20170620 MEETUP intro to blockchain and smart contracts (2)
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The document discusses the benefits and applications of distributed ledger technology (DLT) and blockchain, emphasizing transparency, ownership, traceability, and smart contracts. It highlights that while blockchain offers significant advantages, it is not a solution for all organizational problems and comes with technical challenges. Additionally, it touches on the importance of collaboration in blockchain strategy within financial institutions amidst regulatory uncertainties.
20170620 MEETUP intro to blockchain and smart contracts (2)
- 2. Agenda Key benefits of DLT Blockchain use cases Conclusion
- 3. Understanding distributed ledgers Nomen est omen : blockchain A transaction is - Declaration of an incident - Pictures of the accident - Signed contract - A proof of payment - An offer from car repair - Steps in the RDR wizard - …
- 4. Understanding distributed ledgers Encryption vs hashing vs 1. Every hash is unique 2. Infinitly reproducable 3. One way traffic A hash is NOT unique
- 6. Blockchain : a business definition The blockchain is, from a business point of view, A shared platform On which parties who don’t know or trust each other Are able to collaborate with respect for privacy Without relying on a possibly corrupt administrator.
- 7. Blockchain : a database with benefits
- 8. Transparency Blockchain : a database with benefits
- 9. Transparency Permissioned vs permissionless vs
- 10. Ownership Transparency Blockchain : a database with benefits
- 11. Ownership How value is stored Nicki -> KoenIN 0,8 BTC Wim -> KoenIN 0,6 BTC Koen -> ThomasOUT 1 BTC Wim -> KoenREST 0,4 BTC Koen receives two payments - 0,8 BTC from Nicki - 0,6 BTC from Wim Koen transfers 1 BTC to Thomas - 0,8 BTC + 0,2 BTC - 0,4 BTC is unspent transaction • (A defined number of) assets are stored on the blockchain • Each asset is identified • Assets are divided • Assets are transferred (not copied) => Clear view on who owns what when.
- 12. Ownership Transparency Traceability Blockchain : a database with benefits
- 13. Traceability Defense of the sequence
- 14. Ownership Transparency Traceability Distributed Blockchain : a database with benefits
- 15. Distributed Centralized vs distributed Trusted party & Single point of failure
- 16. TrustOwnership Transparency Traceability Distributed Blockchain : a database with benefits
- 17. Trust Consensus as a service
- 18. TrustOwnership Transparency Traceability Distributed Smart contracts Blockchain : a database with benefits
- 19. The problem with smart contracts
- 20. Smart contracts : a definition A smart contract is an agreement whose execution is both automated and enforceable. • The actual “transaction” among parties is expressed through and independently executed by computer code, no party can block it or otherwise tamper with. • It constitutes legally binding rights and obligations of the involved parties. Advantages: • Parties are in consensus at all times as to the existence, nature and evolution of the facts shared among them, which are governed by the program. • Used to satisfy • common contractual conditions, • lower transaction costs and risk, and • eliminate the need for trusted intermediaries.
- 21. Smart contracts : a bunch of code
- 22. Smart contracts : a workflow
- 23. Smart contracts : a Ricardian Contract
- 24. TrustOwnership Transparency Traceability Distributed Smart contracts Blockchain : a database with benefits… … to share with our friends ...
- 25. Blockchain : a database with benefits… … to share with our friends ... … to have a single shared source of truth. Blockchain:
- 26. Agenda Key benefits of DLT Blockchain use cases Conclusion
- 27. Blockchain : a new paradigm
- 28. Company 28 KBC Decision model (© David Birch)
- 29. Company 29 • Depending on the use case, a specific DLT benefit might be that important in order to choose for DLT. • It is not that everything has to score 4 or 5 Trust Ownership Traceability Transparency Distributed Smart contracts Key elements are scored in a spiderdiagram
- 30. Maatschappij 30 Blockchain will not solve : • Organisational problems • Slow processes • Data Quality issues • Legal recourse • Fraudulent purposes • … Blockchain has a number of technical challenges to solve wrt: • Scalability • #Transactions per unit of time • Network size • Latency (Time until transaction confirmed) • … When not to use a DLT
- 31. Our experiments / projects Trade Finance Payments KBC Securities KBC Insurance Digital Identity (KYC) Banking Products R3 CEV B-Hive …
- 32. KBC Insurance | Document Authentication
- 33. Trust Chain - your digital documents on the blockchain Why? How do we, as insurer, secure trust of our customers in our digital documents, now and in the future?
- 34. Trust Chain - your digital documents on the blockchain What Authentic Valid 2-sided
- 35. Trust Chain - your digital documents on the blockchain VALID FROM 26 April 2017 VALID FROM VALID FROM VALID FROM VALID FROM VALID FROM Proof of Authenticity Proof of Existence Proof of Validity
- 36. B-Hive | Life Insurance
- 38. KBC Bank – credits | Car loans
- 39. As Is: Check investment evidence – traditional process customer branch HQ invoice Check invoice Registers invoice Scans invoiceCredit = approved Pay credit garage invoice Pay for car Receives payment Extra check invoice (natural person if amount > 10 K)
- 40. To Be: Check investment evidence – blockchain customer branch Credit = approved garage Receives amount Blockchain approved credit? HQ Confirms invoice, delivery and chooses Payment Confirms order & data Uploads order and adds ref, Amount VINnbr Initiates Pick up car & uploads final invoice Check invoice -> scoring garages
- 45. Groundrules online identity - You administrate your own identity - You share parts of your identity - You decide what to share - Your identity follows your life - Transparency is key - Portable and usable identity - The lesser shared, the better - Protect the user Naar https://github.com/ChristopherA/self-sovereign-identity/blob/master/self-sovereign-identity-principles.md
- 46. Identity Reputation Access Feedback KYC service Uber service Customer loyalty card
- 48. Agenda Key benefits of DLT Blockchain use cases Conclusion
- 49. Blockchain & financial institutions : the forgotten words LIABILITY GOVERNANCE REGULATIONS
- 50. 1. Blockchain strategy is about collaboration. 2. Not just IT, also business is involved (risk appetite). 3. Unpredictable reactions of regulator & Government. 4. Financial signals (ROI) are problematic. 5. Radical uncertainty is the norm.
- 51. We The financial system relies on trust & data. Blockchain is trust & data.
- 52. Hi! Did you enjoy the slides? I raise funds (BTC) to support improving the daily lives of people with cystic fibrosis, like my son. I invite you to open your heart and your BTC wallet, please scan the QR code. Or use 1JmSPfvJ751BYi7TVD8xXqWzPpGXqrW9Fj as recipient. Proceeds go to Muco vzw (www.muco.be) Thank you for your support and appreciation. More info, questions or remarks? Koen.Vingerhoets@telenet.be Twitter : @IthronKoen