ChainLink Smartcontract 2017 Sibos Presentation

1. Bridging DLT and Smart Contracts with the
SWIFT Network and Existing Bank Systems
Sponsored by and in collaboration with
(smartcontract.com)

2. Smart Contract Securities
Smart Contract: a digital agreement that is tamper-proof,
because it is run on a decentralized computing network.
Industry-wide
Interoperability
Fully Automated
Bank Processes
Faster Dispute
Resolutions
Most Settlement
Risks Eliminated
Direct Access
For Regulators

3. Smart Contract Securities
Smart Contract: a digital agreement that is tamper-proof,
because it is run on a decentralized computing network.
Industry-wide
Interoperability
Fully Automated
Bank Processes
Faster Dispute
Resolutions
Most Settlement
Risks Eliminated
Direct Access
For Regulators

4. Smart Contract Securities
Smart Contract: a digital agreement that is tamper-proof,
because it is run on a decentralized computing network.
Industry-wide
Interoperability
Fully Automated
Bank Processes
Faster Dispute
Resolutions
Most Settlement
Risks Eliminated
Direct Access
For Regulators

5. Smart Contract Securities
Smart Contract: a digital agreement that is tamper-proof,
because it is run on a decentralized computing network.
Industry-wide
Interoperability
Fully Automated
Bank Processes
Faster Dispute
Resolutions
Most Settlement
Risks Eliminated
Direct Access
For Regulators

6. Smart Contract Securities
Smart Contract: a digital agreement that is tamper-proof,
because it is run on a decentralized computing network.
Industry-wide
Interoperability
Fully Automated
Bank Processes
Faster Dispute
Resolutions
Most Settlement
Risks Eliminated
Direct Access
For Regulators

7. Smart Contract Securities
Smart Contract: a digital agreement that is tamper-proof,
because it is run on a decentralized computing network.
Industry-wide
Interoperability
Fully Automated
Bank Processes
Faster Dispute
Resolutions
Most Settlement
Risks Eliminated
Direct Access
For Regulators

8. Connected Smart Contracts Need Middleware
Oracle: middleware that gives a smart contract access to
systems outside its decentralized computing network.

9. Key Questions During Initial Implementation
• How will blockchains interact with banks to enact
payments to and from existing bank accounts?
• How will asset servicing work for smart contract
securities? (signatures, dividends, collateral, etc…)
• How will regulators and compliance interact with new
smart contract securities? what will be improved?

10. Key Questions During Initial Implementation
• How will blockchains interact with banks to enact
payments to and from existing bank accounts?
• How will asset servicing work for smart contract
securities? (signatures, dividends, collateral, etc…)
• How will regulators and compliance interact with new
smart contract securities? what will be improved?

11. Key Questions During Initial Implementation
• How will blockchains interact with banks to enact
payments to and from existing bank accounts?
• How will asset servicing work for smart contract
securities? (signatures, dividends, collateral, etc…)
• How will regulators and compliance interact with smart
contract securities?

12. Market Data
0 1 0 111 0 11 0 1
Fully Connected Smart Contract Securities
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate

13. Market Data
Market Rate
Smart Contract
0 1 0 111 0 11 0 1
Fully Connected Smart Contract Securities
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101

14. Market Data
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
Fully Connected Smart Contract Securities
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
Market
Data
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101

15. Market Data
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
Fully Connected Smart Contract Securities
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101

16. Market Data SWIFT Payments
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
Fully Connected Smart Contract Securities
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101
0 1 0 11 0 11 0
Payment

17. Market Data SWIFT Payments
0 1 0 11 0 11 0
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
Fully Connected Smart Contract Securities
$$$$$
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101
0 1 0 11 0 11 0
Payment

18. Market Data SWIFT Payments
0 1 0 11 0 11 0
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
0 1 0 111 0 11 0
Fully Connected Smart Contract Securities
Confirmation
$$$$$
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101
0 1 0 11 0 11 0
Payment

19. Market Data SWIFT Payments
0 1 0 11 0 11 0
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
0 1 0 111 0 11 0
Fully Connected Smart Contract Securities
Confirmation
$$$$$
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101
0 1 0 11 0 11 0
0 1 0 111 0 11 0
Confirmation
Payment

20. Market Data SWIFT Payments
0 1 0 11 0 11 0
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
0 1 0 111 0 11 0
Fully Connected Smart Contract Securities
Confirmation
$$$$$
Smart Contract Securities
Defined Using ISO20022
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101
0 1 0 11 0 11 0
0 1 0 111 0 11 0
Confirmation
Payment

21. Market Data SWIFT Payments
0 1 0 11 0 11 0
Market Rate
Smart Contract
Smart Contract
Security (Bond)
0 1 0 111 0 11 0 1
0 1 0 111 0 11 0
Fully Connected Smart Contract Securities
Confirmation
$$$$$
Smart Contract Securities
Defined Using ISO20022
Individual Bank
Interest Rate
Smart Contracts
101101
11 0 1
101101
1 0 111 0 1
11011101
Market
Data
Credit
Data
Debt
Score
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
0 1 0 111 0 11 0 1
Individual Bank
Interest Rate
101101011100010101
0 1 0 11 0 11 0
0 1 0 111 0 11 0
Confirmation
Payment

22. Demonstration

23. USB Token
for Secure
Messaging
Secure VPN
Connection
over WWW
Alliance Lite2
SWIFT via Cloud
Member Banks
Bank Back-office
Applications and
Core Systems
Connecting Smart Contracts to Bank Systems
0 1 0 11 0 1

24. USB Token
for Secure
Messaging
Secure VPN
Connection
over WWW
Alliance Lite2
SWIFT via Cloud
Member Banks
101101
Bank Back-office
Applications and
Core Systems
Connecting Smart Contracts to Bank Systems
0 1 0 11 0 1

25. USB Token
for Secure
Messaging
Secure VPN
Connection
over WWW
Alliance Lite2
SWIFT via Cloud
Member Banks
101101
SmartContract Securities
Across Multiple Networks
Public and/or Fully Private
Bank Back-office
Applications and
Core Systems
Connecting Smart Contracts to Bank Systems
0 1 0 11 0 1
101101

26. Banks as Secure Smart Contract Resources
120+ Members
Rapidly Growing
Securities Volume

27. Banks as Secure Smart Contract Resources
00101100001
120+ Members
Rapidly Growing
Securities Volume
On-Chain Command
0 0 1 0 11 0 0 0 0 1On-Chain Command

28. Banks as Secure Smart Contract Resources
0 111 0 1 0 0 1
011101001
0 111 0 0 1
00101100001
0
111
0
1
0
0
1
120+ Members
Rapidly Growing
Securities Volume
Global Banking
Infrastructure
$$$$$ $$$$$
$$$$$
$$$$$
On-Chain Command
0 0 1 0 11 0 0 0 0 1On-Chain Command
Blockchain Middleware
Selling Bank Services

29. Banks as Secure Smart Contract Resources
0 111 0 1 0 0 1
011101001
0 111 0 0 1
00101100001
0
111
0
1
0
0
1
011101001
011101001
120+ Members
Rapidly Growing
Securities Volume
Global Banking
Infrastructure
$$$$$
Com
pliance
Com
pliance
$$$$$
$$$$$
$$$$$
On-Chain Command
0 0 1 0 11 0 0 0 0 1On-Chain Command
Blockchain Middleware
Selling Bank Services

30. Banks as Secure Smart Contract Resources
0 111 0 1 0 0 1
011101001
0 111 0 0 1
00101100001
0
111
0
1
0
0
1
011101001
011101001
120+ Members
Rapidly Growing
Securities Volume
Global Banking
Infrastructure
$$$$$
Com
pliance
Com
pliance
$$$$$
$$$$$
$$$$$
On-Chain Command
0 0 1 0 11 0 0 0 0 1On-Chain Command
Blockchain Middleware
Selling Bank Services