Use Cases
- 1. Blockchain Use Cases By Encrypted Labs
- 2. Areas of Interest • Post-trade Data • Settlements, Clearing, and Audits • Issuing & Transferring Assets • Tracking Intellectual Property & Fraud Prevention • Compliance: AML, KYC, and Reporting
- 3. Immediacy, Auditability, Transparency • Reduces infrastructure footprint • Register, Store, and Transfer Assets • Record ownership • Lower capital requirements • Reduces counterparty risk • Audits • Reliability (inter-system) • Increases transactional security & data integrity • Reduces duplications • Eliminates reconciliations • Reduces error rates
- 4. Integration Barrier • FX trading – Bitcoin and other current blockchain technologies cannot handle transaction volume which is why BigchainDB appears to be a perfect solution.. (Refer to BigchainDB whitepapers for more information)
- 5. Post-trade Data Example • ICAP uses Blockchain for what they refer to as “golden source” data needed for reporting trades to regulators as well as covering risk from trades by posting the right amount of collateral or cash to clearing houses. This avoid re-validation between systems making it a major back & middle office benefit. How it works: ICAP uses multi-asset messaging on the Blockchain to trigger smart contract creation and execution in real-time which increases security and accuracy of post trade data
- 6. Settlements, Clearing, and Audits • Reduce counterparty risk by enabling real-time settlements instead of intra-day batch. • Creates liquidity levels never before possible with T+3 settlement Eliminates the need for.. • Clearing Houses • Auditors (External/3rd party) • Custodians
- 7. Issuing & Transferring Assets Example • Linq by Nasdaq was developed to issue assets & automate share management which results in exponentially reduced infrastructure costs by being more efficient and self-auditing (secured & time stamped)
- 8. Tracking Intellectual Property & Fraud Prevention • By assigning a hash to IP that is recorded in a secured open ledger, individuals and companies alike are enabled to show provenance which can be used as a legal enforcement tool as well as easily grant licensing permissions and track unauthorized usage & distribution of property.
- 9. Tracking IP & Fraud Prevention Examples Ascribe.io was created for artists and content producers to cost-effectively eliminate the friction in IP registration, tracking, and enforcement. When a user uploads a unique piece of work it is hashed into the Blockchain to show provenance and can be licensed to others for re-use, resale, distribution, or transfer ownership in the event of a sale leaving behind an audit-trail throughout its lifespan. To take it a step further, Ascribe.io combined a proprietary web crawler with this technology to automatically alert its users of unauthorized usage of their content across the internet. This technology has already began being applied by others to track products within a supply chain, manage big data monetization, and other forms of copyright anti-fraud enforcement. A case study with Everledger was able to identify a 6% fraud rate for a diamond distributor & pinpoint the areas of leakage within the supply chain which equated to over $7 billion in annually fraud. This study was completed in under a 2 week timeframe.
- 10. Compliance: AML, KYC, and Reporting • By increasing transactional transparency, companies are better able to visualize, analyze, & assess high-risk transactions and react to them faster. • A secured, tamper-resistant ledger creates an immutable audit trail.