Sergio Piorno Güemes

What is self-sovereign identity? Imagine that you could have a digital identity that was yours alone, that did not depend on any company, government, or institution, and that you could use it to access all kinds of online services, from borrowing money to voting in elections. Imagine being able to create, store, manage and share your personal data, such as your name, your age, your nationality, your studies, your health certificates, etc., freely, without having to give more information than necessary, nor having to rely on intermediaries who can use it without your consent. Imagine if you could have a way of identifying yourself and signing documents that was as secure and truthful as your ID card or your handwritten signature, but that was digital and that you could use it from any device, at any time and place. Does this sound like utopia? Well, it is not. This is called self-sovereign identity (SSI), and it is a revolution for digital trust. Self-sovereign identity is a concept that proposes that each person is the owner of his or her own digital identity and can manage it autonomously, without depending on intermediaries or centralized authorities. To make this possible, tools called verifiable credentials are used, which are digital documents containing information about a person's identity, issued, and signed by a trusted entity, such as a government, university, bank, company, etc. These verifiable credentials are stored in a digital wallet, which is an application that allows the person to access their credentials and share them with whomever they want, whenever they want and only what they want, respecting their privacy and security. The technology that makes SSI and verifiable credentials possible is Blockchain, a decentralized network that records and verifies transactions immutably, transparently and without intermediaries. What are verifiable credentials? Verifiable credentials are the foundation of self-sovereign identity, as they are the digital documents that allow you to prove who you are and what you can do. Think of all the credentials you have in your life: your ID card, your passport, your driver's license, your academic degrees, your work certificates, your medical prescriptions, and so on. All these credentials help you identify yourself, access services, exercise your rights, apply for benefits, etc. But they also have some disadvantages: they can get lost, deteriorate, expire, be forged, etc. When you use them in the digital world, you have to trust that the entity that asks for them will treat them properly, and that it will not use your data for other purposes or share them with third parties without your permission. You often have to give more information than you really need, for example, when you register on a website and they ask for your date of birth, your address, your phone number, etc., when they just want to verify your identity. Verifiable credentials solve these problems, since they are digital documents that contain information about a person's identity, issued and signed by a trusted entity, such as a government, university, bank, company, etc. These verifiable credentials are stored in a digital wallet, which is an application that allows the person to access their credentials and share them with whomever they want, whenever they want and only what they want, respecting their privacy and security. If you want to rent a car, for instance, you can share your verifiable driver's license credential, without having to show your ID or credit card. Or if you want to apply for a job, you can share your verifiable college degree credential, without having to send a paper copy or PDF. Or if you want to vote in an election, you can share your verifiable citizenship card, without having to go to a polling station or use a voting machine. Verifiable credentials have many advantages over traditional credentials, both for individuals and organizations. These advantages are: Reduce the friction and costs of identification and verification processes by eliminating the need for intermediaries, paperwork, duplication and waiting times. Increase the trust and security of digital transactions by ensuring the authenticity, integrity and traceability of verifiable credentials and electronic signatures. Empower individuals to own their digital identity and manage it autonomously, without relying on third parties or relinquishing their privacy. They facilitate access to digital services by allowing people to use their verifiable credentials to identify themselves and access different platforms and applications, without the need to create multiple accounts or passwords. Promote digital inclusion and participation by giving people the ability to obtain and share verifiable credentials that prove their identity, skills, rights, and achievements, regardless of their background, situation or context. What is the role of Blockchain in SSI and verifiable credentials? Blockchain is the technology that makes SSI and verifiable credentials possible, as it is a decentralized network that records and verifies transactions immutably, transparently and without intermediaries. It works like a digital ledger, where each transaction is recorded as a block, which is linked to the previous block, forming a chain. Each block has a unique code, called a hash, which identifies it and protects it from tampering. Each block is also copied and distributed to several nodes, which are computers connected to the network that validate and agree on the transactions, without the need for a central authority. Blockchain guarantees that the information recorded is truthful, secure and accessible to all participants. Blockchain is the ideal support for SSI and verifiable credentials, as it allows the creation, storage, control and sharing of a person's digital attributes, without relying on intermediaries or centralized authorities. It also allows for the generation and verification of electronic signatures of verifiable credentials, using unique identifiers, called DIDs (Decentralized Identifiers), which are associated with each person and each entity issuing or verifying credentials. DIDs function as a kind of address or public key, which is used to sign and encrypt verifiable credentials, and which is stored in Blockchain, along with the information needed to verify the signature. In this way, Blockchain guarantees that the verifiable credentials are authentic, integral and traceable, and that they can only be accessed by authorized persons or entities. How does ISS relate to the eIDAS2 regulation? The eIDAS2 regulation is a European Union regulation that aims to provide electronic identification and trust services in the digital single market. The eIDAS2 regulation recognizes the legal validity of electronic signatures, electronic seals, electronic time stamps, certified electronic delivery services and website authentication certificates. The eIDAS2 regulation recognizes the legal validity of electronic signatures, electronic seals, electronic timestamps, certified electronic delivery services, and website authentication certificates. eIDAS2 also establishes a framework for interoperability of the electronic identification systems that enable citizens and businesses to access public and private services safely and easily online. SSI and verifiable credentials are aligned with the objectives and principles of the eIDAS2 regulation, as they offer a form of electronic identification that respects the sovereignty, privacy, and security of individuals, and can be recognized and accepted by entities providing trusted services in the digital domain. In addition, SSI and verifiable credentials are based on open standards and interoperable technologies, such as Blockchain, which facilitate integration and cooperation between the different players in the digital identity ecosystem. SSI and verifiable credentials can therefore be considered as an evolution and improvement of current electronic identification systems, which are better adapted to the needs and expectations of individuals and organizations in the digital world. How does Fundación Telefónica use verifiable credentials? Fundación Telefónica, as an entity committed to education and innovation, has decided to use verifiable credentials as a way to recognize and value the learning and development of people. Fundación Telefónica has thereby announced that it is going to accredit the nanodegrees it awards together with the CEOE on blockchain, and also issue them as verifiable credentials thanks to TrustOS. These are free online training programs to digitally empower professionals from different sectors. The use of TrustOS makes it possible to guarantee the veracity and authenticity of the information, as well as the digital and secure issuance of the titles, which can be verified with a QR code. Titles will also be issued as verifiable credentials, in a format compatible with the future European digital identity ecosystem, allowing citizens to identify themselves to public institutions or digital service providers with their approved digital wallet. Nanodegrees are a form of flexible, personalized learning, tailored to market demands, based on the acquisition of specific knowledge and skills, which can be combined and complement each other. The nanogrades are taught through digital platforms, which offer quality content, active methodologies, personalized tutoring, and continuous assessment. These certifications are aimed at people who want to improve their employability, update their skills, or change their professional career, as well as companies that want to train and retain their talents. They cover different areas of knowledge, such as programming, Cyber Security, Artificial Intelligence, digital marketing, etc. Fundación Telefónica, by issuing nanodegrees as verifiable credentials, offers people a way of accrediting their training that has the following advantages: It is digital, so it can be stored, managed, and shared from a digital wallet, without the need for physical documents or attachments. It is verifiable, so you can check its authenticity, integrity, and traceability, using Blockchain, without the need for intermediaries or bureaucratic processes. It is selective, so you can choose what information you want to share, with whom and when, respecting the privacy and consent of the individual. It is recognized, so it can be used to access other training, employment or social offers that accept verifiable credentials as a form of identification and validation. It is inclusive, so it can be obtained and shared by anyone, regardless of their origin, situation, or context, favoring equal opportunities and digital participation. Accreditation with blockchain makes Fundación Telefónica one of the pioneering institutions in the European Union when it comes to issuing degrees in this format, favoring the employability and international mobility of professionals who complete the nanodegrees. Fundación Telefónica makes it easier for people to demonstrate their training and skills easily, securely, and truthfully, and to access new job and social opportunities in the digital world by issuing nanodegrees as verifiable credentials. In this way, Fundación Telefónica places itself as an innovative, socially responsible entity committed to education and digital transformation. Blockchain AI of Things What was traced first in Blockchain, the chicken or the egg? October 27, 2022

The digitalisation of the financial ecosystem has accelerated in recent years thanks to the widespread adoption of the internet and its consequent development. This, together with the rise of mobile devices, allowed people to manage their finances from anywhere and access financial services and products online, where the average user is able to manage them through the bank and without intermediaries, something inconceivable until then. Blockchain technology has also recently played an important role in the digitisation of finance, offering new opportunities for secure, transparent, and decentralised financial transactions, as well as the rise of DeFi (decentralised finance), opening up a new range of financial products and services outside the banking system. Latest revolution driven by Blockchain and decentralised networks is the tokenisation of assets. Tokens, NFTs, Cryptocurrencies… As we have discussed previously in this blog, tokens are a digital representation of a physical asset through a code that is usually stored on the blockchain. The simile can be like a casino chip, where that plastic coin represents a real monetary value. The best-known uses of tokens are cryptocurrencies and NFTs. When we talk about NFTs, we mean non-fungible tokens, i.e., they are unique and cannot be replicated or replaced by an equal. This is not the case with cryptocurrencies, where we can replace one Bitcoin with another, and both will have the same value and utility. The logic of the tokens is programmed in a Smart Contract, where all the attributes that define it and the actions it can perform, such as the transfer of ownership, are specified. IA & Data TrustOS, the Swiss Army Knife of Blockchain Networks May 26, 2022 Security tokens Just as NFTs are one type of token, there is another that is the basis of asset tokenisation, security tokens. Before defining what they are, we must understand that a security is a financial instrument that represents ownership of an underlying asset, such as a company share, a bond or real estate, and is governed by the laws of the capital markets of the country or area where it is issued and traded. An example of a traditional financial market where securities are traded is a stock exchange such as the Madrid Stock Exchange or the Nasdaq. On the other hand, if we transfer the same concept of security to the decentralised world, A security token is the representation of a security but created using Blockchain. This allows the same benefits as traditional securities such as ownership and voting rights, dividends, etc., while increasing the efficiency, transparency, security, and liquidity of these assets. An example of an exchange that allows transactions with these securities is Bitfinex. Blockchain Hyperledger Besu: blockchain technology on the rise in the business environment September 8, 2022 But what guarantees do I have if I own one of these tokens against fraud such as the recent FTX or Terra fraud? These types of securities are subject to regulatory requirements established by the financial regulator where they are issued. In Europe, they must comply with MiFIDII regulations and are issued through an investment vehicle with an ISIN, the international securities identification number, so they offer the same guarantees as traditional securities. Given that "tokenising assets" can be a somewhat abstract concept, let's look at some examples of assets that can be digitally represented by a token and converted into a security. Telefónica Tech has already carried out a case study in which we tokenised the network of antennas and base stations managed by Atrebo, not only increasing the traceability of each of these infrastructures, but also increasing the efficiency of the management and transparency of the network. These tokens could be converted into securities so that investors can become owners of these antennas. However, the truth is that these types of installations are very expensive, and the owners are usually large companies or institutional and professional investors, but with tokenisation we can enable the fractionalisation of these assets and make them multi-property, increasing the liquidity of the underlying asset but offering the same rights. A security token can be purchased by an individual investor without the need for an intermediary such as a bank or broker. Other examples can be: Any kind of infrastructure or real estate Art Commodities Financial instruments (equities, derivatives, debt...) Patents and intellectual property rights. BLOCKCHAIN What was traced first in Blockchain, the chicken or the egg? October 27, 2022 How does asset tokenisation work and why it can revolutionise the financial industry and access to capital markets Asset tokenisation has many benefits beyond those mentioned above and the inherent advantages of a security. One of the biggest use cases is the launch of a Security Token Offering (STO). An STO is a public offering of security tokens similar to an Initial Public Offering (IPO) and an Initial Coin Offering (ICO), but with a number of fundamental differences that make it much more attractive to certain companies. An ICO is not a security and is therefore not governed by the same regulations, which greatly limits investor protection against fraud. The valuation of these cryptocurrencies is very volatile and unstable, as they tend to be highly speculative, which implies large losses for investors. According to one study, 81% of ICOs failed in 2018. On the other hand, an IPO involves a complex and costly process both in terms of time and resources. Companies that wish to go public must disclose large amounts of information about their operations and business, and it is usually a process that is carried out by companies with a certain maturity and a stable business as a method of raising more capital, so for small companies and start-ups it is often unfeasible. They need to seek funding through angel or seed investors, and it usually involves giving a large stake in the company to these professional investors, which makes the cost of accessing capital very high but at the same time necessary to continue to grow and keep the company afloat. However, with an STO, you have the legal certainty of owning a security but at the same time it is a much more accessible process for small and medium sized companies. In addition, it has a number of added advantages such as access to this type of offerings by private investors, making access to private investment much Cyber Security AI of Things Digital Identity, Privacy and Blockchain —Can They All Be In The Same Equation? November 8, 2022 Advantages for companies There are also numerous advantages from the point of view of the company wishing to launch these tokens, as the asset to be tokenised can be very varied. Companies that need to raise capital to reduce investment in CAPEX and have recurring income, such as a SaaS, can issue a token that represents a share in the company with the right to a fraction of future profits for a specific time as a dividend, and by being registered in Blockchain with the Smart Contract, these operations can be automated, which are also much more traceable and transparent. It can also be a mechanism for issuing corporate debt or simply represent a real estate asset such as a windmill and fractionalise its ownership among different individual investors who receive a series of rents from the activity of their windmill. One of the advantages of issuing debt or bonds on the Blockchain is that they are established immediately, whereas with traditional methods it takes 2 days from issuance. We are facing a new revolution in the way we understand asset management and trading. More and more institutions are launching these initiatives, such as Goldman Sachs with its DAP platform together with the EIB (European Investment Bank) which issued bonds worth 100 million euros for 2 years and were established on a private blockchain for the Venus project. This new way of understanding digital assets could revolutionise both the methods of investment and capital acquisition by allowing private crowdfunding, but giving rights to investors, and the management, purchase and sale of real estate and infrastructures. It will also be important to see how the regulatory environment changes with the entry into force of the MiCA (Markets in Crypto-Assets) through which the EU intends to establish a legal framework for the control of this type of asset.