overcoming the barriers to blockchain adoption

Overcoming the Barriersto Blockchain Adoption

+

{ : }Agenda

Relevance of our partnership

The Promise of Blockchains

Challenges of Blockchain Adoption

MongoDB & BigChainDB

MongoDB Inc,

700+ employees 3000+ customers

Offices in London, NY & Palo Alto and across EMEA, and APAC World Class Advisory

How we drive value

Dramatically reduce TCO

Reduce Risk for mission critical

applications

Accelerate time to value

Use data and technology to gain

competitive advantage

We bring next generation platforms to life

Powering Single View use cases

Modernizing Mainframes and

increasing resilience

Enabling micro services,

a driver for transformation

NOW: The underpinning

for Blockchain

BlockchainMoves away

from the pack

Already at the peak of

hype

Why: The benefits are enormous “Numerous research reports put potential efficiency gains to financial services from blockchain at between $15bn and $20bn. Already today, using blockchain-based applications, companies could bring the cost of a cross-border transaction down from $25 to $1 or $2. This will drive adoption.”-Oliver Bussmann

– Bussmann Advisory and ex-Group CIO of UBSFT: Banks will not adopt blockchain fast

https://www.ft.com/content/8fc96cbc-8ed9-11e6-a72e-b428cb934b78

IBM: Leading the pack in blockchain banking

Strategy is already being defined

https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=GBP03467USEN&

The Early Adopters

have already made

progress Raconteur: The Future of Blockchain in 8 Charts

http://raconteur.net/business/the-future-of-blockchain-in-8-charts

You will be hearing from:

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Simon Taylor – Director of Blockchain 11:FS


A Framework for Understanding Blockchain

My Background at Barclays

• Started looking at Blockchain “side of desk” in early 2014

• Became officially full time October 2014

• Identified now over 60x use cases, completed 20 experiments and now moving into develop pilots

• Founder member of R3 consortium

• April 2016 became the first UK bank to offer accounts to Blockchain companies

• PoCs and Accelerator companies…

Why BlockchainFI’s Have Recognised the Potential of Blockchain…

• Met with over 300 Blockchain Companies

• SME’s have delivered live pilots, and over 60 PoCsfor Tier one Global Bank

• Highly networked with access to global networkof founders~

• Former Gartner Head of Digital Banking leading research tool build out

• 3 of the top 20 Global Fintech SME’s (rated by City AM)

• Advisors to Governments, Central Banks and Regulators globally

But are struggling to convert that into value creating product…

• DAH raised $60M

• R3 consortium 55 banks / exchanges / asset managers

• Visa / Nasdaq invest $30M in Chain.com

• CLS Announced first large scale project

• Total value of Blockchain investment exceeds $2bn

• Start-ups struggling with access and SME knowledge to impact Post Trade, Trade Finance, Identity and Provenance use cases

• Early Bitcoin companies closing or seeking funding outside the USA

• Second wave of Blockchain start-ups based on Ethereum (e.g. Clearmatics, Axoni) now progressing with banks behind closed doors

• Banking on Blockchain brings commercial and execution expertise to turn this potential into ARR for these start-ups

We have collated the insights to find value for banks…

And assembled the team that allows us to deliver value…

Blockchains without the Coin?• Recent discourse has evolved. There’s now an argument over what The Blockchain is. Is it the actual

code and network that supports Bitcoin?

• Bitcoin’s breakthrough was to have everyone share an entire copy of an entire ledger. The opposite of what banks do, but it introduced new problems

• Replicating all data to all nodes isn’t compatible with data privacy legislation banks need to adhere to, it also places uncomfortable amounts of control on core devs and mining conglomerates (consider there are 192 SWIFT members, vs 9 dominant miners)

• Richard Brown (R3) described a continuum in 2014 (pictured below) where there are a set of design choices and trade offs to be made depending on what you’re trying to achieve.

Traditional Financial Services

Centralised

Bitcoin

DecentralisedOpportunity Space

RippleStellar

EthereumCounterparty

Eris IndustriesBigchainDB

“Blockchain” – A Three Layer Model

There are a number of technologies all being called “Blockchain”

• In addition within each of these technology types, there are a number of approaches each with their own world view and terminology

• The diagram below attempts to simplify this by abstracting the broader concepts• The diagram on the right then puts this in the context of Bitcoin (as a reference only)

Shared Ledger - “The Database”

Smart Contract “The Middleware”

Application “The Interface”

Three Layer Model

Shared Ledger e.g. “The Blockchain”

Smart Contract e.g. “Unspent txn Output”

Application e.g a “Bitcoin Wallet”

Three Layer Model applied to Bitcoin

A

SC

SL

A

SC

SL

Smart Contract Implementation Types

Smart Contract is a loaded term that means something very different to lawyers than software engineers• Smart Contract Code: Code that governs something important or valuable and executes

“everywhere”• Smart Legal Contracts: Replace or re-implement paper contracts with smart contract code• The DAO / DAO’s: An entire organisation incorporated using smart contract code, including bylaws,

asset ownership and governance

The Diagram below shows these broken out

• Note: The term “contract” creates a great deal of confusion for a type of software that is actually highly varied and fragmented in approach and design

• Note 2: However the potential for both replacing existing legal agreements and creating entirely novel agreements is still highly exciting

• Note 3: There are now a good number of start-ups offering a mixture of SC1 and SC2 implementations

Smart Contract “The Middleware”

The DAO / DAO’s

Smart Legal Contracts

Smart Contract Code

SC

SC1

SC2

SC3

Three Layer Model Example – Application Layer (A)

The App layer can be changed easily without changing the underlying technologies• From 2013 developers began to use the underlying Bitcoin infrastructure (miners, Blockchain and

UTXO) to perform other tasks. This is arguably the simplest change, but is not the focus financial services players to date

• The diagram on the left shows Bitcoin in the standard configuration• The diagram on the right then shows what a different application might look like with the two base

layers unchanged

Shared Ledger e.g. “The Blockchain”

Smart Contract e.g. “Unspent txn Output”

Application e.g. “Bitcoin Wallet”

Three Layer Model

Shared Ledger “The Blockchain”

Smart Contract “Unspent txn Output”

Application “Notary Service”

Three Layer Model applied to Bitcoin

A

SC

SL

A

SC

SL

• Conceptually the idea is to create one “global” ledger for the world rather than each bank maintaining books and records separately

• Below is a scenario where multiple banks and corporates need to keep up to date with where their assets and liabilities are (image courtesy for Richard Brown www.gendal.me )

Today Tomorrow

Reconciliation through paper, many databases2 – 5 day settlement of transactions

Reconciliation through cryptography “mining”2 – 5 second settlement of transactions

The Shared Ledger (SL) Concept

http://www.gendal.me/

Smart Contract and Shared Ledgers Summary

Shared Ledger

Smart Contract

Application

Three Layer Model Three Layer Model exploded

A

SC

SL

A

SL1

SC1

SC2

SC3

SL2

SL3

Applications remain simple / programmable

Smart Contract Code

Smart Legal Agreements

The DAO / DAO’s

Private

Permissioned

Permissionless

A

B

Notary

Tokenised

What is it?A registry for start-ups to record ownership and founder equity on a blockchain. They have signed up 6 pilot customers (Changetip, Peernova, Chain.com, Tango, Vera and Synack). The NASDAQ pilot facilitates the issuance, cataloging and recording of transfers of shares of privately-held companies on The NASDAQ Private Market.

Why?Ttypically founder share agreements are verbal, leading to issues at seed and Series A. By contrast the NASDAQ pilot provides customers with agreed state of equity, the shared history of ownership, backed up by the network and fixed in the blockchain history. This eases dispute resolution procedures and ensures data integrity and freedom from corruption.

How did they do it?They implemented a standard implementation of Chain.com (which is a forked version of Bitcoin itself). It essentially shared the data between nodes and uses a modified mining algorithm to sign the transactions

Could they have done this without a Shared Ledger or Smart Contract stack? Yes, but the audit transparency / certainty would be removed.

Industry Case Study – NASDAQ LinQ (Chain.com)

SL1A : Peernova

SC1: Chain.com

App: NASDAQ

BreakdownApp: NASDAQ has not released details about the App

Smart Contract: TDG assumes Chain.com uses a private version of UXTO

Shared Ledger: Private Notary Shared Ledger to record ownership

What is it?A customer uses an app embedded in the dashboard of a car to “sign” for a car rental contract digitally. A “smart contract” (computer code) running on a blockchain records that legal agreement, and is then able to use that authority to unlock the car and complete the payment with Visa.

Why?To create a seamless consumer experience around car rental, for the transparency / audit trail a blockchain provides. The longer term aim is that cars themselves would use Smart Contracts to be able to manage their own time (think Uber / Automated cars), a consumer would rent the car itself for a small period of time. The car itself would manage the administration.

How did they do it?Leveraging DocuSign's Digital Transaction Management (DTM) platform, eSignature solution and APIs together with the Visa Token Service for secure payment processing.

Could they have done this with a DevOps stack?Yes, in fact most of it is on DevOps, it’s unclear what (if any) smart contract solution they’re using or if its proprietary

Industry Case Study - Visa, Docusign Car Rental

Unknown / VISA

SC2: Docusign

App: Docusign

BreakdownApp: Docusign bespoke

Smart Contract: Docusign bespoke

Shared Ledger: Unknown if there is any shared ledger at the back, may be helpful for audit purposes. Visa payment engine used

The Next 12 MonthsBuilding on early PoCs with regulatory involvement

• The regulatory reaction to the subject of “blockchain” has been interesting. Whilst Bitcoin as a virtual currency without control presents a few issues, it’s stagnation in recent years has largely stemmed the flow of regulation in that arena.

• Regulators and governments absolutely see the benefits of the technology and appear content to allow the subject to evolve. Regulator feedback to new design choices will be crucial in coming years.

• CFTC speech• UK Government Office for Science report• Bank of England / UCL / RS Coin – Governer Carney Remarks

(Impact on liquidity risk, focus on DLT for resilience)

• We’re now seeing the beginnings of free market competition with solutions like Axoni (in which 7 banks and DTCC collaborated), R3 and Digital Asset now potentially evolving a VHS / Betamax format war. Pay particular attention to recent CLS announcement.

• There is a lot of whitespace – wherever legal document automation is required. Payments and settlement likely the last to change because of their complexity

Key Remaining Challenges

Education • Given the context laid out in this deck, it appears many are still assuming

“classic” blockchains need to be made to fit the scale challenges of banks. Instead of starting with bank requirements and seeing what blockchain characteristics apply

• The C-Suite understands it’s got hype, but need people they can trust who can

• Understand how banking works today• Fully get the complexity of the evolving “blockchain” space• Successfully translate those into business cases• Can bring the control teams and stakeholders across a large

organisation on that journey

Skills• Finding and recruiting the right skills into the right team structure will be a

key challenge as the subject scales• Many hidden gems inside a large organisation!

Research

Invest Experiment✓ Met / Qualified 100s of

start-ups✓ Filtered based on SME

knowledge✓ Database of Start-up

Capabilities

• Research Portal for Banks• Curated Knowledge Base• Database of Start-up

Capabilities

✓ SME led deal flow ✓ Business Case and

Tech DD✓ Network of FI’s as

customers

• Direct investments

• Co-investments• Partnerships

available

✓ Knowledge of Good / Bad UseCases from prior experience

✓ Experience delivering inside banks

• Proof of Concept• Pilots and Consortia

Building• Live Delivery Support

withcompliance / control training

Market Leading Blockchain Insights

Simon Taylor / World leading Blockchain SME and Fintech Influencer

• Led Barclays Blockchain R+D team completing over 60 experiments and 4x pilots in development as of June 2016

• Trusted advisor to UK Government, Bank of England, Tier 1 Banks, Asset Managers and Investors

• World leading subject matter expert with a highly influential network in the Blockchain ecosystem

• WEF Fintech Advisor 2015 - Present• UK Government and Bank of England Advisor• Consultant for top 20 Global Banks on Blockchain• Led development for Barclays to become first Bank to Offer Bank accounts

to Blockchain Companies in UK• Personally met with over 300x Blockchain companies

Chris Skinner / CEO & Managing Director• Author of the bestselling book Digital Bank and its new

sequel ValueWeb, • Contributor to BBC News, Sky News, CNBC and Bloomberg. • Chair of the European networking forum: the Financial

Services Club

• Voted one of the most influential people in banking by The Financial Brand

• Named one of most influential people in financial technology by the Wall Street Journal’s Financial News.

• C-Suite relationships with Tier 1 Banks Globally

David Brear / Investment Director „Right money in the right places“

• Voted as one of the most popular business and FinTech influencers by City AM, WSJ & BBC.

• Advising to banks, regulators & governments• Global Director of Digital Banking in Gartner with senior

roles before this at Infosys, Lloyds Banking Group, Aviva and Foolproof.

• Over 10 years working at an agency, consultancy and on the client side for a number of top financial services global brands.

• Key note speaker at Money 2020, Next Moneyand Finnovate

The Team

Thank you!

We believe financial services is only 1% done and with the power of modern technologies like Blockchain there is significant value to be unlocked. 11:FS team have built digital banks, research portals, benchmarking products and fintech labs across a range of financial services disciplines. Be sure to follow @11FSteam and our podcast @Fintechinsiders which is available on iTunes now!

October 2016

11:FS is a Global Advisory Firm who are recognised subject matter experts in Fintech

11:[email protected]@sytaylor@fintechinsiders – fintech podcast goodness on the go

Simon Taylor – Co founder and Blockchain Director at 11:FS

http://www.11fs.co.uk/

mailto:[email protected]

{ : }Agenda





The Challenges of Blockchain Adoption:

Interoperability, Integration & Scale

Bruce Pon – Co-Founder & CEO of BigchainDB

Challenge: Interoperability

Evan Schwartz – Co-inventor of Interledger

Interledger

Evan Schwartz

Blockchain Interoperability

In this talk:1.How Interledger solves blockchain

interoperability2.Future opportunities and the Internet of Value3.Why Ripple & BigchainDB are the companies

to work with

First, the boring reasons you should care about interoperability

Adopting any new technology isa big investment

Will this new technology...1.Work with my existing stack?2.Work with other new tech in the future?3.Enable new business opportunities?

What is a blockchain?

Blockchains are ledgers

Ledgers record accounts,balances, and transfers

Central Ledger Model

Distributed Ledger Model

We need a protocol forconnecting blockchainsand other ledgers

InterledgerThe protocol for connecting ledgers.

Transferring Assets Across Ledgers

48

Sender RecipientLedger Ledger

Connectors Link Two Ledgers

Connector

Alice 100

Chloe 0

Chloe 110

Bob 0100 110

49

EUR USD

TO:us.wf.bob

First Step: Interledger Address

Sender Attaches Interledger Packet to Local Transfer

Alice 100

Chloe 0

Chloe 110

Bob 0100

51

us.wf.bob

110.00

Connector Forwards the Packet via Another Transfer

Alice 0

Chloe 100

Chloe 110

Bob 0

52

110

us.wf.bob

110.00

If Connectors Fail, Would We Lose Money?

Alice 100

Chloe 0

Chloe 110

Bob 0

?

100

53

Ledgers Provide Hold Functionality

Alice 100

On Hold 0

Chloe 0

Chloe 110

On Hold 0

Bob 0

54

Holds Are Dependent on Conditions + Expiries

55

EXECUTEROLLBACK

Condition Fulfillment Executes Transfer

56

EXECUTEROLLBACK

Timeouts Cause Funds to Be Returned

57

EXECUTEROLLBACK

Sender Commits FundsTo Initiate Payment

Funds Are Committed From Left to Right

59

Alice 100

On Hold 0

Chloe 0

Chloe 110

On Hold 0

Bob 0

COMMITMENT

Sender Puts Funds On Hold

Alice 100

On Hold 0

Chloe 0

Chloe 110

On Hold 0

Bob 0

100

60

us.wf.bob

110.00

Connector Gets Notification of Funds on Hold

Alice 0

On Hold 100

Chloe 0

Chloe 110

On Hold 0

Bob 0

61

?

us.wf.bob

110.00

Connector Puts Funds on Hold

Alice 0

On Hold 100

Chloe 0

Chloe 110

On Hold 0

Bob 0

62

110?

us.wf.bob

110.00

Recipient Gets Notification of Funds on Hold

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 110

Bob 0

63

? ?

us.wf.bob

110.00

Recipient Triggers ExecutionBy Fulfilling the Condition

Transfers Are Executed Right to Left

65

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 110

Bob 0

EXECUTION

? ?

Recipient Signs Receipt

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 110

Bob 0

66

? ?

Signature Fulfills Condition, Ledger Releases Held Funds

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 110

Bob 0110

67

?

Connector is Notified That Funds Have Been Released

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 0

Bob 110

68

?

Connector Passes on the Recipient’s Signature

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 0

Bob 110

69

?

Receipt Releases Funds from Hold

Alice 0

On Hold 100

Chloe 0

Chloe 0

On Hold 0

Bob 110

70

100

Sender Gets Non-Repudiable Proof of Payment

Alice 0

On Hold 0

Chloe 100

Chloe 0

On Hold 0

Bob 110

71

Paths Can Be Short

72

Paths Can Be Extended to Connect Everyone

73

This Is The Interledger

This Is The Internet of Value

Will this new technology...1.Work with my existing stack?2.Work with other new tech in the future?3.Enable new business opportunities?

The state of payments today

Accepting Payments In a Turkish Coffee Shop

79

Payment Methods Accepted By Prineta.com

Accepting Payments Online

Many Types of Payment Networks

80

ACH SEPA Card Blockchain

Payment Networks are Disconnected

81

ACH SEPA Card Blockchain

is what matters.

REACHIn global payments today,

Everywhere you want to be.

There are some things money can't buy.For everything else, there's MasterCard.

Payment Networks Today Compete To Be...

Surprisingly similar to...

Information Networks Before The Internet

"… biggest …"

"… more members …"

"… more services…"

Networks Competed To Be...

Internet Solved the Problem With Internetworking

in·ter·net·work·ingThe interconnection of two or more networks so as to form a larger network.

noun

"… the fastest Internet provider in the nation …"

Now Providers Compete To Be...

"… with super-fast Internet …"



"America's fastest, most consistent and

most reliable Internet."

COSTSPEED

In information networks, it's all about

RELIABILITY

SIMPLICITY

COSTSPEED

Internetworking changes the game.

QUALITYREACH

The Internet Enabled Much More Than Sending Faster Letters

Interledger is internetworking for money

Interledger is inspired by the history and architecture of the Internet

Internet Is A Simple Protocol With A Layered Architecture

IP

WIFI BLUETOOTH ETHERNET

Internetwork

Network

Transport TCP UDP

Application HTTP SMTP NNTP NTP RTP

ILP

BIGCHAINDB RIPPLEISO 20022 BITCOIN ETHEREUM

Interledger

Ledger

Application SPSP PPSP ...

Interledger Is A Simple Protocol With A Layered Architecture

Interledger enables for moneywhat the Internet did for data

Global connectivity

Dramatically lower costs

Brand new industries

Industry transformations

Is your business Interledger enabled yet?

Interledger supported natively by:

Interledger development led by:

Interledger.org

Challenge: Integration

Daniel Aranda – MD of Business Development, Ripple

Global Leader in Distributed Financial Technology

A connected world is creating new demands the current infrastructure can not support.

112CONFIDENTIAL

Demands on Financial Infrastructure

113

CONFIDENTIALPROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.

Payments are the foundation to connecting

a financial ecosystem.

114PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No implied licenses are intended and all rights are reserved.

CONFIDENTIAL

Why Payments?


Make cross-border payments truly efficient for banks and their customers.

115PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple Labs and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple Labs. No implied licenses are intended and all rights are reserved.

CONFIDENTIAL

Ripple’s Mission


116

Today: International Payments Require a Relay Process

Central Counterparty

Sending Correspondent & Liquidity Provider

Receiving Correspondent

Central Counterparty

Sending Institution

Receiving Institution

Key Problems

Limited Access: Intermediaries, single liquidity providerLack of Certainty: Unidirectional messagingDuration (2-4 Days): Limited by settlement windowsHigh Cost: Processing, operations, FX, liquidity cost


117

Today: Direct Global Reach Is CostlyCosts associated with nostro accounts: liquidity, regulations, compliance, risk


118

This Is A Structural Inefficiency

Sending Bank Receiving Bank

Ledger

Record Keeper

Settlement requires a trusted counterparty Creating network silos


119

…Which Distributed Financial Technology AddressesCreating interoperable networksDecentralized architecture eliminates need

for intermediaries


120

Ripple Modernizes the Payments Infrastructure

Applications

Banks

Risk & Governance

Rule Sets

Messaging

Settlement Infrastructure


Messaging

121

High-Level Architecture

RippleConnect

Sending Bank

RippleConnect

Beneficiary Bank

Settlement


122

Ripple: Focus on Cross-Border Transactions


PROPRIETARY AND CONFIDENTIAL; Contents are proprietary to Ripple and provided on the condition of confidentiality. Provided information may be disclosed, reproduced and used only in accordance with a written agreement with Ripple. No implied licenses are intended and all rights are reserved.

123


124


125

1 Bi-directional Messaging ● Pre-transaction communication● Flexible structured message data● Context driven messaging● Real-time liquidity monitoring

2 Real-time Settlement ● Settlement integrated with messaging and FX● Atomic processing of complex transactions● 24/7 real-time inter-bank settlement

3 Liquidity Management ● Option for competitive third-party FX marketplace● Flexibility to use multiple liquidity models● Pathfinding capability to optimize transaction costs

Capabilities Enabling Features

Key Enabling Capabilities with Ripple


126

Financial Technology CompanyWith Expertise in Global Financial Settlement

150 Employees65% Engineering Talent

4 Offices WorldwideSan Francisco HQLondon EuropeNew York North AmericaSydney APAC

Financial Services• J.P. Morgan• Citigroup• HSBC

• DTCC• Visa• PayPal

Technology• Google• Apple• Amazon

• Bitcoin• NSA• MongoDB

Regulations• Federal Reserve - NY & Board of Governors• SEC• Promontory

Team Experience

• Fiserv• ACI• Monitise

• Oracle• NASA• Qualcomm


100+ 30+ 10

Production

Pilot

Active Partners

127CONFIDENTIAL

Market TractionFirst production implementations of blockchain at a bank


Sample Customers & Partners


129129

Challenge: Scale

Bruce Pon – Co-Founder & CEO of BigchainDB

A scalable blockchain databasefor the Enterprise

Challenge: Scaling Blockchain

Level 39, LondonOctober 18, 2016Trent McConaghy

@trentmc

Jim Duffy

[email protected] [email protected] I moved some of the slide to the BDB/MDB section at the end as they related more to the partnership/integration than scale

133

Planetary Scale?What is a Blockchain?

What is a Blockchain?

blockchainblock·chain·\ˈbläk-chān\

Noun1. (1991) hashed-chain of blocks 2. (2008) storage that is decentralized, immutable and holds digital assets

Adjective 1. (2015) a system with the characteristics of decentralized control, immutable and holds digital / digitized assets

0 50 100 150 200 250 300 350

0

200,000

400,000

600,000

800,000

1,200,000

175,000

367,000

537,000

1,100,000

Nodes

Writes/s

Netflix Uses 37%Of The Internet

Bandwidth

Using a modern distributed “big data” database

Two Ways to solve the Blockchain scale problem

1Big Data-fy Blockchains

2Blockchain-ify Big Data

… but how to blockchainify?

- Build on person-decades of work- Significant scalability hurdles

- Build on person-centuries of work- Scalability challenges already re-

solved

or

Architecture – Decentralized Federation

MongoDB consensusConsistent and Resilient

Blockchain consensusTrust is distributed BigchainDB

Federation

MongoDBPlatform

ALICE

BOB

138

Scaling with BigchainDB + MongoDB

THROUGHPUT>1,000,000 writes/s

~100,000 transactions/s

LATENCY<100 ms

CAPACITYPetabytes with each node adding 48TB

QUERYDatabase is fully queryable

SCALABILITYPerformance increases as

nodes are added

DECENTRALIZATIONFederated

non-anonymous participation

A scalable blockchain databasefor the Enterprise

Challenge: Scaling Blockchain

Level 39, LondonOctober 18, 2016Trent McConaghy

@trentmc

{ : }Agenda





Jim DuffyInformation Strategy, MongoDB

Bruce PonCEO Co-Founder,

BigchainDB

+

IBM: Leading the pack in blockchain banking

The uses cases have already emerged

https://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=GBP03467USEN&

The uses cases have already emerged

Reconteur: The Future of Blockchain in 8 Charts

http://raconteur.net/business/the-future-of-blockchain-in-8-charts

Settlements of financial

transactions is just one of the

quintessential use casesSettlement (finance) Settlement of securities is a

business process whereby securities or interests in securities are delivered, usually against (in simultaneous

exchange for) payment of money, to fulfill contractual obligations, such as those arising under securities trades.

Google: “Cost of Settlements”

DecentralizedControl

Tamper Resistant

Asset Autonomy

+

Petabyte Scale

Enterprise Grade

Ease of IntegrationDecentralized

Control

Tamper Resistant

Asset Autonomy

+

Petabyte Scale

Enterprise Grade

Ease of Integration

Low TCOCloud NativeDistributed

DecentralizedControl

Tamper Resistant

Asset Autonomy

+

Best of Two Worlds – BigchainDB + MongoDB

MongoDBBlockchain BigchainDB & MongoDB

Data immutability

Decentralized control

Asset autonomy

High throughput

Low latency

High capacity

Access permissioning

Query & search

Security & PrivacyKey distribution infrastructure allows network participants to identify new members and members to have full control to selectively grant data access

Enhanced Data ProtectionSuppression of internode communication and DB admin activities guarantees that data can’t be modifiedPractically Unlimited

ScalabilityPipelining of events into a backlog table allows block creation every second with transaction validation in parallel. Throughput of 100k+ transaction per seconds

Business LogicCircuit inspired crypto-conditions allow business logic automation and escrow. If/Then simple contracts can be triggered with multisig, time and hash locks

Robust ArchitectureInherits the performance and scalability of the underlying database platform. Customers can choose their preferred database substrate to minimize integration and interoperability barriers

Components of our Solution

153

The Centralized vs Partly Decentralized

Centralized

ApplicationPlatforms

Data Platforms

Centralized

ApplicationPlatforms

Data Platforms

DecentralizedPartly

+

Industry Use Cases

The Centralized vs Partly Decentralized

Determine exposure and positions

Streamline back office processes

Faster post trade settlement

Prevent fraud

Detect leakage

See bottlenecks and delays

Reduce risk and cost of escrow

Reduce time to transmit funds

Provide audit trail and receipts

Enable P2P energy trading

Power IoT and M2M

Balance energy grids

Capital Markets Supply Chain Payments Energy

BigchainDB + MongoDB Example Use Cases

Let us help you get started

The solutions are only months away

+

overcoming the barriers to blockchain adoption

Data & Analytics