Bad Crypto Headlines Making Clients ‘Afraid’ Say Deloitte Blockchain Chief

"Can we stop talking about your bad brother?"

For example, Linda Pawczuk, head of Deloitte Consulting's financial services blocking group, describes the conversations she often has when she visits with the board members and board members. Client companies.

The main goal of Pawczuk's team is to help global companies decade to understand how to use distributed accounting technology (DLT) to transform their paper business into the digital age. But recently, they said that these buyers were wondering about the wild side of the blockade they were talking about in the news: the initial money supply (ICO), which fueled the wrath of the Securities and Stock Exchange Commission, for example, the unauthorized use of Bitcoins and other crypt valued.

She told CoinDesku:

"The committee is questioning us because the news for bad actors and panels is concerned that Blockchain is connected to Bitcoin, Altcoins, and ICO, and which are tips to protect their investors." The association with bad actors did not help us. "

Pawczuk added that his team at Deloitte sometimes called ICOs as a "donor market," meaning investors would not return the money.

Though it's good that regulators fight, she added, hyper builds care.

"Unfortunately, we have these things that create anxiety," Pawczuk continued. "I've been asking all the time at meetings, and I have to explain why they should not worry about data security [on blockchain], explain what the view is about bitcoin and 2000 altcoins - and we explain it to you, but we are like:" Can we stop talking about your poor brother? " Can we start talking about his brother Olympic champion? "

In its analogy, this Olympic champion is DLT.

On a broader interview with Pawczuk, which was taken over by Deloitte's team in April after the departure of his predecessor, Eric Piscini, to form start-up blockchain, expressed his opinion on the kind of consortium, enabling companies to adopt this technology. Why she does not want the vendors to offer a free proof of the concept; why Deloitte does not do any business in state of the art; and if you see public channels playing a role in business.

Which consortiums are working
In retreat, Pawczuk does most of his time with what he calls "digital changes" - companies that have existed for hundreds of years, but some have grown up in traditional process models and have decided to move to more distributed technologies. , "

According to Pawczuku, it is better to use a consortium that has built its reputation for some years as a neutral party, not specifically for the development and promotion of a technical platform.

She has an example: the RickBlock Alliance institutes, whose training was entrusted to Pawczuku, where she was three years behind Deloitte's efforts to block the insurance sector. In this case, the convergence point was the Institute, a group of insurance that existed for more than a century.

"For several decades, the institutes have been serving the P & C insurance industry. It is a non-profit organization and a very dependable subject. You do not have to build trust, and you already have a membership," Pawczuk said.

The use of the RiskBlock Creation Institute facilitated the employment of 30 insurance companies as members, she said. The blockchain is in production, and the alliance is currently planning to expand beyond North America.

According to Pawczuku, such structures have the advantage of not investing in technology, as opposed to Hyperledger or R3.

"Hyperledger has a horse in the race; it's a platform." R3 is trying to bring a variety of fun and persuade them to agree on something for the sole purpose of blocking. There are parts of the consortium where there is already confidence, as opposed to creating a party of trust solely for the transaction. "

Does this mean, for example, that SWIFT, an international financial messaging service that has existed since the 1970s, is an ideal tool for organizing block-chains used by banks and companies?

"Maybe," Pawczuk said. "They are already intermediaries; they already provide a wealth of skills, including a set of standards that the industry has already agreed.

To be correct, RiskBlock uses R3's Corda platform - but, according to Pawczuku, the project did not act chaotic and put insurers on top of the agenda.

The consortium should not be interested in profits from its members, Pawczuk said. "When a consortium or influence is formed, they are looking for ways of monetizing data to do a service." You can not be a neutral party and concentrate on an interested economic model, just replacing an agent with another. "

Free stuff
For similar reasons, Mr. Pawczuk is skeptical about the practice of some chain business chain operators to free the evidence of the concept free of charge.

"The most interesting story here is not technology, it is a business model disorder, and how we otherwise understand the paradigm," she said. "So, we feel a bit embarrassed when we hear about all these free proofs of the concept that are built because this technology is applied to the solution."

Instead, this is a business requirement that needs to determine technology.

"If you create free proof of the concept, but leave the business environment around it, such as regulation, LBC / KYC, taxes, etc., you do not provide global customer service," Pawczuk continued. , without naming the name. "Another thing that makes me nervous is proof of the concept developed by students who have never had co-existence in an environment where there are large, large volumes of trading systems. Blockchain does not replace all central systems."

Asked about the recent trend of creating stable coins or cryptocurrencies intended to maintain equality with the boy, Pawczuk said that Deloitte did not do any job in the region and seemed reluctant to continue. (At least one of his Big Four competitors, PwC, advises two separate stabilization projects.)

But do we have an opportunity for companies whose chief audit authority is, since this property generally protects the fiat in a bank account, and investors would like to be sure the money is there?

Pacwczuk replied that it was too early to leave without regulatory clarity.

"The regulators are developing at a respectable rate because now we have to solve the problem we have never faced: the verifiability of decentralized systems."

Public and private

Even if Deloitte does not continue any stable project, it does not mean that its core business solves the crypto. The company is said to perform system audits and organizational controls (SOC) for some cryptographic security solutions.

Moreover, although Deloitte's blockchain consultation is primarily included as authorized block-chains rather than an open type of crypt valued, Pawczuk believes that the industry ultimately needs hybrid two.

"Let's look at the insurance model," she said as an example. "Let's say you, and I are in a car accident, and you have a carrier, and carriers can adjust, but what about the type called a body shop?" This is not necessarily in a licensed blockchain, because there are thousands of trading bodies but could it be on the public network? So now you have a hybrid structure. "

The key to such a structure will be to ensure that these systems can communicate with each other. "I'm less concerned about the DLT layer than about the interoperable layer of the system because there's a whole range of services and middleware that allow this stand to work," Pawczuk said.

Another competitor, Accenture, has recently announced the creation of an "interoperability node" designed to link the main blocks of business blocks: R3 Corda; Hyperlink fabric; Quorum, developed by the World Bank JPMorgan Chase; and digital assets. However, Deloitte has articulated its demand for chain link interoperability, linking data with trade finance chains, which was presented in May at the 2018 consensus.

And despite the interruptions created by cryptic turbulence, Pawczuk praised the forerunners of all system blockages under construction, concluding:

"The fact that Bitcoin's real case of global appeal has prompted people to focus on the block-chain. We would never talk about process capabilities such as blocking and interference with no bitcoins."

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