1. Blockchain As An Enabler
CFO Connect Symposium 2016
15th July 2016
David Lee, Professor of Fintech, SIM University
Vice President, Economic Society of Singapore
@DavidKChuenLEE
https://www.linkedin.com/home?trk=nav_responsive_tab_home
Disclosure: An Investor in Blockchain and Scalable Technology

2. Financial Services and Blockchain
Trade Financing
Payroll & Insurance
Payments
Banks
Brokerage
Exchanges
Investments
Merchants
Compliance
Trading Platforms
Capital Markets
Money Services
and More

3. A software platform for fast
Blockchain ,and Smart
Contract prototyping ,and
application development.
Blockchain As A Service
Drove effort to create a new
architecture at IBM for connecting
devices in Internet of Things (IoT)
Focused on wearable technologies
• Apple Watch
• Connected medical devices
• Application of sensors and
connectivity to industry
Recruited Paul BrodyDeveloped RUBIX
Support from Big 4
Hiring people with expertise in
Ripple, Hyperledger and Chain.
Aim to be neutral advisor for
clients in implementation,
rather than technical specialist
Blockchain Advisory
Commercial Sidechain
“Liquid” to facilitate fast
and secure transfers
between exchange or
brokerage accounts
• Integrate multiple
blockchains
• Distributed file storage
permission
• smart contract capable
blockchains
Strategic Partnerships

4. IBM Watson
• IBM is part of the Linux-based Hyperledger project.
• Offer ‘blockchain as a service’ for developers to use
within the IBM Cloud via a service called Bluemix. Its API
infrastructure allows external data to be plug into the
WATSON.
• Via the Watson platform, IoT information can be enter
into its blockchain suite. Such information can be
harnessed from RFID chips, barcode scans or mobile
devices.
source：http://thenextweb.com/apps/2016/02/16/ibm-has-just-open-sourced-44000-lines-of-blockchain-code-on-github/

5. • Industrialisation – Manual labour replaced by Machine production
• The development of the modern computers and internet is a proven fact.
• Centralization
• The essence of cloud computing is to provide a single platform to consolidate the hardware,
and software resources administered by different groups in different regions.
Cloud computing is outdated?
Cloud computing has lowered the
cost of operation and improved efficiency。
But, centralisation has its shortcomings too
• Data security.
• Disconnection.
• Data accountability
• Trust mechanism.
source：http://www.wtoutiao.com/p/156D8bB.html “云计算”已成「老炮儿」，将被“区块链”所革命！

6. Is there an alternative technology?

7. In October 2015, the 1st Global Blockchain Summit
was held in Shanghai. Geeks, entrepreneurs, academic
experts, investors, corporate executives, and regulatory
policy makers gathered to discuss the business
applications and opportunities of blockchain
technology in Payments, Internet of Things, securities
trading, digital assets management. Over 200 guests
from the financial industry attended the summit.
In September 2016, there will be a 6-day Summit in
Shanghai!
source：http://www.8btc.com/wanxiang-blockchain-labs-20151015

8. On 20th January 2016, The People’s
Bank of China (PBoC) said that it was
moving towards the launch of its own
cryptocurrency. The bank wants to use
its control over the currency to reduce
money laundering, tax evasion and other
criminal acts. Blockchain will form the
backbone of its eRMB.
source：http://www.wtoutiao.com/p/156D8bB.html “云计算”已成「老炮儿」，将被“区块链”所革命！

9. A n I n t r o t o
B l o c k c h a i n

10. C e n t a l i s e d P l a t f o r m D e c e n t r a l i s e d
Centralised
Platform
DistributedDecentralised
Nodes
Nodes
Nodes
Nodes
Nodes
Nodes
(C) DavidKuoChuenLee

11. Blockchain：First Distributed “Payments” Ledger was from Bitcoin。
Encrypted
transaction
Step 1
Block
A block is formed from online
transactions.
Step 2
The block is distributed to all the
participants
Step 3
Validation is done by cryptography
contest or by consensus algos
Step 4
Step 5
The “winning” or
“chosen”block is
added to a chain of
previous blocks - the
transactions are
recorded and
timestamped
Step 6
Transactions completed
and confirmed
(approximate 6 blocks
to be certain for bitcoin)
Encrypted
transaction

12. Blockchain
Public (ungated)
chains
Private (gated)
chains
Consortium
Chains
Fully Private
Chains
E.g.：R3 CEV
E.g.：Bitcoin
Types of Blockchain
Features of Blockchain
• Distributed/decentralised
• Data are replicated on all the nodes in a distributed P2P network, and each
copy of the ledger is identical to others. It can also be decentralised with
some lighter nodes not having full data storage with limited connection.
• Consensus mechanism
• All users in the network can come to a pre-determined programmable
agreement on the method of validation and can be by consensus.
• Irreversibility and crypto security
• One would need to command at least 51% of the computing power (or nodes
or stake) to take control of the bitcoin blockchain. (or others).
• Openness
• The platform and data can be open and transparent to those who participate.
• Anonymity
• Individual parties can be anonymous. Security keys (public and private key
pairs) are required to gain access to transaction output.
• Multiplatform
• Every blockchain node has the same calculation and data structure.
source：http://www.8btc.com/what-is-blockchain; http:// community.qingcloud.com; https://blog.ethereum.org
There will be other permutations and combinations.
Data in Public Chain can be encrypted or transparent.

13. Features of Blockchain
•Distributed/decentralised
• Data are replicated on all the nodes in a distributed P2P network,
and each copy of the ledger is identical to others. It can also be
decentralised with some lighter nodes not having full data storage
with limited connection.
•Consensus mechanism
• All users in the network can come to a pre-determined
programmable agreement on the method of validation and can be
by consensus.
•Irreversibility and crypto security
• One would need to command at least 51% of the computing
power (or nodes or stake) to take control of the bitcoin blockchain.
(or others).

14. Features of Blockchain
• Openness
• The platform and data can be open and transparent to those who
participate.
• Anonymity
• Individual parties can be anonymous. Security keys (public and
private key pairs) are required to gain access to transaction output.
• Multiplatform
• Every blockchain node has the same calculation and data structure.

15. Telecommunications Voting Healthcare Nortarization Banking
Equity brokerage &
Exchanges
Insurance Web Domain
Internet of
Things
……
More
are
coming

16. Stock/Securities Exchange
1 Bitshares system 2 Blockchain Equity Exchange System.
• Real-time exchange; total transparency
• All corporates can self -issue their securities.
• Open source system，enable tens of thousand of
transactions per second.
• Use mainly for the transactions of private
companies shares.
• Overstock and project Link by NASDAQ are
developing this system.
Advanced
Financial
exchange and
settlement system

17. B a n k i n g
• E.g. Cash transfer
• Present：You＝>bank＝>friend
• Future：You＝>friend
• BIS research report：
The development of block chain technology will change
how central banks operate.
Benefits of block chain that banks can leverage on
• Security: irreversible, immutable, traceable
• Ease of governance : Utilises name base block chain, every node will be identified, e.g. alliances, issuers, general
users
• Low operating cost : Reduce the cost of transactions
• Shortened the settlement time of financial transactions: UBS white paper: business process time can be reduced
to 15 seconds.
• Santander bank: using blockchain technology will help the banking sector to reduce expenses by USD20 million.
• Lower counter party risks
source：http://www.businessinsider.sg/11-banks-in-r3-consortium-use-blockchain-technology-to-trade-2016-1/?r=UK&IR=T

18. Banking R3
Blockchain applications for banking：
From vision to realisation
•R3 (R3CEV LLC) leads a consortium of 40+ financial companies in research and
development of blockchain usage in the financial system.
•11 banks conducted trials on transactions through distributed ledger using
Ethereum and Microsoft Azure.

19. I n s u r a n c e
Traditional
coverage system
Decentralised
coverage
system
• All data are recorded into the
blockchain.
• Any user can start and end their
insurance coverage anytime.
• No need for insurance funding pool.
Mode of insurance coverage
• Irreversible, immutable and
impartial: ensure self authentication
and fairness.
• The decentralised system removes
the need for middleman, which
ensures high utilization of the fund.
Advantages

20. Communication
Design flow of traditional
communication devices：
All nodes will connect through the
shortest or the most efficient route.
Bitmessage as a central link for
message delivery ：
• Message is sent to users of the network,
and users can only access using their
private key.
• Avoid being tracked
• Ensures data security and data transfer
security
GetGems a decentralised hub：
• communication function is
similar to that of Bitmessage
• Equip with Bitwallet
• Transact and earn
cryptocurrency“gems”.
• Users can click on
advertisements for
monetary rewards.
Bitmessage

21. V o t i n g
source： https://followmyvote.com/
Open source
ConvenientLow cost
Secure
AGM will be
transformed
!

22. Internet of Things (IoT)
Today supply chain: buyers, sellers and
their banks are link with one another
Tomorrow’s supply chain:
maintains the same direct connections,
plus complete trustable visibility into
the flow of goods and the flow of
transactions.
• IBM and Samsung Electronics jointly developed the Autonomous Decentralized
Peer-to-Peer Telemetry (ADEPT)
• ADEPT has several capabilities that are fundamental to building a decentralized
(Internet of Things) IoT
• ADEPT operates on three open source protocols: Telehash for messaging, BitTorrent
for file sharing and Ethereum, a blockchain protocol for autonomous device
coordination functions.
• Once a product is assembled, the manufacturer will register on the production
system blockchain. When a consumer purchases the product, he or she can register
the product on the manufacturer regional blockchain for authentication purpose.

23. Notarization
Blockai aims to develop
a new tool that enables
artist to prove and
states their copyright
to their artworks.
Uproov utilises the
blockchain for time
stamp ability.
Stampery wishes to use
blockchain to replace
notarisers, and to
provide authentication
for legality of sensitive
information.
Chronicled utilizes
blockchain technology
to authenticate
collectibles sports shoes.
Irreversibility and incorruptibility allow Blockchain to be widely utilised for notarization purposes
source：http://www.8btc.com/blockchain-item?tagname=%E5%85%AC%E8%AF%81%E9%98%B2%E4%BC%AA

24. Bitproof has setup a one stop
service to notarise education
certificates.
BitSE develops Vechain the
first blockchain-based anti-
counterfeiting technology.
Factom utilizes blockchain to help
businesses and government to
simplify records management,
record business processes, and
address security as well as
compliance issues.
source：http://www.8btc.com/blockchain-item?tagname=%E5%85%AC%E8%AF%81%E9%98%B2%E4%BC%AA
Notarization
Irreversibility and incorruptibility allow Blockchain to be widely utilised for notarization purposes

25. M e di c a l H e a l t h c a re
A collaboration between Estonia
government and guardtime
Healthbank：utilises blockchain
technology to manage and share
personal medical data with medical
professionals.
Applications：
Population Health, medical records, patient data
Strengths：
• Increase the transparency of healthcare services
• Protect patient privacy (Insurance , credit providers, and patients can utilised
the blockchain solutions to manage claims and payments.)
• Major data leak e.g. Anthem – 80 million patients and employees records ;
UCLA Health 4.5million patient records.
• Increase the efficiency of bills payments process.

26. （ V i s a / D o c u S i g n )
The project is in the proof-of-
concept stage. It brings DocuSign’s
Digital Transaction Management
(DTM) platform and eSignature
solution together with Visa’s secure
payment technology (via Bitcoin
blockchain).
Alipay will have similar project.
Users, through their Cars, will
be able to pay for toll fees, buy
pizza ,or subscribe for satellite
broadcast programs.
Consumers can hop into a car in
a showroom, configure the
lease, insurance and other
expenses such as parking and
tolls, notarise it, pay via Visa,
and drive off.。
source：https://www.docusign.com/blog/the-future-of-car-leasing-is-as-easy-as-click-sign-drive/
Contract:
Utilise Docusign to verify lease
and insurance.
Report:
Check driving records
In car payment:
Use Visa card
Service:
Connections through Apps.

27. source：http://www.wanbizu.com/fazhan/201512015809.html；http://www.wanbizu.com/news/201602186602.html；
http://www.wanbizu.com/news/201602186602.html
Government Administration
Ukraine will be the
first to employ
blockchain technology
in its government
administration system..
Bitnation is collaborating
with Estonia to utilise
blockchain to
administer government
affairs…………
A new political party
in Australia is
advocating for the
use blockchain as the
mechanism for voting.

28. 小蚁AntShares 布比区块链
Many more projects are in the pipeline

29. China has more than 50% bitcoin mining power, the largest mining
farm, fastest machines and its exchanges account for more than 50%
of bitcoin trades.
source：https://www.bitmaintech.com/product.htm
AntMiner S7 with 4.73th/s
Less energy, more efficient
AntRouter is a wireless
networking device containing a
bitcoin mining chip

30. WanXiang Blockchain Labs is a frontier research lab focusing on blockchain
technology. The lab will gather experts in this field to work on technological
development, business applications, industrial strategy and other aspects.
The lab will also guide entrepreneurs, and provide reference for the development
of the industry and policy making.
Its overall aim is to benefit the society and economy with blockchain technology.
Products
WanXiang Blockchain Labs
source：http://www.blockchainlabs.org/
Bitcoin blockchain
based development
platform
Ethereum blockchain
based development
platform
Bitshares blockchain
based development
platform
factom blockchain
based development
platform

31. AntShares utilises blockchain technology to digitise physical real world
assets and ownership rights. Through the node to node connection in the
network, Antshares decentralises financial service processes, such as
registrations, security issuances, assets transfers, and settlements
administrations.
Areas for applications
Equity
Crowdfunding
P2P Online
lending
Employee
Shares Issuance
Authorisation
of e-contract
A n t S h a r e s
source：https://www.antshares.com

32. Jingtum BeiJing and HNA collaborate through blockchain
1 Corporate Wallet
Procurement
detailscash
transfersettlement
• Utilise blockchain to
develop a low cost
settlement system.
• Increase efficiency of
information
dissemination
2 Supply chain financing
• HNA award employees with product
discounts, rewards, and bonuses
through the blockchain application
developed by Jingtum.
• Ensures confidential information of
employees are secured, and allows
employee to enjoy more discounts
rewards.
3 Awarding of Welfare bonuses
• Utilise the encryption
technology that is based on
Jingtum block chain.
• Aims to solve the
difficulties in cashflow and
financing ,and in high loan
interest faced by suppliers.
source：http://www.8btc.com/jingtong-hna

33. “One Belt, One Road”Blockchain Applications
As the countries along the One
belt ,One Road project transact using
USD, the China government wishes to
utilise blockchain technology to
develop a cryptocurrency system.
Through the Asia Financial
Cooperation Association ( to be
established), members can work and
decide on the rules, and protocols to
ensure the security and the legality of
the cryptocurrency system.
Improve financial
cooperation, and
communication
Help China corporates
to internationalise
Aid China corporates to minimise
foreign investment pitfalls
Digitise investment/trade information
of the investments in countries along
the “One Belt,One Road” project.
Blockchain-
• will ensure data security ,
transparency, and allow co-
verification, and authorisation of
information。
• Protect intellectual property rights。
Through the digitisation of
production capacity ,and blockchain
network, China corporates can
• Attract investors in countries along
the “One Belt,One Road” project
• Carry out crowdfunding in these
countries or internationally.
• Or even conduct IPO on the
blockchain network.
Solve China’s problem
of production over capacity
source：http://www.ftchinese.com/story/001065381?full=y

35. Blockchain 2.0：Ethereum
Ethereum is a decentralized platform that runs smart contracts:
applications that run exactly as programmed without any possibility of
downtime, censorship, fraud or third party interference.。
• Objective：Develop apps which run on a custom built blockchain that
enable shared global infrastructure and that represent the ownership of
property。
• Value proposition：enables developers to create markets, store
registries of debts or promises, move funds in accordance with
instructions or a futures contract, and many other potential
developments, all without a middle man or counterparty risk。

36. Microsoft, R3, Samsung ,Deloitte、RWE ,and IBM.
What problem does Ethereum wish to solve ?
Utilise smart contract to mitigate counter party risk
and issues
Blockchain 2.0 Core
- Smart contract, Smart Asset
- Rootstock a smart-contract peer-to-peer platform,
is rising fast to challenge Ethereum in Smart asset
developments.
Ethereum supporter？
Blockchain 2.0：Ethereum

37. ZCASH
• ZCASH PAYMENTS: is a decentralized and open-source cryptocurrency that
offers privacy and selective transparency of transactions using advanced
cryptography. Zcash payments are published on a public blockchain, but
the sender, recipient, and amount of a transaction remain private.
• TRANSACTION METADATA: Bitcoin transactions work using triple-entry
accounting: transactions combine the "outputs" of previous transactions
and split into new outputs of arbitrary value. The spend-authority of the
"inputs" of a transaction, as well as the balance of the transaction, are
checked manually by all nodes. This means that all unspent outputs must
be kept by all fully verifying nodes, but also, that all nodes are aware of all
values and parties involved in transactions.
• ZERO-KNOWLEDGE PROOFS: Our zero-knowledge proving
scheme makes it possible to hide values and other identifying information
from the public. Using advanced cryptographic techniques, users simply
prove that the values balance and that they are authorized to spend such
value. (And that they have not spent it before.)

38. NETKI
• NAME SYSTEM: Like the Domain Name System, which provides the
standard and infrastructure for the Internet to map easy to remember
domain names like google.com to a numeric IP address, WNS is
designed to allow service providers, using any blockchain, to replace
the cumbersome public addresses provided to users (example:
1CpLXM15vjULK3ZPGUTDMUcGATGR9xGitv) with easy to remember,
domain-style wallet names.
• IDENTIFICATION: The BIP 0070 payment protocol is another useful
(yet underutilized) extension, which allows a sender to ensure that he
is actually paying the correct/desired recipient, before he
permanently signs away his funds.

39. MORE ON NETKI
• VERIFICATION: In addition to a green lock or check that appears next to a correctly inputted
recipient, BIP 0070 can be used to provide transacting parties with a more detailed record
surrounding the specific aspects of a particular transfer (e.g: what was purchased, the
reason for the transfer, etc.) before the sender ‘presses send’ (initiating an irreversible
transaction). These details can be recorded in the ‘memo field’ of a payment request, which
are transmitted directly between the sender and receiver, without having to permanently
record them on the Blockchain.
• TIMESTAMPING: These payment requests, when combined with transaction details
timestamped on the Blockchain, provide companies and individuals with a more complete,
digital “paper trail”, which can be used as an effective substitute for traditional receipts,
while never inputting sensitive information onto the Blockchain, or exposing any of the
extended transaction details to anyone not a party to the transaction. Moreover, the
utilization of these payment requests can help companies/services remain compliant
with existing AML / KYC / CTF regulations, which generally require
financial institutions and DNFBP (Designated Non-Financial Businesses
and Professionals) to maintain more detailed records of transaction.

40. Travel Rule Compliance Solution
• Validated digital identity certificates
• Work across private and public blockchains
• Aid companies with US Travel Rule [31 CFR 103.33(g)],
Department of Treasury compliance for Money Service
Business (MSB)
• Contain validated identity information
• Work in conjunction with blockchain Payment Protocol
(BIP70/75)
• Can be used for non-repudiation

41. LIBRA As An Interface
LibraTax:
Harnessing Data
And Drawing Data
From Different Sources
For Tax Reporting.
China will have Global
Taxation from next year.

42. Digital Asset
(video, audio,
picture, bitcoin,
DAC, DAH etc) is
the next
asset class and
you need
to monitor,
manage,
custodise and
monetise.

43. Enabler of Self Organised Society
Enabler for Machine Audit
Enabler for Machine Internal Control
Enabler for Machine Tax Advisory
Enable for Credit Rating
Enabler for Data Harnessing
Enabler for Smart Data Analytic
Enabler for Securitisation
Enabler for Asset Transfer
Enabler for Value Transfer
Enabler for Service Sharing
Enabler for Asset Sharing
Enabler for Verification
Enabler for Registration
Enabler for Identification
Enabler for Collaboration
NOW
Future Challenges:
1. Block Size
(Soln: Lightning,
Micropayments)
2. Storage
(Soln: Partitioning,
Shredding)
3. Transactions per sec
(Soln: No Clever Solutions
yet, Partitioning)
4. Privacy
(Soln: Zero Knowledge,
Encryption)
5. Legality and Oracle
(Soln: Self Learning AI
Smart Contract, Oracle
Blockchain for Fulfillment
of Pre-conditions)
What are
slowing the
exponential
adoption?
All About
Computing
Power!

44. From Dark Net to Saviour?
• Is Blockchain a collaboration enabler?
• A basis upon which people/entities can easily collaborate with distant
strangers/entities
• Is Blockchain an asset sharing enabler?
• Will Blockchain lead to a self governing IoT society based on voluntary
institutions via voting?
• Will Blockchain lead to a large scale de-centralized collaboration?
• Will Blockchain be able to run a mutual insurance pool?
• Will Blockchain be able to establish a mutual credit system?
Source: UN Report

45. Noah's
Ark

46. huangyiya07@126.com陈万
Blockchain Research Group
W u Yu T i n g Z a n g M e n g Yu Sun Ming
Chen WanFeng Huang YiYa Lee YinHao
myzang.2015@maf.smu.edu.sg
huangyiya07@126.com
yuting.wu.2015@maf.smu.edu.sg
wfchen.2015@maf.smu.edu.sg Leeyinhao83@gmail.com
ming.sun.2015@maf.smu.edu.sg

47. Join our Wechat
Blockchain
Group. Be
a new node
！

48. Acknowledgements
• Chainb.com
• 8btc forum
• Mentioned companies
• Authors of cited websites
For sharing knowledge and information of Blockchain!