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Blockchain – revolutionary change or not?Blockchain – revolutionary change or not?Use cases in other industries such as Life Science and Healthcare are also being explored:Use CasesProviders12Life Sciences Interoperable health records Pharmaceautical supply chain Value based care calculations Pharmacy RX fulfillment Marketing expendturereporting PBM auditing Clinical trails Genomics IP & collaborationPayers Claim adjudication usingsmart contractsMed Tech Smart device connectivity Dispute managementshadowchains Provider directories43Trade Finance – Letters of credit areone of the most commonly used tradefinance instruments today and rely onhighly manual, paper-based processes.Due to extended processing time ina trade transaction, purchasers andsuppliers are not making the mostefficient use of their capital as well as theauthenticity of trade documents is requiredthroughout the process to preventfraudulent transactions.A Blockchain-based solution can capturethe details contained in a purchaseorder, bill of lading, invoice, and trackingof shipment in a smart contract on theblockchain. We created smart oracle toprovide shipping tracking information andtrigger conditions within the smart contractmechanism (e.g., smart oracles, detect apayment).Source – Deloitte ResearchGlobally, a few non-financial use cases havealso emerged to the fore. Abstracts of suchuse casesare shown below:Deloitte has developed multiple prototypesacross sectors and use cases. We havementioned a few of these use cases below:Cross-Border Payments – Cross-borderpayments volume business to businessand consumer to consumer and on therise ( 155bn market). In the current set-up,sending money across the border takes alot of time (2-7 days on average), 8%costson an average as transaction cost (11.2%with banks), the current system does notprovide the ability to share rich meta-data,and end-to-end traceability.Payments on blockchain can be quick (510 seconds), cheap (network transactioncosts near zero), data rich (enable sharingrich transaction data and sender/receiverinformation for AML checks), frictionless(paperless front-end; competitive ratesdelivered by pathfinding algorithms,great customer experience), immutable(tamper-resistant record creates a singlesource of truth for reporting), transparent(provide end-to-end visibility of fundsand ownership), and secure (protected bycryptography & multi-key authorization). Itcan also open up new business models likemicro-payments, etc.08Government of Sweden is testing asystem for registering and recordingland titles that utilizes blockchain ina bid to digitize real estate processes.Lantmäteriet, or the Swedish National LandSurvey, is working on a proof-of-conceptthat investigates how blockchain techcould reduce the risk of manual errorswhile creating more secure processes fortransferring documents.The project comes as governments aroundthe world are showing growing interest inusing blockchain technology to improvethe land registry process. In April, bitcoinmining and technology company BitFuryunveiled a pilot with the National Agency ofPublic Registry in the Republic of Georgia.iGem launches global healthcareblockchainBlockchain technology platform Gem haslaunched Gem Health, an initiative forbuilding an inclusive blockchain ecosystemfor healthcare. Gem Health endeavors toprovide the data infrastructure to supporta globally integrated healthcare continuum,said a statement. This includes acommunity-driven educational componentand plans to build a private Ethereumnetwork for developing enterprisehealthcare applications.Medical data is the lifeblood of healthcare,creating a profile for every patientthat develops in complexity and scopethroughout life. Today, medical history isfragmented and siloed, preventing doctorsand patients from building a completerecord of health. Gem believes thatblockchain networks are a scalable solutionfor shared infrastructure that keeps criticalpatient data in the right hands.In healthcare, these use cases rangefrom claims processing to genomic datamanagement, but at the core of each is theneed for data to be shared seamlessly andsecured infallibly.iiLoyalty Rewards - Loyalty rewardprograms are currently fragmented, costlyand slow. Some of the key problemsinclude: High lag between availing of service andcredit of loyalty points - customers can’tuse or even viewpoints instantly Inherent inefficiencies with the system(and high associated cost) Poor data integrity with significant threatof security and privacy abuse Usage of reward points doesn’t live up tothe potential due to limited redemptionoptionsA blockchain-based loyalty rewardsprograms can address the aboveissues. An omni-channel customerloyalty program based on multi-tokenblockchain can be configured easily (withmultiple reward types and reward rules) tonear-instantly reward points to customersupon purchase / usage of companyproducts / services. Tokens accumulatedcan then be redeemed for a variety ofreward options by adding new vendors onthe blockchain.09

Blockchain – revolutionary change or not?Blockchain applications in energytradingPicture a trade floor five years in thefuture. The robotic trader managing oneof the gas desks is about to execute aphysical natural gas trade with an industrialcustomer. One of the robot’s tradingalgorithms scans available market interestand optimizes its search for the best dealto meet the customer’s volume and tenorrequirements for a given period. Once therobot’s proposed deal terms are approvedby the customer, the trade is executedand recorded on the blockchain. The dealterms are automatically confirmed andnomination information is recorded on theblockchain and available to the pipelineshipping the gas. As gas flows throughoutthe month, physical settlement occurs dailywith payment initiated immediately. Allactivity added to the blockchain is readilyavailable to the seller, buyer, pipeline,and bank. Physical title of the gas is alsoconveyed directly via the blockchain.iii05. Potential challengesto mainstreamadoptionBlockchains are not without their hurdles.While blockchain has immense potentialto the society, it is also recognized thatthis is hard to achieve without substantialregulatory will and collaborative effort fromall parties involved. Total transparency a double-edgedsword - The demand for change inbusiness processes (transactionprocessing) will come either from thegrassroots demanding that certain datago on a blockchain and form a recordwhich cannot be subsequently edited,or from regulators and policymakersmandating such change. Requires a lot of coordination Blockchains can also be used in industryplatforms for the sharing of data that ishelpful to the industry as a whole. In thiscase, a majority of players in an industryneed to come together and agree onwhat such a platform would look like, whowould pay for it, and what value eachparticipant would get from it. Regulatory clarity over datasovereignty - Regulatory clarity of onand off-chain assets is something that isoften discussed, in the context of bitcoinsand the issues of data governance of ashare certificate on a blockchain. Whatis often neglected is regulatory clarityover data sovereignty. In an industryblockchain, the same data is copied overmany data centres, often in differentcountries. A lot of the data are encryptedso that only the intended recipient cansee it.In some industries this is fine, but infinancial services, control of data is heavilyregulated. Are banks comfortable sending,receiving, and storing data without knowingexactly what they are storing in their datacentres? Are regulators comfortable withbanks in their oversight storing unknown,encrypted data? Are banks comfortablewith their competitors storing theirdata, encrypted or otherwise? After all, ablockchain replaces a trusted third partywith a network of participants but in thecase of an industry blockchain, manyparticipants will be competitors.06. ConclusionIn many ways, Blockchain today iscomparable to where the Internet was inearly 1990s. While we have witnessed howthe ‘Internet of Information’ has changedour societies over the past two decades, weare now entering a phase where Blockchainis likely to do the same by ushering ina newparadigmcomprising ‘Internet of Trust’ and‘Internet of Value’. It is expected to disruptthe way stakeholders would interact in adecentralized framework of trust, therebyincreasingly democratizing value. Banksand financial services institutions play avery important role in those wider societalinteractions today and Blockchain istherefore forcing them to rethink their rolesto stay relevant in this emerging paradigm.It's early days, but industry leadersaresponsoring a wide range of blockchain usecases supported by industry consortiums.Having seen the potential of thistechnology and the challenges, we thinkthe opportunity is clear but the blue sky istoo far off and companies need to validateuse cases and business / technical viabilitybefore implementing blockchain.AuthorsRajarshi Senguptarsengupta@deloitte.comLakshman ids-with-blockchain-technologyiii10

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options A blockchain-based loyalty rewards programs can address the above issues. An omni-channel customer loyalty program based on multi-token blockchain can be configured easily (with multiple reward types and reward rules) to near-instantly reward points to customers upon purchase / usage of company products / services. Tokens accumulated