Blockchain onSupply Chain Finance

10+ Years of financial integration experience20+ Countries - worldwide implementation200+ Integration projects70 ppl Global coverage with highly skilled professionals

HQ BelgiumOffices United States, Ukraine, Portugal (2) and Mexico

Linux Foundation’s Hyperledger Project Founding member of since 2016

Blockchain Ecosystem Partner since 2016Business Partner since 2016

Oracle Blockchain Cloud Services Partner 2017

Integration Partner since 2013Service Partner since 2009Solution Partner since 2007

IntellectEU

Company Profile

Technical expertise

SWIFT Integration Services

▪ Back Office Integration

- SWIFT Integration Layer (SIL)

- SWIFT Alliance Access Integration Platform (IPLA)

▪ Messaging Interface

- SWIFT Alliance Lite2 Implementation (Basic set-

up and Turn-key set-up)

- SWIFT Alliance Lite2 Support (POM, mini-POM)

- Alliance Messaging Hub (AMH)

▪ Trainings for SWIFT Users

- On-site training

- Off-site support after training

▪ Systems design, configuration and

administration

▪ Script development and implementation

▪ Installation of system software and banking

apps, testing

▪ Performance monitoring, capacity planning,

analyzing and system tuning

▪ Working with customer requests, managing

incidents, problems, changes

▪ Communication with SWIFT, participation in

audits

4

ISO 20022, ISO 15022, FIX, EDI.Standards

Protocols

Networks

Applications

JMS, FTP, SMTP/IMAP, IBM MQ, REST, SOAP, IDOC (SAP).

Blockchain, SWIFT, Fed, FIX, CHIPS, Target2, SARIE, EBICS.

SAP, SWIFT Alliance Access, Oracle, TemenosT24, FlexCube, TurboSWIFT,

Quantum, Olympic, Tax/Mint, Google Enterprise, Salesforce

Technical expertise

Financial Integration Services

Blockchain integration services

5

▪ Platforms

▪ Implementation

▪ Vertical solutions

▪ Custom use cases

▪ Proof of Concepts and MVPs

▪ Integration

▪ Financial integration - SWIFT Integration

▪ Back office applications

▪ Legacy systems

▪ Compliance with Industry Standards, Formats & Protocols

2014 2015 2016 2017

Quorum™

2018Initial Research

Oct 2016: Amsterdam Hackathon

6

18h40 – 19h20

History behind Blockchain,

key features of Blockchain,

current status quo

and opportunities out there

Bitcoin, Blockchains and Distributed ledgers

Differentiating factors

Technology and platforms

Applications in different markets

“The electric light did not come from the continuous improvement of candles." - Oren Harari

Agenda

Bitcoin, Blockchains and

Distributed ledgers

7

Recommended link - Princeton Online course:Bitcoin and Cryptocurrency Technologies

https://online.princeton.edu/course/bitcoin-and-cryptocurrency-technologies

Bitcoin, Blockchain and

Distributed ledgers

8

2 min video from World Economic Forum Jan/2017: What is blockchain?

Drivers:

• OPEX Reduction & Risk mitigation• New business models

Transactions are

cryptographically signed

Every node has a

copy of the ledger

https://www.youtube.com/watch?v=6WG7D47tGb0&feature=youtu.be

Roles (e.g. hyperledger)

9

Source: http://www.coindesk.com/state-of-blockchain-q1-2016/ Recommended link - Princeton Online course:Blockchain for Business - An Introduction to Hyperledger Technologies

https://www.edx.org/course/blockchain-business-introduction-linuxfoundationx-lfs171x

Differentiating factors

10

• Immutable records

• Privacy

• Distributed with no need for 3rd trusted party

• Consensus mechanism

• Programmable rules (smart contracts)

Provenance Immutability Finality Consensus

What’s new?

• Low settlement cost

• Risk reduction

• Transparency

• Single source of truth

• Increased resiliency – no single point of failure

Technology and platforms

11

SOURCE: https://www.coindesk.com/research/state-of-blockchain-q3-2016/

Not exhaustive

ENTERPRISE BLOCKCHAINS

ENTERPRISE ETHEREUM ALLIANCE

12

SOURCE: https://media.coindesk.com/uploads/2017/09/state_of_blockchain_q2_2017.pdf

ENTERPRISE BLOCKCHAINS

HYPERLEDGER

13

SOURCE: https://media.coindesk.com/uploads/2017/09/state_of_blockchain_q2_2017.pdf

Hyperledger community•170+ members: Banks, Technology Companies, Corporations

•300+ contributing developers, 2000 + slack channel participants

•80+ PoCs, 3.6M lines of code

ENTERPRISE BLOCKCHAINS

Comparison

15

http://explore-ip.com/2017_Comparison-of-Ethereum-Hyperledger-Corda.pdf

http://explore-ip.com/2017_Comparison-of-Ethereum-Hyperledger-Corda.pdf

Potential of adoption

16

In http://raconteur.stfi.re/business/the-future-of-blockchain-in-8-charts?sf=xwowezz#aa

http://raconteur.stfi.re/business/the-future-of-blockchain-in-8-charts?sf=xwowezz#aa

Applications

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• Banking• Payments and money transfers• Cybersecurity• Academic records and

academia• Voting• Car leasing and sales• Networking and IoT• Forecasting• Online music• Ride sharing• Stock trading• Real estate• Insurance

https://www.cbinsights.com/blog/industries-disrupted-blockchain/

• Healthcare

• Supply chain management• Cloud storage• Energy management• Sports management• Gift cards and loyalty programs• Government and public benefits • Gun tracking• Wills and Inheritances• Retail• Charity• Law Enforcement• Human Resources• Ride Hailing

1. Understand 2. Select area3. Define Use

cases

• Complementary solutions

• New business models

• Solve problems not

addressed so far

• Cost reduction

• What is it?

• Which are the

differentiatingfactors?

https://www.cbinsights.com/blog/industries-disrupted-blockchain/

Blockchain approach

18

• Design Thinking• Key use cases

Phase 1 – Proof of ConceptPhase 2 – Minimum Viable

ProductPhase 3 - Roll-out

• Performance • Scalability• Availability

• Security • Data protection • Data segregation

Blockchain for Central Bank

Document management and authentication

Know your customer

Identity management

Insurance claim management

Invoice discounting

Supply chain finance

Smart correspondent banking

USE CASES DEVELOPMENT

Solutions

Services

Blockchain approach

19

Invoice discounting

Challenges and requirements

20

Trust Consensus Immutability

Provenance Finality Redundancy

Security

Performance

Availability

Scalability

Auditability

Compatibility with legacy

Reconciliation issues

Manual matching

Human processes

Data synchonization

Lack of visibility

Fraud

Challenges Requirements

Blockchain

Invoice discounting

Solution on BCS

21

Abstract:

The producer gets financing over his invoice

before the due date by sharing the Accounts

Receivables information with the Bank.

The solution provides transparency, which

means less risk to the Bank.

Benefits

• Liquidity for the vendor

• Risk Management for the Banks

Blockchain

Koan Factory Company

1. Invoice3. Shipping

2. Invoice Approval5. Payment

Jupiter Bank

4. Invoice factoring proposals

Rhino Retail Company

Galaxy Bank

Producer Buyer

Bank 1 Bank 2

ERP / AP SystemERP/ AR System

Oracle BCS

Oracle SCM Cloud

Thank you!

Paulo.Rodrigues@intellectEU.com

www.intellecteu.com

@IntellectEU

mailto:Paulo.Rodrigues@intellectEU.comhttp://www.intellecteu.com/