BLOCKCHAIN - GL

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Enrich Perspective - BlockchainPallav KumarSenior Consultant26 September 2016...let us begin and create in idea a State; and yet a true creator is necessity, which is the mother of our invention.The Republic, Book II, 369c, Plato

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Enhance your perspective on Blockchain. What it is and why it matters, how it really can change the world.

In 2 word its all about transaction persistence

Radically change the way we do business worldwide lowering operational cost, more secure and more reliable

the CXOs of top enterprise giants are crazy about its potential.

Billions are invested it for exploration. From venture capitalist to conglomerates to governments, all are enthusiastic about it.

Blockchain is the technology of disruption impacting almost every domain, right from banking to healthcare to Music.

It's versatile enough to combine with distinct technologies like cloud, IOT

Overview Spectrum of De-CentralizationWHAT is itWHERE it is being usedWHEN should we use itHOW it worksWHY its crucialIn THE Next 2700 Seconds, well cover

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Overview

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As innovation accelerates, proponents are exhibiting its potential Focus has shifted towards leveraging it as a distributed ledger An enterprise eco-system needs an ascent to evolve up the value chain to enhance B2B relationships. A platform is required to build complicated & connected networkReduce cost Craft a comprehensive value creation

Bitcoin over shadowed the ingenuity of blockchain

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#L1 - Mostly, when you discuss about blockchain, you talk about bitcoin, which is just one implication of Blockchain. Blockchain is the is the underline technology behind bit coin. Basically bit coin overshadowed the image of blockchain.

L2- In one of the World economic forum Regarded as Beating Heart of the Global Financial Systemtop 10 emerging technologies that changes the world.

L3 - Distributed Ledger - Ledge is a like a account book or a db. .... a distributed db you can say Distributed across systems | Near Real Time processing | Immutable | Digitized

L3- B2B relationship, Enterprises need to invest their budgets in more fruitful effective way and need an evolution

L4 high caliber

Reduce Cost cost of trust, cost of third parties. Recent example- bank loan emi transfer from RBS to another, you need to pay costCraft tech. that aligns business strategy, financial strategy, and investor strategy. Bc is versatile enough to combine with others to add value

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Spectrum of De-Centralization

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#When we talk about distributed ledger. Distributed Spread across peers to form peer to peer n/w For this we need to share the infrastructure/resources b/w systems/enterprises/groups. Because for sharing there should be following protocols, so to how much extent the resources are shared is plotted on spectrum5

Sp e c t r u m o f ( d e ) c e n t r a l i z a t i o n

CentralizedDecentralizedHybridCentral party perform data & Transactions and have full controlNo Consensus mechanismOther parties just readCost EffectiveSingle point of failure

Permissioned LedgerControl is distributed across the groupConsensus mechanism relies on rulesMost suited for consortiumsPublic ledgerEvery one has access Copy of ledger is present on every nodeIncentive paid for consensusNo single point for failure

CentralizedHybridDecentralized

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# Centralized - One owner, no cons req, other parties only read what ever is written, as we need not to do have to maintain additional metadata infra cost is less, Dis Single point of failure

Hybrid do what ever they like to do based on set of protocols, like consortiums of banks. Like in Europe 7 banks created a leadgerCopy of ledger is present on every node, No single point for failure

Decentralized - Incentive6

WHAT

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#A specific type of distributed ledger database that maintains a continuously growing list of transaction records ordered & verified into blocks with various protections against tampering and revision through cryptographic security and network validation."timestamp server Replica of ledger exist on every node

BLOCKCHAINTechnicalAn open ended database that maintains an open distributed ledgerBusinessAn exchange network for moving value in between peers.LegalA transactional validation mechanism that does not require the assistance of an intermediary.


#All about transactions distributed ledger database the copy of this db is with every org./system/ who is part of network.

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CharacteristicsLedgerStore of immutable informationConsensusProtocol exists to reach agreementDistributedNo central authority

Nodes connected over network


#It is distributed,

Its has consensus to verify that what ever is persisted in correct

Its a Ledger can store immutable Transactions/Facts/Value

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ComponentsA continually updated, network hosted database of all transactions on a blockchain. Comprised of blocks of transactions (with metadata) chained together by cryptography

Programmed into each blockchain protocol, and responsible for verifying and updating transactions on the networks digital ledger; not necessary in private blockchains

The good transacted on a blockchain;

Any form of digital assetDigital Ledger

Consensus Mechanism

Digital Asset

Computing nodes with access to the blockchain, able to manipulate the ledger and view past transactions;

May be pre-approved or verified by a consensus mechanism

Holds a replicated copy of ledger

Network Participants


#DL DB has blocks with meta data i.e block has a header and content. Like a HTML message has header and body So header has metadata identity as unique block reference number, time the block is created and link back to the previous blockAnd content validated list of digital assets and instruction statements, such as transactions made, their amounts and addresses of parties to those transactions

CM - A method of authenticating and validating a value or transaction

DA- any digital asset currency/information like health record, birth certificate, adhar card, address, marksheets

Nodes

IMAGE is clear by now DLBC10

WHERE

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#Exponential growth - has inspired & fueled an entire ecosystem A broad range of innovators are creating solutions in different verticals This technology is amalgamation of

Technology Driven Business ModelBLOCKCHAINCryptographyImmutable transaction log/ledgersTransaction approval mechanismsDistributed databases Peer-to-peer software


#Business model is governed by technology This technology is adopted at exponential rate. Increased speed of exchangeReduce the number of intermediaries (and the costs associated with them)Improved securityDigitized assetsGive wider access to people Enable better bookkeeping, Improve regulatory compliance.

L2 Focused on fully unleashing its potential.

L3 Different permutation/combinations

next-generation business process improvement software that is reducing the cost of trust12

Capital Markets & securities servicingHedge Funds & Wealth ManagementArbitrage - Commodity/Forex TradingRetail/Wholesale Payments

Disrupting Verticals (Finance)


#Reshape the financial service business . Erratically effects BFSI segment Brings in immutability transparency autonomy

CM Blockchain is going to make the middle and back office operations fast and efficient. Transaction history is maintained, thus helping in doing the analytics, better analysis of stocks

W Blockchain is going to change the face of wealth mag Lots of Fees /third parties are involved reducing the cost form payment to settlement and custody fees

C Where the prices fluctuates in fraction of second. Arbitrage

P Time consuming in settlement, which is happen transaction happening in fraction seconds

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Legal(notarization)Supply ChainArt & MediaHealth CareCorporate Governance

Disrupting Verticals (Non-Finance)


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Apart from finance, it effects other domains as well likeStudent academic certificates , birth certificate , Couple registered its marriage retail supply chain and allows consumers to track its progress , import dutiesintellectual property, for photos, videos & audio recordingsDNA information accessible, digital record of person from birth till dateSince Immutable online voting, remittances

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WHEN

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#Shared repository with set of RulesMultiple non-trusted writersDis-intermediationTransaction interactionStrategic Investment .will start being used in production in the next few months & become mainstream in a few years


#Blockchain will have the greatest impact when applied to business problems involving a shared repository of information, multiple writers, minimal trust, the presence of intermediaries and interdependencies between transactions.

You

Protocols b/w nodes i.e.

Public consortiums or department of diff countries you may no aware off but part of network, is following rules

Remove the middle man or intermediary from future transactions. E.g you have dollars , you need rupee. Yu follow long prog

Acknowledge of transactions refer to bc

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HOW

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#Don Tapscott: How the blockchain works


#Pioneer 18

Process Flow


#WHY

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#Revolution - Changing the way we do businessTransfer value Securely & eliminates Cost of TrustRemove Intermediaries & eliminates Cost of TransferPropels Wealth creation

Global Disruption


#A lot of intermediaries are involved, third parties are present.21

Cost reduction Faster processes Standard creation Authentication and security Creation of new products and channels

Business Benefits Value creating prospects


#L1- The increased automation and reduction of manual processes.

L2-By removing third parties , delays are reduced. L3-Potential to create new protocols & norms, in coordination with regulators.

L4 - By its nature it is secure Each individual holds a unique key, composed of a private part (proof of ownership) to create new transactions, and a public part to verify transactions. If the owner of the transaction wishes to share the proof of ownership, they have to share the private key with other parties.

L5- Combo packs/ based on analytics opens new channels

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The transaction volume blockchain can handleHidden cost involvedManaging privacy and holding transparencyInteroperability as there are no standard protocolsRegulations

Risks


#Achieve readiness earlyHow products & services look like in a blockchain-enabled world Impact every arena exponentiallyExtinguishes information asymmetry Imagine the BLOCKCHAIN World


#Prepare now

Use cases

Every domain

Single point of reference24

Thank youPallav KumarSenior [email protected]+91-7838155540

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BLOCKCHAIN - GL