This was presented in Hong Kong yesterday at a chain of things event. This is based on a whitepaper I co-authored: https://www.gtlaw.com.au/blockchain-and-shared-ledgers-new-age-consortium. It talks about the consortium model and how private shared ledgers are being used to build these in financial services. I also give some example use cases for supply chains using both public and private blockchains.

1. Private Shared
Ledgers:
The new age of the
consortium

2. What This Will Cover?
• Different Trust Models
• Privacy & Confidentiality Key Design Feature
• What is a Private Shared Ledger?
• Why Use A Consortium?
• Different Types of Consortiums
• How To Form a Consortium/Structure
• Example
• How IOT fits in
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3. Traditional Clearing
House
Fully DecentralisedHybrid Private Model
Reliance on central
intermediary or
custodian
Public blockchain
model
Trusted shared ledger
for private consortiums
Lead / Master
Node
Private Hybrid Model
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4. DCS Triangle – the trade-offs for achieving
confidentiality
4
Consistent
High Throughput
High Capacity
Low Latency
Anyone can join
the network as a
validator
All nodes see the same data
at the same time

5. A B
Initiate transaction
Posts record to the transmission network
Broadcast this transaction to the network
Validate transaction
Record to blockchain
Come to consensus on transaction
Transaction completed
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2
3
4
5
6
7
DISTRIBUTED
TRUST
CENTRALISED
TRUST
No broadcasting to nodes (other than the
counterparties)
Rules based engine (validation is “node to node”
or via one node, based on the operating rules
agreed between ledger participants)
Recorded onto the individual nodes of the counterparties –
with no sync required across the remainder of the
distributed ledger
vs
Private Shared Ledgers
– New approaches to validation and consensus
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6. Private Shared Ledgers: common features

8. Cryptographic Tools Being Deployed to
Solve The Privacy Problem
• Zero Knowledge Proofs
• Zk-SNARKS
• zCash
• Hawk
• Confidential Transactions
• State Channels
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9. Why Use a consortium
• The success of blockchain and shared ledger technologies requires significant levels of market participation
collaboration and investment.
• The consortium is less about a technology solution or a particular business model, and more about a way for
companies to come together and collaborate.
• Participants don’t need to trust each other. The participants on a shared ledger just need to have similar
requirements in terms of:
• ++ the mix of confidentiality and transparency (as captured in the design choices and operating rules for the
shared ledger platform);
• ++ functionality and processes;
• ++ the approach to governance; and
• ++ a shared view of regulation and compliance
and they need to commit to complying with the operating rules of the consortium.
• Where the participants are known to each other, they can leverage the efficiencies of working on a private shared
ledger:
• ++ to deal with other participants directly, without the need for a third party intermediary; and
• ++ to innovate in a cost effective manner – and collaborate with other consortium members where it makes sense.
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10. Shared Ledger Platforms
Public Private
Eg: R3, AMIS, Utility Settlement Coin
Platform
Consortia
Inter-Company Shared Ledgers
Distributed
Autonomous
Communities
Intra-Company
Shared Ledgers
Business
Divisions
Business
Suppliers
Business
Consortia
Hyperledger
• Trend towards open
source
• Race to be the
ubiquitous shared
ledger platform
On public blockchain
On private shared ledgers
Private Shared Ledgers: new consortia emerging
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12. Consortium Agreement Participant Agreement
Consortium
Promoter
Founding
Members
Participating
Members
Non-
Participating
Members
Governance
Board
Decisions re
Consortium
Shared Ledger
Platform
Operating
Rules
Smart
Contracts
System
Rules
Engine
Technology
Supplier
Decisions to be
implemented on
Ledger
Consortium
Manager
Management of
consortium
operations
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13. Mapping
File
011001010
010100101
011001010
010100101
011001010
010100101
01100101010011
changes state
Ensuring consistency between smart contracts
and “real world contracts”
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14. 14
Distributed Ledger
Vault
Smart
Contract
System
CO (Centrally Organised)
Governance Board
CODE – example of new governance
framework for shared ledgers

15. 15
2nd Global Blockchain Summit Shanghai September 2016
BHP proposal to share public regulatory information

16. 16
2nd Global Blockchain Summit September 2016
BHP proposal to share public regulatory information

17. 2nd Global Blockchain Summit Shanghai
September 2016 - BHP presentation
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18. 18
2016 – BHP: Tracking wellbore samples

19. Project Rai Stones delivers a blockchain based
sample tracking system ready for production
What this means for BHP Billiton
• Improves wellbore sample data access to almost
real-time status
• Provides greater transparency to BHP Billiton
business units, vendors and government agencies
• Reduces human error and cost of compliance
• Confirms readiness of the blockchain to begin
exploring more user-cases
Non monetary use cases
• First business use of embedding process on the
blockchain beyond simple value transfer use
cases within financial services
• Extends the blockchain beyond data to logic and
leverages the power of smart contracts available
through Ethereum
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2nd Global Blockchain Summit Shanghai
September 2016 – BHP: Tracking wellbore samples

20. Shared ledgers for supply chains
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21. Blockchain and supply chains
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22. Blockchain and IoT
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23. Blockchain and IOT: Filament
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24. Blockchain and IOT: Filament
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25. Conclusion
• Institutional trust wasn't designed for the digital age.
• The emergence of shared ledger technologies –
empowered by consortia – is a game changer for a
major trust shift, which will empower new business
models and relationships between corporations and
consumers.
• If shared ledger technologies realise their full
potential, then the consortium model should thrive
and be sustainable in the way that hasn’t been
possible in the past.
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26. Contact Info
• Email: george.samman@gmail.com
• Twitter: @sammantic
• Blog: sammantics.com
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