The praise of bysiness model anatomy and rapid prototyping

1. György BALÁZSI | Blockchain Competence Center
Business advantage with smart
contracts and blockchain
The praise of business model anatomy and rapid prototyping

2. Who is interested in the intersection?
Business Technology

3. Bitcoin vs Blockchain
Expectation transfer is more important then technology transfer
No double spend
1. Remote transactions
2. No double spend
3. Programmable “money”
(→ other programmable rights/assets)

4. Do you need censorship resistance?
If not, never mind the blocks and the chain

5. The USP of enterprise blockchain
Segregation & collaboration at the same time
In the blockchain era
Business move
Internet
Business move
Consistent data projections
Common business rules
In the Internet era
Internet
Business move
Data
Processing
Business move
Data
Processing
Before the Internet era
Business move
Data
Processing
Comms
Business move
Data
Processing
Comms

6. Virtual driving license in an ideal world
How to acquire and check driving eligibility
TxAlice
Pending
First aid test
Central admin
Final
Medical
fi
tness test
Final
Driving test
Tx
Final
First aid test
Tx
Background
check
Central admin
Alice
Signatories:
Alice
Central admin
Red Cross
Driving Test Center
Physician
Alice
Pending
Driving test
Tx
Observer
Police
Declarations
Pending
Medical
fi
tness test
Red Cross
Test center
Physician
Driving eligibility

7. General value proposition
• No more slow and costly manual reconciliation due to inconsistencies
• Speeding up data
fl
ow, multiparty decisions, approvals, transactions
• Fine-grained need-to-know basis, sub-transaction privacy
• Process automation
• Improved input granulation and hygiene for Big data and AI analysis
• Safe IoT remote control

8. “Killer apps” are interesting
And business model anatomy is even more useful (see →)
• Financial sector: Central Bank Digital Currency, bond issuance,
post-trade settlement, trade
fi
nance, parametric insurance
• Healthcare: COVID test certi
fi
cation, PII management, device
certi
fi
cation
• Commerce: supply chain management, product traceability
• Government: voting, land registry, virtual ID documents, companies
register
• Education: virtual certi
fi
cates
• Energy: microgrids

9. Who is using the Business Model Canvas?
Back stage Front stage
Pro
fi
t formula

10. Rapid prototyping of business models
You can’t pick the winners

11. Business model pattern library

12. Business model shift example: car sharing
Faster prototyping/development via smart contracts
• Tracking user liability
• Pricing innovation
• Avoiding bill shock
• Tracking user contribution
• 3rd party settlement
(insurance, parking, charging)

13. More blockchain-friendly business models
• Front stage: eliminating intermediaries,
engaging intermediaries, prevent churn
• Back stage: outsourcing, licensing, franchise
• Pro
fi
t formula: subscription, pricing
innovations, reducing transaction costs

14. Who has written any smart contracts yet?
Who thinks smart contract are “neither smart, nor contracts”?

15. The DAML version of the Coke machine

16. Multiparty smart contracts
The propose/accept pattern
Offer contract,
fl
exible set of
signatories
Offer contract signed by all
required signatories →
agreement contract,
fi
xed
set of signatories

17. Blockchain and database integrations
Fast prototyping:
•Portable DAML code
•written and tested once on
sandbox or database,
•ported to other platforms
•Automatically generated UI
•Automatically generated API set

18. Global Virtual Ledger
The Canton interoperability protocol
Domain A
HL Fabric
Domain
node
Domain
node
Participant node 1
PCS
Party A Party B Party C
Participant node 2
PCS
Party D
Domain B Domain C
Ethereum
Domain
node
Domain
node
Participant node 3
PCS
SQL
Domain
node
Participant node 4
PCS
Participant node 5
PCS
Party E Party F
Party G Party H Party I
Party J

19. The o
ff
er’s consequences
Deep dive: a 2-step FX transaction
Alice
Bob
IOU EUR_100 EUR_Bank Alice
IOU USD_110 USD_Bank Bob
EUR Bank
USD Bank
Bob’s offer
Tx
IOU EUR_100 EUR_Bank Bob
IOU USD_110 USD_Bank Alice

20. The o
ff
er’s consequences
Deep dive: a 2-step FX transaction
Alice
Bob
IOU EUR_100 EUR_Bank Alice
IOU USD_110 USD_Bank Bob
EUR Bank
USD Bank
Bob’s offer
Tx
IOU EUR_100 EUR_Bank Bob
IOU USD_110 USD_Bank Alice