Post on 06-Jan-2017
Overcoming the Barriersto Blockchain Adoption
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{ : }Agenda
Relevance of our partnership
The Promise of Blockchains
Challenges of Blockchain Adoption
MongoDB & BigChainDB
MongoDB Inc,
700+ employees 3000+ customers
Offices in London, NY & Palo Alto and across EMEA, and APAC World Class Advisory
How we drive value
Dramatically reduce TCO
Reduce Risk for mission critical
applications
Accelerate time to value
Use data and technology to gain
competitive advantage
We bring next generation platforms to life
Powering Single View use cases
Modernizing Mainframes and
increasing resilience
Enabling micro services,
a driver for transformation
NOW: The underpinning
for Blockchain
BlockchainMoves away
from the pack
Already at the peak of
hype
Why: The benefits are enormous “Numerous research reports put potential efficiency gains to financial services from blockchain at between $15bn and $20bn. Already today, using blockchain-based applications, companies could bring the cost of a cross-border transaction down from $25 to $1 or $2. This will drive adoption.”-Oliver Bussmann
– Bussmann Advisory and ex-Group CIO of UBSFT: Banks will not adopt blockchain fast
IBM: Leading the pack in blockchain banking
Strategy is already being defined
The Early Adopters
have already made
progress Raconteur: The Future of Blockchain in 8 Charts
You will be hearing from:
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{ : }Agenda
Relevance of our partnership
The Promise of Blockchains
Challenges of Blockchain Adoption
MongoDB & BigChainDB
The Promise of Blockchains
Simon Taylor – Director of Blockchain 11:FS
The Promise of Blockchains
A Framework for Understanding Blockchain
My Background at Barclays
• Started looking at Blockchain “side of desk” in early 2014
• Became officially full time October 2014
• Identified now over 60x use cases, completed 20 experiments and now moving into develop pilots
• Founder member of R3 consortium
• April 2016 became the first UK bank to offer accounts to Blockchain companies
• PoCs and Accelerator companies…
Why BlockchainFI’s Have Recognised the Potential of Blockchain…
• Met with over 300 Blockchain Companies
• SME’s have delivered live pilots, and over 60 PoCsfor Tier one Global Bank
• Highly networked with access to global networkof founders~
• Former Gartner Head of Digital Banking leading research tool build out
• 3 of the top 20 Global Fintech SME’s (rated by City AM)
• Advisors to Governments, Central Banks and Regulators globally
But are struggling to convert that into value creating product…
• DAH raised $60M
• R3 consortium 55 banks / exchanges / asset managers
• Visa / Nasdaq invest $30M in Chain.com
• CLS Announced first large scale project
• Total value of Blockchain investment exceeds $2bn
• Start-ups struggling with access and SME knowledge to impact Post Trade, Trade Finance, Identity and Provenance use cases
• Early Bitcoin companies closing or seeking funding outside the USA
• Second wave of Blockchain start-ups based on Ethereum (e.g. Clearmatics, Axoni) now progressing with banks behind closed doors
• Banking on Blockchain brings commercial and execution expertise to turn this potential into ARR for these start-ups
We have collated the insights to find value for banks…
And assembled the team that allows us to deliver value…
Blockchains without the Coin?• Recent discourse has evolved. There’s now an argument over what The Blockchain is. Is it the actual
code and network that supports Bitcoin?
• Bitcoin’s breakthrough was to have everyone share an entire copy of an entire ledger. The opposite of what banks do, but it introduced new problems
• Replicating all data to all nodes isn’t compatible with data privacy legislation banks need to adhere to, it also places uncomfortable amounts of control on core devs and mining conglomerates (consider there are 192 SWIFT members, vs 9 dominant miners)
• Richard Brown (R3) described a continuum in 2014 (pictured below) where there are a set of design choices and trade offs to be made depending on what you’re trying to achieve.
Traditional Financial Services
Centralised
Bitcoin
DecentralisedOpportunity Space
RippleStellar
EthereumCounterparty
Eris IndustriesBigchainDB
“Blockchain” – A Three Layer Model
There are a number of technologies all being called “Blockchain”
• In addition within each of these technology types, there are a number of approaches each with their own world view and terminology
• The diagram below attempts to simplify this by abstracting the broader concepts• The diagram on the right then puts this in the context of Bitcoin (as a reference only)
Shared Ledger - “The Database”
Smart Contract “The Middleware”
Application “The Interface”
Three Layer Model
Shared Ledger e.g. “The Blockchain”
Smart Contract e.g. “Unspent txn Output”
Application e.g a “Bitcoin Wallet”
Three Layer Model applied to Bitcoin
A
SC
SL
A
SC
SL
Smart Contract Implementation Types
Smart Contract is a loaded term that means something very different to lawyers than software engineers• Smart Contract Code: Code that governs something important or valuable and executes
“everywhere”• Smart Legal Contracts: Replace or re-implement paper contracts with smart contract code• The DAO / DAO’s: An entire organisation incorporated using smart contract code, including bylaws,
asset ownership and governance
The Diagram below shows these broken out
• Note: The term “contract” creates a great deal of confusion for a type of software that is actually highly varied and fragmented in approach and design
• Note 2: However the potential for both replacing existing legal agreements and creating entirely novel agreements is still highly exciting
• Note 3: There are now a good number of start-ups offering a mixture of SC1 and SC2 implementations
Smart Contract “The Middleware”
The DAO / DAO’s
Smart Legal Contracts
Smart Contract Code
SC
SC1
SC2
SC3
Three Layer Model Example – Application Layer (A)
The App layer can be changed easily without changing the underlying technologies• From 2013 developers began to use the underlying Bitcoin infrastructure (miners, Blockchain and
UTXO) to perform other tasks. This is arguably the simplest change, but is not the focus financial services players to date
• The diagram on the left shows Bitcoin in the standard configuration• The diagram on the right then shows what a different application might look like with the two base
layers unchanged
Shared Ledger e.g. “The Blockchain”
Smart Contract e.g. “Unspent txn Output”
Application e.g. “Bitcoin Wallet”
Three Layer Model
Shared Ledger “The Blockchain”
Smart Contract “Unspent txn Output”
Application “Notary Service”
Three Layer Model applied to Bitcoin
A
SC
SL
A
SC
SL
• Conceptually the idea is to create one “global” ledger for the world rather than each bank maintaining books and records separately
• Below is a scenario where multiple banks and corporates need to keep up to date with where their assets and liabilities are (image courtesy for Richard Brown www.gendal.me )
Today Tomorrow
Reconciliation through paper, many databases2 – 5 day settlement of transactions
Reconciliation through cryptography “mining”2 – 5 second settlement of transactions
The Shared Ledger (SL) Concept
Smart Contract and Shared Ledgers Summary
Shared Ledger
Smart Contract
Application
Three Layer Model Three Layer Model exploded
A
SC
SL
A
SL1
SC1
SC2
SC3
SL2
SL3
Applications remain simple / programmable
Smart Contract Code
Smart Legal Agreements
The DAO / DAO’s
Private
Permissioned
Permissionless
A
B
Notary
Tokenised
What is it?A registry for start-ups to record ownership and founder equity on a blockchain. They have signed up 6 pilot customers (Changetip, Peernova, Chain.com, Tango, Vera and Synack). The NASDAQ pilot facilitates the issuance, cataloging and recording of transfers of shares of privately-held companies on The NASDAQ Private Market.
Why?Ttypically founder share agreements are verbal, leading to issues at seed and Series A. By contrast the NASDAQ pilot provides customers with agreed state of equity, the shared history of ownership, backed up by the network and fixed in the blockchain history. This eases dispute resolution procedures and ensures data integrity and freedom from corruption.
How did they do it?They implemented a standard implementation of Chain.com (which is a forked version of Bitcoin itself). It essentially shared the data between nodes and uses a modified mining algorithm to sign the transactions
Could they have done this without a Shared Ledger or Smart Contract stack? Yes, but the audit transparency / certainty would be removed.
Industry Case Study – NASDAQ LinQ (Chain.com)
SL1A : Peernova
SC1: Chain.com
App: NASDAQ
BreakdownApp: NASDAQ has not released details about the App
Smart Contract: TDG assumes Chain.com uses a private version of UXTO
Shared Ledger: Private Notary Shared Ledger to record ownership
What is it?A customer uses an app embedded in the dashboard of a car to “sign” for a car rental contract digitally. A “smart contract” (computer code) running on a blockchain records that legal agreement, and is then able to use that authority to unlock the car and complete the payment with Visa.
Why?To create a seamless consumer experience around car rental, for the transparency / audit trail a blockchain provides. The longer term aim is that cars themselves would use Smart Contracts to be able to manage their own time (think Uber / Automated cars), a consumer would rent the car itself for a small period of time. The car itself would manage the administration.
How did they do it?Leveraging DocuSign's Digital Transaction Management (DTM) platform, eSignature solution and APIs together with the Visa Token Service for secure payment processing.
Could they have done this with a DevOps stack?Yes, in fact most of it is on DevOps, it’s unclear what (if any) smart contract solution they’re using or if its proprietary
Industry Case Study - Visa, Docusign Car Rental
Unknown / VISA
SC2: Docusign
App: Docusign
BreakdownApp: Docusign bespoke
Smart Contract: Docusign bespoke
Shared Ledger: Unknown if there is any shared ledger at the back, may be helpful for audit purposes. Visa payment engine used
The Next 12 MonthsBuilding on early PoCs with regulatory involvement
• The regulatory reaction to the subject of “blockchain” has been interesting. Whilst Bitcoin as a virtual currency without control presents a few issues, it’s stagnation in recent years has largely stemmed the flow of regulation in that arena.
• Regulators and governments absolutely see the benefits of the technology and appear content to allow the subject to evolve. Regulator feedback to new design choices will be crucial in coming years.
• CFTC speech• UK Government Office for Science report• Bank of England / UCL / RS Coin – Governer Carney Remarks
(Impact on liquidity risk, focus on DLT for resilience)
• We’re now seeing the beginnings of free market competition with solutions like Axoni (in which 7 banks and DTCC collaborated), R3 and Digital Asset now potentially evolving a VHS / Betamax format war. Pay particular attention to recent CLS announcement.
• There is a lot of whitespace – wherever legal document automation is required. Payments and settlement likely the last to change because of their complexity
Key Remaining Challenges
Education • Given the context laid out in this deck, it appears many are still assuming
“classic” blockchains need to be made to fit the scale challenges of banks. Instead of starting with bank requirements and seeing what blockchain characteristics apply
• The C-Suite understands it’s got hype, but need people they can trust who can
• Understand how banking works today• Fully get the complexity of the evolving “blockchain” space• Successfully translate those into business cases• Can bring the control teams and stakeholders across a large
organisation on that journey
Skills• Finding and recruiting the right skills into the right team structure will be a
key challenge as the subject scales• Many hidden gems inside a large organisation!
Research
Invest Experiment✓ Met / Qualified 100s of
start-ups✓ Filtered based on SME
knowledge✓ Database of Start-up
Capabilities
• Research Portal for Banks• Curated Knowledge Base• Database of Start-up
Capabilities
✓ SME led deal flow ✓ Business Case and
Tech DD✓ Network of FI’s as
customers
• Direct investments
• Co-investments• Partnerships
available
✓ Knowledge of Good / Bad UseCases from prior experience
✓ Experience delivering inside banks
• Proof of Concept• Pilots and Consortia
Building• Live Delivery Support
withcompliance / control training
Market Leading Blockchain Insights
Simon Taylor / World leading Blockchain SME and Fintech Influencer
• Led Barclays Blockchain R+D team completing over 60 experiments and 4x pilots in development as of June 2016
• Trusted advisor to UK Government, Bank of England, Tier 1 Banks, Asset Managers and Investors
• World leading subject matter expert with a highly influential network in the Blockchain ecosystem
• WEF Fintech Advisor 2015 - Present• UK Government and Bank of England Advisor• Consultant for top 20 Global Banks on Blockchain• Led development for Barclays to become first Bank to Offer Bank accounts
to Blockchain Companies in UK• Personally met with over 300x Blockchain companies
Chris Skinner / CEO & Managing Director• Author of the bestselling book Digital Bank and its new
sequel ValueWeb, • Contributor to BBC News, Sky News, CNBC and Bloomberg. • Chair of the European networking forum: the Financial
Services Club
• Voted one of the most influential people in banking by The Financial Brand
• Named one of most influential people in financial technology by the Wall Street Journal’s Financial News.
• C-Suite relationships with Tier 1 Banks Globally
David Brear / Investment Director „Right money in the right places“
• Voted as one of the most popular business and FinTech influencers by City AM, WSJ & BBC.
• Advising to banks, regulators & governments• Global Director of Digital Banking in Gartner with senior
roles before this at Infosys, Lloyds Banking Group, Aviva and Foolproof.
• Over 10 years working at an agency, consultancy and on the client side for a number of top financial services global brands.
• Key note speaker at Money 2020, Next Moneyand Finnovate
The Team
Thank you!
We believe financial services is only 1% done and with the power of modern technologies like Blockchain there is significant value to be unlocked. 11:FS team have built digital banks, research portals, benchmarking products and fintech labs across a range of financial services disciplines. Be sure to follow @11FSteam and our podcast @Fintechinsiders which is available on iTunes now!
October 2016
11:FS is a Global Advisory Firm who are recognised subject matter experts in Fintech
11:FSwww.11fs.co.uksimon@11fsc.o.uk@sytaylor@fintechinsiders – fintech podcast goodness on the go
Simon Taylor – Co founder and Blockchain Director at 11:FS
{ : }Agenda
Relevance of our partnership
The Promise of Blockchains
Challenges of Blockchain Adoption
MongoDB & BigChainDB
The Challenges of Blockchain Adoption:
Interoperability, Integration & Scale
Bruce Pon – Co-Founder & CEO of BigchainDB
Challenge: Interoperability
Evan Schwartz – Co-inventor of Interledger
Interledger
Evan Schwartz
Blockchain Interoperability
In this talk:1.How Interledger solves blockchain
interoperability2.Future opportunities and the Internet of Value3.Why Ripple & BigchainDB are the companies
to work with
First, the boring reasons you should care about interoperability
Adopting any new technology isa big investment
Will this new technology...1.Work with my existing stack?2.Work with other new tech in the future?3.Enable new business opportunities?
Will this new technology...1.Work with my existing stack?2.Work with other new tech in the future?3.Enable new business opportunities?
What is a blockchain?
Blockchains are ledgers
Ledgers record accounts,balances, and transfers
Central Ledger Model
Distributed Ledger Model
We need a protocol forconnecting blockchainsand other ledgers
InterledgerThe protocol for connecting ledgers.
Transferring Assets Across Ledgers
48
Sender RecipientLedger Ledger
Connectors Link Two Ledgers
Connector
Alice 100
Chloe 0
Chloe 110
Bob 0100 110
49
EUR USD
TO:us.wf.bob
First Step: Interledger Address
Sender Attaches Interledger Packet to Local Transfer
Alice 100
Chloe 0
Chloe 110
Bob 0100
51
us.wf.bob
110.00
Connector Forwards the Packet via Another Transfer
Alice 0
Chloe 100
Chloe 110
Bob 0
52
110
us.wf.bob
110.00
If Connectors Fail, Would We Lose Money?
Alice 100
Chloe 0
Chloe 110
Bob 0
?
100
53
Ledgers Provide Hold Functionality
Alice 100
On Hold 0
Chloe 0
Chloe 110
On Hold 0
Bob 0
54
Holds Are Dependent on Conditions + Expiries
55
EXECUTEROLLBACK
Condition Fulfillment Executes Transfer
56
EXECUTEROLLBACK
Timeouts Cause Funds to Be Returned
57
EXECUTEROLLBACK
Sender Commits FundsTo Initiate Payment
Funds Are Committed From Left to Right
59
Alice 100
On Hold 0
Chloe 0
Chloe 110
On Hold 0
Bob 0
COMMITMENT
Sender Puts Funds On Hold
Alice 100
On Hold 0
Chloe 0
Chloe 110
On Hold 0
Bob 0
100
60
us.wf.bob
110.00
Connector Gets Notification of Funds on Hold
Alice 0
On Hold 100
Chloe 0
Chloe 110
On Hold 0
Bob 0
61
?
us.wf.bob
110.00
Connector Puts Funds on Hold
Alice 0
On Hold 100
Chloe 0
Chloe 110
On Hold 0
Bob 0
62
110?
us.wf.bob
110.00
Recipient Gets Notification of Funds on Hold
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 110
Bob 0
63
? ?
us.wf.bob
110.00
Recipient Triggers ExecutionBy Fulfilling the Condition
Transfers Are Executed Right to Left
65
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 110
Bob 0
EXECUTION
? ?
Recipient Signs Receipt
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 110
Bob 0
66
? ?
Signature Fulfills Condition, Ledger Releases Held Funds
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 110
Bob 0110
67
?
Connector is Notified That Funds Have Been Released
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 0
Bob 110
68
?
Connector Passes on the Recipient’s Signature
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 0
Bob 110
69
?
Receipt Releases Funds from Hold
Alice 0
On Hold 100
Chloe 0
Chloe 0
On Hold 0
Bob 110
70
100
Sender Gets Non-Repudiable Proof of Payment
Alice 0
On Hold 0
Chloe 100
Chloe 0
On Hold 0
Bob 110
71
Paths Can Be Short
72
Paths Can Be Extended to Connect Everyone
73
This Is The Interledger
This Is The Internet of Value
Will this new technology...1.Work with my existing stack?2.Work with other new tech in the future?3.Enable new business opportunities?
The state of payments today
Accepting Payments In a Turkish Coffee Shop
79
Payment Methods Accepted By Prineta.com
Accepting Payments Online
Many Types of Payment Networks
80
ACH SEPA Card Blockchain
Payment Networks are Disconnected
81
ACH SEPA Card Blockchain
is what matters.
REACHIn global payments today,
Everywhere you want to be.
There are some things money can't buy.For everything else, there's MasterCard.
Payment Networks Today Compete To Be...
Surprisingly similar to...
Information Networks Before The Internet
"… biggest …"
"… more members …"
"… more services…"
Networks Competed To Be...
Internet Solved the Problem With Internetworking
in·ter·net·work·ingThe interconnection of two or more networks so as to form a larger network.
noun
"… the fastest Internet provider in the nation …"
Now Providers Compete To Be...
"… with super-fast Internet …"
Now Providers Compete To Be...
Now Providers Compete To Be...
"America's fastest, most consistent and
most reliable Internet."
COSTSPEED
In information networks, it's all about
RELIABILITY
SIMPLICITY
COSTSPEED
Internetworking changes the game.
QUALITYREACH
The Internet Enabled Much More Than Sending Faster Letters
Interledger is internetworking for money
Interledger is inspired by the history and architecture of the Internet
Internet Is A Simple Protocol With A Layered Architecture
IP
WIFI BLUETOOTH ETHERNET
Internetwork
Network
Transport TCP UDP
Application HTTP SMTP NNTP NTP RTP
ILP
BIGCHAINDB RIPPLEISO 20022 BITCOIN ETHEREUM
Interledger
Ledger
Application SPSP PPSP ...
Interledger Is A Simple Protocol With A Layered Architecture
Interledger enables for moneywhat the Internet did for data
Global connectivity
Dramatically lower costs
Brand new industries
Industry transformations
So...
Is your business Interledger enabled yet?
Interledger supported natively by:
Interledger development led by:
Interledger.org
Challenge: Integration
Daniel Aranda – MD of Business Development, Ripple
Global Leader in Distributed Financial Technology
A connected world is creating new demands the current infrastructure can not support.
112CONFIDENTIAL
Demands on Financial Infrastructure
113
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Payments are the foundation to connecting
a financial ecosystem.
114PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No implied licenses are intended and all rights are reserved.
CONFIDENTIAL
Why Payments?
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
Make cross-border payments truly efficient for banks and their customers.
115PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No implied licenses are intended and all rights are reserved.
CONFIDENTIAL
Ripple’s Mission
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116
Today: International Payments Require a Relay Process
Central Counterparty
Sending Correspondent & Liquidity Provider
Receiving Correspondent
Central Counterparty
Sending Institution
Receiving Institution
Key Problems
Limited Access: Intermediaries, single liquidity providerLack of Certainty: Unidirectional messagingDuration (2-4 Days): Limited by settlement windowsHigh Cost: Processing, operations, FX, liquidity cost
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
117
Today: Direct Global Reach Is CostlyCosts associated with nostro accounts: liquidity, regulations, compliance, risk
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118
This Is A Structural Inefficiency
Sending Bank Receiving Bank
Ledger
Record Keeper
Settlement requires a trusted counterparty Creating network silos
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
119
…Which Distributed Financial Technology AddressesCreating interoperable networksDecentralized architecture eliminates need
for intermediaries
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120
Ripple Modernizes the Payments Infrastructure
Applications
Banks
Risk & Governance
Rule Sets
Messaging
Settlement Infrastructure
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
Messaging
121
High-Level Architecture
RippleConnect
Sending Bank
RippleConnect
Beneficiary Bank
Settlement
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
122
Ripple: Focus on Cross-Border Transactions
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
123
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
124
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125
1 Bi-directional Messaging ● Pre-transaction communication● Flexible structured message data● Context driven messaging● Real-time liquidity monitoring
2 Real-time Settlement ● Settlement integrated with messaging and FX● Atomic processing of complex transactions● 24/7 real-time inter-bank settlement
3 Liquidity Management ● Option for competitive third-party FX marketplace● Flexibility to use multiple liquidity models● Pathfinding capability to optimize transaction costs
Capabilities Enabling Features
Key Enabling Capabilities with Ripple
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
126
Financial Technology CompanyWith Expertise in Global Financial Settlement
150 Employees65% Engineering Talent
4 Offices WorldwideSan Francisco HQLondon EuropeNew York North AmericaSydney APAC
Financial Services• J.P. Morgan• Citigroup• HSBC
• DTCC• Visa• PayPal
Technology• Google• Apple• Amazon
• Bitcoin• NSA• MongoDB
Regulations• Federal Reserve - NY & Board of Governors• SEC• Promontory
Team Experience
• Fiserv• ACI• Monitise
• Oracle• NASA• Qualcomm
CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.
100+ 30+ 10
Production
Pilot
Active Partners
127CONFIDENTIAL
Market TractionFirst production implementations of blockchain at a bank
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Sample Customers & Partners
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129129
Challenge: Scale
Bruce Pon – Co-Founder & CEO of BigchainDB
A scalable blockchain databasefor the Enterprise
Challenge: Scaling Blockchain
Level 39, LondonOctober 18, 2016Trent McConaghy
@trentmc
133
Planetary Scale?What is a Blockchain?
What is a Blockchain?
blockchainblock·chain·\ˈbläk-chān\
Noun1. (1991) hashed-chain of blocks 2. (2008) storage that is decentralized, immutable and holds digital assets
Adjective 1. (2015) a system with the characteristics of decentralized control, immutable and holds digital / digitized assets
0 50 100 150 200 250 300 350
0
200,000
400,000
600,000
800,000
1,200,000
175,000
367,000
537,000
1,100,000
Nodes
Writes/s
Netflix Uses 37%Of The Internet
Bandwidth
Using a modern distributed “big data” database
Two Ways to solve the Blockchain scale problem
1Big Data-fy Blockchains
2Blockchain-ify Big Data
… but how to blockchainify?
- Build on person-decades of work- Significant scalability hurdles
- Build on person-centuries of work- Scalability challenges already re-
solved
or
Architecture – Decentralized Federation
MongoDB consensusConsistent and Resilient
Blockchain consensusTrust is distributed BigchainDB
Federation
MongoDBPlatform
ALICE
BOB
138
Scaling with BigchainDB + MongoDB
THROUGHPUT>1,000,000 writes/s
~100,000 transactions/s
LATENCY<100 ms
CAPACITYPetabytes with each node adding 48TB
QUERYDatabase is fully queryable
SCALABILITYPerformance increases as
nodes are added
DECENTRALIZATIONFederated
non-anonymous participation
A scalable blockchain databasefor the Enterprise
Challenge: Scaling Blockchain
Level 39, LondonOctober 18, 2016Trent McConaghy
@trentmc
{ : }Agenda
Relevance of our partnership
The Promise of Blockchains
Challenges of Blockchain Adoption
MongoDB & BigChainDB
Jim DuffyInformation Strategy, MongoDB
Bruce PonCEO Co-Founder,
BigchainDB
+
IBM: Leading the pack in blockchain banking
The uses cases have already emerged
The uses cases have already emerged
Reconteur: The Future of Blockchain in 8 Charts
Settlements of financial
transactions is just one of the
quintessential use casesSettlement (finance) Settlement of securities is a
business process whereby securities or interests in securities are delivered, usually against (in simultaneous
exchange for) payment of money, to fulfill contractual obligations, such as those arising under securities trades.
Google: “Cost of Settlements”
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DecentralizedControl
Tamper Resistant
Asset Autonomy
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Petabyte Scale
Enterprise Grade
Ease of IntegrationDecentralized
Control
Tamper Resistant
Asset Autonomy
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Petabyte Scale
Enterprise Grade
Ease of Integration
Low TCOCloud NativeDistributed
DecentralizedControl
Tamper Resistant
Asset Autonomy
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Best of Two Worlds – BigchainDB + MongoDB
MongoDBBlockchain BigchainDB & MongoDB
Data immutability
Decentralized control
Asset autonomy
High throughput
Low latency
High capacity
Access permissioning
Query & search
Security & PrivacyKey distribution infrastructure allows network participants to identify new members and members to have full control to selectively grant data access
Enhanced Data ProtectionSuppression of internode communication and DB admin activities guarantees that data can’t be modifiedPractically Unlimited
ScalabilityPipelining of events into a backlog table allows block creation every second with transaction validation in parallel. Throughput of 100k+ transaction per seconds
Business LogicCircuit inspired crypto-conditions allow business logic automation and escrow. If/Then simple contracts can be triggered with multisig, time and hash locks
Robust ArchitectureInherits the performance and scalability of the underlying database platform. Customers can choose their preferred database substrate to minimize integration and interoperability barriers
Components of our Solution
153
The Centralized vs Partly Decentralized
Centralized
ApplicationPlatforms
Data Platforms
Centralized
ApplicationPlatforms
Data Platforms
DecentralizedPartly
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Industry Use Cases
The Centralized vs Partly Decentralized
Determine exposure and positions
Streamline back office processes
Faster post trade settlement
Prevent fraud
Detect leakage
See bottlenecks and delays
Reduce risk and cost of escrow
Reduce time to transmit funds
Provide audit trail and receipts
Enable P2P energy trading
Power IoT and M2M
Balance energy grids
Capital Markets Supply Chain Payments Energy
BigchainDB + MongoDB Example Use Cases
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The solutions are only months away
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