Dubai Global Blockchain Committee announces first wave of 7 blockchain pilot projects

On May 30, 2016, Dubai’s Global Blockchain Council (GBC), a public-private initiative formed by local businesses, government agencies and startups, held its 2016 industry-themed conference at the Burj Al Arab in Dubai, announcing seven new blockchain proof-of-concepts.

The committee, which was formed in early 2016 and now has more than 30 members, was joined by IBM, telecom operator du and the Dubai Multi Commodities Centre (DMCC), among others, who announced several projects at the meeting, including one focused on interoperability for loyalty platforms and one to reduce illegal jewelry trade.

Saif Al Aleel, CEO of Dubai Future Foundation, opened the first session of the morning by introducing the foundation’s goal of bringing together innovators and key players in the local market.

Al Aleel told attendees:

“We believe the best way to prepare for the future is to create it, and the best way to create it is through collaboration. We believe blockchain technology can improve every aspect of our lives and commerce… by speeding up transactions and providing faster and more efficient services.”

Museum of the Future Foundation COO Noah Raford later said these implementation projects are just the beginning of GBC's progress.

"These are just seven of a number of exciting trials the council has in the works. There are many more in development which we cannot announce at this stage."

The projects are scheduled to be implemented over the next three to six months so they can be evaluated and then new and better use cases can be developed, Reiford said.

The following are the seven pilot projects announced at the meeting:

1. Medical Records

“How many times have you gone to the doctor, explained what was wrong with your body, and then realized you forgot to bring your x-ray records?”

Jose Valles, Du’s vice president of innovation, first raised the issue at the conference, before unveiling a project his company is working on to digitize medical records using blockchain technology.

The project is the latest proof-of-concept for innovators challenging medical records, following similar efforts by Philips and IBM.

According to Wallace, the project, which is a collaboration with Estonian software company Guardtime, puts Dubai at the forefront of efforts to use blockchain technology to improve the security of medical records.

“We are bringing blockchain technology to the healthcare space to ensure secure access to healthcare data. We believe the adoption of blockchain technology will be revolutionary.”

2. Securing jewelry transactions

Perhaps the most notable speech of the day came from James Bernard, head of business development at DMCC, one of the region's largest providers of commodity trading infrastructure.

Bernard outlined how DMCC has worked with GBC members to create a pilot project using blockchain technology to verify and deliver Kimberley Certificates, a physical document introduced by the United Nations in 2003 to stem the flow of conflict diamonds.

“The aim of the project is to digitise and deliver Kimberley certificates and facilitate the collection, transfer and storage of statistical data provided by other member countries around the world.”

Bernard said he believed blockchain could not only digitize paper-based procedures but also reduce document duplication and other human errors by allowing member states to trade and share data.

Bernard's speech attracted particular attention because statistics showed that DMCC traded a total of US$35 billion worth of diamonds in 2010.

Because DMCC currently chairs the Kimberley Process, coordinating actions among its 81 member countries, Bernard said they were able to find the necessary participants to ensure the pilot project could be successful.

3. Transfer of Ownership

The concept that blockchain can be used to digitize paper-based procedures was also discussed during a presentation by Vignesh Raja, a private equity expert at Viktor Koenig LLC.

Raja described a proof-of-concept they are developing in partnership with Singaporean blockchain startup DXmarkets: physical commodity dealers, such as antique dealers, will be able to digitize their existing illiquid assets and better connect with large commodity exchanges, such as DMCC.

“Illiquid assets are not easy to collateralize and liquidate. But by using blockchain technology, we hope to create new digital assets, digitize assets and smart contracts using tokens, and improve transaction efficiency.”

Raja said that by automating verification and transfer of ownership, commodity markets will become more robust while ensuring compliance with Islamic finance principles and that tokens can be backed by physical assets.

4. Business registration

The pilot project was presented by BitOasis CEO Ola Doudin and was carried out in collaboration with DMCC to improve internal processes.

The trial was announced at the time of GBC’s inception and envisages that by simplifying ID verification for DMCC’s Flexi Desk project, it will be easier for many companies to go online with the DMCC trading system.

“When you go to a bank to open an account, you have to bring copies of documents and go through a cumbersome process. Now, by using a blockchain with a verified copy of the record and the signature of the owner, it can be done in just a few minutes and a few clicks.”

Dudin said the project is currently in the demonstration phase, and her company is looking for banks, telecom providers, duty-free zones and other potential partners to take the proof of concept further.

Last week, BitOasis just completed its seed round of financing, with participation from Wamda Capital and payment processor PayFort.

5. Digital Will

Pinaki Aich, vice president of strategy at the Dubai International Financial Centre (DIFC), has a vision to help companies better transfer ownership.

The largest business category in the Middle East and North Africa (accounting for an estimated 98% of GCC companies), he said 75% of family businesses fail when management is transferred to the next generation.

Describing the scaling problem ahead, Ashley said:

"In the Middle East and North Africa (South Asia) alone, the transfer of assets from one generation to another is about $10 trillion."

Given this situation, Eich believes that blockchain-based wills and contracts can help alleviate this problem, as blockchain technology can enable MENA companies to complete the transfer of corporate operations while complying with local regulations.

The project is jointly carried out by DIFC and DigitUs, a specialist company in blockchain applications and services.

6. Tourism Management

Blockchain startup and GBC member Loyyal later presented a proof-of-concept on how blockchain technology could boost the travel industry by enabling travelers to better earn and spend loyalty points.

Called Dubai Points, the blockchain pilot will stimulate the tourism industry and is in line with the goals of the Dubai Future Foundation.

Loyyal CEO Geg Simon predicts smart contracts will play a major role in making the program interoperable, allowing points allocations to be tied to photos taken at specific locations, for example, and governing rules for which points can be traded between businesses.

Simon said the proof of concept is under development and is also working with a number of regional companies, including du, Jumeirah, Flyin, Privity, International Culinary Centre for Culinary Arts Dubai, SquareCircle Tech and DigitUs.

7. Improve freight transportation

Iqbal Alikhan, Director of Strategy and Business Development at IBM, succinctly outlined how IBM is working with GBC to provide blockchain technology solutions for financial transactions.

This use case finds companies in many regions collaborating on how to trade commodities and finance those commodities more efficiently.

Alikhan explained:

“We are working on a ship loading use case involving the port, local banks, logistics companies, a courier company, shipping companies and an international bank.”

Alikhan later expanded on this use case during his keynote, emphasizing IBM’s confidence in blockchain’s application in financial trade.

“We’re looking at 354 proofs of concepts this year, and we’ve had a huge number of requests to come up with a deal review committee. It’s been very hard to find a proof of concept that we can support. The pace of change is amazing.”

Along with compliance and settlement, blockchain solutions in these three areas are best suited for clients, Alikhan said.