utimaco block-safe product offering · traceability of a transaction by whom from m of n including...

Utimaco · Aachen, Germany · © 2019 utimaco.com

Utimaco Block-safe Product OfferingPriyank Kumar

Principal Product Manager, Payment Program

Dec 2019


Agenda

Quick Recap What is Blockchain?

Mega Trends in the Blockchain by Industry

Blockchain Use cases By Industry

What is Blockchain Solving?

Our Offering

Conclusion


A blockchain is a growing list of records,

called blocks, which are linked using cryptography.

Each block contains a cryptographic hash of the

previous block, a timestamp, and transaction data.

▪ By design, a blockchain is

resistant to modification of the data

▪ Blockchains are well-suited to implement

infinite-size ledgers (a ledger is a book or computer file for

recording and totaling economic transactions)

▪ There are many different types of blockchains ...

…with a number of important similarities

Blockchain 101

What is Blockchain?

Permissioned

/ Public

Consensus

model

(proof of

work/stake/ID)

Centralized,

Decentralized,

Distributed

Anonymous

/Known

Identities


Blockchaintechnology

Enabling smart contracts

Establishingtransparent P2P

transactions

Establishinga reputation

system

Allowingmicrometering/

micromonetizing

Promotingdynamic efficient

pricing

▪ Smart Contracts▪ Computer protocol to verify, enforce

negotiation, performance of a contract

▪ Transparent P2P Transactions▪ Peer-to-peer

▪ Reputation System▪ Rating for online communities

to build trust

▪ Micro-metering / Micro-monetizing▪ E.g. Few cents drawn after each 100

meters for train fare or paying for tune

every hour spent playing

▪ Dynamic Efficient Pricing▪ Pricing based on the demand

What Does Blockchain Technology Provide


Blockchain 101

AB

AB

A user requests

for a transaction1

A block

representing

the transaction

is created

2

The block is

broadcasted to all the

nodes of the network

3

All the nodes

validate the

block and the

transaction

4

The block

is added

to the chain

5

The transaction

gets verified

and executed

6


Mega Trends Related To Blockchain

AutomotiveBanking, Financial, Fintech

Charity

Cloud Storage

Commercial Vehicles and Transportation

Credit History

Donations

Cybersecurity

Education

Energy

Forecasting

Government and Voting

Gun Safety

Human Resources

Insurance

IOT

Law Enforcement

Legal

Marketing

Media

Medical/Healthcare

Music Streaming

Public Transportation/Ride Sharing

Real Estate

Travel

Wills and Inheritances

Blockchain


By Use Cases

Blockchain Landscape


Top 3 Drivers

Business Drivers

Time to

“Completion”

for “Service”▪ E.g. International money

transfer / Cross-Border

Know-Your-Customer Regulations, e.g. FINTRAC,

RBI, USA Patriot Act, Anti-

Money Laundering, PSD2

▪ Enhance Traceability

Increase

Bottom-Line Margins▪ Internal Operational

Cost Savings

▪ External Cost Savings


Keys must

be secured

properly!

A Typical Blockchain Transaction Flow

PortalConsumer

Unique Private key

must be issued1

Business e.g. Bank

Private Key

Entity must verify previously

generated client unique private key2

Authentication &

Transaction verification3

Keys must

be secured

properly!

Business e.g. Bank

Recipient

Business Entity4

Private Key

Auditability

must be

assured!

Authentication


Business Challenges

▪ Implement a compliant solution

as per the required regulations

▪ Easy to integrate solution

in existing infrastructure

▪ Performance / Meet Business SLA

Technical Challenges

▪ Secure Generation Of Unique Key

▪ Secure Storage & Efficient Retrieval

Of Private Keys

▪ Performance Challenges

with +1M Keys

▪ Implement a Trusted Smart Contracts

▪ Traceability Of Signer / Approver

▪ Auditability of a transaction

▪ Scale effectively in POC to Production

Common Challenges / Pain Points


Product Portfolio

DiskEncryption

Appliances

AT1000 ESKM

AtallaPayment HSM for Banksand Payment Processors

ESKMEnterprise Secure Key Manager

Platforms

Se-Series12/52/500/1500

CSe-Series10/100

Cloud

Software

DiskEncryptEncryption Software for Hard Disk Drives

AuthenticationIdentity and Access

ManagementKey Injection PKI Code Signing Signature Creation

/ Document Signing Cloud Card Issuance AlternativePayment / Mobile Inter-Banking ESKM

Firmware Packages

SecurityServerGeneral Purpose HSM

CryptoScript SDKCustomization through Scripting

PaymentServerIncl. SDK

CryptoServer SDKCustomization through Firmware Development

CryptoServer CP5eIDAS Qualified SignatureCreation Device

TimestampServerReliable Time Stamps

CryptoServer CP5 VS-NfDSecuring classified information

Block-safeSecuring DLT

Q-safeQuantum secure algorithms for crypto agility


Utimaco Block-safe Value Proposition

Unified secure boundary

for bridging new use cases

with current ecosystem

Built-in Consensus

Enforcement

M of N to authorize /

Multisign

Hierarchical Deterministic

Wallet Support

Ability to scale effectively

with industry specific required

key derivation mechanisms

Proven secure storage

of private keys for regulations

e.g. PSD2, GDPR

Auditing & Logging

Traceability of a transaction by whom

from M of N including final commit

Blockchain specific generation

of Private and Public keys

Blockchain specific elliptic curves,

Bitcoin and Ethereum blockchain

Secp256k1, Stellar Ed25519.


Block-safe Key Features

SDK for customization by

your own developers involving

sensitive code and IP

Asymmetric Key derivations

including BIP-32,

NIST SP800-108,

ECDSA (NIST SP800-56A),

DSA (ANSI X9.42)

Fingerprint for public key

address generation

Role based access control (RBAC)

with multi factor authentication

for segregation of duties

Built-in support for several

models for HA redundancy

and performance scalability

Built-in Post-Quantum safe

Dual TRNG + PRNG entropy

source, and NIST SP800-90

compliant RNG


Multisignature

Transaction

Simplified Block-safe Transaction Flow

PortalConsumer

Unique Private key is issued

and securely stored inside

HSM. (BIP32 Derivation)1

Business e.g. Bank

Private Key

Bank verifies previously generated

client unique private key using DLT

addressing techniques2

Bank uses its M of N

to sign the transaction3

Business e.g. Bank

Recipient

Bank4


Process optimization

US

based bankBuyer Supplier

Japanese

based bank

Process friction

SupplierJapanese

based bankBuyer

US

based bank

Cross-Border / Interbank Transactions

Use Cases

$

$

$ ¥

¥

¥$ ¥US Federal Reserve

US

correspondent bank

Bank of Japan

Japanese

correspondent bankFX

transaction fee

FX


How Blockchain saves costs, time and effortHeavy costs and effort in centralized databases

Customer

Digital Assets e.g. KYC/AML

Use Cases

submits KYC

documents

to bank

Forwards

KYC

documents

Other institutions

seek the

intermediary

for KYC data,

causing repetitive

KYC Checks

Data incurs costs

for security

of data

Intermediary

stores data in

centralized

database

Uploads KYC

Data to

Blockchain

Customer Less or no need

for Data

Security

Other Institutions

verify KYC already

performed by bank

Accesses KYC

Data from Blockchain

Bank

Necessary

Data Security

Centralized

Database

Bank Centralized

Intermediary

Other

Institutions


▪ Effectively integrate new deployments

into existing Ecosystem and meet compliance

requirements e.g. Smart Automobile Payment

enabled leveraging Blockchain

▪ Built-in Algorithms, DLT platforms

maintained, supported with latest releases

and security updates

▪ Trusted Reliable HSM Vendor

Conclusion


Utimaco IS GmbH

Germanusstraße 4

52080 Aachen, Germany

Phone +49 241 1696-0

Web www.utimaco.com

E-Mail [email protected]

Payment Product Management

Thanks for your attention

Priyank Kumar

[email protected]

mailto:[email protected]

mailto:[email protected]

utimaco block-safe product offering · traceability of a transaction by whom from m of n including...

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