aware of to do this in an in
a neutral way okay so we're not selling
anything in particular other than
ethereum of course right
um
so what we ended up with is seven
technical criteria which you'll see in
the the coming slides
and three non-technical criteria with
some detailed definitions again who's
whose goal is to educate a business
audience and through this we believe
that businesses can learn a lot about
what is important and what to think
about as they um as they're considering
deployments
okay so down the left side here and I
know this is an eye chart I don't expect
you to read it I'm just going to
describe some of what's on here so down
the left side are our seven plus three
criteria they are quickly Network cost
network decentralization security
scaling privacy sustainability usability
interoperability and then regulation and
compliance ecosystem resources and
ecosystem robustness
and from our perspective and all the
interviews we did those captured the
factors that businesses cared about
it was particularly important to us to
make sure that we included
decentralization because a lot of
businesses today just still don't even
understand why that is something they
should care about okay so anyway if you
look at all these criteria on the left
not all businesses are going to Care
equally about those criteria
so the goal of this particular chart
this particular uh item this section of
the report was to answer the question
which of these criteria are actually
important to me
so what we looked at was four different
types of businesses as we call them
large corporates small and medium
Enterprises startups and then there's
government which is not a business but
they're they're a category worth
considering in uh in this discussion
so um there are two things I want to
highlight so on the sustainability side
and again I know you can't see all of
these but I just want to talk about a
couple of them so almost all businesses
care about the environment but
governments and highly visible
corporates care a lot because they can
face very high and costly reputational
risk okay if they screw up
sustainability nowadays
on the security side
all companies of course want the best
security
but corporates and governments uh
interestingly they have a lot of
resources to ensure security whether
it's Financial Resources legal technical
whatever and so in some cases and I know
this is sacrilege to say it okay but in
some cases they're willing to centralize
to sacrifice some decentralization in
return for scaling but that's not true
for smaller businesses in particular one
of the main appeals of blockchain
technology is precisely the security
against technical failure attack
manipulation and so on that Network
decentralization offers so they may be
less willing to compromise in that
particular respect now we did this
because we wanted to show this before we
got to describing different
architectures and where we think they
fall
okay
um so what we did then was we we
basically evaluated those criteria
against four different deployment
architectures you'll see we called it
Network archetype in the report what
we're talking about is basic deployment
architectures the four categories are
five columns but there are four primary
ones is the public mainnet mainnet plus
and L2 mainnet plus a side chain and
private Network
the second column is mainnet post
upgrades because we put this report out
of course before the merge and there's a
lot of other great stuff coming and we
wanted to make sure that people didn't
look at the lighter uh the lighter boxes
here which don't look so good for the
public mainnet and say oh yeah that's
always going to be the case no it's
definitely not and as we do this report
each year we're going to continue
updating it in terms of where where
we're actually at so a few examples here
from a network cost perspective
the cost to to actually operate a
private Network can be very low even
when you're running your own
infrastructure the the actual operations
cost can be quite low
um and we know the main net is expensive
today okay
um and that's being worked on we know
um in terms of ease of use by businesses
uh layer twos or side chains uh actually
have the most support interestingly
because the ones who are building those
layer twos or side chains provide a lot
of information and a lot of help on how
to make use of them
uh if you do a private chain on the
other hand it's all on you right so it's
not easy at all if you want to do a
private chain you have to do a lot of
the work yourself from a compliance
perspective
a private Network it's the easiest to
implement you know controls such as kyc
um and on you know the mainnet is of
course fully decentralized on the other
on the other end so most of this
shouldn't surprise you too much but
again this is written for
chances are it's written for your
customers the people you're trying to
sell to and who need someone to explain
this to them in a way that they can
understand
um that did not do okay all right so one
of the things we did was we wanted to
give examples of how you might use this
framework for a specific use case and
again I know it's an eye chart you can't
see all these it's all in the report
but
um we basically analyze these criteria
against
um the deployment architectures that
that I talked about so for each of these
architectures we scored the criteria is
very poor poor neutral good and very
good where good is out here and poor is
in the center on these radar graphs
um
so I'm just going to hit a couple of
headlights so the upper left one is
asset tokenization and then payments
Payment Solutions is just to the right
of that so for asset tokenization
mainnet score is very high on usability
and interoperability for tokenization
um but you know if you have a project
for which high performance and
Regulatory Compliance are priorities
you'll want to be working with an L2 or
Si chain or or you could consider
building a private Network
on the payment side
for payments use case ethereum is a
payments Network essentially out of the
box I mean
you know Finding information about how
to do uh how to do payments with
ethereum or something built on top of
ethereum is not at all hard but again if
you have high volume you're going to
want to work with a layer 2 or side
chain uh particularly if you have uh if
you're if you're addressing retail
customers now interestingly if you
actually have a wholesale business you
might not need to go to that and you
could actually do a private Network more
simply today more simply more cheaply if
you have a a wholesale business
okay um I said that we did interviews
um we actually have way more than six
interviews but I just wanted to give a
few examples of some of the people that
we spoke with
uh we spoke with people who actually
were building these projects we also
spoke with some well-known people in the
space and probably some of the people
here in the room and I just haven't seen
them yet
um but I just want to give you an idea
of this within the report we actually
include quotes uh throughout because we
found that the quotes from these people
are the thing that are are the they
express this better than any of us could
because they're dealing with it uh every
every single day so I've got
um I've got three examples here
um and the one that I'm gonna uh I'm
gonna actually call out is is in the
middle uh from Benson of acre Africa
acre Africa provides parametric
insurance for small holding farmers in
Africa
so what they said is we could have done
this on our own with a database but we
wanted public proof that those triggers
that the customers signed up for when
buying are still the same ones used when
it comes time to pay out that is a great
example of the transparency that you get
from a good blockchain solution so
anyway this is there's just a few we
have a lot more
um but these interviews really helped us
with the insights which is what I'm
going to get to shortly
um so we took that 118 projects and
whittled it down to 12 for a super deep
dive okay so we were looking at doing
case studies on on 12 of them
um nine of the projects were ready for
us to include them in the report and
three said we want to be there but not
yet talk to us next year okay so we
ended up with nine that are in the
report I don't have time to go through
them I wish I did too short a
presentation today but please do read it
in the report because there's a lot of
great insights for each one of these we
did a detailed case study and also put
the key takeaways for a business
audience again okay
um so after all of that we tried to
distill everything that we had heard
into some some insight so if you're
going to take pictures of anything it's
probably this slide and the next one
so there is a growing appreciation now
um publicly right of of an ability to
use the public blockchain that is new
that's a that's a really good thing to
hear and decentralized business models
are beginning to make some sense because
defy right so people realize there's
something there they don't know how to
do use it yet they don't know how to how
to make it work yet but but they know
there's something there that's important
um technological advances ZK proofs Etc
are addressing the privacy concerns and
a variety of the the upgrades
coming or have already happened in in
the mainnet are going to be addressing
the remaining business issues over time
but now of course we know that
you need to use multiple uh multiple
layers or multiple networks in order to
address some of the performance and and
permissioning I want to talk about
private and public blockchain for a
moment there are still as I mentioned
some good use cases for uh for private
blockchains but we're beginning to see
the use cases merge much more strongly
than we've seen before we're also
beginning to see some hybrid options
where people are using private for some
things and public for others and that's
that's that's an interesting uh an
interesting result as well one of the
things we heard very clearly
was that l2s and side chains are no one
expects those to be a temporary solution
so even with everything that's planned
in terms of upgrades for ethereum
um no one who is actually building
projects today believes that LTS and
side chains are going to be temporary
they're expecting them to be here to
stay to you know to remain okay
um when we first when we did the the
research here the number one blocker
that was listed was sustainability
across the board
this of course now
that's not the big blocker that it was
because of the merge so the second one
is now the top one and that one was
regulation and that's not probably not
going to surprise this audience
um but it's interesting because it's
actually not a blocker for all use cases
and um if you can you can see some of
the use cases where it's not in the
report or catch me later and I'm happy
to talk with you but there are some for
which it's not an issue yet and um hey
nfts are really making people aware of
what digital assets are and can do so
that's that's pretty neat
um and then the final comments I want to
make are that look we believe this is
going to sound obvious right we believe
that the ethereum ecosystem is ready for
business of course we're going to say
that no actually here's the caveat the
caveat is it is not yet out of the box
ready
that's the key result that we got
um okay don't scroll that far please
um all right
um so anyway the good news is there are
a lot of different options right there
are a number of different architectures
and they're not bad I know that this
community is trying to push the the
edges at the EA we're trying to move the
middle
okay and so it's helpful for us to be
able to explain that there are
alternatives today and
um and those Alternatives will get you
moving and you don't want to wait
there are good reasons to explore
decentralized models okay
um of the you know and and to take
advantage of the processes of the type
ethereum makes possible
um one of the quotes that we heard was
since what previously relied on faith
between two or more parties can now be
proven mathematically on a blockchain
any situation which someone has to say I
have to trust you is an opportunity for
a blockchain based solution today we
increasingly see this being put into
practice going forward the opportunities
are as numerous as the Myriad business
challenges that depend on this kind of
trust
okay so here's my eea slide
um on the left is free materials on the
right is what members get I'm not going
to walk through all of it but I want to
talk about on the left side we have
primers that we're putting out there
basically if you remember like the
college you know plastic two-sided sheet
cheat sheets were for algebra or
whatever else that's what we're putting
out and they're targeted at
non-technical business people c-suites
in general we want to make sure they
understand the trade-offs of the things
that we're talking about they are free
to download and use they're under our
resources tab
we also have a large number of
educational webinars blogs we hold
events and so on one of the things that
we just launched this week it's brand
new so hit it hard and expect some
problems but we do want you to try it on
our website lower right corner there's a
chat a chat icon
um look at some of the options that come
up but the reason we did that is that's
intended to be a help desk it has a help
desk for business people one of the
things we heard most often from
businesses was look I can call anybody
that I do business with but how do I
call ethereum
that is literally what they said how do
I call ethereum so our goal was to
create a front end that makes it easy to
answer some of those initial business
questions that people have our goal is
not to steer them to a particular
provider but to help get that initial
understanding out of the way so when
they come to talk to you they have some
idea what they're talking about
all right and the last thing I want to
put up here is uh there's lots more in
the report you can download it for free
that QR code will take you to that URL
which takes you to our website where you
can you can download the report so with
that I'm going to
see if Dan has
anything he'd like to finish with great
thanks Dan
um
so you know uh for 2022 we got through
uh 100 projects and you know got down to
you know just just to uh just a few of
them
um you know kind of the call to action
is uh you know if you have a project
that you're working on
um grab a Dan any Dan will do uh
probably one of these dance uh or
anybody at the uh the Enterprise
ethereum Alliance the EA and uh yeah
we'd love to uh you know hear about your
project and uh you know potentially
included in uh next year's report
Yep this was the first one
keep sending them in so we can we can do
more thanks thank you
okay thank you so much for this amazing
overview of the eea it's been impacting
the Enterprise adoption thank you so
much and so uh should we leave now
yeah but thank you but there's some few
minutes okay maybe if there's questions
uh yeah well we have a lot of questions
so we can start there
hi
we are going to give you the microphones
yeah
yeah for the people that
I so um can you share some specific
examples of specific businesses who are
implementing ethereum today on a public
or private uh chain because you give
like more of a general overview but I
know curious of specific companies that
are doing that right I understand and
they've just taken away my my list with
my notes where I left all the companies
so I could answer that question with a
whole bunch but it's okay
um so
um one of the
uh one of the companies that
um that we know of is Alia they did a a
public uh placement I'm sorry private
placement using
um using blockchain and that was that
was very successful
um Microsoft uses nfts to track
components in their Azure server Farms
so they basically do supply chain uh
tracking using an nft for every single
component not because and and by the way
they're doing this essentially privately
okay they're doing it on a private
network but the reason they're using
nfts is because they found them very
convenient as a as a holder for
information that they needed to carry
along the the process
um I mentioned acre Africa that's
another one of my favorites
um
oh gosh let's see so one of my favorites
is uh the again it's a Microsoft
Microsoft UI uh you know they've been uh
really really great partners and and
doing a lot of good work
um they have taken all of
um the Xbox royalties that they would
um you know potentially give to EA Games
and all all the network that that are a
part of uh you know the Xbox network and
they've tokenized that and what used to
be uh you know Financial reconciliation
that you know took months uh you know
now as as a uh you know spark contract
driven uh instantaneous project process
that uh
um you know it goes through the entire
supply chain large and small uh you know
Partners down the line uh you know
automatically get get there uh get their
fair share and uh just a fantastic
example and use case for for uh for
blockchain and there's a lot more I
really do mean you know download the
report you'll you'll get a lot more from
that thank you
okay
sorry
thanks but you can ask for sure more
things here
thank you thank you so much
[Applause]