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Enrich Perspective - Blockchain
Pallav Kumar
Senior Consultant
26 September 2016
“...let us begin and create in idea a State;
and yet a true creator is necessity,
which is the mother of our invention.”
The Republic, Book II, 369c, Plato

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1. Overview
2. Spectrum of De-Centralization
3. WHAT is it
4. WHERE it is being used
5. WHEN should we use it
6. HOW it works
7. WHY it’s crucial
IN THE NEXT 2700 SECONDS, WE’LL COVER

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Overview

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As innovation accelerates, proponents are exhibiting its potential
Focus has shifted towards leveraging it as a distributed ledger
An enterprise eco-system needs an ascent to evolve up the value
chain to enhance B2B relationships.
A platform is required to build complicated & connected network
• Reduce cost
• Craft a comprehensive value creation
Bitcoin over shadowed the ingenuity of blockchain

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Spectrum of De-Centralization

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Sp e c t r u m o f ( d e ) c e n t r a l i z a t i o n
Centralized DecentralizedHybrid
• Central party perform
data & Transactions
and have full control
• No Consensus
mechanism
• Other parties just read
• Cost Effective
• Single point of failure
• Permissioned Ledger
• Control is distributed
across the group
• Consensus mechanism
relies on rules
• Most suited for
consortiums
• Public ledger
• Every one has access
• Copy of ledger is present
on every node
• Incentive paid for
consensus
• No single point for failure
Centralized Hybrid Decentralized

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WHAT

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A specific type of distributed ledger database that maintains a continuously growing list of
transaction records ordered & verified into blocks with various protections against tampering and
revision through cryptographic security and network validation.
"timestamp server“
Replica of ledger exist on every node
BLOCKCHAIN
Technical
• An open ended database
that maintains an open
distributed ledger
Business
• An exchange network for
moving value in between
peers.
Legal
• A transactional validation
mechanism that does not
require the assistance of
an intermediary.

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Characteristics
Ledger
Store of immutable
information
Consensus
Protocol exists to
reach agreement
Distributed
No central authority
Nodes connected
over network

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Components
A continually updated,
network hosted ‘database’ of
all transactions on a
blockchain.
Comprised of blocks of
transactions (with metadata)
chained together by
cryptography
Programmed into each
blockchain protocol, and
responsible for verifying
and updating transactions
on the network’s digital ledger;
not necessary in private
blockchains
The good transacted on a
blockchain;
Any form of digital asset
Digital Ledger Consensus
Mechanism
Digital Asset
Computing nodes with access
to the blockchain, able to
manipulate the ledger and
view past transactions;
May be pre-approved or
verified by a consensus
mechanism
Holds a replicated copy of
ledger
Network Participants

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WHERE

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Exponential growth - has inspired & fueled an entire ecosystem
A broad range of innovators are creating solutions in different verticals
This technology is amalgamation of
Technology Driven Business Model
Legacy
• Inefficient
• Expensive
• Error
sensitive
• Vulnerable
State-of-the-art
• Efficiency
• Consistent
• Secure
• Resilient
BLOCKCHAIN
• Cryptography
• Immutable transaction log/ledgers
• Transaction approval mechanisms
• Distributed databases
• Peer-to-peer software

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• Capital Markets & securities servicing
• Hedge Funds & Wealth Management
• Arbitrage - Commodity/Forex Trading
• Retail/Wholesale Payments
Disrupting Verticals (Finance)

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• Legal(notarization)
• Supply Chain
• Art & Media
• Health Care
• Corporate Governance
Disrupting Verticals (Non-Finance)

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WHEN

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• Shared repository with set of Rules
• Multiple non-trusted writers
• Dis-intermediation
• Transaction interaction
Strategic Investment
…….will start being used in production in the next few months & become mainstream in a few years

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HOW

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Don Tapscott: How the blockchain works

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Process Flow

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WHY

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• Revolution - Changing the way we do business
• Transfer value Securely & eliminates Cost of Trust
• Remove Intermediaries & eliminates Cost of Transfer
• Propels Wealth creation
Global Disruption

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 Cost reduction
 Faster processes
 Standard creation
 Authentication and security
 Creation of new products and channels
Business Benefits Value creating prospects

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‡ The transaction volume blockchain can handle
‡ Hidden cost involved
‡ Managing privacy and holding transparency
‡ Interoperability as there are no standard protocols
‡ Regulations
Risks

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† Achieve readiness early
† How products & services look like in a blockchain-enabled world
† Impact every arena exponentially
† Extinguishes information asymmetry
Imagine the BLOCKCHAIN World

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Thank you
Pallav Kumar
Senior Consultant
Pallav.kumar@globallogic.com
+91-7838155540