Blockchain A Distributed Ledger Technology Josh Death – AVP Legal Oct 25th, 2016

Distributed Ledger and Blockchain Allens – Linklater – Blockchain Reaction

Centralized vs Distributed Ledgers - First Pillar

Distributed Ledgers - Public vs Private – Second Pillar Allens – Linklater – Blockchain Reaction

Smart Contracts – Not Smart, or Contracts – Third Pillar Allens – Linklater – Blockchain Reaction

A Basic Blockchain Tech Example – Public or Private/No Smart Contracts

Blockchain Benefits

Ubiquitous Data State or Fantasy? Current State Patient Target State Patient Ministry of Health Doctor Specialists Pharmacist Drug Insurance Ministry of Health Doctor Specialists Pharmacist Drug Insurance Patient History Regulatory Insurance Diagnostic Imaging Drug Info Systems Public Health Data Laboratory Information Systems (LIS) Drug Information Systems (DIS) Laboratory Information Systems (LIS) Drug Information Systems (DIS) Challenges Resolution Fragmented, redundant, and inconsistent data Incomplete view of transaction end-to-end Multiple opportunities for data breach Common shared book of record, one source of truth Accurate and complete end-to-end view Improved security

Systemic Risks with Blockchain – Part 1 Allens – Linklater – Blockchain Reaction

Systemic Risk with Blockchain – Part 2 Allens – Linklater – Blockchain Reaction

Development: Management: Platform: Data Quality: True collaboration Implementation and Operational Risks Development: True collaboration Novel business models/technology/code Third party IT company Management: Who maintains it? Is it hosted? Governance Platform: OSS is often used Proprietary platforms/integration Fractured/siloed applications – middleware likely key Patents arms race Data Quality: Garbage in/garbage out

Financial Services Commitment to Blockchain – To Date

Financial Services & Blockchain – Key Findings

Technology Convergence – Blockchain will be an Enabler

The Financial Services Challenge is Material

Expectations Maturity Hype or Hope? Peak of Inflated Expectations June 2016 Blockchain Technology Gets a Hearing Inside the Fed's Headquarters Crowdfunding for the DAO (Decentralized Autonomous Organization) reaches $160+mm (Ether) State of Delaware unveils progressive blockchain initiatives, other states follow suit VC funding in Bitcoin-related companies reaches $1.1B Monies raised for blockchain and hybrid startups surpass funding for Bitcoin. Linux Hyperledger Project: launched, 40 broad members including FI's, R3 and DAH, IBM, Intel, Chain, etc. Two consortia launched specifically focused on financial services industry; R3 CEV (42 global banks), Digital Asset Holdings (13 varied members, securing $60+MM in funding) NASDAQ launches Linq, a blockchain-powered trading platform Santander announces distributed ledger technology could save banks $20bn a year by 2020 Version 0.1 of Bitcoin global digital currency is released Satoshi Nakamoto publishes initial while paper; "Bitcoin: A Peer-to-Peer Electronic Cash System" Expectations DAO crowdfunding entity hacked, over $50MM of Ether stolen from crowd-sourced investment pool March 2016 Plateau of Productivity Slope of enlightenment Trough of Disillusionment Technology Trigger Maturity 2008 Gartner Technology Maturity Curve

Allens – Linklater – Blockchain Reaction Sources Allens – Linklater – Blockchain Reaction https://www.allens.com.au/data/blockchain/index.htm World Economic Forum – The Future of Financial Infrastructure https://www.weforum.org/reports/the-future-of-financial-infrastructure-an-ambitious-look-at-how-blockchain-can-reshape-financial-services