Blockchain… From POC to Pilot & Production DamiendeChillaz

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Blockchain - December 5th, 2016

ThisisBig!

Source:WorldEconomicForum–Aug2016

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Blockchain - December 5th, 2016

WhyisitconsideredaRevolu'on…notjustanothernicetechnology?

Blockchainisleveraginganumberoftechnologies§ Cryptography§ Tokeniza>on§ Cloud§ Distributeddatabases§ DigitalAssets§ Digitalsignature§ Smartcontracts§ API§ IOT,telema>cs

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Blockchain - December 5th, 2016

It’sallaboutTrust…

§ Re-engineeringTRUSTinfinancialservice§ ConsideredaRevolu>onasbigastheInternet§ TheInternetwasabouttheInternetofInforma'on(websites)§ BlockchainisabouttheInternetofValue(transac>ons)…muchmoretouchy!

§ Onamorephilosphicalnote…§  InourSharingEconomy,TrustisshiLingfrombeingcentralized/Ins'tu'onal…toDistributed/PeertoPeer(AirbnB,Uber)§ BlockchainistheTechnologywhichwillenablethisfundamentalshiL

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Blockchain - December 5th, 2016

Iknowthat«WhatIseeiswhatyousee»…SharedThruth

Source:R3

§ ImpactonFront-end § ImpactonOpera'ons§  Back&Middleoffice§  Financial&Reg.repor>ng§  Compliance&KYC

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Blockchain - December 5th, 2016

Somedefini>onsandconcepts

§ ABLOCKCHAINisatypeofdistributedledger(database),comprisedofImmutable,digitallyrecordeddatainpackagescalledblocks

§ Thesedigitallyrecorded"blocks"ofdataarestoredinalinearchain

§ Eachblockinthechaincontainsdata(StateObject),andiscryptographicallyhashed

Shared ledger

B1 B3 B2 B4 B5

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Blockchain - December 5th, 2016

Let’stalkaboutDistributedLedgerTechnology(DLT)…notBlockchain

§ ADISTRIBUTEDLEDGERisaconsensusofreplicated,shared,andsynchronizeddigitaldatageographicallyspreadacrossmul>plesites,countries,and/orins>tu>ons

§ AblockchainisjustonetypeofDLT§ TheBitcoinblockchain,whichuses“Proof-of-Work”Mining,isthemostpubliclyprovenmethodusedtoachievedistributedconsensus

§ DifferentCONSENSUSmechanismsexistsuchasCorda(R3),Ethereum,Ripple,Hyperledger,Eris

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Blockchain - December 5th, 2016

KeyDLTconcepts

Source:R3

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Blockchain - December 5th, 2016

Publicvs.PrivateLedgers

PUBLIC/PermissionlessLedgers§ Alsocalledunpermissionedledgers,allowanyonetocontributedatatotheledgerwithallpar>cipantspossessinganiden>calcopyoftheledger.

§ BebersuitedforPeertoPeerstrabsac>ons

PRIVATE/PermissionedLedgers§ Some>mescalledprivateblockchains,allowfordistributediden>calcopiesofaledger,buttoalimitedamountoftrustedpar'cipantsonly(Nodes)

§ Bebersuitedforapplica>onsrequiringsimplicity,speed,andgreatertransparency

§ DatasharedonaNEEDtoKNOWbasis§ BeWersuitedforregulatedFinancialIns'tu'ons

TRUTHMachine TRUSTMachine

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Blockchain - December 5th, 2016

DLThasthepowertoaddressanumberof«pain-points»

.

Smart Contracts: From Hype to Reality (Oct 2016)

Blockchain a fundamental shift for Financial institutions (Nov 2015)

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Blockchain - December 5th, 2016

McKinseyhasiden>fied7genuineusescasesandassociatedpainpoints…whichcouldgenerateUSD80bntoUSD110bninimpact

Source:McKinsey

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Blockchain - December 5th, 2016

OverviewofUsesCasesbeingexplored

. Retail & Wealth

Commercial Banking

Capital Markets

Insurance

• TradeFinance&SupplyChainFinance• Banksyndica>on• KYC/AML

• Mortgage• Consumerrewards&loyalty

• PostTradeseblement• ReferenceData(securi>es)

• AutomatedClaimsProcessing(P&C)• PeertoPeerinsurance

Payments & Cards

• Digitalcurrencies• Interna>onalFundstransfers&Remibances

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Blockchain - December 5th, 2016

Talkingabout«Rewiring»theFinancialServiceIndustry…

Source:R3

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Blockchain - December 5th, 2016

Collabora'oniscri>caltomakeithappen

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Blockchain - December 5th, 2016

KeyconceptsoftheCordaplaiormandSmartContracts

Source:R3

Programminglanguages:JAVA/Kotlin

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Blockchain - December 5th, 2016

Illustra>onoftheSmartContractsontheTradeFinanceworkflow

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Blockchain - December 5th, 2016

BenefitsofDLT

Source:R3

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Blockchain - December 5th, 2016

Significantdesignchallengeshaveyettoberesolved…collabora>vely

Source:R3

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Blockchain - December 5th, 2016

Nowisthe>metotakeitfromLabtoProduc>on…butHOW?

1 2

1

2

WHY&WHAT?§ 2014:BitcoinBuzz§ 2015:Inves'ga'on§ Consor>ums/WEFonFintech

§ 2016:Tes'ng&ThoughtLeadership§ PoCson30+«UseCases»§ WEFonBlockchain&Digitaliden>ty§ BlockchainentersC-Suite

HOW?§ 2017:FromPoCtoPrototype&Pilot!§ Collabora>onwillbekey!

•  Inside:IT,Ops,Digital,Business•  Outside:Peers,Industrygroups,Regulator,Integrators&Consultants

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Blockchain - December 5th, 2016

The5Ps…fromPoCtoProduc>on

PoC

Permission

Production

PrototypePilot

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Blockchain - December 5th, 2016

CapgeminiisyourPartnerinthisJourney…fromPoCtoProduc'on!

StrongDevelopmentcapacityLegderagnosFc

ArchitectscombiningexperFseonDLT,newtechnologiesandlegacysystems

StrategicPartnershipswithintheDLTecosystem(consorFums,SoMwareproviders,Fintechs)

LeadershipinDigitalTransforma:onBanks&Insurance+Otherindustries

UnderstandingofRegulatory&Legalenvironment(KYC,AML,Basel2,ACPR)

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Blockchain - December 5th, 2016

Truecollabora>onandleadershipisneededtomakeithappen…fast

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Blockchain - December 5th, 2016

Contact

Damien de Chillaz Vice President – Blockchain Community Leader Financial Services Capgemini France damien.de-chillaz@capgemini.com +33 6 64 85 63 07

www.capgemini.com

The information contained in this presentation is proprietary. © 2013 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.

About Capgemini With more than 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore ®, its worldwide delivery model.