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Blockchain in FinTech
Table of Content
Introduction
Highlight of what is Blockchain and its recent growth
along with a brief overview on Open Source.
Evolution of Distributed Systems
Overview of the problems in current system and how a
distributed system can help in resolving some of those.
Components & Type
What constitutes a blockchain solution and how do we classify different
blockchain solutions. Different between all 3 types of solutions
Architecture, Platforms & Tools
Discussion pertaining to different types of Blockchain Architectures and
Platforms and what would be ideal for starting out. Deep dive into Ethereum
Blockchain use cases in Fintech
Use cases for FinTech area and challenges faced in
adoption.
Way Forward
The next steps to take for building capability and
technological expertise in a new and emerging domain
Introduction
Defining Blockchain
• Blockchain is simply a data structure where each block is linked to another block in a time-stamped
chronological order.
• It is an immutable public record of transactions on a digital ledger which is distributed in nature.
• Every new transaction is validated by the participants before they are added to the chain.
• All data on the ledger is verifiable and auditable but not editable. Each block has its own unique cryptographic
hash as its differentiator and is linked to the previous block in the chain.
Origin and History of Blockchain
• SOURCE: Bitcoin Original Paper - https://bitcoin.org/bitcoin.pdf
General flow diagram of a Blockchain system
Currently blockchain technology is mostly
being used in virtual currency transactions.
Virtual currencies, such as bitcoins, don’t
quite have defined legal guidelines or
regulations governing their exchange. And
since have gained substantial popularity,
blockchain technology is the best available
way to ensure transactions happen securely
in a completely anti-fraudulent manner.
Now since no block can be altered, the
transaction trail cannot be erased. Because of
this reason, the technology is finding use
cases in several other areas as well, including
financial services, retail, trading, legal,
healthcare, and pretty much any business
that involves record keeping.
The Tectonic Shift in Blockchain
• Source: Estimates of a future potential of Blockchain applications - https://www.spaceotechnologies.com/future-blockchain-development-trends/
Reasons why Blockchain will be a major disruptive technology
The evolution of Blockchain
The first application of blockchain is money.
For the first time it is possible for two parties
to transfer money directly to each other:
secure, worldwide and without third-party
intervention. The blockchain transfers
ownership and records the transaction..
This blockchain generation facilitates crowd
ownership: shared property on a small scale
with control for the owners via voting and
distribution of profits via dividends. This fits
perfectly in the current trends of crowd
funding and the sharing economy.
In addition to money and assets, agreements
can also be registered on the blockchain. Such
a digital contract enforces the participants to
keep their promise. The capabilities of
blockchain contracts are unprecedented.
• SOURCE: Deloitte Analysis of GH Torrent Data and Github API data as of October 2017
The growth of Blockchain Projects in GitHub
The core code supporting
Bitcoin was published in April
2009. Since then, the number of
projects on GitHub related to
blockchain has grown
significantly, averaging more
than 8,600 new projects a year.
In 2016 alone, there were
almost 27,000 new projects
Of particular significance, some
projects that organizations have
developed have resulted in new
platforms (such as Ethereum,
Ripple, Corda, and Quorum)
which some developers now use
to build applications.
History of Open Source
Evolution of Distributed Systems
How the current system works
What can be the possible solution?
Distributed System attempts to solve the problem
Blockchain vs Traditional Databases
Blockchain has a strong use case where disintermediation and robustness have higher priority over
confidentiality and performance. This case is however being balanced out in recent implementations.
Blockchain vs Distributed Ledgers
People often equate Blockchain solutions with Distributed Ledger Technology (DLT). Interestingly that
is not the case in point. Highlighted below are the main differences between the two.
Components and types of
Blockchain
Four major components of the Blockchain Ecosystem
• Source: Text and Image credits - http://blockchainlabs.bsebti.com/components.html/
Properties required for a Blockchain
Types of Blockchain
Public Blockchain
Federated or Consortium of Blockchain
Private Blockchain
Public vs Private Blockchain – Part 1
A lot of people and organizations have tried to classifying blockchains, but there is no consensus on how to
accurately distinguish between different types of Blockchains. A selection of different classification schemes is listed
below from our frame of identity.
• Source: Chris Skinner’s Blog - https://thefinanser.com/
• Source-1: Adapted and Modified from- https://www.slideshare.net/DiegoDiaz49/1-ibm
• Source-2: Image credits from- https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/
Public vs Private Blockchain – Part 2
Architecture, Platforms & Tools
Blockchain Implementation Solutions
There is a wide array of approaches to implementing Blockchain or other Distributed Ledger Technologies. A
diverse landscape of players has emerged, including software service providers that offer software capabilities on
higher stack levels than the blockchain protocols themselves. Each approach has its own merits and challenges.
• Source - Image credits from- http://www.coindesk.com/which-blockchain-implementations/
Implementing Blockchain Solution – Part-1
• Source - Text and research details - https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/
Implementing Blockchain Solution – Part-2
• Source - Text and research details - https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/
Comparison of the most popular platforms in use
Why choose Ethereum?
There are currently two main blockchain platforms: bitcoin and Ethereum. Most applications are built on one of the
two. There are other less popular blockchains, and some companies create their own proprietary blockchains.
Bitcoin isn't a good choice to build an application upon. It was designed for money transactions and nothing else.
The best platform to get started on in the current market scenario is “Ethereum”.
While the above mentioned blockchains are public, which means all users and applications share the entire
ledger, other blockchains such as Corda & Hyperledger, provide private, permissioned blockchains for a limited
and defined number of users. These are more useful in industrial and niche sectors where a limited number of
parties take part.
There are numerous reasons to consider Ethereum” for building and testing out blockchain applications.
Key highlights among them are :-
• Ethereum is a completely decentralized platform with a Shared Global infrastructure.
• Has the ability to incorporate Smart Contracts. In fact Ethereum pioneered smart contracts , DAO and ICOs.
• Ethereum has a very active developer network and community and applications built on Ethereum will run
exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.
• Ethereum has started the “Ethereum Enterprise Alliance” to connects Fortune 500 enterprises, startups,
academics, and technology vendors with Ethereum subject matter experts.
Ethereum Enterprise Alliance
The Enterprise Ethereum
Alliance connects Fortune
500 enterprises, start-ups,
academics, and technology
vendors with Ethereum
subject matter experts.
Companies can build upon
the only smart contract
supporting blockchain
currently running in real-
world production –
Ethereum – to define
enterprise-grade software
capable of handling the
most complex, highly
demanding applications at
the speed of business.
• Source- https://entethalliance.org/
• Members - https://entethalliance.org/members/
Ethereum & Hyperledger Technical Architecture
Angular 4 / REACT / HTML 5
Node js Offline DB
Infrastructure / AWS Cloud Server
Mist Browser
Decentralized Application
Virtual
Machine
EVM
Content
Storage
Swarm
Comm.
Protocol
Whisper
Chain Code service
Membership Service (MSP)
Configurable
Consensus
DLP
Distributed Ledger
Presentation Layer
Service Layer
Communication API
Account
Management
Blockchain
Platforms
Ethereum Blockchain Platform Hyperledger Blockchain Platform
Infrastructure
Typical Aspects of Dapp (Decentralized Application) Development
• Source - http://blockchainers.org/index.php/2016/05/09/ethereum-development-tools-an-evaluation-matrix/
Tools needed to get started on Ethereum Development
Program name Usage
Ethereum Wallet / Mist wallet /
Metamask
Front end Dapp to test application. Metamask is
a browser plugin for Chrome & Firefox.
Geth for Windows Ethereum client written in Go Lang.
Node js & npm Needed for developing backend coding logic.
Atom / VS Code Code Editors for Solidity, Go, HTML, Angular.
Truffle, Test RPC Installed directly from command line in geth.
Python / Go Language Used in developing core ETH App.
Git Bash (Optional) Used as an optional Terminal to windows cmd.
All the software's mentioned below are open source and fall under the GNU License Category. Ethereum is compactible
with both Windows and Ubuntu OS; however Hyperledger works only on Linux (Ubuntu 16.4 LTS to be specific as of date).
For Hyperledger in addition to the below given software's we would need Virtual box to host a local Linux environment and
a tool like Docker CE for containerization.
Blockchain use cases in FinTech
Use Cases – A brief overview
There are 8 major use cases of blockchain in Fintech sector
Significantly reduce risk and prevent fraud
• > Everledger, IBM Blockchain, Auxesis, VeChain
Digital Identification (KYC, AML, CDD)
• > BankChain, SecureKey , ShoCard, Microsoft, GetXS, Selfkey
Smart Contracts for automatic contract enforcement.
• > Ethereum, NEO, Rchain, attores, Sofocle Technologies, Agrello
Simplifying Cross border payments using faster clearing & settlements.
• > Ripplenet, Mastercard , Clear, Stellar, IBM, R3 Corda, SWIFT, Primechain-P5, EzyRemit
A whole new type of Trading Platform
• > SETL+Deloitte, Nasdaq Linq, Coinbase, Binance, Biitrex, Cateina Technologies
Simplifying Payments (P2P transfer)
• > Bitcoin, Litecoin, Dash, Ethereum, Everex, Monero, Verge
The rise of Smart Assets
• > Hyperledger, NEM, DigixGlobal , Modex, BANKEX , Ethos, KrypC Technologies, Accubits Technologies Inc
Loyalty & Rewards Program
• > Loyyal, Blockpoint, BitReward, ELEMENTS, RewardsToken, LoyalGarden
Challenges in adoption
While blockchain technology would become a huge cost saver for banks in the years to come, challenges for its adoption need to be
addressed before they become a fully-integrated part of the financial services industry.
• The biggest hurdle is to make it easy for developers to built on top of Blockchain technology. We're talking about a nascent technology here
and it may take over 2-3 years more until standardization is achieved.
• Blockchain technology in its current form is very difficult to use. The user must know how public/private keys work, then go through dozens of
steps to actually get a transaction done in cryptocurrency.
• Currently only public chains guarantee the properties that make Blockchains different from standard databases. Namely immutability and
resistance to collusion thanks to consensus at scale. Unfortunately, said public chains have severe drawbacks in terms of both privacy and
scalability.
• The balance to achieve between scalability, privacy, and P2P settlement (Decentralization) is still a work in progress.
• The innovation in blockchain tech is happening fast, and is outpacing regulators’ ability to keep up. Regulatory hurdles will remain and
enterprises need to work within the regulatory framework which currently lacks understanding & knowledge.
• There is an absence of “control” in decentralized projects like Bitcoin and Ethereum. So by design they have no management structures and
this is a little outside of comfort zone for enterprises as they don’t have clarity about the future track, and how they can control it.
• Integrating with traditional/legacy banking software remains a challenge.
• Integration of different Blockchain platforms is also a challenge.
• The user interaction needs to be much better than it is currently.
• Higher initial costs involved in software / hardware / training.
• Shortage of trained resources with the know how.
• Energy Consumption needs to be reduced by better algorithms.
• Public perception must change towards cryptocurrencies for mainstream adoption.
Way forward
The next steps to the future
• Working on building POCs in Ethereum and checking integration with existing applications.
• Keep a regular check on the market events in blockchain. Since the tech is extremely new, the landscape is rapidly
evolving and new entrants and platforms are coming in quicker than most people can anticipate. Continually try and
experiment with upcoming platforms to best understand the emerging platforms.
• The community is now growing at an exponential pace and involvement in the same would be beneficial to the
future. Attend seminars, summits and conferences on Blockchain around the globe and get involved with the people
working in the background on this tech.
• Hire a small but dedicated team of people or move interested people into R&D on Blockchain to build up on future
capability. There will be a severe resource crunch when the technology goes mainstream.
Conferences and Summits
Thank You!

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Blockchain in FinTech

  • 2. Table of Content Introduction Highlight of what is Blockchain and its recent growth along with a brief overview on Open Source. Evolution of Distributed Systems Overview of the problems in current system and how a distributed system can help in resolving some of those. Components & Type What constitutes a blockchain solution and how do we classify different blockchain solutions. Different between all 3 types of solutions Architecture, Platforms & Tools Discussion pertaining to different types of Blockchain Architectures and Platforms and what would be ideal for starting out. Deep dive into Ethereum Blockchain use cases in Fintech Use cases for FinTech area and challenges faced in adoption. Way Forward The next steps to take for building capability and technological expertise in a new and emerging domain
  • 4. Defining Blockchain • Blockchain is simply a data structure where each block is linked to another block in a time-stamped chronological order. • It is an immutable public record of transactions on a digital ledger which is distributed in nature. • Every new transaction is validated by the participants before they are added to the chain. • All data on the ledger is verifiable and auditable but not editable. Each block has its own unique cryptographic hash as its differentiator and is linked to the previous block in the chain.
  • 5. Origin and History of Blockchain • SOURCE: Bitcoin Original Paper - https://bitcoin.org/bitcoin.pdf
  • 6. General flow diagram of a Blockchain system Currently blockchain technology is mostly being used in virtual currency transactions. Virtual currencies, such as bitcoins, don’t quite have defined legal guidelines or regulations governing their exchange. And since have gained substantial popularity, blockchain technology is the best available way to ensure transactions happen securely in a completely anti-fraudulent manner. Now since no block can be altered, the transaction trail cannot be erased. Because of this reason, the technology is finding use cases in several other areas as well, including financial services, retail, trading, legal, healthcare, and pretty much any business that involves record keeping.
  • 7. The Tectonic Shift in Blockchain • Source: Estimates of a future potential of Blockchain applications - https://www.spaceotechnologies.com/future-blockchain-development-trends/
  • 8. Reasons why Blockchain will be a major disruptive technology
  • 9. The evolution of Blockchain The first application of blockchain is money. For the first time it is possible for two parties to transfer money directly to each other: secure, worldwide and without third-party intervention. The blockchain transfers ownership and records the transaction.. This blockchain generation facilitates crowd ownership: shared property on a small scale with control for the owners via voting and distribution of profits via dividends. This fits perfectly in the current trends of crowd funding and the sharing economy. In addition to money and assets, agreements can also be registered on the blockchain. Such a digital contract enforces the participants to keep their promise. The capabilities of blockchain contracts are unprecedented.
  • 10. • SOURCE: Deloitte Analysis of GH Torrent Data and Github API data as of October 2017 The growth of Blockchain Projects in GitHub The core code supporting Bitcoin was published in April 2009. Since then, the number of projects on GitHub related to blockchain has grown significantly, averaging more than 8,600 new projects a year. In 2016 alone, there were almost 27,000 new projects Of particular significance, some projects that organizations have developed have resulted in new platforms (such as Ethereum, Ripple, Corda, and Quorum) which some developers now use to build applications.
  • 11. History of Open Source
  • 13. How the current system works
  • 14. What can be the possible solution?
  • 15. Distributed System attempts to solve the problem
  • 16. Blockchain vs Traditional Databases Blockchain has a strong use case where disintermediation and robustness have higher priority over confidentiality and performance. This case is however being balanced out in recent implementations.
  • 17. Blockchain vs Distributed Ledgers People often equate Blockchain solutions with Distributed Ledger Technology (DLT). Interestingly that is not the case in point. Highlighted below are the main differences between the two.
  • 18. Components and types of Blockchain
  • 19. Four major components of the Blockchain Ecosystem • Source: Text and Image credits - http://blockchainlabs.bsebti.com/components.html/
  • 20. Properties required for a Blockchain
  • 23. Federated or Consortium of Blockchain
  • 25. Public vs Private Blockchain – Part 1 A lot of people and organizations have tried to classifying blockchains, but there is no consensus on how to accurately distinguish between different types of Blockchains. A selection of different classification schemes is listed below from our frame of identity. • Source: Chris Skinner’s Blog - https://thefinanser.com/
  • 26. • Source-1: Adapted and Modified from- https://www.slideshare.net/DiegoDiaz49/1-ibm • Source-2: Image credits from- https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/ Public vs Private Blockchain – Part 2
  • 28. Blockchain Implementation Solutions There is a wide array of approaches to implementing Blockchain or other Distributed Ledger Technologies. A diverse landscape of players has emerged, including software service providers that offer software capabilities on higher stack levels than the blockchain protocols themselves. Each approach has its own merits and challenges. • Source - Image credits from- http://www.coindesk.com/which-blockchain-implementations/
  • 29. Implementing Blockchain Solution – Part-1 • Source - Text and research details - https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/
  • 30. Implementing Blockchain Solution – Part-2 • Source - Text and research details - https://blockchainhub.net/blockchains-and-distributed-ledger-technologies-in-general/
  • 31. Comparison of the most popular platforms in use
  • 32. Why choose Ethereum? There are currently two main blockchain platforms: bitcoin and Ethereum. Most applications are built on one of the two. There are other less popular blockchains, and some companies create their own proprietary blockchains. Bitcoin isn't a good choice to build an application upon. It was designed for money transactions and nothing else. The best platform to get started on in the current market scenario is “Ethereum”. While the above mentioned blockchains are public, which means all users and applications share the entire ledger, other blockchains such as Corda & Hyperledger, provide private, permissioned blockchains for a limited and defined number of users. These are more useful in industrial and niche sectors where a limited number of parties take part. There are numerous reasons to consider Ethereum” for building and testing out blockchain applications. Key highlights among them are :- • Ethereum is a completely decentralized platform with a Shared Global infrastructure. • Has the ability to incorporate Smart Contracts. In fact Ethereum pioneered smart contracts , DAO and ICOs. • Ethereum has a very active developer network and community and applications built on Ethereum will run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. • Ethereum has started the “Ethereum Enterprise Alliance” to connects Fortune 500 enterprises, startups, academics, and technology vendors with Ethereum subject matter experts.
  • 33. Ethereum Enterprise Alliance The Enterprise Ethereum Alliance connects Fortune 500 enterprises, start-ups, academics, and technology vendors with Ethereum subject matter experts. Companies can build upon the only smart contract supporting blockchain currently running in real- world production – Ethereum – to define enterprise-grade software capable of handling the most complex, highly demanding applications at the speed of business. • Source- https://entethalliance.org/ • Members - https://entethalliance.org/members/
  • 34. Ethereum & Hyperledger Technical Architecture Angular 4 / REACT / HTML 5 Node js Offline DB Infrastructure / AWS Cloud Server Mist Browser Decentralized Application Virtual Machine EVM Content Storage Swarm Comm. Protocol Whisper Chain Code service Membership Service (MSP) Configurable Consensus DLP Distributed Ledger Presentation Layer Service Layer Communication API Account Management Blockchain Platforms Ethereum Blockchain Platform Hyperledger Blockchain Platform Infrastructure
  • 35. Typical Aspects of Dapp (Decentralized Application) Development • Source - http://blockchainers.org/index.php/2016/05/09/ethereum-development-tools-an-evaluation-matrix/
  • 36. Tools needed to get started on Ethereum Development Program name Usage Ethereum Wallet / Mist wallet / Metamask Front end Dapp to test application. Metamask is a browser plugin for Chrome & Firefox. Geth for Windows Ethereum client written in Go Lang. Node js & npm Needed for developing backend coding logic. Atom / VS Code Code Editors for Solidity, Go, HTML, Angular. Truffle, Test RPC Installed directly from command line in geth. Python / Go Language Used in developing core ETH App. Git Bash (Optional) Used as an optional Terminal to windows cmd. All the software's mentioned below are open source and fall under the GNU License Category. Ethereum is compactible with both Windows and Ubuntu OS; however Hyperledger works only on Linux (Ubuntu 16.4 LTS to be specific as of date). For Hyperledger in addition to the below given software's we would need Virtual box to host a local Linux environment and a tool like Docker CE for containerization.
  • 37. Blockchain use cases in FinTech
  • 38. Use Cases – A brief overview There are 8 major use cases of blockchain in Fintech sector Significantly reduce risk and prevent fraud • > Everledger, IBM Blockchain, Auxesis, VeChain Digital Identification (KYC, AML, CDD) • > BankChain, SecureKey , ShoCard, Microsoft, GetXS, Selfkey Smart Contracts for automatic contract enforcement. • > Ethereum, NEO, Rchain, attores, Sofocle Technologies, Agrello Simplifying Cross border payments using faster clearing & settlements. • > Ripplenet, Mastercard , Clear, Stellar, IBM, R3 Corda, SWIFT, Primechain-P5, EzyRemit A whole new type of Trading Platform • > SETL+Deloitte, Nasdaq Linq, Coinbase, Binance, Biitrex, Cateina Technologies Simplifying Payments (P2P transfer) • > Bitcoin, Litecoin, Dash, Ethereum, Everex, Monero, Verge The rise of Smart Assets • > Hyperledger, NEM, DigixGlobal , Modex, BANKEX , Ethos, KrypC Technologies, Accubits Technologies Inc Loyalty & Rewards Program • > Loyyal, Blockpoint, BitReward, ELEMENTS, RewardsToken, LoyalGarden
  • 39. Challenges in adoption While blockchain technology would become a huge cost saver for banks in the years to come, challenges for its adoption need to be addressed before they become a fully-integrated part of the financial services industry. • The biggest hurdle is to make it easy for developers to built on top of Blockchain technology. We're talking about a nascent technology here and it may take over 2-3 years more until standardization is achieved. • Blockchain technology in its current form is very difficult to use. The user must know how public/private keys work, then go through dozens of steps to actually get a transaction done in cryptocurrency. • Currently only public chains guarantee the properties that make Blockchains different from standard databases. Namely immutability and resistance to collusion thanks to consensus at scale. Unfortunately, said public chains have severe drawbacks in terms of both privacy and scalability. • The balance to achieve between scalability, privacy, and P2P settlement (Decentralization) is still a work in progress. • The innovation in blockchain tech is happening fast, and is outpacing regulators’ ability to keep up. Regulatory hurdles will remain and enterprises need to work within the regulatory framework which currently lacks understanding & knowledge. • There is an absence of “control” in decentralized projects like Bitcoin and Ethereum. So by design they have no management structures and this is a little outside of comfort zone for enterprises as they don’t have clarity about the future track, and how they can control it. • Integrating with traditional/legacy banking software remains a challenge. • Integration of different Blockchain platforms is also a challenge. • The user interaction needs to be much better than it is currently. • Higher initial costs involved in software / hardware / training. • Shortage of trained resources with the know how. • Energy Consumption needs to be reduced by better algorithms. • Public perception must change towards cryptocurrencies for mainstream adoption.
  • 41. The next steps to the future • Working on building POCs in Ethereum and checking integration with existing applications. • Keep a regular check on the market events in blockchain. Since the tech is extremely new, the landscape is rapidly evolving and new entrants and platforms are coming in quicker than most people can anticipate. Continually try and experiment with upcoming platforms to best understand the emerging platforms. • The community is now growing at an exponential pace and involvement in the same would be beneficial to the future. Attend seminars, summits and conferences on Blockchain around the globe and get involved with the people working in the background on this tech. • Hire a small but dedicated team of people or move interested people into R&D on Blockchain to build up on future capability. There will be a severe resource crunch when the technology goes mainstream.

Editor's Notes

  1. Bitcoin is a form of digital money that was created in 2009 by an unknown person. As a decentralised virtual currency, the system is peer-to-peer and transactions take place between users directly, without the need for banks or transaction fees.* These payments are verified by network nodes and recorded in a public distributed ledger called the "block chain", which uses bitcoin as its unit of account. Although these records are public, the names of buyers and sellers are completely anonymous; only their wallet IDs are revealed. International payments are easy and cheap, since bitcoins are not tied to any specific country and are mostly unregulated. New bitcoins are created as a reward for payment processing work in which users offer their computer processing power to verify and record payments into the public ledger. This activity is known as "mining" and miners are rewarded with transaction fees and newly created bitcoins. Besides being obtained by mining, bitcoins can be exchanged for other currencies, products, and services. Bitcoin became the first cryptocurrency – and by far the most well-known – but various others were introduced in subsequent years. These were frequently referred to as altcoins; a blend of bitcoin alternative. The underlying block chain technology of these virtual currencies grew in popularity. Money was just one of their many possible applications. They could be programmed to represent units of energy, shares in a company, election votes, digital certificates of ownership, or whatever properties its users wished to assign. The open, transparent and flexible nature of cryptocurrencies helped to reduce bureaucracy, made administrative processes faster and more efficient and enabled the automation of many systems.
  2. A blockchain can be described as a share, secure ledger of records, that are arranged in batches called blocks. These blocks exist as a continuously-growing list, and cannot be altered. Each block references and identifies the previous block, thus creating an unbroken chain. In simple terms, think of a database that automatically updates itself whenever a change is made. And this database is distributed over a network of individual systems called nodes. Each node maintains a copy of the block. Hence in case of updating, retrieving or validating any data, all of its past records could be obtained easily.
  3. In 2015, the number of merchants accepting bitcoin for products and services passed 100,000. Block chain was described as "one of the most powerful innovations in finance in 500 years" by the Wall Street Journal, with many banks predicting it could revolutionise their operations.* A tipping point for government use of the technology occurs by 2023, with large-scale adoption by businesses and the public by 2027.* Around 10% of the world's gross domestic product (GDP) is stored on a block chain by this time, compared to just 0.025% in 2015. The supply growth is 25 bitcoins per block in 2016 (approximately every ten minutes), then afterwards 12.5 bitcoins per block for four years until the next halving. This halving continues until 2110–40, when 21 million bitcoins have been issued.*
  4. The growth in the number of projects has been matched by the rapid growth of content produced to develop these blockchain technologies. In analyzing blockchain repositories and their content, we noticed that increasingly more organizations appear to be getting involved. In 2010, organizations developed less than 1 percent of all projects. By 2017, their blockchain projects accounted for 11 percent (organizations currently account for 7 percent of total—not just blockchain—software development on GitHub). Recent data about the rate at which commercial organizations can find success with blockchain initiatives through open source seems promising; some high-profile, large commercial entities are already doing so. When a project is copied, all of the content becomes available to the account that copied the project, thus working as a de facto knowledge-transfer mechanism. This process is commonly referred to as a citation network where projects that are most often copied occupy a more central role in the network of projects, which we refer to as project centrality. Under this rubric, some of the most central projects have been developed and maintained by organizations: Bitcoin core, the C++ and Go implementation of Ethereum, Python clients for Ethereum, and the Bitcoin Improvements Proposal. Initial projects of Ethereum and Bitcoin are maintained by organizations (foundations), and that a vast amount of blockchain projects and applications in GitHub are actually built on top of these two projects. In short, organization-led projects are the backbone code for thousands of other projects. Out of the 20 most central projects in the blockchain space measured by popularity, citation, and collaboration,18 were created and maintained by organizations.
  5. 1. While sharing software code in a public forum can be traced to the 1950s, open-source platforms have only become hubs for software development within the last 30 years 2. The Internet was a great enabler for scaling: Earlier, open-source activity had been mainly the realm of academia, but the Internet made it accessible to aficionados and experts of all stripes, amateur and professional, individual and commercial 3. That said, there was a dip in relevance of software development on open source for a period when commercial entities that secured licenses and patents placed high fences around software code. 4. However, disruptive innovation has fostered an ever-increasing sharing economy, which has shifted important software development back to open-source platforms 5. Open source could be the ideal petri dish for attracting a critical mass of blockchain coding efforts, talent, and overlapping objectives that accelerate an ecosystem with common standards. 6. It may also mitigate the cost that firms would pay to dedicate resources to a still largely experimental technology. Developing proofs of concept in an “intranet” blockchain learning platform does not seem as efficient as learning how to develop business solutions on an “Internet” blockchain. 7. At the current evolutionary stage of blockchain technology, it is likely to be in a developer’s best interest to develop, or watch the development of, blockchain solutions on open source. Blockchain appears to have a better chance to more quickly achieve rigorous protocols and standardization through open-source collaboration, which could make developing permissioned blockchains easier and better.
  6. Ethereum’s technology is still in a nascent stage and will have to overcome several roadblocks – technical and regulatory – before it becomes fully functional for business dealings. Alliances such as the Enterprise Ethereum Alliance are important groupings of industry players that will help smooth ethereum’s road to widespread adoption. Experts have come together to learn and build upon the Ethereum protocol to define enterprise grade software, utilizing Blockchain technology. Given the maturity and multi-purpose design of Ethereum, the alliance is on a mission to bring privacy, scalability,security, and performance improvements to build the Ethereum Blockchain as the primary solution for Enterprise adoption on a mass scale. The Enterprise Ethereum Alliance will only get stronger as more enterprises follow suit, and ultimately improve on the current deficiencies of the Ethereum platform. For those that experience Fear, Uncertainty, and Doubt (FUD) in Blockchain technology, The Alliance should reaffirm your stance that Ethereum is the true creme de la creme as a platform for Enterprise use.
  7. The EEA, which was launched in February 2017, was established to bring privacy, scalability and security to the development of Ether and the whole Ethereum Blockchain. Since February, the alliance has grown to 200 members, making it the largest open-source Blockchain initiative. Its member list includes founding members JPMorgan and Santander, newer members like Mastercard, Intel and Microsoft, and a number of Ether investors and Blockchain startups. Despite the obvious utility of ethereum’s blockchain to multiple sectors, industry adoption has been slow. In a recent CNBC interview, ethereum co-founder Joseph Lubin said the attitude of businesses to blockchains was similar to their response to the Internet during the mid-1990s.  The Enterprise Ethereum Alliance (EEA) has appointed Ron Resnick, the former president and chairman of the Airfuel Alliance, as the first executive director, according to a Jan. 17 press release.Resnick also served as the President and Chairman of the WiMAX Forum, working with Intel’s Broadband Wireless Business on the launch of one of the first 4G broadband modems. To be sure, ethereum already has a non-profit foundation responsible for further development on its platform. According to its website, the Ethereum Foundation will build a more “globally accessible, more free and more trustworthy Internet.” That is an admirable goal. But accessibility and trust requires the presence of a diverse ecosystem of consumer businesses and data formats on the new Internet. The Ethereum Enterprise Alliance is headlined by stalwart companies from the finance and technology industries. In an earlier interview, Chris Larsen, co-founder of Ripple – another cryptocurrency that targets the finance industry – said the rails on which the financial industry was built are not broken, but needed to be upgraded for an era of hyper-connectivity. To that end, the alliance is focused on collaborating and changing those rails. 
  8. Source: https://www2.deloitte.com/nl/nl/pages/financial-services/articles/5-blockchain-use-cases-in-financial-services.html https://www.finyear.com/The-five-major-use-cases-for-financial-blockchains_a35655.html https://blockchainapac.fintecnet.com/uploads/2/4/3/8/24384857/fintech_blockchain_report_v3.pdf https://www.ft.com/content/615b3bd8-97a9-11e7-a652-cde3f882dd7b https://www.accenture.com/hu-en/insight-blockchain-technology-how-banks-building-real-time Different news items relating to the use cases shown above: https://feedzai.com/blog/nasdaq-uses-blockchain-based-technology-to-reduce-risk-and-prevent-fraud/ https://www.coindesk.com/hands-on-with-linq-nasdaqs-private-markets-blockchain-project/ https://cointelegraph.com/news/blockchain-digital-identification-in-canada-coming-in-2018 https://www.nasdaq.com/article/how-blockchain-is-being-used-to-solve-crossborder-payments-problems-cm864095 https://www.theinvestorspodcast.com/blog/cross-border-payments-blockchain-ripplenet-adopted-major-banks/ https://www2.deloitte.com/uk/en/pages/financial-services/articles/investing-in-blockchain-technology-with-SETL.html https://bankex.com/en/ https://nem.io/technology/ https://www.loyalgarden.co/en/index.html https://cryptovest.com/news/bitrewards-takes-a-new-approach-to-loyalty-programs-using-blockchain-technology/ https://www2.deloitte.com/us/en/pages/financial-services/articles/making-blockchain-real-customer-loyalty-rewards-programs.html https://inc42.com/features/watchlist-indian-blockchain-startups/ https://www.investopedia.com/news/top-blockchain-startups-watch-2018/
  9. Source: https://hbr.org/2017/01/the-truth-about-blockchain https://bankinnovation.net/2017/05/4-challenges-to-blockchain-adoption-from-fidelity-ceo/ https://www.nasdaq.com/article/five-challenges-blockchain-technology-must-overcome-before-mainstream-adoption-cm899472 https://cointelegraph.com/news/major-challenges-to-blockchain-mainstream-adoption-industry-view