Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...

 
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Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Blockchain Meetup

Blockchain and Acronis

John ZANNI, CEO Acronis SCS & President Acronis International
                    15th ANNIVERSARY                     © Acronis, 2018. All rights reserved.   1
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Acronis – Global Company
                  World Leader in Cyber Protection

      Singapore                           Schaffhausen, Switzerland            Scottsdale, AZ

Founded in Singapore                     Established 2nd HQ in              Acronis SCS
  by a Singaporean                      Switzerland for the global    40+ employees exclusively
       in 2003                             expansion in 2008           serving the U.S. market

       1,000+ employees • 50,000+ partners • 500,000+ businesses
                5,000,000+ prosumers in 150+ countries

                     15th ANNIVERSARY                                     © Acronis, 2018. All rights reserved.   2
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Acronis has Solutions for Every Customer and Company

  46%                  70%                      75%                     60%                              79%
 of Fortune           of Fortune            of Tech Fortune’s         of Healthcare              of Top 100 Most
     250                Top 10                   Top 20                  Top 20                  Valuable Brands

AMERICAS   200,000+ customers          EUROPE    200,000+ customers        APJ / MEA        100,000+ customers

                         15th ANNIVERSARY                                       © Acronis, 2018. All rights reserved.   3
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Digital Landscape
Complete Reliance on Data                             Threats to data
The world is becoming increasingly digital            Accidental data loss

Businesses are driven by data                         Hardware failures

Personal lives depend on data                         Phishing

   Medicine                                           Pharming

   Communication                                      Malware

   Public services                                    Ransomware

   Travel                                             Email scam

                                                      Hacking
Enterprise challenges
Data is everywhere

 Local, cloud, physical, virtual, mobile

Decentralized systems

                                   15th ANNIVERSARY                          © Acronis, 2018. All rights reserved.   4
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Evolution of ransomware

AIDS 1989   Cryptowall 2013         WannaCry 2017

                                                    $10B
                                                    damage by
                                                    NotPetya
                                                    alone
                                                    https://boingboing.net/2018/08/22/
                                                    andy-greenberg.html

                 15th ANNIVERSARY                   © Acronis, 2018. All rights reserved.   5
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
5 Vectors of Cyber Protection

Safety    Accessibility         Privacy   Authenticity            Security

 Data PROTECTION                                         CYBER Security

                          CYBER PROTECTION

             15th ANNIVERSARY                       © Acronis, 2018. All rights reserved.   6
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
The need for AI
and Blockchain
Attacks are frequent and changing
fast: only AI can recognize the
attacks and protect data.

Changes to data are subtle
and may not be noticed right away:
only blockchain-based technology
can verify the integrity of data.

5 Vectors of Cyber Protection
provide holistic approach to
protecting all data, applications
and systems.

                             15th ANNIVERSARY   © Acronis, 2018. All rights reserved.   7
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Unique Innovations

           Privacy                                     Authenticity                         Security
  Hybrid Cloud Architecture:                 Blockchain-based digital Notary:         AI-based protection:
    any source, any data, any                      data certification, time      active detection and prevention
destination – on-premises, private             stamping and validation using         of ransomware attacks,
  datacenter, service provider                    an immutable distributed        vulnerability assessment, and
          or public cloud                               blockchain.                   security configuration.

                          Advanced applications of Artificial Intelligence
        1. Predictive security                  2. Automatic data organization      3. Semantic search

          4. Storage tiering                        5. Automated compliance      6. Automated configuration

                                 15th ANNIVERSARY                                    © Acronis, 2018. All rights reserved.   8
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Acronis approach to Blockchain use
1. Solving a legitimate technical problem: ensuring immutability of existing digital objects
2. Validity of certification is based on existing public Blockchains – making Blockchain
    essential to the product
3. Solving scalability and efficiency problems outside of Blockchain
4. Building solution that Acronis partners and customers can easily use in practice

Blockchain                                                Acronis

Is an append-only database with                           • Provides high throughput
transaction order with the following                        solutions to store and
data protection properties:                                 exchange significant volumes
• Immutable data storage                                    of data in secure and verifiable
• Secure time-stamping                                      manner
• Public audit                                            • Where anti-tampering and
                                                            verification is ensured by the
But it is unpractical to store big
                                                            blockchain algorithm
chunks of data in a blockchain

                                       15th ANNIVERSARY                                        © Acronis, 2018. All rights reserved.   9
Blockchain and Acronis - Blockchain Meetup John ZANNI, CEO Acronis SCS & President Acronis International - Sandra Day O'Connor College of ...
Acronis focused on blockchain since 2015
                                                                                                                      2018
                                                                          2017
                                             2016                                               • Spin-off: Chainstack,
                                                                                                  Singaporean startup
                                                                                                • Notary Cloud and File
                                                           • First large industry clients
                                                                                                  Sync&Share on
                                                           • Improved cost efficiency
                                                                                                  blockchain
               2015           • Strategic initiative to
                                                           • Notary Cloud Service for
                                                             MSPs
                                                                                                • Integration with Acronis
                                develop applications of                                           Data Cloud
                                                           • 10+ patent applications
                                Blockchain for data                                             • Notary as plug-in feature
• First Proof-of-Сoncept                                     for innovative
                                protection announced                                              for cloud services
  project ‘tamper-proof’                                     blockchain
                              • Blockchain powered Data                                             (MSFT Office, email
  data storage with                                          technologies filed                     attachments, Amazon Web
                                Authentication Prototype
  verifiable sync and share                                                                         services, OneDrive,
                              • First Blockchain-related
  solutions                                                                                         Dropbox, Google Docs)
                                service – Acronis Notary
                              • First customers

                               15th ANNIVERSARY                                        © Acronis, 2018. All rights reserved.   10
Barriers to blockchain adoption

 • Fast growth creates challenges for long
   government decision making cycle, and for                                                      Technological
   figuring out the value from adoption                                                            Challenges

 • Not all government processes are/can be
   decentralized
 • Technology limitations are important:                               Regulatory
     • Security (“51% attack”, sensitive
                                                                       Challenges
       information), and privacy questions

     • Scalability (Every participating
       node to verify transaction)
                                                        Business
     • Performance (e.g. Bitcoin:                      Challenges
       only a few transactions
       per second)

                                                                    The Blockchain Reality
                                    15th ANNIVERSARY                            © Acronis, 2018. All rights reserved.   11
Authenticity: Blockchain-based data certification
  More than 6.5 million files are notarized with blockchain products every month

                                              Notarize in blockchain        Generate certificate

                                                                                   Or
              Compact events                    Blockchain stores      Notary stores    User stores
              Packaging in chunks
             ensures high throughput             certificate’s key      certificate      certificate

                           15th ANNIVERSARY                                               © Acronis, 2018. All rights reserved.   12
Case Studay: Acronis Notary and Log Audit
        Log data is a subject to
         security and retention             Log data often contains
          policies, as well as                  sensitive data
         compliance mandates

        Protection of log data – both in transit to the log collection
                solution and when – an important concern

        Log data must be strictly controlled and never altered

                 15th ANNIVERSARY                           © Acronis, 2018. All rights reserved.   13
Case Study

             15th ANNIVERSARY   © Acronis, 2018. All rights reserved.   14
Acronis Notary Cloud
A blockchain-based service for file notarization, e-signing
and data verification for businesses of any size. Acronis Notary
Cloud creates a unique digital fingerprint for files and stores it in
a public blockchain ledger, enabling independent validation of
a file’s authenticity and existence at a specified date and time.
Allows to:

• Ensure the integrity of business-critical data
  Eliminates the need for third parties
  to guarantee the immutability of data.
• Achieve greater regulatory transparency
  Reduces the cost and time necessary
  to conduct an audit.
• Reduce the risks to data’s security
  Adds a extra layer of protection that is powered
  by a mathematical proof.

             Ensure data is authentic and unchanged using blockchain technology

                                    15th ANNIVERSARY                    © Acronis, 2018. All rights reserved.   15
Easy to Use Solution to Gain Advantages of
           Blockchain Technology

Notarization Service                           E-signature Service          Verification Service
Lets users notarize files of any                 Enables all required          Once a file is notarized,
   type and record it in the                    parties to electronically   allows confirmation from any
      blockchain ledger                                sign files                device, at any time

                        Any Industry. Any Document. Any File.

                            15th ANNIVERSARY                                    © Acronis, 2018. All rights reserved.   16
Beta 2: New in Acronis Notary Cloud
More options
for custom branding
Thanks to the new options for custom branding now
it is possible to fully customize the service including
its logo, URLs, color scheme and “buy” button.

Hard quotas
Acronis Notary Cloud incorporates the ability to set
hard quotas for the clients. This feature allows
service providers to flexibly adjust licensing and
pricing according to business needs.

Management at unit tenant level
Now it is possible to manage the service at the unit
tenant level. This feature is very useful for
companies with many divisions and regional offices
distributed around the globe.

                                   15th ANNIVERSARY       © Acronis, 2018. All rights reserved.   17
Blockchain market momentum
 Global blockchain market, 2016-25                                 Government is #2 blockchain market

                            5%     By type
                  20%
                                                      Public
$B                                       75%          Private
                                                      Hybrid

                  CAGR(2021,25) = 40%+

 https://www.acronis.com/en-us/articles/blockchain/

                                                15th ANNIVERSARY                © Acronis, 2018. All rights reserved.   18
Gov agencies in 10+ countries are examining blockchain
 US     Canada    UK   Denmark    Sweden           Estonia      Georgia        South Korea      Most active
                                                                                                public service use

           1                               2 346
                                   9   3                                                        1.    Digital currency/payments
                                                                                                2.    Land registration
                                                     2                                 1
      2 3 5 7 8                                                                                 3.    Voting (elections)
                                                                          1        3
                                                                                                4.    Identity management
                                                                   1
                                                                                                5.    Supply chain traceability
                                                         12
                                                                                                6.    Health care
                                                                                                7.    Voting (proxy)
                                                         UAE   India   China                    8.    Corporate registration
                                                                                                9.    Entitlements management

                                                                                                *Measured by observing the number of public
                                                                                                sector blockchain experiments planned, in
                             10+ on-going projects                                              progress, or stalled globally

                             20+ countries plan to start trials this year

                             15th ANNIVERSARY                                                © Acronis, 2018. All rights reserved.     19
Blockchain has broad range of applications beyond bitcoin
 Automotive                   Charity/Donation            Credit History               Education               Real Estate                    IoT Data Security
 Track history of             Track donation              Transparency and             Verification of         Trusted ownership,             Distributed time-
 vehicle from pre-            lifecycle, Reduce           accuracy of                  academic                transfers                      stamped data
 production to sale           overheads                   reporting                    credentials             agreement                      records of IoT
                                                                                                               Reduce transaction             ecosystems
                                                                                                               costs

 Transport                    Media                       Government &                 Insurance               Legal                          Healthcare
 Transparent                  IP rights control           Voting                       Reduce multi-           Time-stamped facts             Patient records
 tracking Car                 Smart Contracts for         Trusted audit                stakeholder             Smart contract with            proof
 Sharing and public           artist compensation         Transparent voting           contract cost           rules / agreements             Tracking Clinical
 transport                                                Accountability               Improved risk                                          Trials
                                                          Regulatory                   contract efficiency                                    Supply Chain
                                                          compliance mgmt                                                                     management

 Cybersecurity                Aviation                    Software                     Digital Company         Cloud Storage                  Human
 Trusted data                 Maintenance                 Development                  Incorporations,         Crowdsourcing                  Resources
 integrity                    records time-               Time-stamping and            transfer of             unused storage                 Trusted track of
                              management                  proof of ownership           equity/ownership        Cost efficiency and            records,
                              Proof of component          in SW development            and governance          Increased security             background
                              origin                                                                                                          Reputation,
                                                                                                                                              feedback
                                                                                                                                              management
https://medium.com/fluree/blockchain-for-2018-and-beyond-a-growing-list-of-blockchain-use-cases-37db7c19fb99

                                               15th ANNIVERSARY                                                      © Acronis, 2018. All rights reserved.   20
How to leverage blockchain value in government realm?
Real world examples
 Estonia                                                                  South Korea                                    USA
 •   A digital identity card powered and secured                          •    Provincial government of Gyeonggi-do      •  Delaware uses blockchain to track
     by blockchain                                                             recently tapped technology developed by      operational & legal activities: company
 •   i-voiting in operation, blockchain-based Linq                             blockchain startup Blocko for a vote on      registration, share movement, shareholder
     platform for private capital market                                       community funding                            communication
 •   Plans to transfer e-medical records of 1 M+                                                                         • Illinois uses blockchain for Birth registry and
     citizens to blockchain-based                                                                                           identification system
 Details                                                                                                                 • Utah uses Private blockchain for online
                                                                                                                            voting
                                                                                                                         Details

 Argentina                                                                China                                          United Arab Emirates
 •    Since Jun 2017, government has been                                 • Trade financing system on blockchain         •   Government strategy to move all
      using the OpenTimestamps Dapp to mark                               • Asset-backed securities on Shanghai              government document flow to blockchain
      the times that it releases its official bulletins,                    Securities Exchange on blockchain                based protocol with further expansion
      which it publishes each weekday                                     • ‘Out-of-hospital prescription circulation’       ambitions by 2020
                                                                            service
                                                                          Details

     Decentralization does not mean disorganization – government can use private blockchain
https://medium.com/@bryzek/how-blockchain-is-used-by-governments-as-a-form-of-national-identity-e24a4eefb7d8

                                                           15th ANNIVERSARY                                                    © Acronis, 2018. All rights reserved.   21
Estonia is among first blockchain adopters
2008 Testing started
                                                             Keyless Signature Infrastructure is a blockchain
     •   1st   country to use blockchain on national level   technology designed in Estonia and used globally to
                                                             make sure networks, systems and data are free of
     •   2nd fastest court proceedings in Europe             compromise, all while retaining 100% data privacy
2012 Blockchain has been in operational use in
Estonia’s registries:                                                                   Linked
                                                                                     Timestamping

     •   National health                                         + Proof of work                        + Formal proof (2003)
                                                                   + Inentives                     + Distrubuted consensus (2007)
     •   Judicial                                                                                    + Attribution of origin (2010)

     •   Legislative                                               Bitcoin                                       KSI
     •   Security and commercial code systems
                                                                                                   + Post-quantum signatures (2014)
Plans to extend its use to other spheres:                       + Smart contracts                    + Anti-tamper hardware (2014)
                                                                                                     + Provenance calculus (2016)
                                                                                                        + DLT integration (2017)
     •   Personal medicine
     •   Cybersecurity                                           Ethereum                                   KSI Stack

     •   Data embassies

                               15th ANNIVERSARY                                     © Acronis, 2018. All rights reserved.     22
Since 2013, Chinese government, financial institutions,
and innovators have been investing heavily in blockchain
China is # 1 in blockchain patents
$100 M funding in 2017, 40% YoY
$1.6 B Global Blockchain Innovation Fund

Jul 2018 Blockchain-powered trade financing system
     • by Hong Kong Monetary Authority and a Ping An Group fintech subsidiary, with over 20
       banks involved

Sep 2017 Blockchain-backed asset-backed securities on the Shanghai Securities Exchange
    • Jointy with Baidu

Apr 2018 ‘Out-of-hospital prescription circulation’ service
     • Tencent, Guangxi Province, Liuzhou city, and other
          China plans to Establish National Blockchain Standards by 2019
                           15th ANNIVERSARY                           © Acronis, 2018. All rights reserved.   23
USA has over 30 initiatives related to blockchain
adoption on federal and state levels
Birth registry and identification system
• State of Illinois
• individualization and enhanced improvement of the security of identities
• jointly by Evernym and the Illinois State Government

Private blockchain for online voting
• State of Utah
• State Republican Party has a secure and convenient option to participants in
  its Presidential Preference Caucus
• Operated by Smartmatic

Automated compliance of Public Archive with laws
• State of Delaware
• Delaware Public Archives do “beta” test for the blockchain technology within
  State government.
• New “smart records” technology

Company shares are authorized by distributed ledger
• State of Delaware
• Division of Corporations could validate and file the incorporation plus transfer
  the authorized shares to the new company.

                                      15th ANNIVERSARY                               © Acronis, 2018. All rights reserved.   24
Other examples
• Government of Brazil announced its intention to move petitions and popular voting
  onto Ethereum
• Canada is testing out using Ethereum to provide transparency to the use of
  government grants to ease citizens’ concerns of misappropriation and corruption
• City of Zug, Switzerland— a long-time crypto bastion — began offering digital IDs
  registered on Ethereum in 2017
• Chile uses Ethereum to track the data and finances from the energy grid, hoping to
  combat corruption and exploitation through transparent, immutable data available
  for every citizen to see
• Dubai is on the move to become an entirely integrated, blockchain-powered city by
  2020

                      15th ANNIVERSARY                       © Acronis, 2018. All rights reserved.   25
Blockchain adoption: current state and opportunities
                                   Now                                                    Promising use-cases

                              Several financial institutions and                    • Verify vendors’ track records in public procurement
                              technology partners plan to test an
                                                                                    • Blockchain based electronic document flow
                              interbank payments using DLT
                              Implications of using digital tokens                  • Blockchain-certified regulation compliance
                              as a virtual Singapore dollar
                                                                                    • Tax collection based on smart contracts
                                                                                    • Blockchain-certified web-content of government
                                                                                    • Track a public officer’s career moves
                                                                                    • Auditing processes on blockchain
                              Building a national trade platform
                              based on blockchain, connecting                       • Electoral rolls
                              businesses, community systems
                                                                                    • Digital identity
                              and platforms, and government
                              systems

      From a paper-based, delayed-reporting world to a more dynamic, real-time world
https://www.psd.gov.sg/challenge/ideas/deep-dive/blockchain-trust-public-service‘

                                                     15th ANNIVERSARY                                    © Acronis, 2018. All rights reserved.   26
Looking ahead
• Blockchain is not panacea, but one of the ways how government
  can become more modern, especially in areas where
  decentralisation and transparency means increase in efficiency or
  convenience of G2C, G2B, G2G

• Governments should carefully investigate possible opps, no fast /
  risky decisions

• Best practices & Standardization will form in mid-term, but only
  10…20 countries will be able to proceed with blockchain adoption
  where:

    •   Access to qualified talent or relevant education initiatives

    •   Favourable governance & regulation

    •   Industry & Startups involvement

    •   Only testing may lead to standard /best practice

                                            15th ANNIVERSARY           © Acronis, 2018. All rights reserved.   27
Acronis focus on 3 use-cases
                 Trust                                 Cyber Protection                                   Cost Efficiency

    Blockchain-certified web-                      Blockchain-certified regulation                   Blockchain based Electronic
            content                                        compliance                                      Document Flow

Protect all government publicly                   Independent and granular audit trail for         Scalable and efficient service for Data
available data, incl. social media data of        all stored data, indisputable proof that the     Sharing & Collaboration between
government officials - no fake news               stored data has not been modified                government agencies

• Public trust in government is one of the        • Currently regulatory transparency is           • Easy, cost-efficient, secure technology
  most important foundations upon which             ensured by an independent                        based on scaled Consortium Data
  the legitimacy, credibility and                   mathematical audit trail                         Sharing Platform
  sustainability of governments are built
                                                  • Any file has its own unique fingerprint,       • Verifiable intra- or inter-department data
• Technologies are changing balance of              thus availability and authenticity of a file     exchange
  public trust from the governments to the          can be checked even without revealing
  people rule                                                                                      • Multiple levels of shared data visibility
                                                    the information
                                                                                                   • Immutability

                                        15th ANNIVERSARY                                                  © Acronis, 2018. All rights reserved.   28
For more
information

Acronis Resource Center
www.acronis.com/resource-center

Acronis Blog
www.acronis.com/blog

John Zanni
jz@acronis.com

                          15th ANNIVERSARY   © Acronis, 2018. All rights reserved.   29
twitter.com/acronis          facebook.com/acronis

blog.acronis.com             motorsport.acronis.com

                      15th ANNIVERSARY                © Acronis, 2018. All rights reserved.   30
Privacy: Hybrid Cloud Architecture
Protecting all data, applications and systems

  ANY MANAGEMENT                                              ANY PROTECTION                        ANY DEPLOYMENT

  Management software deployed and                         Backup                     Storage      Local                 Private Cloud
  controlled independently, enabling
  control of data protection by customer,                             Sync&Share                Partner Cloud            Public Cloud
  service provider, vendor, partner, or
  third-party from public/partner/private                         Disaster Recovery
  cloud or customer premises

             ANY WORKLOAD                                       ANY STORAGE                           ANY RECOVERY

       On-premises           Private cloud               Disk, Tape                  NAS, SAN    Physical                   Virtual

                     Cloud                               Partner Cloud          Private Cloud   Applications                Mobile

                                                                      Public Cloud

                                      15th ANNIVERSARY                                                © Acronis, 2018. All rights reserved.   31
Security: AI-based Ransomware Protection
•   Biggest stacktrace database – 400M records
•   Significant Computing resources investment
•   Ongoing Research – 10+ projects based on machine learning and deep learning
•   Experience
•   Collaboration with global AI community
•   Expertise                                                                                             More than 200k
                                                                                                          attacks prevented
                                         Files retrieved from the Cloud
                                                                                                          in 12 months

       Ransomware           Ransomware                                     If untrusted, block
                                                       Several files are
     infects windows       starts to encrypt                               and terminate the
                                                         encrypted
         machine                  files                                           threat

      Background                Event                     Heuristics          Whitelist /
         work                  logging                     reacts           Blacklist check

                                 15th ANNIVERSARY                                                © Acronis, 2018. All rights reserved.   32
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