This document proposes a blockchain-based model for the financial ecosystem that addresses scalability issues with existing blockchain solutions. It suggests that each entity maintains its own ledger rather than sharing a single global ledger. Transactions are executed through a peer-to-peer network between trusted gateways like banks, allowing for fast settlement, auditability, and no built-in currency while maintaining privacy and complying with regulations.

1. Blockchain based model for
financial ecosystem
(INFRA)
Pavel Kravchenko, PhD

2. Why FinTech is interested in
blockchain technology?
• fast settlement
• undeniability
• easy audit
• standard set of protocols
• open-source

3. Why Bitcoin/Ripple/Ethereum is
not an option?
• Poo scalability of a single ledger
• Low speed of transaction validation
• High trust to anonymous validators
• Absence of anonymity & KYC/AML
• Low privacy of trading positions
• Built-in coin is undesirable

4. 1) each entity has its own ledger(s)
2) there is no global shared ledger at all
3) there is no global consensus
4) no designated validators (gateway = validator)
5) consensus is reached only between parties that
involved in the transaction
6) no built-in coin!
Solution principles

5. Ledger structure
Customers keep ledgers on
their devices
Banks maintain copy of
customers’ ledgers

6. Ledger replication
Regulators share ledgers
with banks

7. Transaction execution

8. Transactions are distributed inside trusted
p2p network between gateways (banks).
Each bank decides whom to trust.

9. Offer creation

10. Exchange process

11. Handling of exceptions