Use Cases of Blockchain

Anshul Gupta

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 Blockchain Core Concepts

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What Is a Blockchain? A "Distributed Ledger"
 A ledger records transactions
Distributed Ledger of Bitcoin Transactions (Tx)
 Sequence of transaction
"Genesis Block Block Block Block
records, grouped in blocks,
Block" of Tx of Tx of Tx of Tx never ending, chronologically
ordered chain
 Trust achieved by massive
Ledger Replicated Across Peer-to-Peer Network
replication across network
Node
Node  Protocol for "shared truth" or
Node network consensus is "mining"
Node
Node
Node  Optional programmatic behavior
Node Node attached to transactions
("smart contracts")

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Permissioned vs. Permissionless Blockchain

 Permissionless:  Permissioned:
– Consensus without centralized – Know your customer (KYC)
authority (proof of work via mining) (proof of stake)
– Anyone can perform validation – Validating nodes are predefined and
function trust implied throughout the network
– No prior relationship with ledger – Participants are known ahead of
required (pseudonymous or time (validated prior to usage with
anonymous) legal identities)

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Blockchain Technology — Let Me Count the Ways!
Blockchain Permissioned or Permissionless Underlying Blockchain Currency or Process Validation
Bitcoin Permissionless Bitcoin Bitcoin PoW

Ethereum Permissionless Enhanced Bitcoin Smart Contracts (Ether) PoW/POS

Eris Industries Permissioned Tendermint Smart Contracts PoV (Validators)

Codius Permissioned via Oracles Enhanced Bitcoin Smart Contracts

Everledger Permissionless Enhanced Bitcoin Provenance Tracking PoW

Counterparty Permissionless Bitcoin XCP PoW

Clearing House Permissionless Bitcoin Viacoin PoW

BitHalo/BlackHalo Permissioned/Multisignature Bitcoin, BlackCoin and BitBay Smart Contracts PoW/POS

Nxt Permissionless Proprietary Nxt POS

Peercoin Wallet, Not Ledger Enhanced Bitcoin PPC POS/PoW

Ripple Permissioned/Permissionless Built on Codius XRP PoW

R3 Permissioned Corda

IBM Hyperledger Permissioned/Permissionless Hyperledger Multiple Altcoins PoW

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Blockchain Offers Unique Benefits
Digital asset creation

Payment tokens

Distributed ledger of records

Immutability of records

Traceability of records

Consensus mechanisms

Smart contracts

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Blockchain Innovation Already Underway

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 Blockchain Use Cases

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There Are Four Types of Blockchain Initiatives

Blockchain Digital Asset Efficiency Record

Disruptor Market Play Keeper

New New markets Efficiency Records

businesses based on digital improvements management by
that rely on a assets formed in transactions, one entity, for
blockchain from nondigital interactions and self or for a
foundation. ones (physical tracking community.
Business and virtual). provenance
model may of assets.
not be new.

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Four Types of Blockchain Initiatives and How They Differ

Blockchain Digital Asset Efficiency Record

Disruptor Market Play Keeper

Revenue Growth Cost Savings

New Business Models Current Business Models

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 Your Situation and Strategy Can Lead to Different Choices

Blockchain Digital Asset Efficiency Record

Disruptor Market Play Keeper
Media Company
Media Rights Platform for Trading
Management Advertisement Contracts

Central Government
Carbon Credits
Voting Records
Trading

Multinational Bank
Clearing and
Digital Asset for Gold KYC/AML
Settlement

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Answer Five Key Questions First

Where will this be implemented?

When?

Who all have skin in the game?

Who?

What is the scope of the work?

What?

Why is blockchain the best option?

Why?

Whether this project is needed at all?

Whether?

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Blockchain Use cases Are Biases Towards Institutional
Banking & Securities
• Securities Trading &
• Trade Finance
Settlement

• Remittances &
• Reference Data
International Money
Management
Transfer

• KYC & AML • Internal Payments

• Loyalty & Rewards • Insurance

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Blockchain Activity Is Seen In Most Industries

Investment
Government Banking Insurance
Services

Media & Healthcare & Sharing

Supply Chain
Entertainment Pharma Economy

Client Internet of
Agriculture Utilities
Auditing Things

Retail & E- Disruptive Precious

Education
commerce Start-ups Metals

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Blockchain use cases
 Securities  Retail Banking
– Suspicious user alert system
– Post-trade settlement
– Cross border remittances
– Derivative contracts – Mortgage verification
– Securities issuance – Mortgage contracts (smart contract)
– Intercompany payment
– Collateral management
– Digital wallets
– Asset allocation
– KYC
 Trade Finance  Public Records

– Bill of Lading – Real estate records

– Vehicle registrations
– Cross-currency payment
– Business license and ownership records
 Syndicated Loans – New notarization process
 Intra-bank settlement – Identity management

 IP protection for entertainment content

14
and distribution
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Blockchain use cases
 Payments  Government

– Peer to Peer transactions – Voting

– Cross border money transfer – Property registration

 Insurance – Improve transparency and accuracy in

record keeping
– Theft reduction
 Utility
 Healthcare
– Smart metering
– Healthcare data record keeping
– New prepaid payment mechanism

 Education

– Authenticate certificates

– Certificate issuance

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 Follow the money!

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