The Power and Possibilities of Blockchain in the Enterprise Sector - - PowerPoint PPT Presentation

The Power and Possibilities of Blockchain in the Enterprise Sector

12 February 2018

Niki Ariyasinghe – R3, Director, Partnerships APAC

Topics for Today

• R3’s journey with Blockchain
• The Corda Platform
• Key Use Cases

p2.

R3’s Journey with Blockchain

R3 is an enterprise blockchain company backed by a consortium. We are leveraging our blockchain (Corda) to build the next generation of financial services infrastructure

The New Operating System for Global Finance

4

What began as an exploratory exercise by a small group of investment banks, has developed into a world wide connected consortium spanning finance, banking, insurance, and payments

R3 has a fast growing team with

• ffices in:
• New York
• London
• Seoul
• Singapore
• Switzerland
• Sydney
• Taipei
• Tokyo
• Washington DC

With 160+ R3 professionals combined with the DLT teams from

• ver 80+ members

resulting in an unparalleled team of

• ver 2000 people across

22 countries dedicated to DLT collaboration

Our Global Reach

R3 Members R3 Investors (Tranche 1 and 2) R3 Board Members

p6.

>20 Regulator Members:

• Hong Kong

Monetary Authority

• Securities and

Futures Commission

• f Hong Kong
• AMF (Montreal)
• Illinois Department
• f Financial and

Professional Regulation (IDFPR)

• Abu Dhabi Global

Market (ADGM)

• Bank of Thailand
• Monetary Authority
• f Singapore
• + Additional

Regulators whose participation is currently confidential

The R3 Network: Focused Exclusively on DLT Solutions for Financial Services

The R3 Member Consortium – 80+ Member Institutions Globally & Growing Tranche 1 & 2 Investors – 44 Strategic Shareholders World Class Investor Board Members

Distributed Ledgers: I Know That What I See Is What You See…

R3 Lab & Research Centre - Confidential.

Before the Internet Now After Distributed Ledgers

R3’s Vision for Industry-Wide Collaboration is at the Core of our Value Thesis

Insurance Reinsurance Industry Organizations Asset Managers Exchanges Clearing Houses Banks Sovereign Wealth Regulators Technology Companies Not-for-Profits Central Banks Startup Community Academic Institutions

Why Collaborate?

Effective design, build and adoption

• f DLT require collaboration. DLT

hinges on the network effect to realise its full potential.

How Do We Collaborate?

▪ LRC Projects ▪ Conferences ▪ Workshops ▪ Working Groups

1400 Wiki Contributors

If you print the wiki, you can stack it to the moon and back

100+ Proof of Concepts

Each with ~3-8 members involved

11 Thematic Working Groups

Producing profound, collaborative research

>500 People, From 150+

• rganisations

At Corda conferences

250 Regulatory Interactions

With dedicated and experienced reg.

• utreach team

Collaboration is key

Distributed ledger technology is transformative, but not a panacea

p9. R3 Lab & Research Centre - confidential.

Key Focus Areas

Roadmaps to focus efforts and align solutions to the DLT future state of financial markets

p10.

Digital Assets Trade Finance Digital Cash Insurance Digital Identity

>100 Projects

This year we are rapidly progressing towards production solutions

2018 – The year of Production 2017 – The year of the Pilot 2016 – The year of the POC 2015 – The year of Hype

p11.

The Corda Platform

Meet Corda

The open Blockchain platform for digital cash, assets and trade. Designed for business, built for privacy

p13.

Immutability Smart Contracts Consistent Shared Facts on Ledger Consensus over uniqueness Records are stored in a cryptographic manner that assures lineage and tamper evidence. Shared facts are agreed upon by a variety of consensus mechanisms. Business Logic is encapsulated and executes in a deterministic, tamper evident manner. Records of shared facts including financial agreements are consistent across entities.

Corda, Blockchain Characteristics

Corda Retains all the key characteristics of a Blockchain system

Ledger Smart contract Ledger Smart contract

Corda is a point-to-point system - a fundamental architectural difference to

• ther systems.

Only Corda enables transaction privacy with transactions only shared with parties of the transaction.

Point-to-Point, Privacy

Consensus Service (Notary)

Consensus as a service

Corda separates the trust mechanism from the node allowing a pluggable consensus service which we call a notary. Consensus algorithms can be chosen at the transaction level, not the Blockchain level.

Business Networks

Private Business Networks

Only Corda can enable a global network of interoperable nodes while still supporting private business networks. One node can participate in many networks. The networks can set policies and enforce membership creating permissioned networks inside an interoperable network.

Coming Soon: R3 Corda & Corda Connect

p18.

R3 hosted services to enable the rapid formation of secure, high performance networks.

Network

Mission critical grade distributed ledger for enterprise deployments.

Mission Critical

Open source platform available free to any

• rganization and any

industry.

Open source DLT Platform

Open Enterprise

Connect

Connect

Network Service Providers Delivery Partners (Systems Integrators & Advisory) Infrastructure / Technology Partners Partner Solutions (Independent Software Vendors)

Corda – Built in partnership

p19.

Key Use Cases

Project Ubin

Accelerator – Digital Cash

To put the Singaporean dollar on a distributed ledger for the first time, building a prototype domestic payments for inter-bank obligations (backed by central bank deposits), a DLT platform and internal capability for MAS/market participants in Singapore

Vision Objectives Benefits

Network of Participants Digital Singaporean Dollar Prototype for interbank domestic payments - Prototype

R3 - Private and Confidential p21.

The eventual goal is to developing simpler to use and more efficient alternatives to today’s systems based on digital central bank issued tokens.

• Improved domestic securities transactions, offering Delivery-

vs-Payment (DvP) settlement in cases where it is not already available

• Significantly improved cross-border payments (Payment-vs-

Payment) and securities transactions (DvP)

Project HQLAX

Accelerator – Digital Assets

Vision Objectives Benefits

Tokenisation of baskets of securities to distribute liquidity more efficiently - Pilot

A collateral lending solution for sourcing or providing High Quality Liquid Assets (HQLA) on R3’s Corda To build an exchange that improves HQLA upgrade / downgrades by utilizing distributed ledger technology for the tokenization of baskets of securities that allows for quick, legal transfer of HQLA and re- hypothecation

Network of Participants

• Enables market participants to source or provide HQLA more

efficiently

• Improves transparency
• More cost effective than current tri-party repo options

R3 - Private and Confidential p22.

One example of the direction of DLT in financial services…

p23.

’ATOMIC’ TRANSACTIONS: TRUE DvP T+0 SETTLEMENT (AS APPROPRIATE) REDUCED NEED FOR COLLATERAL REDUCED SYSTEMIC RISK CASH ON LEDGER BONDS ON LEDGER OTHER FINANCIAL ASSETS ON LEDGER DERIVATIVES ON LEDGER

Solve for Interoperability Identity Scalability Privacy Upgradability

Focus Areas

p24.

Digital Assets Trade Finance Digital Cash Insurance Digital Identity

Beyond Financial Services

• Supply

Chain

• Oil & Gas
• Healthcare
• Retail
• Etc…

Thank you

www.corda.net www.r3.com/partner niki.ariyasinghe@r3.com