Upload
others
View
4
Download
0
Embed Size (px)
Citation preview
Blockchain Technology
Adoption
S e p t e m b e r 2 0 1 7
INDEX
1. Adoption of DLT in the Financial Sector
2. Payments Settlement: Present & Future
2
3
Adoption of DLT
4
From the Internet of Information…
The emergence of the Internet of Information in the 90s was possible thanks to the creation of the Internet Protocols (TCP/IP, HTTP,
SMTP…).
Internet Protocols enabled open innovation to flourish. Companies like Amazon, Ebay, Rakuten, Google and Alibaba were born
once Internet Protocols gained adoption.
Today information moves seamlessly over the Internet, and due to its open and neutral nature, the Internet has given raise to all
types of products and services that were previously unimaginable.
Timeline
HTTP and the World Wide Web are created by Tim Berners Lee
Alibaba is founded
Microsoft is born First Mainframe computers
Amazon is founded
Rakuten is founded
1998 1999 2004 1994 1974 1976 1995
TCP/IP Vince Cerf and Bob Kahn create the Internet Protocol
Google, Tencent and PayPal are created
Facebook is founded
Ebay is founded
1993 1975
Mosaic web browser is created
1950s 1989
Apple is founded
1997 1988
NTT DATA is founded
5
The Internet of Value will make for money and other forms of value what the Internet did for information.
Analogous to the Internet of Information, the Internet of Value needs open protocols and standards to enable the many value
networks in the world to connect with one another and become interoperable.
As banks and other financial institutions adopt open standards like Interledger (ILP) to connect between each other and with
Blockchain networks, we’ll see the Internet of Value emerge.
Blockchain technology and smart contracts will enable programmable money and frictionless transfers of digital assets, lowering
the cost to transact and giving rise to seamless transactions between people, institutions and the IoT.
…to the Internet of Value
Timeline
Ripple is born (first currency agnostic blockchain)
Ripple becomes the standard for international money transfers between banks ILP becomes the standard protocol for connecting banks’ cash ledgers (as part of Ripple’s software)
Interledger (ILP) is invented Ethereum is born Hyperledger is created
2012 2015
R3 Consortium is born
2014 2009
Bitcoin is invented (first blockchain)
Blockchain solutions for Capital Markets and Trade Finance emerge (R3 Corda, DAH, Fabric, etc.) ILP Java becomes the interoperability standard for Hyperledger Foundation projects
2016
SBI Ripple Asia (Japan) is born First DLT banking network (Ripple GPSG)
2020-2025 2017-2020 2025-2030
Blockchains and Distributed Ledger solutions mature, and all asset exchange networks become interoperable with ILP
Blockchain & DLT Adoption and Maturity
Technology Breakthrough
Experimental platforms
Maturity and Adoption
Enterprise-level platforms for specific use cases
Meeting the rising demand for faster, more cost-efficient
international payments
Testing the use of crypto currencies and smart contracts
Automating reconciliation to speed
up post-trade services
Pushing the digitalisation of trade to reduce risk and fraud
t
Blockchain Technology Cross-Border Payments Capital Markets
Trade Finance
6
FABRIC
7
Interledger Protocol
Application Layer
Transport Layer
Core Layer
Network Layer
Information
Internet Protocol
TCP UDP
HTTP SMTP VoIP
PSK IPR
Interledger Protocol
SPSP HTTP-ILP
PayTorrent
Value
Interledger Stack
Hyperledger Foundation Members
8
For the advancement of Blockchain Open Standards
The Linux Foundation leads the biggest Consortium of
Technology Companies and Financial Institutions
collaborating to establish DLT and Blockchain
technology standards.
NTT DATA is a member of Hyperledger, and as such
we aim to become the best technology partner for
Hyperledger member companies, who are working to
adopt blockchain and distributed ledger based
solutions.
With this objective we are working on the
development of the Interledger Java software, which
will facilitate transaction interoperability across banks,
settlement networks and platforms. And more
9
Payments Settlement Present and Future
10
Cross-Border Real-Time Gross Settlement 1980-2017
RTGS systems reduce systemic risks by removing the settlement risk from interbank payment flows
RTGS Systems today operate in daily batch
process cycles
RTGS systems don’t provide real-time settlement capability
RTGS systems’ access is restricted to local
banks in each country
Consequently, correspondent banks are needed to access foreign currency corridors and liquidity pools
Correspondent banks work in oligopolistic markets and use antiquated technology to settle transactions across countries. For these reasons, international transactions are expensive, slow and error prone
CLS – Continuous Link Settlement, Old, slow and expensive Infrastructure used by Correspondent Banks
RTGS Systems Local Payments Correspondent Banks (CB)
CLS
CLS
CLS
CLS
ZENGIN BOJ - NET
SEPA TARGET 2
ACH FEDWIRE
HVPS / BEPS CDFCPS / CFETX
FPS BACS / CHAPS
11
Banks’ Adoption of Real-Time Settlement DLT 2017
Ripple Solution: Payments Software that banks integrate to settle funds in real-time with other banks DLT: Distributed Ledger Technology
ZENGIN BOJ - NET
SEPA TARGET 2
ACH FEDWIRE
HVPS / BEPS CDFCPS / CFETX
RTGS Systems Local Payments
FPS BACS / CHAPS
ILP
ILP
ILP
ILP
CB & LP
ILP
50 Japanese Banks are currently integrating with RippleNet through xCurrent to make real-time payments (including Mizuho, Bank of Tokyo Mitsubishi and Resona)
xCurrent uses the Interledger Protocol (ILP) for making transactions across banks’ ledgers
All over the world many other financial institutions are also joining RippleNet to make interbank local and international payments
As banks accelerate the RippleNet adoption worldwide, financial institutions will start using the XRP Ledger for liquidity provisioning and cross-currency Global RTGS
Aware of the fast changing financial landscape,
Everis and NTT DATA are developing Interledger Java, an implementation of the Interledger Protocol, to facilitate real-time settlement of transactions across banks, payment systems and Capital Market platforms
12
Cross-Border Real-Time Gross Settlement 2020-2025
XRP Ledger – Modern Distributed Ledger based Global RTGS system and liquidity marketplace CB & LP – Correspondent Banks & Liquidity Providers
The Global RTGS will remove friction, costs and risks from cross-currency transactions
Distributed ledger technology, and in particular the XRP Ledger, will enable banks to settle cross-currency transactions in real-time (something
impossible today)
The XRP Ledger can be accessed by all banks and liquidity providers, enabling healthy competition between banks and a better service for customers
Correspondent banks and liquidity providers will be able to reach more currency corridors and new customers, improving their service offering for other banks and their clients
The Interledger Protocol (ILP) will enable financial
institutions and central banks to make their existing infrastructure and processes interoperable with other currencies, asset classes and the XRP Ledger, the global liquidity marketplace and the Global decentralised RTGS system
ZENGIN BOJ - NET
SEPA TARGET 2
ACH FEDWIRE
HVPS / BEPS CDFCPS / CFETX
RTGS Systems Local Payments Global RTGS
FPS BACS / CHAPS
ILP
ILP
ILP
ILP
ILP
CB & LP
ILP XRP Ledger
13
Interledger : Enabling Interoperability Across Platforms 2020-2025
Blockchains
& DLTs
Capital
Markets
Trade
Finance
Internet of
Things
Payment
Platforms
Other
Platforms
Marketplaces
Money Networks Platforms
Fabric
ILP
ZENGIN BOJ - NET
SEPA TARGET 2
ACH FEDWIRE
HVPS / BEPS CDFCPS / CFETX
FPS BACS / CHAPS
ILP
ILP
ILP
ILP
ILP
ILP XRP Ledger
e v e r i s . c o m