Blockchain Introduction & Use Cases Sander van Loosbroek, Founder Cegeka DLT MARCH 28 TH , 2019
Introduction • Father, Cyclist, Founder Cegeka DLT • Vocational degree electronics, IT Bachelor, MBA • Founded 2 companies • Wrote thesis about the impact of blockchain on the financial industry at Nyenrode(2014) • 4 years of experience applying blockchainin real world business cases
About us DLT Services 5~15 core team Technology-agnostic, Real experience with Founded in 2015 members multi-project experienced Ethereum, Hyperledger team Fabric, Corda and others
What is blockchain? • A shared , distributed ledger that is secured by cryptography • Computers in a network, called nodes , process and store transactions • A blockchain network can span the globe and predictably reconcile transactions • No central authority governs the network
Whyis it secure? • All transactions are appended to the ledger and cryptograpically chained • If you want to change 1 transaction you’ll have to rewrite history • Built on existing “proven” technologies that you all use today
Whydo we want this? 1/2 Website Email The internet was designed to copy data reliably between nodes
Whydo we want this? 2/2 Transferring data (from party X to party Y) is not possible on the internet
And thisis today’s workaround Third Parties facilitate value transfer on your behalf
There’s more than 1 “type” of blockchain
And thusthereis more than 1 “kind”
The $ 1 mio question ADDITIONAL SLIDE DECK Will this technology disrupt your business model? • change how you collaborate with your customers, suppliers and partners? How do you decide what to do? • “Wait and see” or become an innovation leader in your industry?
A quickexercise: Whyblockchain? https://medium.com/coinmonks/blockchain-101-4acc9902b3a4
5 areas where blockchain willmake a difference Notariz 1. Notarization: To prove thatsomething ation “was” at a point in time 2. Ownership: To transfer in real time Owner 3. Sovereign identity: To prove that I am Triple Entry Accounting ship whoI say I am Blockchain 4. Smart contracting: Todigitallyexecutean agreement in mutualconsent 5. Triple entry accounting: To prove that2+ n Smart Sovereign partiesbothexecutedfaithfully Contracting Identity
1. NotarizationUse Case • Verify the existence of a document and its status (current/outdated) • Built on Ethereum, runs in a private permissioned environment
Manyothersavailable
Thoughts? • Is this disruptive? • might be for these guys → • What’s the point of using such a service?
2. Ownership: Blockchain in the worldof trade • Paper-based process dating back 100+ years • Doesn’t fit todays need for digital- first • Copiers, faxes and the internet didn’t change it, neither will blockchain
A rethinking example Source: blog.zuehlke.com/en/how-the-blockchain-can-disrupt-trade-finance/
Blockchain is a driver fordesigningnewTF products Title document Customer/Shipper/Warehouse/B ank/Supplier/Buyer Customer Bank X Token
A new Bill of Lading Unique global transaction Exact time Tokens = goods Readable for humans Low txn cost & machines
Thoughts? • Existing Trade Finance instruments de-risk financing thanks to jurisprudence • Blockchain is not a simple “plug - in” for these instruments – Leveraging blockchain most likely re-creates risks • Blockchain can drive huge process efficienties and de-risk trade financing where such risks currently exist – Think tier 3,4 and 5 customers. Who doesn’t trust i.e. Shell? ☺ • There is no value for blockchain in the existing processes
And … digital cash ofcourse • The report considers a wholesale CBDC (for use in financial markets), and a general purpose CBDC (for use by the general public) and their implications for payments, monetary policy and financial stability. • It finds that wholesale CBDCs might be useful for payments but more work is needed to assess the full potential. Although a CBDC would not alter the basic mechanics of monetary policy implementation, its transmission could be affected. https://www.bis.org/cpmi/publ/d174.pdf
A different kind of logic • IfCentral Banks were to create a digital form of money thatyou could hold yourself … • Under what conditionswould you give your savingsto a retail bank? Central bank vs Retail bank interest https://www.ecb.europa.eu/stats/policy_and_exchange_rates/key_ecb_interest_rates/ht https://thebanks.eu/compare-banking-products/savings- ml/index.en.html accounts/Netherlands Is thisworth it? (remember 2008 crisis and bail-out costs)
3. Sovereign identities • The concept of identities is changing • New standard developed by DIF – In use today in Zug https://medium.com/uport/next-generation-uport-identity-app-released-59bbc32a83a0
And itsused tovote (capitalmarkets onlyfornow)
Blockchain is fixing problems you didn’t know/care about • KYC, AML, WwFT , … verifying an ID is essential for any online solution but… • Knowing who did what in the past will prove to be far more valuable & reliable than KYC • But feel free to KYC ID’s for now ☺
If I knowwhoyou are… • “ Blockchain technology, most famously associated with the crypto-currency Bitcoin, offers unique opportunities for humanitarian agencies to provide the best-possible assistance to vulnerable people around the world,” the WFP said at the time. • Within months, the WFP ran a full pilot in the Jordanian refugee camp of Azraqto successfully facilitate cash transfers for over 10,000 Syrian refugees on its blockchain payments platform. The pilot alone is said to save the agency $150,000 a month while eliminating a staggering 98% of bank-related transfer fees, according to Munich WFP innovation lab chief Bernhard Kowatsch.
4. Smart contracting • Thisis whatyouhave. Nowwhat? • Nick Szabohypothesizedthesolution tothisproblemin 1994 as follows : “ A smart contract is a computerized transaction protocol that executes the terms of a contract”. There just wasn’t any technology available to do this.
No disputesif you’re lucky ☺ • Executing contracts digitally is hard, as every party does their own calculations • These results need to be reconciled, resulting in discrepancies • Examples: Open book contracts “Achieve Low -Risk Freight Audit at any (common in logistics, music royalties) Volume, from any Region, in any Mode.” • Now: Done by 3rd parties such as
Smart contractingapplied Royalty Ledger is GuildOne’s Corda-based blockchain solution that brings the trust, efficiency and security of distributed ledgers and smart contracts to oil and gas royalty transactions. a business process engine w ritten entirely in Solidity sm art contract language as w ell as a high-level RESTful API.
Shippingparcelstoday Sur Surcharge Surcharge Sur Collect Col SKU request SKU request Freight 3 rd + DDP Customs Postal GOV.CN Customer party China SKU = ￥ SKU = ￥ DDU t 1 > DDU t 0 SKU DDP t 0 SK SKU DDP DDP t 1 Shipment SKU List SKU List SKU List ∆t
Whycustomsis interested SKU request SKU request Freight 3 rd 3 rd + DDP Customs GOV.CN Customer party party China SKU Set = ￥ SKU Query SKU DDP t 0 SKU DDP SK DDP t 0 Shipment Common SKU List LTN + SK SKU DDP DDP t 0 LTN ∆t
And whereblockchain makes a difference What was first: The duty change or the parcel shipment? Duty X% → Y% Tracking Tracking # [X%] # [Y%] GOV.CN Duty X% → Y% Tracking Tracking Tracking # [X%] # [X%] # [Y%] GOV.CN
Triple Entry Bookkeeping “The receipt is the transaction” To store a signed receipt of your counterparty toacknowlegde a transaction you need to: 1. Strong Psuedonymity, At Least 2. Entry Signing 3. Message Passing 4. Entry Enlargement and Migration 5. Local Entry Storage and Reports 6. Integrated Hard Payments 7. Integrated Application-Level Messaging
Challengingthe need foraudit • “ If a financial system was to be designed as such that there would be no need to reconcile, would there be a need to audit its integrity ?”
Wrapping things up… Or are we just getting started?
What willbe a game-changingsolution? • 9 banks, 29.991 to go? • Scalability is key • Building a closed platform != blockchain • Building what you can already do… • Think 5 years & strategy, don’t try to solve today’s problems
Andhowwillthenew worldwideweb actuallywork?
“Just in” -- UpdatedMarch2019 • DAML → The first smart contract with the concept of privacy modelled in → CEO+n left • NEW: Samsung Unveils Cryptocurrency Wallet, Dappsfor Galaxy S10 Phone • Proof of Stake → Part of the next Ethereum √ • SGX TrustedComputing → PoET anyone? • EY Ops Chain Public Edition (PE) with Zero- Knowledge Proofs → No further updates • NEW: Marshall Islands to Launch ‘Sovereign’ (SOV) Digital Currency as Legal Tender
Recommend
More recommend
