Blockchain - a platform for Digital Transformation

Blockchain - a platform for Digital Transformation

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  Floyd DCosta Harnessing thepotential of Blockchain technology for enterprise Digital Transformation Digital next-gen products and services Smart contracts for process automation Decentralized business and financial networks
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  www.BlockchainWorx.com 2 Business istransforming and ageing enterprise platforms are inadequate and unprepared for the fast evolving ‘digital’ world Legacy platforms will need to be swiftly upgraded if technology is expected to effectively support the Digital Transformation goals of the business Existing systems, based on traditional technology, are unable to keep pace with the growing volume of data, a slew of new digital channels and the complexity of modern business transactions Growing volumes of data driven by the wave of new digital services Highly complex transactions involving a host of parties and requiring detailed inter-institution collaboration Too many system and data silos with limited integration, automation and on- the-go visualization / analytical capability Diminishing trust in regularly-compromised systems
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  www.BlockchainWorx.com 3 The Blockchain, acryptographic ledger comprising a digital log of transactions shared across a public or private network, can address key pitfalls of digital transformation programs – id, security and trust How a blockchain works ImmutableCryptographically Secure Blockchain Consensus driven Open source value transfer protocol Distributed P2P network Secure math-based system Decentralized The first electronic value transfer protocol A wants to send money to B The transaction is represented online as a `block’ The block is broadcast to every party in the network Those in the network approve the transaction is valid The block that can be added to the chain, which provides an indelible and transparent record of transactions The money moves from A to B 1 2 3 4 5 6 Key features of Blockchain technology Blockchain technology, by its very nature, lends itself to the digital transformation journey of an enterprise
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  www.BlockchainWorx.com 4 Blockchain canbe a powerful tool anywhere trading occurs, trust is at a premium and people need protection from identity theft Source: Image adapted from Citi research, Strategy+Business, Blockchain offers a robust distributed transaction infrastructure, well suited for collaboration within and across institutional boundaries and are especially effective in establishing trust in a trust-less environment Distributed ledgers have potential to radically change the future of transaction and records based industries Financial intermediaries (Today) • Requires trusted, centralised intermediaries • Batch clearing and settlement • Higher fees and costly infrastructure Clearing house (centralised ledger) Financial network (distributed ledger) Blockchain protocol (Emerging) • No intermediaries required • Faster processing and management • Lower fees and reduced infrastructure cost
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  www.BlockchainWorx.com 5 Institutions areexperimenting and investors have poured millions of dollars into Blockchain related firms From digital identity and asset tokenization to using smart contracts to automate business processes, Blockchain technology is swiftly establishing itself as a key enabler of the emerging digital enterprise (and ‘smart’government) environment Source: CNN Money, Coindesk, Citi Research Large financial institutions experimenting Blockchain Ventures Accelerator USD millions invested in Blockchain start-ups Use Case / Application Record BLOCKCHAINPlatform CROSS-BORDERPAYMENTS ESCROW&CUSTODY SERVICES SUPPLYCHAIN&TRADE FINANCE CUSTOMERACQUISITION& LOYALTY CURRENCY FINANCIALSECURITIES& TRADING LOGISTICS&ASSET TRACKING INTELLECTUALPROPERTY RIGHTS ASSETS REALESTATE&PROPERTY SUPPLYCHAIN MANAGEMENT DIGITALRIGHTS MANAGEMENT INSURANCE LEGAL CONTRACTS IDENTITYMANAGEMENT FILESTORAGE&SHARING ELECTRONICMEDICAL RECORDS AUDITINGANDCOMPLIANCE DATA INTENETOFTHINGS VOTINGANDGOVERNANCE SYSTEMS COLLABORATIVEECONOMY OTHERSTOBEDETERMINED P2P
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  www.BlockchainWorx.com 6 Getting Started:A 4-Part Framework to get started thinking about the Blockchain within an enterprise (or smart government) context Blockchain, the revolutionary shared ledger technology, has now begun to acquire a new identity in the enterprise – becoming a key platform for Digital Transformation How to think about the Blockchain Source: Adapted from The Business Blockchain Development Utility Marketplace Trust  Record Keeping, Verification, Proofs  Custody, Rights, Titles  Identity And Naming  Creating / Moving Values (Assets)  Storing Values (Cryptocurrency)  Processing Transaction And Logic  Creating new economies  A work/reward system  Sandbox for money + business  A New Development Environment  Programing Money / Value  Dealing with Ledgers Instead Of DB’s
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  www.BlockchainWorx.com 7 A 5-StepMethodology to harness the potential of Blockchain technology within and beyond the enterprise A structured approach will help organizations to explore possibilities, experiment with the technology, and develop innovative blockchain-based solutions in a cost effective way 1 2 3 4 5 Select guiding principles:  Perform a comprehensive assessment of opportunities from a business, technology, and the legal standpoint of using blockchain technology  Set up a lab. Start small. Begin with select processes that could be showcased to a wider audience to highlight benefits and prime adoption.  Evaluate. Invest in technology and expertise related to blockchain. Secure alignment. Press for industry-wide change.  Collaborate and work together to design solutions for specific use cases and processes. Form consortia and work with regulators early in the process. • Understand application of Blockchain tech. for specific use cases • Secure exec sponsorship. • Setup a working group • Explore and validate hypothesis • Design PoC engagement • Select and on- board PoC participants • Kick-off project • Develop prototype application • Test use cases. • Review PoC • Evaluate options • Move to mainstream deployment (in a phased approach)
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  www.BlockchainWorx.com 8 4-Considerations tohelp move blockchain experiments from the lab and towards mainstream deployment Blockchain technology needs to fit into the enterprise IT fabric and be integrated with core systems and processes Need of the hour Current State Part of the overall business strategy and Digital Transformation Isolated, independent experiments Integrated with and leverage the extended enterprise IT landscape Disconnected. Detached from core systems Inter-departmental, Inter-agency, as part of an enterprise consortium / network Standalone or one-off transactions between two department / enterprises Ecosystem collaboration platform with synchronous real- time processing for global value chains Independent, single- industry network blockchains Participation in industry consortia and engaging with regulators early in the process to collaboratively design solutions for specific use cases (especially inter-institutional ones) will help bring the solution swiftly and more effectively to deployment
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  www.BlockchainWorx.com 9 Take TheFirst Step: Identifying the right pilot use cases will highlight the potential of the technology to all stakeholders Intra-institution Inter-institutionCollaborationSecurity Trust Transparency Disinter- mediation Blockchains are best suited for situations where there is a distinct need for a select set of values A distributed transaction infrastructure, for collaboration within and across institutional boundaries
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  www.BlockchainWorx.com 10 Learn howyou can design, develop and deploy modern digital business platforms and harness the potential of Blockchain technology for Digital Transformation Drop us a line or reach us via any of the channels below: Get in touch +65 96536243 +91 9320930671 @blockchainworx [email protected] www.blockchainworx.com