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

2. Distributed Ledger and Blockchain
Allens – Linklater – Blockchain Reaction

3. Centralized vs Distributed Ledgers - First Pillar

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

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

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

7. Blockchain Benefits

8. 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

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

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

11. 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

12. Financial Services Commitment to Blockchain – To Date

13. Financial Services & Blockchain – Key Findings

14. Technology Convergence – Blockchain will be an Enabler

15. The Financial Services Challenge is Material

16. 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

17. Allens – Linklater – Blockchain Reaction
Sources
Allens – Linklater – Blockchain Reaction
World Economic Forum – The Future of Financial Infrastructure