Use Case_blockchain.pdf

Use Cases of Blockchain Anshul Gupta

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Blockchain Core Concepts

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What Is a Blockchain? A "Distributed Ledger"  A ledger records transactions Distributed Ledger of Bitcoin Transactions (Tx) "Genesis Block"

Block of Tx

Block of Tx

Block of Tx

Block of Tx

Ledger Replicated Across Peer-to-Peer Network

Node Node

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Node Node

 Trust achieved by massive

replication across network network consensus is "mining"

Node

Node

records, grouped in blocks, never ending, chronologically ordered chain

 Protocol for "shared truth" or

Node

Node

 Sequence of transaction

 Optional programmatic behavior

attached to transactions ("smart contracts")

Permissioned vs. Permissionless Blockchain  Permissionless: – Consensus without centralized

authority (proof of work via mining) – Anyone can perform validation

function – No prior relationship with ledger

required (pseudonymous or anonymous)

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 Permissioned: – Know your customer (KYC)

(proof of stake) – Validating nodes are predefined and

trust implied throughout the network – Participants are known ahead of

time (validated prior to usage with legal identities)

Blockchain Technology — Let Me Count the Ways! Blockchain

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Permissioned or Permissionless

Underlying Blockchain

Bitcoin

Permissionless

Bitcoin

Bitcoin

PoW

Ethereum

Permissionless

Enhanced Bitcoin

Smart Contracts (Ether)

PoW/POS

Eris Industries

Permissioned

Tendermint

Smart Contracts

PoV (Validators)

Codius

Permissioned via Oracles

Enhanced Bitcoin

Smart Contracts

Everledger

Permissionless

Enhanced Bitcoin

Provenance Tracking

PoW

Counterparty

Permissionless

Bitcoin

XCP

PoW

Clearing House

Permissionless

Bitcoin

Viacoin

PoW

BitHalo/BlackHalo

Permissioned/Multisignature

Bitcoin, BlackCoin and BitBay

Smart Contracts

PoW/POS

Nxt

Permissionless

Proprietary

Nxt

POS

Peercoin

Wallet, Not Ledger

Enhanced Bitcoin

PPC

POS/PoW

Ripple

Permissioned/Permissionless

Built on Codius

XRP

PoW

R3

Permissioned

Corda

IBM Hyperledger

Permissioned/Permissionless

Hyperledger

Multiple Altcoins

PoW

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Currency or Process

Validation

Blockchain Offers Unique Benefits Digital asset creation Payment tokens Distributed ledger of records Immutability of records Traceability of records Consensus mechanisms Smart contracts 5

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Blockchain Innovation Already Underway

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Blockchain Use Cases

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There Are Four Types of Blockchain Initiatives Blockchain Disruptor

New businesses that rely on a blockchain foundation. Business model may not be new.

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Digital Asset Market

New markets based on digital assets formed from nondigital ones (physical and virtual).

Efficiency Play

Efficiency improvements in transactions, interactions and tracking provenance of assets.

Record Keeper

Records management by one entity, for self or for a community.

Four Types of Blockchain Initiatives and How They Differ Blockchain Disruptor

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Digital Asset Market

Efficiency Play

Record Keeper

Revenue Growth

Cost Savings

New Business Models

Current Business Models

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Your Situation and Strategy Can Lead to Different Choices Blockchain Disruptor

Digital Asset Market

Efficiency Play

Record Keeper

Media Company Media Rights Management

Platform for Trading Advertisement Contracts

Central Government Carbon Credits Trading

Voting Records

Multinational Bank Digital Asset for Gold

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Clearing and Settlement

KYC/AML

Answer Five Key Questions First Where will this be implemented? When?

Who all have skin in the game? Who?

What is the scope of the work? What?

Why is blockchain the best option? Why?

Whether? 11

Whether this project is needed at all?

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Blockchain Use cases Are Biases Towards Institutional Banking & Securities

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• Trade Finance

• Securities Trading & Settlement

• Remittances & International Money Transfer

• Reference Data Management

• KYC & AML

• Internal Payments

• Loyalty & Rewards

• Insurance

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Blockchain Activity Is Seen In Most Industries

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Government

Investment Services

Banking

Insurance

Media & Entertainment

Healthcare & Pharma

Supply Chain

Sharing Economy

Client Auditing

Agriculture

Internet of Things

Utilities

Retail & Ecommerce

Education

Disruptive Start-ups

Precious Metals

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Blockchain use cases  Securities



–

Suspicious user alert system

–

Cross border remittances

– Derivative contracts

–

Mortgage verification

– Securities issuance

–

Mortgage contracts (smart contract)

– Collateral management

–

Intercompany payment

–

Digital wallets

–

KYC

– Post-trade settlement

– Asset allocation

 Trade Finance – Bill of Lading – Cross-currency payment

 Syndicated Loans  Intra-bank settlement  IP protection for entertainment content 14

Retail Banking

and distribution

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

Public Records –

Real estate records

–

Vehicle registrations

–

Business license and ownership records

–

New notarization process

–

Identity management

Blockchain use cases  Payments

 Government

– Peer to Peer transactions

– Voting

– Cross border money transfer

– Property registration

 Insurance – Theft reduction  Healthcare

– Healthcare data record keeping

– Improve transparency and accuracy in

record keeping  Utility – Smart metering – New prepaid payment mechanism  Education – Authenticate certificates – Certificate issuance

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Follow the money! 16

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