Bringing the global supply chain into the digital age with BIS DVP Model 1 unconditional Settlement with Legal finality.

1. Global Supply Chain
Done Right?
BLOCK CHAIN LEDGER MARKETPLACE
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2. Today
 Friction in supply chain is a big problem.
 There are too many go-betweens.
 There is too much to-ing and fro-ing.
 The rise in uncertainty stops supply chains from working well.
 Suppliers, providers and clients must deal via central third-party entities,
instead of directly with each other.
 What should be simple transactions turn into lengthy procedures with
many steps, and unmanageable and often asymmetric risk profiles
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3. Modern Alternative to Bill of Exchange
Delivery vs Payment
• Involves 4 parties, Vendor, Customer, V-bank, C-bank
• Execute DVP Model 1 settlement at point of contract formation
• Assign shares to 4 parties
• Set threshold to require 3 parties
• At completion of contract performance any 3 of 4 parties
• Assign full rights to both vendor and customer
Properties
• Can support arbitrary number of parties and threshold
• Cryptographic technical security not ACL based
• DVP is immutable and unconditional with legal finality
• DVP may be reversed with global governance and threshold
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4. Supply Chain Liquidity
A liquid asset is one that
can be converted into cash
quickly and with minimal
market price impact
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5. Trade Finance
 Decoupled from on-market DVP trade execution
 Workflow
 Buyer obtains trade finance, before DVP trade is executed
 Trade finance supplier includes Unconditional DVP settlement within risk of
trade finance and legal ownership of goods by buyer from point of trade
execution
 Buyer repays trade financer within agreed terms
 Trade financer has full transparency of DVP trade execution and final receipt of
goods process
 Optionally can be part of the Goods and Payment rights management
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6. On Market Trade
 AssetID supports all existing GTIN, EAN codes
 Support for decentralized (Supplier) AssetID generation
 As the marketplace has separate Asset and Payment Rails, there is no
mixture of quantity and price, these are what a cross chain DVP trade
achieves.
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7. Delivery vs Payment
 Based upon Bank of International Settlements Delivery vs Payment
 DVP Model 1, unconditional settlement with legal finality
 On-Market trade of any asset or goods
 Single marketplace for securities and goods
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8. Limitations
 Requires immobilized goods
 Limited to dematerialized or non fungible goods
 Payment or goods cannot be re-assigned until after physical delivery for
non dematerialized goods
 Payment (cash) can be leveraged via share based risk management
 Any supply chain finance is managed outside of DVP Trade, as payment
leg is cash
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9. The global Inter-ledger Protocol (ILP)
 Connects all ledgers on the planet in an open stand based solution.
 Supports the internet of value transfer
 Logical replacement for the Internet Protocol (IP)
 Permission less innovation via support for extendable industry and trading
parties specific message sets ( no global standard needed).
 Defined within our Australian patent ( Letter patent from May 2000).
 Supports on-market global trade, via the Internet of People
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10. Use Cases
 Two party International trade
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11. Provenance
 The entities in the chain know where each asset came from.
 They also know who owned it before and at what time.
 Assets can be anything from iron ore and wheat to money, machines and
copyrights.
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There can be no Trust in the supply chain without Provenance

12. Two party International trade
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13. Work Flow
Trade
•Order Match
•Enter 4 parties (email), with threshold.
•Execute DVP Trade
Share
•Key Splits sent to all 4 parties email address
•Unconditional payment details posted by both Banks
Goods
Received
•Each of the three parties enter splits
•Full rights restored to both Vendor ( payment), Customer (goods)
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14. Delivered via Local Marketplaces
 The global supply chain solution is delivered via the community of local
marketplace operators
 All marketplaces are connected via the Inter-Ledger protocols and
marketplace Rails
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