BEYOND BLOCKCHAIN:WHAT IT REALLY MEANS

FOR TECHNOLOGY AND BUSINESS

Leading the digital value revolution

2

POSSIBILITIES OF BLOCKCHAIN What is Blockchain 03 HowBlockchainisdifferentfroma conventionalsystem 04 WhatcanbeenabledbyBlockchain 05

OUR UNDERSTANDING BeyondtheHype 07 Blockchainfeaturesvsbusinessmodel 08 Opportunity 09 Socialchanges 10 NTTDtechandforesight 11

OUR CAPABILITIES Strengths&skills 13 Collaborations&alliances 14 Ourdesignapproach 15

MAIN USE CASES UNDERTAKEN BY NTT DATA Summary 17 JAPAN 18 ITALY 20 SPAIN 22 UK 24 USA 25

1

SUMMARY

SometalkaboutBlockchainanditspotential,newtechnologiesandthetransformationsleveragedbyinnovation.Butwhatdoesitreallymean?

NTTDATA’sforesighttechnologies,includingBlockchain,arebasedonobservation,studies,measurementsandprototypingorimplementations,whichgivesustheabilitytoturnpossibilitiesintorealityandtounderstandthelevelofmaturityoftechnologiescapableoftransformingprocesses,systemsandbusinesses.

WearepresentingourcapabilitiesandrealusecasesimplementedbyourdedicatedBlockchainteamaroundtheworld.NTTDATAisexploringalloftheBlockchainarena,workingwithamulti-platformapproach.Thesearefactswhichgobeyondthehypeandgivean“objectivevision”ofwhatwecandoandwhatwearenotyetabletodowiththesenewtechnologies,howtheyareimpactingonsocialchangesandhowyoucancometounderstandBlockchainfeaturesandachievesomethingtangibleandconcretelyimplementable.

2

Possibilities of Blockchain

3

WHAT IS BLOCKCHAIN?

TheconceptofBlockchainstartedwhenSatoshiNakamotocreatedBitcoinin2008-2009,designinganewsystemthatcouldallowthecreationandtransferofelectroniccashwithouttrustinganycentralauthority.

Blockchainistodayidentifiedastheunderlyingtechnology,whichisacombinationofadistributedandappend-onlydatabase,consensusalgorithms,cryptographyandpeer-to-peernetworks.

Thiskindofsystemreliesongametheory,economicsandsharedrulesenforcedbythemajorityofthenodes.

Blockchainfeatureswereenhancedin2014withtheEthereumBlockchainandso-called“SmartContracts”whichintroducedbusinesslogiccodedinsoftwareexecutedandvalidatedbythenetworkinadecentralizedandunstoppableway.

In2015,Blockchainbecameapopularideainenterprisesectors.ManyBlockchainprojectsandplatformsweredesignedtocreatenetworksforauthorizedmembers(permissioned)withouttheneedforacryptocurrency.SomeofthemevolvedintoalternativetypesofledgersworkingdifferentlyfromtheinitialBlockchain.

DISTRIBUTEDLEDGERTECHNOLOGY(DLT)isthetermthatidentifiesthegeneralconceptofBlockchainandeveryothersimilarnewtechnology.Enterprisesusuallyusethistermtoindicatepermissioned(private)ledgers.

BLOCKCHAIN

SHARED RULES GAME THEORY ECONOMICS

DISTRIBUTED DATABASE

CONSENSUSALGORITHM

PEER-TO-PEERNETWORK

CRYPTOGRAPHY

SPECIFICS TECHNOLOGY EVOLUTION

Bitcoins& Altcoins

Ethereum & Other Public Blockchains

Private Blockchains & DLT

QUORUMHYPERLEDGER

FABRICCORDA

4

HOW BLOCKCHAIN IS DIFFERENT FROM A CONVENTIONAL SYSTEMNowadays,Blockchainenablesanewwayofdesigningsystems.

Thistechnologyhasmanyimportantstrengthsthatcanbeusedformanypurposes,butitisnotsuitableforeverything,ifcomparedtoconventionalsystems.Itisimportanttoconsideratrade-offbecauseofthemaindifference:centralizedagainstdistributedarchitecture.

Traditionalsystems,basedonasinglecentralizednode,areusuallymoreefficientthandistributedsystemswherenodeshavetocommunicateandreachaconsensusonsomeinformation.

CONS

CONS

PROS

PROS

Isolated silos

SPOF

No data immutability

Requires trust in 3rd parties

CONVENTIONAL

BLOCKCHAIN

Performance

Maturity

Governance

Scalability

DATA

TRUSTABILITY

AVAILABILITY

STANDARD

Replicable, immutable, traceable

Mitigation of trust on third parties

Mitigation of SPOF (single point of failure)

Common and known ecosystemsand standardization

PERFORMANCE

GOVERNANCE

IMPLEMENTATION

SCALABILITY

Higher performance

Allows efficient system governance

Easy implementation and maintenance

Scalable platform

5

WHAT CAN BE ENABLEDBY BLOCKCHAIN?

FUNCTIONAL FEATURES

VALUE & ASSET TRANSFERTheexchangeofcryptocurrenciesanddigitalassets(tokens,securities,lettersofcredit,etc.)withouttheneedforcentralauthorities.

SHARING INFO & WORKFLOWSDatasharingbetweenpartiesthatdon’tfullytrusteachother,accordingtotherulesinSmartContracts.Theinformationcanbesharedwithallstakeholdersorwithasubsetofthem.

TIME-STAMPING & NOTARIZATIONUsageoftheBlockchainasanimmutableandindependentledgertoensuretheexistence,integrityandownershipofdigitalinformation.

SMART CONTRACTSAutomationoftheexecutionofbusinesslogicwiththeimplementationofrulesinthesoftwarecodification.

BEHAVIORAL FEATURES

TRACEABILITYBlockchaintechnologyassuresdatatransparencyandthelogofchangesofalldatastoredintheBlockchain.

IMMUTABILITYBlockchaindataimmutabilityisobtainedthankstocryptography,consensusalgorithmsandthenumberofpeersinthenetwork.

DECENTRALIZATIONThedecentralizedsystemwithacommonsharedledgerremodelstheparadigmbasedoncentralizedsystems.

DISINTERMEDIATION &TRUST MITIGATIONBlockchainprovidesthepossibilityofmitigatingtrustandreducingtheneedtorelyonthirdparties,disintermediatingmanystakeholders.

TECHNICAL FEATURES

DISTRIBUTED DATABASEStoragedatabasesarelocatedinmultiplecomputersdistributedoveranetwork.

CONSENSUS ALGORITHMAprocessusedtoachieveagreementonasingledatavalueinadistributedprocess.InpublicBlockchainsPoW(ProofofWork)isthemostwidelyused.

CRYPTOGRAPHYTechniquesthatusemathematicaltheoryandcomputersciencetoguaranteeintegrity,non-repudiation,authenticationandconfidentiality.

PEER-TO-PEER NETWORKNetworkofcomputerswherethenodesareconnectedwithoutanyintermediary.

6

OurUnderstanding

7

OurUnderstanding

BEYOND THE HYPE

Afterunderstandingtechnicalfeatures,itisnecessarytohaveanobjectivevisionofwhatwecandoandwhatwearenotyetabletodowiththesenewtechnologies,howtheyareimpactingsocialchangesandhowyoucancometounderstandBlockchainfeaturesandachievesomethingtangibleandconcretelyimplementable.

• Blockchainsolutions“often”havenoreductioninplatformsystemcosteveniftheconventionalsystemis“replaced”.

• AlltransactionswithinpublicBlockchainsandtheirsmartcontractshavetoconsiderafeecostandthehighvolatilityofthecryptocurrencyprice.

COSTS

• Blockchainusecasesmakesenseifthemainbenefitsarethemust-havefeaturesofthesolutionandthebenefitsarehigherthantherisks/costs/complexity.Thefirstquestionbeforeconsideringausecaseis“DoIreallyneedaBlockchain?”

• Blockchain-basedbusinessmodelsstillhavemanyunpredictablevariables,likevolatility,go-livecostsandregulatoryimplicationsthathavetobeconsideredandanalyzedduringthedevelopmentofthesolution.

• TherewillnotbeaBlockchainplatformthatgovernseverything;thechallengeistochoosethemostfittingplatformbasedonbusinessrequirements.

BUSINESS

• PermissionedBlockchainsandDLThavecomplexgovernanceforinfrastructure,applicationandbusinesslayersincomparisonwithconventionalsystems.

GOVERNANCE

• Performance,scalabilityandinteroperabilityarefeaturesstill“underdevelopment”forallBlockchainplatforms.

• EnterpriseBlockchainsolutionsarestillinevolution.AfteraProofofConcept(PoC)phase,itisnecessarytocloselyfollowplatformevolutionandmaturity,adaptingandsometimeschangingthesolutiontothenewfeatures/architectureoftheplatforms.

• TheBlockchainrevolutionwillnothappenovernight,andwillrequirecooperationamongmarketparticipants,regulatorsandtechnologyexperts.

MATURITY

• MostpublicBlockchainshavetheirownrules/conventionsandaretypicallymanagedbyadistributedandopencommunitynotcontrolledbysingleactors.

• Blockchainsolutionshavetofollowaregulation-by-designapproach.• Intermediariesandtrustedincumbentshavetorethinktheirrolesconsideringthe

possibilityofdisintermediationofferedbyaBlockchainnetworkthatcouldtakeorreplacetheirrole.

REGULATION

8

BLOCKCHAIN FEATURESVS BUSINESS MODELInordertodefineaservicestrategy,itisnecessarytouseasetofmethodologiesandtoolsduringinterviewsandcollaborativeworkshopstotracetheservicemodelandthegeneralguidelinesbasedontheexperienceofendusers.

Themodelingprocessofabusinessmodel,therefore,starts,inthiscontext,fromthewell-knowntechnicalfeatures(distributeddatabase,consensusalgorithm,cryptography,peer-to-peernetwork).Inasecondstage,thetechnicalfeatureshavetobeunderstoodasatransformationinasystem’sbehaviourorcapabilityastraceability,immutability,decentralization,disintermediationandtrustmitigation.GoingdeeperintoourunderstandingofthefeaturesofBlockchain,wecanreachpotentialfunctionalitiessuchas:value&assettransfer,sharedinformationandworkflowsamongdifferentstakeholders,time-stampingandnotarization,andsmartcontracts.

ThenextstepafteracquiringknowledgeabouttheBlockchainfeaturesistostartthedesignprocess,focusingoncollaborativeworkshops:gaugeandtranslatetheneedsofclients,designthinkingwithanopenmindinordertoidentifynewenablerusecasesinaPoC,prototypetheideatomakeitconcreteandmodelusingmaindrivers,implementthesolutionandupgradeitbasedontheneedsanddirectfeedbackofclients.

BusinesscasedefinestheextensiononalargescaleoftheusecasedevelopedinthePoCanditseconomicsustainability.Inordertodesignabusinessmodelisimportanttoidentifytherightvaluepropositionforthetargetinvolveduser(personas).:Itiskeytounderstandtherealneedsofthistargetuserinordertoofferrealaddedvalue.Neverthelessaroadmapisdevelopedbeyondthebusinesscaseaimedtosupportthewideplan.Thefinalroll-outphaseimplementstheprocessesenvisagedintheroadmap.

TECHNICAL FEATURES

BEHAVIORAL FEATURES

FUNCTIONAL FEATURES

DESIGNTHINKING

Define a value proposition for target usersDefine a business model to support the value proposition

1

2

3

4

5

EmpathizeDefineIdeate

PrototypeTest

PUBLICSECTOR

INSURANCE BANKINGRETAILENERGYTELCO

POC BUSINESS CASE& ROADMAP ROLL-OUT

OPPORTUNITIES

9

OPPORTUNITY

Blockchainnetworksenablenewbusinessinteractionsandnewplayersthatreplaceexistingactorsortakeonnewroles,creatingnewbusinessmodels.

Thedirecttransferandsettlementofvaluethroughaninternetprotocolcreatesanewassetclass,whichcanbethebasisfortheToken-basedEconomy,theMachineEconomyandultimatelytheInternetofValue.

InitialCoinOfferings(ICO)enablenewfundingmethodsforstartupsandprojects.

Thecreationandmanagementofconsortiawithanewcooperativeapproachcanbringtogetherdifferentstakeholdersthatcancreateacommoninfrastructureforbusiness.

ThereusabilityofthesamecommonBlockchainnetworkandinfrastructurecanbethefoundationforexpandingnewbusinesscases,reducingcostsandstandardizingprocesses.

Datatransparencycanenhanceauditabilityandincreasethereliabilityofbusinessprocesses,resultinginanabilitytoprovidealegitimateproofoftheexistenceofinformation.

1

2

3

4

5

6

DISRUPTION

INN

OVA

TIO

N

UPGRADE

ENABLE REVOLUTIONIZE

REPLACE

Oldplayers,newideas

Oldplayers,oldideas

Newplayers,newideas

Newplayers,oldideas

10

SOCIAL CHANGES

Blockchaintechnologyisanenablingfactorfordefiningandcreatingvalueineverysensethroughthenetwork.Thevalueisnotonlymonetary,itisalsosocialandcultural.Thefrictionlessexchangeofdigitalassetsrepresentinganykindofvaluecanpotentiallyunlocknewtypesofinteractionbetweenindividuals,organizationsandmachines.

Thepossiblechangeinbusinessmodelscanhaveanimpactonthesocialinfrastructureasnewservicesbecomeavailable.

Ensuringtheauthenticityofrelevantinformationcouldgivepeoplemoretransparencyandtheabilitytotrack,claimandpublishproofoftheexistenceofspecificdata.Blockchain-baseddigitalidentitiesmaybefundamentalforpeoplewhodon’thaveaccessto someservices.

ThestrengthofaBlockchaincreatingdistributedplatformstoperformdirecttransactionsfacilitatestheinclusionofpeople,loweringparticipationbarriers.

11

NTT DATA TECHAND FORESIGHTAtNTTDATA,wecontinuouslyinvestigateadvancedtechnologiesandsocialtrendsthatwebelievewillinfluencebusinessesoverthenextthreetotenyears,andwepublishthesefindingsonanannualbasisforthebenefitofourclients.

NTTDATAin2018hadidentifiedanddevelopedeighttechnologicaltrends1(TT01…TT08),spearheadingdevelopmentofaninformationsociety.TheTT072regardingDiverseITInfrastructuremakesspecialmentionrelatedtoBlockchainbasedontheevolutionofarchitectures:“Architectures have evolved that combine different IT infrastructures and offer them as a single service. This trend can be seen particularly in the case of database technology for global distribution and integration and for Blockchain technology”

“It is revolutionary that the database technology that enabled global distribution and integration has reached the stage where it is offered on cloud platforms. In the past, geographically focused services offered in countries across the world would result in delayed responses and in discrepancies in recorded data due to physical distances. Thanks to the development of robust middleware, global distribution and integration is possible, where each data center provides positive user experiences in specific regions while using the same integrated set of data.

World-scale service platform developers used to build robust IT infrastructure on their own to offer social network services and emails exclusively for customers. Today, the time has come for all companies to migrate to the cloud for business. The promise of open-source development further raises expectations that IT vendors may emerge to offer architectures with an even greater degree of flexibility.

Blockchain, a technology that supports bitcoin, has solved a key issue related to distributed technologies, and is about to broaden its applications. A Blockchain is distributed across the world instead of being centralized, and it ensures validity over a certain period of time, which slows processing speed. As a result, it is not considered appropriate for small payments and other accelerated transactions. To solve this problem, the development of off-chain technology is underway in which high-speed transactions are achieved by adding a high-speed peer-to-peer (P2P) network to the Blockchain.

The development of cross-chain atomic swaps3 is also underway. This technology enables transactions directly between chains, avoiding the need for the presence of a third-party clearinghouse to exchange value between Blockchains. However, bitcoin, which has already circulated huge amounts of cryptocurrency is a barrier to entry. Coordination of interests between companies and technologies might also present an obstacle to the ongoing evolution of this technology.”

1https://www.nttdata.com/global/en/foresight/trend-listing2 https://www.nttdata.com/global/en/foresight/trend-listing/2018/april/diverse-it-infrastructure3 Cross-chainatomicswapsaretheexchangeofonecryptocurrencywithanotherwithouttheneedforthird-partyintermediation.

12

OurCapabilities

13

OurCapabilities

STRENGTHS & SKILLSThankstotheresearchconductedandexperienceacquiredbyNTTDATAoverthelastfewyears,wehavereachedaclearerunderstandingoftherealvalueofBlockchain,inabroadenedperspectiverangingfromtechnologytobusiness.

OurdeepunderstandingandadvantageintherealmofBlockchainrepresentsanewstrengthofNTTDATA,intellectualcapitalattheserviceofourcustomers,aconcretesteptowardsadigitalvaluerevolution,andourforesightintothefuture:

NTT DATA HAS HANDS-ON EXPERIENCE AND MATURED CAPABILITIES

• 200+Blockchainexpertsacrosstheglobein20+differentcountries.

• 4Innovationlabstofostertechnologyevaluation.

• Variousrelevantusecasesimplementedcross-industry.

• EstablishedBlockchainconsortiumwithmembersrepresentinganumberofvaryingindustriessuchasinsurance,logisticsandimportexporttrade.

• DesignBCOSE(Blockchainone-stopenvironment)whichquicklyenablesPoCenvironmentsetupandprototypeimplementation.

• Promotethedevelopmentandimplementationforproductionuse,like“TrustedArchitecture”whichenablestodesignoptimumarchitectureofBlockchain.

TECHNICAL• DistributorofHyperledgerQuilt• InfrastructureTechnologyascontainers,

middleware,OS,security,cloudplatform,Docker,Ansible,AWS,Azure;Linux(RedHat)

• Consensusalgorithms• PrograminglanguagesuchasGO,Java,

Solidity,Kotlin,C++,Python• Bitcoin,Ethereum,HyperledgerFabric;

Corda,Ripple

BUSINESS• PublicSector:TelecomandUtility,

Government,Socialinfrastructure• FinancialSector:TradePlatform,Banking,

Insurance,• EnterpriseSector:Paymentsolutions,

SCM,AI&IoT,NetworkInfrastructure,retailprocesses,Logistics,Healthcare,LifeScience,Automotive,Supplychain

TECHNICAL• PoCDevelopment,Blockchainbased

solutiondesign• ExtensiveexperiencewithHyperledger

Fabric1.xandCordaEnterprisearchitectureandimplementation

• AgilebasedBlockchainsolutiondelivery• Blockchain + IOT• Non-functionaltestingofBlockchain

framework/solutions• Digitalidentityandtraceabilityand

Blockchainplatform

BUSINESS• Multi-platformapproach• End-to-endstrategyanalysisuptothefinal

solution• Infrastructuremanagementandgovernance• Definitionoftherulesforcreatingaprivate

network• BusinessProcessAdvisory• Designnewprocessesforanyindustry• Financedomainknowledge,specifically

SupplyChainFinance,PaymentSystems• AgileProgramManagement

OURCAPABILITIES

SKIL

LSST

RENG

THS

14

COLLABORATIONS& ALLIANCESOurcollaborationsandalliancesarefocusedontherealfeasibilityofrealizingBlockchain,payingattentiontoensureaprojectfortheinvolvedstakeholders.

NTTDATAisconstantlyfollowingtheevolutionandemergenceofBlockchainandDistributedLedgerTechnologies.

NTTDATAcontributedtoHyperledgerProject;NTTDATAisalsoanEnterpriseEthereumAlliancememberandfounderofAlastriaandithaspartnershipsandcollaborationswithR3,RippleandSkuchain.

Thus,NTTDATAiscontributingtotheOSScommunityandstablishstrategicpartnershipwithselectedstart-upcompanies.Furthermore,NTTDATAisactivelyinvolvedinstandardizationprojects,industry-universitycollaboration,encouragingthebirthandrealizationofideasbecomingrealprojectswithatangibleaddedvalue.

15

OUR DESIGN APPROACH

NTTDATA’sapproachtoBlockchain-basedtechnologicalinnovationislinearandaimstoreshapeorganizations,servicemanagementandactualrelationships.Ourapproachstartsfromatrainingprogramrelatedtothebusinessandtechnicalaspects,toprovideanunderstandingofthemechanisms,theconceptofBlockchainandhowitcouldbeapplied.Thenwesetupastrategytofindspecificopportunities,explorefeasibilityandplanthenextstageinordertoproducegoodprototypessubjecttocontinuousimprovementandsupportthecreationandimplementationofcustomerideasbasedonusecasestudies.Afterdefiningtheperimeter,andtheconstraints,wecontinuewith

anas-isanalysisoftheprocessesorwebuildnewoneswithnewrolesandresponsibilities.WecreatePoCstoevaluatepossiblecostreductionsbypromotingefficiencyinoperationsandestimatethecostsofsysteminvestmentsinregulatoryandlegislativecompliance.Thenwepromotedevelopmentandimplementationforproductionpurposes(Go/NoGo).Afterproductrelease,wetakecareofthemaintenanceofBlockchainsoftware,managingupdatesandversioning.WeevaluatetheoptimalBlockchainarchitectureforuseinproductionandwecollectfeedback,lessonslearnedandbestpracticesforcontinuousimprovement.

Promotethedevelopmentandimplementationforuseinproduction(Go/NoGo)(“TrustedArchitecture”enablesanoptimaldesignofBlockchainarchitecture).

Implementthesolutionsidentifiedstartingfromaprototypeandsupporttheupdatingofgovernancemodelsforsolutionextension(BCOSEquicklyenablesPoCenvironmentsetupandprototypeimplementation).

Explorefeasibilityandavailability,withpracticalhypothesis.Evaluatecostreductionbypromotingefficiencyinoperationsandestimatecostofsysteminvestment.Abidebyregulatoryandlegislativerequirements.MakeaQuickProcessAssessment.

FindspecificopportunitiesfortheuseofBlockchainwithcollaborativeworkshops,wheretechnologycanmakeadifference,emphasizingthedistinctionbetweenthecompanyandthecompetition.Supportthecreationandrealizationofcustomerideasbasedoncasestudiesandtheirideasaboutdesignthinking.

Provideeducationprogramforbusinessandtechnicalaspects,tounderstandthemechanismandideaofBlockchainandhowitisbeingapplied.

BUILD ANDRELEASE

IMPLEMENTATION

FEASIBILITY ANALYSISAND PROCESS ASSESSMENT

STRATEGYDEFINITION

EDUCATIONPROGRAM

16

Main Use CasesUndertakenby NTT DATA

17

Main Use CasesUndertakenby NTT DATA

SUMMARY

TRADE PLATFORM:NTTDATAinJapanfoundedaconsortiumwith14Japaneseleadingcompaniesincludingbanks,tradingcompanies,insurancecompanies,shippingcompaniesandfreightforwarders.Intheconsortium,participantsdiscussedcrossindustrialmatterstoimprovetheefficiencyintradeproceduresandverifieditsfeasibilityusingtheprototypesystem.

SMART GRIDS AND ELECTRIC POWER SYSTEM TRANSFORMATION:NTTDATAinJapanusesBlockchainsforenergyconservation,powerretailing,transmissionanddistributionplanmanagementandaimstodistributedprocessesbysharinginformationamongrelatedactors,processimprovement,newvaluecreation(greenpowercertification,tokeneconomy,etc.).

SPUNTA PROJECT: Afterconductingafeasibilitystudyontheinterbankreconciliationprocess,NTTDATAinItalydevelopedaPOCwithABILabandmorethan15BankstodemonstratehowaBlockchain/DLTsolutioncanchangeandimprovetheprocess.

4TRACE:NTTDATAinItalydevelopedaSupplychainandTraceabilityplatformGS1compliantwithBlockchainnotarizationandtimestamping.

MULTI-PARTY CONTRACT PROCESS FOR RE-INSURANCE:NTTDATAintheU.S.demonstratedamulti-partycontractingprocessforre-insuranceusingBlockchainwithimprovedtransparency,traceabilityandefficiency.

UK TIER 1 RIPPLE XCURRENT SOLUTION:NTTDATAintheU.K.contributedintheimplementationof“nearrealtime”paymentandsettlementoffundsthroughanewanddedicatedmobileapp.

CONTAINER TRACEABILITY:Theshippingindustryissubjecttostrictregulationduetoitsimportanceinprocurementandgloballogistics.Blockchaintechnologycanimproveleadtimesandreduceuncertaintyalongthesupplychainforallpartiesinvolved.

INTERNAL FINANCING:DevelopmentofanintercompanyfinancialcontractinBlockchain.Specifically,acreditlinebetweentwocorporationsbelongingtothesamegroup.Differentdepartments androlescreateacontractina collaborativeway.

18

TRADE PLATFORM

All industries involved in trade14 Japanese Leading Companies

First,weaimtodigitizetradedocumentsinaspecificworkflowintrade.Inthefuture,wewilldevelopadigitaltradeplatformtoimproveefficiencyintradeproceduresbyprovidingaBtoBtoGdatasharingplatform.

August2017

DatasharingonaBlockchainplatform

Confidential

NTTDATAinJapanfoundedaconsortiumwith14Japaneseleadingcompaniesincludingbanks,tradingcompanies,insurancecompanies,shippingcompaniesandfreightforwarders.Intheconsortium,participantsdiscussedcross-industrialmatterstoimprovetheefficiencyintradeproceduresandverifieditsfeasibility usingtheprototypesystem.

ThisistheveryfirstconsortiuminJapanthatoperatesacrossdiverseindustriesintrade-relatedbusiness.Weextractedissuestocreatethedigitaltradeplatform.Weevaluatedexpectedbenefitsbyusingthedigitaltradeplatform.

Itchangestheworld,fromeachsystemhavingdataindividuallytoeverysystemcollaboratingbysharingdatathroughtheBlockchain.Itisexpectedthatitwillincreasethespeedoftransactions,maintainconsistencyandreducethepapercostoftrade-relateddocuments.

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

CORRESPONDENTBANK

EXPORTER

INSURANCECOMPANY

TRADE CONTROLOFFICE

TRADE CONTROLOFFICE

ISSUINGBANK

CUSTOMS CUSTOMS

IMPORTER

cargo

TRANSPORTCOMPANY

CUSTOMSBROKER

DISTRIBUTEDLEDGER BLOCKCHAIN

19

SMART GRIDS AND ELECTRIC POWER SYSTEM TRANSFORMATION

UtilityElectric Power Companies, Gorvernment Agency, University.

Thisyear’sgoalistobuildapowertradingplatformprototypecombiningvirtualstoragebatterycloudandBlockchainpowertrading.Ourgoalnextyearistopromotefieldtestsforcommercializationofthisplatform.•Transparency,traceability•DataImmutability•SmartContractsLogic•Notarizationandtime-stamping

April2017

SmartGrids,IoTDataTime-stamping,StrongAuthentication

Ethereum

NTTDATAinJapanusesBlockchainsforenergyconservation,powerretailing,transmissionanddistributionplanmanagement,andaimstoachieve:•Distributedprocessesbysharinginformationamongrelatedactors•Processimprovement•Newvaluecreation(greenpowercertification,tokeneconomy,etc.)

•DemonstrationsystemcreationofBlockchainbasedP2Ppowertrading•DemonstrationsystemlinkingIoTdeviceandBlockchain•Feasibilitystudyconductedwithpowercompanies•ParticipatedinPoCofUniversity’sP2Ppowertrading

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

20

SPUNTA PROJECT

FinanceABI Lab (Banking Research and Innovation Center founded and promoted by the Italian Banking Association) and more than 15 Italian Banks

FirstProjecttobringinnovationtothefinanceindustryinordertooptimizeand re-engineerabackofficeprocessidentifiedbyABILabasthefirstusecasewiththeBlockchain/DLTsolution

May2017

Datareconciliationprocess,immutability,transparency…

Corda

Afterconductingafeasibilitystudyontheinterbankreconciliationprocess,NTTDATAinItalydevelopedaPOCwithABILabandmorethan15bankstodemonstratehowaBlockchain/DLTsolutioncanchangeandimprovetheprocess,makingitdistributed,reducingtheneedfortrustin3rdparties,enablingittobecomerealtimeandmakinginformationsharablebetweentheactorsinvolved

•FirstEMEAprojectwitharegulator,morethan15banksandasystemintegrator•FirstdraftofnewregulationsfortheprocessbasedontheBlockchain/DLTplatform•Buildingoftheinfrastructurelayerenablingbothcloudandon-premisesnodes•Usageofaprivatephysicalnetworkbetweenthenodes•Establishmentofgovernancerulestomanagethebusinessnetwork•Performancetestswith60daysofrealdataamongtheallthebanks•Pre-productionanalysis

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

BANK A BANK B1

3

2

SEND MOVEMENTS(INPUT AND OUTPUT)

OPEN INVESTIGATION IF NECESSARY

EXECUTEAUTOMATICAND MANUAL MATCHING

Thisprocessaims to reconciliatematerialandnotdigitalizedproducts thatareexchangedbetween theBanks (e.g.Commercialpapers,Promissorynote,etc.).BetweeneachpairofbanksthereisareciprocalBankaccount,whereinputandoutputmovementsarewritten.Allbankshaveatleast1reciprocalbankaccountwithacounterpartyBank.Movementsaremostlymatchedautomatically;manualmatchisexecutedifthereisamismatchandaninvestigationcanbeopened.Automaticandmanualmatching,areactivitiesperformedbyonlyoneofthetwoBanks.Theownershipofthisactivityisexchangedevery2-3years.

21

SPUNTA PROJECT 4TRACE

Retail, Healthcare, Transport & Logistics, Foodservice, Technical Industries, Humanitarian logisticsFood Company

ImprovementofGS1andEPCISplatformwith:•Non-repudiationofdata•DataImmutability•Notarizationandtime-stamping•Decentralizedtime-stamping

July2017

SupplyChainTraceability

OpentimestampwithBitcoin

NTTDATAinItalydevelopedaSupplyChainandTraceabilityplatformGS1compliantwithBlockchainnotarizationandtime-stamping

•CreationofaplatformGS1andEPCIScompliant•Test4Traceplatformwithrealdata•Createnotarizationandtime-stampingserviceonBlockchainwithOpentimestamp•Scalabilityandperformancetests•Businesscaseandcostmodelofplatform

INDUSTRY

CLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

22

CONTAINER TRACEABILITY

Transport & LogisticsMediterranean Port Authority

•Setuphigherstandardsoftransparencyandreliabilityintheglobalshippingindustry•Reducethesheeramountofpaperworkandintermediariesinvolvedinfreighttransportation

•Ensurerealtimeend-to-endtraceabilityofthecargo,fromitsportoforigintoitsfinaldestination

StartingApril2018

Faster,morereliablepaperanddigitaltransactions.Globalshippingend-to-endtraceability

HyperledgerFabric&HyperledgerComposer

Theshippingindustryissubjecttostrictregulationduetoitsimportanceinprocurementandgloballogistics.Keyplayersareforcedtogothroughextensivebureaucracyinordertotransportgoodssafely.Blockchaintechnologycanimproveleadtimesandreduceuncertaintyalongthesupplychainforallpartiesinvolved

•Digitalizationoflargeamountsofpaperworkandprocesses•Improvementofcommunicationbetweencarriers,terminalsandfreightforwarders.•Problemtrackingandincidenceresolutionbetweenhauliers,freightforwarders,carriersandimporters

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

SHIPPER CARRIER TERMINAL CONSIGNEE

FREIGHTFORWARDER

23

INTERNAL FINANCING

UtilitiesConfidential

•Reductionofmanualworkinvolvedinthecurrentprocess•Improvementintheeficiencyoftheinternalfinancingprocesses•Increaseintransparencyoftheprocessandthetraceabilityofthestagesofvalidation

January2018–June2018

Fasterprocess,reductionofmanualwork

EthereumQuorum

DevelopmentofanintercompanyfinancialcontractinBlockchain.Specifically,acreditlinebetweentwocorporationsbelongingtothesamegroup.Differentdepartmentsandrolescreateacontractinacollaborativeway,eachonecanonlycontributetotheirfieldsandoneofthemactsliketheoracleandvalidator.ImplementationoftrackingforissuingorchangingacontractfromtheParties

•TestingtheBlockchaintechnologyinordertodigitalizethefullcontractassignationprocess

•Timereductionforcreditlineapprovals•Fulltraceabilityinalltheprocess’stages

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

Company A requestfor Internal Funding

Blockchain managesthecontract

creationflow

InternalFinancingandotherinvolvedareascontributetothecontract

Whenthecontractisfinishedthe

AttourneyofbothCompaniesdigitallysignit

The contract islegally functional,

stored in Blockchainwith possibility of print it and trackabiility of all its

creation process

PLATFORMBLOCKCHAIN

24

UK TIER 1 RIPPLEXCURRENT SOLUTION

Banking Global Retail Bank

•Nearreal-timesettlementoffunds•Globalreductionofpaymentprocessingtimes•Fulldisclosureoffeespriortotransaction•Reductionofoperationalcoststhroughautomatedreconciliation•Minimisationofpaymentfailures

2yearproject(50%internalPoC/50%Industrialisation)

Faster,error-free,cost-efficientinternationaltransactions

RipplexCurrent

NTTDATAintheU.K.bankingandtechnologypracticeshavecontributedtotheimplementationofa“nearreal-time”paymentandsettlement-of-fundssystemthatreliesonDistributedLedgerTechnologytoprovidecrossborderpaymentservicestoa+14Mclientbaseofaglobalretailbank

•Allmaingoalsachieved•Seamlesscustomerexperience•Fullvisibilityofpost-settlementfundspriortotransaction

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

UKUSA EUROPE

£

$ €PAYMENTNETWORK

APPLE PAY

PAYMENTNETWORK

19Eurozonecountries

RipplexCurrent

25

UK TIER 1 RIPPLEXCURRENT SOLUTION

USING BLOCKCHAIN IN THEMULTI-PARTY CONTRACT PROCESSFOR RE-INSURANCE

InsuranceMulti-National Re-Insurance Company

Directcommunicationbetweenparticipantscanbeachievedbydigitalizingtransactionsbetweentheinsurancecompany-insurerandvendorsinvolvedintheTelematicsserviceandmanagingthosetransactionsthroughtheBlockchain.Hence,itisexpectedthatnetworkflowscanbeautomatedandmultipleparticipantscanenterintopartnershipefficiently

Timing-12Weeks;Team-5Members

Transparencyofinformation,tamperresistance,reductioninoperatingcostsandtransactiontime

Ethereum,IPFS

Thebusinessusecaseinvolvesmulti-partycontractmanagementforvehicleinsuranceusingtelematics.Telematicsinsurancedecidestheinsurancepremiumbasedonthevehicleusageandoperationdata(operationalstatusofaccelerator/brake,etc.)obtainedfromacommunicationsystem(device)installedonthevehicle

MultipleentitiesuseddedicatedBlockchainnetworksindemonstrationtestsandverifiedaseriesofbusinessprocessessuchascreating,storingandsendingdocumentssuchascontracts,estimates,responseforms,invoicesetc.ThedocumentsaresharedusingIPFS,adistributedfilesystem.Forthefrontendapplication,Dapp(distributedapplication)isused,whiletheAPIserviceisusedtoconnecttheBlockchainnetworkwiththeexternalsystem.Asaresult,thecontractprocess,sendingandreceivingofeachdocumentareexecutedefficiently.

INDUSTRYCLIENT

MAIN GOALS EXPECTED

TIMING AND TEAM

POC ENABLERS

BLOCKCHAINDLT PLATFORM

BRIEF DESCRIPTION

MAIN RESULTS ACHIEVED

26

USING BLOCKCHAIN IN THEMULTI-PARTY CONTRACT PROCESSFOR RE-INSURANCEInsuranceMulti-National Re-Insurance Company

INDUSTRYCLIENT

User repositorySmart contract

Client estimation Smart contract

Role repositorySmart contract

Vendor estimationSmart contract

WorkflowSmart contract

1 234

5 6 78

1011

12

1413

9

ETHEREUM PRIVATE BLOCKCHAIN IPFS DISTRIBUTED FILE STORAGE

NON INSURER(client)

INSURANCECOMPANY

INSTALLERVENDOR PAYMENTAGENCY

1.Contractestimationrequest 2.Estimationrequest

8.Sendinvoice

4.Sendapprox.estimation

Accesscontrol

3.Sendestimation

10.Payment

5.Contractexecution 6.Order

11.Paymentagencycontract

13.Paymentofbillingamount

14.Paymentofbillingamount

12.Issueinvoice

7.Senddevice

9.Sendinvoice

(Smartcontractpossessedbyinsurancecompany)

AUTHORS NTT DATA Blockchain Champions Team

CONTACT US NTT DATA Services USA

Blockchain Services

blockchain_services@nttdata.com

nttdataservices.com/blockchain