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Personal Data: Own or Be Owned What You Need to Know About the Future of Digital Innovation and the 4 th Industrial Revolution Presented by Steven Schwartz PERSONA L DATA WEEK™

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Page 1: Siena Presentation

Personal Data: Own or Be OwnedWhat You Need to Know About the Future of Digital Innovation and the 4th Industrial

Revolution

Presented by Steven Schwartz

PERSONALDATAWEEK™

Page 2: Siena Presentation

2Siena College Presentation Agenda

1. Introduction

4. What’s

Blockchain?

3. We’re in

the 4th

Industrial

Revolution?

2. What do

You Know About

Personal Data?

5. What is the

“Internet of

Things?”6. What

about Cyber

Security?

www.globalcyberconsultants.comwww.cyberfense.com

Page 3: Siena Presentation

www.globalcyberconsultants.com

Who isSteven Schwartz

- Graduated Siena in 2011 and Union College’s Graduate School in 2013

- Founder of Global Cyber Consultants – Risk Management & Commercial Insurance Consulting, aligned with Cyber Security Solutions to provide an integrated, transparent, end-to-end solution to cyber security and traditional risk management

- The US Director of CyberFense, a Cyber Risk and Insurance Tech Start-Up launching in Q1 2017

- Insurance Advisor to Agentic Group, one of the largest Blockchain Consortiums with more than 40 member organizations to date and many institutional investors and private funds

- Working with the Keith Institute and am on the Advisory Board for the Personal Data Project and Personal Data Week

www.cyberfense.com

Page 4: Siena Presentation

What Do You Know About Your Personal Data?

www.globalcyberconsultants.comwww.cyberfense.com

Page 5: Siena Presentation

The Economics of Personal Data

1. All humans have intrinsic value2. Value is like that of energy. It cannot be created not destroyed, but change form3. Monetary value is distributed through ownership4. Your big data is the best way to value your ownership status

When people own their data There will be a tangible record of influence

The value of influence will justify compensation

50% of today’s jobs will be automated in 20 years!

The Personal Data Project is Based on 4 Ideas

How Does the Technology Work?

Page 6: Siena Presentation

2nd 3rd 4th 1st

The Four Stages of the Industrial Revolution

Late 18th Century

First mechanical manufacturing equipment

powered by water and steam

1784 = First Mechanical Loom

Early 20th Century

Introduction of mass production through assembly lines and

electricity

1870 = First Assembly Lines at Slaughterhouse

Cincinnati

Early 1970sUse of electronics and computers are used

worldwide to automate manufacturing

1969 = First programmable logic

controller

Today!“Cyber-Physical

Systems:”

Real objects and virtual process that are interlinked, such as the integration of

the: Internet of Things, Blockchain,

Artificial Intelligence and Robotics

www.globalcyberconsultants.comwww.cyberfense.com

Page 7: Siena Presentation

What is the Blockchain?

www.globalcyberconsultants.comwww.cyberfense.com

Page 8: Siena Presentation

8Hexa Presentation

Blockchain in PracticeThe Status Quo:

• A centralized database with a single point of failure• Financial intermediaries who are needed to validate

transactions, thus slowing them down and charging transaction fees

Certainty as a Service through Decentralization:

• Database decentralization and record keeping disintermediation provides freedom from 3rd parties and complete control over who has access to your data

Page 9: Siena Presentation

9Hexa Presentation

Industry Use Case Use case description How Blockchain can be implemented? Benefit of Blockchain

Financial Services

Letter of Credit

A bank handling letters of credit (LOC) wants to offer them to a wider range of clients including startups that are "born Global" but are currently constrained

by the costs involved and the time to execute the transaction.

A common ledger for letters of credit that allows the bank and all counter-parties to have the same validated record of transaction and fulfillment of

conditions.

1. Increased trust2. Increase speed of execution to

<1 day3. Vastly reduced cost

Financial Services

Client Onboarding / Know Your

Client

Client Onboarding is the process by which a market participant determines whether to do business with a counterparty. This is by the detailed

examination of related risks. A key part of Client Onboarding is Know your customer (KYC). KYC is the process used by a business to verify the identity of

their clients.

Blockchain stores the verified digital identity of customers, updated each time KYC checks are re-

run. This could be shared within a group of banks, or eventually within Government run

information hubs.

1. Banks in group have rapid access to validated customer documents.

2. New client accounts can be opened more quickly, leading to quicker deposits and revenue generation & reduced costs of acquisition.

3. Improved customer satisfaction through bureaucracy reduction

Financial Services Trading

PlatformFinancial Services (Trade Financing, P2P Marketplace, Any-to-Any

Marketplace, Consortium networks)

Blockchain based Trading platform not only for private and public equities but also for other

trading of goods and services. These platforms can also embody embedded contracts. Using Blockchain technology, individuals and firms

can produce and exchange financial contracts.

1. Reduced cost of compliance, simplified stack of processes, and easy auditing of transactions.

2. Lower cost of creating contracts and settlements since there are no intermediaries.

Page 10: Siena Presentation

10Hexa Presentation

Industry Use Case Use case description How Blockchain can be implemented? Benefit of Blockchain

HealthcareElectronic Medical Records

Electronic Medical records are currently maintained in data centers/cloud like environment and access is limited to Hospital and care provider networks.

Centralization of such makes it vulnerable to security breach and can be expensive.

Patient data can be stored on a blockchain network with multi-signature address for each

EMR. The Owner i.e. the patient can be provided with Private key and a multi-sig address and each

hospital/healthcare provide have their own private key and multi-sig address.

1. Improved visibility to patients on who has access to their data.

2. Cost reduction in the hospital and provider network from massive compliance costs associated with EMR.

InsuranceSmart

Insurance Contracts

Insurance contracts today are cumbersome to read and require lawyers and other intermediaries to be involved for application, enforcement and

regulation.

Contract conditions could be stored as smart contracts on a blockchain network. This smart

contract can be executed automatically based on an event trigger (for example, medical

emergency, flight delays, accidents, etc).

1. Quick and easy settlement with no overhead

2. Highly efficient and automated execution of insurance contracts.

GovernmentSimplified

Tender Process

Government public tenders are subject to many different types of fraud and several layers of oversight is required which adds cost and time in making

decisions.

A blockchain solution would introduce a confidential bid process that is completely

transparent to all parties. Companies would be allowed to submit exactly one encrypted bid

prior to the tender deadline. Once the deadline has been reached, the companies would submit

keys to unlock their bid. The keys could be submitted to the government only in which case

the bids remain confidential, or to all parties.

1. Many types of fraud are prevented as described above.

2. A court can obtain access to the securely submitted bids to enable judgement if the evaluation process was done according to the rules.

3. The entire process can be audited since all transactions are part of the blockchain ledger that cannot be manipulated.

Page 11: Siena Presentation

11Hexa Presentation

What is the “Internet of Things?”

Page 12: Siena Presentation

CyberSecurity is No Longer an IT Department Issue

But How Much is

this Threat Worth?

Can a Director or Officer be

Liable?

The Threat Landscape is Changing

What Will Cyber Insurance Cover and

When?

“There are those companies that have been hacked, and there are those companies that don’t know that they’ve been hacked” The Annual

Global Cost of Cybercrime is

upwards of $445 Billion –

Center for Strategic and International

Studies (CSIS)Directors owe

Duties of Care and Duty of Oversight.

1. Data Breach and Privacy Mgmt.

2. Media Liability

3. Cyber Extortion

4. Network Security & Business Interruption