The Power and Possibilities of Blockchain in the Enterprise Sector - PowerPoint PPT Presentation

The Power and Possibilities of Blockchain in the Enterprise Sector Niki Ariyasinghe – R3, Director, Partnerships APAC 12 February 2018

Topics for Today • R3’s journey with Blockchain • The Corda Platform • Key Use Cases p2.

R3’s Journey with Blockchain

The New Operating System for Global Finance R3 is an enterprise blockchain company backed by a consortium. We are leveraging our blockchain (Corda) to build the next generation of financial services infrastructure 4

Our Global Reach What began as an exploratory exercise by a small group of investment banks, has developed into a world wide connected consortium spanning finance, banking, insurance, and payments R3 has a fast growing team with With 160+ R3 professionals combined offices in: with the DLT teams from New York Sydney • • over 80+ members resulting in an London Taipei • • unparalleled team of Seoul Tokyo • • over 2000 people across 22 countries dedicated Singapore Washington DC • • to DLT collaboration Switzerland •

The R3 Network: Focused Exclusively on DLT Solutions for Financial Services R3 Members The R3 Member Consortium – 80+ Member Institutions Globally & Growing >20 Regulator Members: • Hong Kong Monetary Authority • Securities and Futures Commission of Hong Kong • AMF (Montreal) • Illinois Department of Financial and Professional Regulation (IDFPR) R3 Investors (Tranche 1 and 2) R3 Board Members Tranche 1 & 2 Investors – 44 Strategic Shareholders World Class Investor Board Members • Abu Dhabi Global Market (ADGM) • Bank of Thailand • Monetary Authority of Singapore • + Additional Regulators whose participation is currently confidential p6.

Distributed Ledgers: I Know That What I See Is What You See… Now After Distributed Before the Internet Ledgers R3 Lab & Research Centre - Confidential.

Collaboration is key R3’s Vision for Industry -Wide Collaboration is at the Core of our Value Thesis 1400 Wiki Contributors Clearing Sovereign If you print the wiki, you can stack it to Houses Wealth Asset Not-for-Profits the moon and back Managers Startup Reinsurance Community 100+ Proof of Concepts Each with ~3-8 members involved Technology Insurance Companies 11 Thematic Working Groups Producing profound, collaborative Industry Academic research Organizations Institutions Central Exchanges >500 People, From 150+ Banks Banks Regulators organisations At Corda conferences Why Collaborate? How Do We Collaborate? Effective design, build and adoption LRC Projects ▪ 250 Regulatory Interactions of DLT require collaboration. DLT Conferences ▪ With dedicated and experienced reg. hinges on the network effect to Workshops ▪ outreach team realise its full potential. Working Groups ▪

Distributed ledger technology is transformative, but not a panacea R3 Lab & Research Centre - confidential. p9.

Key Focus Areas Roadmaps to focus efforts and align solutions to the DLT future state of financial markets Digital Assets Trade Finance >100 Projects Insurance Digital Cash Digital Identity p10.

This year we are rapidly progressing towards production solutions 2018 – The year of 2017 – The Production year of the Pilot 2016 – The year of the POC 2015 – The year of Hype p11.

The Corda Platform

Meet Corda The open Blockchain platform for digital cash, assets and trade. Designed for business, built for privacy p13.

Corda, Blockchain Characteristics Corda Retains all the key characteristics of a Blockchain system Smart Contracts Immutability Records are stored in a Business Logic is encapsulated cryptographic manner and executes in a deterministic, that assures lineage and tamper evident manner. tamper evidence. Consistent Shared Facts on Ledger Consensus over uniqueness Shared facts are agreed Records of shared facts upon by a variety of including financial consensus mechanisms. agreements are consistent across entities.

Point-to-Point, Privacy Corda is a point-to-point system - a fundamental architectural difference to other systems. Only Corda enables Ledger Smart transaction privacy with Smart Ledger contract contract transactions only shared with parties of the transaction.

Consensus as a service Corda separates the trust mechanism from the node allowing a pluggable consensus service which we call a notary. Consensus Service (Notary) Consensus algorithms can be chosen at the transaction level, not the Blockchain level.

Private Business Networks Only Corda can enable a global network of interoperable nodes while still supporting private business networks. One node can participate in many networks. The networks can set policies and enforce membership creating Business Networks permissioned networks inside an interoperable network.

Coming Soon: R3 Corda & Corda Connect Connect Open source Mission Critical Network DLT Platform Open Enterprise Connect Open source platform Mission critical grade R3 hosted services to available free to any distributed ledger for enable the rapid organization and any enterprise deployments. formation of secure, industry. high performance networks. p18.

Corda – Built in partnership Partner Solutions Delivery Partners (Independent Software Vendors) (Systems Integrators & Advisory) Infrastructure / Technology Partners Network Service Providers p19.

Key Use Cases

Project Ubin Network of Participants Digital Singaporean Dollar Prototype for interbank domestic payments - Prototype Accelerator – Digital Cash To put the Singaporean dollar on a distributed ledger for the first time, building a prototype domestic payments for inter-bank obligations Vision (backed by central bank deposits), a DLT platform and internal capability for MAS/market participants in Singapore The eventual goal is to developing simpler to use and more efficient alternatives to today’s systems based on Objectives digital central bank issued tokens. • Improved domestic securities transactions, offering Delivery - vs-Payment (DvP) settlement in cases where it is not already Benefits available • Significantly improved cross -border payments (Payment-vs- Payment) and securities transactions (DvP) p21. R3 - Private and Confidential

Project HQLA X Network of Participants Tokenisation of baskets of securities to distribute liquidity more efficiently - Pilot Accelerator – Digital Assets A collateral lending solution for sourcing or providing High Quality Liquid Vision Assets (HQLA) on R3’s Corda To build an exchange that improves HQLA upgrade / downgrades by utilizing distributed ledger technology for the tokenization of baskets of Objectives securities that allows for quick, legal transfer of HQLA and re- hypothecation • Enables market participants to source or provide HQLA more Benefits efficiently • Improves transparency • More cost effective than current tri-party repo options R3 - Private and Confidential p22.

One example of the direction of DLT in financial services… ’ATOMIC’ TRANSACTIONS: CASH ON LEDGER TRUE DvP T+0 SETTLEMENT Solve for BONDS ON LEDGER (AS APPROPRIATE) Interoperability Identity Scalability Privacy REDUCED NEED FOR DERIVATIVES ON LEDGER COLLATERAL Upgradability OTHER FINANCIAL ASSETS REDUCED SYSTEMIC RISK ON LEDGER p23.

Focus Areas Digital Assets Trade Finance Beyond Financial Digital Cash Services Supply • Chain Oil & Gas • Healthcare • Digital Identity Insurance Retail • Etc … • p24.

Thank you www.corda.net www.r3.com/partner niki.ariyasinghe@r3.com