Blockchain WASHINGTON BANKERS ASSOCIATION

Transcription

1 Blockchain WASHINGTON BANKERS ASSOCIATION

2 What is a blockchain? Software that enables data sharing across a network of individual computers. A blockchain describes computers transferring blocks of records in a chronological chain aka distributed ledger.

3 How does it work? Through shared software infrastructure and trust. Users agree to a software protocol that describe the rules for the type, quality and transferability of data in addition to the rules for authorization, verification and permutation.

4 What started it all? Bitcoin Visa, Banks, Payment Processors Paypal, mobile pay Bitcoin Transactions 2.0 Eliminate all middlemen, costs and complexity of transactions through a shared ledger and network, cryptography, mathematical algorithms to confirm transactions and entities. The blockchain is underlying technology enabling all of this.

5 Think about a token based system where tokens represent the value of an asset being transferred between parties CHALLENGES Regulation Fraud Consensus Cybersecurity Scalability Trust Volatility of value Lack of consumer adoption OPPORTUNITIES Eliminate intermediaries Time efficiency Cost reduction Profit enhancement Process improvement Open network protocol Endless

6 Blockchain in technical terms Shared digital ledger of records and transactions Lowers cost data management by spreading cost to all on the network Reduces burden of costly centralized databases for processing. Secure network, data structures Cryptographically secured, shared network algorithms Records and certifies facts Information posted once, never can be changed. A block of information is digitally sealed forever. Includes ownership, asset registry and identity Validates transactions Use of mathematical, consensus algorithms proofs, no need for central authority to do it like a bank, notary.

7 How does blockchain work?

8 What s the big fuss about Blockchain? Its about new, low cost, distributed, collaborative, intelligent networks

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14 Blockchain use cases in development Moody s List

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16 Emerging Use Cases in the Financial Markets 1. Post-trade settlement 2. Trade finance 3. International payments 4. Reference Data 5. Regulatory

17 Major blockchain players in the Financial Sector R3 Blockchain Consortium R3 is a financial innovation firm that leads a consortium partnership with over 50 of the world s leading banks, to design and deliver advanced distributed ledger technologies to global financial markets The Hyperledger Project a collaborative effort created to advance blockchain technology by identifying and addressing important features for a crossindustry open standard for distributed ledgers

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20 Creating The Muskoka Group Governance for Blockchain Technology Attendees: Linux Foundation Founder HyperLedger Founder Consensys Founder Digital Chamber of Commerce Founder and Board Members World Wide Web Foundation Former Deputy White House press secretary Don and Alex Tapscott co-authors Blockchain Revolution Christa Steele

21 References R3, Digital Asset Holdings, ConsenSys, Hyperledger, Linux Foundation IBM and Microsoft Coin Desk Morgan Stanley Kahn Academy Lets Talk Payments American Banker Blockchain Revolution/ Don and Alex Tapscott

22 Boardroom Consulting 1700 Montgomery Street, Suite 101 San Francisco, CA 94111