The Blockchain #HypetoReality 23 rd May 2017
What is the beginning?
Dubai Government Blockchain Strategy 100% of Government documents to be on the Blockchain by 2020
Emirates NBD – Branch of the future
Two use case were chosen for Pilot With ICICI Bank Reality What has been 1.Cross Border achieved ? Remittances 2.Trade Finance Open Account Process
ENBD powered by the Infosys Finacle Blockchain Framework for remittances Settlement is cumbersome Key benefits seen by Fund Emirates NBD with blockchain Monitoring ICICI Bank Recon of Nostro Vostro 1. Settlement is simplified with Net settlement option ENBD ABC Bank 2. Reconciliation process is streamlined Non Standard integration with 3. Automatic fund monitoring with each entity smart contracts XYZ Bank 4. Ability to securely send documents with payments Non standard 5. Scalable integration Security adherence
Today’s Trade Finance process • Complex • Manual
Trade Finance process via Blockchain network Regulator Shipping What if everyone used and Customs ‘One’ system? Logistics - Will simplify the trade process to be more efficient Private Importer Exporter Bank Bank Blockchain - Though information is shared, only the concerned Network with party can access the data shared data that is required Buyer Seller - It can reduce/ eliminate frauds Certification Ready for Go Live Insurance Authorities Ports
BLOCKCHAIN The Road Ahead
For next 12 months, exploring, experimentation and POC’s is the key for our readiness….. “Discovery and experimentation is critically important. POCs help improve cross -enterprise collaboration and uncover the art of the possible” .Undertake measured R&D efforts with primary objective if identifying realistic use cases and learning the adoption of this technology… Gartn tner er Insig ight, t, 201 017 Our r Jour urney ney …. 2015 2016 2016 2017 H2 H1 H2 - Initial days of research - Implemented 2 POC’s with - Formalized Cross functional - Gained better - Founding member of business teams and initiated Blockchain Counsel understanding Dubai Blockchain check security & smart check - Three production ready use cases - Engaged Infosys with Council use cases - New use cases in pipeline and more their bit coin platform - First POV with Ripple - Multiple workshops with being explored - Explored Use Cases peers - Collaboration with Govt. Entities - Established COE-Blockchain
>AED >>AED 25,000,000 25,000,000 Financial loss due to Cheque Frauds in the UAE (Intelligent Guess)
Current Cheque Process Issuing Bank Presenting Bank Beneficiary 3 2 Send for validation to Issuing Bank Send for Cheque validation 1 4 Central Bank 5 Present the Cheque Pay/No-Pay response Cheque Receives confirmation on Pay/No-Pay Point of Fraud Identification, if found
Blockchain Enabled Cheque Security Presenting Bank Beneficiary 3 Present the Cheque 5 Return Cheque if Cheque is Invalid at Receives confirmation on Block Chain Pay/No-Pay Cheque Validation 4 in Block Chain Central Bank Blockcha in Issuing Bank Cheque Pay/No-Pay 6 by Issuing Bank Issuer Cheque book printed A unique randomized QR code is added to the 2 Cheque book Issued Cheque 1 Printing Issuing Bank DB partner
Areas under Exploration Government KYC/AML Entities Capital Markets Land Registries Collateral Blockchain Management as a service
reality Keep glamour and hype of Blockchain aside and let’s discuss the challenges we face and what should we do as a community to make progress. Do everyone agree ?
Are we all COLLABORATING or COMPETING?
Observations and Recommendations Recommendations Observations Form smaller cross-industry Blockchain POC’s in silos is groups not fruitful Form a governance board like The essence of a distributed the Blockchain council e ledger is lost Share outcomes of use cases Focus is more on PR and (focus on real production use hype cases pilot)
It is a Cu Cultural ural Shift It places trust and authority in a technology driven De-Centralised network rather than in Radical a central institution. 20 Blockchain is about 80 percent business process change and 20 per cent technology implementation. 80 This means that a more imaginative approach is needed to understand opportunities and Approach also how things will change. Deloitte: Blockchain Enigma. Paradox. Opportunity “Understanding the Blockchain”, William Mougayar , O’Reilly Radar, January 2015
There are Key Challenges to be aware off… Like any great idea or new technology, distributed ledgers and Blockchains are not perfect. Governance & Permissioning Scalability Implementation Regulatory frameworks • Finding a way to meet • Distributed ledger and • No standard tools or • It is unclear what will auditability and Blockchain administration be the “new normal” regulatory reporting applications have interfaces are threat matrix for needs while been known to scale available yet. shared ledgers among maintaining the poorly and suffer from large banks, which confidentiality of extreme latency. need to connect trading activity data is within the corporate difficult. environment and conform to very rigid standards.
In Conclusion Focus Implement for value Collaborate to share and learn Build skills
Thank you
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