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Centralized vs Decentralized vs Distributed Systems

The business and enterprise sectors are dotted by a diverse range of companies, each with its unique business model and offerings, but if we take a quick peek under their hood, we can observe that all of them share a common element, namely an IT infrastructure that acts as the invisible framework which supports companies and enables the delivery of their services. As early as the 1950’s technology has started to leave its mark on the business world, eventually becoming the main vehicle that supports and facilitates business. As a matter of fact, technology and the business sector share almost a relation of symbiosis, in which they influence each other’s evolution and growth. 

Today, centralized, decentralized, and distributed systems have cemented themselves as the main types of frameworks that act as a foundation for every company and application from the enterprise sector. Unsurprisingly, the prevalence of these three models has given rise to the following debate – Which one of them is better, or more suited for the constantly evolving needs of the enterprise sector? The answer isn’t straight forward, because each model comes with its own set of advantages and disadvantages that need to be accounted for.

As a technology provider, Modex leverages blockchain technology to forward an alternative that combines the benefits of distributed, and decentralized systems, while minimizing the technological complexities and overhead that comes with these types of systems, augmenting them even further with an additional suite of functionalities and features tailored to answer the needs of the enterprise sector.

Centralized systems overview

On the software’s business logic side, centralized systems are designed following the traditional client-server architecture, where a single, centralized server is responsible for storing and processing all the information, which it needs to make available to other users, known as client nodes who can connect directly to the main server and submit data requests instead of performing them directly.

Being one of the first types of systems to appear, the centralized model is widely used especially on the web. The main issue with this type of network is its dependence on a central server which acts as a single point of failure, a big target that can be exploited by malicious actors.

Advantages of centralized systems

Fast and simple deployment – their straightforward design and clearly defined roles in the system significantly cuts down on deployment times of decentralized systems, making them ideal for small business applications, centralized databases, or testing environments.

Cost-effective – centralized systems are usually the ideal choice for smaller systems because they require fewer resources to set up and maintain. Because they rely on a single server, admins need to perform updates only in a single place, which drastically reduces the time and overhead necessary to keep the system updated. 

Consistency – centralized systems have a top-down structure which makes it easy to standardize the interaction between the server and the client nodes which enables companies to provide a more consistent and streamlined experience to end-users. Also, due to the clearly defined roles in the system, it is relatively easy to track and collect data, making the detection of deviant user behaviour more efficient.

Disadvantages of centralized systems

Increased risk of downtime – the single point of failure vulnerability inherent to centralized systems means that if the central server is compromised, the entire network will shut down. As a result, client nodes will be unable to send, receive, or process user requests. Also, maintenance and update operations will most likely involve a downtime period in which users will not be able to use the company’s services.

Weak security – the single point of failure vulnerability paints a big target on the central server, making it susceptible to a wide range of cybersecurity attacks like Distributed Denial of Service attacks (DDoS) where malicious actors flood the system with many false requests to make the services unavailable to other users. Another point of concern is the fact that data is stored only on the central server, which raises privacy risks and chances of losing data if the server is corrupted.

Limited scalability – from a scalability standpoint, centralized systems can scale only vertically, meaning that the central server can be upgraded with better hardware components. The problem is that this technique is limited by the performance of the hardware components available on the market, which is often insufficient for technological companies that require a large pool of computing power to cope with their workload. If the system experiences traffic spikes beyond its capabilities, some users may experience increased latency, becoming unable to access information or services.

Decentralized systems overview

As the name implies, decentralized systems do not rely on a single server like centralized systems, instead, they distribute the workload across multiple devices. Each separate device can be configured to act independently and are usually categorized into server/master and computer/slave nodes. Having multiple master nodes mitigates the shortcomings of single point of failure systems because if one or more master nodes fail, the remaining ones can take on their workload and maintain the system active without any disruptions. It’s important to note that decentralized networks don’t distribute data storage and computation evenly across the network, hence the master/slave node differentiation. Even so, they are more resilient than their centralized counterparts.

Advantages of decentralized systems

Fault-tolerant – decentralized systems are composed of multiple hardware components that make it less likely for a company to experience any downtime due to a hardware malfunction. In this scenario, decentralization enhances a company’s logistic and operational performance by increasing the availability of data to satellite offices as well as providing continuity to business operations in case of a failover scenario where the primary database malfunctions or is compromised by an attack.

Enhanced security – decentralized systems mitigate the single point of failure vulnerability present in centralized structures, while also increasing a system’s resistance to cybersecurity attacks.

Collusion resistance – unlike centralized structures, it is more difficult for participants in a decentralized structure to collude to act in a way that will benefit them to the detriment of other participants. This can be a valuable aspect in a consortium of companies because it creates an equal playing field that has an inbuilt system of checks and balances for the actors involved.

Enhanced performance – master nodes can be distributed geographically in areas where user activity is high, making information more accessible to users

Increased scalability – besides vertical scalability, distributed systems can benefit from horizontal scaling. Also referred to as scaling out, horizontal scaling is a technique employed in distributed systems to increase the computational power of the network by adding new nodes, rather than upgrading the hardware of a single node. Besides being a cheaper alternative to vertical scaling, the main advantage of horizontal scaling is its seemingly infinite potential to add new machines to the network to increase performance.

Disadvantages of decentralized systems

Expensive to set up and maintain – unlike centralized systems, decentralized systems are more complex and require more technological overhead making them more labor-intensive and expensive to maintain. As such, they aren’t for smaller systems because of the low cost/benefit ratio.

Coordination issues – decentralized systems are composed of multiple master nodes that act independently and may not communicate with each other. This design choice can make it difficult to coordinate nodes to work on a collective task, reducing the versatility of decentralized systems.

Distributed systems overview

Distributed systems have appeared out of the need to solve increasingly complex computational problems that cannot be solved by a single machine. Often than not, distributed systems are very difficult to deploy, maintain, and debug, but they are worth the effort and costs involved due to their performance, scalability, low latency, and fault tolerance.

Distributed systems are characterized by two key features. The first one is that distributed systems are a collection of computing elements, commonly referred to as nodes, that can act independently of each other. As opposed to decentralized systems, every node in a distributed system is equal, meaning that data ownership and computational resources are shared evenly across the entire network.

The second common feature shared by every distributed system is that due to the layers of abstraction involved, users tend to believe that they are dealing with a single system. To function as a single cohesive system, the collection of autonomous nodes needs to be able to communicate and collaborate with each other to achieve a common goal. As such the key challenge toward building a distributed system is related to ensuring and maintaining a stable line of communication between all the elements that compose the network.

Advantages of distributed systems

Reliability and fault-tolerance – distributed systems are composed of multiple nodes that work towards achieving a common goal. Because of this design, the system is reliable and highly fault tolerant. Even if some of the nodes that compose the system are compromised, the application will continue to function because the workload will be spread between the remaining nodes.

High up-time – this metric refers to the total amount of time the system is available. In general, distributed systems are characterized by high levels of availability. Because they are composed of multiple machines, distributed systems can distribute the workload during maintenance procedures to ensure business continuity.

Low latency – latency measures how much time it takes for a data packet to travel from one designated point to another. Ideally, latency should be as close to zero as possible. The advantage of distributed systems is that nodes can be distributed geographically, to allow traffic to hit the node that is closest to it.

High scalability – distributed systems can scale vertically and horizontally

Distributed systems disadvantages

Expensive to set up and maintain – distributed systems require multiple hardware and software devices which increases the initial setup costs and maintenance costs.

Data loss – data can get lost in transit between nodes.

Difficult to manage – distributed systems are characterized by high levels of complexity, requiring specialized personnel to operate them.

Overloading – overloading is a common issue of distributed systems that happens when all the nodes of the distributed system try to send data at one particular instant of time. Overloading impacts a system’s response time.

The Modex alternative

Modex has leveraged blockchain technology to develop the Blockchain Database (BCDB) solution, a new type of infrastructure that combines the benefits of decentralized and distributed systems to create an ecosystem capable of providing enhanced security and data centred benefits. The solution developed by Modex intervenes in the development stack by positioning itself between an existing software application and database system to add a blockchain layer that ensures confidentiality, integrity, and availability.

With Modex BCDB companies can move from a centralized model to a decentralized, distributed model, secured by complex encryption and hashing algorithms. In addition, the Modex solution comes with inbuilt customizable data access mechanisms and a separate blockchain authorization network that stores user credentials and passwords, to create an ecosystem inherently resistant to data loss.

Modex BCDB makes use of blockchain technology to extend the concept of data backup. A database connected to Modex BCDB benefits from a blockchain backend that stores the hash of every entry in the database. Due to the unique properties of hashing, if the information is modified in the database without authorization or by mistake, the system will compare the hash stored in the blockchain with the new one generated by the modified information, detect the difference and restore the data to its previous value.

Why Blockchain?

Blockchain is unique in the sense that it has managed to directly challenge our perception of data storage and management. For the untrained eye, blockchain may simply appear as a database, and to some extent they are right. Blockchain is a database, but a database is not a blockchain. In its most basic form, blockchain is a historical record of transactions. Data introduced in a blockchain network is secured through complex cryptographic algorithms and stored in structures called blocks.

Each block of transactions includes a set of data from the previous block which link them together, forming a chain of blocks. Hence the name blockchain. Because data is stored in thousands of interconnected blocks, it becomes impossible to alter. If a malicious actor tries to tamper with data from a block of transactions, all the following blocks will be rendered obsolete by the system, which will discard any changes which are not approved by the members of the network.

Transparency, trust, and accountability are imposed by the decentralized structure of the blockchain. Businesses and trade partners are no longer required to rely on external parties to mediate disputes, perform an audit, verify, and share data, as the one true version of the truth will be stored in the blockchain. Each participant maintains an encrypted record of every transaction, trust is guaranteed through complex mathematics during each stage of the transaction process. This resilient recording mechanism cannot be repudiated, as such, parties that do not completely trust each other can engage in business interactions.

Modex BCDB, disruptive benefits

With a unique set of characteristics and features, Modex BCDB delivers a set of data-related benefits that extend not only to the beneficiary of the Modex technological layer but also to their end customers, business partners and end users.

Certifiable trust – Modex BCDB elevates the concept of trust to a whole new dimension. Trust no longer requires people to place their faith in the ability of companies to safeguard their valuable data. With the Blockchain Database solution, trust is guaranteed by technology.

Efficient data reconciliation and audit – integrating multiple database systems and software applications with a blockchain backend facilitates a better flow of information and a higher degree of transparency and trust in data. Transparency generates traceability and accountability, while data trust is guaranteed by the complex technological layer facilitated by the BCDB solution. These two features consolidate and streamline a clients’ internal operational flow. In a multi-party system, trust and transparency creates cohesion and improves cooperation on data.

Improved data accuracy – Modex BCDB removes the need to manually enter data into a shared ledger or exchange information through methods susceptible to human error (email, screen sharing, etc.).

Enhanced data protection & secure data sharing – with blockchain technology at its core, Modex BCDB creates a highly secure ecosystem for sharing and storing data. Security is further strengthened by the complex layer of encryption offered by the Modex platform. The flexibility of the encryption system enables beneficiaries to encrypt all the data entries or only certain fields from a table. As an append-only structure, data cannot be deleted once it has been passed to the blockchain, making it immutable.

Complete data ownership – companies that store their data on the BCDB platform are in complete control and the indisputable owners of the data they add into the platform. As such, they can decide who, when, and how their data can be accessed within the ecosystem.

Data privacy – trust is a fundamental value guaranteed by Modex’s blockchain component. Paired together with the access control mechanisms built in the Modex BCDB solution, the newly created ecosystem ensures that data can be accessed only by authorized users.

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Robert Gherghe, Head of Communication Modex: Communicating tech is like inventing another language

Passionate about history, innovative technologies and writing good articles, our next guest in the #WeAreModex series of interviews believes that doing PR in the tech world is nicer than in other industries. If he had the chance, Robert would have liked to be a film director, but for the moment he is smoothly ‘directing’ Modex’s Communications department. Here’s what he has to say about blockchain, journalism, PR and… specialty coffee.

Tell us a bit about your studies: high-school, University, Master’s Degree.

I was born in a small, communist style town in the South-East of Romania, where I grew up and lived, like every young Romanian in search of happiness at the beginning of the 21st century. The funny thing is that I’ve graduated from a mathematics and economy-oriented high-school, and then I made a living from writing.

After high-school I was accepted at the University of Bucharest. I became a student at the Faculty of History, my first passion which, most probably, will stay with me for my entire life. When I was 5 years old, I started learning about Romanian and Universal History. So, for me it was quite easy to choose history in college, because at that time I thought I knew almost everything about this domain. A few months later, I discovered it that I knew nothing, so in a way it was very interesting for me to learn what history represents. I then took the Master’s Degree in History of Modernism, with a dissertation paper about Sexuality in the traditional Romanian society.

Moving on to your career: when did you start working, what was your first job and what interesting projects you’ve done so far?

In 2002, I started working as a junior writer at the national radio station. It was a fantastic opportunity for me at that time: I remember that I was the very last man in the chain of hierarchy at a cultural radio show. But it all felt amazing for a 19-year-old that two months earlier was stuck in an ex-communist town with no perspective. I’ve worked for the whole duration of the university – nowadays, I’m not recommending this to anyone! – but two decades ago things were different in our society.

I had the first full-time job at Mediafax press agency. I think that even to this day it remains the coolest job I had as the entire team comprised young and passionate people. Moreover, back then Romania was becoming part of the European Union, so there was a special feeling throughout our society. That job was followed by 12-13 years of journalism. One of the most important projects I’ve headed was ViitorulRomaniei online publication, which I’ve started together with Mihai Ivascu, the co-founder of Modex and founder of Ingenium Group, a media company where I’ve worked as the Editor in Chief for several online projects. The launch of Modex gave me the opportunity to enter the start-ups phenomenon and leave journalism behind, but also discovering a new domain: PR and content creators. I have to admit that the biggest attraction was represented by the tech industry and its perspectives in the new model of a digital society.

Were there any particular challenges in your career that you had to overcome?

Yes, there were many. The biggest challenge for me was moving into the tech area to coordinate the Content and PR departments. Creating a symbiosis between those who know how to write creatively and those who know to communicate and establish a close relationship with the public was clearly a challenge. I have been collaborating for more than a decade with PR officers from several companies, I knew how things were, but after switching sides on the ‘battlefield’ I’ve immediately discovered that it was all different from how I perceived it from the outside. As a journalist, you’re responsible only in front of the public. Here, however, in the communications area, you’re being held accountable in front of the company’s shareholders and the team you’re working with. Moreover, if we’re speaking about a startup which bases its evolution on the capacity to create a powerful brand image on the market, things get even more complicated.

When and how did you start working for Modex?

I’ve joined Modex after exiting, with Mihai Ivascu, from ViitorulRomaniei project. That was the first editorial project in Romania which aimed to show the country’s positive things in a mass-media environment focused almost entirely on negative things. While working at that project I’ve gathered an extraordinary team of young and very talented journalists, many of them who are dominating today’s market of independent and alternative media channels in Romania.

In a way, I can say that I’ve been with Modex even before the company was born. I still remember how the name was chosen, but that’s a story for another time. I was at the company’s Christmas party and Modex’s CEO spoke about how companies would become creators of their own content and how that was his wish for a future startup he would launch. At first I didn’t believe him – he spoke about a company that was supposed to write creative content by its own, with a journalistic approach – but I said ‘Yes’ anyway as I was interested in the startups’ cultural phenomenon. So I can say today that me joining Modex felt like a Christmas present.

What do you do at Modex, which are your main tasks and what do you like the most about your job?

More or less, I do what every department manager does. I’m coordinating the content writers, social media specialists and PR people. I make things work at the border between content and Public Relations. Our aim is to come up with interesting content in order to communicate that to our shareholders, as well as to the general public. My duty is to increase the company’s awareness and to maintain the very good brand image level we’ve obtained after three years of hard work in this area. Sometimes I also write and edit texts, keep in touch with journalists or launch a pitch – things which are really satisfying. What I like the most? To write, the very simple and the main requirement for the job, I think.

What does it take to be a good Head of Communication? What qualities do you need for this?

I think that if you can make a team work smoothly together, without depending on you as a manager, it means you’ve created something solid, you’ve done your part. It’s hard for me to say, given my job, which per se skills one needs. However, I believe that you can’t be Head of Communication in a modern tech company if you’re not inventive, if you’re not creative or you don’t have leader skills, even if sometimes that means not being the nicest guy in the room. From my point of view, a Communications Manager with no writing skills, with no creative vision or one that hasn’t written an article once in his life doesn’t deserve to be Head of Communication in a company which is part of the new tech wave.

Bill Gates said: “If I was down to my last dollar, I would spend it on public relations.” How important is the PR department for a company nowadays?

Well, this sounds so Bill Gates. I disapprove this statement. If you know how and when to spend on PR, or – more importantly – on who to spend it, you will never get down to the last dollar in your pocket. Otherwise, the above statement is a nice quote that highlights our important job nowadays. 

David Graeber, one of the 21st century’s brightest minds, has put Public Relations on the ‘bullshit jobs’ of our society. In his work titled ‘Bullshit Jobs’, he criticized the capitalist system and explained that the world needs to change its paradigm and focus on the true working people – the ones who reap the coffee beans, who bake bread, who deliver pizza and so on. Well, anthropologist David Graeber was right, but the capitalist world functions only through jobs like these which can only be found in the imaginary, and the late intellectual anarchist knew that. That’s why being a PR is the daily job of the world’s richest person, Elon Musk. Every day, the founder of Tesla and Space X does just that: PR, launching newsworthy information in media, publishing on his Twitter account.

Is doing PR in tech harder than in other industries considered more appealing: fashion, automotive, cinema, aviation?

I don’t know if it’s harder, but for me it’s nicer because we’re talking about the most exciting domain of our generation – whether we like it or not. Our children would rather have a smartphone than a car, they prefer to live by positioning themselves in relation to a social network rather that the real world. “I’m going for a coffee in a certain place because there I can do a nice Insta story which shows me there, in that cool cafe”. The issue here is that not only the new generations do that, but also us. 

When communicating in tech, the hardest part is to convey to the general public, in an easy-to-understand manner, what the company is doing. To translate the specifics of the tech industry into an easy reading language for the public. That’s harder to do for the newer industries than the older ones, already known, because that specific language hasn’t been invented yet. We’re doing just that now by communicating: we are inventing a new language.

What do you like the most about Modex as a company?

I am glad that Modex is one of the main players from the blockchain sphere, a company that is taking this revolution further. Ever since inception, blockchain was all about revolution, about giving power back to the people, that power taken by centralized organizations such as banks or states. A revolution which started in 2008, when the big financial crisis happened. Once things calmed down, people were needed to do real work, individuals who could build something, and I believe that Modex is a team of men and women who come into this blockchain area and build stuff for the future. 

Without doubt, the future will be digital, and blockchain plays a big part in all this. It’s a technology that protects data, it’s about interoperability between emerging technologies that are slowly starting to take over our private and public lives. What I like the most about Modex is that it offers companies, public and private, the possibility of moving to blockchain. Once these enterprises will start using blockchain, so will their customers. So let’s say that blockchain is the revolution, and Modex is the solution. 

How would you describe the working environment at Modex?

We are in the middle of an evolution from a startup to a corporate company. It still has the startup vibe, but it comes with some big company rules. Besides that, it’s an eclectic atmosphere, with developers and IT people work alongside business specialists and creative minds. It’s quite interesting and sometimes challenging for everybody, but the international mentality and the strong wave of tech that’s coming after us, as human beings, shake things up in an original and attractive way.

If you were to turn back the time and start your career all over again, would you do the same thing or something else?

No, I wouldn’t do the same, because we only live once. I would do everything differently because this contrafactual cliché proposal it’s an opportunity to see something else. Jokes aside, I would have liked to be a film director. 

Your hobbies? What do you do in your free time?

I’d like to have more time to read books, especially literature and history. To watch movies, especially art movies, old and new, or cycling competitions like Tour de France, Giro or Vuelta and to imagine myself in those fantastic places… But with so many things to do nowadays, I don’t always have time to fully enjoy these hobbies. Also, I like to drink specialty coffee and to make and serve very good espressos to other people, and thus make them happy. I enjoy travelling, and I prefer those cities with a lot of history. 

I’ve spent my communist childhood enjoying interactive Globe and Terra maps and I’ve imagined myself, in a Jules Verne manner, visiting Africa, exotic islands or wild and remote areas, but those places are not for me in the real world. So, visiting historic places like Rome’s Forum, the Berlin wall, Nevsky Prospekt in Sank Petersburg, Beijing’s Tiananmen Square or Place de la Concorde in Paris it’s exactly what I liked the most.

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Modex stores diplomas directly on the blockchain for students who took the blockchain class 

Modex is proud to announce that it ranks among the first companies to reimagine the education system by employing innovative technology and storing student diplomas on the blockchain. 

The “Fundamental of Blockchain Technology” course, organized by Modex in partnership with the Polytechnic University of Bucharest, has concluded. Students who have successfully passed the course have been awarded a traditional paper diploma that attests to their knowledge of the topic taught at the course, but with an innovative twist. The diploma also contains a smart contract address and additional information that can help students who graduated to find and access their diplomas on the Ethereum blockchain. Students also received the information necessary to access their diploma on the blockchain via email.

Introducing blockchain to the next generation of developers

2020 marked the beginning of the first blockchain academic course in Romania. The result of a scientific research and educational partnership signed in the same year between Modex and the Polytechnic University of Bucharest, the Faculty of Automatic Control and Computer Science, the course aimed to give students the opportunity to study blockchain technology under the tutelage of Modex experts.

The blockchain curriculum was developed and taught by Alin Iftemi, Chief Business Officer & Modex Co-founder, who went back to school, this time donning the teacher’s robe as he made use of his extensive tech background to help students take their first steps in the world of blockchain. 

Taking a somewhat different approach than a traditional technology-focused course, the “Fundamental of Blockchain Technology” covered besides the technical information and concepts, a comprehensive analysis of the real-life applicability of the technology in the business and enterprise sectors. By understanding how blockchain manages to deliver its unique set of features and characteristics students gained deeper insight into how blockchain can be used to streamline operations and protect data records from a wide range of disruptive cybersecurity threats.

Students were also introduced to the Blockchain Database technology developed by Modex to help them understand how blockchain can be used to augment existing IT infrastructures and unlock new business opportunities and technological propositions for legacy systems, without requiring a complete infrastructure overhaul.

“This course was a fun learning experience not only for students but also for me. Blockchain is one of those technologies that seems easy to understand but is difficult to master. I’m glad to say that students were very receptive to new concepts and thinking patterns. Blockchain is witnessing a surge in popularity, and I hope that this will motivate students to continue in this direction and eventually pursue a career in blockchain development. Romania certainly has a well of young talent, that if guided properly, can help make this country a leader in the blockchain development market. For their efforts and hard work, we at Modex have decided that it is only fitting to make use of the technology we have taught them and store their diplomas on the blockchain”, added Alin Iftemi.

How to access the diploma on the blockchain

To acknowledge all the hard work that students put in, Modex has decided to make use of the technology taught to students and store their diplomas immutably on the Ethereum Blockchain.

After graduating, students received a physical diploma that also contains the address of the smart contract they need to interact with to view their diploma and a unique ID linked with their name. Via email, the students also received the contract address, their ID and the ABI which acts as an interface that outlines what function they can perform with the contract.

In order to access your diploma on the Ethereum blockchain, you will first need to create a wallet if you do not have one. MyEtherWallet will be used as an example, as it is easy to use and has a quick setup time. You need to download the MEW app, which is available both on IOS and Android and begin to configure your new wallet. After configuration, you can connect your MEW Wallet App to MEW Web. Then go on the left side of the screen, select Contract – Interact with Contract. Copy the Contract Address to the Contract Address field and the ABI code to the ABI/JSON Interface field and hit Interact. In the Interact with contract interface you can execute multiple functions:

GetCourseName returns the name of the course

GetDiplomaByld requires you to introduce your ID in the idDiploma field. Calling this function will return your name, proving that you are among the students that graduated the course

GetTeacherName returns the name of your course instructor

The course developed in partnership with the Polytechnic University of Bucharest is part of Modex’s educational campaign in the academic environment and a strategy to stimulate the growth of young talented developers to help them cultivate their skills, making them ready to answer the needs of the market. Through these types of initiatives in education, Modex aims to give back to the community and make Romania a leader in the blockchain development market.

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Blockchain, a trust framework for the oil and gas industry

Since the dawn of ancient civilizations, petroleum and natural gas have played an integral role in the development of human society. Starting with the late 19th century, the modern oil and gas industry started its ascension as one of the supporting pillars of the global economy and social progress, acting at the same time as the foundation for the energy sector.

For the past decades, there has been a shift in mentality as the world seems poised to research and develop new energy alternatives that do not rely on fossil fuels.

Even so, studies and reports like the “BP Energy Outlook 2019 edition underline the fact that the oil and gas industry will continue to hold a strong foothold on the global energy market and in the global economy in the next 30 years. 

As opposed to other industry sectors, the oil and gas industry has manifested an openness and effervescence towards implementing new technology into every segment of its flow of operations to increase efficiency, safety, and productivity. IoT sensors, 3D modelling and Visualization, Artificial Intelligence, robotics and automation, intelligent drilling technology and intelligent oil and gas fields are only a fraction of the technologies adopted by the sector in its road to digitalization.

Nonetheless, operational friction points and some bottlenecks remain present, especially in the management and data storage department. As an industry based on an intricate web of actors and middlemen spread throughout the globe, the oil and energy industry is in dire need of a framework capable of ensuring collaboration, transparency and more importantly, trust in the data that is processed.

An answer to the issues faced by this multitrillion-dollar sector can be provided by blockchain, a technology that in its early days acted as the backbone for Bitcoin, the first successful iteration of a decentralized cryptocurrency. As blockchain started to grow and mature as a technology, it slowly began to distance itself from its initial role of cryptocurrency enabler, acting as a foundation to a wide array of use cases, that leverage blockchain’s unique array of benefits and functionalities like distribution, decentralization, enhanced security, trust, transparency, consensus, data integrity assurance, immutability, and traceability.

Blockchain’s wide palette of functionality and features has brought the technology into the attention of giants of the tech industry such as IBM, Microsoft, Amazon, and Oracle who are constantly researching and releasing new PoC’s that use this technology to augment existing systems or replace them entirely. At the moment of writing, blockchain is witnessing an unprecedented growth rate, reaching a market of USD 3024.54 million in 2020. 

Modex offers a new approach to blockchain adoption

Despite garnering much attention from the tech community and savvy entrepreneurs, blockchain still remains a somewhat elusive proposition. A significant segment of industries, businesses and enterprises are signalling their eagerness to tap into the disruptive benefits of this technology. The problem is that many of them are deterred by the costs, complexities, and hidden technological overhead that a transition to a blockchain infrastructure may entail.  

As one of the early promoters of blockchain, Modex carefully analyzed the implementation lifecycle of this technology and in a balancing act, experimented with a multitude of use cases and PoC’s that tried to answer the demands of the market, without compromising the core values of blockchain. 

 Modex’s response to the blockchain adoption question is its patented Blockchain Database (BCDB) technological solution that connects to existing IT infrastructures with minimal changes to add a blockchain layer that grants access to all the benefits this technology offers. This outside the box approach to the technology makes blockchain’s features accessible to multiple business sectors without requiring companies or any other types of organizations that wish to access its benefits and features to completely change their infrastructure.

With multiple approaches to implementation, the technology developed by Modex can also be used to build new infrastructures from the ground up, so companies can integrate a blockchain layer into their applications and infrastructures even from the design stage.

The innovation of the BCDB solution stems from the fact that it hides all the complexities of blockchain technology behind the familiarity of a traditional database system, to give companies access to all the benefits offered by a blockchain framework like decentralization, distribution, data traceability, integrity assurance, immutability, and transparency, all while retaining the familiarity of working with a classic database system.

In the oil and gas industry, the technology developed by Modex can support and enable certifiable trust, enhanced data protection & secure data sharing, improved data accuracy, data ownership and privacy. Furthermore, the technology layer developed by Modex promotes a new data-sharing model in multi-stakeholder ecosystems, based on interoperability.

Challenges faced by the oil and energy industry

The oil and gas industry is approaching a crossroads, as countries from all over the world are implementing new measures in an effort to reduce the level of carbon emissions, while actively searching for greener alternatives. This change in mentality further puts pressure on an industry that must cope with outdated management infrastructures. Some of the challenges faced by the oil and gas industry are:

A large amount of paperwork and reconciliation. Energy transactions often involve a wide range of documents and orders such as purchase invoices, shipping documents, bank release funds etc. which adds to the complexity of the process.

Lack of transparency. Industry giants need to make sure that all the documents are in place and accessible to all stakeholders, which is a time-intensive process. These documents can include compliant documents, audits, and associated paperwork. The industry currently lacks a cohesive system capable of ensuring that each actor involved gets the same version of the information in a timely manner.  

The supply chain network for large oil companies is incredibly complex, involving various parties such as shippers, suppliers, and customers on a global scale. This complex network of actors often creates large administrative overheads that lead to bottlenecks and friction points.

Oil and gas contracts often involve cross-border payments, which makes the payment structure complex as cross-border payments are time-intensive and incur additional costs.

The third-party management costs in the oil and gas trade are relatively high, the trade negotiation process is inefficient, and the exchange of critical data is slow.

Important business data resides in siloed data centres that are vulnerable to cyberattacks.

What blockchain brings to the oil and gas industry

The oil and gas industry needs a framework capable of ensuring collaboration, transparency and more importantly, trust in the data that is processed. With its unique set of characteristics, blockchain can answer some of the pain points present in the oil and gas industry, while also ensuring trust and collaboration between all the actors involved in this sector:

distribution – due to its design, blockchain promotes a new working model that operates based on collaboration. After verification, data is distributed to every member of the network, so that every participant has a copy of the information. This design choice renders data silos obsolete, while also removing the need for reconciliation between parties.

consensus – blockchain is a technology built to facilitate cooperation. Every decision made in a blockchain network requires the consent of the majority of its members.

transparency – as every member of the network has access to the data, the blockchain records are easily verifiable by every participant.

permission based-access – private blockchain is owned by a private entity or a consortium of companies. External entities can join the network only if they receive permission from the owner to join.

decentralization – because the data is distributed to every participant of the network, verification and network maintenance does not rely on a single centralized authority. This means that blockchain is immune to the dangers found in centralized systems.

enhanced data security – once data has been introduced in a blockchain network, its integrity is ensured by the complex inner workings of blockchain. Data cannot be altered without compromising the entire data chain. Any data discrepancies are automatically detected by the system, which allows companies to pinpoint in real-time any tampering attempts.

traceability and record history – blockchain is an append-only structure. This means that it does not follow the traditional CRUD paradigm of standard database systems. Information is never deleted. When a record suffers a modification, a new entry is created and appended to the system. This means that a complete history of every version of the data is maintained in the system.

streamlined auditing – as an append-only structure, blockchain provides an indisputable record history of all the data that has been introduced in the network.

data immutability – by combining cryptography with hashing algorithms, blockchain ensures data immutability. In turn, immutability provides data integrity which drastically simplifies audit processes, while providing proof to stakeholders that the information has not been altered.

encryption – encryption ensures that network members see only information that is relevant to them, and that data is secure, authenticated and verifiable.

smart contracts – self-executing code that runs on top of the blockchain. Smart contracts trigger when pre-defined criteria are met to execute a set of business logic agreed by the participants involved. Smart contracts can be utilized to automate the execution of automatic contracts or agreements.

Blockchain is already getting traction in the oil and gas sector

Blockchain’s potential to streamline operations across the oil and gas value chain hasn’t gone unnoticed by big players from the industry. 

2018 saw the formation of VAKT, a blockchain initiative formed via a consortium composed of oil companies and banks. Its members include BP, Gunvor, ABN-AMRO, Equinor, Koch, ING, Shell, Mercuria and Societe Generale. The goal of the consortium is to solve industry-specific problems and to collaborate on identifying a common set of issues such as data quality and counterparty disputes that can be resolved with blockchain technology.

Commenting on the initiative, Andrew Smith, EVP Trading & Supply, Shell International Trading and Shipping Company Limited, commented that “Collaboration with our peers and some of the industry’s key players is the best way to combine market expertise and achieve the scale necessary to launch a digital transaction platform that could transform the way we all do business. Ultimately the aim is improved speed and security, which benefits everyone along the supply chain from market participants to customers.”

A similar initiative took place in 2019, with the formation of the Offshore Operators Committee (OOC) Oil & Gas Blockchain Consortium. The consortium is composed of big names from the oil and gas industry like: Chevron, ConocoPhillips, Equinor, ExxonMobil, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Repsol and Shell who are working together to study and define blockchain use cases across the industry value chain.

“Creating the OOC Oil & Gas Blockchain Consortium is a significant step toward establishing key blockchain standards, frameworks and capabilities for the oil and gas industry,” said Rebecca Hofmann, chairman of the OOC Oil & Gas Blockchain Consortium. “Blockchain technology is a catalyst for reimagining the way we do business, and this consortium represents a collaborative effort to explore the technology’s potential and leverage learnings to drive industry adoption.”

In 2020 the OOC Oil & Gas Blockchain Consortium successfully concluded its first blockchain pilot in the oil and gas industry. The results of the pilot showcase the potential of blockchain technology to streamline operations and increase efficiency in the sector:

reduced process workflow from 90-120 days to 1-7 days and from 16 to 7 steps, requiring zero manual intervention.

85% of all volume measurements were automatically validated against data from multiple parties, with the potential for near 100% auto validation with future enhancements.

validations automatically trigger the execution of related invoice transactions, which reduces financial risk by giving assurance that payments coincide with field activity.

delivering a potential of 25% – 35% reallocation of resources versus current business process for operator and trucking companies.

Modex Blockchain Database delivers a suite of disruptive functionalities and features to the oil and gas industry

Modex BCDB is a middleware software solution that combines the functionality and familiarity of traditional database systems with blockchain, a technology designed to facilitate unparalleled levels of data integrity. Bundled as an Infrastructure as a Service offering, Modex BCDB is devised to act as a building block that companies can use to build an infrastructure tailored to their specific business requirements. What makes the Modex technological layer stand out is the fact that it incorporates a blockchain component that unlocks a series of powerful features:

Complete Data Ownership – companies that store their data on the BCDB platform are in complete control and the indisputable owners of the data they add into the platform. As such, they can decide who, when, and how their data can be accessed within the ecosystem.

Customized permissions – each member organization is linked to an authorized user account. Through the user account interface, companies store data, configure preferences, and request access to the data owned by other members of the ecosystem based on their permission. After permission has been granted by the data owner, the authorized user can decrypt the data permanently or for a limited time frame.

Data integrity and immutability – when a data set is recorded in the blockchain component, it cannot be tampered with by any party without alerting all the other members, regardless of the permission levels they may have.

Monitoring – when confirming a request for accessing another party’s stored data, the data owner can track all the logs generated by the user who was granted access.

Disruptive benefits for the oil and gas industry

With a unique set of characteristics and features, the technology developed by Modex delivers a set of data-related benefits that extend not only to the beneficiary of the Modex technological layer but also to their end customers and business partners.

Certifiable trust – Modex BCDB elevates the concept of trust to a whole new dimension. Trust no longer requires people to place their faith in the ability of companies to safeguard their valuable data. With the Blockchain Database solution, trust is guaranteed by technology.

Enhanced data protection & secure data sharing – with blockchain technology at its core, Modex BCDB creates a highly secure ecosystem for sharing and storing data. Security is further strengthened by the complex layer of encryption offered by the Modex platform. The flexibility of the encryption system enables beneficiaries to encrypt all the data entries or only certain fields from a table. As an append-only structure, data cannot be deleted once it has been passed to the blockchain, making it immutable.

Improved data accuracy – Every member of the blockchain network holds a copy of the stored information. Therefore, only one version of the information is shared between participants. This means that conflicting documents and records become a thing of the past.

Efficient data reconciliation and audit – integrating multiple database systems and software applications with a blockchain backend facilitates a better flow of information and a higher degree of transparency and trust in data. Transparency generates traceability and accountability, while data trust is guaranteed by the complex technological layer facilitated by the BCDB solution. These two features consolidate and streamline a clients’ internal operational flow. In a multi-party system, trust and transparency creates cohesion and improve cooperation on data.

Data privacy – trust is a fundamental value guaranteed by the technology developed by Modex. Paired together with the access control mechanisms built in the Modex BCDB solution, the newly created ecosystem ensures that data can be accessed only by authorized users.

Fast document verification – through Modex BCDB, oil and gas actors have access to a distributed ledger of data that holds all the necessary documentation in an easily accessible medium that is available 24/7. As such, document verification is performed almost instantly with the hit of a button.

No more conflicting documentation – the oil and gas industry involves a wide range of actors that need to collaborate seamlessly especially on documentation. Often than not information gets disjointed and disparate when so many actors are involved. Modex BCDB removes the need for costly and time-consuming documentation reconciliation because it ensures that every party involved has the same version of the data.

Blockchain use cases in the oil and gas industry

Digitizing crude oil transactions

In 2017, Natixis, a French corporate and investment bank was the first private entity to pioneer a blockchain solution in commodity trade for US crude oil transactions. Built on the Linux Hyperledger, the platform digitizes crude oil transactions with blockchain, which reduces friction costs while adding an additional layer of transparency and security. 

In crude oil transactions, blockchain brings all the trading parties, namely the buyer and seller along with their respective banks on the same digital ledger. The advantage of this type of structure is that it brings forth unparalleled levels of transparency to a previously opaque industry, as all the details and documentation pertaining to a transaction become visible to everyone. 

Besides revitalizing the record-keeping mechanism, the distributed nature of the blockchain platform as well as the immutability of the data introduced in the network act as a barrier against fraud, external tampering, and cybercrime. A platform shared across multiple organizations can be a huge step towards the standardization of data formats, which increases efficiency exponentially as it enables data interoperability and process integrity.

Improve trust between parties

Distribution, decentralization, transparency, and data immutability makes blockchain an ideal environment for storing transaction data, employee track records, contractor certifications and sensitive information. Trust is ensured by the system, as there is only a single version of the truth that can be accessed at any given moment by every member of the network. 

Quick and easy access to information means that any eventual dispute can be resolved in a matter of minutes, not days with minimal costs. A private blockchain network can safely store the track record of employee and contractor certifications. Besides improving trust between companies, a blockchain network can also help cut down on hiring costs while ensuring improved job safety and performance.

A Cryptocurrency Pegged Against Oil

Oil is one of the most valuable nonrenewable energy sources in the world, a cryptocurrency pegged to oil could be a viable replacement to traditional financial transactions that rely heavily on third parties for their operations. A cryptocurrency pegged against oil enables direct transfer of value between industry actors without the need for trusted intermediaries like banks.

Enhance compliance

The oil and gas industry is subjected to rigorous regulation with protocols deriving from various regulatory authorities. This intense verification process often spans a period of months due to the complicated paperwork involved. A blockchain platform can enable real-time data sharing and transparency with regulatory authorities to help resolve convoluted issues in a matter of days.

Streamline land record management

It’s imperative for oil and gas companies to properly manage land records, as millions of dollars worth of investments and profits rest on these documents. Traditionally, the process is straightforward, once the terms of the sale are agreed upon, the records change hands along with the money. But there are cases when ambiguous records make it difficult to determine who owns the property, not to mention that forgery is a real issue faced by the real estate industry.  

Countries such as India, Sweden, Columbia, and Georgia are researching blockchain technology to create platforms that can store records of sale and land titles and create an immutable audit trail of property ownership which can be accessed in real-time to clarify disputes and give tax authorities accurate land titles when requested.

Enhanced data storage

The oil and gas industry relies on the Internet of Things (IoT) to store equipment history records, monitor operations, and increase efficiency. IoT sensors function as an interconnected network of devices that communicate with each other over the internet.

The problem is that the current IoT systems rely on a centralized model of communication similar to a legacy server-client system. A centralized structure creates a single point of vulnerability that can be exploited by malicious individuals or become the subject of corporate espionage.

This vulnerability can be easily mitigated by storing equipment history records on a blockchain network. Once stored on the blockchain, the information is distributed to every member of the network. This design choice mitigates the vulnerabilities of a centralized model while ensuring that data dependency, immutability, and cryptography makes the system impervious to external tampering and cybersecurity threats.

The oil and gas industry is a multifaceted sector that encompasses a wide range of intricate processes and diverse actors who need to collaborate and exchange industry sensitive data. The current management and data storing mechanisms employed by the industry are unable to adequately respond to the needs of an increasingly dynamic and interconnected industry. 

Blockchain presents itself as an ideal data framework capable of ensuring the storage, trust and collaboration demands of the oil and gas industry, all while preserving privacy. Furthermore, blockchain seems capable to streamline oil and gas operations by reducing workflow processes and removing middlemen from the flow.

[electronicstudentwerewolfstuff]

Modex Blockchain Database integrated with Carter’s AI-driven home automation systems

Modex, a leading Blockchain Database provider, is announcing that its Blockchain Database (BCDB) flagship product will be integrated into Carter’s AI-driven home automation systems. 

The home automation market is undergoing a progressive transformation propelled by the proliferation of smartphones and tablets. An additional opportunity – generated lately by the profound change in people behaviour induced by the Covid-19 pandemic – is that people invest more in home comfort, efficiency and safety, says Carter.

As many professionals around the world are still working from home and will continue to do so for a while, home automation systems become more important than ever. These systems have a significant impact upon our lives, bringing enhanced comfort, smaller bills for utilities, as well as higher domestic and business security. Moreover, home automation systems help increase the energy efficiency of households and offices, and this leads to a decrease in CO2 emissions, thus contributing to a cleaner environment. 

Carter, the first home automation system that works with Artificial Intelligence

Household activities generate 14% of the total greenhouse emissions. With Carter Home Automation Systems, users can save up to 58% energy consumed in households, “way more than any competitor currently on the market”. By the end of the year, Carter will introduce blockchain technology into their systems in order to present, secure and validate the data regarding buildings efficiency class; secure, manage and track rented and selling real estate contracts; launch a limited edition of NFT’s for blockchain enthusiasts.

Data, securely stored on Modex Blockchain Database

Storing data in a secure environment, without the possibility of someone tampering with that data, is very important when it comes to Home Automation Systems. To store various parameters – for instance, those cases when the consumption was highest or lowest, when did that happen and how – Carter will use Modex’s BCDB (Blockchain Database). By using BCDB, Carter wants to validate that the respective data is real when someone wants to rent an apartment or sell it. In addition, Carter has chosen Modex’s patented solution as it offers immutability and ownership of users’ data. At any given time, only the users of Carter’s home automation system will have access to the encrypted data as they will be the sole owners of the key needed to access this data.

Commenting on the partnership, Mihai Ivascu, Modex CEO and Co-founder, stated: “I am delighted to see Carter choosing our Blockchain Database solution to streamline and add an extra layer of security to their operations. The innovation brought by BCDB stems from the fact that it hides all the complexities of blockchain technology behind the familiarity of a traditional database system, to give companies access to all the benefits offered by a blockchain framework: decentralization, distribution, data traceability, integrity assurance, immutability and transparency – all while retaining the familiarity of working with a classic database system. By leveraging Modex BCDB, Carter will enhance the security and privacy of the data generated by smart homes.”

“Carter has been specifically developed to disrupt the market of the home automation industry. The system is based on the implementation of Artificial Intelligence in order to achieve a high rate of energy-saving and comfort, but without a doubt, this sector could not be complete without blockchain technology. It is essential for users to know that their most important data is protected at all times and that the general data is ready to be presented at any moment, in a secure way. With the help of the technology developed by Modex, we strive to bring complete transparency for the energy efficiency data of any home, so that the process of buying a new home offers more, with full knowledge. We definitely plan to use the technology to its maximum potential. We plan to bring digitalization to the real estate sector and with the help of blockchain, we strive to digitize the contracts. In the long term, we do not exclude the possibility to create a crypto token meant to help the industry of home automation to grow. With the help of Modex, we are proud to pioneer this new technology in the home automation industry”, stated Lucian Popescu, Carter CEO.

About Carter

A team of entrepreneurs and engineers committed to integrating the latest technologies into everyday life, Carter’s mission is to provide hi-tech innovative software and hardware solutions for individuals and businesses with an impact on day-to-day life, providing control and comfort at the highest standards of innovation by using latest technologies, while reducing CO2 emissions and pollution generated by household and business activities.

About Modex

Everything we do at Modex is driven by our mission to solve real-life problems and respond to real business demands by making blockchain adoption affordable, fast and easy for enterprises of any size. Modex Blockchain Database facilitates industry-wide blockchain adoption by combining blockchain technology with traditional data storage mechanisms into a patented hybrid solution that helps public institutions and companies benefit from security, immutability, data integrity – without major investments, special training or year-long implementations.

[electronicstudentwerewolfstuff]

Elena Scherl, Business Development Manager – Enterprise: Modex stands for trust and proven expertise

With almost a decade in the telecom industry and a business etiquette training programme under her belt, Modex’s Business Development Manager – Enterprise is passionate about reading, researching and absorbing information, but she’s also a creative person by painting walls in her free time. Discover more about Elena and her professional journey in this new #WeAreModex interview.

“I believe in continuous learning, so my studies happen every day, although not in an academic format for the past couple of years”, says Elena at the debut of our conversation. Elena graduated from Alexandru Ioan Cuza University – Philosophy and Social-Political Studies, which “proved great at shaping the way I work today.” Since then, she has taken all kinds of classes and certifications yearly, mainly for self-development, networking and improving sales and business development skills.

The telecom industry and a business etiquette training programme

“After several student jobs in several countries, I finally laid down roots in telecom, doing voice trading”, continues our colleague. “That meant the entire sales cycle: from building my portfolio of accounts to working daily with these accounts to increase my company’s numbers. Which I always did! While it seemed like rocket science in the beginning, I stayed for almost 10 years in this industry, which has been very good to me.”

Next after the telecom industry? “A project close to my heart which remained an idea for far too long prior to that: a business etiquette training programme for professionals, for which I obtained a certification, prepared classes, opened an office and bought champagne for my students. Then the pandemic came, the project remained a bit in pending, but Modex happened to be looking for someone like me at that time. Good things and great projects came out of that.”

Working hard to master things

Were there any challenges in Elena’s career she had to overcome? “No particular challenges aside from starting my first proper job in a field I knew nothing about. I’ve worked hard to master things, know and do more than my jobs’ requirements in order to help the companies I’ve worked for grow, as well as to grow as a professional. Once I switched industries, many years later, and started working at Modex, the same anxiety was there at first, not feeling knowledgeable enough. This time, however, I felt more confident that I could master it if I just put it in the work.”

Would Elena do something different in her career if she had the chance to start all over again? “I’m grateful for my professional path and the good things that came out of it. If I were to take another career path, I would be a teacher or a trainer of some sort. I like working with people and the satisfaction of contributing to their growth.”

Making the switch to Modex

Curious to find out how Elena joined Modex? “I started working for Modex in June 2020, mid-pandemic. Met my current boss in a pub through a common friend, had an easy conversation, followed up as one should properly do. With a thank-you and a business cooperation proposal, and then he got back to me with a job offer. Which I’ve accepted and I’m happy I did.”

Elena shares more details about her job at Modex. “I do everything to open doors and get leads: attending events, networking, mentoring start-ups, endless research on various industries, developing strategic commercial and technological channels and partners, onboarding partners, meeting people, educating people (webinars and educational events), tailoring presentations and materials, qualifying opportunities. I’m trying to reach that sweet spot where I can show potential clients where exactly Modex’s unique enterprise-blockchain solutions could really add value in the long-term. It’s not about bazaar sales, but about really setting up connections and making everyone I meet trust the company I work for.”

What does it take to be a good Enterprise Business Development Manager? “Life experience and being socially comfortable. One should have stories to tell, mistakes made, confidence built up. Eventually money always comes if the focus is – first of all – on building genuine relationships with people”, believes Elena.

A lot of trust and freedom at Modex

Elena goes on and speak about what she likes the most at Modex, but also what’s the working environment like here. “I like that Modex has palpable expertise. I take my kick out of success stories, so it makes me proud that I have the right people in the company to build outstanding solutions not only for enterprises, but also for public sector institutions. So as a regular citizen, when I see this coming back to me indirectly, it feels good to know I have also contributed.” 

As for the working environment, Elena says that there’s a lot of freedom and a lot of trust. “We can comfortably say what we think, wear what we like and make our own schedule. I find that invaluable, to be trusted that I do my work regardless of certain factors. I believe that Modex is in a good place in terms of atmosphere, colleagues, perks and what it has built so far, and I expect more good things to come.”

Blockchain’s potential in the enterprise sector

How did the enterprise sector evolve over the past years and how big is blockchain’s potential with companies from this field? Here’s what our colleague has to say about this: “It has evolved at an amazing speed as everyone’s knowledge on blockchain has broadened. So, we’ve moved from teaching people about blockchain technology to discussing very particular use-cases and how exactly we could help. We’ve seen great projects for small use-cases being implemented on the market and small projects with a huge impact. Either way, putting in place a blockchain-based solution lays the foundation for strategic reinvention of processes, as well as new business models that wouldn’t be possible otherwise. I think we’re at a point where enterprises are starting to understand that blockchain does not solve every single problem, but it can solve a lot of existing issues and bring a unique combination of benefits in a single shot.”

How important will the blockchain industry be in the near future? Elena shares her thoughts on this: “I don’t see blockchain as an industry, it’s not sitting in a corner somewhere, solving problems on its own. It’s a technology that requires people to leverage it in innovative ways. In the near future I expect to see more small projects implemented using enterprise-blockchain, especially in highly regulated sectors, paving the way for really large, national or regional projects that can really reinvent an industry.”

[electronicstudentwerewolfstuff]

The MODEX token – the governing currency of the Modex blockchain ecosystem

Modex is announcing that it is gearing up to change the face of blockchain adoption with the MODEX token, an enterprise blockchain enabling token that acts as the governing currency of the blockchain ecosystem developed by Modex.  

Since 2017, the year in which Bitcoin’s value spiked, bringing cryptocurrencies into the attention of developers, entrepreneurs, and giants of the tech industry, Modex was among the few companies that managed to look past all the hype, focusing instead on blockchain, the technology that fueled the crypto craze. 

Recognizing the potential of blockchain, Modex started to set the foundation for a blockchain ecosystem, that aims to make this technology and its disruptive benefits accessible to a wide pallet of industries, enterprises and organizations that wish to distance themselves from the outdated centralized models, prone to numerous security vulnerabilities and operational bottlenecks and migrate to an enhanced decentralized model powered by blockchain. 

Now in 2021, as the technology has gradually matured and with a wealth of experience under its belt, Modex is eager to declare that its utility token, the centerpiece that binds together all the components of its blockchain ecosystem will soon be available to any company or organization who wants to benefit from what blockchain has to offer without needing to worry about lengthy development times and complex integration processes. With the MODEX token, organizations can now access all the services and technologies developed by Modex and make a seamless transition to blockchain. With a total token pool of 266,399,993, the MODEX token was first introduced into the market in September 2018 through an Initial Token Offering (ITO) and, at the moment of writing, it can be purchased from trusted exchanges like UniSwap and HotBit.

Blockchain-based digital assets

Blockchain-based digital assets are a digital representation of assets that circumvent the shortcomings of traditional financial instruments, enabling more liquidity, higher transaction speeds and lower costs. Often used as an umbrella term, blockchain-based digital assets encompasses cryptocurrencies and tokens.

Cryptocurrencies

Cryptocurrencies are a digital or virtual medium of exchange that uses cryptography to secure the exchange of digital information and control the creation of new units. Unlike traditional fiat currencies, cryptocurrencies exist only in a digital format and are not controlled by a central authority like governments. In essence, cryptocurrencies are just limited entries in a database that no one can change without fulfilling specific conditions.

Cryptocurrencies are issued directly by the blockchain protocol they run on, which is why they are often referred to as a blockchain’s native currency. The most well-known examples are the Bitcoin blockchain, with the Bitcoin (BTC) as its native currency or the Ethereum blockchain with Ethereum (ETH) as cryptocurrency. Besides its uses as a medium of exchange and storage of value, cryptocurrencies play an integral role in their blockchain ecosystem, often being used to pay for transaction fees, acting also as an incentive for users to keep the blockchain network online and secure.

Over the years, the number of cryptocurrencies has increased exponentially, and the total number of cryptocurrencies continues to grow each day. New York Times estimates that about 100 new cryptocurrencies are created each day. Regardless of if we are talking about the most popular cryptocurrencies on the market or the more obscure ones, they all share a common set of characteristics:

Operate on its own blockchain: every cryptocurrency operates on its own blockchain network that keeps track of all the transactions made with that currency. Cryptocurrencies incorporate the logic of the blockchain they belong to. Due to the lack of interoperability between blockchains, it is impossible for the moment to transact between two different cryptocurrencies, without an exchange to make the conversion from one currency to another.

Act as digital money: Bitcoin, the first successful implementation of a cryptocurrency was purposely developed to replace the traditional financial system.

Cryptocurrencies can be mined: mining is the process through which new cryptocurrencies are created. The most common algorithms are Proof of Work and Proof of Stake.

Crypto Tokens

The second most common blockchain-based digital asset class are tokens also known as crypto tokens. As opposed to cryptocurrencies that are the native asset of a blockchain protocol, tokens are units of value created by blockchain-based organizations, companies, or projects on top of existing blockchain networks to fulfil a certain role inside their technology ecosystem.

Crypto tokens are created following certain token standards, the most widely used being ERC-20 and ERC-721. ERC-20 is the most common token standard, acting as the foundation for a significant portion of the tokens available on the market, including the MODEX token. At its core, ERC-20 defines a set of rules that a token needs to adhere to such as how the tokens can be transferred, how transactions are approved, how users can access data about a token, and the total supply of tokens. Another popular token standard is ERC-721 which is used in the creation of non-fungible tokens, individually unique tokens that cannot be interchanged with other similar tokens.

Although the market is flooded with a myriad of tokens, each of them serving a different use case and functionality, at their core, tokens share a common set of functionalities and features:

Programmable currency: by using smart contracts, self-executing pieces of code that run on top of the blockchain network, tokens can be enhanced with a layer of automation and additional functionalities that transform it into “smart money”.

Trustless: similar to cryptocurrencies, crypto tokens do not depend on a central authority like banks or governments.

Storage of value: tokens can be converted through an exchange into fiat currency or cryptocurrency. They can also represent physical assets, a utility or a service provided by their platform

Depending on the use case they serve and their underlaying functionality, crypto tokens fall within multiple categories:

Security tokens: security tokens emerged as a result of rising regulatory concerns for digital assets. Security tokens are financial instruments used by companies, governments, or other legal entities to represent a right of property, a stock, bond or share, providing a blockchain representation of real-world securities. Holders of security tokens acquire the same rights that they would get when they buy stocks via a traditional stockbroker such as profit shares and voting rights. The only difference is that the token comes in digital form. The major difference between security tokens and other types of tokens is that they are designed to be investments, so they fall under the same regulatory oversight as other investment products.

Asset tokens: crypto tokens that are backed by real assets such as precious metals, real estate, etc. Asset tokens are used to streamline the trading of the assets they represent.

Governance tokens: a type of crypto token used in blockchain-based voting systems. Its main use is to enable stakeholders to collaborate, debate, and vote on how to manage a system.

Utility tokens: a type of blockchain-based digital asset used to support a network or ecosystem by enabling token holders to access products or services. Similar to cryptocurrencies, utility tokens can be traded on exchanges or directly from the platform they serve. Depending on the platform they govern, utility tokens can serve a wide range of use cases and functionalities, but they do not represent a direct investment like security tokens. There is a relation of interdependence between the utility token and the platform they belong to as the platform provides security for the utility token while the token provides the network activity necessary to strengthen the platform’s economy

MODEX: one token, multiple service

MODEX has been designed as a utility token that backs the enterprise blockchain ecosystem, services and products developed by Modex.

 Purchase the Blockchain Database solution with MODEX to get discount

Businesses who use the MODEX token to purchase Modex BCDB licenses receive a 10% discount. Also, the coveted Modex BCDB Gold Package can only be purchased with MODEX tokens. 

Modex BCDB is a middleware software solution that combines the functionality and familiarity of traditional database systems with blockchain, a technology designed to deliver a slew of disruptive features such as data integrity, immutability, traceability, distribution, and decentralization. Bundled as an Infrastructure as a Service offering, Modex BCDB is devised to act as a building block that companies can use to build an infrastructure tailored to their specific business requirements. What makes the Modex technological layer stand out is the fact that it incorporates a blockchain component that unlocks a series of powerful features and functionalities without requiring any prior knowledge of blockchain development.

Smart contracts available at the click of a button

The Modex Marketplace was designed to make smart contract technology and DApps available to companies that do not have an in-house team of developers specialized in this technology. With a wide library of smart contracts to choose from, companies can purchase with the MODEX tokens ready-made smart contracts and DApps.

The Modex Marketplace has an inbuilt bounty functionality that allows companies to post a bounty for a solution custom-tailored to answer their business needs. Fully backed by the MODEX token, this functionality allows developers to compete and provide the best solution that fits the parameters forwarded by the beneficiary. The first developer to provide a solution that matches the client’s parameters wins the bounty and the MODEX tokens attached to it.

Besides smart contracts and DApps, the Modex Marketplace will be extended to include a wide range of smart contracts, extensions, and plugins tailored to extend the functionality of Modex’s flagship product, the Blockchain Database solution, enabling a higher degree of customization for companies who wish to personalize their blockchain experience.

Authorization blockchain network SaaS

Modex is currently setting the foundation for its Software as a Service offering – the Modex BCDB authorization network, which aims to cut infrastructure maintenance and support costs, by enabling external verified parties to leverage their hardware resources to actively participate in the maintenance of the ecosystem in exchange for MODEX tokens. Depending on what resources they are willing to share, external parties can join the Modex ecosystem as an archiver node, or as a validator node.

By leveraging storage space, external parties can become archiver nodes, meaning that they will be able to store a section of the blockchain in exchange for MODEX tokens. Archivers will receive a static reward for leveraging their storage space and an additional reward for each interrogation made to the blockchain nodes they are hosting. As the name implies, archiver nodes will only have storage privileges, meaning that they will never be able to read, modify the data, act as a validator, or generate transactions. Furthermore, archivers will only store encrypted metadata, so they will never be able to decipher the information they are hosting. 

The archiver role will complement the newly implemented data pruning functionality implemented by Modex. Blockchain data pruning is a mechanism that aims to optimize the storage space by cutting down on the number of blocks made available on the blockchain. For example, if you have a blockchain composed of 10 000 blocks, you can prune the respective blockchain to show only the last 1000 blocks. In the Modex ecosystem, the remaining 9000 blocks are distributed between users that act as archiver nodes and get rewarded for their service with MODEX tokens as well as for the number of interrogations and queries they receive. This mechanism is set in place to optimize storage space while also preserving the data immutability, integrity, and traceability of blockchain technology.

After a thorough KYC process, external parties can act as validator nodes and contribute directly to the consensus process and be rewarded with MODEX tokens. As a validator, users will take part in the decision process and help determine the order of the blocks in the blockchain. Even so, they will act in a limited capacity, as they will not be able to propose transactions or generate blocks.

The right tools for the trade

Crypto wallets are an indispensable tool for managing and transacting your tokens or cryptocurrency. The name may be a bit misleading as a crypto wallet does not actually store your cryptocurrency or tokens which resides in the blockchain ecosystem they are part of. Instead, crypto wallets store and secure the private keys that are used to prove ownership of the blockchain-based digital assets and allow users to perform transactions. Losing your private key means that you also lose the ability to access your assets.

Modex is working on developing its own fully decentralized wallet, capable of securing stored funds and data thanks to blockchain technology, cutting-edge encryption techniques and the latest security protocols available on the market. With a streamlined approach, users will be able to create their own Modex Wallet with just a few taps, without having to choose a username, set a password or write a phrase to recover their forgotten log-in credentials. To simplify the acquisition of MODEX tokens, the Modex Wallet will allow users to directly purchase tokens directly with their credit cards.

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Modex’s CEO previews what’s next in blockchain technology and cryptocurrencies

On October 13th, Mihai Ivascu, Modex CEO and Co-founder, was one of the speakers at Forbes’ reINVENTing Romania virtual event themed “In which industries can blockchain technology be used?”. Here’s what Mihai had to say about blockchain, the future of this revolutionary technology, but also cryptocurrencies and regulations in this domain.

After a brief overview of blockchain technology, how it works and how blockchain-based transactions take place, Modex’s CEO touched upon the industries where blockchain is currently used, but also where it could be used in the future.

“Blockchain can make a difference when it comes to the reporting area, for instance. Let’s say you are a regulator (insurance, banking sector, telecom and other highly regulated industries) and you collect data. How do you collect data from companies reporting to you? Manually. Each company, including in the United States, is reporting manually. Based on this reporting a check is done, then the process goes back to the company which is reporting. There’s a high risk that the respective data can be modified during these phases of the entire process”, stated Mihai Ivascu. 

Modex’s CEO explains blockchain’s main points at Forbes event

Eliminating risks with a blockchain-based network

“So now we have a direct reporting mechanism. Basically, all the data leaves the company that must report it and is synchronized, through a private nodes network, directly to the regulator. Through this process, nothing can be modified in the internal database or along the way and everything is reported in real-time.”

Ivascu added: “We have cases of massive frauds in the insurance segment because document numbers, or instance, are left unprotected (they are visible for free). There’s a belief that in a centralized database, everyone who has access to data holds the truth. Therefore, money might go in the wrong direction, as well as sensitive data. There’s a high probability (and in some cases this happens very often) that certain people would like to modify some reports to do massive frauds.”

“If you operate with a blockchain-based network, these risks are eliminated. And you can clearly monitor data versioning, so you’ll be able to see who has modified a certain field with a bad intent at 2 AM and in the morning that field is modified again by the same person, but with a different value. Everything related to unilateral access to a centralized database and data manipulation can lead to massive and numerous frauds.” 

“Therefore, I’m sure that in the next few years regulator from banking, insurance and other fields will implement advance technologies to better monitor those processes. Moreover, blockchain can also be used to highlight transparency in the way governments or public sector institutions are spending public funds. Thanks to blockchain technology, everyone can see a public journal of those transactions and trace where the money went, for which purpose”, believes Modex’s CEO.

Disrupting healthcare and the financial industry

“Currently, Modex is doing several pilot-projects with multiple financial institutions on the global scale to implement such a cutting-edge reporting mechanism. Blockchain can also make a huge difference in healthcare, and Modex has a project in Africa which will debut in December: electronic medical records for children.”

“Unfortunately, around 5 million African children are dying as there is no clear traceability in the vaccination chain. Thanks to our tech solution, parents will be able to upload into the system the vaccination history. This is useful not only in Africa, but also in Europe and the rest of the world. Ask anyone if he / she has a detailed and clear track-record of their vaccination history and you’ll see that it takes 2-3 days or more to gather complete data related to this. But when have all this info placed in a medical wallet, you’ll have not only traceability of what happens to your data, but you can also be part of various research programs.” 

Being the true owner of personal data

“We’ve developed such a solution for a Canadian partner. How it works? A medical company would come to you and say: “I have 828 dollars for each of 1,000 teenagers aged 20-30, who smoke one pack of cigarettes per day, from the British Columbia area. I need this data for research, that’s how much we can pay.” You, as a college youngster, will then receive an SMS saying that this company would like to buy your medical data for 828 dollars. Do you accept or not? For companies doing medical research this is a good tool to obtain relevant data, for users – they become the owners of their data, and an entire business model is created.” 

“If you want to make extra money, you make sure that all your medical analysis is up to date, the medical companies also win, everybody wins. This is not happening currently; you aren’t the owner of your medical data. The moment you leave a medical facility, your data might go out everywhere. The fact that you’re given a paper upon check-out from that facility doesn’t mean we also own our data. So that’s a paradigm shift we’re speaking about which will soon become normality. I believe it’s only a matter of time until that happens on a large scale as everybody benefits from this.”

Will cryptocurrencies become normality?

“For sure. Let’s look at the numbers. Two years ago, there were 5-6 million cryptocurrency owners worldwide. Today, that number has grown to 300 million. I am sure that the cryptocurrency sector will evolve in the coming years but – just like with the evolution of the Internet – 99% of the projects on the market will be fake for various reasons (fraud, incapacity to execute, team break-ups, etc.). However, the remaining 1% will be transformational for various industries and I’m confident we’ll see spectacular results from these projects in the 1% range. Therefore, individuals must be very careful when investing into cryptocurrencies as they can bring substantial losses, not just winnings.”

Regulating cryptocurrencies in various countries

“If we look at China, we’ll see that the government has only banned mining and the active marketing of cryptocurrencies within its borders. China hasn’t banned cryptocurrencies, as many media outlets have stated. You can own cryptocurrencies in China. Let’s move to El Salvador, where some have said that Bitcoin has become the only legal tender. Wrong! Bitcoin has been officially accepted besides the traditional forms of payment available until now. I strongly believe – and our company has been pushing for this since 2017 – the issuing of cryptocurrency should be regulated. If you have a strong framework to validate a company, there are 187 points which need to be fulfilled by that company in order to receive a financial license to operate a Distributed Ledger infrastructure.”

Mihai concluded: “If that framework would be perfectly implemented in every country, even in copy/paste format, the fraud rate would go down by 99% as there’s a high cost of entry. If you want to get in this sector, there’s a well-defined capital requirement, personnel, technology, audit, internal expertise and so on; there’s an entire procedure that needs to be taken. Therefore, I think that the area where increased attention is required is when generating cryptocurrencies as this is the source of 99% of total frauds.”

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Anca Alexe, Business Development Manager – Modex encourages you to take bold approaches

She holds a Bachelor’s Degree from the University of Liverpool, she’s been involved in a community of people interested in smart cities and sustainable urban development, and she enjoys watching political talk shows, but also reading, cooking and travelling. Meet Anca, Modex’s Business Development Manager, our next guest in the #WeAreModex series of interviews.

Anca’s interesting story begins in Romania’s capital, Bucharest. “I lived and studied in Bucharest from 1st to 10th grade, then I moved to the UK with my family and finished high school there. Afterwards, I went to the University of Liverpool, where I got a Bachelor’s Degree in Communication / Media and International Politics. I moved back to Romania after university, but my parents are still living in London, so I go there quite often (at least I used to before the pandemic made it really difficult to travel to the UK).

Journalism and community projects

Anca started working right after returning to Bucharest, in the summer of 2017. “Before that, I had had various summer jobs or internships. My first full-time job was at an SEO agency, but I didn’t work there long, as I came across an opportunity to work as a journalist at Business Review, an English-language business magazine and online news outlet where I spent two great years.

Another project that I contributed to for more than three years and which remains very close to my heart is UrbanizeHub, a community of people who are interested in smart cities and sustainable urban development. I worked on various communication-related tasks within the project, from content writing to social media or event planning / management, but the best part was the fact that I met lots of wonderful people through the project, many of whom are still great friends.”

Career challenges and the excitement of blockchain

Were there any particular challenges in Anca’s career she had to deal with, solve them and move on? “I wouldn’t say that I’ve had any difficult challenges to overcome; I think I’ve been pretty lucky in that sense. Maybe the only thing I’ve found hard to explain over the years was the fact that I decided to come back to Romania instead of staying in the UK after graduating from the university – some people raise an eyebrow when they find out. But I don’t regret it. It’s also quite challenging to work in an industry like blockchain, because it is still in the early stages and things are still being figured out at all levels. However, that’s exactly what makes the work exciting, so I don’t see it as a bad thing at all”, believes Anca.

Joining Modex, a new professional chapter

Anca joined Modex in December 2019. How? “I came through a recommendation from a former colleague from Business Review (George), who has since been my manager here. He was – and still is – one of my best friends, which made the transition much easier for me, and being among friends makes the job fun in general.”

Curious to find out more about Anca’s tasks at Modex? She explains: “My job involves all the normal tasks related to business development (building sales channels, market research, presentations, etc.), but since the industry is really dynamic and the manuals are still being written, we tend to also come up with our own ideas and build jobs around people. Within our team, each person tends to work on things that best suit their own strengths and personal traits.”

Anca continues: “My full job title is Business Development Manager – Public Sector, because through my personal interest in politics and government, I tend to be more attracted to projects connected to public institutions, while other colleagues may feel more comfortable on the enterprise side. That doesn’t mean we don’t work together on lots of things, but each of us is also building in-depth expertise in different business segments on top of all the collaborative work.”

Encouraged to take bold approaches 

What does Anca like the most about Modex as a company, as a leading blockchain database provider? “I like the fact that you have quite a lot of freedom to define your own role and that you are encouraged to choose the approach that you think is best in various situations, from the very beginning. Even if you turn out to be wrong sometimes, you’re allow to make some mistakes along the way in order to learn and get better at your job in the process. I think that’s also inherent to the industry we’re in and it reflects onto the company: we always need to maintain some strategic flexibility because things on the outside sometimes go in a different direction than we might have expected.”

Speaking about the working environment at Modex, Anca thinks that “it’s a friendly and laid-back environment, and the entire team is really supportive. I like the fact that people who join the company are always given plenty of time and resources to learn everything they need to know in order to do their job well.” Would Anca take another path in her career if given the chance to start all over again? “I like the way things turned out and I’ve had some great experiences, so no, I probably wouldn’t change much about it.”

The future of the blockchain industry

Our pleasant discussion with Anca also focused on what’s next for the blockchain industry and its importance in the near future. “The blockchain industry is already strong, but it’s still in the early stages of development, which means that we’re still seeing frequent major changes related to both technical aspects and business approaches. It will eventually settle down into a comfortable spot on the wider tech market, but that may take a few more years, and we’re really lucky to be able to witness these developments and participate at this stage.”

Anca adds: “The technology has great potential on the enterprise side, but there’s still a bit of confusion regarding what it can and can’t do – that’s one of the challenges we face at Modex, but after two years I can say that things are definitely improving in this regard.

At the same time, I think the financial side of this technology will continue to have a big impact, but it’s still a few years away from maturity. And even if it does become much more scalable at some point, I find it hard to believe that it might totally overthrow the traditional financial system like some are predicting. It will simply be adopted by more companies and institutions already operating in that world and make some of their jobs easier, and hopefully have a positive impact on regular people’s lives as well.”

Reading, cooking, roller skating and badminton

As always, our chat ends on a lighter note as Anca tells us more about her hobbies. What does she like to do in her free time to unwind? “I’m kind of a politics nerd, so when I’m at home, I watch / listen to a lot of political content like talk shows or podcasts – in addition to a long and varied list of shows and movies from Netflix and other streaming platforms, of course. I love reading, too, and I’d like to have more time for it. Sometimes it’s difficult to disconnect from the world and just focus on a book. Lately I’ve started to really enjoy cooking as well, so I’ve been trying out new recipes and ingredients.”

“In terms of outdoor activities, I like roller skating and playing badminton, when the weather allows it. Travelling is also one of my favourite things to do and I try to visit new places as often as possible. Even though the pandemic has made international travel more difficult, it’s also given me an opportunity to explore Romania more, and I’ve discovered lots of wonderful places over the past year and a half.”

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Modex is present at Forward IV Las Vegas, the Largest Global Conference on RPA

October 5th marks the return of Forward IV, the world’s most immersive gathering of automation experts focused on showcasing how automation is forever changing workplaces around the world. Organized by UiPath, the fourth edition of Forward returns after an absence of one year to Las Vegas, the Entertainment Capital of the World, to celebrate the actors that are making digital transformation a reality and to give attendees actionable insights to accelerate their journey to becoming a fully automated enterprise.

Modex is present at Forward IV as an Emerald Sponsor

Modex is represented at the event by its team of experts composed of Mihai Ivascu, CEO & Co-founder, Alin Iftemi, CBO & Co-founder, Emil Mihaescu, Head of Presales, Laura Manescu, CDO, and Elena Scherl, Business Development Manager, who are ready and eager to welcome any attendees interested to learn more about how the technology developed by Modex can be used alongside the UiPath Orchestrator to enhance the security and auditability of RPA data logs. If you want to find out how blockchain technology can be used to augment your company’s automation journey, come to the Modex stand for a quick presentation to learn how the technologies developed by Modex and UiPath can enhance your business.

Keep in mind that on October 5th, between 1:00 PM – 2:30 PM PDT, Elena Scherl, Business Development Manager at Modex will hold a roundtable titled “Audit and Compliance Solution Designed for Automation Projects”, during which she will illustrate how the Blockchain Database technological layer developed by Modex helps UiPath beneficiaries achieve a streamlined and secure automation experience by facilitating fast and secure data accessibility, transparency, and in-depth information traceability via a new technology solution for the audit trails. The solution proposed by Modex is a non-invasive integration with the SQL server database of the UiPath Orchestrator that enables beneficiaries to track the activity and changes that occur in the database in real-time. This allows companies regardless of what stage of their automation journey they find themselves to leverage the benefits of blockchain in the field of process auditing for compliance and regulatory processes.

Forward IV, bigger and better in every way

After a year of absence due to the global pandemic, UiPath’s Forward event is back for its fourth edition which promises to be the biggest UiPath event of the year, with nearly 3,000 attendees interested in implementing automation and taking their businesses to the next level, hundreds of partners, all reunited together at the prestigious Bellagio hotel from Las Vegas. Spanning two days, from October 5th – 6th, Forward IV will delve into the issue of digital transformation and automation and how they become essential for surviving and growing in the context of uncertainty generated by the Covid pandemic.

Commenting on the event, Daniel Dines, UiPath Co-Founder and CEO, explained that “FORWARD IV is a celebration of those making digital transformation a reality through automation. It’s uniquely tailored to give attendees an experience unlike any other and help them become leading experts in automation strategy and implementation”. The UiPath CEO further underlined that “UiPath, its customers, and its partners are making incredible advances with applying automation to a huge variety of new use cases. Together, we are solving problems in fascinating ways. FORWARD IV is an opportunity for attendees to learn actionable solutions for business challenges, build relationships with their peers, and bring inspiration to their organizations.”

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145 billion dollars were spent on cybersecurity in 2020

Since the outbreak of the pandemic, our lives have moved mostly online, while the usage of video-calling apps in order to hold business or personal meetings skyrocketed. In this context, cybercrime also recorded a huge increase, and is now more profitable than ever. In 2020, global losses from cybercrime reached record-highs, costing the world almost $1 trillion.

On October 5-6, Modex will take part at UiPath’s Forward IV event in Las Vegas. We are looking forward to meeting you at our stand, where we’ll also host a roundtable titled “Audit and Compliance Solution Designed for Automation Projects”. More details about this roundtable can be found here. 

From the government sector to the healthcare industry and the financial sector, cybercrime cost the world almost $1 trillion in 2020 (around 1% of global GDP), according to McAfee’s “Hidden Cost of Cybercrime” report. The report compiled data from publicly available sources on national losses and interviews with cybersecurity professionals from 1,500 companies in Japan, Australia, Germany, France, the United Kingdom, Canada, and the United States.

While $945 billion were lost due to cyber incidents last year, $145 billion were spent on cybersecurity. Losses due to cyber incidents surged by 81% compared to two years ago when damages were $522.5 billion. In the past seven years, losses increased from $300 billion in 2013 to $945 billion in 2020.

Malware, spyware and data breaches

The damage from malware and spyware represented the highest cost to organizations, closely followed by data breaches. The government sector suffered the most from insider threats, while the healthcare industry from ransomware attacks. The most expensive cybercrime types were intellectual property theft and financial crime, which make up two-thirds of all monetary losses. 92% of respondents also said they incurred other non-monetary damages, such as loss in productivity and wasted work hours. The longest average interruption to operations was 18 hours, averaging more than half a million dollars.

One in five organizations doesn’t have a cyber attack prevention plan

Although cyberscurity attacks are rising every year, many organizations still fail to recognize them. One-fifth (20%) of organizations worldwide have no plans on how to protect against cybercrime events. Overall, 19% of organizations have arranged cybersecurity incident response program, but don’t have a prevention plan. The same report states that 1% of companies do not have any cyber incident strategies whatsoever. Japan has the biggest share of organizations that are not ready to handle cyberattacks — 4% of businesses in Japan have no plans on how to prevent or respond to cybersecurity incidents. Meanwhile, in the United States, all organizations have at least one of the security plans in place. 

Organizations in Canada are the leaders when it comes to cybersecurity practices. More than half (55%) of the surveyed organizations there have planned out how to protect against cybersecurity incidents and how to manage them if they happen. While 44% of organizations worldwide are well-prepared to prevent and react to cyber incidents, 33% of businesses globally – although they have created prevention strategies – they haven’t thought out how to respond to cybercrime events.

Which were the most costly types of cybercrime?

Malware and spyware

Based on survey data, spyware and malware (including viruses, worms, spyware, keyloggers, and Trojan horses) cost organizations the most last year. Malware facilitates a range of criminal activities, from ransomware and data exfiltration to the active disruption of networks. Illicit Cybercrime-as-a-Service dealings have allowed malware to simultaneously become more advanced and also more accessible to those without deep technical expertise. As cybercrime markets have become more and more sophisticated, they have seen the emergence of specialized vendors who are experts at designing malware and setting up the necessary infrastructure for an attack. They offer to lease malware to cybercriminals for a fee, creating an environment where a small group of technically minded criminals can focus their full attention on the development of new attack capabilities, and where a large group of less sophisticated actors can easily take advantage of them.

Data breaches

One particularly concerning subset of data breaches are those affecting personal health data. This data can often be one of the most valuable forms of data for criminals because of the way it allows for the precise targeting of fraudulent schemes to vulnerable individuals based on their medical histories. Data breaches are mostly the result of external actors, but there’s an increasing number of instances where they come from insider attacks. 

Phishing

According to the Anti-Phishing Working Group, in the first quarter of 2020 more than 165,000 unique phishing sites were recorded. Phishing has become easier in recent years, as Phishing-as-a-Service offerings have emerged on cybercrime markets. Thanks to these offerings, cybercriminals no longer need to have expertise in designing a phishing infrastructure before sending out their campaigns. Instead, criminals can simply buy from vendors who offer their own kits and hosting, and focus on victims (whose contact details are also easily available from the same markets). 

Ransomware

Ransomware remains the fastest growing part of cybercrime. During the COVID-19 pandemic, ransomware attacks in general have increased 148% from the baseline levels reported in February 2020. One of the most concerning trends in ransomware is the shift towards targets in the manufacturing industry. Security researchers are beginning to see the emergence of ransomware strains targeting industrial control systems, and millions in ransom has already been paid by industry victims.

Financial cybercrime

Today, there are five billion unique user credentials – such as username and password combinations – available on the darknet to cybercriminals. These credentials can grant access to corporate networks or bank accounts and, if used by the wrong people, can cause significant financial damage to individuals and companies. Currently, there are more than 15 billion pilfered credentials for sale on the darknet, five billion of which are unique first-time identifiers.

Business email compromise

Although banks continue to remain a favorite target of cybercriminals, there has also been an increase in the use of business email compromise (BEC), a special category of identity theft. Typically, these schemes target a company’s human resources department or payroll department by posing as an employee asking to change their direct deposit information. Next, the employee’s pay check is wired to a fraudulent prepaid card account. Other forms of BEC scams include spoofed vendor and lawyer email accounts, W-2 form requests, and fraudulent requests for gift cards. This allows for cybercriminals to send emails impersonating any employee, from new hires to the CEO and Executive Board.

Cryptocurrency theft

The theft of cryptocurrencies continues to be a major trend in cybercrime, with over $4 billion in cryptocurrency stolen over the course of 2019 and almost $1.4 billion stolen in the first five months of 2020. These thefts often occur from exchanges and wallets where users keep their coins, using a combination of tactics including phishing, malware, and insider theft. Another emerging trend is crypto-jacking, where malware is installed on victims’ computers to remotely mine for cryptocurrencies. Users may not notice when crypto-jacking is taking place, but it can slow affected devices and draw electricity costs while the mining takes place.

Using technical and synthetic media for cybercrime

AI-enabled cybercrime schemes using synthetically generated media are becoming more prevalent. Synthetic media encompasses not only “deep fake” photo and video content, but also false voice and written media. While AI is also being developed as a defensive tool for cybercrime, like automating threat intelligence using machine learning, industry experts are still worried about the offensive uses of AI in cybercrime. 

Some experts postulate that deepfakes could become a malicious source for exploitation, disinformation and non-consensual pornography. As facial swapping technology gains more mainstream popularity, some experts are raising concerns that this technology could also potentially be used by criminals for malicious purposes like extortion, blackmail, romance fraud, and others. You can read more here about the use of blockchain technology to combat deepfake videos.

Modex, fully committed to data protection and security

Existing cyber security measures seem to act as band-aid solutions that only alleviate or partially prevent an attack from taking place. Maybe instead of focusing on repairing existing security loopholes in current systems, we should consider migrating to a new type of infrastructure that so far has proven to be resilient against cyber security pressures: blockchain.

To circumvent some of the challenges associated with implementing blockchain and to make the benefits of this technology accessible to SMEs and governmental institutions, Modex has created its trademark Blockchain Database (BCDB) solution, a technological layer that fuses the advantages of blockchain with a database system, a technology that is already deeply ingrained in every business and industry sector, to create a hybrid software product that makes blockchain easy to use in existing systems, to streamline operations and data security, or to build an entirely new infrastructure from the ground up that has a blockchain engine running in the background. 

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Blockchain and its impact on the insurance value chain

Calculating and managing risk is the foundation upon which the insurance sector rests, but as digitalization has permeated every aspect of our lives, it has put into question the resilience of the traditional insurance model and its ability to cope with the fast-paced demands of an increasingly interconnected digital world.

For the past decades, the insurance sector has remained largely unchanged, as it still relies on traditional data silos and inefficient technologies, which are unable to facilitate the trust and transparency necessary to support a collaborative and sharing economy. Even with the rise of online insurance services such as brokers, most consumers still use these services over the phone to purchase new policies.

In turn, insurance policies, the contracts that are signed between the insurer and the policyholder that stipulates the terms and conditions between the two parties, are still reliant on the old fashioned, error-prone pen and paper model which requires human supervision. Add to this the fact that the insurance market is composed of a complex web of actors such as consumers, brokers, insurers, and reinsurers as well as the unpredictability of the sector’s main product, risk, it becomes increasingly clear that this multi-trillion-dollar global industry is in dire need of a mechanism that can overhaul the flow of operations, increase transparency, collaboration and enhance customer experience.

Since 2008, blockchain has become a hot topic in the tech community, cementing itself in the vocabulary of savvy entrepreneurs and tech evangelists for its ability to ensure trust, consensus and immutability to the information it stores. In its debut years, blockchain garnered much attention and hype mainly due to its initial use case, cryptocurrency, but similar to an artist that has managed to prove that his first big hit wasn’t a one-hit-wonder, blockchain slowly began to mature and draw the attention of the enterprise sector for its ability to act as a secure storage medium that enables cooperation, information traceability, transparency, secure storage, decentralization and distribution.

As the technology continues to mature, it becomes evident that blockchain will most likely be remembered as a transformative force, capable of reinvigorating antiquated sectors and business models that so far have manifested a higher degree of resistance against the wave of digitalization.

Modex makes blockchain affordable and easy to use

Regardless of the promise to unlock new business momentum, opportunities and streamlined operations, blockchain so far has managed to remain as a somewhat elusive proposition for many business sectors and industries, mainly due to its complex and costly implementation, hidden technological overhead and trade-offs.

As one of the early players in the blockchain space, Modex had ample time to listen to the pulse of the market and analyze how this technology can render its benefits across multiple business sectors without requiring companies or any other types of organizations that wish to access its benefits and features to completely change their infrastructure. To answer this series of questions and to provide an answer to the blockchain conundrum, Modex patented its Blockchain Database (BCDB) technological layer which connects to existing IT infrastructures with minimal changes to add a blockchain layer that grants access to all the benefits this technology offers.

With multiple approaches to implementation, the solution developed by Modex can also be used to build new infrastructures from the ground up, so companies can integrate a blockchain layer into their applications and infrastructures even from the design stage.

The innovation of the BCDB solution stems from the fact that it hides all the complexities of blockchain technology behind the familiarity of a traditional database system, to give companies access to all the benefits offered by a blockchain framework like decentralization, distribution, data traceability, integrity assurance, immutability and transparency, all while retaining the familiarity of working with a classic database system.

Implemented in the insurance sector, the Blockchain Database solution can support and enable policyholders and insurers to track, manage and insure physical assets digitally, unlock new revenue models, lower the risk of fraud and theft of insured property, reinvent asset management, enhance Know Your Customer (KYC) verification and codify business rules by providing a permanent audit trail.

What does blockchain bring to the insurance sector?

At its core, blockchain is a decentralized, consensus-based incorruptible digital ledger of transactions that can be programmed to record not just financial transactions, but virtually any valuable data. Without diving too deep into the technical aspects of blockchain, it is a convergence of multiple technologies and fields such as cryptography, peer-to-peer networks, distributed systems and information security all bundled under a single package that provides resilience and a single source of truth to the information it stores.

Blockchain comes with a unique set of functionalities and features that can help reinvigorate the outdated insurance sector:

distribution – due to its design, blockchain promotes a new working model that operates based on collaboration. After verification, data is distributed to every member of the network, so that every participant has a copy of the information. This design choice renders data silos obsolete, while also removing the need for reconciliation between parties  

transparency – as every member of the network has access to the data, the blockchain records are easily verifiable by every participant  

decentralization – because the data is distributed to every participant of the network, verification and network maintenance does not rely on a single centralized authority. This means that blockchain is immune to the dangers found in single point of failure systems.  

tamper-resistant – once data has been introduced in a blockchain network, its integrity is ensured by the complex inner workings of blockchain. Data cannot be altered without compromising the entire data chain. Any data discrepancies are automatically detected by the system, which allows companies to pinpoint in real-time any tampering attempts.  

traceability and record history – blockchain is an append-only structure. This means that it does not follow the traditional CRUD paradigm of standard database systems. Information is never deleted. When a record suffers a modification, a new entry is created and appended to the system. This means that a complete history of every version of the data is maintained in the system.  

streamlined auditing – as an append-only structure, blockchain provides an indisputable record history of all the data that has been introduced in the network.  

data immutability – by combining cryptography with hashing algorithms, blockchain ensures data immutability. In turn, immutability provides data integrity which drastically simplifies audit processes, while providing proof to stakeholders that the information has not been altered.  

encryption – encryption ensures that network members see only information that is relevant to them and that data is secure, authenticated and verifiable.  

smart contracts – self-executing code that runs on top of the blockchain. Smart contracts trigger when pre-defined criteria are met to execute a set of business logic agreed by the participants involved. Smart contracts can be utilized to automate the execution of automatic contracts or agreements.

Blockchain use cases in the insurance market

Automated index-based insurance

As the name suggests, index-based insurance is a type of insurance linked to an index that can be represented by rainfall, wind speed, earthquake, flight delay time, temperature, crop yield, etc. In this model of insurance, the insurers agree to pay a set sum when the parameters agreed upon with the insured fall under or go over a certain threshold. Index-based insurance aims to address some of the limits of traditional crop insurance in rural areas by reducing settlement and managing costs. Although this type of insurance provides multiple benefits for the insured, acting often as a financial safety net against the capricious weather, it is often difficult to put into practice due to the complexity and costs involved. An infrastructure capable of supporting index-based insurance by gathering accurate data demands considerable expertise and resources.

Blockchain used together with smart Internet of Things (IoT) sensors can provide aid in this area by adding a layer of automation that streamlines the collection and processing of data. A smart contract between an insurer and farmer can be designed to automatically trigger a payment in case of a drought that lasts for more than a month, for example. In this scenario, the payment would trigger automatically without requiring an insurance claim from the insured or for an expert to conduct an on-site examination.

Lower risk of fraud and theft

Under the current paradigm, insurers gather data from the public domain and from private businesses to analyze and come up with patterns for fraudulent activities. The main issue is that the data collected is often inconsistent and unreliable because of the difficulty of sharing sensitive information between different companies.

An example is the directors’ and officers’ liability insurance market, which insures business leaders for actual or alleged errors that may be committed during their duties, like failing to comply with legal provisions, publishing inaccurate financial statements, and failing to pay salaries, or taxes. With its ability to increase cooperation, transparency, enhance data sharing and guarantee a single version of the truth, blockchain can act as an auditable data ecosystem that can be easily verified to detect fraud patterns.

A study conducted by McKinsey underlines that “An estimated 5 to 10 percent of all claims are fraudulent. According to the FBI, this costs US non-health insurers more than USD 40 billion per year.” The same study goes on to point that blockchain can be used as a tamper-proof cross-industry, distributed registry of data that validates authenticity, ownership and provenance of goods as well as the authenticity of documents, prove date and time of policy issuance, confirm subsequent ownership and location changes.

Blockchain is already seeing successful implementation in these areas. Blockverify is using this technology to check for counterfeit products or stolen property, and fraudulent transactions in goods such as pharmaceuticals, electronics and luxury items. A similar use case for blockchain is implemented by Everledger, who uses blockchain to prove the authenticity of precious stones and track and related transactions.

Streamlined reinsurance

Big players from the insurance sector have set up internal or external reinsurance mechanisms that protect the insurer from insolvency when large numbers of claims come in at once, such as during a natural disaster. As risk is the main object of business in the insurance industry, insurance companies rely on reinsurers to offload a portion of the risk they are exposed to and to mitigate unexpected events like landslides, wildfires, hurricanes that may lead to a spike in insurance claims. Simply put, reinsurance is a process through which insurers are insured, acting as somewhat of a financial safety net for the companies that activate in this area. The main issue with reinsurance is that it is a highly convoluted process that involves multiple third parties such as brokers and professional reinsurers who need to collaborate and exchange information in accordance with strict regulatory and fiscal requirements.

Commenting on the impact that blockchain can have on the reinsurance sphere, Emmanuel Dubreuil, Partner, PwC France Advisory Property & Casualty/Reinsurance highlighted the fact that “There would be a whole host of benefits, including a simplified governance structure, auditability, lower costs, greater speed, and confidentiality. In the context of internal reinsurance, blockchain technology offers real potential for reducing transaction costs and improving reliability for insurance groups.”

Blockchain is often referred to as a shared digital ledger that holds valuable information that can be seen by every participant who has access or permission. Because of this design choice, blockchain is an ideal solution for facilitating a better flow of information between insurers and reinsurers. The shared and distributed aspects of blockchain allow for data to be updated in near-real-time between participants. In reinsurance, this would drastically cut down on the time and paperwork needed to reconcile books between institutions for each individual claim.

Cost-effective and secure KYC

Insurance alongside the banking and the public sector are domains where it is mandatory to compile documentation concerning customers and stakeholders, a process referred to as Know Your Customer (KYC). Although KYC has become an integral element in any financial and payment business, it remains a costly and time-consuming process. Another important aspect that needs to be taken into consideration is the fact that insurance and other institutions that rely heavily on KYC verification still rely on siloed, centralized data centres which opens up a wide venue of vulnerabilities that are exploited by cyberattackers who target customers’ personal data.

Statistics show that these types of attacks are on the rise as more and more companies fall victim to attacks engineered to target the data records of their customers: 1 billion accounts hacked in 2013 and another 500 million in 2014; eBay: 145 million hacked in 2014; LinkedIn: 117 million in 2012; JPMorgan: the accounts of 76 million retail customers and 7 million institutional customers hacked in 2014; Facebook: 419 million accounts leaked in 2019.

In a research report, focused on exploring the real-life applications and use cases of blockchain technology, Goldman Sachs arrives at the conclusion “that consistent, coordinated use of blockchain technology in banking could save the industry between USD 3 billion and USD 5 billion a year in KYC and anti-money laundering (AML) costs”.

Blockchain is a decentralized and distributed infrastructure that manages to circumvent the security dangers posed by a single point of failure. By spreading the attack surface across all the members of the network, it becomes almost impossible to shut down a blockchain network. Even if a portion of the network is compromised by an attack, data can be easily reconstructed from the copies held by the other members of the network, and attackers will find it difficult to use any compromised information due to the complex layer of encryption used by blockchain. Insurance companies can use blockchain technology to make KYC processes more efficient by removing the need for personnel focused on KYC operations. Customer experience will also witness a boost because blockchain will simplify the KYC process and considerably shorten its duration while also removing the risk of human error.

Enhanced property and casualty insurance

According to McKinsey, property and casualty insurance accounted for a third of all insurance premiums in 2020, making it one of the most lucrative business ventures in this area. The issue is that property and casualty data is spread across multiple insurance actors which makes it very difficult to reach a consensus between all the parties involved. The process is further complicated by the fact that insurers still rely on manual data entries which makes it difficult for different parties to cooperate and reach a consensus in order to determine who receives what.

For example, when you get into a car accident, insurers need to examine the case and determine who is at fault. But if the drivers have different insurance providers, the process of reconciliation extends due to a lack of a unitary system and process for claims management. Blockchain can act as a boon for the property and casualty insurance sphere because it can provide a more efficient way to manage, track and insure digital assets.

One of the major advantages of blockchain technology in insurance is the fact that it enables separate policyholders and insurers to track and manage physical assets by enabling an immutable audit trail of information. Smart contracts can further streamline this process by codifying business rules and adding a layer of automation to claims processing. By transforming paper-based insurance contracts into programmable code, smart contracts and blockchain technology can automate the calculation of the liabilities in insurance for all the parties involved and automate the whole claims processing operations.

Boston Consulting Group (BCG) explains that blockchain could make the process of settling a motor claim as much as 3 times faster and 5 times less costly. BCG also points out that smart contract technology could save property and casualty insurers more than USD 200 billion a year in operating costs and lower their operating ratio by anywhere from 5 to 13 percentage points.

New models of health insurance – A Modex Blockchain Database use case

In the traditional healthcare ecosystem, patient data resides in siloed data centres that do not communicate with each other, making it difficult for insurance providers to have access to a patient’s full medical record.

Also, over the course of his life, a patient will often change multiple healthcare providers, which will further scatter his medical records, between different clinics and providers. Blockchain technology can be used to create a new type of ecosystem that puts the patient in control of his data, while also preserving privacy and facilitating cooperation between the patient and external organizations and entities such as insurance providers.

Modex has already laid the groundwork for the successful implementation of blockchain technology in healthcare. PatientDataChain is a personal health record system built on the Modex Blockchain Database technology that utilizes a decentralized, blockchain-based architecture to integrate patient medical record systems by gathering and connecting all the stakeholders in the healthcare value chain. The idea behind PatienDataChain is to create a patient-centered model where patients are the true owners of their health records and digital identities.

Due to the permission-based mechanism facilitated by the Modex BCDB layer, patients are able to grant healthcare organizations, physicians, and other medical personnel access to their data for a limited time frame. Based on this functionality, PatientDataChain enables an integrated and interoperable approach, capable of collecting and combining medical data from a diverse pool of sources: EHR (electronic health record) systems, different healthcare providers as well as from a multitude of wearable sensor-based healthcare and fitness devices.

Through the decentralization facilitated by the Modex BCDB component, PatientDataChain introduces an enhanced data sharing and exchange system capable of ensuring an optimal level of privacy and confidentiality combined with secure access to patient health records.

Modex BCDB is a middleware software solution that combines a blockchain engine with a traditional database system to augment the security and data privacy of existing software infrastructures. By adding a blockchain backend to a client’s existing database system, the newly created infrastructure becomes able to demonstrate zero-knowledge proof which means that data can be verified with third parties without the information.

These design features make Modex BCDB an ideal technological foundation for PatientDataChain because it enables the PHR (personal health record) solution to seamlessly integrate with existing EHR systems or other medical databases, including data collected by medical wearable devices and other types of healthcare sensors.

An essential component of the PatientDataChain system is the Patient Health Wallet app which represents the PHR element that unifies all the data related to a patient’s medical records. The Patient Health Wallet represents a single version of the truth that is owned and controlled entirely by the patient. The system is designed to grant patients full control over who can access their medical records. When a patient is scheduled for a medical appointment, he will need to give read access to the physician, to enable her to access his medical records. Write access will also need to be granted to the physician to write a new medical record that will be added to the wallet after the consultation ends.

All the prescriptions written by doctors will be added to the Patient Health Wallet to provide traceability and an accurate representation of the treatment a patient followed. Future system functionalities will allow patients to grant pharmacies access to see the prescription to purchase medication, to search for prescribed drugs in the system and make reservations and receive notifications from the pharmacy when the patient can come and pick up his order.

The core element that facilitates the integration and aggregation of the diverse medical sources is the blockchain component facilitated by the Modex BCDB layer which is composed of an array of distributed nodes. Due to Modex BCDB’s agnostic take on database engines, the nodes that compose the blockchain network can be configured with different database connectivity parameters. Network nodes perform a wide range of functions, ranging from data processing, database connectivity, read/write operations to the blockchain, data synchronization, and permission granting. The business functionality component is provided by the software application client that integrates with the blockchain nodes.

Modex Blockchain Database, an ideal framework for the insurance sector

To overcome all of the challenges associated with blockchain implementation and to help enterprises and businesses tap into the benefits of this technology, Modex has created its trademark Blockchain Database solution, a technological layer that fuses the advantages of blockchain with a database system, a technology that is already deeply ingrained in every business and industry sector, to create a hybrid software product that makes blockchain easy to use in existing systems, to streamline operations and data security, or to build an entirely new infrastructure from the ground up that has a blockchain engine running in the background.

Bundled as an Infrastructure as a Service offering, Modex BCDB is devised to act as a building block that companies can use to build an infrastructure tailored to their specific business requirements. What makes the Modex technological layer stand out is the fact that it incorporates a blockchain component that unlocks a series of powerful features and functionalities without requiring any prior knowledge of blockchain development.

Azure subscribers are now able to access and deploy with the push of a button a blockchain database infrastructure that enhances data security and data management operations. Modex enables companies to customize and deploy from a wizard interface the network infrastructure in a matter of minutes, compared to the weeks and even months required for deployment by other solutions present on the market.

Once a client configures the network according to the business logic of their company, Modex begins to set up the infrastructure and virtual machines according to the network configurations chosen by the client. Once that step is complete, Modex will coordinate the client’s configuration settings while also providing the blockchain and database technological layer.

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Modex facilitates the adoption of blockchain technology in the public sector

Legacy infrastructures in the public sector are unable to cope with the rapid shift towards an increasingly digitalized society. As a result, there are more and more administrative bottlenecks, a general state of dissatisfaction with government performance, as well as a general sense of alienation concerning citizen-government relationships. Blockchain can change all that, and Modex offers the right products and services needed to reshape the public sector with the help of blockchain technology.

From healthcare, digital identity and banking to accounting, supply chain and automotive manufacturing, we’ve all seen the disruptive potential of blockchain technology. The public sector is another area prime for transformation. Thanks to its characteristics and benefits –  integrity & immutability of all transactions, single source of truth with audit trails and traceability, embedded encryption and security, decentralization and real-time backup availability by design – blockchain has the power to transform and enhance the public sector services.

The European Commission has identified several potential uses for blockchain in the public sector. To name just a few: citizen identity management, tax reporting, development fund management, legislative compliance, electronic voting. When it comes to harnessing the power of blockchain, Estonia is amongst the leading country, using this technology to secure data in systems such as: e-health, property & land registry, business registry, succession registry, e-court, surveillance / tracking information system, state gazette and official state announcements.

Challenges in the public sector

Which are the challenges that could be solved with the adoption of blockchain technology? To start with, sensitive data leaks. Securing authentic records that institutions work with is conditioned by the quality of work of employees. Insiders with enough authority may steal or tamper with data and remain undetected. 

Then we have legal & regulatory issues. Government institutions must prevent unauthorized access to sensitive data and create data management policies that comply with legislation such as GDPR or HIPAA. Up next: the citizens’ and investors’ trust is dynamic. Government institutions deal not only with real problems across a nation, but are also accountable for managing them. Governments with a history of lacking transparency have a harder time improving their image and how their effectiveness and regulatory quality are perceived. 

The high cost of efficient data protection represents another challenge. Government institutions need to allocate huge chunks of public budget to cover data integrity and patchwork security inefficient systems. Last, but not least, low interoperability. Data sharing between organizations is impractical: even if all government institutions are already engaged in a digitalization process, they do not all use the same software applications and databases, therefore sharing data securely remains difficult.

Blockchain benefits for the public sector

Now that we’ve seen some of the main challenges, let’s take a closer look at the benefits of adopting blockchain in the public sector. By being scalable and offering secure digitalization, blockchain technology can support digitalization in public agencies and institutions by enabling a decentralized, highly efficient infrastructure that ensures privacy, regulatory compliance, and streamlined data sharing. When it comes to institutional interoperability, blockchain can help governments in building an ecosystem where trust is enforced by technology. Data can be shared among several entities in a secure and transparent way, ensuring real-time back-up and auditability to sensitive data.

Bureaucracy and corruption reduction are also benefits. Institutions can use blockchain to link real-world identities to encrypted, verified digital IDs & documents (e.g. certificates, diplomas, permits). This will streamline KYC checks and compliance with legislation by removing repeated verification processes, errors or fraud attempts. Blockchain can also boost citizen trust and engagement. It can shift the way citizens and institutions trust each other and interact by putting trust and assigning rules in objective coding, instead of in the hands of various entities with personal interests, thus boosting a country’s image and investors’ trust in that particular region.

Modex – spearheading blockchain adoption

From sharing and protecting sensitive data among multiple entities to online voting for causes and projects, Modex can change the way citizens and administrations work together, significantly boosting efficiency and transparency. The projects Modex has developed for government institutions can be deployed in any country and for any system, thanks to their embedded infrastructure agnosticism. How can Modex’ solutions enhance the public sector?

Governmental digitalization

Governmental institutions need a secure environment to store sensitive data and documents and they must have complete control over who can access that data, what they can do with it, and for how long. 

Public institutions that are looking to “renovate” their systems can now opt for a dynamic, easily in-house customizable platform to fit their specific workflows while adding a blockchain layer to their document collection & storing processes & interactions with citizens and other parties alike. A blockchain-based online voting platform enables participatory democracy and transparent budgeting processes as well as trusted remote voting in shareholders’ meetings for large companies.

Tax collection & reporting 

National Agencies for Fiscal Administration could be amongst the largest beneficiaries of blockchain technology given that decentralization, immutability and real-time synchronization of data are essential for streamlining the taxes collection system, with which most citizens interact regularly. 

Decentralizing the databases of these agencies using the blockchain would mean that each access point to the Agency’s database would be synchronized in real-time with all other points in the network, eliminating the risk of erroneous payment requests or account seizures.

Public procurement system

Blockchain can bring more efficiency, transparency and security to the public procurement system. All participants can be sure that the data in the system (award criteria, value of contracts, specifications, etc.) won’t be changed to favour certain winners of tenders, and smart contracts will improve the bidding process in public tenders. These functions will reduce corruption in public procurement, both centrally and locally, and citizens and participants will have more trust in the system.

Land registry

In their current form, many land registry systems are subject to risks because they may contain false information, and data can be vulnerable to security threats due to the fact that it is held in a centralized system, with a single point of failure. Moreover, even if the systems reach a high coverage rate, authorities must ensure that updates will continue and that all new transactions will be recorded and will not take place informally outside the registry.

Pharmaceutical supply chain

Digitalizing the medical supply chain and making data available to all interested parties while guaranteeing its integrity will streamline resource allocation and contribute to a better healthcare system.

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Claudia Iliescu, Customer Support Lead – Modex is at the forefront of the blockchain industry

After working in the banking sector, Claudia made the switch to the tech world, joining Modex. Passionate about dancing, aerobics, cycling and table tennis, she tells us how she sees the tech industry, which challenges she had to overcome in her new job, but also what it takes to become a good Customer Support representative. Enjoy this new #WeAreModex interview.

We begin our chat with Claudia with a few details about her studies. “I studied for an economics degree. I started with an economic high-school, then I went to the Finance, Insurance, Banks and Stock Exchanges University and I’ve finished my studies with a Business Communication Master in English. In addition to that, for one year and a half I’ve attended a second University – The Technical Faculty of Constructions.”

From banking to the tech industry

What do banks and blockchain have in common? In Claudia’s case, a lot. “I started to work in a bank as a receptionist”, recalls our colleague. “A short while after, I got to work in a special branch of the same bank, a branch for expats only. I worked there as a receptionist, and after that I was promoted as a teller, then as an Account Manager for the clients. Combined, in the two banks where I worked I’ve offered Front Office support for more than 10 years, both for companies and individual clients. For me, the period of working in a branch for expats was a special one. During these years I also took part in some banking projects which involved the development and implementation of methods to improve internal processes, as well as the development of new products.”

Claudia joined Modex after being recommended by a customer of the second bank where she was working at that time. “He said I should come to the interview to see what the new job was about. I didn’t want to give up on my workplace; I loved what I was doing at that time and I also loved my team, so it was very hard to be convinced to change the employer and the industry. However, after three months I’ve decided to join Modex, a company specialized in blockchain technology and FinTech related products – domains which hold a lot of promise for the future.”

Adapting to the challenges of a new job

Which are Claudia’s main duties at Modex? “The main task is to respond and to provide immediate resolution to the customers’ inquiries and feedback received from all of Modex’s clients, regardless of the project. I am learning something new everyday and this is exciting. The second important task is to continuously improve and update the internal working procedures of the Customer Support Department and to ensure that the CS team is respecting the flows.”

As expected, moving from banking to the tech industry provided some challenges, too. “The biggest challenge for me was to offer support from behind the screens. I was used to meeting customers every day and I thought that working for the customers without having a direct connection will be very difficult. Also, it was strange to do internal procedures because in the bank all procedures were available at a glance, I just had to follow them. It was something new for me, but I had the support of my boss to understand how to do this.”

The importance of a Customer Support department

“A Customer Support department requires teamwork”, continues Claudia. “It’s not always easy to respond from behind the screens when a customer is upset or asks difficult questions, but we owe it to them to answer honestly and to explain the situation. When we do this, it’s more likely to keep them as our customers. Without doubt, Customer Support represents an essential department for any business, regardless of the industry, a department responsible with the reputation of that brand.” At Modex, the Customer Support team shares with the other departments what’s working well, but also which are the users’ frustrations so that the problems / issues can be quickly ironed out.”

Encouraging creativity: a cool working environment

Which were Claudia’s first impressions about the working environment at Modex? “I liked it right from the start since it was a quieter environment than banking. There, I used to work in the front office, where I was often interrupted, so in order to finish all the tasks I had to often stay after work. What I like the most in the tech industry is that you can be involved in different projects of the company, if you want. I also like the fact that I can see all stages of a product, from beginning to end; I have the chance to see how a product takes shape and how the customers will use it.”

“And there’s another important aspect”, continues Claudia. “My colleagues. I feel that I’m working with a great team and every colleague is ready to offer support when someone needs it. I can feel that every person is working with passion here, striving to be the best at what they do. Also, my colleagues have a good sense of humor. One day a colleague asked me if I could help him with a task and I said: “Yes, happy to help!” His answer was very funny because he told me that he would give me more tasks from then onwards because he wanted to see me happy every day.” 

How to become a good Customer Support executive

“In order to become a good Customer Support representative, then CS Lead, patience and tact are a must! To achieve good results you need a proactive attitude, but you also have to constantly learn something new – be it from your more experienced colleagues or from dedicated courses. Value creation takes time, patience, and perseverance, and requires belief in what you do.”

“Those who want to lead a CS Department should understand that this department is a reflection of a company’s mission, vision and values. You don’t have to be a technology expert to be an effective Customer Support leader. Moreover, don’t be afraid when change comes your way. You should embrace it as it can bring unexpected growth opportunities. Last, but not least, you have to enjoy what you’re doing. You know what they say: “Hire the passion and train the skills”. If I had to take the same professional path, I would do the same things with the same passion and perseverance. So far, I loved every moment of my career, even with the challenges!”

Dancing, aerobics and discovering the world

After a hard day’s work, how do you unwind? “I like sports such as aerobics, cycling, and table tennis. I enjoy travelling all over the word, listening to music and dancing. I like dancing a lot!”

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Modex Head of R&D will attend Microsoft’s Education Reimagined

On September 16th, government representatives and experts in education and technology will reunite for Education Reimagined: The Future of Learning, a virtual workshop organized by Microsoft. 

Representing Modex at the event will be Dan Popescu, Head of the Research & Development department, who will participate in the third panel discussion of the workshop – Technologies of the future and their applicability in Education: skilling and process automation (Blockchain, RPA, Chatbot), alongside Margareta Chesaru (Public Affairs Manager at UiPath) and Andreea Pleșea (Chief Revenue Officer, DRUID). The panel will be moderated by Sergiu Pop, Partner Specialist at Microsoft Romania.

The COVID pandemic has acted as a major disruptor across every sector of society, revealing at the same a series of key areas that are lagging behind and in dire need of a digital overhaul. 

One of these areas and the main topic of discussion at the workshop organized by Microsoft is education and how actors from the technology, government and education fields can join forces to analyze in detail the perspectives on the future of the education system, and the opportunities we have in front of us. 2020 highlighted the fact that without a robust and versatile tech infrastructure student-teacher communication, distance-learning or a hybrid model cannot be implemented effectively which has a negative impact on the learning process that can affect the future of students.

Discussions will focus on:

Which steps to take in moving from disruption to transition and towards reimagining learning

How to enhance ‘digital literacy’ to prepare students for the ‘future of work’

How to best incorporate technologies of the future to create an agile and innovative learning system. 

Modex has a strong track record concerning its initiatives in education, being among the first tech companies to take initiative and push for the introduction of courses and curricula focused on blockchain technology. The experts from Modex strongly believe that blockchain will play an essential role in the future, so it has already begun training the next generation of business specialists fluent in blockchain and capable of implementing this technology in various use cases. So far, Modex has taught the concepts of blockchain to children as young as eight years old and university students.

Education Reimagined: The Future of Learning will be attended by rectors and representatives of renowned universities and colleges in Romania, such as Babeș-Bolyai University, Polytechnic University of Bucharest, University of Bucharest, UMFST Târgu-Mureș, Brukenthal National College from Sibiu and Emanuil Gojdu National College from Oradea. Representatives of the EOS Romania Foundation will also be present, as well as partners of Microsoft Romania who support educational institutions to adapt to the digital age, such as UiPath, Modex, Net Brinel and DRUID.

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Razvan Bogdan, Front-end Lead – The future of the blockchain industry looks bright

He’s a fan of macroeconomics and politics, he likes reading fantasy, Sci-Fi, history or trading books, but he’s also passionate about stocks and the crypto market. The #WeAreModex series of interviews continues with Razvan, who tells us what it takes to be a developer and shares his views on the future of the blockchain industry.

After graduating from the “Ion Ghica” National Economic College, Bacau where he studied economics, management, and marketing, Razvan went to “Vasile Alecsandri” University – Faculty of Sciences, focusing on informatics, mathematics and economy. Before joining our company, Razvan worked as back-end and front-end developer building websites, debugging and bug fixing, then as a web developer at Temenos.

Razvan has been working at Modex since September 2018. “I’ve joined the company after being recommended by a friend, who had already made the transition from his previous job to Modex. I’ve passed the interview and got the job. My work consists of planning and designing web interfaces using various web technologies such as React, React Native or Vue.”

Shaping the future of blockchain

After joining our team, Razvan felt right at home. “What I love the most about Modex is that it is one of the few rising companies which is building a product for blockchain, a new domain which has a lot of promise for the future.” Speaking about the working environment in our company, Razvan adds: “I was delighted to find here a great team, with cool and helpful colleagues, and a good work environment where there’s a right balance between work from home and working in the office.”

Razvan believes that the future of the blockchain industry “looks really bright” and the demand for blockchain developers will continue to grow. “We can see there’s already a trend for blockchain adoption. The possibilities are limitless, just look at all the DeFi projects out there on Ethereum and more will be built on other blockchains as time passes. Using crypto coins as currencies (see the case of El Salvador) or decentralised voting are just two possibilities with potential for the future.”

Passion and dedication to become a developer

We’ve asked Razvan what it takes in order to have a career as a developer. “To be a good developer you need passion and dedication”, says Razvan. “The ability to stay in front of the computer for hours just to study a new concept is very important. Ask for help when you need it and offer help to others in return. While working long hours is great in the short term, your health will deteriorate as time passes, so short breaks and working out are mandatory.”

If he’d turn back the time and start his career all over again, would Razvan do things differently or not? “I would probably do some things differently, but most of what I’ve done would be the same. I love what I do and I am passionate about other things, but no matter what the future holds, I would probably keep programming for the rest of my life. If programming was not an option, I would work as a trader since I’m already doing this to get some side income.”

Sci-Fi, fantasy books and eccentric architecture

As always, we’ve ended our chat with Razvan talking about his hobbies. “I love to visit other countries and especially urban areas. I love eccentric and obscure architecture, even though I don’t understand it fully. I also love trading stocks and the crypto market. I have studied economics and always loved the speculative side of it. I am also a fan of macroeconomics and politics. I like reading fantasy, science fiction, history or trading books. I am on the last page of “Sapiens, A brief History of Humankind” by Yuval Harari and after that I’m planning to read “Blockchain Revolution” by Don and Alex Tapscott.

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Blockchain SaaS vs PaaS vs IaaS

Cloud computing ranks as one of the most important technological landmarks in the past decades because it not only managed to challenge the traditional perception of how companies should organize, manage and deliver their resources and services, it also offered a highly agile and flexible alternative capable of meeting the rapidly changing needs of the business and enterprise sector.

Besides answering the core needs of companies such as infrastructure, storage, security and computational power, cloud service providers have also started to act as vectors that help propagate new and innovative technologies by removing the layer of complexity and costs associated with these types of integrations. One such technology is blockchain, a technology that has garnered much attention due to its potential to consolidate data ownership and security, as well as for its ability to aid a wide pallet of domains like financial services, supply chain, cybersecurity, audit and healthcare. Even so, for many, blockchain still remains that coveted low hanging fruit that still remains out of reach due to its intricate design, highly complex and costly implementation process that acts as a deterrent for most companies.

Modex, one of the earliest players in the blockchain technology space has taken a stance to remedy this issue with its patented technology, the Blockchain Database (BCDB) solution that hides the sophisticated design of blockchain technology behind the familiarity of a database component. 

Through this outside the box approach, Modex helps companies access valuable features like data integrity, immutability, traceability, distribution and decentralization to streamline their flow of operations and to enhance business productivity and security. To make its technological offering more accessible, Modex offers multiple implementations and integration options for its Blockchain Database solution, including an Infrastructure as a Service version of their BCDB product which is available on Microsoft Azure, one of the biggest cloud service providers in the world.

The continuously expanding XaaS family

XaaS or aaS stands for “as a Service”, and it represents the delivery models used by cloud providers for their services. The three main models that have been around since cloud computing’s early days are Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). In the scope of this article, we will discuss the three main delivery models for cloud computing services, highlighting how blockchain can be propagated to enterprises, businesses and consumers through these three distinct channels.

But blockchain isn’t the only technology that is compatible with the “as a Service” delivery model of cloud providers. As new and innovative technology hits the market, it seems that it is only a matter of time until more exotic offerings whose names can become veritable tongue twisters hit the market. Some examples are Database as a Service (DBaaS), Disaster Recovery as a Service (DRaaS), Artificial Intelligence as a Service (AIaaS), Internet of Things as a Service (IoTaaS), Analytics as a Service (AnaaS), Data as a Service (DaaS), etc.

Blockchain delivered as Software as a Service

Software as a Service (SaaS) often referred to as “on-demand software”, is a form of cloud computing that allows users to connect to and utilize cloud-based applications over the internet. Operating under a pay as you use model, SaaS offerings are an ideal solution for large scale enterprises as well as SMEs. A major advantage of the SaaS model is that it reduces users’ upfront cost by mitigates the need to purchase the software as well as a powerful on-prem infrastructure capable of running it, because all of the underlying infrastructure, middleware, software and application data are located on the service provider’s centre. However, users need to keep in mind that the performance of SaaS services is dictated by internet connection speeds, as such fast network hardware is mandatory.

Blockchain as a Service (BaaS) is based on the Software as a Service model, and it involves the creation, management and maintenance of cloud-based networks for companies that design, develop and build blockchain applications. The emergence of the BaaS model has signalled an important step in the evolution of blockchain technology because it marks a departure from the initial use case of blockchain, cryptocurrency, marking the expansion of the technology in other areas.

At its core, BaaS enables beneficiaries to leverage cloud services to build, host and operate blockchain-based applications without needing to worry about the technical complexities, costs and operational overhead involved in creating, configuring, maintaining and operating a blockchain.

BaaS advantages:

cost-effective: vendors provide all the necessary hardware components, servers, middleware, updates and storage

effective maintenance: the service provider is responsible for maintaining the blockchain infrastructure which gives beneficiaries ample time to focus on their application and develop new features

high availability: the application is available anytime and anywhere as long as there is an internet connection

quick deployment times

BaaS Limitations:

vendor lock-in: although BaaS service providers make it easy to bring all your data and join the services, it may be difficult and costly from a technical standpoint to leave or change vendors

limited integration capabilities: companies may require multiple integrations with on-prem applications and services. BaaS providers may offer limited support in this area, forcing beneficiaries to develop in house workarounds

low levels of customization: BaaS offerings usually offer limited functionalities, features and integrations, acting more as a series of templates from which beneficiaries can choose. 

lack of transparency and control: BaaS entails that beneficiaries give up a degree of control over their data to the service provider. Furthermore, clients have limited visibility into backend processes and how their data is handled

questionable security and performance: because the service provider controls, maintains and manages the BaaS service, the levels of security and performance are under the jurisdiction of the vendor, leaving few aspects under the direct control of the beneficiary

Blockchain as Platform as Service (BPaaS)

Platform as a Service (PaaS) primarily targets developers and programmers, enabling them to create, run and manage their own applications without needing to worry about building and maintaining complex hardware infrastructures. All of the elements necessary for developing and maintaining a software application such as hardware installation, server maintenance, infrastructure updates are all covered by the cloud provider, leaving developers ample time to focus on their code and new features for their application.

In recent years, BPaaS services have gained a significant foothold among leading tech players because it enables their customers to concentrate their efforts towards enhancing and expanding their business functionalities and strategies, relying on their PaaS providers to manage and maintain the blockchain framework. As interest in blockchain technology has spiked over the years, many established cloud service providers have expanded their offerings to include BPaaS services. The main advantage of the BPaaS model is that it makes blockchain adoption easier as it removes the integration and installation pressures from the beneficiary to the service provider. 

Acording to Oracle’s scholarships, BPaaS are an ideal solution for developers who wish to develop blockchain-based applications giving them the opportunity to build software without managing operating systems, software updates, storage, or infrastructure. BPaaS is an attractive proposition for many companies and businesses who wish to take their first steps into the blockchain space because it removes responsibilities like system management, maintenance and updates, giving them the chance to explore and experiment with blockchain and its features.

BPaaS advantages:

time efficiency: companies can test and deploy new blockchain products in a short amount of time

cost-efficiency: system maintenance, upgrades and replacement of faulty hardware components is done by the service providers

more freedom to enhance your application: since beneficiaries don’t need to handle the infrastructure, they have more time to focus on improving their apps

easy access to blockchain technology: blockchain is known for its complex implementation and demand for highly skilled developers. With BPaaS, clients can easily tap into the benefits of this technology without needing to worry about intricate and costly development times

scalability: as the workload increases, beneficiaries can pay the service provider to unlock additional resources. Conversely, when the workload decreases, beneficiaries can easily scale down to pay for as much computational power as they need

BPaaS limitations:

vendor lock-in: if the service providers haven’t provisioned migration policies, beneficiaries may find it difficult and costly to move to another BPaaS provider

low transparency: as the vendor is the one doing all the heavy lifting required to maintain the infrastructure, clients can end up knowing little about what happens in their backend

security concerns: using BPaaS services means handing control over some of your data to the service provider. Paired together with the low levels of transparency on how the data is actually handled raises a series of security concerns

legacy systems will find it difficult to connect to a BPaaS service without undergoing extensive customization

Blockchain as IaaS

IaaS is a cloud service that grants access to a fully provisioned, on-demand computing infrastructure that can be managed over the internet. Under the IaaS model, companies access all the benefits of on-prem computing resources without needing to worry about all the overhead involved with deploying, maintaining and operating an in-house infrastructure. As one of the most flexible cloud services, IaaS promotes easy scalability and resource management. Because IaaS operates under a pay as you use model, consumers rent resources such as computation, storage and other hardware components, utilizing them on a need basis, meaning that when a spike in performance is required, companies can pay for more resources. 

On the same note, when the operations become less resource-intensive, companies can easily scale down to save costs. Beneficiaries have full control of the infrastructure via an API or dashboard. The higher degree of control means that users need to manage multiple aspects such as the operating system, applications, data, middlewares and runtime environments. Meanwhile, the cloud provider manages the servers, the virtualization, storage and network.

Blockchain delivered as an IaaS helps answer the blockchain-related needs of every company, business or organization, regardless of their sphere of activity and size. By contracting the services of a cloud provider, companies can unlock a seemingly inexhaustible pool of computing, network, and storage resources to create an ideal infrastructure for their business. This model comes into stark contrast with the traditional on-prem frameworks where businesses were required to purchase and maintain the equipment, as well as the space for hosting and conditions needed to operate the equipment in optimal parameters. 

Businesses have a higher degree of mobility as they no longer need to buy servers, storage, software and other hardware components. Furthermore, the lack of an on-prem infrastructure means that companies are no longer required to hire an in-house IT staff to manage, update and upgrade the equipment and software. It’s a fact that every company experiences fluctuations in their workload. The issue with on-prem infrastructures is that companies need to anticipate a potential peak of workload and build a system that is capable of maintaining operations at that level. 

The problem is that a decrease in the workload will mean that some systems may remain idle. On the other hand, there is also the possibility that the potential workload has been miscalculated, or the company is witnessing an exponential growth that far surpasses the capability of the system which may create numerous friction points for end-users and even a temporary suspension of services as a result of a workload overload.

Blockchain IaaS advantages:

cost-effective technology – in the Blockchain IaaS model businesses are no longer required to invest in expensive equipment. Resources are used on-demand and have a fixed cost. As such it becomes relatively predictable to calculate and respect an infrastructure budget.

innovation-friendly – due to its modular approach and flexibility, Blockchain IaaS beneficiaries have the option to test new products and ideas. In a bid to attract more customers, cloud providers tend to be among the first to adopt new equipment, services and technologies such as artificial intelligence and machine learning, to expand their offering to clients. This way businesses get hold of new technologies at a faster rate, compared to building an on-prem infrastructure.

promotes efficiency – resources are readily available. Companies can easily expand their infrastructure to accurately reflect their growth. Conversely, the risk of wasting resources by overbuilding is diminished.

enhanced productivity – the cloud provider is the one responsible for setting up and maintaining the underlying hardware components. Without this burden, the development team can focus on enhancing the company’s product and features, redirecting resources and manpower towards more strategic initiatives.

scalability – one of the most attractive aspects of IaaS is its scalability potential. Depending on their needs, businesses can swiftly scale up or down to meet workload demand. 

it enables faster time to market – the high levels of flexibility and scalability translate to streamlined development life cycles. 

Blockchain IaaS limitations:

vendor lock-in: as with the BaaS and BPaaS models, in the absence of migration policies and tools, Blockchain IaaS beneficiaries may find it difficult to change their service provider

security: while Blockchain IaaS offers a greater degree of control over the applications, data, middleware and operating system, this does not mean that security threats are absent. In this type of offering, security threats usually target data communication between the host infrastructure and the virtual machines

legacy systems, although compatible with most Blockchain IaaS offerings, may not be capable of benefiting from the full set of functionalities and features offered by newer technology, without undergoing heavy customization

compared to BaaS and BPaaS offerings, beneficiaries in Blockchain IaaS have a higher degree of responsibility concerning the maintenance, security and continuity of the infrastructure which requires a higher degree of knowledge and proficiency in blockchain development.

Modex BCDB, a customizable blockchain IaaS offering

To overcome all of the challenges associated with blockchain implementation and to help enterprises and businesses tap into the benefits of this technology, Modex has created its trademark Blockchain Database solution, a technological layer that fuses the advantages of blockchain with a database system, a technology that is already deeply ingrained in every business and industry sector, to create a hybrid software product that makes blockchain easy to use in existing systems, to streamline operations and data security, or to build an entirely new infrastructure from the ground up that has a blockchain engine running in the background.

Modex BCDB is a middleware software solution that combines the functionality and familiarity of traditional database systems with blockchain, a technology designed to deliver a slew of disruptive features such as data integrity, immutability, traceability, distribution and decentralization. Bundled as an Infrastructure as a Service offering, Modex BCDB is devised to act as a building block that companies can use to build an infrastructure tailored to their specific business requirements. What makes the Modex technological layer stand out is the fact that it incorporates a blockchain component that unlocks a series of powerful features and functionalities without requiring any prior knowledge of blockchain development.

Azure subscribers are now able to access and deploy with the push of a button a blockchain database infrastructure that enhances data security and data management operations. Modex enables companies to customize and deploy from a wizard interface the network infrastructure in a matter of days, compared to the weeks and even months required for deployment by other solutions present on the market. 

Once a client configures the network according to the business logic of their company, Modex begins to set up the infrastructure and virtual machines according to the network configurations chosen by the client. Once that step is complete, Modex will coordinate the client’s configuration settings while also providing the blockchain and database technological layer.

Benefits of BCDB backed IaaS

Devised as a solution that can easily complement existing infrastructures and systems, Modex has utilized its technological layer that combines traditional database systems with a blockchain layer to augment and enhance some key-value areas where IaaS offerings are still lacking:

Security – there is a common misconception that cloud service providers are solely responsible for securing their clients’ data. The fact of the matter is that data security is a joint responsibility between cloud providers and the beneficiary. By utilizing complex encryption mechanisms, hashing algorithms and through the distributed nature of its blockchain component, Modex BCDB adds a much-needed layer of security to cloud infrastructures.

Removing integration friction points – IaaS offers the ideal building blocks for creating new IT infrastructures from the ground up. But transitioning an existing system to the cloud is still a difficult task, especially if we take into consideration legacy systems. Designed as a middleware, hybrid solution, Modex BCDB can seamlessly connect to existing systems through a set of custom connectors. Once connected to an application, Modex BCDB grants access to all of the inherent advantages of blockchain technology without affecting the user’s interaction with the original system.

Customizable encryption – public cloud users may have limited control and ability to customize. Modex BCDB comes with an inbuilt encryption mechanism that can be set to function at the field level or at the column level.

Data availability – even the largest cloud service provider experiences downtime. By distributing data across an intricate web of computer nodes, the BCDB solution unlocks new levels of availability for companies’ most valuable asset, their data.

Enhanced data visibility and transparency – the Modex technological layer unlocks data traceability through which data owners can determine who accessed their information.

Privacy and data ownership – a major downside of public cloud infrastructures is that data owners are required to cede a portion of control over their data to the cloud provider. Through the clever use of hashing, Modex BCDB creates a hash digest of the information stored in the database and moves it into the blockchain to act as proof of ownership.

BaaS, BPaaS and Blockchain IaaS help companies and businesses leverage blockchain technology to build and deploy applications that can add real value to their end-users. With a wide array of benefits and features, the three models offer companies the ability to choose and implement blockchain how is best suited for their business needs. In the long run, if BaaS, BPaaS and Blockchain IaaS offerings continue to evolve and mature, blockchain adoption will remain on an ascending trend.