The Future of Financial Infrastructure

1. The Future of Financial Infrastructure
Tech On Tap 2017
Tony Vernall
REUTERS / Firstname Lastname

2. 2 Tech On Tap Blockchain
Whats in store
What’s the problem we are trying to solve ?
How big is the problem ?
Characteristics of a DLT (Blockchain)
How can Distribute Ledger technology (Blockchain) help ?
What sort of cost savings might be realised ?
What are the main hurdles to over come for a Financial services DLT fabric ?
DLT contenders for the financial markets.
Ecosystem.
Summary

3. 3 Tech On Tap Blockchain
What’s the problem we are trying to solve ?

4. 4 Tech On Tap Blockchain
How big is the Problem and why all this reconciliation
Lets have a quick movie to get a feeling for the scale of things
https://youtu.be/WhI72CFrqEk
Why don’t Banks don’t trust each other ?
Graphic

5. 5 Tech On Tap Blockchain
Characteristics of a DLT (Blockchain) Trust in the Network

6. 6 Tech On Tap Blockchain
How can Distribute Ledger technology (Blockchain) help solve this dilemma
DLT technology provides the ability to securely share agreed truths.

7. 7 Tech On Tap Blockchain
Business case Cost Saving
heat map of a study of the 8 largest Investment banks . Potential cost savings of $12 Billion a year.

8. 8 Tech On Tap Blockchain
What are the main hurdles to over come for a Financial services DLT fabric
How going private can solve these hurdles
Scalability-: sharded data and distributed work loads
(asynchronous paralysation)
Performance -: choice of consensus method much quicker,
ie appointed/trusted nodes
Privacy -: information only exchanged and seen by involved
parties.
Standards -: enabling Smart contract libraries to be
developed
As banking is heavily regulated, all participants are know (KYC).
There is no need for the expensive anonymity overhead or miner
incentivisation of a public blockchain, this allows less expensive
blockchain techniques to be used. To ensure securely shared
agreed truths.
Note-:Development of public Blockchain is still very much
needed, for a whole raft of C2B and M2M (IoT) use cases,micro
payments. Another challenge will be to get these many chains
that are spawned to interoperate :)
Scalability
Privacy
Performance
Standards
All these can be addressed in a Private Blockchain (DLT)

9. 9 Tech On Tap Blockchain
DLT contenders for the financial markets
Hyperledger (open source Project)
contributions trying to solve these issues
Fabric (IBM)-Everledger
Sawtooth Lake (Intel)
Corda (R3)
DAML (DAH)-JPM
Project Bletchley (Microsoft) -: Cryplets
Axion- DTTC
Cobolt – NEX-ICAP
Fabric (IBM)-: issuing transaction certs,
(Everledger, Wallmart)
Sawtooth Lake (Intel)-: (PoeT)
Corda (R3) -: Privacy, notaries (R3)
DAML(DAH)-: GSL (JPMorgan)
Project Bletchley (Microsoft) -: Cryplets
Axion -:DTCC
Coboltdl-:Citi
Others in the space doing interesting work
Ripple- cross boarder remittance for banks
Stellar- cross boarder remittance for the people
Setl- Payments
Clearmatic- next gen clearing
Dpactum- Clearing ETI
Interesting Institutional developmnets
SWIFT –Nostros on a blockchain.
CLS –Netting on a Blockchain
BOE CBDC (central Bank Digital currency)

10. 10 Tech On Tap Blockchain
Ecosystem

11. 11 Tech On Tap Blockchain
Summary
Financial infrastructure is log due a refresh. The perfect storm of technologies and
methodologies are coming together in DLT (aka blockchain technology) and will be the next
evolution of the financial industry.
Image credit Corda white paper

12. 12 Tech On Tap Blockchain
Questions

13. 13 Tech On Tap Blockchain
Blockchain-enabled vs. Central Database

14. 14 Tech On Tap Blockchain
References
Fabrics
Hyperledger
Corda(R3cev)
Fabric(IBM)
Sawtooth(Intel)
Digital Asset holdings
Project Bletchley (Azure)
Ethereum
Bitcoin
Stellar
Ripple
Setl
Useful resources
R3Cev
World Economic Forum
Coindesk
Cointelegraph
Richard Gendal Brown
Bits on blocks.
Chris Skinner
Blog sites & papers
Medium
Reddit
Princeton paper