The Future of Blockchain in the Enterprise

Please join me in welcoming Mr. Moritz, Juan Bonin, the head of blockchain and DT solutions at Deutsche one. Moritz. Welcome to EIC. It's great to have you on stage. Thank you very much. I hope you can hear me. Yes. We can hear you loud and clear. Absolutely. I'm curious because Deutsche bond has been at the forefront when it comes to decentralized initiative. So what can an audience expect to hear from you today?

Well, I think it's a bit like the, the morning after, you know, you wake up and you realize, okay, it's actually, if I look back from 2016 and I look at today, what came out and what is productive and what actually creates value from the perspective of industry and of enterprises and not so much from the perspective of startups and cryptocurrencies, it's a little, you know, we are not where I expected us to be. And I think this is a general outcome for the industry and it's well, let's hope for the best for the future. Yeah. Brilliant.

And I think part of it is to start a little what I prepared. Yeah. I think start of part of it is that the old industry which I'm working in, yeah. It's kind of 180 years old industry and we kind of, we, we love to do things, how they, how we did it in the past and to change this into the digital era is extremely hard and companies try to do it.

And I, I can tell you from my holiday, this summer holiday, I went with my kids. You know, we left the oo border with a car with a diesel engine and my son always says, Papa, I want to drive electric. And why do we have a diesel engine it's bad for the environment? So I have the unlucky day because we were queuing on the, on the border and just behind us, a Tesla is parking. Okay. My son jumps out of the car and goes to the driver and says, oh, you have such a cool car and also want us to go electric.

And so we, we start chatting a little with the driver and, you know, he was saying, coming from Ukraine and he said, I'm going to Nunberg. And I said, so why do we go to Nuba? Yeah.

You know, he has some business around, but he is mainly going to Nubank by car because he gets an update for his car. Right. And I was like, what? You go for an update, you travel from, you know, kind of thousand kilometers. And he says, yeah, you know, I will get a new chip underneath my seat. And then I will have a new car. It will have new features. Right.

You know, it's it's. And I was then, you know, going back to my diesel engine car, you know, and, and going and said, okay, last time I've been to a service. I did not get a new car. It didn't have any features that it didn't have in the first day. You know? So this kind of idea that Tesla is doing yeah. That they say, well, we create a software and it doesn't really matter what is outside the software.

Well, it matters a little. Yeah. But the core of my product is software. And then you have a user experience related to that software and the behavior of the software. Then you, you, you can actually, you know, kind of interact within the time of the car. The car was five years old and he's expecting to have a new customer experience by getting this update.

You know, it's like we having an whatever Android phone and we get a new Android version and suddenly we have new features. And now when you look at the industry, the automotive industry, and I think they have understood it and they're going that way, but it's the long way until, you know, they're there. They could have been there. They would have started 10 years ago. They probably will be there in five years, maybe in 10 years, maybe in 50, maybe never. And this is already a very competitive environment. This is fascinating. And thank you. Thank you for the introduction.

And then we'd love to formally hand the stage over to you. Absolutely. Thank you. Thank you. So formally I, I, I take it yeah. As my stage.

So keep, keep talking about it. Yeah. So if you look at the, at the, at the, the real industry where I'm working in the, the industry, it's much, much more conservative compared to the automotive industry, and it is even harder to, to kind of digitalize it fully. It's very regulated and so on.

So what, what, what we did is we looked at, you know, the different parts of where do we see the biggest need to kind of, to change something where our, the technology, the DLT, or I call it normally distributed letter technology and a blockchain. So the DLT technology is kind of bringing a benefit to the customer or to the processes. And I think the, the very first thing, and I will give example to, to, to each of them in a, in a second is kind of, you know, can you design processes much smarter, much faster? Can you break up old processes to make it more efficient?

And the second part is sometimes you don't need, you should not work on, on optimizing a process in an industry in the production line, for example, but you need to rethink the architecture and what do you actually want and how can you create an architecture that creates that value? And the third part, and this is of course, always the most tricky part is how will business models look like if you kind of can self disrupt your own your own world, and probably question the old values you created by new models. And therefore, I would like to start with the first example.

I think it's a very common one in the, in the industry and that in the logistics, of course you have big players, like for example, the starters were trade lengths who were going on shore, and it does make a lot of sense yeah. To have, you know, all around from, from the production, until the consumption to have a transparent view and to share this transparency in a decentralized architecture environment. So this process of, of giving over documents from one to another, and in the end, only half of the information is arriving.

And the customer doesn't know at all, what is the state of, of the product does make fully sense. But, and this is, I would say one of the biggest challenges in implementation, you need to cooperate and all these different parties who are independent, who have their own interests, who have their own it systems. We have the own security systems who have their own risk concepts would need to work together. And if they don't work together, it does not make sense.

If you take out one, you know, the handling or the transportation, you know, then the other, the beginning, the factory and the customer is not relevant anymore because you need the, the full corporation and to organize these corporations and to convince the individual parts that are involved, that there will be a value for them because there will be a value for the customer. And this customer value is shared among the, the whole line of, of, of logistics and supply chain is in fact extremely difficult and is kind of the, the big kind of hindering stone that make it run for now.

You, you can see, you know, again, the personal experience, if you look at the, the small or medium enterprises, like the, and grocery, they have a logistic software. And I just recently went and wanted to go shopping. And there was empty shelves because they were hacked with ransomware and suddenly they couldn't use their supply it anymore.

So yes, the old industry, you know, starts digitalizing, but they are not yet in, in my view, on our view corporate fully together, they're still trying to find their own best solution. And not as a, as a yeah. Branch itself. The second example I want to give is the area of mobility. I think it's, we are all kind of have, have, you know, relationships to it.

And I unfortunately cannot be at the moment in Munich, but all the other audience, all you have traveled, I guess, and probably use trains or used S or your own car, or maybe you went with a, with a local transportation, but all this transportation, all this mobility experience is not connected at all.

So meaning if, if you want to fly from New York to, to Berlin and then go with a train from Berlin to Munich, and then go with a local transportation or a scooter or a rented bike, you go to the conference and you check in, in your hotel, you have different lock-ins, you have different applications, you have different tickets, you have different payment modes and all this would, of course be much, much more comfortable having it all together. As one, as a kind of, we call it mobility as a service, but it means you need to bring all these parties together.

I think there were a lot of efforts done by different players, but the problem is if you have one player, let's say a huge airline and they, they will say, well, okay, I will connect it all. They have. They have no trust by the others. Yeah. Nobody will say, okay, I will give all my data to American airlines and they can organize everything from you. They can sell my tickets, they can do my local transportation. They will rent me the bike from their view.

So you need to have a kind of a decentralized network where everybody has access and can sell each other services, but create a customer experience from their customers integrating the different services. And also of course it was set just second before. Yeah. It's the key of, of course is a, a common identity of, to all of them. And this identity should not be with one of the companies, but it should be kind of a, a kind of selfer identity that all the different parties can trust.

So it can actually, you can connect the digital together and the, the, the key why we need to, or why we look into the field of decentralized systems here is the settlement of the revenue. Because if one player is selling the ticket and it integrates all the other services and it gets the income, because there should be one payment, the other players will want to make sure, okay, I get my share and I get it immediately.

And therefore doing it with a, for example, smart contract that automatically then does the revenue splitting and gives the shares to the ones who, who execute the service is crucial for success, because otherwise you need to create even the trust around the, I trust you that you will give me my share, even though I don't know you. So if you want to have an open kind of mobility as a service world, and I think it doesn't exist yet because it hasn't been created yet. And the companies haven't been convinced yet that it will help also their customers to have a totally different experience.

And everybody still lives in their own empire and things. They can, they can do it alone. We were talking about it, or we, we, we tried to promote it since now four or five years. I can tell you, it's not only the, the general mobility industry. It's also ourselves who are standing in front of us, because of course we are one of the biggest mobility providers, and we also would need to open up. And so it's not only the others, it's also ourselves who need to be more flexible, a lot of political work I can tell.

And the last example I want to give is coming from the rethinking the business model. I don't know how many of you are familiar with how is organized. It's pretty much the same concept. Like it was what I said earlier 180 years ago. So you kind of have a former times, we had this keys. And if you come to a, to a switch, you would be handed over this key. And with this key, you have access to a certain tracks. And only the key owner in this moment can use it. And all the others need to wait until the key arrives. And therefore you make sure that you don't have a crash.

You don't have accidents on the tracks. And this key handover, this key by the way was called token. And of course we thought, why do you, well, we then switched, you know, from a physical key to now organizing it manually, partly we have switch or dispatching technology, which still with wires, where you open them and you kind of with physical strengths, you need to pull the switches.

Then we have some digital systems as well, but they're all, you know, closed software systems and well, to open, to open it up, we designed and we made a research and we prototyped it and let it run for more than a year with a digital tokens hand over, meaning you, you don't have a kind of dispatchers that organize all those key handlings or the, the, the access handling, but you do it fully automated. You have a kind of a, to every physical asset that is out there is represented in a digital token. And the one who has a digital token in its wallet is allowed to access.

And nobody else double spending is not possible. Therefore, the key is only be given to one wallet. And in the moment you leave your infrastructure path, you give back the key to the wallet and therefore you make sure it's not spent twice, or it's not possible to spend twice. So the access is safe. So having this model and trying it out, of course, you go into the discussion with the authorities who need to legalize it. And then you come to blockchain solutions, you need to design based on Xia standards. And you come to a, to a, kind of a dead end, because it's hardly possible yeah.

To have a decentralized environment with different node running, handling, and securing the, the, the available of the keys with the rules and the environment of, of kind of the last century. And yeah, so we, we tried it out. It's working actually fine.

It's, it will do a political massive shift because you will not have the function of a dispatcher anymore, which will you make you more enemies and friends in your company, which is, you know, kind of coming from the culture of holding the power as a dispatcher to the point of, well, we actually don't need it and it won't be less safe. And this is what I call kind of reinventing the business models, because then you need to think, okay, what, how will business models look in the future? If you kind of fully digitalize the management of infrastructure it's yeah.

So far, are there any questions from you.