5. Currently…
Digital Transactions are
• Inefficient
• Vulnerable
• Costly
Too often transactions performed on a centralized
ledger systems are slowed by things such as letters
of credit, auditing, etc.
7. The Problem?
• Networks operated with multiple private ledgers
prevent each party involved from fully trusting one
another
• This is why we see things such as letters of credit,
banks, auditors, etc. These documents are designed to
do what the centralized ledgers cannot. Foster trust
• Since each party's maintains their own private ledger
it is far more costly and time consuming to audit each.
also, if a discrepancy is found in one ledger the entire
system becomes derailed
8. Where can it Help?
“The cost of remitting money averages
8.4% globally, driven in large part by
the legacy brick-and-mortar
distribution networks and multibank
settlement claims of the incumbents.”
-Tech Crunch
“We have no way of knowing how much
slave or child labor, environmental
destruction, and violence and political
turmoil goes into the production of any
of our products, not to mention the actual
monetary costs.”
-ConsenSys
“If you sell stock, the money for your
shares should be in your brokerage
firm on the third business day after
the trade date.”
-Zachs
“The length of an escrow is determined by
the terms of the Purchase Contract and can
range from a few days to several months.
The average length of an escrow is usually
30 to 45 days.”
-The Fratantoni Group
9. The Blockchain’s decentralized ledger technology relies
on three things for success
How it will Help
Consensus:
A majority of
computers must
agree on a
transactions
authenticity
Smart Contracts:
Self-executing
digital contracts
that prevent fraud
Cryptography:
Encrypted
transactions
utilizing public
And
private keys
11. How is it different?
Centralized Ledger System
• Bookkeeping is controlled by
one party and closed to the
public
• As a result, trusted third
parties are hired to facilitate
transactions
• Retrieving private information
can be done by hacking just
one ledger
Decentralized Ledger System
• Bookkeeping is controlled by
thousands of parties and
open to the public
• Since all information is public
and verified by each
computer in the system,
trusted third parties are not
required
• Hacking this system would
require a simultaneous hack
of each computer
12. So What?
“Spending on capital markets applications
of blockchain is expected to grow at a
52% compound annual growth rate
(CAGR) through 2019, according to Aite
Group, to reach $400 million that year.”
-BI Intelligence
“The knowledge of and likelihood to
react to the developments in blockchain
technology are relatively low. We believe
that lack of understanding of the
technology and its potential for
disruption poses significant risks to the
existing profit pools and business
models.”
-Global FinTech Report
“Spending on capital markets applications
of blockchain is expected to grow at a 52%
compound annual growth rate (CAGR)
through 2019, according to Aite Group, to
reach $400 million that year. “
-The Blockchain Report
“Putting blockchain to use for real-world
transactions is likely not that far off. If
working groups' tests are successful, firms
could be using it to transact real value as
early as the end of this year and we could
see widespread industry application within
the next few years.”
-The Blockchain Report
17. Seizing the Opportunity
Two Singaporean government agencies
(EDB) and (MSA) have partnered with
IBM to bring a blockchain innovation
center to Singapore
• Goal is to house 5,000+ blockchain
engineers under the same roof
• Port of Singapore (PSA) and
Infocomm Development Authority
of Singapore (iDA) have also
partnered with IBM to help bring
this center to fruition
18. IBM has continued to take the lead on blockchain
innovation in Singapore by partnering with the Linux
Foundation
Their shared ambition is to further the progress of the
Hyperledger Project
The project aspires to create a suitable blockchain
platform for business. IBM’s current blockchain products
and services run on the Hyperledger
20. Crypto-Assets
• Digix claims that there are two main issues with
crypto-currencies
• Volatility in value of crypto-currencies
• Centralized storing
• Eliminates these problems by developing digital tokens
that are backed by gold
• Value of tokens is consistent since gold’s value is
stable
• Gold is stored in a secure vault in Singapore
• Tokens can be traded on the blockchain P2P with no
intermediary
• Goods
• Services
• Other digital assets
21. The Blockchain’s primary function was to serve as the
facilitator in P2P cryptocurrency transactions
• i.e. Bitcoin
Remittances
Toast and CoinPip are companies that are leveraging
blockchain to send tangible currency internationally
• Eliminates dependence on trusted third parties
• Secured with public/private key encryption
• Free of charge remittances
22. • DX Markets helps companies incorporate blockchain
into their business model
• Real-time payments and settlements
• Liquidity for digital assets
• Smart contracts assist with self executing trades,
coupon payments, margin calls, etc.
Financial Services
Work with all blockchain platforms
24. Trade Finance
• The IDA has teamed up with Bank of America Merrill Lynch
and HSBC to test blockchain applications for global B2B
transactions
“The firms have designed a proof of concept, using
technology from the Hyperledger Project, that could take
the place of letters of credit — the time-consuming and
paper-heavy instruments used by importers and exporters
to secure cross-border transactions, according to Reuters.”
-BI Intelligence
25. Trade Finance
The Port of Singapore has recognized the opportunity and
has put efforts forward to bring blockchain software to the
mainstream
• Eliminates costs associated with Trusted Third Parties
• Saving time/money
“We will work with IBM and other partners, as well as through our new
incubator program PSA unboXed, to explore the development and use of
blockchain technology for trade, finance, and logistics.”
- Said Tan Chong, CEO PSA
26. Trade Finance
Along with eliminating the dependence on trusted third
parties which trade finance relies on, blockchain companies are
attempting to revolutionize supply chain tracking
Everledger is a company that specializes in exactly that. Their
objective is to restore provenance to supply chains
• Digitize tangible assets with crypto-currency technology
• Implement smart contracts
• Combating theft and fraud
27. Financial Services
Singaporean startups incorporating blockchain have
focused heavily on financial services
On August 3rd, the United Overseas Bank (UOB) held
their first accelerator program to promote FinTech
solutions that utilize smart contracts
“Many believe that Singapore is the perfect location to become a
leading Smart nation. Countless may see this as the case with the
launch of its accelerator program and the opening of its first Centre for
Blockchain Innovation (IBM).”
-CNN.LA
28. Financial Services
Ubitequity is the first startup to utilize the blockchain
cryptocurrency software to perform a real estate
transfer of ownership
• Eliminates fees related to escrow ~1-2%
• Public/private keys
Nathan Wosnack, CEO of Ubitequity sees opportunities
for Blockchain that extends to all tangible assets
“Our long-term goal is to digitize titles to all assets (in this case real estate)
and provide an immutable record of clear ownership in perpetuity, powered
by the Bitcoin blockchain.”
-Nathan Wosnack, CEO
29. Internet of Things (IoT)
• Smart Contracts have the
power to turn any appliance
connected to the internet into
a smart appliance
• They operate on “if, then”
statements
30. “Imagine a washer that autonomously contacts suppliers and places
orders when it’s low on detergent, performs self-service and
maintenance, downloads new washing programs from outside sources,
schedules its cycles to take advantage of electricity prices and
negotiates with peer devices to optimize its environment.”
-TechCrunch
Internet of Things (IoT)
“Imagine a vending machine that can not only monitor and report its
own stock, but can solicit bids from distributors and pay for the delivery
of new items automatically -- based, of course, on the purchase history
of its customers.”
-Postscapes
“Imagine a car insurance that is embedded in the car itself and changes
the premium paid based on the driving habits of the owner. The car
contract could also contact the nearest garages that have a contract
with the insurance company in the event of an accident or a request for
towing.”
-Global FinTech Report
31. The World Economic Forum divides Blockchain’s
applications into six different categories
