pot cop - demonstration of blockchain scenario - part 2 · bank of tokyo – mitsubishi ufj...

1Page© 2016 IBM Corporation© 2016 IBM Corporation

Making Blockchain Real for Business

Demonstration of Blockchain ScenarioPart II

V3.5 , November 21th

Guillaume HoareauCertified IT ArchitectBlockchain on IBM z Systems SME

2Page© 2016 IBM Corporation

Blockchain for business …

Append-only distributed system of record shared across

business network

Business terms embedded in transaction database & executed with transactions

All parties agree to network verified transaction

Ensuring appropriate visibility; transactions are

secure, authenticated & verifiable Privacy

Shared ledger

… Broader participation, lower cost, increased efficiency

Smart contract

Consensus


– Securities• Post-trade settlement

• Derivative contracts

– Trade Finance• Bill of Lading

• Cross-currency payment

– Syndicated Loans

– Supply Chain

– Retail Banking• Cross border remittances

• Mortgage verification & contracts

– Public Records• Real estate records

• Vehicle registrations

• Citizen Identity

– Digital Property Management

– KYC (Know Your Customer)

Potential use cases


HSBC, Bank of America, IDA Trade Finance - Letter of Credit

ABN AMRO Financial Restructuring & Recovery

Crédit Mutuel Arkéa Consortium Shared Ledger - KYC

Japan Exchange Group (JPX) Post Trade

Mizuho Digital Currency

IBM Global Finance Shadow Chain for Dispute Resolution

Everledger Diamond provenance

Bank of Tokyo – Mitsubishi UFJ Business Partner Contracts

CLS Bilateral netting service

UBS Digital trade finance

IBM Blockchain – Selected References


Not for all . . .

Blockchain is NOTSuited to high performance (millisecond) transactions

For just one participant (no business network)

A replicated database replacement

A messaging solution

A transaction processing replacement

Suited for low value, high volume transactions


Demonstration of Blockchain Scenarios

IBM Global Finance

Trade Finance, Letter of Credit


Benefits

1. Blockchain enables a comprehensive view of all IGF operations.

2. Significant reduction in number of disputes, reduction in dispute cycle time.

3. Improvement in productive use of working capital.

What • Over 4000 Supliers and Partners Woldwide

• $44 Billion Financed / Year

• 25000+ Disputes Every Year

• 2,9 Million Invoices / Year

How • Shadow Blockchain

• Combination of data provided by the participants in the network, creating a consolidated and detailed view of transactions that is visible to all parties.

Finality + Consensus –IBM Global Financing Services

Link: http://9.12.247.55:5040/


DEMO TIME

DEMO TIME 2


Use Case: Trade Finance

WhatReduce risk and increase automation to increase global trade financing which generates $50B in revenue for banks

How Increased visibility and trust across the participant.Decrease delays and manual effort via automation

ValueReduce inefficiencies and risk. Reduce cost of financing. Improve financing opportunities for SME. Enable new financing instruments

Deliverables

• Secure Letter of credit and associated documents

• Automated validation of documents

Plan

• Development: IRL, WRC• Scope: Letter of Credit

Approach

• Partner/Anchor customer: Trade Finance Leader

• Sign 2 design customer banks+ 1 Exporter/Importer


Traditional Trade Finance

Exporter’s

Bank

Importer’s

Bank

Transaction

Bank

Guarantees banking arrangement

& provides funding to buyer

Guarantees banking

arrangement & provides credit to

producers bank

Transport Firm A

Raw materials and

components

manufacturer

Transport Firm B Transport Firm C

Transport Firm D

Shipping FirmGood Producers Handling

Firm & Container Firm

Customs

Bonded Warehouse

Handling Firm &

Container Firm

Buyer, Seller of

Goods

Port Authority

Bonded Warehouse

Constraints: >10 parties, ~30 documents, physical

presence and overwhelmingly paper-based

WITHOUT BLOCKCHAIN


Traditional Trade Finance

Exporter’s

Bank

Importer’s

Bank

Transaction

Bank

Guarantees banking arrangement

& provides funding to buyer

Guarantees banking

arrangement & provides credit to

producers bank

Transport Firm A

Raw materials and

components

manufacturer

Transport Firm B Transport Firm C

Transport Firm D

Shipping FirmGood Producers Handling

Firm & Container Firm

Customs

Bonded Warehouse

Handling Firm &

Container Firm

Buyer, Seller of

Goods

Port Authority

Bonded Warehouse

Signature Signature

Signature

Constraints: >10 parties, ~30 documents, physical

presence and overwhelmingly paper-based

WITH BLOCKCHAIN

DEMO TIME

pot cop - demonstration of blockchain scenario - part 2 · bank of tokyo – mitsubishi ufj...

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