2. Blockchain: What Board Directors Need to Know
Presented to:
Cal CPA & National Association of Corporate Directors Membership
Presented by:
Manoj K. Kashyap, PwC Partner
Christa Steele, Board Member and Former Public Co CEO
May 2, 2019

3. Christa Steele
Board Director of OFG Bancorp (NASDAQ: OFG), Puerto Rico; Recology, CA.; Sasser Family Holdings, IL; the NACD Northern California Chapter; and Pacific Coast Banking School, WA

4. Manoj Kashyap
Assurance Partner in the Banking and Capital Markets group of PwC's U.S. Financial Services practice, Leader of PwC's U.S. Assurance FinTech practice

5. Agenda What is blockchain? How is blockchain used in companies?
What is the future of blockchain in the new digital world?
Challenges and risks that board directors should know

6. A distributed, tamper proof digital ledger.
What is blockchain?
A distributed, tamper proof digital ledger.
Transactions are verified through consensus — participants confirm changes with one another — and cryptography ensures data integrity and security. This eliminates the need for a central certifying authority.

7. Blockchain enables these business benefits in a shared ecosystem…

8. …and the key technical concepts that come together to make it work and different from existing solutions
Cryptography
Integrity and security of the information on the blockchain are ensured with cryptographic functions
Distributed ledger
Every participant in the network has simultaneous access to a view of the information
Consensus
Verification is achieved by participants confirming changes with one another, replacing the need for a third party to authorize transactions
Smart contracts
The ability to run additional business logic means that agreement on expected transaction behaviors can be embedded in the blockchain

9. How blockchain works:

10. How is blockchain used in companies?

11. Characteristics where blockchain makes sense:

12. Use cases & proof of concepts

13. Capital Infrastructure Projects
Developing themes
Capital Infrastructure Projects
Humanitarian Aid
We’ve seen several themes emerge across industry sectors over the last 3+ years

14. Companies implementing blockchain

15. What is the future of blockchain in the new digital world?

16. The digital innovation melting pot
Frightening, exciting, or a little bit of both?
Where your business, social media, AI, wearables, blockchain, IoT, open API’s, big data and predictive analytics converge.

17. Incumbent company dilemma
Denial
Knowledge
Resources

18. Platform, software provider or both?
The race to space
Who will be the leading platform provider?
Platform, software provider or both?

19. Platform vs. software providers

20. Challenges and risks that board directors should know

21. Blockchain barriers to entry
Legal
Tax
Accounting
Audit
Cost benefit
Consensus
Adoption
Scalability
Governance
Simplicity
Regulation
Security
Timing
“Tamper Proof”

22. What boards need to know
Key takeaways

23. Q&A
Thank you!

24. Feedback + Survey Survey Link Contact Us:
NorthernCalifornia.NACDonline.org

25. Thank you to our Northern California sponsors