Contents
About this paper
This paper outlines the value-add of Hyperledger as a permissioned blockchain and clarifies the role of distributed ledger technology, smart contracts, tokens, and additional Hyperledger contributions in the capital markets sector. In addition, the paper differentiates Hyperledger’s capital markets support from separate blockchain efforts related to cryptocurrency and informed, in some cases, by speculative media outlets.
Version 1.0 published in ?? 2019
This work is licensed under a Creative Commons Attribution 4.0 International License.
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About Hyperledger
Hyperledger is an open source effort created to advance cross-industry blockchain technologies. It is a global collaboration including leaders in banking, finance, Internet of Things, manufacturing, supply chains, and technology. The Linux Foundation, the nonprofit organization enabling mass innovation through open source, hosts Hyperledger. The Linux Foundation also enables a worldwide developer community to work together and share ideas, infrastructure, and code.
Acknowledgments
The Hyperledger Capital Markets Special Interest Group would like to thank the following people for contributing to this paper: Kelly Cooper, add your name
About the Hyperledger Capital Markets Special Interest Group (SIG)
The purpose of the Hyperledger Capital Markets SIG is to discuss, research, and document ways Hyperledger contributes to the capital markets sector, specifically to the open-source blockchain projects in the Hyperledger greenhouse.
Note that the Hyperledger Capital Markets SIG is open to all, and we encourage you to join our efforts. To learn more about this working group and find out how to participate, visit the Capital Markets wiki page.
Procedure for volunteering:
Ideally, the part that you volunteer for should be doable in an afternoon (about 200 to 300 words) and a subject you know about, or are willing to research from a variety of verified sources. Please list your name in the sections that need volunteers and include a tentative end-date. Include references used to create your material.
Introduction
This document aims to address the opportunities and perceptions of the role of Hyperledger, blockchain ecosystems, and tokens in the capital markets sector. The concept for the paper emanates from conversation in the Capital Markets SIG regarding stakeholder varying interpretations of blockchain, distributed ledgers, smart contracts, and cryptocurrency. The paper intends to offer content that as a whole, or in sections, provides capital markets related definitions, taxonomies, use cases, product examples, and research references to support sector understanding and to promote Hyperledger solutions. The target audience is business stakeholders in and peripheral to the capital markets sector.
Trust
CM sector and stakeholder obstacles or scenarios:
- Sharing of sensitive information such as board portals
- Improved accuracy and efficiencies to the voting and proxy assignment process
- Improved information transparency and shareholder participation
CM sector priority goals:
How Hyperledger contributes (business):
- Blockchain is a decentralized ledger managed by a network of users. Each user is identified by a unique digital signature and all transactions must be approved by a set of consensus rules before the block can be added to the chain; this is one reason why it is seen as so secure and reliable.
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Provenance
CM sector and stakeholder obstacles or scenarios:
- Chain of custody
- Reduce the time from trade to settlement for securities and other asset classes
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Immutability
CM sector and stakeholder obstacles or scenarios:
- Reduce settlement risk exposure and lower capital costs and systemic risk for the broker community
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Identity
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Data Integration
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Interoperability
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
AML and KYC
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
GDPR
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Network Collaboration - Asset and Contract
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Tokens - Secure
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Tokens - Cryptocurrency
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Analytics
CM sector and stakeholder obstacles or scenarios:
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Audits
CM sector and stakeholder obstacles or scenarios:
- Document and reconcile complex and disparate information from multiple sources
- Audit strategies for complex systems, with auditors making decisions about what level of audit is required, how data should be captured, and the type of audit analytics needed.
- Reduce the auditor's role in checking and validating account transactions - moving them further up the value chain
CM sector priority goals:
How Hyperledger contributes (business):
How Hyperledger contributes (technology):
Related resources to address noted obstacles and goals:
Works Cited
Are auditors ready for blockchain? The audit profession is eyeing blockchain. Accounting Today. 2017;(9). http://search.ebscohost.com.ezproxy.umuc.edu/login.aspx?direct=true&db=edsgao&AN=edsgcl.502694087&site=eds-live&scope=site. Accessed August 26, 2019.