what every ceo should know about blockchain

1Copyright © 2017 Accenture All rights reserved.

Blockchain Executive IntroTechnology innovation ForumMarch 29, Utrecht

Copyright © 2017 Accenture All rights reserved. 2

1. What Every CEO should know about Blockchain

2. Areas of Applications

3. A Short Use-Cases Walkthrough

4. Accenture, Your Blockchain Partner


What Every CEO Should know about Blockchain


BLOCKCHAIN AND DISTRIBUTED LEDGERTECHNOLOGIES

“As humans, we find ways to lower uncertainty about oneanother so that we can exchange value”1

Distributed ledger technology (or Blockchain) enables almost-real-time consensus, traceability, visibility over Assets, Dataand Processes… While disintermediating value exchanges.

The power for consolidation without trusted third party ofBlockchain can reform our financial markets, supply chains,consumer payments, marketplaces, ….

What is Blockchain and how does it Impact Insurances?

1 Quote by Bettina Wardburg, TED talk


Introduction

Sending Information over The Internet: Ethernet Protocol

The Information is sent FROM an address, TO an address.

FROM TO

TOFROM

message message

No Possibility for Tracking Changes

No Built-in Trust Mechanism

A lot of uncertainty …


Introduction

How do we lower this Uncertainty Today?

• Management by a Central Authority

• Central Ledgers to Insure Traceability

So what?

• Unnecessary Intermediaries?

• Limited Performances of a Central System?

• Limited Performances of a network of Such Systems ?

… Delays and Lack of Synchronized View

… Lack of transparency and accessible audit trails

… Transaction Costs, Time, …

Central Ledger

Bank

Mail Provider


Introduction

Sending Information over the Internet: Blockchain Protocol

Change in mindsets over the last 10 years, … from central authorities to communities

The Information is sent FROM an address, TO ALL(the messages specifies the receiver)

V V

V

V

V

V

VV

V

The Blockchain Protocol Digitizes Trust by placing the verificationsin the hands of a consensus decision between n participants

December

2008


ROUGHLY 8 YEARS LATER$24,475,090,043 WORTHOF CRYPTO ASSETS

BITSTAMPUSD

21/03/2017 12:00

Bitcoin is 70% of Crypto Assets Market Cap

1BTC = 990€


Introduction

Participants of a Blockchain collectively maintain a distributed shared Ledger

> Keeping track of Who did What When> Keeping track of Who did What How> Validating according to certain Rules Agreed Upfront

10101

10101

10101

10100

10101

10101


Introduction

Different type of Blockchains:

Public

Anyone in the world can read/send/see and validate transaction but also participate in

the consensus process

Consortium

Permissions to participate in the Blockhain (and how to participate) are based on consensus process within a pre-selected set of nodes

Private

Permissions to participate in the Blockchain (and how to participate) in the Blockchain are

centralized to one organization.

Testnet Internal NetworksCross Department


Functional AdvantagesProgrammable Technology

Securely Transmitting Information

Without the Control Central Authorities.

Trustless Exchange of information Between Parties

Fast, 24/7, and low Cost Transactions

Simplifying Large Ecosystems

Immutability & Transparency of Data Exchanges

Users are in Control

Insuring Integrity of Processes

No Central Point of Failure

Decentralised databases & Decentralised Applications

Administered through consensus

Cryptographic algorithms to ensure integrity


Areas of Applications


Applications of Blockchain

Identity

Identity

KYC, Certification, Fraud Register, …

FacilitationFacilitation

Clearing, Notary, Auditing, …

Marketplaces

Virtualized Platforms

Virtualized Marketplaces, …

Ownership

Digital Assets

IP, Contracts, Asset Registry, Supply Chains…

Payments

Payments

Ledger Reconciliation, Cross-Border, …

ContractsSmart Contracts

Administration, Self-Executing Contracts, …


Applications of Blockchain

Blockchain Tech to be

Researched by US Food and

Drug Administration

Blockchain Technology

Explored for US

Homeland Security

Nasdaq Moves Forward

With Blockchain-Based

E-Voting

Report: China’s Banks

are Turning to

Blockchain Technology

Swiss Bank & German

Energy Company Partner

to Deliver Blockchain

Wallets for Cars

U.S. Financial Regulatory

Agency Explores

Blockchain’s Impact On

Securities Trading

Commodities Trading Giant

to Test Blockchain Tech with

Crude Oil Cargo

American Express Wants “Full

Advantage of Blockchain”,

Joins Open-Source

Hyperledger Project

China’s Central Bank

Completes Digital Currency

Trial on a Blockchain

Dutch Banking Giant ING

Conducts 27 Blockchain

Proof Of Concepts

Blockhain Considered in

Proposal to Improve

Regulating Russia’s National

Payment System

Report: Thailand’s

Industry to Adopt

Blockchain Tech by 2018

NEWS FROM JANUARY 2017


A Short Use-Cases Walkthrough


When can Blockchain be a Solution?

• Distributed Ecosystem based on Based on Digital Transaction of Information

• Lack of trustful intermediaries and/or Costly Trustful intermediaries

• Costly and slow processes of Forecasting, Rectification, Reconciliation and/or Consolidation

• High Risk linked with Legal Compliance

• High Risk linked with Traceability and Transparency (opportunity for Fraud or Disputes over the state of information)

• Complex Processes of Disputes and Reconciliation Between Parties )


BUILDING INNOVATIVE PRODUCTSINSURING COMPLIANCY UPFRONT REDUCING ADMINISTRATIVE PROCESSES

No Forecast-Rectification

Full-Traceability of Information Exchange

The System only Acts according to The rules Planned


The Dilemma of Every Financial Institution

• The customer Grants a company Access to ID

• The Blockchain KYC Create a Digital Fingerprint of ID and store them on the Blockchain.

• Customer ID is verified by institutions + Fingerprint are Compared.

• The Customer Stays in Control, Institution can Recycle KYC Checks of Others

• Compliancy in Insured Upfront

• Pushing Idea to Medical Data, Consumer Data, IP

Identity Management Example of KYC Processes


• Providing a greater degree of

• Transparency

• perceived fairness of tariffs

• Process Automation

• Several Startups are working P2P Services such as

• Flight Insurance

• Energy Resale

• Crowdfunding

• Collaborative Supply Chains

• These Applications run through Smart Contractsthat can take automatic actions such as generatemoney transfers or action physical transactions on IoT Devices

• Blockchain makes P2P networks more transparent and trustworthyfor consumers as no central authority controls its operation.

Peer to Peer Services Example of P2P Insurance

V V

V

V

V

VV

V

V


Energy Marketplaces

EV Charging Market Settlement

Vehicle to Grid Transactions

Real time customer switching of retail energy provider

Bundling of additional (non)commodity offerings

Real-time DER porting, switching and tracking capabilities

Grid as a Service model for DER exchange transactions

Wholesale Energy Marketplace

Wholesale Smart Contract Applications

Meter to Meter Payment Transactions

Peer to Peer Energy Trading Marketplace

Connected Home/Self Managing Appliances

Grid Operations Management

Stabilization of load fluctuations

IoT Enabled Asset Management

GENERATION MARKET OPERATIONS TRANSMISSION DISTRIBUTION SMART METERS RESIDENTIAL, SMB, AND C&I

Secured battery storage


B2B Supply Chains Platforms

Customs

Shipping 3

Shipping 2

Shipping 1

Carriers

Freight Forwarders

Freight Forwarders

Shipping 3

Shipping 1

Shipping 2

Customs

Carriers

Production SitesWarehouses

Consumers

All the Parties in the Ecosystem are exchanging Information on the Same Regulated Medium

The Blockchain Application Insure Legal Compliance Upfront, Consolidates in near-real-time, and Automates Processes


Accenture, Your Blockchain Partner


Accenture Global Blockchain Technology

Expertise Community Technology

Industry Experience

Deep Industry Knowledge applied in Use-Case Definition and Exploration

Actively working with a global 2000 to enable and solve use-case using Blockchain Technology

Facilitation of Ecosystems accelerating adoption of technology through joint development (POC, Pilots, Rollouts).

Thought Leadership

POVs on various use-cases and Technology Developments

Start-Up Alliances

Open Innovation Process to Partner with Leading Startups. Including Research Projects in our Technology Labs.

Alliances with Leading Blockchain Startups such as Ripple, Multichain, Monax (Eris), DAH

Blockchain Community Involvement

Founding member of Hyperledger Foundation

Active member in Local Blockchain Communities with regular participation to Hackathons and Meetups.

Research & Innovation

Internal Blockchain Innovation Labfocused on R&D activities

Leading Start-up solution implementation on client-priority use cases

Prototypes and Implementations

Dozens of Prototypes and PoCs developed in various industries.

Extensive Library of Technology Demonstrations

Large Enterprise Rollouts Ongoing


“Blockchain is The Internet of Trust”

Blockchain and Distributed Ledgers have a huge disruptive potential in all the industries.

But what are the disruptions that will affect your organization and How can you disrupt your Industry?

Blockchain Studio NL

Assessing Blockchain and DLT Disruption ?

What are Blockchain and Distributed Ledger Technologies?

What are the Concrete impacts for your organization?

How do you develop the knowhow to create, buildand assess new business models BlockchainTechnology will generate?

Development of one use-case tailored to your context

Collaborative Development with Diverse Team

3-6 Weeks Span

Joint Innovation Process

Deliverable = Minimum Viable Product (MVP) for validation of Business-Case and Ready to Scale


How?


Point of View in your Industry Workshop & Use-Case Definition Collaborative MVP DevelopmentBusiness Case & Scale-Up

Assessment

Starting Point 3-4 Days 3-6 Weeks 3-4 Days

Wh

at

Assessment of Disruptions within your Industry

3-4 Days workshop in our Innovation Center for an Inspiration and Working Session to define concrete use-cases

Agile development of an MVP based on the defined use-cases. Delivery is an concrete Blockchain product that can be demonstrated

3-4 Days workshop in our Innovation Center for a debrief and demonstration of the MVP with presentation of the Business Case

Wh

o

Accenture Expert Teamcomposed of Industry Experts and Blockchain Technology Experts

Collaborative Team with key client process owners, IT architects and Accenture Blockchain Expert and Dev Team

Collaborative Team with Key Technical representative at client and Accenture Blockchain Expert and Dev team

Collaborative Team with key sponsors, technical representatives,Process/IT Owners at client and Accenture Expert Team.


Our Team and Method


Expert Approach on Use-Cases Definition and Validation

Clear Definition of Goals and Business-Case Assessment Method

Agile and Collaborative Development

Diverse Team Composition

• Client Business Process Owner

• Client IT Architect

• Accenture Industry Expert

• Accenture Blockchain Development Team

Learning about Blockchain and Distributed Ledger Technologies

Gaining Hands on Experience and Start with your own Blockchain Building Blocks

Assess What are the Impacts of Blockchain, Create new Business Models and Validate a Range of Use-Cases / Development Timeline


Blockchain Labs NL

Our Component Oriented Blockchain Platform

Blockchain Platforms

Middleware & UI Components Library

Cloud Platform (ACP - Linux or Windows Based)

Multi-vendor Toolbox (Best Performance and Continuity)

Cloud Based Solution (Rapid Deployment on ACP)

Scalable and Flexible Technology Stack

Data Privacy and Control with our Toolbox


Areas of Focus

Permissioning

Permission Systems & Engines

Flexibility

Interface with Other Systems

Scalability

Data Storage and Processing

Hybrid Solutions

Off-chain Storage & Computing

Privacy

Ledger Confidentiality

Identity

Self-Sovereignty & Validation

Immutability

Ledger Modification