Blockchain & Distributed Ledger Tech - Impact on FinTech, presented at China (Jinan) International Forum on Industrial Finance, in Jinan, Shandong Province, China on 19 October 2018.
5. Blockchain & Distributed Ledger Technology (DLT)
• consensus-driven, p2p-shared digital database & ledger
• replicated among multiple sites, countries, institutions
• global
• permissioned/private or permissionless/public
• blockchain is one kind of DLT
• many blockchains – e.g. Bitcoin, Ethereum, EOS, Ripple
6. Some Problems to Solve in Financial Systems
• fees and costs of intermediaries
• friction in movement of money
• redundant and onerous paperwork
• fraud and crime
• regulatory costs and burden
• inefficiency of centralized systems
7. • alternative investing & financing option
• peer-to-peer ICO’s = global distributed shares
• stock exchanges exploring blockchain to clear & settle trades
• Australia, Santiago(Chile), Korea, London (UK), Tallinn
(Estonia), Tokyo, US Nasdaq, Scotland
• global remittance network (Ripple)
• micropayments
Some examples how new tools are being used
8. Other corresponding applications being developed
• supply chain & inventory management
• trading value – exchanges
• insurance & risk management
• identity & reputation
• audit & tax functions
• medical records • IoT
• patents & royalties
9. Opportunities
• increased efficiencies – cost and speed
• decrease fraud
• removal of excess intermediaries
• direct & efficient pipeline to investors
• large volume of small investments
• access to global markets
• immutable audit trails
• improved privacy
10. Challenges
• regulatory uncertainty
• legal evolution – smart contracts, language
• standardization needed in many industries
• digitization of records and data
• immature businesses/products & development
• interoperability of ledgers/networks