The information technology of the future

1. The Information Technology of the
Future
Presented by:
Bikash Jaiswal(711)
Sandeep Gupta(713)

2. In the beginning …
• There was the database
• and then there was the network
• ‣ PUT THEM TOGETHER ‣ Gives us
first “cloud computing”
• ‣ … and now “blockchain”
technology

3. What is a “block”?
• A block consists of a set of database
transactions placed in a “block”
• The blocks are shared in a distributed and
decentralised manner i.e. each “node” has a
complete set of blocks

4. What is a chain?
• Each block is linked to the previous block via a
hash function. This means you cannot change
a block without breaking the chain.
• Each block is cryptographically signed as well.

5. What is the Blockchain?
• A blockchain is simply database but …:
• ‣ Distributed across the network (Internet) - everyone has a copy ‣ Auto-
synced - every copy is the same almost instantly
• ‣ No transaction can be deleted
• ‣ Commonly open and public - everyone (authorised) can add
• A global network of computers uses blockchaintechnology to jointly
manage the database that records Bitcoin transactions. That is, Bitcoin is
managed by its network, and not any one central authority.

6. Bitcoin and Blockchain

7. features
• A transaction database
• To inspire us to build this world
• A decentralized public ledger
• An information technology
• An asset administration tool
• Increased Capacity
• Better Security
• Faster Settlement
• A registry, inventory, listing of all the world’s stuff

8. Benefits
• Trustless exchange:Two parties are able to make an exchange
without the oversight or intermediation of a third party,
strongly reducing or even eliminating counterparty risk.
• Empowered users
Users are in control of all their information and transactions.
• High quality data
Blockchain data is complete, consistent, timely, accurate, and
widely available.
• Durability, reliability, and longevity
Due to the decentralized networks, blockchain does not have a
central point of failure
• Faster transactions
• Lower transaction costs

9. challenges
• Nascent technology
Resolving challenges such as transaction speed, the
verification process, and data limits will be crucial in making
blockchain widely applicable.
• Uncertain regulatory status: Because modern currencies
have always been created and regulated by national
governments
• Large energy consumption:The Bitcoin blockchain
network’s miners are attempting 450 thousand trillion
solutions per second in efforts to validate transactions, using
substantial amounts of computer power.
• Control, security, and privacy
• Cultural adoption
Blockchain represents a complete shift to a decentralized
network which requires the buy-in of its users and operators.

10. How does blockchain work?
• eWallet app: holds keys, not money
– Using PKI (public key infrastructure):
electronic wallet software issues a public-
private key pair (public address is a 32-
character alphanumeric code)
• Scan public address (QR Code) & submit
transaction
• Private key confirms access and funds availability,
transaction validated and posted to blockchain

11. What can a blockchain be used for?
The most known application for blockchain technology is
to handle financial transactions, where Bitcoin is the most
renowned example.
Who owns a blockchain?
The source code has been published on the internet, allowing
anyone to create a blockchain. In the case of so called
“private blockchains”, ownership lies with the company that
creates and maintains them. A private blockchain is generally
used in order to chieve a particular business goal. Apart from
the centralized ownership, the same basic mechanics still
apply.

12. “What the internet did for communications,
Blockchain will do for trusted transactions.”
— Ginni Rometty

13. GLOBAY PAYMENT
• A payment refers to the process of transferring value from one
individual or organization to another in exchange for goods, services
or the fulfillment of a legal obligation. Global payments are an
expansion of that concept, in which payments can be completed
across geographical borders through multiple fiat currencies.
• Key Ecosystem Stakeholder:

14. Key Market Participants:
• The focus of this use case is on low value−high volume payments
from an individual/business to an individual via banks or money
transfer operators. These transfers are more commonly known as
remittances.

15. Current-state process depiction:
Pain Points:
Inefficient Onboarding-Information about the sender and beneficiary is
collected via manual and repetitive business processes
Vulnerable KYC-limited control exists over the veracity of information
and supporting documentation, with various maturity levels across
institutions
Cost & Delay- Payments are costly and time consuming depending on
route
Error Prone- Information is validated per bank/transaction, resulting in
high rejection rate
Liquidity Requirement- : Banks must hold funds in nostro accounts,
resulting in opportunity and hedging costs

16. Future-state process depiction:
Benefits:
Seamless KYC: leveraging the digital profile stored on DLT establishes trust
and authenticates the sender.
Reduced settlement time: cross-border payments can be completed in real
time.
Cost savings: With fewer participants, the improved cost structure can
generate value.
Automated compliance: The regulator will have on-demand access to the
complete transaction history over the ledger.
FX liquidity capabilities: Through smart contracts, foreign exchange can be
sourced from participants willing to facilitate the conversion of fiat
currencies

17. Area to be covered:

18. Way Ahead:
Some 50 big-name banks have announced blockchain initiatives. Investors have
poured more than $1 billion in the past year into start-ups formed to exploit the
blockchain for a wide range of businesses. Tech giants such as Microsoft, IBM
and Google all have blockchain projects underway. Many of these companies are
attracted by the potential to use the blockchain to address the privacy and
security problems that continue to plague Internet commerce.

19. CONCLUSION
• Blockchain – the technology behind the bitcoin digital
currency – is a decentralized public ledger of transactions that
no one person or company owns or controls.
• The challenges that bitcoin poses to law enforcement and
international currency controls have been widely discussed.
• It allows people to bypass traditional intermediaries in their
dealings with each other, thereby lowering or even eliminating
transaction costs.
• Legal Policy?
• Intermediaries and Interdependencies?