Real World Insurance Application of iXBRL with Hyperledger...
Transcript of Real World Insurance Application of iXBRL with Hyperledger...
Real World Insurance Application of iXBRL with Hyperledger Blockchain Technology
Dennis Knochenwefel CEO, Reportix
Reportix
• Founded in 2017 • Focus: Advanced data management and analytics solutions for XBRL • References:
Prof. Dr. Philipp Sandner
Prof. Dr. Alexander Braun
Prof. Dr. Frederik Armknecht
• Blockchain Research Partners:
What is Blockchain?
Tamper-proof distributed ledger.
Verifiable, immutable, traceable
Ledger = transactions &
states
No centralized authority = “trustless”
What does Blockchain solve?
With DLT: consistent, efficient, reliable, transparent,
immutable
Read-Write
Read-Write
Read-Write
Read
Data A
Data B
Data C
Data D
Without DLT: inconsistent, expensive, inefficient,
questionable
Creates Trust in an environment of mistrust
Crypto-
Currencies
Smart Contracts
Distributed Ledger Technology
Distributed Database
Database Management System
Classification of Blockchain Technology
Adapted from Dr. Udo Milkau, DZBank, 4/2017: „Blockchain im Banking – von BitCoin bis „Beyond Blockchain““
Blockchain
Spec
ializ
atio
n
Breadth of Functionality
Types of Applications
•send value from A to B •data: values •most mature •very good for cross border remittance
•example:
•manage simple values •supports simple business logic
•very good for simple use cases that need blockchain characteristics
•example:
•manage complex data •supports complex business logic
•very good for complex use cases that need blockchain characteristics
•example:
Payments (since 2008)
Smart Contracts (since 2013)
Immutable Database (since 2015)
EverContract
What is the problem with Smart Contracts? Part 1
On-Ledger
Immutable “Transaction-Data”
Blockchain Implementation Example:
Advantage: + Immutable / unstoppable execution Disadvantage: - Immutable / unstoppable execution
contradicts implied covenant of good faith and fair dealing
What is the problem with Smart Contracts? Part 2
“Introduction to Smart Contracts”, http://solidity.readthedocs.io/en/develop/introduction-to-smart-contracts.html
Smart Contract example
Smart Contract = Smart + Contract ???
iXBRL as an Extensible Smart Contract (Ricardian Contract)
Advantages: + Readable by non-programmers + Looks like a normal contract / report / form + Machine readable embedded “tagged” data + not proprietary!
Example iXBRL „Ricardian Contract“
Smart Contract = Smart + Contract
Implementation based on Hyperledger
Hyperledger project, https://www.hyperledger.org/about/members
EverContract: Extensible Smart Contracts
EverContract
Smart Contract: - Validation - Verification - Evolution - Incidents - Analytics - Processing
Insurance Policy Registration Form Report Content: - Legal Prose - Facts - Documentation - Data Definitions - Validation Code - Verification Code - Processing Code - Inheritance - Modularization
EverContract Architecture
Cf.: http://www.daniel-rehbein.de/bildschirmtext.html http://personofinterest.wikia.com/wiki/ARPANET_Outage_Data_Breach
US: ARPANET
AT-D-CH: BTX
Blockchain without standardized Data is like the Internet without HTML
!
Why XBRL?
Cf.: Moritz Gerdes, Comdirect, 4/2017: „Hype oder Game-Changer? Blockchain-basierte Innovationen und Zukunftsszenarien“
So, what’s the real world application???
The 2 year Project
Prof. Dr. Philipp Sandner Head of Blockchain Center, Frankfurt School of Finance & Management
Supported by:
Added Value for a future Insurance ecosystem
The Insurance Market becomes individual and dynamic
Blockchain: Creating trust in a dynamic world XBRL: Creating interoperability with Standards-based Technology Market Reach: 75% in Germany
Summary
Uses XBRL to: • create efficient data exchange • governed, high quality,
validated data collection Could profit from blockchain to: • create trust • create a single source of truth • create immutable data
collection
Uses Blockchain to: • create trust • transparency • efficiency across multiple
entities Can profit from XBRL to: • create legally sound documents • Non-proprietary data exchange • Ricardian Contracts
Regulatory World Operative World