We're reaching the end of the module. We have looked at many technologies, but probably the one that has a lot of uncertainties around it is Blockhain. Now today, I'm happy to have with me Nicolas Harle. Nicolas is our senior partner in BCG Paris office. He's also our expert on Blockchain. Nicolas, thanks for being here. Thanks Amane, it's a pleasure. So Nicolas, Blockchain is one of those technologies that we hear a lot about recently. Can you tell us how can we differentiate the reality from the hype? Reality means understanding what Blockchain is. It's a very specific ledger with very specific properties. So this ledger, again, is a ledger that is distributed chronological, cannot be violated and cannot be amended. And those four specific points need to be understood. The hype is bitcoin. Hype around Bitcoin and hype around the startups that's raised more than 1 billion of VC money, to create Fouzi Sings. So hype is also about people doing or companies, doing marketing experiments, winning to use Blockchain as a solution, without understanding what the problem is. And when a solution is such a problem, it's a wrong way of looking at it. I love that. I think differently about a problem looking for a solution, but can you give us an example of a good problem that took Blockchain as a good solution for it in any industry that you would think of? I would look at the three key use cases of Blockchain. Identity, asset tracking, and smart contract. In asset tracking, you should want to understand if the pork comes from the right farm, from the farm to the consumer, you could use the Blockchain protocol, to decentralized ledger, that will trace the fact that the pork is going to be slaughtered in this specific slaughter house, is going to be caught by this specific butcher, is going to be transported by this specific van where the cooling system is going to occur properly, and then is going to be sold during three days, no more than three days, in the specific shop. And this kind of traceability can be handled leveraging this distributed ledger technology. So if I am not a new comer, a startup, I'm an industrial player with a lot of legacy, a system that has been here for decades, what can I do with Blockchain? Some of them as you said are starting to use Blockchain as a marketing stunt, but what can an incumbent do with Blockchain to really have value delivered? So first, the incumbent needs to be educated about Blockchain, it's complex. You have words like miners, we have oracles, keys, a lot of uncertainty about the protocols that's winning. So education is vital, observing and educate. Second, understanding the pain point in the value chain. What are the pain points around identity, asset tracking and smart contract that I have in my value chain? It can be pain points within the value chain or it can be value-added things that they could add in my value chain. And then you have to assess whether a Blockchain is a relevant answer, so it is a very solo process, education, looking at a problem, and looking if Blockchain is the answer to this problem. Because very often, a good SQL database can be better than a Blockchain protocol. And as an illustration of that, Bamian which is one of the French player proposing bitcoin to pay transactions, is having its client database on an SQL server. So even Blockchain startups do not put everything on Blocchain. And so it's very important to have these view, this solo process at the right level in the organization to avoid to following this solution problem trap that I eluded earlier. Starting from the problem not from the solution which is Blockchain, one of the things that we have also highlighted in the Blockchain presentation is that it is not only individual players influencing the faith of Blockchain, there is an ecosystem around it that has states, regulators and people from different industries advocating or opposing certain evolution. If we look at the broader ecosystem beyond the startups and the individual companies, what do you think regulators or other state players should do to either promote Blockchain or help use it in the right way? Regulators should do as cooperate. They should get educated about it in order to anticipate a trend that is progressing. This technology can be either nothing, or an evolution, or a revolution. The point is we don't know, but over the years, we are quite confident that it's between evolution and revolution. So that's point one. So if it's an evolution or a revolution, our regulators need to be educated. Second, they need to look at what some states are doing. Estonia is very advanced. Dubai has a very strong ambition. Singapore is favoring it. Some state in the US allow Blockchain protocol for smart contract and legalized smart contracts on Blockchain. So Chicago Mercantile Exchange is going to provide liquidity on Bitcoin. So, things are moving, and some regulators are advancing more than others, and some states have Blockchain ambitions. Australia, Singapore, Poland, beyond Estonia are fairly ambitious about it. So, regulators in some countries have understood that they need to embrace the understanding and the ways they are going to regulate. And in some geographies, many in Europe, some places hesitate to move there. Because if they move there, they are not sure that they can reverse back and exit Blockchain if they make a move to put their ledger that is usually centralised into a decentralized ledger. So this debate is very important, and these debates for not abuse the banking industry is very critical. It already occurred in some geographies it need to occur, and I know that EU is thinking about it, I know that the UK regulator is thinking about it, the French regulator made some test, so it's moving. And the regulators are really contemplating Blockchain in many ways and banking point of view, and the regulators now need to shift outside banking because what these are queuing outside banking, is starting to be greater. Yes. And I love the fact that you highlighted, we need to live with that uncertainty and we need to work within that uncertainty framework starting with the education part. And hopefully, you guys have checked this first element of education with our video and our conversation with you Nicolas. Thanks a lot for helping us here. Thank you.
