Slideware to support my blockchain / distributed ledger talk at FaceTime Kortrijk 2018. This event with over 600 visitors hosted talks from Peter Hinssen, Jonathan Berte (Robovision) and myself about emerging technologies.

1. Koen Vingerhoets – @IthronKoen on

2. • Master in Law (2000, UA)
• Experienced in IT (I dream in code)
• KBC since 2011 (Lean coach, Cultural Change, Insurance)
• Blockchain since 2014, officially since 2016
• Gadgets
• Garamond font
• Lord of the Rings
• Intelligence
• Humor
• Garlic
• Books from Thea Beckman
• Inefficiency
• Lists
• Irony
7) Inconsistency

3. 3
Blockchain, not bitcoin
Preliminary remarks
• Bitcoin is “A”, not “THE” blockchain;
• My focus is on Blockchain, not bitcoin;
• No 10 minutes wait / transaction;
• No crazy electricity use;
• Anonymous as far as needed;
• No cryptocurrency needed;
• I don’t know which crypto you should buy;
Explaining blockchain without mentioning bitcoin is impossible.

4. On the menu
A lesson from history : ledgers
A really short blockchain introduction
Slightly longer blockchain explanation
Blockchain in practice
Closing thoughts

5. 5
VOC – Hollands Gouden Eeuw
VOC & De Groote Compagnie
• Verenigde Oost-Indische Compagnie : the
world’s first joint-stock limited liability
company with freely transferable shares (1602)
• Owners were registered in a ledger, every
transfer was signed by “De Heeren XVII”
• The shareholders partipicated in the profit.
• Groote Compagnie organized trades (1609)
• “Naked short sales” : promise to sell shares in
the future at a predefined price
At the dawn of the financial world… human nature surfaces already.

6. 6
VOC – Hollands Gouden Eeuw
When the trusted third party turns out to be not so trustworthy…
De Groote Compagnie
• Barent Lampe, head accountant VOC
• Hans Bouwer, trader
Heeren XVII

7. On the menu
A lesson from history : ledgers
A really short blockchain introduction
Slightly longer blockchain explanation
Blockchain in practice
Closing thoughts

8. 2008 – “Satoshi Nakamoto” writes…

9. Bitcoin = unique transfer of value

10. Blockchain persists all the unique transfers

11. How the technology behind bitcoin could change the world

12. The truth in tempore non suspecto

13. On the menu
A lesson from history : ledgers
A really short blockchain introduction
Slightly longer blockchain explanation
Blockchain in practice
Closing thoughts

15. Understanding distributed ledgers Nomen est omen : blockchain
A transaction is
- Declaration of an incident
- Pictures of the accident
- Signed contract
- A proof of payment
- An offer from car repair
- Steps in the RDR wizard
- …

16. vs
1. Every hash is unique
2. Infinitly reproducable
3. One way traffic
Understanding distributed ledgers Encryption vs hashing
When you know a
hash is NOT unique

18. Understanding distributed ledgers Encryption vs hashing

19. Understanding distributed ledgers Encryption vs hashing

20. Understanding distributed ledgers Encryption vs hashing

22. Blockchain : a business definition
The blockchain is, from a business point of view,
 A shared platform
 On which parties who don’t know or trust each other
 Are able to collaborate with respect for privacy
 Without relying on a possibly corrupt administrator.

23. 23
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts

24. Transparency: public <> private and permissionless <> permissioned
Public
Private
BTC 1984
? KBC
Permissionless Permissioned

25. 25
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts

26. Nicki -> KoenIN 0,8 BTC
Wim -> KoenIN 0,6 BTC
Koen -> ThomasOUT 1 BTC
Wim -> KoenREST 0,4 BTC
Koen receives two payments
- 0,8 BTC from Nicki
- 0,6 BTC from Wim
Koen transfers 1 BTC to Thomas
- 0,8 BTC + 0,2 BTC
- 0,4 BTC is unspent transaction
• (A defined number of) assets are stored
on the blockchain
• Each asset is identified
• Assets are divided
• Assets are transferred (not copied)
=> Clear view on who owns what when.
Ownership : how value is stored

27. 27
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts

28. Traceability : the sequence is the defence

29. 29
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts

30. Trusted party &
Single point of failure
Distributed : (de)centralized & distributed
One central point of
authority

31. 31
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts

32. Trust : consensus as a service
BTC : 7trx/s
0,24% power

33. 33
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts

34. 34
Smart contracts
Not smart, not a contract… but it’s code and it runs on the blockchain.
Definition
A smart contract is an agreement whose
execution is both automated and enforceable.
• The actual “transaction” among parties is
expressed through and independently
executed by computer code, no party can
block it or otherwise tamper with.
• It constitutes legally binding rights and
obligations of the involved parties.

35. 35
Smart contracts
Just code, a workflow or an entire contract? Is code law or not?
What could it be now?

36. 36
Our approach : 6 key elements
Combined and used with other parties, they create a single shared source of truth.
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
In collaboration with others, Blockchain is…
… the single shared source of truth.

37. On the menu
A lesson from history : ledgers
A really short blockchain introduction
Slightly longer blockchain explanation
Blockchain in practice
Closing thoughts

38. 38
VOC – Hollands Gouden Eeuw
How would blockchain improve this?
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
In collaboration with others, Blockchain is…
… the single shared source of truth.

39. KBC Trade Finance| we.trade

40. we.trade : the purpose
40
A marketplace
where SMEs can easily trade
with more trust

41. Internal
41
Our History
Blockchain brought us together in
2017
• Built a consortium out of 9 banks
across Europe
• Designed a solution benefiting our
members and our clients
• Established a Joint Venture
around a cutting-edge technology
• Developed a concept to allow
other banks to participate
• Put in place an effective
governance

42. Internal
42
Issues in International Open Trade
A Catch 22 – The risk of advanced payment and shipment
Trust Financing
Today, access of companies to international
trade is limited and involves high risk
This hampers expansion and puts a cap on
international trade
Companies face a trade-off between bearing the risk,
purchasing complex/expensive coverage or turning
down business opportunities

43. Internal
43
How it works
Buyer initiates purchase order with 60 days payment terms1
Buyer requests bank to provide Bank Payment
Undertaking (BPU)
2
Supplier ships order and sends invoice through the
platform
3
Buyer confirms the receipt of goods4
Supplier asks his bank to provide invoice financing
arrangement for next 60 days (optional)
5
Buyer’s bank debits buyer account and initiates payment of
invoice on due date, either…
− to supplier’s bank, if invoice has been financed or
− to supplier’s account
6
6
2
1
4
3
5
Buyer Supplier
Buyer’s
bank
Supplier’s
bank
How we ensure trust in trade

44. Internal
44
Identification of unknown counterparts (all
clients on we.trade are KYC’d)
Invoice Financing: Additional working
capital without leveraging credit lines
Bank Payment Undertaking (BPU):
Counterparty risk transferred to bank
Track and trace for over 426 couriers
Event based automatic payment triggers
through smart contracts
Real time settlement enabled by one
platform for all parties
Key Benefits for Customers
A digital one stop shop accessible by all parties

45. Internal
Our Vision
45
A marketplace where companies can trade with more trust
we.trade is a trade platform that…
...allows corporate customers quick, easy
and paperless transactions for trade
finance
…automates fulfillment of end-to-end
settlement with full KYC
...that seamlessly connects the entire
trade ecosystem
Go beyond Europe
(2018+)
Expand & Reach Scale
(2018)
Brand launch
(Oct 2017)
Joint Venture formation
(End 2017)
Go Live
(Q1 2018)
we.trade
ecosystem
Banks
Insurers Logistics

46. Internal
But why blockchain?
The proof of the pudding…
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain is…
… the single shared source of truth.

47. On the menu
A lesson from history : ledgers
A really short blockchain introduction
Slightly longer blockchain explanation
Blockchain in practice
Closing thoughts

48. It’s not the Holy Grail
Blockchain will not solve everything:
• Organisational problems
• Slow processes or data quality issues
• Fraudulent purposes and lawsuits
• …
Some technical challenges remain:
• Scalability & # transactions per unit of time
• Network size
• Latency (Time until transaction confirmed)
• …
48
Blockchain is not always a solution.
Replacing a database with another seldom fixes an issue, blockchain supports a new approach.

49. Key challenges
• Blockchain strategy is about collaboration.
• Not just IT, involve business (risk appetite)
• Unpredictable regulator & Government.
• Financial signals (ROI) are problematic.
• Radical uncertainty is the norm.
50
Still in the fuzzy front end ?
Some critical challenges remain, on business side.

50. 51
Your IT will figure it out
Collaboration is a basic element of IT, not of the business
IT has collaboration in its DNA
• Open source projects
• Hackathons
• CoderDojo
• Mailings lists
• CodeProject, I dream in code,…
• Tech blogs
• …

51. 52
Business : closed workshops
Collaboration is a basic element of IT, not of the business
The challenge is on business side
• From EGOsystem to ECOsystem
• Knowledge Management is a job
• Competitive advantage
• Regulations
• Mindset

52. We
Do you sell trust & data?
Blockchain is trust & data.

53. 54
We believe
blockchain will be
the fabric of trust
in the business world
of tomorrow.

54. Koen.Vingerhoets@kbc.be
Twitter : @IthronKoen
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain is…
… the single shared source of truth.