CWIN17 India / Blockchain - purushottam khandebharad

Blockchain
Purushottam Khandebharad,
Pune, September 27th
#CWIN17

Blockchain | 27 Sept 2017
Copyright © 2017 Capgemini and Sogeti. All rights reserved. 2
Table of Contents
 Blockchain Hype
 Blockchain Ecosystem
 Blockchain Types
 Platforms
 Blockchain Capabilities and Focus
 Blockchain Service Offerings
 Community Partnerships
 Blockchain Team: CoE Pune
 Blockchain Hackathon
 Use Cases and Proof of Concepts
 Ongoing Projects

Gartner Emerging Technology Hype Cycle July 2016

Blockchain Ecosystem
Startups
Financial Institutions
Consortia
Regulatory
Institutions and
Government
Technology Companies and
Service Providers
The blockchain ecosystem encompasses large corporations – such as financial institutions, and technology companies, service providers, consortia, start-ups,
regulatory institutions and government

Types of Distributed Ledgers

Blockchain Platforms
Consortia Overview Members Platform Pros Cons
Fabric- Open source global
collaboration hosted by the
Linux Foundation including
leaders in finance, banking,
IoT, supply chains,
manufacturing and tech
140+
Hyperledger
Fabric 1.0
one of the most mature consortia. Multiple
projects hosted in Hyperledger. R3 Corda
is also a co-participant
None worthy of note at this time
Corda-General purpose
platform and technology to
design and deliver advanced
distributed ledger technologies
to the global financial markets
100+ Corda 0.14
Remains one of the more mature and
widely adopted consortia with a
Syndicated Lending Pilot that continues to
gain momentum
The Corda platform is largely focused on
point-to-point communications and is not
solely focused – nor requires – an
underpinning Blockchain framework,
which has raised concern warranting
better clarification from R3
Global cross-industry
collaboration dedicated to
developing Ethereum into an
enterprise grade Blockchain
150+ Ethereum
Likely to affect technology improvements
across known Ethereum challenges to
enable wider Financial Services adoption
Anchored in JP Morgan’s flagship
Blockchain platform, Quorum, which could
hinder other firms’ competitive potential
Other Platforms

Blockchain Capabilities and Focus
Blockchain
Research and
Analysis
POC Building
(8 Concepts)
Partner with
leading
Blockchain
Start-ups
Participate in
leading Open
Source
initiatives
Capgemini released a
Viewpoint on “Smart
Contracts” (2016)
Capgemini offers a
unique setting for POC
elaboration (Loyalty
Point, KYC, Trade
Finance)
Capgemini collaborates with
the leading Blockchain
initiatives(Hyperledger,
Corda, Symbiont etc…)
Capgemini is
expanding its team of
Blockchain experts to
200 people by Q4
2017
Capgemini participates in
leading open source
development for
Blockchain (Hyperledger,
Corda)
Team of
Blockchain
Experts
accelerates BC
Development

Blockchain Service Offerings
Business Case
Assessment
1
Build Proof of
Value (PoV)
2
Strategic&
Functional • Evaluate use cases
• Identify potential benefits
to Corporate client and
respective correspondent
banks
• Produce current / future
state gaps and define
future state requirements
• Design Target Operating
Model
• Develop Go-To-Market
strategy
• Develop plan for Pilot
• Verify & Validate PoV
• Define integration
requirements for Pilot
• Develop High Level
governance mechanism for
Target Operating Model
• Develop a high level plan
for industry adoption
• Verify and validate Pilot
with external entities
Pilot
3
Technological
• Build vs Buy analysis
• Vendor & technology
partner analysis
• High Level Architecture
and platform
recommendations,
including Build vs Buy
options
• Design, develop and test
User Interfaces, APIs and
end to end functionality
• Identify integration points
for the Pilot
• Develop the architecture for
Pilot
• Create identities for
external entities and
develop authentication and
authorization mechanism
• Design, develop and test
integration with banks
• Develop user interfaces for
external bank interaction
A
B
4-8 weeks 6-8 weeks 6-8 weeks
PMO

Community Partnerships
Our Partnership Agreements Our Connection with Startups

Blockchain Team: CoE Pune
• Partnership
with Startups
• Dedicated technology practice for Blockchain
• Group of 5 Architects and 45 Developers with
average 12 man months experience in Blockchain
• Blockchain industry trained trainers
• 50 resources involved in the active development
• 4 POC developed on multiple platforms including
Hyperledger and Corda
• In-house white paper
published on Blockchain
platforms
• Technology blogger
community
• In-house Blockchain
trainings #1000
• SMEs for domain analysis
• POC / Pilot development
• FinTech SMEs guidance on aligning Blockchain solutions
• Alliance with major global banks and investment houses
• Domain Competency groups on Banking and Finance and Payments
• Development lifecycle maturity on Agile and other lifecycles
• Automation of the development cycle thru automated process, tools and technologies
• DevOps end to end lifecycle management setups with Capgemini specific IPs for customer ODCs
Technology Competency • Independent Research and Analysis groups
Development Experience
Blockchain Community
Presence and Alliances
Competency Building
Domain Expertise on
disruptive business models
Development lifecycle
Maturity
• Open Source
Initiative
participation
• Active
Engagement
with Linux
Foundation
• Resources transformation on
Blockchain
• Resources availability and
ability to ramp up skillful
resource on Blockchain
• Expertise on
o Hyperledger
o Corda
o Docker & Cloud
deployments
POCs
• KYC
• Trade Finance
• Loyalty points

Blockchain Team
Blockchain Hackathon – Pune 2017
Training Workshops
5-Days comprehensive hands-on training on
Hyperledger provided by ADM Training and
IBM team to all participants
3000 Hours of Training and
Hands-on lab sessions
delivered on niche emerging
skills
Level 1 – Technical Assessment
Technical competency assessment of all
participants. Successful participants
qualify for Hackathon Finale
Level 2 – Hackathon Code
Challenge
Code challenges with 3 business scenarios in
to solve in 1.5 Days
1200 Participants across ADM
and other practices up-skilled
during Hackathon week
100 Finalists (10 Architects, 20 UI
Developers & 70 Developers) across
20 teams selected for Hackathon
Finale through Technical Assessments
4 solutions - Blockchain published
4+ proposals
+1000
+100
+15

Our Initial Blockchain Use Cases and Proof of Concepts include:
Loyalty - Tokens
Private Securities
Syndicated Loans
Connected Bank – Ripple
Integration
PSD2 Integration
Fiat Relay
Records Management
Financial Services
Non-Financial Services
KYC
Business Identity and
Authorizations
Supply Chain
Trade Finance
Development Platforms

Ongoing Projects
Project Use case Protocol Description
Cash without borders
(CWB)
Payments Internal payment solution enabled by Blockchain
DTC
(Digital Trade Chain)
Trade Finance Trade Finance platform for Banks Consortiums
KYC
Know your Customer
and identity
KYC as a service platform. Co-design with large banks & customers

Thank You!
Phone: +91 9922701020
Purushottam.khandebharad@capgemini.com
Purushottam K.
Blockchain Architect
Speaker 1
Photo

www.capgemini.com
The information contained in this presentation is proprietary.
Copyright © 2017 Capgemini and Sogeti. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.sogeti.com
About Capgemini and Sogeti
With more than 180,000 people in over 40 countries, Capgemini is one of With more
than 190,000 people in over 40 countries, Capgemini is one of the world's foremost
providers of consulting, technology and outsourcing services. The Group reported
2016 global revenues of EUR 12.5 billion. Together with its clients, Capgemini
creates and delivers business, technology and digital solutions that fit their needs,
enabling them to achieve innovation and competitiveness. A deeply multicultural
organization, Capgemini has developed its own way of working, the Collaborative
Business Experience™, and draws on Rightshore®, its worldwide delivery model.
Sogeti is a leading provider of technology and software testing, specializing in
Application, Infrastructure and Engineering Services. Sogeti offers cutting-edge
solutions around Testing, Business Intelligence & Analytics, Mobile, Cloud and
Cyber Security. Sogeti brings together more than 23,000 professionals in 15
countries and has a strong local presence in over 100 locations in Europe, USA
and India. Sogeti is a wholly-owned subsidiary of Cap Gemini S.A., listed on the
Paris Stock Exchange.

Appendix

Blockchain Benefits
Reduce Cost
- Removes cost of intermediaries
- Smart contracts reduce manual processing,
re-work and processing errors
Increase Revenue
- New Products and Services
$
Reduce Risk
- No single point of failure or attack
- Non-repudiability reduces risk of fraud
- Immutability and provenance preserves audit
trail
Increase Speed and Customer
Satisfaction
- Allows T+0 settlement
- Simplifies supply chain removing
intermediaries
- Guarantees supply chain provenance
Potential savings projected by a leading insurer with
implementing a Catastrophe Bond on a blockchain.75 %
$20B Blockchain technologies could reduce banks'
infrastructural costs by $15-20bn a year by 2022.
$10B
$10B
360o A leading insurer is looking to implement a KYC
solution to build a 360o Customer view on a blockchain.
2M
0 Several trading houses are looking to leverage
blockchain technologies to allow T+0 trade settlements.
UBS donated blockchain-based trading platform to
be used to raise $10B selling social impact bonds.
Grammy nominated artist Imogen Heap launched
her single ‘Tiny Human’ on a blockchain based
platform Ujo Music to her 2M Twitter followers.
Global spend on Anti-Money Laundering compliance
alone is estimated at $10B.

Financial Services Landscape: Recent Trends
Regulatory Focus
is Increasing
• Both the SEC and CFTC have formally announced more active participation and call to action with current DLT pilots
• State of Delaware has launched DBI (“Delaware Blockchain Initiative”) and initial work focused on reworking current legal framework to
support “digital shares on a blockchain.” Over 60% of Fortune 500 firms are incorporated within the Delaware jurisdiction
• R3 consortia has recently launched “RegNet” and announcements are pending as to which global regulators will be participating along
with the state of Illinois, which joined as first public sector entrant
Partnerships and
Consortia are
Increasing
• Consortiums (e.g., R3) and trade associations (e.g., Digital Chamber of Commerce) are developing standard use case language and also
engaging with federal and state governments
• Utility Settlement Coin Initiative: Deutsche Bank, Santander and BNY Mellon, in addition to inter-dealer broker Icap, announced a
partnership with Clearmatics, to work on what is known as a Utility Settlement Coin (USC) to streamline settlement payments for the
OTC market. This initiative is occurring outside of larger consortia (R3, Hyperledger) and plans to publish actual implementation dates.
• JPM Chase has launched Quorum, as part of the wider “Enterprise Ethereum” consortia which includes BONY, Santander, Monax,
Microsoft, Consensys, among others
• R3 has engaged Thomson Reuters to better incorporate the buy side, as interest from this core stakeholder group has rapidly increased in
the last quarter
Big Tech is
Taking a Larger
Role
• Major Tech players are beginning to roll out cloud-based infrastructure and Blockchain As a Service (“BaaS”) platforms that will
enable the implementation of holistic DLT integration strategies
• Microsoft debuted Project Bletchley in mid 2016, as one many tech firms and startups bringing blockchain technology to market. Microsoft
also unveiled a trade finance pilot at the Sibos conference in 2016.
• IBM BlueMix Blockchain as a Service debuted in February 2016 with “Fabric” as its core blockchain platform.
• In May, Amazon Web Services said it would partner with NYC-based Digital Currency Group to provide blockchain as a service
• Google has also joined with RBS using Google Cloud services to test blockchain-based settlement applications
Use Cases are
Expanding
• Firms are bringing viable blockchain use cases from concept to reality via “proof of value” execution and rapid prototyping
• Insurance and re-insurance providers have seen the greatest surge of interest due to potential IoT integration and key means to minimize
fraud while optimizing processing
• Increased interest from interest from buy side clients to determine long term transformation strategy and opportunities using DLT
(primarily around post-trade / back office automation and asset servicing / management functional use cases)

Financial Services Transformation – Where DLT Can Help
Rapid, potential for Near Real Time Settlement (Next Generation STP): payments and other
money movements and other servicing events (e.g. corporate actions)
Improved Risk Management: market/delivery/counterparty/liquidity– near real-time view of all
exposure and ability for “smart contract” to react to various market events.
Improve post-trade transparency: single, immutable ledger to aggregate multi-dimensional
views of common reference and transaction data
Simplified Reconciliation /Increased automation: for illiquid/manually intensive markets,
resulting in lower cost, higher efficiency on top of a single, immutable data framework. More
automation = greater visibility to firms’ liquidity/ capital / credit position.
Improved capital efficiency: Reduced settlement cycles coupled with multi-party and multi-leg
interaction over single conduit provides real time management of capital reserves
Improved derivative clearing: through tokens or “smart contracts”– ability to embed custom
attributes (meta-data); aggregate risk view across asset types enabling margin and collateral
optimization
New Market & Service Offering (Utility) Opportunities: Standardizing transaction framework
facilitates entry into new markets or deployment of new services, traditionally rooted in “Tech
Giant” firms.
Deleverage Balance Sheet /
Manage Risk
Cross Asset Class
Standardization
Enhanced Interoperability
(Smart Contracts)
Industry Objectives Benefits Unique to DLT
Transparency / Single
Source of Truth Audit Trail
Capital & Liquidity
Management

Leading FS Use Cases: Current State Challenges vs Target State Benefits
Use case Current State Challenges Target State Benefits
Back Office
Automation
(Clearance &
Settlement
including Cash
Management )
Clearing, Settlement & back office processes
(Collateral management/optimization and margining)
have multiple manual intervention points across
discordant systems, even with central clearing houses..
• Auto-executable Smart Contracts anchored in a distributed
ledger automate processing steps between all value chain
participants to expedite clearance / settlement through
the Cash Settlement leg (true settlement finality)
• Fosters data standardization across asset classes to
automate and centralize rote back office functions
(e.g.s risk calculations and reference data dissemination
across service providers, intermediaries, CSDs.
Custodians and counterparties to achieve near real time
settlement
Asset
Management &
Servicing
Event harmonization required across a myriad of data
stores across issuers, market venues,
custodians/CSDs, originators, investors. E.g. Corporate
Actions processing remains a highly manual process
with no single source of truth.
• Auto-executable Smart Contracts anchored in a distributed
ledger automate multi-party servicing functions to establish
comprehensive, immutable event audit trail and single
source of truth
• New capabilities such as real-time inventory discovery and
securitization via a virtual asset pooling.
Derivatives
(including
Bespoke,
Bilaterally traded
(Structured)
Products)
With multiple components and linkages to various cash
in/out flows and reference instruments, the structuring,
booking, offering and exiting of complex derivatives and
other structured products positions remains highly
manual, non-standardized, with limited transparency to
facilitate deleveraging or unwind
• Auto-executable Smart Contracts anchored in a
distributed ledger not only automate processing steps
between all value chain participants to expedite clearance
/ settlement but can embed countless structured meta
data attributes to drive market linkages, payout structures
and all facets of a complex derivative or other structured
products to create a more transparent, automate
market structure.

DRAFT
Strategic Positioning Functional Capabilities
Med
Adequately funded and is operating a wider
industry working group
Med
Their Bankchain platform is proprietary and largely
focused on post-trade optimization though wider,
cross asset class backend processing support via a
their embedded messaging has some scale.
High
Open Source codebase anchored on the Ethereum
platform and core participant in the “Enterprise
Ethereum” initiative
Med
Known scale issues around the Ethereum platform
that the “Enterprise Ethereum” initiative is planning
to address in order to tailor the original Ethereum for
wider Financial Services adoption
High
Well funded and significant partnerships,
especially in the lending landscape. Most mature
service offering in terms of syndicated
commercial lending and insurance
High
Proprietary platform with open SDK that supports
native assembly chain as well as “any or multi”
chain support. One of the most mature smart
contract libraries on the “street”
High
IBM Fabric platform is open source (Ethereum
based) and is anchored in the Hyperledger
consortia
Med
Known scale issues around the Ethereum platform
that the “Enterprise Ethereum” that continue to be
addressed and coupling with IBM Bluemix cloud
service offers myriad development support and
rapid prototyping tools
High
Well funded and has launched large scale
projects with Visa and Nasdaq
High
Close competitor with Symbiont and DAH, their
proprietary ChainCore platform can be “chain
neutral” and latest smart contract code base has
been vastly improved
High
Well funded and has launched large scale
projects with CME
High
Most diverse features to enable backward
compatibility / legacy integration and only vendor
with robust data management / integration
capabilities
High
Well funded with largest partnership base
including DTC and Goldman Sachs; prominent Med
Pending NDA and formal agreement, little
Vendor Shortlist and Comparisons
The below vendors have been shortlisted due to their focus on Financial Services and maturity of overall service offerings.

Implementation Considerations – Cloud Provider Comparison
Commentary
Maturity
How mature are the provider’s blockchain
offerings?
High Med High Low
Microsoft and IBM were the first to release
BaaS offerings
Key Partnerships
Does the provider have heavyweight
partnerships?
High Low High Low
Microsoft and IBM have the greater
concentration in enterprise Financial Services,
while AWS and Google are adopting a broader
approach
Tools
Does the provider have rapid prototyping
tools? Are support functions provided?
High Med High Med
Microsoft and IBM have rapid prototyping tools
available and are embracing distributed ledger
technology as an accelerator to building a truly
integrated and secure transactional framework
Add on Capabilities
Does the provider have smart contract or
application capabilities?
High Med High Low
Microsoft is building smart contract support
across all Windows Desktop scripting engines.
IBM Bluemix continues to deploy rapid
prototyping tools
Security
End-to-end security offerings should include
broad support for various encryption schema,
HSM, etc.
High Med High Med
IBM Bluemix and MSFT Azure both claim end-
to-end support for various ID, Key and HSM
supports to both enhance and strengthen
interoperability between enterprise functions
Front Office
What is the provider’s footprint within front
office use cases?
High Low Med Low Microsoft has a large front office footprint
Back Office
What is the provider’s footprint within back
office use cases?
Med Low High Low
IBM has a large back office presence, both
within Financial Services and large scale
Corporates
Consortia Footprint
Has the provider been selected by industry
consortia?
High Low High Low
R3 Corda has selected Microsoft as their
preferred vendor, while the Hyperledger
Project uses IBM BlueMix
Engagement Model
How does the vendor engage with clients? High Low Med Low
Microsoft Azure is rigorously competing with
IBM Bluemix by targeting the midrange clients,
while IBM continues to leverage their large
scale enterprise relationships

Bankchain Is the Future of Settlement
Bankchain enables:
● Peer-to-peer settlement certainty
● Shorter settlement and DvP
● Direct settlement network
● Streamlined middle and back
office operations
● Complete and accurate
recording of transactions
Bankchain:
● OS for settlement
● Platform as a Service
● Flexible
● User-driven
● Plug and play
● Fully hosted nodes

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Appendix

CWIN17 India / Blockchain - purushottam khandebharad

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