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BLOCKCHAIN 101
Demystifying the disruption beyond cryptocurrencies.
HELLO!
We are here because we love to interact with
blockheads.
“"What the internet did for
communications, Blockchain will
do for trusted transactions.“
-IBM Chief Executive Ginny Rometty.
Blockchain: Disruptive Innovation
Distributed digital ledger containing immutable,
cryptographically secure transactions added only by
peer consensus and governed with auto-triggering
smart contracts, eliminating the need of third party
intermediaries.
Simply put, blockchain is a
Digitally protected, de-centralised, distributed ledger.
Ledgers are everywhere
Any time we need a consensus about facts, facts
underpinning the modern economy.
Why?
◉ Ledgers confirm ownership
◉ Ledgers confirm identity
◉ Ledgers confirm status
◉ Ledgers confirm authority
Understanding Networks
Myths Busted
With every new
technology, there
is hype and there
is reality.
Myth 1. There is a Singular Blockchain
Myth 2. Blockchain is All About Money
Myth 3. Blockchain and Bitcoin are the Same Thing
Myth 4. Blockchain is the Solution to Fraud
Myth 5. Blockchains are Immutable
Myth 6. Blockchain is Cost Effective and Cheap
Myth 7. Only Big Companies Can Use Blockchains
Variations of
Blockchains
Applications &
Key Players
Understanding the
Application of
Blockchain
technology in
Logistics & Supply
chain Management
Six Ways
Blockchain
would
disrupt
Insurance
Sector
Understanding the
Application of
Blockchain
technology in
securities
transactions and
Asset Servicing
The Blockchain
Technology Framework
The Timelines
Use -Cases
Multiple parties use the data , want to update the data
Transactions are interdependent on each other’s transactions
CUMBERSOME TO TRACK THE progress of the requested transactions
Risk and severity of fraudulent transactions is very high
Intermediaries are adding cost delays complexity
Mandatory requirement for verification of transactions
Manual document processing and reconciling the information
Two transaction parties only trust a third party intermediary
Assets need to be backed up in real time
How to
Identify the
Use - Case
Benefits Drawn by implementation of Blockchain Technology
NASDAQ LINQ
Trade recording reduced from 3
days to 10 mins andsettlement risk
exposure resdused by 99 %.
Kotak Mahindra
Cross border remittance initially
taking about 2 days reduced to
near real time
IBM Supplychain finace
Supply chain financing solution
can be reduced from 12 – 16 days
to less than 2 days .
BNP Paribas Securities
Is planning to adopt blockchain for
$747bn assets.
Barklays- Wave
Trade finance transactions
brought the signoff time from 10
daysa to 4 hours. Reduced cost
added trnsparency and improved
customer experiance
Northern Trust Bank
Estimates saving of 6bn annually
in streamlining and clearing and
settlement cash securities.
Approach to Build Your Blockchain Empire
Discover
•Develop key understanding of the technology, Identify which problems need to be addressed
•Asset gaps, re-engineering processes, Re-Allign stakeholders – workshops explaining intent,approach and benefits
Analyze
•Feasibility analysis- Operational effectiveness
•Risk Assesment : Impact to existing system
•Regulatory compliance assessment
Define
•Design in house
•Start with non-permissioned public ledgers, Go private/permissioned ledgers or consortium
•Define distributed network, roles, smart contractsSpeed, stability, scale, data limits, privacy for eyes
Implement
•Collaborate- design inoperatability and standards, Patner with fintech and build the stack
•Sandbox tests Pocs for defined processes,Test for transaction stability security scalability and BCP
Go Live
•Rollout plan identify stable geographies
•Gap assessment immediate fixes
•Fine tune if no cost , turn around time etc gains
THANKS!
Any questions?
You can find us at
Jithin Babu
Sakshi Manthanwar
Jargons.. Just for fun
◉ HODL – “HODL” was originally a typo for HOLD
◉ TO THE MOON - a crypto’s upward momentum
◉ ADDY - cryptocurrency public address (or key)
◉ ATH – All time high
◉ WHALE – a trader with a fat account
◉ REKT – a misspelling of “wrecked”
◉ FUD - Fear, uncertainty, and doubt

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Blockchain 101

  • 1. BLOCKCHAIN 101 Demystifying the disruption beyond cryptocurrencies.
  • 2. HELLO! We are here because we love to interact with blockheads.
  • 3. “"What the internet did for communications, Blockchain will do for trusted transactions.“ -IBM Chief Executive Ginny Rometty.
  • 4. Blockchain: Disruptive Innovation Distributed digital ledger containing immutable, cryptographically secure transactions added only by peer consensus and governed with auto-triggering smart contracts, eliminating the need of third party intermediaries. Simply put, blockchain is a Digitally protected, de-centralised, distributed ledger.
  • 5. Ledgers are everywhere Any time we need a consensus about facts, facts underpinning the modern economy. Why? ◉ Ledgers confirm ownership ◉ Ledgers confirm identity ◉ Ledgers confirm status ◉ Ledgers confirm authority
  • 6.
  • 7.
  • 8.
  • 10.
  • 11. Myths Busted With every new technology, there is hype and there is reality. Myth 1. There is a Singular Blockchain Myth 2. Blockchain is All About Money Myth 3. Blockchain and Bitcoin are the Same Thing Myth 4. Blockchain is the Solution to Fraud Myth 5. Blockchains are Immutable Myth 6. Blockchain is Cost Effective and Cheap Myth 7. Only Big Companies Can Use Blockchains
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Understanding the Application of Blockchain technology in Logistics & Supply chain Management
  • 25. Understanding the Application of Blockchain technology in securities transactions and Asset Servicing
  • 27.
  • 29.
  • 30.
  • 31.
  • 33. Multiple parties use the data , want to update the data Transactions are interdependent on each other’s transactions CUMBERSOME TO TRACK THE progress of the requested transactions Risk and severity of fraudulent transactions is very high Intermediaries are adding cost delays complexity Mandatory requirement for verification of transactions Manual document processing and reconciling the information Two transaction parties only trust a third party intermediary Assets need to be backed up in real time How to Identify the Use - Case
  • 34.
  • 35.
  • 36. Benefits Drawn by implementation of Blockchain Technology NASDAQ LINQ Trade recording reduced from 3 days to 10 mins andsettlement risk exposure resdused by 99 %. Kotak Mahindra Cross border remittance initially taking about 2 days reduced to near real time IBM Supplychain finace Supply chain financing solution can be reduced from 12 – 16 days to less than 2 days . BNP Paribas Securities Is planning to adopt blockchain for $747bn assets. Barklays- Wave Trade finance transactions brought the signoff time from 10 daysa to 4 hours. Reduced cost added trnsparency and improved customer experiance Northern Trust Bank Estimates saving of 6bn annually in streamlining and clearing and settlement cash securities.
  • 37.
  • 38.
  • 39. Approach to Build Your Blockchain Empire Discover •Develop key understanding of the technology, Identify which problems need to be addressed •Asset gaps, re-engineering processes, Re-Allign stakeholders – workshops explaining intent,approach and benefits Analyze •Feasibility analysis- Operational effectiveness •Risk Assesment : Impact to existing system •Regulatory compliance assessment Define •Design in house •Start with non-permissioned public ledgers, Go private/permissioned ledgers or consortium •Define distributed network, roles, smart contractsSpeed, stability, scale, data limits, privacy for eyes Implement •Collaborate- design inoperatability and standards, Patner with fintech and build the stack •Sandbox tests Pocs for defined processes,Test for transaction stability security scalability and BCP Go Live •Rollout plan identify stable geographies •Gap assessment immediate fixes •Fine tune if no cost , turn around time etc gains
  • 40.
  • 41. THANKS! Any questions? You can find us at Jithin Babu Sakshi Manthanwar
  • 42. Jargons.. Just for fun ◉ HODL – “HODL” was originally a typo for HOLD ◉ TO THE MOON - a crypto’s upward momentum ◉ ADDY - cryptocurrency public address (or key) ◉ ATH – All time high ◉ WHALE – a trader with a fat account ◉ REKT – a misspelling of “wrecked” ◉ FUD - Fear, uncertainty, and doubt