16. BLOCKCHAIN
• Is digitally distributed across a number of computers in almost real-time
• Uses many participants in the network to reach consensus
• Uses cryptography & digital signatures to prove identity
• Has mechanism to make it hard to change historical records
• Is time-stamped
• Is Programmable
17. BLOCKCHAIN ADVANTAGES
• Removes single point of failure
• Disintermediation & trustful exchange
• Faster transactions & lower transaction costs
• Transparency & immutability
• Solves Byzantine Generals problem
18. BYZANTINE GENERALS PROBLEM?
A way for one Internet user to transfer a unique piece of
digital property to another Internet user, such that the
transfer is guaranteed to be safe and secure, everyone knows
that the transfer has taken place, and nobody can challenge
the legitimacy of the transfer
19. BLOCKCHAIN CHALLENGES
• Nascent technology
• Large energy consumption (Bitcoin miners attempt 450 thousand trillion
solutions per second)
• Integration concerns
• Cultural adoption
• Initial capital cost is high
20. BLOCKCHAIN IS NOT
• Suited for high performance (millisecond) transactions
• For just one participant (no business network)
• A messaging solution
• A transaction processing replacement
• Suited for low value, high volume transactions
29. ETHEREUM
• Is an open source crowd funded project
• Allows network of peers to processes and replicates smart contract
(short computer programmes)
• Supports execution of Contract on occurrence of certain event or due
date expiry
• Supports adding new block to the chain every 18 secs
• Has inbuilt cryptocurrency “Ether (ETH)” just like Bitcoin (BTC)
33. SMART CONTRACTS
Smart contracts are computer protocols that facilitate,
verify, or enforce the negotiation or performance of a
contract, or that make a contractual clause unnecessary.
37. YES BANK MULTI NODAL
BLOCKCHAIN SOLUTION
Yes Bank ties-up with Bajaj Electricals for vendor financing
using blockchain
38. KEY POINTS OF SOLUTION
• The entire process cycle for bill discounting reduces from four days (owing
to manual intervention and transit) to almost real-time
• Team up with IBM to use HyperLedger as blockchain implementation
• Transparency to all parties through blockchain’s shared public ledger
eliminating paper trail & manual intervention
• The entire transaction history of a particular vendor is recorded and is
immutable through blockchain
• The transaction status along with details are seamlessly transmitted to Bajaj
Electricals’ ERP
• Use of a permissioned blockchain with flexibility to add other participants
later
