Faster Payments on the Blockchain
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Transcript of Faster Payments on the Blockchain
Agenda
IntroductionsPayments Challenges
Why Blockchain?Case Studies of Faster Payments on the BlockchainNext Steps
Blockchain Ecosystem
Brokerage ExchangeWalletsInsurance
Compliance
Payments
Trading Platforms
Trade Finance
Capital Markets
Money Services
Finance Data
Middleware and Infrastructure
Customers
“The lack of a real-time, or faster-payment system puts U.S. businesses and
consumers at a disadvantage”
“Technology is rapidly changing many elements that support the payment process…This is changing the nature of commerce and end-user expectations for
payment services.”
June 6th, 2016NACHA Government Relations: Faster Payments in the United States
January 26th, 2015Strategies for improving US Payment System
Payments Today
• Mostly Batch Oriented• Geographically Siloed• Lack of interoperability• Centralized• Relatively Secure
A new reality…
IOS 10 offers (Bitcoin) Payments directly integrated in iMessage
eMarketer forecasting 210% growth in the total value of mobile payment transactions in 2016—up to $27.05 billion from $8.71 billion
• Desktops• Mobile devices• Servers• Watch• IOT• Device to Device
• Customers• Employees• Governments• Things
• Bank Platform• Cloud• Private Network• Public Ledger
• Micro Payments• Smart Contracts• Multi-Signatures
Any Device
Any User
Any Platform
Any Service
Cryptographically Secure
Decentralized
Data & Smart Contract
Immutable Ledger
Blockchain is a distributed register to store static records and/or dynamic transaction data without central coordination by using a consensus-based
mechanism to check the validity of transactions.
Reduce Cost
Increase Revenue
$
Reduce Risk
Increase Speed and Customer Satisfaction
$12B Estimate Savings on Clearing Costs (Goldman Sachs)
$10B Global spend on AML compliance
New Fee Revenue Stream connecting Smart Contracts to Payment Services
“Capgemini Payment Around the World Experiment” ( 4 Cities / 1 Hour )
Company Challenges
● Legacy infrastructure
● Expensive, slow partner onboarding
● Fickle customer retention
● Lack of usable and scalable
blockchain testing environment
User Challenges
● Bank wires can take weeks, slow processing
● High transfer fees and exchange rates
● Currency fluctuations
Faster, Lower Cost
Payments and Rewards
Address API
Transaction API I
Merchant
Customers
Benefits
● $5.2M in fraud prevention
● $2.2M in salary savings● 35% faster time to
market● Improved code
maintenance
Solution
● Faster, more secure and user- friendly digital payments
● BlockCypher Ethereum APIs used to process payments, fraud checks
Payroll
Solution
● Bitwage provides platform for payroll and invoicing
● BlockCypher validates addresses, identifies transactions likely to confirm
Benefits
● Faster time to market● Payments within 2 days ● 30+% in cost savings
due to automation● Faster clearing and
settlement
Invoice
Next Day Payment
Address API
Transaction API I
P2P Payments
Solution● Abra enables person to
send payment to any mobile phone
● BlockCypher provides notifications (e.g. for payments) and test environment
Benefits● Users protected from
market volatility● Faster deposits ● ~30% development cost
savings from using BlockCypher’s test environment and notifications
Deposit $200 (XBT spot at 200)
Send $200
(XBT spot at 160)
Lender
(XBT spot at 160)XBT down 20%,Abra holding 1.25 XBT
BCYWebhooks
Company Challenges
● Anti-fraud catch up● Lack of preventative, monitoring
systems● Need to identify intentional double
spends● High cost of fraud
User Challenges
● New account fraud increased 113%, now 20% of all fraud
● 72% of loyalty program managers experiences issues related to fraud
Secure
B2B Payments
Solution
● Blinktrade provides platform for instant transactions on blockchain
● BlockCypher quickly identifies fraud and transactions likely to confirm
Benefits
● Users receive credit to trade immediately
● Faster deposits ● 33% in cost savings due
to automation● Fraud identified● Easier for Blinktrade to
acquire partners
ExchangeConfidence FactorDouble Spend WebhookTransaction API
Deposit
Credit
“There are only a handful of companies that provide [blockchain] services. BlockCypher is excellent. Their product is simpler to implement and works better than other services. We also think highly of the team.
We will continue to need more services to interact with the Blockchain, and we’d much rather use BlockCypher’s services than build our own.“ - Wences Casares
B2C Payments
United States Citizenship and Immigration Services.
U.S. Customs and Border Protection.
Federal Emergency Management Agency.
U.S. Immigration and Customs Enforcement.
Transportation Security Administration.
United States Coast Guard.
National Protection and Programs Directorate.
United States Secret Service.
Data Management and Analytics
U.S. Department of Homeland Security
Identity Management
Solution
● User manages identity (e.g. biometrics) on Shocard mobile app
● BlockCypher publishes identity to blockchain
Benefits
● 6 months saved in ramp up time
● 35% costs saved in development
● Increased scalability and reliability
● Improved code maintenance
Transaction API
Authentication
Blockchain Client Architecture
Peers
Chain
Pool
Scripting
Validation
Store
WalletAddresses
Crypto
Miner
Primitive APIs
Wire Format
≈ Running Excel as database, Designed for Individual Users
Bitcoin and Ethereum clients
Bitcoin
Custom
Performance at Scale
● Multiple blockchains on same infrastructure
● Multiple datacenters● No single point of failure● Secure & hardened servers● Linear scaling● Uptime 99.999+%
Cloud-optimized, enterprise-grade blockchain infrastructure
Blockchain-agnostic infrastructure
Ethereum