Sharad Institute of Technology college of

Engineering, Yadrav-Ichalkaranji
NBA Accredited Programmes
An ‘A’ Grade Institute Accredited by NAAC
Blockchain Technology
Prepared by
Ms. K S Patil
Assistant Professor
Computer Science & Engineering Department
1
[Unit 4] Blockchain Application
Development
Enterprise application of Blockchain:
Cross border payments
 Enterprise application of Blockchain:
Cross border payments
 Cross-border payment is a term referring to transactions involving
individuals, companies, banks or settlement institutions operating in at
least two different countries.
 Payments, remittances, and purchases all often require money exchanged
across borders.
 Cross-border payments defined as funds paid to or taken in from different
countries, so the location where the merchant is registered is different
from the country where the customer's card was issued.
 The Challenges Of Cross-Border Payments
 If Company A in the United States wants to pay Company B in India,
Company A asks its U.S. bank to send a payment overseas.
 Cross border payments
 The U.S. bank partners with a correspondent bank to facilitate the transfer, and a
respondent bank in India receives the funds and then transfers it to Company B’s bank
account.
 Each step of this process requires time and money to complete, creating an overpriced
and frustrating bottleneck.
 The average for sending payments worldwide is 7%, according to the World Bank.
 Blockchain solves these challenges by streamlining the process and storing every
transaction in a secure distributed ledger
 Blockchain technology in cross-border payments can enable secure transfers between
an infinite number of bank ledgers. This allows one to bypass banking intermediaries
who serve as middlemen to help transfer money from one bank to another.
 The Benefits Of Blockchain Payments
 Cost-Effective Almost Immediate
 Transparent Secure
 Know Your Customer (KYC)
 In research, a 2017 survey by Thomson Reuters found that the average
time it takes to complete KYC checks is 32 days, up from 28 days in 2016.
It also showed that 85% of customers had a bad experience due to it, and
12% changed banks as a result.
 Blockchain KYC solutions take advantage of a secure, public digital ledger
to give almost instantaneous and truly secure verification of identity.
 Due to the immutable and unchangeable nature of the record kept in the
blockchain, fraud could become a thing of the past.
 Know Your Customer (KYC)
 There is no global standard, so KYC practices vary by institution.
 This leads to redundant work and limits the ability for different financial
institutions to collaborate to verify identity.
 Customers are subject to time-consuming and difficult-to-accomplish on
boarding processes when opening new accounts.
 Blockchain-based KYC has many inherent advantages.
 Many companies are working on a ‘digital signature’ that would keep a
secure copy of all your KYC-compliant documents stored on a
blockchain.
 Particularly if this is a public blockchain, it would be decentralized and
both transparent and secure.
Know Your Customer (KYC)
Mortgage Process
Example of Mortgage Process
MORE on KYC & Mortgage Process
 Mortgage over Blockchain
 The potential of distributed ledger technology (DLT) —
blockchain — to streamline and provide better security
for mortgage lending is profound. Ultimately, the wide adoption
of DLT by lenders could lower costs substantially while
providing secure transaction records and computer-age
settlement times.
Overview of international Trade
Blockchain enabled Trade
Trade finance: Advantage using Blockchain
We Trade –Trade Finance Network
Supply Chain Financing
 Supply Chain Financing
 Supply chain finance (SCF) is a term describing a set of technology-based
solutions that aim to lower financing costs and improve business efficiency
for buyers and sellers linked in a sales transaction.
 SCF methodologies work by automating transactions and tracking invoice
approval and settlement processes, from initiation to completion.
 Under this paradigm, buyers agree to approve their suppliers' invoices for
financing by a bank or other outside financier--often referred to as
"factors." And by providing short-term credit that optimizes working
capital and provides liquidity to both parties, SCF offers distinct
advantages to all participants.
 Supply Chain Financing
 Supply chain finance is a set of tech-based business and financing processes
that lower costs and improve efficiency for the parties involved in a
transaction.
 Supply chain finance works best when the buyer has a better credit rating
than the seller and can thus access capital at a lower cost.
 Supply chain finance provides short-term credit that optimizes working
capital for both the buyers and the sellers.
 Important---Supply chain finance has been primarily driven by the
increasing globalization and complexity of the supply chain, especially in
the automotive and manufacturing industries.
Food Safety