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Meetup with Thomas Hardjono

Oct 15, 202414 min read

Held 2024-09-02 / Published 2024-09-10 Thomas Hardjono

  • Thomas Hardjono is the CTO of Connection Science and Engineering. He leads technical projects and initiatives around identity, security and data privacy, and engages industry partners and sponsors on these fronts.

Tech Transfer is important. - social implementation is often deployed by the private sector - Deployed by private-sector business, not academia

  • If I tell someone in Industry, “I wrote three papers,” they don’t see the value in it.
    • How to implement an Algorithm written by a Ph.
      • Internal R&D support needed

Trade off

  • Benefit to society
  • Business model

Alex “Sandy” Pentland

DFFT(Data Free Flow with Trust)

  • Data & AI-driven Society
  • Trusted Data Network
  • Privacy First

Benefit to share data

  • Example: Health

Aadhaar

networked interoperable open tech (UN 2023)

DPI(Digital Public Infrastructure) in practice Example 1: Internet Establishment

Example 2: India’s Aadhaar and UPI

  • 12 digits - biometric
  • Before Aadhaar
    • 60% had no bank account
    • 30% had no birth certificate
    • 60% have no bank account and 30% do not even have [birth certificate
  • UPI(Unified Payment Interface)

46% of all global payment transaction

  • Casually used for small payments of 2$ or so. 300 million monthly active user in India (Nov 2022)

India has soft power, soft influence by exporting to African countries.

  • Soft power - Wikipedia

    • In politics (and particularly in international politics), soft power is the ability to co-opt rather than coerce (in contrast with hard power). It involves shaping the preferences of others through appeal and attraction. Soft power is non-coercive, using culture, political values, and foreign policies to enact change. In 2012, Joseph Nye of Harvard University explained that with soft power, “the best propaganda is not propaganda”, further explaining that during the Information Age, “credibility is the scarcest resource”.

    • In politics (especially international politics), soft power (as opposed to hard power) is the ability to incorporate rather than impose. It involves shaping the preferences of others through attraction and fascination. Soft power is non-coercive and uses culture, political values, and foreign policy to effect change; in 2012, Joseph Nye of Harvard University explained that in soft power, “the best propaganda is not propaganda” and further explained that in the information age, “credibility is the scarcest resource is the most scarce resource]” in the information age.

    • Nye popularised the term in his 1990 book, Bound to Lead: The Changing Nature of American Power.

    • Nye popularized the term in his 1990 book Bound to Lead: The Changing Nature of American Power.

  • Expanding to Vietnam?
  • CitizenStack (Apr 2024) Proposal to UN
    • I was there representing MIT.

Creating Wealth in Emerging Countries

  • Created by making digital IDs free and making payments low cost and very accessible

All government Approach ⇔ Private Tech Approach →DPI Approach Same as 4 quadrant in Acemoglu.

  • The Narrow Corridor. Government running everything is cumbersome, too heavy, bureaucratic Like the Internet, a middle way where the government provides funding and standards. First the government funds and creates standards
  • Government funding such as ARPA Somewhere in the transition period of 3 or 4 years, transfer to the private sector and let them build the operations and other services.

It appears to be the type of long-term investment that, if made, is expected to produce long-term value, but that the initial activities are not profitable and therefore not the first step to be taken if left to the private sector.nishio.icon

  • I am concerned about the decision making process.
  • How did you justify the investment?

Japan has an excellent digital ID system and payment system

  • Why doesn’t Japan sell this system to Asian countries?
  • The value of a common standard payment system
  • This is not a story confined to Japan.
  • Asian countries (Indonesia, Malaysia, etc.) are growth markets
    • Japan is investing in Malaysia’s semiconductor industry.
    • Similarly, why not sell my number system to Malaysia?

new AI economy rides on the data economy

  • The new AI economy is built on a data economy.
  • You need digitization (DX) as a prerequisite, and you can sell digitization mechanisms to countries that don’t have it.

South Australia Data Exchange South Australia Aboriginal blood

  • Aboriginal blood sample collection from the 1950s?
  • 40 million blood samples from South Australian citizens and Aboriginal people? Why pharmaceutical companies are interested: different DNA structure from European descent Health Data Exchange
  • Cross-country data exchange A consortium of government, pharmaceutical companies, and MIT’s Big Data Living Lab?
  • Takeda, GSK, Pfizer? Confidential calculations using SGX 7 years from start of study to FDA submission
  • Mismatch between the drug development process, which takes nine years, and short-term payments

Big Data Living Lab

digital democracy Digital Democracy is a Key Issue in Brazil, Cuba, and Indonesia

  • Confusion in Indonesia’s Elections Conflicts among technology companies
  • Conflict between Elon Musk and LinkedIn founder Brazil banned Twitter Digital Democracy Audrey Tang
  • Decentralized Social Network Project
  • Project Liberty Decentralized Social Networks are a kind ofNew Village の創造だと思っているnishio.icon

Moshe(?) is now in India developing wallets, data wallets for citizens in India where they can put medical reports on the device. Apple will produce phones in India, and will include a data wallet in the low-cost version(?).

work with a competitor. Give it for free Benefit is 10 years after “influence” Role of MIT: Training intermediaries and students who are neutral and can say this is what should be done.

Provenance of Data & AI for Supply Data Sources and AI-based Supply Chain Against child labor Xinjiang in China

Gartner Curve - hype curve AI Agent Disinformation Keely Earnhardt? Two years of Twitter data There is coordinated activity by about 80 bots. Russians used to post on social media. China’s PLA (People’s Liberation Army, Chinese People’s Liberation Army) also uses this system. In other words, Russia and China were collaborating on a net work. Her paper won the best paper award at a top-tier disinformation conference → I’ll look it up later.

How can AI help develop new services and new revenues? Many companies question =Transformational use cases that will bring in revenue in 2-3 years The core of the problem is quality data.

Companies have internal data, but little GPU high cost I think a very efficient AI training strategy will emerge that does not require a GPU. This is Capex.

  • How to get ROI How it help me to make new revenue

Isn’t it private sector pressure if the government does Payment in IndiaStack? Can the government do it? In India, it was necessary, 68% did not have a bank account. OpenID Connect

Banks, poverty and financial instability in India, sustainability in the EU, governments need a brocade to wave their flags What is the brocade for DPI in the US? Americans don’t believe in country.

  • SSN (Social Security Number) is important. Private sector creates Confidential Computing Platform If what you get out of it is worth it, the private sector will pay for it. The bottom layer of IndiaStack is digital ID The second is UPI settlement. Working on the third data. For US, Japan, need API for remote computation of data
  • IDs and settlements are stable.

one possible combination

  • the citizen keeps control of the data
  • remote computation using confidential computing infrastructure is paid for by the private sector Transportation
  • I want to see the travel route.
  • Suica is logging transfers and purchases.nishio.icon

Data is gold. Data is king.

  • Everyone doesn’t want to share data.
  • How do you allow collaboration to make this happen?
  • This one.協力のための技術という位置付けができそうnishio.icon

Sanofi

  • I want to test a new drug in Mexico.
  • I need to find a subject.
  • We want to sell to Mexico and Latin America.
  • Abu Dhabi Health Authority The problem of pharmaceutical companies testing drugs in Africa, but some drugs don’t work because the market for the drugs and their DNA are different.
  • I’d like to do more experiments by selecting subjects according to detailed characteristics rather than “people”.

My number card eKYC Digital identity only, no money

  • Facebook doesn’t make money on ID either, it makes money on Ad. Japan is bringing many foreign workers, Filipino foreign health workers to work in Japan
  • They need Digital Identity.
  • Need a way to send money back to their home countries. Japan to Philippines = US to Mexico
  • Remittances from the U.S. to Mexico are $500-600 billion/year Western Union has high remittance fees You’re not getting immediate money. You’re getting soft influence and potential for growth in the Philippines. Remittance Issues
  • [Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT)

GDPR is creating export barriers to the EU.

  • States and governments are preventing data leakage.
  • Difficult for individuals to put out even if they wanted to. Legal Framework for Data Sharing
  • Legal Framework VISA Mastercard Cross border Legal Framework
  • Sharing insight, not data Tech-savvy lawyer needed
  • Need an attorney who understands data, technology, and techno-regulation
    • It has nothing to do with traditional legal agreements.
  • On the other hand, maybe we need a Law-savvy Engineer too.nishio.icon - Doyu Noboru like

MasterCard

  • 450 engineers to connect banks with banks.
  • payment rails
  • Same technology, same ID system, same encryption algorithm, SHA-512

Who should fund digital public infrastructure?

  • Who should fund DPI
    • Gov? Citizen? What the Philippines Lacks is Engineering Expertise IndiaStack Aadhaar is a government built
  • Financial assistance to software developers
  • IDs don’t pay.
  • 1.2 billion people UPI is built by Bank
  • Government mandated.
  • Indian government did not want banks to run ID system Aadhaar
  • Banks deal with money, not identity or personal data. The government has made that clear. Data is done by private sector, like Health.
  • India’s lack of portable data is a problem.
  • No medical records, bring paper
    • Japan is still doing things like the Medication Record Book…nishio.icon
      • I hope it will be linked to my number card so that I can easily pass it on.

Data is people own Not insurance companies or hospitals. Belongs to citizens and requires consent for access The key is “consent management.”

Japan already has ID and Payment. The question is whether it can be exported to other countries.

Can the Data portion be financial data? India is still poor

  • There are 300 million middle class people who have credit cards, more than the population of Japan. UPI currently has no benefits, Bank is forced to gov. Increasing value as society grows. Children of village women become college students and work in Bangalore and New Delhi
  • Bank accout required and become a customer.

If you look up UPI on Google, there’s a PDF of the API specs.

Neither Communism nor Sillicon Valley Capitalist Third wave, India way

pseudonymous: A pseudonymous

  • Verifiable ID
  • Reputation system
    • Post bad thing → kick / reveal = punishment
    • Mechanisms for kicking and disclosing real names when defamatory statements are made.
      • Recognition that Japan has also revised its laws to make it easier to pass disclosure requests for slander on Twitter.nishio.icon
  • Encourage positive discussion

Can’t it be run by the national or local government?

Right to speech

  • Should be guaranteed regardless of the operator.
  • Roads should be walkable for everyone.

There may be a possibility of national ownership in the early stage, like JR (Japanese National Railways).

  • Because it is a SOCIAL GOOD

WeChat is Social Network + Payment.

  • LINE Payはそれに近かったnishio.icon
    • PayPay has gone mainstream…
    • I’ve heard that there have been cases of people lying about PayPay being the only way to collect money at a drinking party, which is one of the opportunities to spread the word, as an incentive not to give away the means of communication, but I wonder what’s really going on.
    • If this is correct, then the combination of Social Network and Payment has had the effect of decreasing the value of Payment.

economic growth

Spec for DSN Spec for OSS Means for Gov to facilitate

50% Gov, 50% Citizen or not. So are JR tickets. Passengers bought tickets, even on national railways.

CBDC over Social Media India Stack doesn’t do it?

  • High risk / low priority in India
  • There are more pressing issues such as Worker health

White paper promote idea to gov Talk to politician Policymakers are not engineers.

  • He may be an economist.
  • They could be studying government policy or government management.
  • They are not technical people.
  • It must be communicated in a way that is easy to understand. Jun Murai
  • Father of the Japanese Internet
  • Voice in the Japanese Government
  • DPI Conference Held?

AI applications in Tokyo elections.

  • Show working example
  • That is a great example, I am sharing it with people!
    • Look at this. This was done in Tokyo.”
  • Low cost and big impact.
  • A major influence on Japanese politicians.
  • Importance of technical demonstrations to politicians
  • Need to show this in a way that is easily understood by non-technical politicians.

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