Part 4: ICON | A Notable Approach to Network Effect

Follow the growth of ICON Network The diagram will be updated on a regular basis with links to the relevant information for further reading. While every effort will be made to ensure that the information is accurate and up to date, if there is any misinformation, the community’s constructive feedback is very welcome by the team at Speculative Rationality. Join our Focus Group to stay connected with our ICON updates Join our ICON focus group for technical discussion.

Network Effect

ICON has a vision to hyper-connect the world through a trustless self-propagating global society built on distributed ledger technology(DLT). More importantly, it has the muscle power and the means to execute on that vision with a clear blueprint and a focus on building a network that snowballs to critical mass.

Many projects are working towards the elusive notion of “adoption”, ICON is noteworthy for its conscious and very deliberate allocation of resources to that end – the team behind the project has spent considerable time and energy building a proprietary enterprise solution, establishing defensible relationships and fostering partnerships over the last few years – the end goal is enhancing the “network effect” of the ICON ecosystem. Network effect is a phenomenon whereby a product or service gains additional value as more people use it. We see ICON’s approach to accelerating its “network effect” as two pronged

loopchain technology (enterprise adoption): a proprietary enterprise Distributed Ledger Technology (DLT) with a modular architecture that can be tailored to meet required specifications of any industry. its success is underpinned by its ability to ensure that its proprietary technology has low barriers to entry: It is easily deployable (handholding by ICON developers for implementation)

It is responsive and easily customizable

It takes into consideration existing tech and addresses port over barriers

It is flexible to adapt as the broader DLT technology landscape evolves Partnerships strategy (connectivity to a broader network via ICON public ledger): execution of planned partnerships with enterprises from various industries that not only adopt the loopchain technology but also give back to the technology by working together in mutually beneficial collaborations that invigorate the ICON network.

It is easy to see that the two prongs of this approach feed into each other in what might be referred to as a “virtuous cycle”. The low threshold to adopt loopchain technology ushers in greater usership in the realm of enterprise blockchain technology, and the formalization of partnership with ICON (the public ledger iteration of theloop technology) entrenches value in the ICON ecosystem. This in turn makes it more attractive to participate in the ecosystem (whether on the private or public side) for proximity and ability to access the value captured therein.

loopchain Technology

loopchain is a high-performance enterprise blockchain with Smart Contract features that can be customized according to the operational needs of its users and it can be linked with other distributed ledger networks. The implementation of adoption agnostic characteristics into the very fiber of the technology is evident at each layer that makes up loopchain as detailed below. For a more technical dive into the technology’s implementation see our earlier post on ICON: Network of Networks.

LFT Consensus Algorithm

LFT (Loop Fault Tolerance) is an enhanced BFT (Byzantine Fault Tolerance) based algorithm that promotes faster consensus and ensures the finality of the consensus without the possibility of forks within the network. LFT supports faster consensus by creating a group among trusted nodes. LFT can accommodate diverse consensus structure by allowing such groups or nodes to freely determine the number of votes. (Source: ICON Whitepaper)

As blockchain platforms are being challenged to meet the rigorous demands of real world application, such as low latencies, immediate transaction finality, high performance and scalability – a secure and robust consensus model is essential to the overall operation of the blockchain. loopchain’s LFT consensus was built on precisely these fundamentals to serve the needs of its real-world customers; initial iterations focused on the financial sector but we have seen that expand to a multitude of diverse industries. The successful implementation of loopchain across such a wide range of use cases aptly demonstrates the adoptability of the technology.

SCORE (Smart Contract On Reliable Environment)

The real-world operational requirements of institutes, consortiums necessitate high performance, efficiency and practical application of smart contracts. As such SCORE is an enhanced Smart Contract feature of loopchain that ensures high-performance contracts to run directly in the node operation environment (in a container-based runtime separate from the basic blockchain process) without a separate Virtual Machine (VM). The architecture enhances efficiency while protecting overall blockchain processes from any errors occurring in the Smart Contract.

Additionally, SCORE Store allows efficient and convenient registration, deployment, and versioning of Smart Contracts making it easily deployable for various applications. SCORE Local Repository has a revision control system and versioning capability that does not require data migration with every update to the smart contract; enabling smart contract updates that can be executed easily and quickly.

Multi-Channel

In a practical business environment, there are a multitude of different tasks and compliance requirements with specific needs involving only certain parties; as such dedicated and closed-system sub ledgers are required. loopchain caters for this requirement through its multi-channel feature.

The multi-channel feature enables a blockchain network to consist of independent channels that can in a contained manner execute requests, consensus and Smart Contracts within the network without having to establish a separate ledger. Since the channel is established with only relevant trusted nodes, the integrity and assurance are ensured on a channel-by-channel basis, and transaction data is held only by actual transaction parties.

Tiered System

loopchain controls the level of information each participant can access, manage, and supervise. The permissioning capacity built into the technology allows for easy transition from existing organizational structures to operation on the blockchain.

Modular Architecture

loopchain modular architecture is composed of separate components that can be connected together including an interface layer, engine layer and an admin layer. As a result, any entity that joins the ICON network is able to customize modules for nodes verification, consensus algorithms, Smart Contracts etc. as is required for their specific operation. Additionally, they are able to replace or add any one component (module) without affecting the rest of the system – ensuring sustainability of the network system as the landscape evolves around it.

Legacy System interoperability

In order to facilitate the transition from legacy systems, loopchain provides various SDKs (software development kits) according to existing operating systems such as Java, C, Node.js, Python etc. Clients and authorized institutions are able to use the SDK to access loopchain proxy via Rest API which is designed to take advantage of existing protocols and to connect to blockchain peers via gRPC. gRPC is a modern, open source remote procedure call (RPC) framework that can run anywhere. It enables client and server applications to communicate transparently and makes it easier to build connected systems.

Network Interoperability methods

There are two ways for loopchain to connect to third party blockchains, whether permissioned or public.

By adding a special node designed for interoperability – “Interop Node”.

Via Blockchain Transfer Protocol (BTP), which facilitates transactions between independent blockchains

Partnership Strategy

The breadth of connections that manifest themselves in the “ICON ecosystem” are deliberate and far-reaching. The industries that ICON and its technology providers theloop and DAVinci (subsidiary and brand of DAYLI Intelligence), are working with to create a blockchain ecosystem are either fundamental/mature industries that underpin the current economy or cutting edge new industries that could form the pillars of the future economy.

The industries list includes the below and continues to grow at an incremental pace.

Gaming

Biometrics

Document Management

Decentralized Exchanges

Banking

Capital Markets

Education

Healthcare

Health Insurance

Business Services

Cross-border payments

The research tables below detail the type of partnerships that ICON has established in each industry and provides an overview of individual industry size, growth potential, characteristics and related blockchain use cases. The table also explores the partnering company’s functions, strengths and their respective partnerships. The table should give an idea of the level of penetration ICON is striving for and clarify why this approach to “network effect” is notable. The intent to integrate across disparate vectors of the existing economy is ambitious and while most initiatives if not all are at an early stage – we can imagine that exciting efficiencies and innovations that will spring forth as ICON hurtles towards maturity. Just one early example is the previously discussed achievement of 27 securities firms sharing a single ledger (a consortium that exists in the broader ecosystem being built by ICON and its partners). We will continue to document the growth of the ICON network on this page.

theloop and Smilegate | Gaming

An MOU between ICON/theloop and Smilegate has been signed with a plan to create a social gaming ecosystem on the blockchain. At the core, its services will enable game users to share, experience and buy/sell various contents that they have created in a unified and socially connected p2p environment. The significance of the partnership lies therein its potential to not only invigorate the ICON network by onboarding sizeable participating communities but also strategically establishing a two-way transmitting link with the gaming industry.

“Gaming is arguably the world’s favorite pastime, and certainly the most engaging and empowering form of entertainment” says Peter Warman, CEO of Newzoo. With 51% of entertainment industry owned by gaming sector in the US, the largest contributing market in 2016, statistically the gaming sector has outperformed all other popular forms of entertainment including book publishing at 20%, recorded music at 15.5% and box office at 9.9% market share. (Source: US Department of Commerce)

However, increasing consumer demands, the proliferation of gaming-capable devices and lower barriers to entry for low-cost alternatives mean that companies’ need to innovate and join the revolution of disruptors is more critical than ever. In the race to compete for gamers’ time and share of wallet, the gamers’ user experience becomes the defining factor in a company’s success in the space. Games must be tailored to individual gamer preferences providing rich, connected, and personalized experiences that enable gamers to be captivated and immersed as part of a broader franchise development and monetization strategy that increases gamer lifetime value. The distributed ledger technology introduces a whole realm of functions that can meaningfully improve not only the gaming experience but also gaming economics. Some examples in the table below.

The partnership between Smilegate, producer of the highest grossing individual game, and theloop is not only a unique proposition for realizing the evolution of the next generation gaming technology achieving unprecedented levels of user experience and empowerment but also for instigating a snowball effect of blockchain adoption in an industry boasting current and future economic boom.

Partnership Fact Card Partner Overview Name: Smilegate Founded: 2002 Description: Smilegate (parent of Smilegate Stove) is one of Korea’s leading game company with 5 core business sectors including game development, publishing, platform, investment and social contribution with 9 subsidiaries. Smilegate specializes in FPS, MMORPG and action fighter genres for PC and mobile devices.



Smilegate Stove (a subsidiary of Smilegate) is a next generation global social game platform provider benefiting both developers and gamers together. At the core, its services will enable game users to share, experience and buy various contents that they have created in a unified and socially connected p2p environment.



10 Games to be launched by Smilegate



20+ partnership agreements underway

Through its step-by-step operation, Smilegate Stove supports partners in all stages, from development to operation and business, providing a one-stop solution to handle the complexity of various dimensions of game business.



Provides support for small game developers in the form of:



Global marketing channels

Financial aid

Business mentoring

Technological support

Notable benefits include:



Mobile service platform connected to billing systems of existing mobile application stores

Social aspects similar to PlayStation Network or Xbox Live but available on a broader device

Reduce development and management costs

Services elements include:



User account management Integrated billing system Development kit and console In-game data analytics system Promotional marketing tools

Size: 662 Billion KRW in 2016

1200 Employees

9 Subsidiaries: Holdings, Entertainment, Worldwide, MegaLab, RPG, MegaPort, Investment, Foundation, Stove

Servicing 80 countries across Asia, Europe, South & North America

(Source: Smilegate) Facts: Proprietary FPS Game CROSSFIRE:



1 Trillion KRW, highest grossing individual game

8 million concurrent users, holds Guinness World Record for largest number of game users online

Over 650 million worldwide subscribers

Present in over 80 countries

Top of the gaming charts in South East Asia since launch in 2013. (Source: Smilegate)



Kwon Hyuk-Bin, the founder of Smilegate is regarded as the richest self-made man in Korea with 890.6 Billion KRW private assets.

(Source: The Korea Herald)



Won the “Tower of Export” award from Korea International Trade Association for first local content maker to exceed 500 million KRW in exports in Dec, 2016.

(Source: The Korea Herald)



Among the 885 domestic gaming companies in South Korea, Smilegate is placed in the top 5 by revenue in 2016.

(Source: Pocket Gamer)

Partner's Networks Fact Card Strategic Partnerships Publishers:



• Tencent Games (China)

• Playgra (Japan)

• VTC Game (Vietnam)

• LYTO Game (Indonesia)

• Gameclub (Philippines)

• Gamerage (Europe)

• Mail.RU (Asia, Europe & Middle East)

• Z8 Games (North & South America, Europe & Middle East)



Phaser Lock Interactive, a virtual reality studio based in Texas. A collaboration that places Smilegate into bourgeoning VR industry estimated to reach 12.1 bullion USD by 2018

(Source: Phaser Lock, Statista)



Remedy Entertainment Oyj, Finnish video games giant with a market cap of 72.916M Euro is developing the story mode for the upcoming CrossFire 2.

(Source: Remedy)



The9 Ltd, China’s 46.923M USD Market Cap gaming company has signed publishing rights for CrossFire 2.

(Source: MMO Culture)



World Cyber Games (WCG) i.e. the “Olympics of eSports” has been acquired by Smilegate Holdings with an intent of making splash in eSports market with estimated revenue of 1.5 billion USD by 2020.

(Source: The eSports Observer, Statista)



Starbreeze AB, a Swedish gaming company with studios in Stockholm, Paris and LA with a market cap of 3.045B SEK is Smilegate’s strategic partner to enter Western Markets.

(Source: Starbreeze)



CROSSFIRE movie created by “Fast and the Furious” producer Neal Moritz is expected to premier in 3-5 years to attract further interest in the franchise.

(Source: THEWRAP)



G4Box began as Smilegate North American publishing partner in 2006 and officially joined the Smilegate family under the name Smilegate West in 2013.

(Source: Smilegate West)



Smilegate Europe, is Smilegate’s European division established in 2016 under the name of Smilegate Games GmbH.

(Source: Smilegate Europe)



Industry Fact Card Industry Overview Industry: Gaming



A sector involved in the development, marketing, and monetization of video and computer game Market Size

(Global):

2.2 billion gamers



116 billion USD in revenue for 2017, estimated to grow to 143.5 billion USD by 2020.



Mobile revenue of 50.4 billion USD in 2017, makes it the biggest segment of the gaming industry; estimated to hold more than 50% of the market share by 2020.

(Source: Newzoo) Market Growth

(Global):

Gaming has entered a new phase of accelerated growth from both a consumer and an industry perspective.



Estimates were revised upward by 7.1 billion with 10.7% growth in 2017 from 2016.

Mobile gaming revenues with more than 23% YoY growth was revised upward most out of all segments making it the most lucrative segment.

China and Japan the main drivers behind this spurt of growth, APAC contributed 50% of consumer spend on games making this region the most lucrative for the industry. (Source: Newzoo Graphic)

While in the past Gaming revenues were compared to the movie theatre industry, gaming industry has surpassed this benchmark by tripling 2016 movie theatre revenues. It is now more comparable to the sports industry. Gaming, if including console gaming hardware and PC gaming systems, is already a bigger business than sports industry. Gaming (software) alone will surpass 130 -150 billion dollar sports industry in 3-4 years. (Source: Newzoo) Market Characteristics

(Global):

Global Expansion

-----------------------------



The majority of games now have highly competitive modes, is multi-player and, most importantly, is run as a continuous service instead of developed as a product. Because of these changes, the market is more aligned on a truly global scale.

Competitive gaming involving team play, rankings, and live streaming is claiming a growing share of overall game time, particularly in Asia.

Asia’s biggest publishers are actively bringing their games to the West where mobile competitive games are increasingly topping the charts.

Accelerated Growth

-----------------------------



After the iPhone revolution of the gaming industry 10 years ago, the industry is going through a new phase of accelerated growth driven by the empowering nature of games and the convergence of media and entertainment sectors.

Underlying the success of the industry are the tools given to consumers to create and share their own experiences around their favorite game franchises.

Gaming is accelerating the convergence of mobile, sports, media, and entertainment industries, sparking an unprecedented wave of mergers and acquisitions. (Source: Newzoo Report, Newzoo Article)

Blockchain Impact on Industry Fact Card How DLT will benefit Gaming:

Interlinked gaming environments on the DLT

-----------------------------------------------------------



characters, skins or virtual items become transferrable digital assets

continued character development in multiple games

parallel gaming universes can create a loyal following for interlinked games

player’s gameplay preferences stored on the ledger can be used to deploy more personalized experiences across games

Virtual items on the DLT

---------------------------------



Safe storage of items

Prove scarcity of rare digital collector’s items

Upgrade an item’s rarity and sell at a premium price

Increase in functional, economic and social value respectively created through new ways to use virtual items in and out of games platforms that cash the items for dollars trading, sharing and gifting the item





Improve gaming economics on the DLT

----------------------------------------------------



Blockchain programmed to give developers and server owners to collect royalties throughout the gaming world.

Cheaper processing fees via decentralized payment gateways

Micro transactions will

provide novel ways to monetize games enable payments on a second by second basis allow mores users to justify buying items broaden gaming development from serving the few to the many boosting value of the industry by billions



Improve gaming as an industry

-----------------------------------------



open source development kits and decentralized nature of blockchain will not only motivate developers to expand the framework but also continually improve gaming tech, a value proposition inherent to decentralized open source communities.

Reduce fraud and other transactional cost losses refueling the previously lost revenue back into the industry.

Democratic voting systems in gaming servers and communities

Remove limitations on AR and VR by enhancing processing power required by these technologies through a network of servers

Blockchain gaming environment where gaming rewards can be spent in the game, use in the game store, held an investment, or transform them into cryptocurrency or fiat at an online exchange mean that gaming can become a profession for more people. (Source: Enjin Coin Blog, Venture Beat, The Next Web)

theloop and Raonsecure | Biometrics

An MOU between theloop and Raonsecure has been signed with the intent of co-developing a FIDO system using blockchain technology. FIDO (Fast IDentity Online), the global standard for biometrics, is one of the rising next generation authentication technology. Raonsecure, as a board member of the FIDO Alliance alongside Google, Alibaba Group, Amazon, ING, Mastercard, Microsoft etc. is also co-chairing the FIDO Korea Working Group. The onboarding of Raonsecure has been favorably viewed by FIDO Alliance in view of strengthening the technology and wider global adoption of the FIDO standards.

As the multi-billion-dollar biometrics technology enters mainstream consciousness and is increasingly adopted by corporations in a plethora of industries across the globe, the introduction of blockchain technology to the space opens up multiple use cases (see table below) that can truly innovate and enable users to safely take part on a connected economy. The partnership empowers blockchain integration into this highly progressive and innovative industry while facilitating unseen level of technological advancement in FIDO and wider biometrics sector. This in turn creates a mutually beneficial and perpetual exchange of value in a shared progress towards next generation authentication built on blockchain supported by FIDO global standards.



Partnership Fact Card Partner Overview Name: Raonsecure Co. Ltd Founded: 1998 Description: Among its product range, the TouchEn OnePass is a Fast IDentity online (FIDO)-based next generation biometric authentication solution.



It authenticates a user on the server after biometrically verifying them in the secure element of the user’s smart device. The user's biometric data is never exposed to the Internet or stored on a remote server.



It is the most widely-adopted certified FIDO-based mobile biometric authentication solution in Korea-- used by banks, credit card companies, telecoms. SNS messaging apps and portal sites.

Raonsecure is known for most of the biometric authentication infrastructure in Korea. Size: 120.558 Billion KRW

(Source: Bloomberg)



51 – 200 Employees

(Source: LinkedIn)



Servicing 30 Million Customers & 500 Businesses in public, financial and business sectors

(Source: Raonsecure) Facts: Holds a number of security technology patents in the IoT / integrated security space.



Major Name Customers:



Public: Ministry of Justice, National Tax Service, Ministry of Interior, Supreme Court of Korea, Ministry of National Defense

Financial: ING, Bank of Korea, KB Kookmin Bank, Woori Bank, Citi Bank, Shinhan Bank, Prudential

Business: Microsoft, Naver, IBM, Oracle, Daumkakao, LG Electronics, HP

Ministerial Awards from the Ministry of Science, ICT, and Future Planning.

(Source: Raonsecure)

Partner's Networks Fact Card Strategic Partnerships Raonsecure is a FIDO Alliance Board Member alongside other giants such as Google, Alibaba Group, Amazon, ING, Mastercard, Microsoft, PayPal, Visa, Samsung, Intel, American Express etc.



The FIDO (Fast IDentity Online) Alliance is non-profit organization founded in 2012 to introduce new global standard for biometric and other security and user identification systems. Its mission is to change the nature of online authentication by:



Developing technical specifications that define an open, scalable, interoperable set of mechanisms that reduce the reliance on passwords to authenticate users.

Operating industry programs to help ensure successful worldwide adoption of the Specifications.

Submitting mature technical Specification(s) to recognized standards development organization(s) for formal standardization.



Benefits of FIDO Authentication Solutions



Stronger account/transaction security

Improved user experience

Improved return on investment in authentication

Reduced risk of fraud. (Source: FIDO Alliance)



Raonsecure executives will co-chair the FIDO Korea Working Group. It is task force created to increase awareness and integration of FIDO authentication standards in the Korean marketplace.



21 of 23 biggest banks, 7 of 8 credit companies and 22 of 47 insurance and securities firms in Korea have adopted the FIDO standard recording highest rate of adoption.

Korean national government having recently proposed to abolish requirements for the use of public certificates, the significance of this standard and tech adoption is only going to increase.

With 11 International Working Groups, FIDO Alliance will set the standard for global FIDO specifications.

(Source: Mobile ID World, Mobile ID World, FIDO Alliance)



Infinitium, a Malaysia-based electronic payments solutions provider with established market footprint of 40+ banks and 180+ million cardholder base within Asia will drive biometric authentication for secured payments in the APAC region.

(Source: Infinitium)



Official partnership with Samsung Electronics KNOX to supply mobile device management (MDM) solutions and collaborate in selling and marketing the security software.

(Source: Raonsecure)



Industry Fact Card Industry Overview Industry: Biometrics



A sector involved in the development and implementation of a variety of technologies in which unique identifiable attributes of people are used for identification and authentication.



Among the features that can be measured are the face, fingerprints, hand geometry, handwriting, iris, retina, vein, and voice. Market Size

(Global):

$ 14.9 billion in 2015

(Source: BCC Research) Market Growth

(Global):

Steadily growing need for security in both the public and private sectors is driving big growth in the biometrics market.



Modality 2015 2020 CAGR All $14.9 billion $41.5 billion 22.7% Fingerprint $8.8 billion $24.4 billion 22.8% Face, iris, vein & voice $4.2 billion $11.9 billion 22.9% (Source: BCC Research)



Longer term projections for the year 2025:

$62.9 billion poised to grow at a CAGR of 22.1% (Source: Research And Markets)

$59.3 billion (Source: Grand View Research)



The Asia Pacific region will be the largest market, due to a combination of massive population, several strong or strongly growing economies, and a growing demand for biometric solutions to manage large initiatives, such as national ID programs. (Source: Tractica) Market Characteristics

(Global):

Wider Acceptance

-----------------------



Biometrics will enter the mainstream consumer mind: 2017 marked a turning point in the global acceptance of biometrics when Apple introduced FaceID in iPhone X release bringing facial recognition acceptance to a new level. Of the back of this, facial recognition will become a mainstream method for mobile payments, retail applications, and secure access on-the-go.



Corporations will increase biometric adoption: increasing interest from the corporate sector in deploying biometric identification systems as part of more comprehensive secure access systems.



Biometrics will take off in multiple industries/sectors:



Growing government initiatives such as e-passports and introduction of other e-government processes is increasing demand for advanced security systems against crimes, frauds, terrorist activities, hackings, etc.,

Global healthcare biometrics market will grow at a CAGR of 22.9 percent (Source: Credence Research). Biometrics will develop beyond access control to solve specific healthcare challenges such as:

Identifying verification of patients and their medical records in real time Non-evasive and touch free biometrics will be used for environments where hygiene is important. Airports will expand use beyond passport control. In motion identification/biometrics at the speed of life will identify travellers on the go. Financial Services, Retail, Healthcare, Industrial, IT and Telecom, Gaming, Hospitality, Education, and Manufacturing to name a few are increasingly using different modalities of biometric technology.

(Source: Biometric Update, Security Expo, Frost & Sullivan)

Blockchain Impact on Industry Fact Card Mainstream facets of identity management that are being tackled by tech innovations such as blockchain and biometrics include:



Decentralization of Identity Currently, we depend on governments to issue identity credentials in the form of specialized documents like passports, birth certificates, and driver's licenses which are physical representations of information kept by a central authority in protected digital storage. Security of Identity Data If lost or stolen, ID documents can be used by identity thieves to wreak havoc on our lives.

Replacing ID documents can be an expensive, painful and arduous process.

Existing digital system of passwords and PINs, no matter how complex, they are vulnerable not only to hackers but also simply forgetting or losing it Online identity management We live in a world where physical presence is an attestation of our identity. So, Proving and securing your online identity is much more difficult. Self-Sovereign Identity (SSI) Self-Sovereign Identity (SSI) is a concept where business entities and individuals have personal ownership and control of their personal data/attributes which can be freely used and distributed at the discretion of the owner/entity.

Existing identity protocols like SAML and OAuth require three parties: you, the resource owner and the identity provider (i.e., "Login with Google", "Login with Facebook", etc.)

SSI facilitates two party authentications where owner provides credentials to a resource owner directly.

The broad consensus of the identity community for the past few years has been that any such service should be decentralized, enforce information integrity, be resilient to attack, and that the individual user should be the ultimate owner and sovereign controller of their own identity credentials. But how will you claim a given identity credential is yours on a blockchain?



To be associated with a claim, you must either know something (e.g., a password), have something (e.g., a token) or be something (e.g., biometrics). But if the password of a blockchain credential is lost, it may be very difficult if not impossible to recover because there is no authority to appeal to for replacement. A token can be lost or stolen, so that leaves biometrics as the strongest candidate for identity credential management on blockchains.



By combining biometrics and blockchain, identity information will be stored in a distributed ledger system which means that the authorities don’t have access to your personal information anymore and you now have the control over your information to choose which information and which authorities to share with.

Share minimum required amount of your personal data

Eliminate biometric embedded physical proof of Identity such as Passport.





Use Cases of the amalgamation of biometrics and DLT/Blockchain:



Public Service Identity

------------------------------





Smart phones sharing data:

An identity app – accessible via smartphone – could allow citizens to share data with government departments and access information, such as tax records or benefit claims

When asked to share personal data with government, citizens would receive a notification on their smartphones, review the request and grant access to that information.

Biometrics securing the system:

By using facial-recognition technology or fingerprint scans through a smartphone, a citizen could authenticate their identity and interact with public services.

An encrypted hash of the biometric data, stored on the smartphone, would be shared through the blockchain, increasing security and giving the individual control

Smart Contracts, automatic transactions:

The smart contract, which would underpin the new identity management model, would determine what personal information was needed to enable citizens to access public services. (Source: Accenture)



Known Traveller Digital Identity

------------------------------------------

The Known Traveller concept is founded on the principle that an individual traveller has control over the use of their own identity and its components such as verified personal biometric, biographic and historical travel data.



The travellers are able to then push their proof of identity and necessary data, secured by distributed ledger technology and cryptography – to governmental and private-sector entities throughout their journey.



This in turn assist authorities to undertake risk assessments and pre-screening in advance: essentially verifying their identities and providing secure and seamless movement throughout their journey.



For example, the Government of Dubai is developing a proof of concept for digital passports that combines biometric verification with blockchain technology. It aims to create a gate-less border, which cuts waiting times and verifies passenger information prior to airport arrival.



Before arrival, a passenger would share relevant personal information, via zero-knowledge proof, with border forces and airlines.

This would enable passengers to be pre-cleared for travel, reducing the overall waiting time.

On arrival, a passenger would simply walk through a biometric ‘tunnel’ that would scan their face, checking this data against the identity app supplied through the blockchain. (Source: Markets Insider, Accenture)



Financial Industry

-------------------------

In terms of banking, deploying biometrics along with blockchain technology can be a huge disruption in the financial industry. Although biometric identification makes it almost impossible for fraudsters to impersonate, the current data storage solutions leave the transaction logs vulnerable to exploit. The immutable and transparent nature of distributed ledger, blockchain-based biometric authentication makes it ideal for maintaining the integrity of transactions and activity logs which is highest priority in financial sector. Transaction records that contain information like: a transaction ID, user ID, date, time, amount, beneficiary, accounts, etc. cannot be hacked or changed and can be tracked down easily.

(Source: Iritech)

theloop and Cyberdigm | Document Management

An MOU between theloop and Cyberdigm Inc. has been signed to develop a blockchain-based contract platform called Chain Sign. The partnership aims to increase the credibility of existing electronic contract systems by providing trust, continuity, immutability and next-generation authentication (Source: Chain Sign comparison table). The platform has already been tested/used in the signing of the MOU of ‘Seoul Fintech Lab’ whereby 33 companies and government officials upon signing on tablet PCs have been issued with hash data which will be stored on the blockchain safe from forgery. (Source: ICON FB) The contract platform can be applied in various fields, but the most actively applied sector is expected to be the frequently-repeated contracts such as rent or utility bills. The contracts could be automated on the platform through the smart contracts, the contents could be tracked and managed on the blockchain itself. As Chain Sign implementation expands to other real-life world applications, it will be able to develop a safe and cost-efficient contract environment.

Partnership Fact Card Partner Overview Name: Cyberdim Inc. Founded: 1998 Description: Cyberdim Inc. is a Korean market leader in content management, document centralization, collaboration, knowledge management and system integration related services.



Business data around the world is a permanent asset. Among them, the document is the basis for conducting the business. The document centralization concept combines an enterprise content management system (ECM), an electronic document management system (EDMS), and a file server. This resolves demand for security and corporate document management simultaneously.



Changing trends in IT resulting in increased demand for secure, reliable private cloud solutions, internal information leakage risks, increased external security threats such as ransomware and strengthening of government legal regulations for content management and information protection are key reasons for the growing need for innovative solutions in document centralization space.



With document centralization as a major business focus for Cyberdigm it offers two types of models for enterprise and SMEs; Destiny Central and Cloudium respectively.



Other Cyberdigm Solutions:

Destiny ECM - Content Management Solution

Destiny KMS - Knowledge Management Solution

Destiny EP - work portal solution

Destiny 6Sigma - 6 Sigma Management Solution

Taskit - Cloud Collaboration Service Cyberdim is paying attention to the block chain technology. And provide services such as electronic contracts, proofs, and proofs based on block chaining. It is computation that it can be made more convenient and secure by making a block chain instead of a PKI or a time stamp in the proof of the electronic document. We are already getting large companies as customers through document centralization, and we think it will be possible to bring enterprise and cloud into a hybrid environment. Once we develop a block chain-based electronic document management product, we are considering a way to link it with existing document centralization solutions. Related products are expected to be in beta in the first half of next year. Size: 2.1 billion KRW capital in 2016

8.529.24 million KRW sales in 2016

(Source: Saramin)



70+ locations over the course of 10 Years

(Source: Cloudium Brochure)



87 executive staff as of Nov 2016

(Source: Cyberdigm Company Profile)



Total 550 + customers in diverse industries:



100 + Public Institutions and government ministries

20+ Education and research institutions

15+ Financial institutions

150+ Enterprises in manufacturing, distribution and telecommunications

(Source: Cloudium Brochure, Cyberdigm)

Product performance:

Destiny ECM

500 000 + users

30 billion + documents

(Source: Cyberdigm Company Profile)

500 000 + users 30 billion + documents (Source: Cyberdigm Company Profile) Cloudium

demand increases by 160% every year

business grows by 130% every year

(Source: Datanet) Japanese enterprise SW market will reach 3.8 trillion KRW by 2020 with SaaS (Software as a Service) at its center. Cyberdigm has entered this large market with its flagship cloud-based document centralized solution expecting 30% of its 2018 sales from Japan.

(Source: DT) Facts: 100% proprietary technology generating performance and system responsiveness with 20 years of system stability and performance.



Selected as a supplier of '2017 Industrial Cluster Cloud Service Application Project' initiated by the Information and Communication Industry Promotion Agency (NIPA) to support SMEs and mid-sized companies in the nation's industrial complexes to introduce cloud-based IT services.



(Source: Datanet)



Cyberdigm’s Taskit acquired Good Software (GS) certification from Korea Information and Communication Technology Association (TTA).



Certified products are designated as priority purchase items when ordering public institution projects.

Marks high-quality software for inducing the activation of the domestic software market and enhancing export support and competitiveness. (Source: ZDNet)

Partner's Networks Fact Card Strategic Partnerships As part of global advancement, Cyberdigm has signed an OEM supply contract with Japan 's IT solution company 'STARTIA'.

STRATIA has been ranked # 1 in the online file sharing market for SMEs for the fifth consecutive year.

More than 1,400 Japanese SMEs are using its cloud service 'Secure Samba' (SAMBA).

Cyberdim will offer the sales rights of Cloudium FS in Japan via the upgraded product "Secure SAMBA PRO" with the security function of Cloudium FS. (Source: ZDNet Korea)



R & S Innovation & Technology will sell Cyberdim's private cloud storage "Cloudium" to Southeast Asia and the Middle East, including Singapore.

(Source: Cyberdigm)



Partnership with JM Technology. AG and the information and technology (IT) affiliates under the Shinaruma Group to reach Indonesia, Malaysia, Singapore, Thailand markets.

(Source: ENet)

Industry Fact Card Industry Overview Industry: Document Management



A sector involved in coordination and control of the flow (storage, retrieval, processing, printing, routing, and distribution) of electronic and paper documents in a secure and efficient manner, to ensure that they are accessible to authorized personnel as and when required. Market Size

(Global):

$3.59 billion in 2017

(Source: Research And Markets) Market Growth

(Global):

Growth in DMS market is supported by an increasing need to streamline business operations as well as a shift towards paperless enterprises as content is digitalized and compliance requirements grow stricter.

The market is expected to reach USD 6.78 billion by 2023 with a compounded annual growth rate of 11.17%. (Source: Markets And Research)

Larger share of market expected to be captured by document management solutions which integrate DMS with real-time data, enabling the storage of multiple versions of the same document to be easily retrieved from safe storage.

The fastest growing segment is predicted to be the hybrid deployment model which allows organizations to move their sensitive data to a more secure private cloud while the rest is able to remain on a public cloud.

North America’s demand for cost-effective business process solutions makes it a significant region in the adoption of document management solutions over growth period. (Source: PR Newswire)

Blockchain Impact on Industry Fact Card How DLT will benefit document management? Some use cases:



Document encryption on blockchain:

Documents are stored on the blockchain and some of the data is encrypted by means of public key cryptography such that only parties involved can access the data.

A private key corresponding to the public key is required to view the data.

The security is reinforced by secret sharing scheme whereby the secret key is divided into several fragments such that each involved party posses a unique piece.

Authentication/verification of digital assets:

While there are many ways to verify the authenticity of paper documents, including watermarks, signatures and embossed seals, digital assets can be modified copied easily at present.

Blockchain enables people who don't know each other to engage in trusted transactions with full confidence in the integrity of the assets being exchanged.

It does so by embedding authentication into the document itself and using a closed loop tracking system to protect against tampering or modification.

Secure document transfer:

Blockchain can be used to create an environment where legal/confidential transactions can be processed safely and with no third-party intermediary required.

Documents can be stored and transferred for various kinds of financial, legal or any other types of documents, such as agreements, ownership clauses, private photos and more. (Source: Fijitsu, Iron Mountain, Eleks)

ICON and Kyber Network | Decentralized Exchange

ICON and Kyber Network have formed a timely partnership whereby Kyber Network will connect its token conversion services to ICON’s inter-blockchain network. The partnership strategically accelerates inter-chain token exchange developments in the space, thereby delivering utility for different decentralized applications across chains. As more blockchains and institutions participate in the ICON Network, transaction volume will increase exponentially, leading to a network effect and the rise of truly borderless communities. Kyber Network hopes to launch cross chain trading in early 2019 and by partnering with ICON, it will gain a large partner to help it grow and test its technology ultimately benefiting the adoption of decentralized exchanges and associated benefits for the larger ecosystem.

Partnership Fact Card Partner Overview Name: Kyber Network Founded: 2017 Description: Kyber Network is a trustless decentralized exchange and payment service that enables users to perform trades whilst keeping possession of their assets based on atomic swap. Four key focuses:



Exchange

An on-chain protocol which allows instant exchange and conversion of digital assets (e.g. crypto tokens) and cryptocurrencies (e.g. Ether, Bitcoin, ZCash) with high liquidity.

Many exchanges offer these operating properties but Kyber Network offer all of these features:

Trustless

decentralized execution

instant trade

high liquidity

on-chain trade

secure against attacks

locked-in conversion rate By utilizing smart contracts, Kyber Network ensures users do not need to hold their assets on the exchange which eliminates KYC delays, deposit and withdrawal restrictions as well removing opportunities for hacking and fraud. Proxy Payments

Kyber Network also provides payment APIs that will allow Ethereum accounts to easily receive payments from any crypto tokens. Cross Chain Payments

Although running on the Ethereum network, Kyber Network’s roadmap includes supporting cross-chain trades between different cryptocurrencies using relays and future protocols. Derivatives

Derivatives will be introduced to mitigate the exposure to the risk of volatilities for the users of Kyber Network Crystals (KNC) and selected cryptocurrencies. This will allow users to hedge their positions and mitigate price fluctuations. (Source: Kyber Network Whitepaper) Size: 148.3 million USD market cap

(Source: Coinmarketcap) Facts: Roadmap:

Q1/2018 – Mainnet launch, trading between tokens and ETH

Q2/2018 – Support ERC-20 token to ERC-20 token conversion

Q4/2018 – Support trading advanced financial instruments

Early 2019 – Support cross chain trading

(Source: Kyber Network)



The Kyber Network platform with 10 tokens will be available for public use as of April 2018 once the current pilot program is completed.

(Source: ICO Examiner)



Difference between Bancor Protocol and Kyber Network:

Bancor uses a fixed formula to determine the price of the token, while Kyber Network lets the reserve managers determine the price.

(Source: Bitcoinexchange)



Comparison to other exchanges:

(Source: Kyber Network Whitepaper)







Reputable advisor panel including Ethereum’s Vitalik Buterin, Leng Hoe Lon (Co-Founder of Shentilium) and Prateek Saxena (research professor of computer science at the National University of Singapore).

(Source: Kyber Network)



Supported by Industry leading names such as Pantera, Kenetic Capital, #Hashed, Danhua Capital amongst others.

(Source: Kyber Network)

Partner's Networks Fact Card Strategic Partnerships Kyber Network segments its partnerships into three categories:

Reserves: the supply-side, which comprises of liquidity providers Traffic Generators: the demand-side, which generates transaction volume and drives traffic to Kyber Network Research/Protocol: to substantiate further analysis and examination of the platform components, mainly to improve the effectiveness and efficiency of on-chain or cross-chain transactions.

Reserves

-------------

Prycto, fully operational independent liquidity provider aiming to be the largest reserve and market maker for DEX. Two key functions provided to Kyber Network by Prycto are:

reserve management service through the use smart management technology and AI algorithms to determine adaptive exchange rates, ensuring that Kyber users get accurate and consistent prices.

funds for the supply of liquidity to the Kyber Exchange starting with KNC, EOS, OMG, and BAT with more to be added in future. (Source: Kyber Network Blog)



Enigma’s landmark product, Catalyst is a machine-based investing platform and trading infrastructure for digital assets. It will be used to support reserve operators on KyberNetwork, while KyberNetwork will integrate with Catalyst as a data provider and as an exchange service. (Source: Kyber Network Blog)



Traffic Generators

------------------------



Coin Manager, Korea’s No. 1 Wallet Provider and portfolio tracker supports 75 exchanges and 5000 coins boasting over 350,000 downloads of the mobile app, 295,000 monthly active users, and 3 million recorded sessions per month. It is also the largest Ethereum wallet in Korea, one of the biggest crypto markets in the world. Kyber Network expands its reach in Korea by integrating its token conversion protocol with Coin Manager’s multi-coin wallet allowing for in-wallet exchange of supported tokens.

(Source: Kyber Network Blog)



Trust Wallet: an Ethereum wallet available worldwide on iOS and Android with a significant user base in the US, UK, and Russia.

(Source: Kyber Network Blog)



imToken: China’s leading mobile wallet app available on Android and IOS with 350 000 users worldwide.

(Source: Kyber Network Blog)



Change Wallet: Singapore based comprehensive mobile finance app that aims to become a one-stop decentralized platform for all things finance such as payments, storage, investments, peer-to-peer loans, fund transfers.

(Source: Medium Change Finance)



Coinduck is a Korea based Ethereum payment service built by Chain Partners. With more than 100 small business partnerships, it is on a mission to expand crypto payments in everyday transactions whereby merchants online/offline are able to provide their wallet addresses and customers send the payable amount instantly in Ether at live exchange rates in just 5 seconds. It is compatible with all mobile wallets in Korea and all exchanges worldwide. Kyber Network collaboration:

integrate token conversion protocol with Coinduck service diversifying the accepted means of payment from Ether only to all ERC-20 tokens (including KNC).

Gain access to off line businesses a crucial step for blockchain adoption

Create link between crypto space and fiat space in Korea. (Source: Kyber Network Blog)



Request Network is a decentralized network for payment requests which allows individuals and businesses to request funds from just about anywhere. It has been regarded as “More than PayPal 2.0, a financial platform for blockchain”. Read more at Request Speculative Handbook). The collaboration means:



Kyber Network will be added as a payment option for users and merchants on Request Network



Merchants will be able to leverage Kyber Network for seamless cross token transactions



Simplify and eliminate repetition in REQ burning process. (Source: Kyber Network Blog)



Selfkey, a blockchain based self-sovereign identity ecosystem that empowers individuals and businesses with full ownership of their personal digital identity. Selfkey’s digital identity wallet enables users to create their ID and share it with service providers listed in the Selfkey marketplace. The collaboration will mean Kyber Network DEX will be integrated into Selfkey Wallet enabling users to trade a broad range of ERC20 tokens from within the wallet application. This type of partnership will facilitate more companies to recognize the success of Kyber Network and seek to incorporate the exchange into their services.

(Source: Kyber Network Blog)



WAX (Worldwide Asset eXchange), a decentralized trading platform for video game virtual assets, powered by the executive team behind OPSkins marketplace, with millions of users and over 200,000 new user registrations each month and recording 150 million transactions over 18 months.

(Source: Kyber Network Blog)



RCN is a peer-to-peer global credit protocol that uses cosigned smart contracts to connect lenders and borrowers anywhere on the globe on any currency.

(Source: Kyber Network Blog)



Aptoide: one of the largest Android app stores in the world, boasting 200 million users and over 4 billion downloads. With AppCoins (currency of the app economy), users can earn tokens through engaging with app advertising and then spend this currency on in-app purchases (such as game items).

(Source: Kyber Network Blog)



StormX: the company behind Storm Market, a blockchain based platform that will utilize smart contracts on the Ethereum blockchain to manage gamified micro-tasks between buyers and sellers.

(Source: Kyber Network Blog)



Gifto: a decentralized virtual gifting protocol that incentivizes and monetizes content generation by individual content creators worldwide.

(Source: Kyber Network Blog)



Aditus: The world’s first luxury access platform, bridging luxury merchants and crypto-affluents via a revolutionary decentralized network, in which users enjoy superior privacy. (Source: Kyber Network Blog)



BitClave: A decentralized search engine that helps users search for items without losing control of their own personal information and incentivizes search clicks making third-party advertising network unnecessary.

(Source: Kyber Network Blog)



Research/Protocol

-------------------------

Wanchain is a China based private cross-chain smart contract protocol that champions a universal decentralized financial market for digital assets by bridging isolated chains. The Wanchain ledger supports not only smart contracts, but also token exchange privacy protection. It raised 36 million USD at ICO, boasts 90k Twitter followers & 26.6K Telegram members and has formed a Blockchain Interoperability Alliance with ICON and AION. (Read more at Wanchain Speculative Handbook).



Kyber Network collaboration with Wanchain will entail:



Advising i.e. sharing marketing, public relations, community and partnership building contacts between the two teams



Building DEX on Wanchain platform and providing liquidity for the DEX.



Working on PeaceRelay Project, aimed at allowing communication and interaction between different Ethereum-forked blockchains, i.e Ethereum and Ethereum Classic. Wanchain, as a fork of Ethereum, will add valuable resources to the project, helping to access and combine other Ethereum-forked blockchains. (Source: Kyber Network Blog)



Blockchain at Berkeley, a student run crypto group comprising of over 40person blockchain consultant agency. The partnership with this world class academic institute seeks innovative reserve management and trading strategies that could benefit all involved parties of blockchain ecosystem and provide Kyber network with confidence to onboard reserve operators from different organizations to improve liquidity.

(Source: Kyber Network Blog)



Traceto, a decentralised Know Your Customer (KYC) network and was the service provider for Kyber Network’s ICO related KYC process. The continued collaboration will enhance Kyber Network’s KYC program.

(Source: Kyber Network Blog)

Industry Fact Card Industry Overview Industry: Decentralized Exchange (DEX)



A sector that is involved in operating an exchange market that does not rely on a third-party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. Market Size

(Global):

99 % of cryptocurrency transactions are completed on centralized exchanges at time of writing.

(Source: Consensys)



Cryptocurrencies: 1563

Markets: 10, 207

Market Cap



Jan 2018: USD 600+ Billion

Apr 2018: USD 260+ Billion

24 Hour Vol Apr 2018: ¬ USD 11.5 Billion (Source: CMC) Market Growth

(Global):

Bank of International Settlements assessed the daily trading volume of the global FOREX market at $5.1 trillion (USD). By extrapolating the cryptocurrency market's current growth rate, the cryptocurrency market may achieve similar volumes as the FOREX market within 3 years. Therefore, we may soon live in a new reality where the cryptocurrency exchange market will dominate over global fiat markets.

(Source: Streamity)



Leading exchanges such as Binance, currently the number one in the world recording over $1.5 billion in daily volume are developing decentralized exchanges with the vision that “centralized and Decentralized exchanges will co-exist in the near future, complementing each other, while also having interdependence.” (Binance)

(Source: Crypto Slate)



With 60+ projects (not exhaustive) across both protocol and application of decentralized exchange underway, and open source protocol projects such as 0x indicate a strong trend towards decentralized exchanges.

(Source: Consensys) Market Characteristics

(Global):

Adoption of DEXs

--------------------------

Various projects are working on addressing issues faced by existing decentralized exchange platforms with an aim to progress the technology towards wider adoption and use. To name a few:

Binance, the largest cryptocurrency exchange by volume will be launching Binance Chain with a focus on

- transfer and trading of blockchain assets

- performance

- ease-of-use

- liquidity

(Source: Binance)

- transfer and trading of blockchain assets - performance - ease-of-use - liquidity (Source: Binance) Decentralized platforms such as Kyber network tackling liquidity issues reduce the barrier for users to make the transition from centralized to decentralized exchanges. (Source: Bitcoin Magazine)

Asset agnostic decentralized exchanges such as Bitshares increase the scope of trade pairs available, and thus contribute to facilitating the transition to decentralized exchanges. (Source: Bitshares)

From company to community

--------------------------------------

As centralized exchanges transition to decentralized systems or a hybrid thereof, there is an inevitable transition for these exchanges from being a company to a community. ( Source: Coin Telegraph)

Blockchain Impact on Industry Fact Card With their simple interfaces and mainstream-ready infrastructure, centralized exchanges facilitate 99 % of cryptocurrency transactions today.

Advanced features

Easy to use

Advanced tools

Liquidity

Issues with centralized exchanges:

Insecurity: by operating on off-chain systems (servers) it is vulnerable to security breach and hack of information, funds and private keys

Lack of trust and transparency

High risk: regulatory risk, performance issues, market manipulation, hardware failures, latency problems etc.

Exchange network control the funds (centralization)

Decentralized Exchanges (DEXs) tackle the above problems by building peer to peer marketplaces on the blockchain allowing

traders to be the custodian of funds

anonymity

secure and transparent transactions – no risk of server hack

faster and cheaper transactions

seamless integration with secure hardware wallets

no personal documents to apply or register

no risk of server downtime

Issues with Decentralized Exchanges:

Lack of liquidity, chicken and egg problem

Technology has usability, scalability, speed and interoperability challenges

Accessibility to fiat or stable coin

Front running by miners

Lack of awareness among potential users

Some exchanges require users to be online in order for an order to be listed and for the trade to take place

Hybrid models of centralized and decentralized marketplaces also makeup the landscape trying to deliver best of both worlds as fully decentralized exchanges continue to work on adoption challenges.

(Source: Consensys, FYN, SingluarDTV)

DAYLI Intelligence, theloop & Woori Bank | Banking



A business agreement for cooperation in the blockchain and digital money business has been forged between DAYLI Intelligence, theloop and Woori bank. In addition to internal verification of the blockchain technology, issuance, use and charging of Woori Bank’s Weebee coin (digital money based on blockchain) will also form the collaborative nature of the partnership. While the immediate cooperation comes in the form of using U-Coin’s (DAYLI Intelligence and theloop’s digital currency project in collaboration with three Korean universities) transaction method to introduce Weebee coin, it is expected that this mutually beneficial relationship will continue to expand to other financial services to which the technology is applied in the future. Weebee coin, a tether equivalent, will be the first electronic money in Korea to be exchanged 1:1 with fiat currency (WON). This will be charged to a card or smartphone, smart vending machines, and merchants will be able to make simple payments and simple remittances. The introduction of the coin brings many benefits including the below as a start:

cost savings gained from not needing to build dedicated network for utilizing the electronic money

safety from cyber attacks and hacks

utility/reach beyond the domestic use

reduction in overseas transaction costs

Partnership Fact Card Partner Overview Name: Woori Bank Co., Ltd Founded: 1899, Celebrates 119th anniversary this year.



Woori Bank was the first Korean bank to be established with royal funds under the approval of Emperor Gojong and continued its growth through the late Chosun period, the Industrial Revolution, the Asian financial crisis, and the recent global financial crisis to become one of the most prominent banks in the nation.

(Source: Wooribank) Description: Woori Bank together with its subsidiaries, provides commercial banking products and services to individuals, small- and medium-sized enterprises, and large corporations in South Korea.



It operates through six segments: Consumer Banking, Corporate Banking, Investment Banking, Capital Markets, Credit Card, and Other Operations.



Renown for being trustworthy partner during historic moments, Woori Bank is at the forefront of building a framework for modern finance for South Korea. It has been working on new business models and services by implementing new technologies such as blockchain and internet of things (IoT). Size: 10.546 trillion KRW Market Cap

(Source: Bloomberg)



317.875 trillion KRW Assets

(Source: RelBanks)



15 000+ employees

21+ million customers

900 domestic branches

10 overseas subsidiaries

19 overseas branches

250 contact points internationally

(Source: RelBanks)



2nd largest bank in South Korea

(Source: Reuters)



Korea’s bank with the most global network

(Source: Woori Bank Annual Report 2015)



Woori Bank is the primary banking partner for more than 70% of Korean public institutions.(Source: World Finance)



Woori Bank is the main banking partner of large corporations including Samsung, LG, POSCO etc.

(Source: World Finance) Facts: Launched the 1st mobile bank ‘WiBee Bank’

to open a new mid-level interest rate loan market

to cultivate innovative markets for FinTech as an internet bank.

Added an online marketplace and community function to WiBee Bank and WiBee Talk platforms so that they can be expanded into lifestyle products (Source: Woori Bank Annual Report 2015)



Fitch Rating Agency:

Woori Bank will be supported by the South Korean government if necessary due to its systemic importance as the second-largest bank in Korea, with 13% and 15% of the banking system's loans and deposits, respectively.

Expects Woori Bank to be more commercially driven than previously, when the government owned a majority of the bank through Korea Deposit Insurance Corporation (KDIC)

Woori Bank's Long-Term Issuer-Default Rating (IDR) at 'A

Woori Bank's Viability Rating at 'bbb+ upgraded from ‘bbb’ (Source: Reuters)



Woori Bank absorbed Woori Financial Group in 2014

The merger of the de facto holding company into the bank is part of the privatization of the bank.

Phase 1, sold two regional banks: Kwangju Bank & Kyongnam Bank

Phase 2, sold 6 non-bank subsidiaries: Woori Investment & Securities, Woori Aviva Life Insurance, Woori FG Savings Bank, Woori Asset Management, Woori Financial and Woori F&I. (Source: Korea Joongang Daily)

Partner's Networks Fact Card Strategic Partnerships SBI Ripple Asia, a joint venture among Ripple and many leading banks of the Asian region. Woori Bank joins Ripple’s platform for cross border remittances and plans to commercialize it in 2018. The main aim of piloting Ripple’s blockchain for cross border remittances is to increase the efficiencies of banks by eliminating the role of middlemen banks.

(Source: Ripple Coin News)



Coinone, South Korean Bitcoin Exchange is leading a FinTech consortium with five financial institutions toward the development of blockchain solutions including Woori Bank. The consortium lays a list of priorities:



development and deployment of FinTech using blockchain



establishment of new FinTech services for every consortium member in their own platforms.



coordination of communication with institutional and supervisory authorities.

(Source: CCN)

Industry Fact Card Industry Overview Industry: Banking (Finance)



An industry made up banks and other financial institutions that handles cash, credit and other financial transactions. Market Size

(Global):

Market Cap

$6.2 trillion in August 2016



Revenue

$4780 billion in 2015

North America: $1348 billion

Continental Europe: $724 billion

United Kingdom: $215 billion

Japan: $198 billion

Other developed: $329 billion

China: $939 billion

Emerging Asia: $294 billion

Latin America: $384 billion

EEMEA: $350 billion (Source: Mckinsey) Market Growth

(Global):

Market Cap

Reduced from 7.3 trillion in Jan 2015 to 6.2 trillion in Aug 2016; -14%



Revenue

Growth 2010–2014: 6%

Growth 2014–2015: 6.7%



McKinsey, in its 2016 Global Banking Annual Review reported bank ROEs at about 9.5 percent, with a divide between developed and emerging markets.

For banks in many developed markets, ROEs were below the cost of equity.

In emerging markets, revenue growth had slowed in line with the macroeconomy

It predicted that in both markets, profits could face additional pressure in coming years from three forces

Continued economic weakness and low growth

In developed markets, loose monetary policy designed to stimulate the macroeconomy will continue to choke banks’ Net Interest Income.

Emerging markets, though structurally more profitable may enter into a downward credit cycle as the global economy slows further, hurting local economies.

Digital disruption is more likely in profit-challenged markets where banks are unable to invest adequately to stay competitive with digital attackers; UK and Europe susceptible Ernst & Young, in its Global Banking Outlook 2018 reports that



after a decade of rising capital, globally, banks’ capitalization is improving

growing optimism in industry that ROE could be headed for sustainable double digit (11% in 2017)

survey of 221 financial institutions across 29 markets reveals that bankers are positive about their ability to improve their financial performance in 2018 and beyond

The vast majority of banks expect revenues and profitability to improve over the next 12 months to 3 years, despite rising costs.

However cost and competitive challenges remain:

Cost pressure: higher compliance costs, the burden of maintaining legacy systems, and elevated restructuring and litigation charges meant that cost-to-income ratio did not improve in the last decade and is only expected to increase in line with growth initiatives and cyber security spending.

Subdued income prospects: increase in central bank interest rates is only putting a bandage on the problem, not fixing it. Higher interest rates would also naturally lead to a rise in defaults and loan losses, increasing the cost of credit and offsetting improvements in net interest income, particularly in cyclical downturn.

Accelerating competitive challenges: new market entrants, including digital banks, FinTechs, institutions offering high-touch and high-tech branch services, e-commerce and telecommunications firms, and in some markets, platform banking providers are offering simpler, convenient, transparent and personalized services to meet changing customer behavior.

Recent constructive conditions are unlikely to be Permanent.



Banks must do less themselves and make extensive use of an ecosystem of industry utilities and a diverse range of partners to support investment, deliver better services, drive out costs, manage risks and protect their organizations. Market Characteristics

(Global):

Adoption of Technology

------------------------------



Investment in technology to drive efficiency, manage evolving risks and benefit from growth opportunities will be critical for sustainable success.

85% of banks citing implementation of a digital transformation program as a business priority for 2018

70% of banks will invest in technology to strengthen their competitive positioning and build market share over the coming three years.

62% of global banks expect to be digitally mature in 2020, compared with just 19% in 2018.

Adoption of FinTech providers for money transfer and payment services rose from 18% in 2015 to 50% in 2017.

From Silo to Ecosystem

--------------------------------



Rapid evolution of new technology means many banks will struggle to keep up in an innovation arms race. As such, banks need to do more to embrace the shift from innovating in a silo to participating in an innovative ecosystem and collaborating with partners and peers.



Macro themes

-------------------

Customer centricity: radical departure from a sales-and product-obsessed mindset to one of genuine customer centricity

Regulatory recalibration: modernize regulatory compliance and bring together disparate silos created for individual compliance goals

Technology management

Mitigating cyber risk

FinTechs: FinTechs continue to lead innovation in the banking industry by sharpening their focus on customer experience. Banks can

- replicate what FinTechs are doing

- respond with equally innovative solution

- become more symbiotic and less competitive

- replicate what FinTechs are doing - respond with equally innovative solution - become more symbiotic and less competitive Importance of Workforce: Increasing automation and greater diversity of in the labor pool. (Source: Ernst & Young, Deloitte)

Blockchain Impact on Industry Fact Card Banks are continuously exploring new ways to perform transactions quicker for an enhanced customer service, while ensuring cost efficiency in its operations and assuring transparency to customers and regulators.



Whether it’s payments, settlements or compliance, blockchain’s key properties of decentralization, immutability, efficiency, cost-effectiveness and security are leading to a growing chorus of support for the technology’s adoption in the industry.



How DLT will benefit banking, some use cases for example:



Cash Management

------------------------

Process and settlement of local payment schemes such as domestic real-time infrastructure, local cash pooling

Cross-border payments

Current accounts, a virtual layer to integrate core banking systems and platforms for multinational banks

Liquidity management, extension of cash pooling to allow virtual pooling, netting, sweeping etc.

Trade and Finance

------------------------

Digitization of paper-based documents and contracts, documents supporting financing such as invoices etc.



Blockchain based digital currency

-------------------------------------------

Primarily used to quickly clear and settle financial transactions using blockchain. The aim is to reduce the time, cost and capital required for the post-trade clearing and settlement process, as well as to improve financial-market efficiency.



Vendor Financing

------------------------

Bank’s vendor financing program provides credit facilities such as Letter of credit, Bill discounting and financing against purchase orders and invoices. Banks also provide structured financing services against confirmed purchase orders from their customers. Blockchain will enable:

Automated documentation

Real-time settlement of transaction

Real-time tracking of transaction

Fraud proof process

Customer Loyalty Programs

------------------------------------

Loyalty/reward points are an integral part of the customer retention strategy across industries, and especially for banks with a significant retail business. Blockchain will enable:

Standardize reward tokens

Smooth integration of new merchants

Instant gratification and real-time tracking of reward points

Unanimous consensus of reward points

Syndicated Loans

------------------------

Corporations undertake multiple large projects such as development of roads, train systems, airports, factories, new business centers, etc., which requires large-scale financing. Procuring these large funds necessitate the institutions to come together to form syndicates and diversify the financial risk among its members.



The corporate clients seeking the loan initiates contact with a Lead Arranger, which coordinates with syndicate members, manages and administers the entire process. The Lead Arranger carries out a KYC for the client, forms a syndicate of members which are willing to fund a percentage of the loan and diversify the risk, and takes on underwriting of the loan.



Implementation of Blockchain would lead to cost savings in the range of 70-80% for a syndicate loan transaction facilitated by banks.

Faster syndicate information

Digitization of documents

Quicker KYC for clients

Technology Integration

Reduced settlement periods

Document immutability

Letter of Guarantee Network

-------------------------------------

Built on blockchain, it will simplify and expedite procedures for a bank’s Letter of Guarantee process, including

Strengthening security and reducing costs for both the customer and the bank.

Paperless solution facilitating a more convenient flow of information between banks and customers

Transparency is improved over incumbent guarantee processes, which in turn minimizes the potential for forgery

Reduced time to complete the process

KYC, Trading Platforms, Payments, Fraud Reduction and so the list goes on.

(Source: McKinsey, Deloitte, International Banker, Blockchain APAC )

theloop & NongHyup Bank | Banking

The partnership between theloop and NongHyup Bank brings together one of the nation’s largest players in the financial sector in a powerful collaboration with one of the leading blockchain technology developers. Through cooperation with NongHyup Bank, theloop will lead the way in building a variety of digital financial platforms based on blockchain; consequently, opening doors to a myriad of real-world implementations of the technology in the finance sectors. The two companies will work together on promoting financial API and blockchain use cases through technology research, projects, open seminars, and hackathons.

Partnership Fact Card Partner Overview Name: NongHyup Bank (NH Bank) Founded: 2012 Description: NongHyup Bank (NH Bank) is a subsidiary of NongHyup Financial Group Inc (NHFG) which, in turn, is wholly owned National Agricultural Cooperative Federation (NACF).



NACF is a multipurpose cooperative with four main business divisions: agricultural marketing and supply livestock marketing and supply banking and insurance and the extension service, which offers guidance. Following a restructuring in 2012, the NACF now serves its members and customers through 27 subsidiaries and two affiliate organizations and 4000+ branches. It represents 2.44 million individual members from 1,165-member cooperatives: more than 80% of all the Korean farmers.

(Source: Stories.coop)



NHFG, the financial sector of NACY acquired brokerage units of Woori Financial Group in 2014 making it the 4th largest player in the industry with 7 subsidiaries. As of June 30, NHFG had total assets of 381.6 trillion won (US$333 Billion).

(Source: Relbanks)



NongHyup Bank provides specialized agricultural and commercial credit and banking services in South Korea. The company operates in four segments: Personal Financing, Corporate Financing, Card, and Others.

(Source: Bloomberg)



Blockchain & FinTech projects:

variety of digital financial platforms based on blockchain.

promoting financial API and blockchain use cases through technology research, projects, open seminars, and hackathons. Size: 290.657 trillion KRW in total assets in June 2017.

(Source: Relbanks)



20 million customers

(Source: NHFG)



1,200 branches

(Source: Relbanks)



132 000 + Employees

13 000 + Executives

(Source: Business Korea)



NHB is the third-largest commercial lender in Korea.

(Source: ICON Medium) Facts: In 2013, “Asian Banker” selected NongHyup Bank as the Best Credit Risk Management Bank.

(Source: ICON Medium)



Nonghyup Bank has spent 92.3 billion won (US$82.78 million) on corporate social responsibility (CSR) activities last year, the highest figure in the banking industry.

(Source: Business Korea)



NH Nonghyup Bank newly established a block-chain professional workforce training program in March 2018.



The curriculum, which is held every 3 months, is aimed at the executives of Korean National Agricultural College (KNAC) affiliates. In addition to the block chain theory, the curriculum focuses on practical subjects, which are expected to actively respond to changes in business contacts.

(Source: ET News)

Partner's Networks Fact Card Strategic Partnerships Member of R3CEV, the world’s largest blockchain consortium of 160+ global financial companies with a focus on R3; a blockchain technology developer which is developing and testing systems that can apply blockchain technology to financial services. Nonghyup Bank will collaborate with enterprise focused groups and acquire technology by joining the consortium and apply it to the bank’s various financial and economic sectors.

(Source: Business Korea)



Member of the Capital Markets Consortium of South Korea. Refer to details above.

(Source: Coindesk )



Participant in a joint certification consortium based on the blockbusters of the Federation of Korean Banks to foster block-chain professionals.

(Source: News Naver)

theloop & Capital Markets Consortium | Capital Markets

The capital markets consortium is made up of 27 securities firms helmed by KOFIA. The consortium launched a first of its kind blockchain based personal authentication service called “Chain ID”. It enables direct authentication and generation/verification of digital signatures without third parties, reduces authentication cost by as much as 9/10ths, provides higher protection against data falsification and is valid for 3 years instead of the previous yearly renewal. The consortium also plans to expand its services to capital market processes, including clearing and settlement automation in 2018/2019 and over-the-counter trading of bonds and derivatives in 2020.

Please refer to details regarding the constituents of the Capital Markets Consortium in Tier 1 partnerships for ICON in our previous post.



Industry Fact Card Industry Overview Industry: Capital Markets (Finance)



A financial market in which securities such as shares, and bonds are bought and sold. Capital markets channel the wealth of savers to those who can put it to mid to long term productive use.



Capital markets will play an increasingly important role in providing everything from financing to the world’s most innovative companies to generating the investment returns needed to support an ageing population in the developed world. Market Size

(Global):

$209 trillion in 2010; up from $12 trillion in 1980, and $53 trillion in 1993.

(Source: Mckinsey) Market Growth

(Global):

In comparison to the previous five years, 2016 performance was decent with 5% YOY total industry revenues.

Investment banking revenue continues to decline but at a lower rate

Exchanges & venues, information providers, buy-side institutions realized revenue gains

Forecast for 2020:

Entity USD Growth Asset based buy side fees $300 billion Increase to 45% of total capital markets revenue pool Investment banks on sell side $205 billion Decrease to 31% of total capital markets revenue pool from 53% in 2006. Information providers & Exchanges $125 billion Increase to 19%of capital markets revenue pool; from 8% in 2006 While some large and niche players in investment banking will take market share from retrenching ones, others will have to adapt alternative revenue opportunities beyond traditional roles as capital raisers and market makers.



(Source: Boston Consulting Group 2017, 2016 ) Market Characteristics

(Global):

Shift from Banks to Nonbanks

--------------------------------------



According to Boston Consulting Group, the value migration is taking place:

From smaller investment banks to large universal banks

From players without a specific niche to those with a concentrated focus, such as boutiques specializing in M&A

From regulated to unregulated entities

From firms with weaker digital capabilities to data- and tech-savvy firms

From players without a distinct informational advantage to those with proprietary data and insights

Other evolutions in the market include:

Rise of data and technology driven value

Evolving regulatory environment of uncertainty for banks and advantages to nonbanks

Shift in market structure away from traditional models to innovative platforms

Adoption of Technology

-------------------------------



Emerging technologies such as DLT, RPA and AI are disrupting the ecosystem. Banks must leverage these to remain relevant. DLT especially has disrupted the industry and is expected to drive efficiencies and replace market intermediaries.



Capital Markets Blockchain Investments with a CAGR of 54%:

2014 2015 2019 $30 million $75 million $400 million (Source: Accenture Research, eFinancial News)



Evolution of Blockchain in capital markets:

2015: Exploration and Investment Initial capability and use case assessment Early adoption like internal reconciliation

2016 – 2017: Early adoption Leading banks begin deployment for asset classes that are bilaterally traded and/or have no central clearing authority Regulatory authorities realize benefits related to auditing and compliance

2018-2024: Growth Banks begin to see benefits enjoyed by early adopters combined with more stable regulatory guidance, network effect unfolds Deployments across numerous assets New service providers, models and products and services emerge Incumbent processes and services are discarded

2025: Maturity Adoption is mainstream DLT is integral part of capital markets ecosystem

(Source: Accenture Research)

Blockchain Impact on Industry Fact Card DLT offers a new architecture, where all capital market participants work from common data sets, in near real-time, and where supporting operations are either streamlined or made redundant.



Applications of DLT to capital markets

------------------------------------------------



Securities transaction:



Automatic verification that both parties have the means to complete transaction

Both parties jointly ‘sign’ the transaction by applying their private keys to unlock their asset or cash, and then by transferring ownership to the recipient via their public key.

Asset servicing:



New assets are issued directly on the ledger

Mandatory events and distributions can be managed via smart contracts embedded within the securities.

With flat accounting, the multiple custody layers are shrunk to a single function

Derivative Transaction:



Unbundled securities enable new financial Engineering whereby specialists construct bespoke instruments consisting of individual cash flows that meet precise needs in terms of timing and credit risk.

derivatives created as preprogrammed smart contracts, capturing the obligations of the two counterparties



How DLT will benefit Capital Markets

-----------------------------------------------

Pre-Trade:



Transparency and verification of holdings

Reduced credit exposures

Mutualisation of static data

Simpler KYC/KYCC via look through to holdings

Trade:



Secure, real-time transaction matching, and immediate irrevocable settlement

Automatic Delivery versus Payment (DVP) on a cash ledger

Automatic reporting & more transparent supervision for market authorities

Higher Anti Money Laundering (AML) standards

Post Trade:



No central clearing for real-time cash transactions

Reduced margin/ collateral requirements

Faster novation and efficient post-trade processing

Fungible use of assets on blockchains as collateral

Auto-execution of smart contracts



Securities Servicing:



Primary issuance directly onto a blockchain

Automation and deduplication of servicing processes

Richer central datasets with flat accounting hierarchies

Common reference data

Fund subscriptions/ redemptions processed automatically on the blockchain

Simplification of fund servicing, accounting, allocations and administration

Faster clearing and settlement:

Once a transaction is confirmed and committed to the ledger, the associated token has also settled in the wallet of the beneficial owner reducing cost and lowering counter party settlement risk and fraud.



Ledger consolidation:

Consolidation of proprietary ledgers into a single data model for reporting purposes.



Consolidated audit trail:

Detailed and precise histories of asset movements that can be made transparent for authorized compliance activities



Reduction in systematic risk:

Eliminate credit and liquidity risk by requiring pre-funding prior to trading



Operational improvements:

Instrument standardization and alignment of terms in advance of blockchain trading would eliminate a number of middle- and back-office processes.



Challenges to be overcome

------------------------------------



Recourse:

While immutability of transactions is an important value proposition, it’s also a hurdle as capital markets participants will need to agree on recourse mechanisms to be pre-programmed.



Digitization of assets:

Getting all parties to agree on standard terms, digital descriptors, transaction models ahead of time is not simple. And “finality of settlement” requires radical legal and regulatory work.



Asset disposition:

Not all assets can be fully digitized. DAPPs may need to synchronize the digital ledger with the physical world.



Cash ledger:

Short of fiat currency being recorded on a blockchain, an interoperable cash ledger will require some intermediary step. Stable cryptocurrencies will need to be tackled.



Position netting:

While discrete or grossed up position tracking of assets such as real estate is intuitive to Blockchain, position netting is not and it is vital to financial instruments like cleared derivatives and their associated collateral. Failure to address position netting will result in higher capital and resource requirements in an environment where banks are focused on efficiency and streamlined use of resources.



Regulation and legislation:

Considerable number of aspects of law will also need to be reinterpreted or changed through primary law.



Scalability of the technology:

To match centralized alternatives need to be achieved to meet the processing power needs of the industry successfully



Operational risk of transition:

Careful planning for potential technical failures required



Cultural resistance:

Internal resistance from established institutions particularly if change implies lower profitability, product cannibalization or elimination of roles.

(Source: McKinsey, Oliver Wyman)

theloop & Universities Consortium | Educational Services

The universities consortium is a government backed consortium consisting of 3 universities (expanding up to 10 universities by Q3 2018) established to integrate blockchain and cryptocurrency technology into the educational sector. U-Coin (University Coin) as the first initiative is the cryptocurrency developed by the Consortium for university students in major universities in Korea. U-Coin makes it possible to pay, charge and transfer money using a smart vending machine and was well-received at the pilot service run at Sogang University and Postech University. (Source: Medium) Furthermore, U-Coin will expand its ecosystem by creating other cryptocurrency-based services that can be used in nearby communities and university towns. (Source: ICON Whitepaper)

Please refer to details regarding the constituents of the Capital Markets Consortium in Tier 1 partnerships for ICON in our previous post.



Industry Fact Card Industry Overview Industry: Educational Services



A sector covering establishments whose primary activity is education, including public, not-for-profit and for-profit establishments. Market Size

(Global):

70.62 Billion by 2020

(Source: Markets and Markets)



170 million global tertiary enrolments in 2009 according to UNESCO Institute for Statistics.

3.5 million internationally mobile students in 2009. An increase from 800k in 1970s.

(Source: British Council) Market Growth

(Global):

The fast-paced growth in global tertiary enrolments and mobile students has followed closely world trade growth and far outpaced world GDP growth over the past 20 years.



However, total global tertiary enrolments are forecast to grow by 21 million between 2011 and 2020, or 1.4 per cent per year on average; which indicates a significant slowing down from 5 per cent per year for last 2 decades. Market Characteristics

(Global):

Changing Landscape

---------------------------



Revenue from key sources is continuing to fall, putting many institutions at severe financial risk. One major challenge is that costs in higher education are rising faster than in almost all other industries. Tuition prices have grown nearly four times since 1978 versus inflation, outpacing even health care costs.



New business and delivery models are gaining traction. Competency-based models, Massive Open Online Courses (MOOCs), “boot camps,” and micro credentials are emerging. There’s a growing investment in online programs, particularly hybrids that blend online and face-to-face learning.



Globalization of education is accelerating. Students are increasingly mobile. The best and brightest are traveling to the developed world’s major universities for higher education.



Lifelong learning is becoming the norm, and universities must introduce programs for nontraditional audiences.



Greater focus on outcome

Federal and state governments are promoting more transparency and starting to tie funding to student performance.

Higher education is more closely aligning with employers.There’s an increasing array of partnerships with employers that focus on credentialing, licensing, and identifying workforce needs of the future.

Student are demanding to be treated as customers and to realize value consummate to the investment they’re making in education.

Universities are finding it crucial to partner with the public, private, and social sectors, as well as other universities—sharing resources and tackling the changing landscape through collaborative research.



(Source: BCG Mega Trends, BCG Higher Education, BCG Five Trends)

Blockchain Impact on Industry Fact Card How DLT benefits Education from fastest implementation to most revolutionary:



Payment via Cryptocurrency



Overcome barriers such as restriction on access to banks/credit cards depending on country

Perfect medium for instant payment

Easy payment of cross border tuition fees

customized cryptocurrencies for fund grants and vouchers

Validation of Certificates and Degrees



Verifying a degree/diploma today takes a lot of resources and time and potential employers and graduate programs are required request confirmation of credentials from universities

Digital self-sovereignty for individual’s records built on blockchain technology will enable graduates to share their credentials with whomever they like, and the certifications are indisputable because of the security and immutability offered on by blockchain.

Permanent E-portfolio for students



Platforms built on blockchain technology that could capture the lifetime history of a student’s academic and extra-curricular and other administrative details such as attendance could possibly cut down paperwork and make education institutes more efficient.

Students gain control and ownership of all their education data, including accreditation and portfolios of work, “in a secure place that is accessible to anyone who needs to verify it—and for their entire lifetime.

Learning Passports



Blockchain based open badges that will act as a token of achievement, authorization, and affiliation to the programs a person has participated in throughout his life. These open badges are supposed to be shared in job applications instead of carrying the complete file of certificates and degrees to prove one’s achievements.

Automatic Transfer of Credits



Using a blockchain, credits transfer agreements could be written as smart-contracts whereby upon fulfillment of the conditions of the contract, the credits would automatically be transferred

Copyright of Educational Content



Blockchain could allow educators to publish content openly, while keeping track of re-use, without putting limitations on the source material.

Teachers to be rewarded based on the level of actual use and reuse of their teaching materials, similar to how they are rewarded based on citations to research papers.

Students and institutions could then make metrics-based decisions on which teaching materials to use.

Interactive Learning & Analytics



All assignments, test scores and learning activities will be mapped on learning environments across the globe. Subsequently global/regional analytics could be built to inform and enable interactive and shared learning across nations. (Source: Impact Chain Lab, e27, Open Colleges)

theloop & Healthcare Consortium | Healthcare

The Healthcare (Hospitals) Consortium was established to build domestic artificial intelligence health care infrastructure and ecosystem.

(Source: Asia Economics News) Made up of major domestic hospitals, the Healthcare blockchain consortium plans to build a secured precision medical data sharing network.The application of blockchain technology will help with data integrity, a cross-border digital signing system, and a health coin. Its first project, in cooperation with the government and other hospitals, is a cloud-based precision medicine hospital information system that will help with synchronizing databases between hospitals. (Source: Forbes)



Partnership Fact Card Name Gachon University Gil Hospital Pusan National University Hospital Daegu Catholic University Med. Centre Keimyung University Dongsan Medical Centre Konyang University Hospital Chosun University Hospital Chonnam National University Hwasun Hospital Founded 1958 1956 1980 1982 2000 1971 2004 Size - 5 hospitals

- 6 Independent specialized medical centers

- 2 research institutes

- 245 specialists (main hospital)

- 30 departments (main hospital)



(Source: Gil) - 5 hospitals

- 11 specialized centers

- 23 specialty clinics

- 231,000m2 area

- 1,650 beds



(Source: PNUH)

- 24 departments

- 148,426.57㎡

- 854 beds



(Source: DCMC)

- 20 story building

- 1033 beds

- 2000 faculty members

- 41 departments

- 9 specialized centers

- 7 specialized clinics



(Source: DSMC)

- 32 departments

- 14 specialized medical centers

- 16 clinics

- 12 specialized teams in Cancer Centre



(Source: KYUH)

- 19 departments

- 200 beds

- official hospital of 2002 FIFA World Cup

- 8 Specialty Medical Centers



(Source: Chosun)

- 26 Departments

- 700 beds

- 1193 staff

- 93,110㎡ area

- Network of 18 international hospitals



(Source: CNUHH)



Industry Fact Card Industry Overview Industry: Healthcare



A sector involving a range of companies and non-profit organizations that provide medical services, manufacture medical equipment, and develop pharmaceuticals. Market Size

(Global):

US$9.59 trillion

(Source: PWC) Market Growth

(Global):

Global health care spending is projected to increase at an annual rate of 4.1% in 2017-2021, up from just 1.3% in 2012-2016. Aging and increasing populations, developing market expansion, advances in medical treatments, and rising labor costs will drive spending growth. (Source: Deloitte)



Markets Growth Period Manufactures $1.85 trillion USD 2018 Medical Devices $674.5 billion USD 2022 Digital Health $6.5 billion USD

(up 109% from 2016) 2017 IoT Healthcare $14,660 million USD

(up from 5,800 million in 2014) 2022 Home Healthcare $391.41 billion

(up from 228.9 billion in 2015)

2021 (Source: Forbes, Zion, Zion, BCC, )



The healthcare industry is reported to grow faster and add more jobs between 2014 and 2024 than any other sector.

(Source: BLS) Market Characteristics

(Global):

Shift to Smart Healthcare

------------------------------------

“With quality, outcomes, and value being the watchwords for health care in the 21st century, sector stakeholders around the globe are looking for innovative and cost-effective ways to deliver patient-centered, technology-enabled “smart” health care, both inside and outside hospital walls.” (Source: Deloitte)



Innovative Disruptions

------------------------------



Value based care: shift from volume to value i.e. move away from the traditional fee-for-service (FFS) system to reform policies, programs promoting operational efficiency, technology use, population health management, wellness, and addressing the social determinants of health.

Self-aggregation: healthcare shifting from rigid, decades-old payment and provider constructs towards reformed self-contained, efficiently run ecosystems that put the consumer at the center.

Customer centric: cultural shifts, cost of care and policy adjustments have contributed to a more patient-empowered shift in care over the last century

De-hospitalization: shift in perspective as hospital transforms from being the access point to becoming one of many access points in the healthcare ecosystem.

¼ consumers will be willing to receive healthcare in non-traditional settings

future of the healthcare will be shaped by new access points that are likely to lead to care that bypasses traditional medical centers altogether.

Cutting-edge technology: traditional medical technology moving into care provision. non-traditional players such as Amazon, Apple, Google, and IBM will begin to have a tangible implication in the healthcare ecosystem, pushing traditional healthcare companies to break their main business model and make healthcare more accessible, affordable, and consumer-centric. virtual care is rep