1. Brief history
What is blockchain ?
Evolution of blockchain
Industry consortia and
ecosystem
Blockchain - Critical
Operational Improvements
Blockchain in FINTECH
Satheesh Kathamuthu
3. What is
Blockchain ?
A digital, chronologically
updated, distributed and
cryptographically sealed record,
of all data transfer activity
Ease the transfer of value
unexpected fruit of
cryptography
Built on top
Cryptography
Peer-to-peer networking
Game Theory
4. Evolution of blockchain
● "Blockchain 1.0" is currency - the deployment of cryptocurrencies in
applications related to cash such as currency transfer, remittance, and
digital payment systems.
● “Blockchain 2.0” is contracts - the whole slate of economic, market,
and financial applications using the blockchain that are more extensive
than simple cash transactions like stocks, bonds, futures, loans,
mortgages, titles, smart property, and smart contracts
● "Blockchain 3.0” is blockchain applications beyond currency,
finance, and markets, particularly in the areas of government, health,
science, literacy, culture, and art.
● Melanie Swan, IEET
5. Industry consortia and ecosystem
Hyperledger
R3CEV
Utility Settlement Coin (USC) 1
Ethereum
IBM Blockchain in Bluemix
Microsoft Azure BaaS
1 https://www.db.com/newsroom_news/2016/medien/utility-settlement-coin-concept-on-blockchain-gathers-pace-en-11661.htm
6. Blockchain – Critical
Ripple – cross border payments
Nasdaq is working on a blockchain-powered private market exchange
JP Morgan built permissioned DLT platform on Ethereum called
Quorum2
The Australian Securities Exchange (ASX) is developing a blockchain-
based post-trade solution to replace its current system1
R3 CORDA is in Developer preview
1 https://www.cryptocoinsnews.com/australian-stock-exchange-confirms-upcoming-blockchain-for-settlements/
2 https://www.jpmorgan.com/country/US/en/Quorum
7. Reconciliation - Operational improvements
Typical architecture of systems involved ● One trade often leads to entries in
multiple disparate systems.
● Lack of golden source of truth
● Presents a need for reconciliation
between systems to arrive at an
accepted/unified truth.
● In financial markets, it is estimated
distributed ledgers could cut $15bn -
$20bn from bank’s post-trade
processing costs by the year 20221
Image Source: ttps://jackgavigan.com/2014/04/14/disruptive-bank/
1 Santander InnoVentures, Oliver Wyman and Anthemis Group, “The
Fintech 2.0 Paper: rebooting financial services”
9. References
The FinTech 2.0 Paper - http://www.finextra.com/finextra-
downloads/newsdocs/The%20Fintech%202%200%20Paper.PDF
Bitcoin and Cryptocurrency Technologies
http://bitcoinbook.cs.princeton.edu/
Blockchain: Blueprint for a New Economy - Melanie Swan
Blockchain in Capital markets by McKinsey & Company
Embracing Disruption – Tapping the Potential of Distributed Ledgers to
Improve the Post-Trade Landscape by DTCC