The document is a presentation that provides a dummy's guide to blockchain technology and how it applies to insurance. It begins with introductions and defines key concepts like blockchain protocols, bitcoin, and distributed ledgers. It then discusses potential uses of blockchain in areas like payments, asset management, identity verification, and smart contracts. It also considers when blockchain is best applied based on characteristics like immutability and decentralization. It suggests blockchain could be used in insurance for areas like claims processing and provides an overview of public versus private blockchain implementations before opening for questions.

1. Blockchain 101
A Dummy’s Guide to
Distributed Ledger
technology and how it
applies to insurance
Gary Nuttall
Distlytics Ltd
Feb 2016

2. Briefing Agenda
I Keep six honest serving-men:
(They taught me all I knew)
Their names are What and Where and When
And How and Why and Who.
I send them over land and sea,
I send them east and west;
But after they have worked for me,
I give them all a rest.
Rudyard Kipling – The Elephant’s Child

3. Introductions
You
Me
Who
Why
How
When
What
Where
Intro’s
Q & A

4. What is the Blockchain ?
Who
Why
How
When
What
Where
Intro’s
Q & A

5. What is the Blockchain ?
Protocol
Bitcoin vs Blockchain vs Distributed Ledger
Key Characteristics
Who
Why
How
When
What
Where
Intro’s
Q & A

6. What is the Blockchain ?
Protocol
Who
Why
How
When
What
Where
Intro’s
Q & A
“In information technology, a protocol is the special set of rules that end points
in a telecommunication connection use when they communicate. Protocols
specify interactions between the communicating entities” (TechTarget)
“How we do things” (Me)
A few protocols:
• TCP/IP – 1980 (Vinton Cerf and Robert Kahn)……..led to THE INTERNET
• HTTP – 1990 (Tim Berners-Lee)…….Enabled the WORLD WIDE WEB
• Bitcoin – 2008 (Satoshi Yakomoto, although it wasn’t called Blockchain)
…..We quickly forget the protocol but what they enable are transformational

7. What is the Blockchain ?
Bitcoin vs Blockchain
Who
Why
How
When
What
Where
Intro’s
Q & A
Bitcoin = Crypto-currency
“The” Blockchain = Public,
permissionless, distributed
ledger based on the Bitcoin
protocol

8. What is the Blockchain ?
Bitcoin vs Blockchain vs Distributed Ledger
Who
Why
How
When
What
Where
Intro’s
Q & A
Bitcoin = Crypto-currency
“The” Blockchain = Public,
permissionless, distributed
ledger based on the Bitcoin
protocol
“A” Blockchain is typically
based on the Bitcoin
protocol principle and takes
the form of a Mutually
Distributed Ledger.
Example protocols:
 Bitcoin
 Ethereum
 Hyperledger
 Ripple

9. What is the Blockchain ?
Bitcoin vs Blockchain vs Distributed Ledger
Who
Why
How
When
What
Where
Intro’s
Q & A
Summary……
 Bitcoin is a protocol that “The” Blockchain uses
 There are other Blockchains which use a Distributed Ledger approach BUT not all
Distributed Ledgers necessarily use a (or the) Blockchain.
Conclusion….
 This presentation uses, perhaps incorrectly, the terms Distributed Ledger and
Blockchain interchangeably.
 Similarly, we use terms such as “Internet” and “World Wide Web”
interchangeably (and don’t even talk about TCP/IP and HTTP!)
 Unless you’re a purist it doesn’t matter what ‘it’ is…it’s what it enables

10. What is the Blockchain ?
A Ledger
Who
Why
How
When
What
Where
Intro’s
Q & A

11. What is the Blockchain ?
A Ledger, held in blocks  maintaining lineage
Who
Why
How
When
What
Where
Intro’s
Q & A

12. What is the Blockchain ?
A Ledger, held in blocks  maintaining lineage
And is Distributed
Who
Why
How
When
What
Where
Intro’s
Q & A

13. What is the Blockchain ?
Key Characteristics
Who
Why
How
When
What
Where
Intro’s
Q & A
• Immutable / Persistent
• Distributed / Decentralised
• Timestamped & Audit friendly
• Cryptographic security
• Pseudo-Anonymous crypto-key based
• *** Smart Contracts ***

14. Where can Blockchain be used?
Existing Case Studies
Generic Use Cases
Who
Why
How
When
What
Where
Intro’s
Q & A

15. Where can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
Existing Use Cases

16. Where can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
Generic Use Cases
Value transfer
• Payments & Settlements
Asset Management
• Land Registry
• Diamonds
Removal of Trusted Third Party
• Conveyancing
• Banking (payments)
• Escrow
Accreditation
• KYC
• AML
• Professional Membership
Document Management
• Contracts
• Policies
• Electronic Signatures
Government Services
• UK GDS
• Local Government
Media
• Music
• Digital Images
Supply Chain
• Ethical Sourcing
• Consignment Tracking

17. Where can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
A few more….

18. Where can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
Insurance?

19. When can Blockchain be used?
Good targets
Not good ideas
Who
Why
How
When
What
Where
Intro’s
Q & A

20. When can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
A few things to be aware of……

21. When can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
Good targets….?
• Immutable / Persistent  Is a permanent, uneditable, record required?
• Distributed / Decentralised  Is there value in it being cyber-resistant?
• Timestamped & Audit friendly  Is auditing a significant overhead?
• Cryptographic security  Does the CPU cost outweigh trust issues?
• Pseudo-Anonymous crypto-key based  Is level of consensual sharing needed?
• *** Smart Contracts ***  Can a contract be represented programmatically?

22. When can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
Good Targets …..In Insurance….

23. When can Blockchain be used?
Who
Why
How
When
What
Where
Intro’s
Q & A
Good Targets …..In Insurance….In London?

24. How can Blockchain be used?
Public (Bitcoin)
Who
Why
How
When
What
Where
Intro’s
Q & A

25. How can Blockchain be used?
Private (Permissioned)
Who
Why
How
When
What
Where
Intro’s
Q & A

26. How can Blockchain be used?
Hybrid
Who
Why
How
When
What
Where
Intro’s
Q & A

27. Why use Blockchain?
Who
Why
How
When
What
Where
Intro’s
Q & A
• Immutable / Persistent
• Distributed / Decentralised
• Timestamped & Audit friendly
• Cryptographic security
• Pseudo-Anonymous crypto-key based
• *** Smart Contracts ***

28. Who will use Blockchain?
Who
Why
How
When
What
Where
Intro’s
Q & A

29. Who will use Blockchain?
Who
Why
How
When
What
Where
Intro’s
Q & A

30. Who will use Blockchain?
Who
Why
How
When
What
Where
Intro’s
Q & A

31. Who will use Blockchain?
YOU!
Who
Why
How
When
What
Where
Intro’s
Q & A

32. THANK YOU!
Q & A
USEFUL RESOURCES
www.distlytics.com
Gary Nuttall
EMAIL: GNUTTALL@DISTLYTICS.COM
TWITTER: @GPN01
LINKEDIN: https://uk.linkedin.com/in/garynuttall
Who
Why
How
When
What
Where
Intro’s
Q & A