BLOCKCHAIN REVOLUTION

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Bonus Material

THE GOLDEN EIGHTBlockchain Transformations of Financial Services

F u n c t i o n B l o c k c h a i n i m p a c t S t a k e h o l d e r

1. Authenticating Identityand Value

Verifiable and robust identities, cryptographically secured

Rating agencies, consumer data analytics, marketing, retail banking, wholesale banking, payment card networks, regulators

2. Moving Value—make apayment, transfer money, andpurchase goods and services

Transfer of value in very large and very small increments without intermediary will dramatically reduce cost and speed of payments

Retail banking, wholesale banking, payment card networks, money transfer services, telecommunications, regulators

3. Storing Value—currencies,commodities, and financialassets are stores of value.Safety deposit box, a savingsaccount, or a checkingaccount. Money market fundsor Treasury bills

Payment mechanism combined with a reliable and safe store of value reduces need for typical financial services; bank savings and checking accounts will become obsolete

Retail banking, brokerages, investment banking, asset management, telecommunications, regulators

4. Lending Value—creditcard debt, mortgages,corporate bonds, municipalbonds, government bonds,asset-backed securities, andother forms of credit

Debt can be issued, traded, and settled on the blockchain; increases efficiency, reduces friction, improves systemic risk. Consumers can use reputation to access loans from peers; significant for the world’s unbanked and for entrepreneurs

Wholesale, commercial, and retail banking, public finance (i.e., government finance), microlending, crowdfunding, regulators, credit rating agencies, credit score software companies

5. Exchanging Value—speculating, hedging, andarbitraging. Matching orders,clearing trades, collateralmanagement and valuation,settlement and custody

Blockchain takes settlement times on all transactions from days and weeks to minutes and seconds. This speed and efficiency also creates opportunities for unbanked and underbanked to participate in wealth creation

Investment, wholesale banking, foreign exchange traders, hedge funds, pension funds, retail brokerage, clearinghouses, stock, futures, commodities exchanges; commodities brokerages, central banks, regulators

6. Funding and Investing inan Asset, Company,Start-up—capitalappreciation, dividends,interest, rents, or somecombination

New models for peer-to-peer financing, recording of corporate actions such as dividends paid automatically through smart contracts. Titles registry to automate claims to rental income and other forms of yield

Investment banking, venture capital, legal, audit, property management, stock exchanges, crowdfunding, regulators

7. Insuring Value andManaging Risk—protectassets, homes, lives, health,business property, andbusiness practices, derivativeproducts

Using reputational systems, insurers will better estimate actuarial risk, creating decentralized markets for insurance. More transparent derivatives

Insurance, risk management, wholesale banking, brokerage, clearinghouses, regulators

8. Accounting for Value—new corporate governance

Distributed ledger will make audit and financial reporting real time, responsive, and transparent, will dramatically improve capacity of regulators to scrutinize financial actions within a corporation

Audit, asset management, shareholder watchdogs, regulators

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OUT

Yes

No

OUT

IN

OUT

Uni

que

Cap

abili

ties

Yes No

Mission-Critical Capabilities

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THE IN-OUT MATRIX

OpenNetworkedEnterprises

(ONE)

DistributedAutonomousEnterprises

(DAE)

SmartContracts

AutonomousAgents

High

Low

Low

High

Com

plex

ity

Automation

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DISTRIBUTED BUSINESS ENTITIES

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GLOBAL SOLUTION NETWORKS