Blockchain is the hot & most important new age technology that is going to disrupt the decentralization among the enterprises for information exchange, transaction and storing the information in most secure and safe way. Decentralized technology is going to change the way businesses are done in the future. Its the future of technology. Do read some research insights from Artivatic.ai team for the Blockchain industry.

1. 1 | P a g e

2. 2 | P a g e
Contents
Preface ..........................................................................................................................................................3
What is Blockchain?......................................................................................................................................3
Potential impact of Blockchain .....................................................................................................................4
How does it work? ........................................................................................................................................5
Blockchain and KYC.......................................................................................................................................6
Digital Identity and Digital Signatures...........................................................................................................7
10 most valuable cryptocurrencies...............................................................................................................9
Reasons for internal resistance to blockchain............................................................................................11
What would Blockchain adoption look like?...............................................................................................12
Technology roadmap ..................................................................................................................................12
Benefits of Blockchain.................................................................................................................................13
Barriers to implementation ........................................................................................................................14
Blockchain future........................................................................................................................................15
Triple entry book accounting......................................................................................................................16
Use of blockchain in IP................................................................................................................................16
Closing Notes ..............................................................................................................................................17

3. 3 | P a g e
Preface
“Blockchain Technology Market Growing at 61.5% CAGR to
2021”
The global blockchain technology market is projected to grow
from USD 210.2 million in 2016 to USD 2,312.5 million by 2021, at
compound annual growth rate of 61.5%.
“Asia-Pacific (APAC) is expected to have the highest
Growth rate during the forecast period”
APAC includes emerging economies, such as India, China, Australia,
and Singapore which are showing growth in crypto currency and
Blockchain start-ups. This is mainly due to the digitization of small,
medium and larger enterprises in the region. This region is expected to
witness the highest growth rate in the Blockchain market.
What is Blockchain?
Blockchain is a decentralized ledger, or a list, of all transactions across a
peer-to-peer
network. This is the technology underlying Bitcoin and other
cryptocurrencies, and it has the potential to disrupt a wide variety of
business processes.
Blockchain technology is the underpinning of a radical rethinking of
how we pay for things—as well as how we verify who owns what and
who has the right to buy and sell it.
In the same way that internet has changed the way we communicate,
blockchain revolutionizes how we exchange values between multiple
untrusted parties. Blockchain decentralizes trust, enabling value flow
without intermediaries
Source: www.prnewswire.com PwCFintech

4. 4 | P a g e
Potential impact of Blockchain
- Authenticating identity and value
Verifiable and robust identity, cryptographically secured.
- Moving value payments, transfer and purchases
Transfer of value in very large and very small increments without
any intermediary will dramatically reduce the cost and speed up
the payment.
- Storing value-financial assets such as currencies and
commodities.
Payment mechanism combined with a reliable, safe store of value
reduces the need for typical financial services, saving and current
accounts will become obsolete.
- Lending value-credit, mortgages, bonds
Debt can be issued, traded and settled on the Blockchain,
increasing efficiency and improving systemic risk; consumers can
use reputation to access loan from peers.
- Exchanging value-speculating, Hedging and Arbitraging
New models for P2P financing and recording of corporates actions
such as dividends paid automatically through smart contracts.
- Funding and investing in Assets
New models for P2P financing and recording of corporates actions
such as dividends paid automatically through smart contracts.
- Insuring value and managing risk
Reputational system enable insurers to estimate actuarial risk
better, creating decentralized markets for insurance.
- Accounting for value-new corporate governance
Distributed ledger will make audit and financial reporting real-
time. Responsive and transparent, improving the ability of
regulators to scrutinize corporate financial actions.
Source: Accenture

5. 5 | P a g e
How does it work?
Source: www.weforum.org
A wants to send money to
B
The transaction is
presented online as a block
The block is broadcasted to
every party in the network
Those in network approve
the transaction by stating
the transaction is valid
The block is then added to
the chain which provides an
indelible and transparent
record of transactions
The money moves from A
to B

6. 6 | P a g e
Blockchain and KYC
A blockchain-based registry could remove the duplication of efforts in
carrying out KYC checks. The ledger could also enable encrypted
updates to client details to be distributed to all banks in near real-time.
The KYC ledger could also provide a historical record of all documents
shared and compliance activities undertaken for each client. This will
form the evidence to be provided to the regulators. SWIFT launched the
SWIFT KYC Registry in December 2014, and more than 2000 banks
have already enrolled with it

7. 7 | P a g e
Source: www.finextra.com
Digital Identity and Digital Signatures
Another aspect related to KYC is Digital Identity and Digital Signatures.
Once a corporate has had their documentation verified once, a digital
identity could be created for that customer – this is essentially their
digital passport for transacting in financial services and would be
appended to every transaction they undertake, effectively ‘signing’ the
transactions for them.
This digital identity could potentially be used to access relevant
information about the customer such as addresses, account details,
director’s details, PEPs etc. which could be used during AML /
transaction monitoring, thus increasing the accuracy of the monitoring
and reducing the likelihood for false positives. Taking this further, banks
that positively identify a fraudulent transaction could distribute details of

8. 8 | P a g e
that transaction globally to all connected banks, thus preventing the
opportunity for further fraud. However, once again, it must be noted that
there are digital signature and digital identification solutions (not based
on blockchain) in the market today and used for signing contracts, for
tax filings and insurance sales. These are “digital signature” solutions
and not a holistic digital identity which may contain a lot more
information.
Source: www.finextra.com
Banks will quintuple spending on blockchain by 2019
Banks to invest $400 million by 2019 in blockchain technology.
Capital market to spend $400 million on blockchain. Banks and other
capital markets organizations are spending increasing amounts on
researching the use of blockchain, the payment technology behind
virtual currency ‘bitcoin’.
$30
$75
$130
$210
$315
$400
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2014 2015 2016 2017 2018 2019
Investment ( in million)
Investment ( in million)

9. 9 | P a g e
Banks are not giving away much information about their blockchain
research. This is not because the banks deem this a trade secret; the
simple and harsh reality is that the banks themselves are not clear on
how this technology will evolve and ultimately be adopted.
- Aite group
Source: www.out-law.com , www.qz.com , www.theatlas.com
10 most valuable cryptocurrencies
Source: www.theatlas.com/charts/rkUCeNcBZ
$33.00
$15.20
$5.60
$2.10
$1.30
$1.00
$0.90
$0.60
$0.50
$0.30
$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00
Bitcoin
Ethereum
Ripple
Litecoin
Ethereum Classic
Dash
NEM
IOTA
Monero
EOS
Market value (in billion)
Market value

10. 10 | P a g e
On 22 June 2017, Bitcoin Magazine reports that Antshares was
embarking on a new rebranding strategy as part of its effort to lead
blockchain development in China and around the world.
On August 8, NEO Blockchain, China’s first original public chain
project, has announced the completion of rebranding efforts from its
former Antshares identity. Furthermore, NEO has upgraded its
blockchain nodes, technical documents, social media, official site and
exchange name worldwide, representing the transition from Antshares
1.0 to the NEO smart contract system 2.0.
NEO now is the top 10 cryptocurrency in terms of market value.
Compared with Ethereum, NEO claims its smart contracts perform
better in terms of determinism, high scalability and compatibility. The
developers of smart contracts can use JAVA, C/C# and GO to write
smart contracts without the need to learn new languages like Solidity,
making it attractive to the global developer community.
July of 2017, NEO and Elastos made a cooperative agreement to
“explore the technological values and applications of blockchains in the
new internet operating systems to further the development of a Smart
Economy.” Elastos plans to become an “OS for the blockchain,” while
NEO will enable developers to create blockchain applications quickly
and easily.
Source: bitcoinmagazine.com

11. 11 | P a g e
Reasons for internal resistance to blockchain
Source: www.theatlas.com
90
7
3
0 10 20 30 40 50 60 70 80 90 100
Yes
Uncertain
No
Are you currently exploring the use of
blockchain/distribute (response from the bank)
Are you currently exploring the use of blockchain/distribute
63
56
31
25
25
19
19
0 10 20 30 40 50 60 70
Regulatory
Compliance
Security
Lack of internal buy-in
Lack of network
Other
Cost

12. 12 | P a g e
What would Blockchain adoption look like?
2015 (Exploration and development)
- Initial capabilities and use-case assessments
- Early adoptions likely for internal reconciliation
2016-2017 (Early adoption)
- Lending banks see the value and begins development for asset
classes bilaterally traded and have no central clearing authority.
- Regulatory certainty drives adoption for external uses.
- Regulatory authorities realizes the benefits for auditing and
complaining; rule-making begins.
2018-2024 (Growth)
- Banks begin to see the benefits experienced by the early adopters.
- New service providers and models emerge.
- Deployment goes viral across numerous asset classes.
- New products and services are created.
2025 (Maturity)
- Blockchain adoption is considered mainstream and integral to the
capital markets ecosystem.
Source: Accenture
Technology roadmap
The roadmap is needed against the vision for the blockchain and
recognition of the need to “design in” flexibility. We are currently at the
early stage of the technology, with a lot of innovation and development
taking place.

13. 13 | P a g e
Stage: In development
- Research and innovation
Many providers and platforms are coming to the market with
technology innovations.
- Proof of concepts
Industries undertaking proof of concepts to validate ideas to keep
pace with disruption.
Stage: Future innovation
- Legal
New laws will come into play in order to keep pace with the
changing environment
- Regulatory
Regulators will focus on how blockchain achieves outcomes that
align with regulatory concerns.
- Privacy
Innovations in cybersecurity within the blockchain ecosphere
- Operational
Advances in scalability of blockchain networks as these networks
continue to grow larger and hold increasing volumes of data.
Source: PwC blockchain overview
Benefits of Blockchain
Blockchain can remove the need for an intermediary to establish the
trust necessary when exchanging value.
As the intermediary is removed, it results in the reduction of cost, time
and risk

14. 14 | P a g e
Secure & Resilient- Due to the distributed nature of blockchain, there is
no single point of failure. This makes it significantly more resilient than
current systems.
Transparent & Trusted- The blockchain ledger can be inspected,
changed and validated by all users since the records are immutable and
have an audit trail of changes built in by design, creating trust through
transparency. Blockchain utilizes battle hardened encryption making it a
very secure platform.
Source: PwC blockchain survey
Barriers to implementation
Co-operation and establishing standards
- In order to gain widespread adoption, standards need to be agreed between
participants that create a common set of protocols for individual firms to
adopt. This is challenging given the number of participants that need to
come to agreement.
- For some markets “critical mass” will be achieved by a smaller group that
will then work together and create de-facto standards.
Legal Framework
- To trade significant values of assets, firms need to ensure that they can
perfect legal title to the underlying asset, recorded by the tokenized asset in
the distributed ledger
- An identified challenge is achieving a uniform legal framework across a
distributed set of peer parties with no centralized authority
Settling value in “real money”
- Any mainstream application will need settlement certainty in fiat currency
- Tokenized solutions pose an added layer of settlement and counterparty risk
that will not be acceptable
Scalability and Resilience

15. 15 | P a g e
- Bitcoin’s transaction capacity (~3 transactions per second) precludes
mainstream adoption
- Regulators concerns around operational resilience will need to be satisfied
Regulatory Framework
- Regulators will focus on how blockchain achieves outcomes that align with
regulatory concerns (e.g. AML/KYC, Resilience, Recovery and Resolution)
- Specific local regulations will need to be met
- Impact of negative connotations associated with bitcoin on regulator’s
perceptions
Source: PwC survey
Blockchain future
- Internet of things
- Digital media micropayments
- Intellectual property
- Triple entry book keeping
- Decentralized autonomous organization
- Warehousing
Internet of things -
The Internet of Things is rapidly expanding its potential to transform
everyday life with smart homes, cities, farms and manufacturing
facilities. There are huge growth prospects for the market, when
considering the prediction of the Gartner report that there will be more
than 20 billion connected things by 2020.
By providing a secure mesh network, blockchain can deliver a platform
for IoT to interconnect reliably and avoid the threats that plague central
server models. There are companies already using blockchain to power
IoT systems, especially in the agriculture and manufacturing industries
where there is a need for remote sensors and automation. IoT, powered

16. 16 | P a g e
by blockchain technology, enables a low power, secure network that can
remotely manage physical operations without centralized cloud servers.
Source: http://www.gartner.com/newsroom/id/3165317
http://www.cio.com/article/3200029/internet-of-things/why-blockchain-is-the-future-of-iot.html
Triple entry book accounting
Modern financial accounting is based on a double-entry bookkeeping
system. Double-entry bookkeeping allows firms to maintain records that
reflect what the firm owns and owes and also what the firm has earned
and spent over any given period of time.
Triple Entry Accounting (Double-entry + Cryptography)
Triple entry accounting is an enhancement to the traditional double-entry
system in which all accounting entries involving outside parties are
cryptographically sealed by a third entry. These include purchases of
inventory and supplies, sales, tax and utility payments and other
expenses. Placed side by side, the bookkeeping entries of both parties to
a given transaction are congruent.
This is where the blockchain comes in: rather than these entries
occurring separately in independent sets of books, they occur in the form
of a transfer between wallet addresses in the same distributed, public
ledger, creating an interlocking system of enduring accounting records.
Since the entries are distributed and cryptographically sealed, falsifying
them in a credible way or destroying them to conceal activity is
practically impossible.
Source: http://blockchainabc.blogspot.in/p/blog-page.html
Use of blockchain in IP
Using blockchain as an IP registry may help give clarity to copyright
authors, owners and users. By registering their works to a blockchain,
authors could end up with tamper-proof evidence of ownership. This is

17. 17 | P a g e
because a blockchain transaction is immutable, so once a work has been
registered to a blockchain, that information cannot ever be lost or
changed. In theory, third parties could use the blockchain to see the
complete chain of ownership of a work, including any licenses, sub-
licenses and assignments. One useful feature of blockchain is smart
contracts, which could assist in the sale and licensing of intellectual
property. A smart contract is basically a computer program code which
has the ability to facilitate, execute and enforce a contract by itself.
Source: www.taylorwessing.com
Closing Notes
Blockchain - the technology behind the digital asset and
payment system Bitcoin - has the potential to transform the
supply chain.
If blockchain technology allows to more securely and transparently track
all types of transactions, this will take supply chain to a whole new level.
Every time a product changes hands, the transaction could be
documented, creating a permanent history of a product, from
manufacture to sale. This could dramatically reduce time delays, added
costs, and human error that plague transactions today.
Source: http://www.supplychain247.com/article/why_blockchain_is_a_game_changer_for_the_supply_chain
Some supply chains are already using the technology, and experts
suggest blockchain could become a universal “supply chain operating
system” before long. This is how the technology could improve the
following tasks:
• Recording the quantity and transfer of assets - like pallets, trailers,
containers, etc. - as they move between supply chain nodes.

18. 18 | P a g e
• Tracking purchase orders, change orders, receipts, shipment
notifications, or other trade-related documents.
• Assigning or verifying certifications or certain properties of physical
products; for example determining if a food product is organic or fair
trade.
• Linking physical goods to serial numbers, bar codes, digital tags like
RFID, etc.
• Sharing information about manufacturing process, assembly,
delivery, and maintenance of products with suppliers and vendors.
Source: http://www.supplychain247.com/article/why_blockchain_is_a_game_changer_for_the_supply_chain

19. 19 | P a g e