Making Blockchain Real for Business Demonstration of Blockchain Scenario Part II

Transcription

1 Making Blockchain Real for Business Demonstration of Blockchain Scenario Part II Guillaume Hoareau Certified IT Architect Blockchain on IBM z Systems SME V3.5, November 21th Page 1

2 Blockchain for business Append-only distributed system of record shared across business network Shared ledger Smart contract Business terms embedded in transaction database & executed with transactions Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Privacy Consensus All parties agree to network verified transaction Broader participation, lower cost, increased efficiency Page 2

3 Potential use cases Securities Post-trade settlement Derivative contracts Trade Finance Bill of Lading Cross-currency payment Syndicated Loans Supply Chain Page 3 Retail Banking Cross border remittances Mortgage verification & contracts Public Records Real estate records Vehicle registrations Citizen Identity Digital Property Management KYC (Know Your Customer)

4 IBM Blockchain Selected References HSBC, Bank of America, IDA ABN AMRO Crédit Mutuel Arkéa Japan Exchange Group (JPX) Mizuho IBM Global Finance Everledger Bank of Tokyo Mitsubishi UFJ CLS UBS Trade Finance - Letter of Credit Financial Restructuring & Recovery Consortium Shared Ledger - KYC Post Trade Digital Currency Shadow Chain for Dispute Resolution Diamond provenance Business Partner Contracts Bilateral netting service Digital trade finance Page 4

5 Not for all... Blockchain is NOT Suited to high performance (millisecond) transactions For just one participant (no business network) A replicated database replacement A messaging solution A transaction processing replacement Suited for low value, high volume transactions Page 5

6 Demonstration of Blockchain Scenarios IBM Global Finance Trade Finance, Letter of Credit Page 6

7 Finality + Consensus IBM Global Financing Services What How Over 4000 Supliers and Partners Woldwide $44 Billion Financed / Year Disputes Every Year 2,9 Million Invoices / Year Shadow Blockchain Combination of data provided by the participants in the network, creating a consolidated and detailed view of transactions that is visible to all parties. Page 7 Link: Benefits 1. Blockchain enables a comprehensive view of all IGF operations. 2. Significant reduction in number of disputes, reduction in dispute cycle time. 3. Improvement in productive use of working capital.

8 Page 8

9 DEMO TIME DEMO TIME 2 Page 9

10 Use Case: Trade Finance What How Value Reduce risk and increase automation to increase global trade financing which generates $50B in revenue for banks Increased visibility and trust across the participant. Decrease delays and manual effort via automation Reduce inefficiencies and risk. Reduce cost of financing. Improve financing opportunities for SME. Enable new financing instruments Page 10 Approach Partner/Anchor customer: Trade Finance Leader Sign 2 design customer banks + 1 Exporter/Importer Deliverables Secure Letter of credit and associated documents Automated validation of documents Plan Development: IRL, WRC Scope: Letter of Credit

11 Traditional Trade Finance Constraints: >10 parties, ~30 documents, physical presence and overwhelmingly paper-based WITHOUT BLOCKCHAIN Good Producers Handling Firm & Container Firm Transport Firm B Customs Bonded Warehouse Shipping Firm Port Authority Bonded Warehouse Transport Firm C Handling Firm & Container Firm Transport Firm A Transport Firm D Raw materials and components manufacturer Buyer, Seller of Goods Exporter s Bank Guarantees banking arrangement & provides credit to producers bank Transaction Bank Guarantees banking arrangement & provides funding to buyer Importer s Bank Page 11

12 Traditional Trade Finance Constraints: >10 parties, ~30 documents, physical presence and overwhelmingly paper-based WITH BLOCKCHAIN Good Producers Handling Firm & Container Firm Transport Firm B Customs Bonded Warehouse Shipping Firm Port Authority Bonded Warehouse Transport Firm C Handling Firm & Container Firm Transport Firm A Signature Signature Transport Firm D Signature Raw materials and components manufacturer Buyer, Seller of Goods Exporter s Bank Guarantees banking arrangement & provides credit to producers bank Transaction Bank Guarantees banking arrangement & provides funding to buyer Importer s Bank Page 12 DEMO TIME

13 Thank you!