Deloitte Shared Services Conference 2018Focus 17: Blockchain: replacing hype with reality

Anthony Day, COO, Deloitte EMEA Blockchain LabGavin Pacini, Lead Architect, Deloitte EMEA Blockchain Lab

EMEA Blockchain Lab

A new technology,for a new age.

THE EMEA BLOCKCHAIN LAB

We are able to draw on Deloitte’s renowned industry expertise and technical knowledge across Technology, Strategy and Operations, Human Capital, Tax, Legal, Risk Advisory and

Cyber Risk to build truly transformative Blockchain solutions.

Disruptive Technology

Blockchain Strategy

Proposition Development

Consortium Management

Live Productions

Enterprise Transformation

Our blockchain team focuses on: Leaders from over

300 client organisations have come to Deloitte’s Labs to have their Blockchain ambitions brought to life.

D E L O I T T E G L O B A L B L O C K C H A I N C O M M U N I T Y

Spoke LabsHub Labs Ecosystem Partners

Clients Using Blockchain

Community of Practice

JIRA

GIT

Trello

Dokuwiki

Bitbucket

Tech. Ecosystems

Bitbucket

Confluence

Docker

Linux Ubuntu

Windows Server

MEAN Stack – MongoDB, Express, Angular NodeJS

Web3 API

Python

Java

.NET

Integration

BigChain DB

Bitcoin

Corda

EOS

Eris by Monax

Blockchain Core

Experience

Ethereum

Hyperledger

IPFS

Multichain

Quorum

GLOBALLY

: Deloitte has built 50+

blockchain proof-of-

concepts (POCs) and

prototypes for

industries including

Financial Services &

Insurance, Life

Sciences &

Healthcare, Consumer

& Industrial Products,

and Cross-Industry

Arttracktive

Auto Lending – LendSmart

Bancassurance

Bonded Loans Platform

Business Registry

Business to Business (B2B) Payments

Charity Dao

Cross Border Payments

Customer Onboarding

Digital Identity | SmartID

Double Financing Alert

EduScrypt

Fund Distribution

Insurance Cancellation Management

Insurance FNOL

Know Your Customer (KYC) Utility

Lender Bot

Liquidity Coverage Ratio (LCR) | RegChain

Loans Management (SAP/HANA & Blockchain)

Loyalty and Rewards | DCoins

Markets in Financial Instruments Directive II (MIFD II) | RegChain

Money Market Investment Funds (MMIF) | RegChain

Patient Health Data Sharing (Clinical Trials Consent)

Real Estate Contracts

Reinsurance

Supply Chain Traceability | TraceChain

Examples include: Smart identity, certification, payments, traceability, smart contracts, distributed workflow, regulatory reporting, and more…

Timestamping

Trade Finance (Mercury)

Trade Finance (Letter of Credit)

Transaction Reporting (AIRMES)

Transfer Pricing

Uvote

Warranty

£

Inefficient, Intermediated

Decentralised, Secure

Peer-2-Peer Network

Customers

Businesses

Banks

Insurers

Suppliers

Investors

Regulators…

… Anyone

A decentralized, distributed ledger that provides a way for information to be recorded, shared and maintained by a community.

ABC

ABC

ABC

ABC

ABC

ABC

A network of comp uters , connect ed v i a t he

In t er net , i n w h i ch user s a t any one

comp ut er can rece i ve or send p eer t o p eer :

V a l u eI d e n t i t y D a t a

A decentralized, distributed ledger that provides a way for information to be recorded, shared and maintained by a community.

The majority of focus for Deloitte clients today is around Private, Permissioned BlockchainsPermissionless Permissioned

Public

PrivateEnterprise Ethereum

Not possible

• Public: all information is transparent to all participants

• Private: information is available on a need to know basis (e.g., trade counterparties, regulators)

• Permissionless: access to the network is unrestricted.

• Permissioned: all network participants are clearly identified (like existing systems)

For the vast majority of enterprise use-case, a permissioned and private network is usually the best fit

1. Value identification

Do you often share information, credentials or value with others?

Do you need to prove to others you transact / report accurately?

Is there presence of intermediaries to enable trust today?

Are you managing contractual relationships?

Do you want / need to enable transparency of transactions?

Is trust a critical requirement / challenge?

Do you need transaction privacy?

Do you need transaction anonymity?

Is there inefficiency or manual hand-offs between multiple parties?

Is there potential to monetise the data or digital assets in your value chain in future?

2. Participant ecosystem

Do you have a network of stakeholders (i.e. more than 2)?

Does more than one participant need to update the data?

Do you work with other industry players on any activities?

Are you dependent on other stakeholders for information?

Is there a need for a central, controlling authority among the participants?

Is there scope to open the ecosystem to ancillary parties in the future?

3. Technical feasibility

Is it easy to digitise assets in your value chain (if not digital today)?

Are there clear standards for artefacts and activities?

Do you need to store a rich or complex data structure?

Is there an ongoing need for high data throughput?

Do you need to rely on public data sources to inform activities or decisions? (e.g. markets data, prices)

4. Showstoppers!!

Do you own the problem? (Or is this a wider industry challenge)

Can it be done better today with another technology / technologies?

+ +

+

Cross Border Payments

The ability to leverage blockchain technology to support near real time cross border payments e.g. Ripple payments protocol

Regulatory Qualifications

A blockchain solution to deliver the secure sharing of professional qualifications across multiple organisations, where the data is fully authenticated via a privatekey

Smart Assets / Securities

Deloitte partner Symbiont operates a smartsecurities platform which allows for complex financial instruments to be digitised and live their lifecycle on a decentralised network

Applications across the banking value chain could fundamentally transform operating models

Trade Finance

Using a blockchain based system to bring all parties in the trade finance ecosystem onto a single platform to ensure real time information sharing and automated payments via smart contracts

Collateral management

Escrow is used to store collateral; the asset is frozen (encumbered) while it is being leveraged as collateral and returned when collateral isreleased via smart contract automation

Clearing & Settlement

Using blockchain in as a platform to facilitate settlement in the post trade environment bringing down settlement times and automating reporting on same

KYC & Identity

Digitization of client identities linked to clientactivity on a distributed ledger improving AML& KYC focusing on delivering improved customer and employee experience

Syndicated Lending

A lending agreement is shared on the Blockchain; then the security, collateral and payments are automated on Blockchain and side chains

Proxy Voting

Digital identities (public keys) are assigned voting tokens based on positions, private keys enable the voter to cast and verify an anonymous vote digitally

Regulatory Reporting

Self-service reporting for regulators andother external entities by participating as a node on the network

Intercompany Reconciliations

Interoperable side chains for in house systems improve data quality and automate the reconciliation process between branches and regions

Bonded Loans

Ethereum-based solution seamlessly forming B2C contracts and enabling receivables assignment between customers. Integrated with SAP

Customer-Facing1

Aircraft Management

Aircraft Leasing

• Tokenising loyalty points - travelers can redeem instantly value, airlines dramatically reduce fees to intermediaries

• Automatic insurance payouts when flights or luggage is delayed or lost

• Track aircraft lifecycle from ownership / lease to maintenance and repairs

• Speed up due diligence and enforce the use of genuine parts management

• Pay-per-use for parts and equipment

• Integration with payment systems (or tokens) using smart contracts

• Distributed ledger for aircraft ownership

• Smart contracts to automate wet lease payments of aircrafts between airlines

• Combine with IoT sensors already installed for accurate, paperwork-free settlement

• Distributed, real-time ledger of airport slots with real-time bidding

• Track luggage handling on a single Blockchain, readable by passengers or luggage desks

Airports

Aviation Blockchain Use Cases

• Execute interline agreements via smart contracts

• Single source of truth to manage customer service when passengers are using multiple airlines

Alliances / Interlining

2

3

4

5

Know Your

Customer / Supplier

Qualifications

Management

Supply Chain

Track & Trace

Business

Certification

Intercompany

Reconciliation

Thank you.Anthony DayCOO, EMEA Blockchain LabContact: anday@deloitte.ie

Gavin PaciniLead Architect, EMEA Blockchain LabContact: gpacini@deloitte.ie

This publication has been written in general terms and we recommend that you obtain professional advice before acting or refraining from action on any of the contents of this publication. Deloitte MCS Limited accepts no liability for any loss occasioned to any person acting or refraining from action as a result of any material in this publication.

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