Leading the digital value revolution - NTT Data
Transcript of Leading the digital value revolution - NTT Data
BEYOND BLOCKCHAIN:WHAT IT REALLY MEANS
FOR TECHNOLOGY AND BUSINESS
Leading the digital value revolution
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POSSIBILITIES OF BLOCKCHAIN What is Blockchain 03 HowBlockchainisdifferentfroma conventionalsystem 04 WhatcanbeenabledbyBlockchain 05
OUR UNDERSTANDING BeyondtheHype 07 Blockchainfeaturesvsbusinessmodel 08 Opportunity 09 Socialchanges 10 NTTDtechandforesight 11
OUR CAPABILITIES Strengths&skills 13 Collaborations&alliances 14 Ourdesignapproach 15
MAIN USE CASES UNDERTAKEN BY NTT DATA Summary 17 JAPAN 18 ITALY 20 SPAIN 22 UK 24 USA 25
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SUMMARY
SometalkaboutBlockchainanditspotential,newtechnologiesandthetransformationsleveragedbyinnovation.Butwhatdoesitreallymean?
NTTDATA’sforesighttechnologies,includingBlockchain,arebasedonobservation,studies,measurementsandprototypingorimplementations,whichgivesustheabilitytoturnpossibilitiesintorealityandtounderstandthelevelofmaturityoftechnologiescapableoftransformingprocesses,systemsandbusinesses.
WearepresentingourcapabilitiesandrealusecasesimplementedbyourdedicatedBlockchainteamaroundtheworld.NTTDATAisexploringalloftheBlockchainarena,workingwithamulti-platformapproach.Thesearefactswhichgobeyondthehypeandgivean“objectivevision”ofwhatwecandoandwhatwearenotyetabletodowiththesenewtechnologies,howtheyareimpactingonsocialchangesandhowyoucancometounderstandBlockchainfeaturesandachievesomethingtangibleandconcretelyimplementable.
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Possibilities of Blockchain
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WHAT IS BLOCKCHAIN?
TheconceptofBlockchainstartedwhenSatoshiNakamotocreatedBitcoinin2008-2009,designinganewsystemthatcouldallowthecreationandtransferofelectroniccashwithouttrustinganycentralauthority.
Blockchainistodayidentifiedastheunderlyingtechnology,whichisacombinationofadistributedandappend-onlydatabase,consensusalgorithms,cryptographyandpeer-to-peernetworks.
Thiskindofsystemreliesongametheory,economicsandsharedrulesenforcedbythemajorityofthenodes.
Blockchainfeatureswereenhancedin2014withtheEthereumBlockchainandso-called“SmartContracts”whichintroducedbusinesslogiccodedinsoftwareexecutedandvalidatedbythenetworkinadecentralizedandunstoppableway.
In2015,Blockchainbecameapopularideainenterprisesectors.ManyBlockchainprojectsandplatformsweredesignedtocreatenetworksforauthorizedmembers(permissioned)withouttheneedforacryptocurrency.SomeofthemevolvedintoalternativetypesofledgersworkingdifferentlyfromtheinitialBlockchain.
DISTRIBUTEDLEDGERTECHNOLOGY(DLT)isthetermthatidentifiesthegeneralconceptofBlockchainandeveryothersimilarnewtechnology.Enterprisesusuallyusethistermtoindicatepermissioned(private)ledgers.
BLOCKCHAIN
SHARED RULES GAME THEORY ECONOMICS
DISTRIBUTED DATABASE
CONSENSUSALGORITHM
PEER-TO-PEERNETWORK
CRYPTOGRAPHY
SPECIFICS TECHNOLOGY EVOLUTION
Bitcoins& Altcoins
Ethereum & Other Public Blockchains
Private Blockchains & DLT
QUORUMHYPERLEDGER
FABRICCORDA
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HOW BLOCKCHAIN IS DIFFERENT FROM A CONVENTIONAL SYSTEMNowadays,Blockchainenablesanewwayofdesigningsystems.
Thistechnologyhasmanyimportantstrengthsthatcanbeusedformanypurposes,butitisnotsuitableforeverything,ifcomparedtoconventionalsystems.Itisimportanttoconsideratrade-offbecauseofthemaindifference:centralizedagainstdistributedarchitecture.
Traditionalsystems,basedonasinglecentralizednode,areusuallymoreefficientthandistributedsystemswherenodeshavetocommunicateandreachaconsensusonsomeinformation.
CONS
CONS
PROS
PROS
Isolated silos
SPOF
No data immutability
Requires trust in 3rd parties
CONVENTIONAL
BLOCKCHAIN
Performance
Maturity
Governance
Scalability
DATA
TRUSTABILITY
AVAILABILITY
STANDARD
Replicable, immutable, traceable
Mitigation of trust on third parties
Mitigation of SPOF (single point of failure)
Common and known ecosystemsand standardization
PERFORMANCE
GOVERNANCE
IMPLEMENTATION
SCALABILITY
Higher performance
Allows efficient system governance
Easy implementation and maintenance
Scalable platform
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WHAT CAN BE ENABLEDBY BLOCKCHAIN?
FUNCTIONAL FEATURES
VALUE & ASSET TRANSFERTheexchangeofcryptocurrenciesanddigitalassets(tokens,securities,lettersofcredit,etc.)withouttheneedforcentralauthorities.
SHARING INFO & WORKFLOWSDatasharingbetweenpartiesthatdon’tfullytrusteachother,accordingtotherulesinSmartContracts.Theinformationcanbesharedwithallstakeholdersorwithasubsetofthem.
TIME-STAMPING & NOTARIZATIONUsageoftheBlockchainasanimmutableandindependentledgertoensuretheexistence,integrityandownershipofdigitalinformation.
SMART CONTRACTSAutomationoftheexecutionofbusinesslogicwiththeimplementationofrulesinthesoftwarecodification.
BEHAVIORAL FEATURES
TRACEABILITYBlockchaintechnologyassuresdatatransparencyandthelogofchangesofalldatastoredintheBlockchain.
IMMUTABILITYBlockchaindataimmutabilityisobtainedthankstocryptography,consensusalgorithmsandthenumberofpeersinthenetwork.
DECENTRALIZATIONThedecentralizedsystemwithacommonsharedledgerremodelstheparadigmbasedoncentralizedsystems.
DISINTERMEDIATION &TRUST MITIGATIONBlockchainprovidesthepossibilityofmitigatingtrustandreducingtheneedtorelyonthirdparties,disintermediatingmanystakeholders.
TECHNICAL FEATURES
DISTRIBUTED DATABASEStoragedatabasesarelocatedinmultiplecomputersdistributedoveranetwork.
CONSENSUS ALGORITHMAprocessusedtoachieveagreementonasingledatavalueinadistributedprocess.InpublicBlockchainsPoW(ProofofWork)isthemostwidelyused.
CRYPTOGRAPHYTechniquesthatusemathematicaltheoryandcomputersciencetoguaranteeintegrity,non-repudiation,authenticationandconfidentiality.
PEER-TO-PEER NETWORKNetworkofcomputerswherethenodesareconnectedwithoutanyintermediary.
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OurUnderstanding
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OurUnderstanding
BEYOND THE HYPE
Afterunderstandingtechnicalfeatures,itisnecessarytohaveanobjectivevisionofwhatwecandoandwhatwearenotyetabletodowiththesenewtechnologies,howtheyareimpactingsocialchangesandhowyoucancometounderstandBlockchainfeaturesandachievesomethingtangibleandconcretelyimplementable.
• Blockchainsolutions“often”havenoreductioninplatformsystemcosteveniftheconventionalsystemis“replaced”.
• AlltransactionswithinpublicBlockchainsandtheirsmartcontractshavetoconsiderafeecostandthehighvolatilityofthecryptocurrencyprice.
COSTS
• Blockchainusecasesmakesenseifthemainbenefitsarethemust-havefeaturesofthesolutionandthebenefitsarehigherthantherisks/costs/complexity.Thefirstquestionbeforeconsideringausecaseis“DoIreallyneedaBlockchain?”
• Blockchain-basedbusinessmodelsstillhavemanyunpredictablevariables,likevolatility,go-livecostsandregulatoryimplicationsthathavetobeconsideredandanalyzedduringthedevelopmentofthesolution.
• TherewillnotbeaBlockchainplatformthatgovernseverything;thechallengeistochoosethemostfittingplatformbasedonbusinessrequirements.
BUSINESS
• PermissionedBlockchainsandDLThavecomplexgovernanceforinfrastructure,applicationandbusinesslayersincomparisonwithconventionalsystems.
GOVERNANCE
• Performance,scalabilityandinteroperabilityarefeaturesstill“underdevelopment”forallBlockchainplatforms.
• EnterpriseBlockchainsolutionsarestillinevolution.AfteraProofofConcept(PoC)phase,itisnecessarytocloselyfollowplatformevolutionandmaturity,adaptingandsometimeschangingthesolutiontothenewfeatures/architectureoftheplatforms.
• TheBlockchainrevolutionwillnothappenovernight,andwillrequirecooperationamongmarketparticipants,regulatorsandtechnologyexperts.
MATURITY
• MostpublicBlockchainshavetheirownrules/conventionsandaretypicallymanagedbyadistributedandopencommunitynotcontrolledbysingleactors.
• Blockchainsolutionshavetofollowaregulation-by-designapproach.• Intermediariesandtrustedincumbentshavetorethinktheirrolesconsideringthe
possibilityofdisintermediationofferedbyaBlockchainnetworkthatcouldtakeorreplacetheirrole.
REGULATION
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BLOCKCHAIN FEATURESVS BUSINESS MODELInordertodefineaservicestrategy,itisnecessarytouseasetofmethodologiesandtoolsduringinterviewsandcollaborativeworkshopstotracetheservicemodelandthegeneralguidelinesbasedontheexperienceofendusers.
Themodelingprocessofabusinessmodel,therefore,starts,inthiscontext,fromthewell-knowntechnicalfeatures(distributeddatabase,consensusalgorithm,cryptography,peer-to-peernetwork).Inasecondstage,thetechnicalfeatureshavetobeunderstoodasatransformationinasystem’sbehaviourorcapabilityastraceability,immutability,decentralization,disintermediationandtrustmitigation.GoingdeeperintoourunderstandingofthefeaturesofBlockchain,wecanreachpotentialfunctionalitiessuchas:value&assettransfer,sharedinformationandworkflowsamongdifferentstakeholders,time-stampingandnotarization,andsmartcontracts.
ThenextstepafteracquiringknowledgeabouttheBlockchainfeaturesistostartthedesignprocess,focusingoncollaborativeworkshops:gaugeandtranslatetheneedsofclients,designthinkingwithanopenmindinordertoidentifynewenablerusecasesinaPoC,prototypetheideatomakeitconcreteandmodelusingmaindrivers,implementthesolutionandupgradeitbasedontheneedsanddirectfeedbackofclients.
BusinesscasedefinestheextensiononalargescaleoftheusecasedevelopedinthePoCanditseconomicsustainability.Inordertodesignabusinessmodelisimportanttoidentifytherightvaluepropositionforthetargetinvolveduser(personas).:Itiskeytounderstandtherealneedsofthistargetuserinordertoofferrealaddedvalue.Neverthelessaroadmapisdevelopedbeyondthebusinesscaseaimedtosupportthewideplan.Thefinalroll-outphaseimplementstheprocessesenvisagedintheroadmap.
TECHNICAL FEATURES
BEHAVIORAL FEATURES
FUNCTIONAL FEATURES
DESIGNTHINKING
Define a value proposition for target usersDefine a business model to support the value proposition
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EmpathizeDefineIdeate
PrototypeTest
PUBLICSECTOR
INSURANCE BANKINGRETAILENERGYTELCO
POC BUSINESS CASE& ROADMAP ROLL-OUT
OPPORTUNITIES
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OPPORTUNITY
Blockchainnetworksenablenewbusinessinteractionsandnewplayersthatreplaceexistingactorsortakeonnewroles,creatingnewbusinessmodels.
Thedirecttransferandsettlementofvaluethroughaninternetprotocolcreatesanewassetclass,whichcanbethebasisfortheToken-basedEconomy,theMachineEconomyandultimatelytheInternetofValue.
InitialCoinOfferings(ICO)enablenewfundingmethodsforstartupsandprojects.
Thecreationandmanagementofconsortiawithanewcooperativeapproachcanbringtogetherdifferentstakeholdersthatcancreateacommoninfrastructureforbusiness.
ThereusabilityofthesamecommonBlockchainnetworkandinfrastructurecanbethefoundationforexpandingnewbusinesscases,reducingcostsandstandardizingprocesses.
Datatransparencycanenhanceauditabilityandincreasethereliabilityofbusinessprocesses,resultinginanabilitytoprovidealegitimateproofoftheexistenceofinformation.
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DISRUPTION
INN
OVA
TIO
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UPGRADE
ENABLE REVOLUTIONIZE
REPLACE
Oldplayers,newideas
Oldplayers,oldideas
Newplayers,newideas
Newplayers,oldideas
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SOCIAL CHANGES
Blockchaintechnologyisanenablingfactorfordefiningandcreatingvalueineverysensethroughthenetwork.Thevalueisnotonlymonetary,itisalsosocialandcultural.Thefrictionlessexchangeofdigitalassetsrepresentinganykindofvaluecanpotentiallyunlocknewtypesofinteractionbetweenindividuals,organizationsandmachines.
Thepossiblechangeinbusinessmodelscanhaveanimpactonthesocialinfrastructureasnewservicesbecomeavailable.
Ensuringtheauthenticityofrelevantinformationcouldgivepeoplemoretransparencyandtheabilitytotrack,claimandpublishproofoftheexistenceofspecificdata.Blockchain-baseddigitalidentitiesmaybefundamentalforpeoplewhodon’thaveaccessto someservices.
ThestrengthofaBlockchaincreatingdistributedplatformstoperformdirecttransactionsfacilitatestheinclusionofpeople,loweringparticipationbarriers.
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NTT DATA TECHAND FORESIGHTAtNTTDATA,wecontinuouslyinvestigateadvancedtechnologiesandsocialtrendsthatwebelievewillinfluencebusinessesoverthenextthreetotenyears,andwepublishthesefindingsonanannualbasisforthebenefitofourclients.
NTTDATAin2018hadidentifiedanddevelopedeighttechnologicaltrends1(TT01…TT08),spearheadingdevelopmentofaninformationsociety.TheTT072regardingDiverseITInfrastructuremakesspecialmentionrelatedtoBlockchainbasedontheevolutionofarchitectures:“Architectures have evolved that combine different IT infrastructures and offer them as a single service. This trend can be seen particularly in the case of database technology for global distribution and integration and for Blockchain technology”
“It is revolutionary that the database technology that enabled global distribution and integration has reached the stage where it is offered on cloud platforms. In the past, geographically focused services offered in countries across the world would result in delayed responses and in discrepancies in recorded data due to physical distances. Thanks to the development of robust middleware, global distribution and integration is possible, where each data center provides positive user experiences in specific regions while using the same integrated set of data.
World-scale service platform developers used to build robust IT infrastructure on their own to offer social network services and emails exclusively for customers. Today, the time has come for all companies to migrate to the cloud for business. The promise of open-source development further raises expectations that IT vendors may emerge to offer architectures with an even greater degree of flexibility.
Blockchain, a technology that supports bitcoin, has solved a key issue related to distributed technologies, and is about to broaden its applications. A Blockchain is distributed across the world instead of being centralized, and it ensures validity over a certain period of time, which slows processing speed. As a result, it is not considered appropriate for small payments and other accelerated transactions. To solve this problem, the development of off-chain technology is underway in which high-speed transactions are achieved by adding a high-speed peer-to-peer (P2P) network to the Blockchain.
The development of cross-chain atomic swaps3 is also underway. This technology enables transactions directly between chains, avoiding the need for the presence of a third-party clearinghouse to exchange value between Blockchains. However, bitcoin, which has already circulated huge amounts of cryptocurrency is a barrier to entry. Coordination of interests between companies and technologies might also present an obstacle to the ongoing evolution of this technology.”
1https://www.nttdata.com/global/en/foresight/trend-listing2 https://www.nttdata.com/global/en/foresight/trend-listing/2018/april/diverse-it-infrastructure3 Cross-chainatomicswapsaretheexchangeofonecryptocurrencywithanotherwithouttheneedforthird-partyintermediation.
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OurCapabilities
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OurCapabilities
STRENGTHS & SKILLSThankstotheresearchconductedandexperienceacquiredbyNTTDATAoverthelastfewyears,wehavereachedaclearerunderstandingoftherealvalueofBlockchain,inabroadenedperspectiverangingfromtechnologytobusiness.
OurdeepunderstandingandadvantageintherealmofBlockchainrepresentsanewstrengthofNTTDATA,intellectualcapitalattheserviceofourcustomers,aconcretesteptowardsadigitalvaluerevolution,andourforesightintothefuture:
NTT DATA HAS HANDS-ON EXPERIENCE AND MATURED CAPABILITIES
• 200+Blockchainexpertsacrosstheglobein20+differentcountries.
• 4Innovationlabstofostertechnologyevaluation.
• Variousrelevantusecasesimplementedcross-industry.
• EstablishedBlockchainconsortiumwithmembersrepresentinganumberofvaryingindustriessuchasinsurance,logisticsandimportexporttrade.
• DesignBCOSE(Blockchainone-stopenvironment)whichquicklyenablesPoCenvironmentsetupandprototypeimplementation.
• Promotethedevelopmentandimplementationforproductionuse,like“TrustedArchitecture”whichenablestodesignoptimumarchitectureofBlockchain.
TECHNICAL• DistributorofHyperledgerQuilt• InfrastructureTechnologyascontainers,
middleware,OS,security,cloudplatform,Docker,Ansible,AWS,Azure;Linux(RedHat)
• Consensusalgorithms• PrograminglanguagesuchasGO,Java,
Solidity,Kotlin,C++,Python• Bitcoin,Ethereum,HyperledgerFabric;
Corda,Ripple
BUSINESS• PublicSector:TelecomandUtility,
Government,Socialinfrastructure• FinancialSector:TradePlatform,Banking,
Insurance,• EnterpriseSector:Paymentsolutions,
SCM,AI&IoT,NetworkInfrastructure,retailprocesses,Logistics,Healthcare,LifeScience,Automotive,Supplychain
TECHNICAL• PoCDevelopment,Blockchainbased
solutiondesign• ExtensiveexperiencewithHyperledger
Fabric1.xandCordaEnterprisearchitectureandimplementation
• AgilebasedBlockchainsolutiondelivery• Blockchain + IOT• Non-functionaltestingofBlockchain
framework/solutions• Digitalidentityandtraceabilityand
Blockchainplatform
BUSINESS• Multi-platformapproach• End-to-endstrategyanalysisuptothefinal
solution• Infrastructuremanagementandgovernance• Definitionoftherulesforcreatingaprivate
network• BusinessProcessAdvisory• Designnewprocessesforanyindustry• Financedomainknowledge,specifically
SupplyChainFinance,PaymentSystems• AgileProgramManagement
OURCAPABILITIES
SKIL
LSST
RENG
THS
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COLLABORATIONS& ALLIANCESOurcollaborationsandalliancesarefocusedontherealfeasibilityofrealizingBlockchain,payingattentiontoensureaprojectfortheinvolvedstakeholders.
NTTDATAisconstantlyfollowingtheevolutionandemergenceofBlockchainandDistributedLedgerTechnologies.
NTTDATAcontributedtoHyperledgerProject;NTTDATAisalsoanEnterpriseEthereumAlliancememberandfounderofAlastriaandithaspartnershipsandcollaborationswithR3,RippleandSkuchain.
Thus,NTTDATAiscontributingtotheOSScommunityandstablishstrategicpartnershipwithselectedstart-upcompanies.Furthermore,NTTDATAisactivelyinvolvedinstandardizationprojects,industry-universitycollaboration,encouragingthebirthandrealizationofideasbecomingrealprojectswithatangibleaddedvalue.
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OUR DESIGN APPROACH
NTTDATA’sapproachtoBlockchain-basedtechnologicalinnovationislinearandaimstoreshapeorganizations,servicemanagementandactualrelationships.Ourapproachstartsfromatrainingprogramrelatedtothebusinessandtechnicalaspects,toprovideanunderstandingofthemechanisms,theconceptofBlockchainandhowitcouldbeapplied.Thenwesetupastrategytofindspecificopportunities,explorefeasibilityandplanthenextstageinordertoproducegoodprototypessubjecttocontinuousimprovementandsupportthecreationandimplementationofcustomerideasbasedonusecasestudies.Afterdefiningtheperimeter,andtheconstraints,wecontinuewith
anas-isanalysisoftheprocessesorwebuildnewoneswithnewrolesandresponsibilities.WecreatePoCstoevaluatepossiblecostreductionsbypromotingefficiencyinoperationsandestimatethecostsofsysteminvestmentsinregulatoryandlegislativecompliance.Thenwepromotedevelopmentandimplementationforproductionpurposes(Go/NoGo).Afterproductrelease,wetakecareofthemaintenanceofBlockchainsoftware,managingupdatesandversioning.WeevaluatetheoptimalBlockchainarchitectureforuseinproductionandwecollectfeedback,lessonslearnedandbestpracticesforcontinuousimprovement.
Promotethedevelopmentandimplementationforuseinproduction(Go/NoGo)(“TrustedArchitecture”enablesanoptimaldesignofBlockchainarchitecture).
Implementthesolutionsidentifiedstartingfromaprototypeandsupporttheupdatingofgovernancemodelsforsolutionextension(BCOSEquicklyenablesPoCenvironmentsetupandprototypeimplementation).
Explorefeasibilityandavailability,withpracticalhypothesis.Evaluatecostreductionbypromotingefficiencyinoperationsandestimatecostofsysteminvestment.Abidebyregulatoryandlegislativerequirements.MakeaQuickProcessAssessment.
FindspecificopportunitiesfortheuseofBlockchainwithcollaborativeworkshops,wheretechnologycanmakeadifference,emphasizingthedistinctionbetweenthecompanyandthecompetition.Supportthecreationandrealizationofcustomerideasbasedoncasestudiesandtheirideasaboutdesignthinking.
Provideeducationprogramforbusinessandtechnicalaspects,tounderstandthemechanismandideaofBlockchainandhowitisbeingapplied.
BUILD ANDRELEASE
IMPLEMENTATION
FEASIBILITY ANALYSISAND PROCESS ASSESSMENT
STRATEGYDEFINITION
EDUCATIONPROGRAM
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Main Use CasesUndertakenby NTT DATA
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Main Use CasesUndertakenby NTT DATA
SUMMARY
TRADE PLATFORM:NTTDATAinJapanfoundedaconsortiumwith14Japaneseleadingcompaniesincludingbanks,tradingcompanies,insurancecompanies,shippingcompaniesandfreightforwarders.Intheconsortium,participantsdiscussedcrossindustrialmatterstoimprovetheefficiencyintradeproceduresandverifieditsfeasibilityusingtheprototypesystem.
SMART GRIDS AND ELECTRIC POWER SYSTEM TRANSFORMATION:NTTDATAinJapanusesBlockchainsforenergyconservation,powerretailing,transmissionanddistributionplanmanagementandaimstodistributedprocessesbysharinginformationamongrelatedactors,processimprovement,newvaluecreation(greenpowercertification,tokeneconomy,etc.).
SPUNTA PROJECT: Afterconductingafeasibilitystudyontheinterbankreconciliationprocess,NTTDATAinItalydevelopedaPOCwithABILabandmorethan15BankstodemonstratehowaBlockchain/DLTsolutioncanchangeandimprovetheprocess.
4TRACE:NTTDATAinItalydevelopedaSupplychainandTraceabilityplatformGS1compliantwithBlockchainnotarizationandtimestamping.
MULTI-PARTY CONTRACT PROCESS FOR RE-INSURANCE:NTTDATAintheU.S.demonstratedamulti-partycontractingprocessforre-insuranceusingBlockchainwithimprovedtransparency,traceabilityandefficiency.
UK TIER 1 RIPPLE XCURRENT SOLUTION:NTTDATAintheU.K.contributedintheimplementationof“nearrealtime”paymentandsettlementoffundsthroughanewanddedicatedmobileapp.
CONTAINER TRACEABILITY:Theshippingindustryissubjecttostrictregulationduetoitsimportanceinprocurementandgloballogistics.Blockchaintechnologycanimproveleadtimesandreduceuncertaintyalongthesupplychainforallpartiesinvolved.
INTERNAL FINANCING:DevelopmentofanintercompanyfinancialcontractinBlockchain.Specifically,acreditlinebetweentwocorporationsbelongingtothesamegroup.Differentdepartments androlescreateacontractina collaborativeway.
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TRADE PLATFORM
All industries involved in trade14 Japanese Leading Companies
First,weaimtodigitizetradedocumentsinaspecificworkflowintrade.Inthefuture,wewilldevelopadigitaltradeplatformtoimproveefficiencyintradeproceduresbyprovidingaBtoBtoGdatasharingplatform.
August2017
DatasharingonaBlockchainplatform
Confidential
NTTDATAinJapanfoundedaconsortiumwith14Japaneseleadingcompaniesincludingbanks,tradingcompanies,insurancecompanies,shippingcompaniesandfreightforwarders.Intheconsortium,participantsdiscussedcross-industrialmatterstoimprovetheefficiencyintradeproceduresandverifieditsfeasibility usingtheprototypesystem.
ThisistheveryfirstconsortiuminJapanthatoperatesacrossdiverseindustriesintrade-relatedbusiness.Weextractedissuestocreatethedigitaltradeplatform.Weevaluatedexpectedbenefitsbyusingthedigitaltradeplatform.
Itchangestheworld,fromeachsystemhavingdataindividuallytoeverysystemcollaboratingbysharingdatathroughtheBlockchain.Itisexpectedthatitwillincreasethespeedoftransactions,maintainconsistencyandreducethepapercostoftrade-relateddocuments.
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
CORRESPONDENTBANK
EXPORTER
INSURANCECOMPANY
TRADE CONTROLOFFICE
TRADE CONTROLOFFICE
ISSUINGBANK
CUSTOMS CUSTOMS
IMPORTER
cargo
TRANSPORTCOMPANY
CUSTOMSBROKER
DISTRIBUTEDLEDGER BLOCKCHAIN
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SMART GRIDS AND ELECTRIC POWER SYSTEM TRANSFORMATION
UtilityElectric Power Companies, Gorvernment Agency, University.
Thisyear’sgoalistobuildapowertradingplatformprototypecombiningvirtualstoragebatterycloudandBlockchainpowertrading.Ourgoalnextyearistopromotefieldtestsforcommercializationofthisplatform.•Transparency,traceability•DataImmutability•SmartContractsLogic•Notarizationandtime-stamping
April2017
SmartGrids,IoTDataTime-stamping,StrongAuthentication
Ethereum
NTTDATAinJapanusesBlockchainsforenergyconservation,powerretailing,transmissionanddistributionplanmanagement,andaimstoachieve:•Distributedprocessesbysharinginformationamongrelatedactors•Processimprovement•Newvaluecreation(greenpowercertification,tokeneconomy,etc.)
•DemonstrationsystemcreationofBlockchainbasedP2Ppowertrading•DemonstrationsystemlinkingIoTdeviceandBlockchain•Feasibilitystudyconductedwithpowercompanies•ParticipatedinPoCofUniversity’sP2Ppowertrading
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
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SPUNTA PROJECT
FinanceABI Lab (Banking Research and Innovation Center founded and promoted by the Italian Banking Association) and more than 15 Italian Banks
FirstProjecttobringinnovationtothefinanceindustryinordertooptimizeand re-engineerabackofficeprocessidentifiedbyABILabasthefirstusecasewiththeBlockchain/DLTsolution
May2017
Datareconciliationprocess,immutability,transparency…
Corda
Afterconductingafeasibilitystudyontheinterbankreconciliationprocess,NTTDATAinItalydevelopedaPOCwithABILabandmorethan15bankstodemonstratehowaBlockchain/DLTsolutioncanchangeandimprovetheprocess,makingitdistributed,reducingtheneedfortrustin3rdparties,enablingittobecomerealtimeandmakinginformationsharablebetweentheactorsinvolved
•FirstEMEAprojectwitharegulator,morethan15banksandasystemintegrator•FirstdraftofnewregulationsfortheprocessbasedontheBlockchain/DLTplatform•Buildingoftheinfrastructurelayerenablingbothcloudandon-premisesnodes•Usageofaprivatephysicalnetworkbetweenthenodes•Establishmentofgovernancerulestomanagethebusinessnetwork•Performancetestswith60daysofrealdataamongtheallthebanks•Pre-productionanalysis
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
BANK A BANK B1
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SEND MOVEMENTS(INPUT AND OUTPUT)
OPEN INVESTIGATION IF NECESSARY
EXECUTEAUTOMATICAND MANUAL MATCHING
Thisprocessaims to reconciliatematerialandnotdigitalizedproducts thatareexchangedbetween theBanks (e.g.Commercialpapers,Promissorynote,etc.).BetweeneachpairofbanksthereisareciprocalBankaccount,whereinputandoutputmovementsarewritten.Allbankshaveatleast1reciprocalbankaccountwithacounterpartyBank.Movementsaremostlymatchedautomatically;manualmatchisexecutedifthereisamismatchandaninvestigationcanbeopened.Automaticandmanualmatching,areactivitiesperformedbyonlyoneofthetwoBanks.Theownershipofthisactivityisexchangedevery2-3years.
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SPUNTA PROJECT 4TRACE
Retail, Healthcare, Transport & Logistics, Foodservice, Technical Industries, Humanitarian logisticsFood Company
ImprovementofGS1andEPCISplatformwith:•Non-repudiationofdata•DataImmutability•Notarizationandtime-stamping•Decentralizedtime-stamping
July2017
SupplyChainTraceability
OpentimestampwithBitcoin
NTTDATAinItalydevelopedaSupplyChainandTraceabilityplatformGS1compliantwithBlockchainnotarizationandtime-stamping
•CreationofaplatformGS1andEPCIScompliant•Test4Traceplatformwithrealdata•Createnotarizationandtime-stampingserviceonBlockchainwithOpentimestamp•Scalabilityandperformancetests•Businesscaseandcostmodelofplatform
INDUSTRY
CLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
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CONTAINER TRACEABILITY
Transport & LogisticsMediterranean Port Authority
•Setuphigherstandardsoftransparencyandreliabilityintheglobalshippingindustry•Reducethesheeramountofpaperworkandintermediariesinvolvedinfreighttransportation
•Ensurerealtimeend-to-endtraceabilityofthecargo,fromitsportoforigintoitsfinaldestination
StartingApril2018
Faster,morereliablepaperanddigitaltransactions.Globalshippingend-to-endtraceability
HyperledgerFabric&HyperledgerComposer
Theshippingindustryissubjecttostrictregulationduetoitsimportanceinprocurementandgloballogistics.Keyplayersareforcedtogothroughextensivebureaucracyinordertotransportgoodssafely.Blockchaintechnologycanimproveleadtimesandreduceuncertaintyalongthesupplychainforallpartiesinvolved
•Digitalizationoflargeamountsofpaperworkandprocesses•Improvementofcommunicationbetweencarriers,terminalsandfreightforwarders.•Problemtrackingandincidenceresolutionbetweenhauliers,freightforwarders,carriersandimporters
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
SHIPPER CARRIER TERMINAL CONSIGNEE
FREIGHTFORWARDER
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INTERNAL FINANCING
UtilitiesConfidential
•Reductionofmanualworkinvolvedinthecurrentprocess•Improvementintheeficiencyoftheinternalfinancingprocesses•Increaseintransparencyoftheprocessandthetraceabilityofthestagesofvalidation
January2018–June2018
Fasterprocess,reductionofmanualwork
EthereumQuorum
DevelopmentofanintercompanyfinancialcontractinBlockchain.Specifically,acreditlinebetweentwocorporationsbelongingtothesamegroup.Differentdepartmentsandrolescreateacontractinacollaborativeway,eachonecanonlycontributetotheirfieldsandoneofthemactsliketheoracleandvalidator.ImplementationoftrackingforissuingorchangingacontractfromtheParties
•TestingtheBlockchaintechnologyinordertodigitalizethefullcontractassignationprocess
•Timereductionforcreditlineapprovals•Fulltraceabilityinalltheprocess’stages
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
Company A requestfor Internal Funding
Blockchain managesthecontract
creationflow
InternalFinancingandotherinvolvedareascontributetothecontract
Whenthecontractisfinishedthe
AttourneyofbothCompaniesdigitallysignit
The contract islegally functional,
stored in Blockchainwith possibility of print it and trackabiility of all its
creation process
PLATFORMBLOCKCHAIN
24
UK TIER 1 RIPPLEXCURRENT SOLUTION
Banking Global Retail Bank
•Nearreal-timesettlementoffunds•Globalreductionofpaymentprocessingtimes•Fulldisclosureoffeespriortotransaction•Reductionofoperationalcoststhroughautomatedreconciliation•Minimisationofpaymentfailures
2yearproject(50%internalPoC/50%Industrialisation)
Faster,error-free,cost-efficientinternationaltransactions
RipplexCurrent
NTTDATAintheU.K.bankingandtechnologypracticeshavecontributedtotheimplementationofa“nearreal-time”paymentandsettlement-of-fundssystemthatreliesonDistributedLedgerTechnologytoprovidecrossborderpaymentservicestoa+14Mclientbaseofaglobalretailbank
•Allmaingoalsachieved•Seamlesscustomerexperience•Fullvisibilityofpost-settlementfundspriortotransaction
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
UKUSA EUROPE
£
$ €PAYMENTNETWORK
APPLE PAY
PAYMENTNETWORK
19Eurozonecountries
RipplexCurrent
25
UK TIER 1 RIPPLEXCURRENT SOLUTION
USING BLOCKCHAIN IN THEMULTI-PARTY CONTRACT PROCESSFOR RE-INSURANCE
InsuranceMulti-National Re-Insurance Company
Directcommunicationbetweenparticipantscanbeachievedbydigitalizingtransactionsbetweentheinsurancecompany-insurerandvendorsinvolvedintheTelematicsserviceandmanagingthosetransactionsthroughtheBlockchain.Hence,itisexpectedthatnetworkflowscanbeautomatedandmultipleparticipantscanenterintopartnershipefficiently
Timing-12Weeks;Team-5Members
Transparencyofinformation,tamperresistance,reductioninoperatingcostsandtransactiontime
Ethereum,IPFS
Thebusinessusecaseinvolvesmulti-partycontractmanagementforvehicleinsuranceusingtelematics.Telematicsinsurancedecidestheinsurancepremiumbasedonthevehicleusageandoperationdata(operationalstatusofaccelerator/brake,etc.)obtainedfromacommunicationsystem(device)installedonthevehicle
MultipleentitiesuseddedicatedBlockchainnetworksindemonstrationtestsandverifiedaseriesofbusinessprocessessuchascreating,storingandsendingdocumentssuchascontracts,estimates,responseforms,invoicesetc.ThedocumentsaresharedusingIPFS,adistributedfilesystem.Forthefrontendapplication,Dapp(distributedapplication)isused,whiletheAPIserviceisusedtoconnecttheBlockchainnetworkwiththeexternalsystem.Asaresult,thecontractprocess,sendingandreceivingofeachdocumentareexecutedefficiently.
INDUSTRYCLIENT
MAIN GOALS EXPECTED
TIMING AND TEAM
POC ENABLERS
BLOCKCHAINDLT PLATFORM
BRIEF DESCRIPTION
MAIN RESULTS ACHIEVED
26
USING BLOCKCHAIN IN THEMULTI-PARTY CONTRACT PROCESSFOR RE-INSURANCEInsuranceMulti-National Re-Insurance Company
INDUSTRYCLIENT
User repositorySmart contract
Client estimation Smart contract
Role repositorySmart contract
Vendor estimationSmart contract
WorkflowSmart contract
1 234
5 6 78
1011
12
1413
9
ETHEREUM PRIVATE BLOCKCHAIN IPFS DISTRIBUTED FILE STORAGE
NON INSURER(client)
INSURANCECOMPANY
INSTALLERVENDOR PAYMENTAGENCY
1.Contractestimationrequest 2.Estimationrequest
8.Sendinvoice
4.Sendapprox.estimation
Accesscontrol
3.Sendestimation
10.Payment
5.Contractexecution 6.Order
11.Paymentagencycontract
13.Paymentofbillingamount
14.Paymentofbillingamount
12.Issueinvoice
7.Senddevice
9.Sendinvoice
(Smartcontractpossessedbyinsurancecompany)
AUTHORS NTT DATA Blockchain Champions Team
CONTACT US NTT DATA Services USA
Blockchain Services
nttdataservices.com/blockchain