A technical intro to WizKey DeFiNe

This presentation provides an overall introduction to WizKey technical discussion, outlining the architecture and some design and technology choices that express unique benefits of our platform

Transcript

1. A technical introduction to WizKey DeFiNe
2. INTRO TO WIZKEY WizKey is a cloud SaaS vendor and Amazon Web Services ISV, providing trustless solutions for the structured finance market. The solutions offered are deployed on WizKey DeFiNe and are designed to facilitate and enhance processes linked to the management and transfer of receivables, maximizing the value of the assets. WizKey DeFiNe is built on three technological stacks: AWS Cloud Artificial Intelligence Blockchain (Ethereum Public Blockchain)
3. A CLOUD-NATIVE SAAS Amazon Web Services provides scalability and resilience in a cost-effective way, supporting WizKey DeFiNe in every off-chain process, providing scalability, realiability and automated configuration. Elasticity allows to store documents in a cost-effective, secure and reliable way Infrastructure as Code allows data rooms being shifted between different nodes with no additional effort Multi-region deployment makes WizKey globally available
4. ARTIFICIAL INTELLIGENCE Leveraging AWS technologies such as SageMaker, to deploy custom assets specific machine learning models to Classify and extract data from PDF documents Rate assets using scoring and classification neural networks to predict security completeness and value Analyze assets history and predict their future performance Provide automated portfolio analysis and suggestion to find the best assets composition, selecting the right mix
5. PRIVACY AND COMPLIANCE AI models are deployed in cloud and at the edge on the WizKey Node, which is within the domain boundaries of the customer. Sensitive and private data is never pulled outside WizKey Node, thus ensuring regulatory compliance by design. OFF-CHAIN AI operates on qualified metadata ON-CHAIN AI operates on anonymized data
6. WHY ETHEREUM BLOCKCHAIN? Unlike most of our competitors, after a deep analysis of challenges and benefits, WizKey leverages the Ethereum Public Blockchain to carry out Securitization Ethereum Public Blockchain provides: Security: no one could reach consensus to change blockchain history Openness: onboarding process cannot be constrained nor avoided, making it censorship-resistant Versatile: regulatory systems can be modelled as smart contracts, supporting any different market constraint Interoperability: many proprietary blockchains use ethereum as single common layer of integration
7. NOTARIZATION The process of Notarization assures the integrity and consistency of documents once written on the blockchain. Any modification of the documents can be detected, and the timestamp displays when a document first began to exist on the blockchain. Tampering resistance, non-repudiation, and traceability features are offered out of the box by the blockchain.
8. DOCUMENT HASHING A document hash can be built from document unique characteristics and a non invertible mathematical function with low collision probability. Due to blockchain limited storage capabilities, saving just document hash is the preferred behaviour, to ensure information correctness and privacy. Loan Agreement 2019 dfdec888b72151965 a34b4b59031290a
9. DOCUMENT HASHING WizKey Client computes the hash value for each document, then records it on the blockchain, with no intermediary, which means: Proof-of-existence cannot be compromised by an untrusted intermediary service Receipt contains hashes and can be stored safely but it is persisted forever Document content cannot be reversed from an hash, thus ensuring privacy
10. SMART CONTRACTS Our choice to rely on the Ethereum Public Blockchain is justified by the strategical need to use flexible, use-case specific and Turing-complete development language for smart contracts to carry out automated operations. Smart contracts are deployed to Ethereum blockchain and can implement a variety of operations: Asset tokenization with ERC721 non-fungible tokens Asset transfer through an escrow process to ensure correct settlement Asset issuance and collateral management
11. SMART CONTRACTS Securitization settlement is a two-phase operation t h a t c a n o c c u r a s y n c h ro n o u s l y. T h i s p r o c e s s , k n o w n a s escrow, is enforced by a set of smart contracts that lock tokens and f u l f i l t r a n s f e r s a f t e r external approval occurs WizKey emits ERC-721 t o k e n s , m a p p e d t o specific assets with a u n i q u e s i g n a t u r e process, thus a token directly represents an a s s e t a n d t o k e n transfers are exactly a securitizatin operation Tokenization Escrow Issuance Tokens can be locked into a smart contract, triggering the emission o f n e w t o k e n s r e p r e s e n t i n g a collateral (i.e. bond issuance). Contracts can be deployed also by third parties
12. TOKENIZING ASSETS The tokenization of assets improves the liquidity and tradability, secondary market token emission liquidity and leads to more efficient clearing and settlement. This means Usually illiquid asset classes become tradable Assets are linked to qualifying asset documents Assets transfers are immediate and preserve value
13. EVOLVING DATA ROOM MARKET TRADITIONAL DATA ROOMS WIZKEY DEFINE DATA ROOM Per operation - Single use Due diligence to be performed every time Slows down secondary market Limited by storage capacity Not transferred with settlement Expensive, since storage and settlement come with additional costs Permanent and linked to every a single credit Audit trail results are preserved on the blockchain Asset evaluation can be automated through AI Boost trading on secondary market Token references its documents Storage is provided in cloud Automatically transferred when escrow is finalized Cost effective (no additional costs, settlement is a cheap blockchain operation)
14. ENFORCING LEGAL DOCUMENTS WizKey DeFiNe is in partnership with Notartel, making customers able to ensure that qualifying PDFs of an asset have legal value and are legally binding. Every time a user uploads a document on the platform, the digital copy uploaded in PDF is signed by Notartel, ensuring the originality and validity of the documents. Token is not only a representation of the asset, but the asset itself
15. WIZKEY ARCHITECTURE
16. WIZKEY CLIENT (WKC) WizKey Client (WKC) is a standalone app on customer users devices that joins on-chain and off-chain operations. Enforcing trust between untrusted parties, notarizationa and token emission is requested directly from WKC to the blockchain, then metadata is shared to corresponding WizKey Node. This means the owner of the client signs every operation, with no service in the middle. WKC also uploads documents to WizKey Node and creates data rooms and portfolios, exchanging data with a node to which it is autorized by the maintainer. Client onboarding is performed through WizKey Node
17. WIZKEY NODE (WKN) WizKey Node (WKN) is a docker image deployable on a containerized infrastructure both on premise and on a dedicated cloud account, detached from WizKey Cloud. WKN stores documents, thus enforcing privacy (since sensitive content never leaves customer domain). WKN offers also document metadata creation and storage, as well as AI services directly deployed at the edge, to analyze documents. No data is shared with WizKey, an any time. WKN are also designed to provide audits on blockchain receipts, thus embedding an Ethereum node. This operation does not store data, but verifies content notarized by clients, ensuring documents and transactions integrity.
18. WIZKEY SERVICES (WKS) WizKey Services (WKS) are a single tenant cloud hosted services released by WizKey on AWS that implement routing and login services. WKS do not handle sensitive assets data but authenticate users thus ensuring know your customer (KYC) across different data rooms and provide WKN address book when needed to fulfil settlement operations.
19. Five steps to WizKey DeFiNe
20. 1 LAUNCH A WIZKEY NODE A WizKey Node is deployed for any new customer. It can be released on premise within customer data center or in cloud, through a WizKey partner, with a dedicated AWS account. Setting up a new WKN means customer data rooms can be built connecting to its node services. Since WKN is not managed by WizKey (thus not requiring trust in our platform) the customer or the partner must provide disaster recovery and business continuity policies.
21. 2 CREATE A DATA ROOM A customer installs as many WKC as needed and invites users to create data rooms. Each WKC share data room access according to its permission scheme. A client can connect to different nodes, when invited. Data rooms are created and documents uploaded, as well as assets metadata which could also be extracted by WKN itself through AI.
22. 3 TOKENIZE CREDITS When a new document is handled by WKC, its hash is computed and sent to Ethereum for notarization. After the process is completed, receipts are stored with metadata on WKN thus ensuring durability. After a new receipt is received, WKN performs auditing operations on the blockchain to ensure data correctness. When documents are stored, an ERC-721 token representing an asset can be required by WKC to Ethereum and saved into its wallet.
23. 4 ENTER A NEW MARKET Once a data room is sutable for securitization, other clients are invited to sign an NDA and discuss about securities. Every interaction is notarized on the blockchain, to ensure trust of the process. Inviting new clients to browse a data room is as simple as sending an e-mail with a link
24. 5 TRANSFER THE ASSETS The entire negotiation process is notarized, to guarantee the highest pre-contractual protection level to all parties involved. 
 The token, which is immediately transferable to third parties, gives certainty concerning the ownership of the assets. 
 The token transfer is triggered once the payment is received, fulfilling the escrow smart contract. Additional escrow contracts, built by third parties could be deployed and used within WizKey as well, since Ethereum blockchain is open and freely accessible. Obviously each client must agree on the contract they choose to use.
25. The WizKey Ecosystem
26. info@wizkey.io +39 02 36531544 www.wizkey.io