Blockchain - From POC to Production

Blockchain… From POC to Pilot & Production DamiendeChillaz

2 Copyright © Capgemini 2016. All Rights Reserved

Blockchain - December 5th, 2016

ThisisBig!

Source:WorldEconomicForum–Aug2016



WhyisitconsideredaRevolu'on…notjustanothernicetechnology?

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



It’sallaboutTrust…

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

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



Iknowthat«WhatIseeiswhatyousee»…SharedThruth

Source:R3

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



Somedefini>onsandconcepts

§ ABLOCKCHAINisatypeofdistributedledger(database),comprisedofImmutable,digitallyrecordeddatainpackagescalledblocks

§ Thesedigitallyrecorded"blocks"ofdataarestoredinalinearchain

§ Eachblockinthechaincontainsdata(StateObject),andiscryptographicallyhashed

Shared ledger

B1 B3 B2 B4 B5



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



KeyDLTconcepts

Source:R3



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



DLThasthepowertoaddressanumberof«pain-points»

.

Smart Contracts: From Hype to Reality (Oct 2016)

Blockchain a fundamental shift for Financial institutions (Nov 2015)



McKinseyhasiden>fied7genuineusescasesandassociatedpainpoints…whichcouldgenerateUSD80bntoUSD110bninimpact

Source:McKinsey



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



Talkingabout«Rewiring»theFinancialServiceIndustry…

Source:R3



Collabora'oniscri>caltomakeithappen



KeyconceptsoftheCordaplaiormandSmartContracts

Source:R3

Programminglanguages:JAVA/Kotlin



Illustra>onoftheSmartContractsontheTradeFinanceworkflow



BenefitsofDLT

Source:R3



Significantdesignchallengeshaveyettoberesolved…collabora>vely

Source:R3



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



The5Ps…fromPoCtoProduc>on

PoC

Permission

Production

PrototypePilot



CapgeminiisyourPartnerinthisJourney…fromPoCtoProduc'on!

StrongDevelopmentcapacityLegderagnosFc

ArchitectscombiningexperFseonDLT,newtechnologiesandlegacysystems

StrategicPartnershipswithintheDLTecosystem(consorFums,SoMwareproviders,Fintechs)

LeadershipinDigitalTransforma:onBanks&Insurance+Otherindustries

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



Truecollabora>onandleadershipisneededtomakeithappen…fast



Contact

Damien de Chillaz Vice President – Blockchain Community Leader Financial Services Capgemini France [email protected] +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.

Blockchain - From POC to Production

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