Presentation brought to the www.odisee.be alumni on their gathering the 20th February.

1. Koen Vingerhoets – @IthronKoen on

2. • Master in Law (2000, UA)
• Experienced in IT (I dream in code)
• KBC since 2011 (Lean coach, Cultural Change, Insurance)
• Blockchain since 2014, officially since 2016
• Gadgets
• Garamond font
• Lord of the Rings
• Intelligence
• Humor
• Garlic
• Books from Thea Beckman
• Inefficiency
• Lists
• Irony
7) Inconsistency

3. Three questions to start with.

4. 4
Blockchain, not bitcoin
Preliminary remarks
• Bitcoin is “A”, not “THE” blockchain;
• My focus is on Blockchain, not bitcoin;
• No 10 minutes wait / transaction;
• No crazy electricity use;
• Anonymous as far as needed;
• No cryptocurrency needed;
• I don’t know which crypto you should buy;
Explaining blockchain without mentioning bitcoin is impossible.

5. Agenda
Bitcoin & blockchain
Key benefits of DLT
Blockchain use cases
Conclusion

6. 2008 – “Satoshi Nakamoto” writes…

7. Bitcoin = unique transfer of value

8. Blockchain persists all the unique transfers

11. Agenda
Bitcoin & blockchain
Key benefits of DLT
Blockchain use cases
Conclusion

13. Understanding distributed ledgers Nomen est omen : blockchain
A transaction is
- Declaration of an incident
- Pictures of the accident
- Signed contract
- A proof of payment
- An offer from car repair
- Steps in the RDR wizard
- …

14. vs
1. Every hash is unique
2. Infinitly reproducable
3. One way traffic
Understanding distributed ledgers Encryption vs hashing
When you know a
hash is NOT unique

16. Understanding distributed ledgers Encryption vs hashing

17. Understanding distributed ledgers Encryption vs hashing

18. Understanding distributed ledgers Encryption vs hashing

20. Blockchain : a business definition
The blockchain is, from a business point of view,
 A shared platform
 On which parties who don’t know or trust each other
 Are able to collaborate with respect for privacy
 Without relying on a possibly corrupt administrator.

21. Blockchain : a database with benefits

22. Transparency
Blockchain : a database with benefits

23. 23
Private permissioned ledgers
Trusted financial institutions create a secure environment on the infrastructure that already holds your money.
Public
Private
BTC 1984
? KBC
Permissionless Permissioned

24. vs
Transparency: permissioned vs permissionless

25. Ownership
Transparency
Blockchain : a database with benefits

26. Nicki -> KoenIN 0,8 BTC
Wim -> KoenIN 0,6 BTC
Koen -> ThomasOUT 1 BTC
Wim -> KoenREST 0,4 BTC
Koen receives two payments
- 0,8 BTC from Nicki
- 0,6 BTC from Wim
Koen transfers 1 BTC to Thomas
- 0,8 BTC + 0,2 BTC
- 0,4 BTC is unspent transaction
• (A defined number of) assets are
stored on the blockchain
• Each asset is identified
• Assets are divided
• Assets are transferred (not copied)
=> Clear view on who owns what when.
Ownership : how value is stored

27. Ownership
Transparency
Traceability
Blockchain : a database with benefits

28. Traceability : defense of the sequence

29. Ownership
Transparency
Traceability
Distributed
Blockchain : a database with benefits

30. Trusted party &
Single point of failure
Distributed : centralized vs distributed

31. TrustOwnership
Transparency
Traceability
Distributed
Blockchain : a database with benefits

32. Trust : consensus as a service

33. TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain : a database with benefits

34. A smart contract is an agreement whose execution is both automated and enforceable.
• The actual “transaction” among parties is expressed through and independently
executed by computer code, no party can block it or otherwise tamper with.
• It constitutes legally binding rights and obligations of the involved parties.
Advantages:
• Parties are in consensus at all times as to the existence, nature and evolution of
the facts shared among them, which are governed by the program.
• Used to satisfy
• common contractual conditions,
• lower transaction costs and risk, and
• eliminate the need for trusted intermediaries.
Smart contracts : definition

35. Smart contracts : a bunch of code

36. Smart contracts : a workflow

37. Smart contracts : a Ricardian contract

38. TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
… to share with our friends ...
Blockchain : a database with benefits…

39. Blockchain : a database with benefits…
… to share with our friends ...
… to have a single shared source of truth.
Blockchain:

40. Agenda
Bitcoin & blockchain
Key benefits of DLT
Blockchain use cases
Conclusion

41. 41
KBC Decision model (© David Birch)

42. Focus on making things better, not just adding stuff.

43. KBC Insurance | Document Authenticity

44. Every digital asset
deserves a hash
on a blockchain.
BHAG : Big Hairy Audacious Goal

45. Trust Chain - your digital documents on the blockchain
Why?
Trust
Digitalization
Fraud

46. Trust Chain - your digital documents on the blockchain
Why?
How do we, as insurer,
secure trust of our customers
in our digital assets,
now and in the future?

47. Trust Chain - your digital documents on the blockchain
What
Authentic
Validity
2-sided

48. Trust Chain - your digital documents on the blockchain
VALID FROM
26 April 2017
VALID FROM
VALID FROM
VALID FROM
VALID FROM
VALID FROM
Proof of Authenticity
Proof of Existence
Proof of Validity

49. Trust Chain - your digital documents on the blockchain
https://www.bloomberg.com/news/articles/2016-11-22/vinci-says-builder-isn-t-revising-acccounts-cfo-isn-t-fired
• French constructor Vinci, active in +100 countries
• Not hacked but impersonated
• Fake press release on fake website
• Bloomberg picks up first
• Shares drop with 18%
• How to undo?

51. Trust Chain – but why blockchain?
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain is…
… the single shared source of truth.

52. KBC Bank – Credits | My Car

53. Buying a car is fun … but we found a way to
kill it
The joy of buying a (new) car

54. customer
branch
HQ
invoice
Check
invoice
Registers
invoice
Scans invoiceCredit =
approved
Pay credit
garage invoice
Pay for car
Receives
payment
Extra check invoice
Reality checks in the current process

55. don’t digitize, rethink
focus on end to end customer experience
include our business (payment, insurance,…)
respect regulations (GDPR,…)

56. customer
KBC
Blockchain
invoice
Register hash
& some details
Credit =
approved
Pay from
credit / account
garage invoice
Pay for car
Receives
payment
Transparency
on status
Register
relevant data
Data of
invoice/credit
An holistic approach for an optimal customer experience

57. Expand the network!

59. Agenda
Bitcoin & blockchain
Key benefits of DLT
Blockchain use cases
Conclusion

60. Blockchain & financial institutions : the forgotten words
LIABILITY GOVERNANCE REGULATIONS

61. 1. Blockchain strategy is about collaboration.
2. Not just IT, also business is involved (risk appetite).
3. Unpredictable reactions of regulator & Government.
4. Financial signals (ROI) are problematic.
5. Radical uncertainty is the norm.

62. We
Do you sell trust & data?
Blockchain is trust & data.

63. Koen.Vingerhoets@kbc.be
Twitter : @IthronKoen
TrustOwnership
Transparency
Traceability
Distributed
Smart contracts
Blockchain is…
… the single shared source of truth.