Blockchain For Corporate Compliance Lesson Slides v2

Blockchain for: Corporate Compliance
Attendance taking
1. Read out your name
2. Read out last 4 characters of
your NRIC
3. Wait for me to acknowledge
4. Thank you!!!
Blockchain for:
Corporate Compliance
Topic: VLC-IBFIT06-20-0656
Time: May 23, 2020 09:00 AM
Venue: VLC
Singapore
About NTUC Learning Hub
Vision Transforming the life-long

employability of working people.
Mission To be the leader in Continuing

Education and Training by
providing learning that
transforms employability and
creating a better life for working
people of all collars, ages and
nationalities.
Trainer Introduction
Ian Lee
● Ex-Lawyer from Capital Markets
● 3+ year in crypto industry
● Founding Team of Merkle Science (Crypto AML)
○ Lead Investigator
● Founding Member of the Compliance Association &
Network of Singapore
● Self-taught coder, likes to read, travel, ski, dive &
huge fan of online courses!!!
Contact:
E-mail: ianleeyuanjie@gmail.com
Hp/Whatsapp: +65 9003 2111
PROTOCOL FOR
VIDEO CONFERENCE
1 PLEASE SHOW YOURSELF
2 LEARNERS ARE NOT TO RECORD THE TRAINING
3 NO DOWNLOADING OF MATERIALS
4 USE YOUR EARPIECE
5 MUTE YOUR MIC UNLESS YOU ARE SPEAKING
ENSURE NO BRIGHT LIGHTS ARE DIRECTLY BEHIND

6 YOU
BENEFITS OF VIRTUAL LESSON
• BE AS COMFORTABLE AS YOU
CAN BE!!!
BENEFITS OF VIRTUAL LESSON
• EATING THROUGHOUT IS PERMITTED

ZOOM USAGE!
chat function
raising hands
voting yes or no
Agenda for today Virtual Class
0915 - 0915 - Phototaking!!!
0915 - 1000 - Introduction to Blockchain
1000 - 1005 - Break
1005 - 1105 - Digital Tokens & Smart Contracts
1105 - 1110 - Break
1110 - 1230 - Blockchain & Corporate Compliance Use Case
1230 - 1230 - Phototaking!!!
1230 - 1330 - Lunch
1330 - 1335 - Attendance & Phototaking!!!
1335 - 1505 - Assessing Business Blockchain Use Cases
1505 - 1515 - Break
1515 - 1615 - Ideating Blockchain Use Cases
1615 - 1630 - Q&A
1630 - 1630 - Phototaking!!!
1630 - 1745 - Assessment Briefing & Assessment
1745 - 1800 - Evaluation + Spot Check
1800 - END OF TRAINING
PHOTOTAKING SESSION!!!
House Rules
• Punctuality - Please arrive on time for each workshop session. Arriving late is a sign of disrespect to
the trainer and your fellow participants.
• Respect others - Respect each other, yourself and the trainer. Do not speak when someone else is
speaking. Listen actively. Trainer will facilitate the discussions with your assistance.
• Participation - You are your own best resource. The workshop can only be successful if it is a two-
way process and everyone participates fully.
• Agree to disagree - During the workshop everyone must feel free to expresss opinions and
concerns. Please see frank discussions as healthy exchanges rather than personal attacks. Everyone
should contribute to a safe/non-judgemental environment
• Ask Questions! - There are no stupid questions. If you do have a question you don’t want to ask in
front of others, ask it privately during a break. Please do not think any question you have is
unimportant
• Give your feedback - At the end of each day you will be asked to give your feedback on making this
training better next time. Please be honest! Constructive criticism is appreciated and is the only way
we can improve
Assessment TIPS!
● 25 MCQ
● Questions may be tricky so read

carefully
● Feel free to take notes throughout
● Hints will be dropped so pay attention...

The TRUE OR FALSE questions throughout the workshop are
IMPORTANT HINTS
The TRUE OR FALSE questions throughout the workshop are
IMPORTANT HINTS
This is because they are VALUABLE

hints…
CHECK OUT THIS DISTRIBUTED LEDGER
TECHNOLOGY!
https://docs.google.com/spreadsheets/d/190ApfsZcs_Zk2F
a9xz5PgraSGkAeAEJSOjSbQAc8htg/edit?usp=sharing
Blockchains are like social networks!
• Introduce yourself (your

industry, role, and a hobby)
WHY ARE YOU
ATTENDING THIS
COURSE
WHAT ARE YOUR GOALS
FOR THIS COURSE
Why should you care?
Industry Ecosystem: Opportunities abound
ACTIVITY ONE
Common Misconceptions
Misconception 1:
Blockchain = Bitcoin = Cryptocurrency?

They are not interchangeable terms!
Bitcoin: a form of cryptocurrency
Cryptocurrencies: forms of digital assets as

mediums of exchange
Blockchain technology: a form of distributed

ledger, a technology that enables secure,
peer-to-peer (P2P) transactions
Misconception 2:
Distributed ledger technology = Blockchain?

Distributed Ledger Technology (DLT)
- Consensus of replicated, shared, and
synchronized digital data geographically
spread across multiple sites, countries, or
institutions
- No central administrator or centralized
data storage
Blockchain
- A type of distributed ledger
- Time-stamped series of immutable record
of data that is managed by cluster of
computers not owned by any single entity
Misconception 3:
Blockchain technology is only good

for payments?
Blockchain technology is only good
for payments?
- Transactions = exchange of something for something: not
merely in the form of money. Ledgers can store any type of
data
What is Blockchain Technology?
ACTIVITY TWO
The Importance of Ledgers
Ledgers are THE system of record for a business.

Businesses will have multiple ledgers for multiple business
networks in which they participate.
Transaction – the transfer of an asset

John gives a car to Anthony (simple)
Contract – specifies conditions for transaction to occur

▪ If Anthony pays John money, then car passes from
John to Anthony (simple)
▪ If car won't start, funds do not pass to John (as decided
by third party arbitrator) (more complex)
Today’s processes can be inefficient, expensive,
vulnerable Party A’s records
Party D’s records Bank records
Party C’s records Auditor records

Party B’s records
A mechanism for “digital trust” is required
Party A’s records
Party D’s records Bank records
Shared, replicated, permissioned
Party C’s records Auditor records

Party B’s records
Distributed, Traceable, Immutable
Distributed Ledger Technologies (DLT)
“Distributed” – Hosted, and accessed by all users, and not on a single server
“Ledger” – a book of accounts, and transactions between them – any type of data can be stored
Distributed Ledger Technologies (DLT) vs. Centralized Ledgers
Blockchain: New way of doing old things
Yap Island (500 AD), a small island in South Pacific.
The Yapese people had a very unique form of currency: Rai Stones - huge and heavy
limestone discs.
Blockchain: New way of doing old things
Problems with “Rai stones”

- Boulder-sized currency is incredibly hard to
move around, let alone transact with
- To solve this, the Yapese people developed

what could be the first recorded example of a
decentralized ledger
Each villager as a node

- Every villager kept a mental record of who
owned each stone, who they got it from, and
when that transaction took place
- When a Fei stone was spent, that new

transaction was shared across the village
people to update everyone’s mental map
Scalability is a big issue for the Yap Distributed Ledger?
Scalability is a big issue for the Yap Distributed Ledger?
This is because there is a limit to how much

information the brain can remember!
Blocks & Chains - A type of distributed ledger technology (DLT)
Blockchain uses CRYPTOGRAPHY!
- the art of writing or solving codes (oxford dictionary)

- HASHING
- Hashing is generating a value or values from a string of text
using a mathematical function.
- SAME INPUT using same hashing algorithm will produce SAME
OUTPUT
- even the TINIEST change will result is a TOTALLY different output
- TRY IT! - https://www.tools4noobs.com/online_tools/hash/
hash of previous block hash of previous block hash of previous block
- once information is stored in a block, the hash is generated and

put into the next block
- therefore changing ANY information is previous blocks will BREAK
the chain
- blocks are difficult to produce (depending on protocol - outside
scope)
Blockchain uses cryptography to resolve the security challenges
present in other ledger technologies
Blockchain uses cryptography to resolve the security challenges
present in other ledger technologies
Blockchain uses cryptography to validate changes and ensures

that a tamperproof record is created
Blockchain: Types of Blockchain
Public v Private Blockchain
Permission v Permissionless
Blockchain
BREAK TIME
3 MINUTE BREAK
Key Characteristics of
Blockchain Technology
Key characteristics of blockchain technology (public)
1. Traceable: All transaction histories can be traced on blockchain’s digital ledger
1. Decentralised: No central authority controls the network
1. Distributed: Each and every node plays a part in maintaining the network
1. Immutable: Once transmitted to the blockchain, no parts of the transaction can be

changed
Decentralized & Distributed use case – Shared routing codes
What How Benefits

▪ Competitors/collaborators in a ▪ Each participant maintains their 1. Consolidated, consistent dataset
business network need to share own codes within a reduces errors
reference data, e.g. bank routing Blockchain network
codes 2. Near-real-time of
▪ Blockchain creates single view of reference data
▪ Each member maintains their entire dataset
3. Naturally supports code editing
own codes,
and forwards changes to a and routing code transfers
central authority for collection between participants
and distribution
▪ An information subset can be
owned by organizations
Traceable use case – Provenance of Food
What How Benefits

▪ Provenance of each ingredient in ▪ Blockchain holds complete 1. Trust increased, no authority
complex provenance details "owns” provenance
system hard to track of each ingredient
2. Improvement in
▪ Source (farm, country), ▪ Accessible by each system utilization
production date, batch and distributor/processor/retailer in
distributor the production process right up 3. More efficient tracking
to the end consumer
Traceable use case – Anti-Money Laundering
What How Benefits

▪ Replacing fiat with ▪ Cryptocurrency balances and 1. Reduce Cost
blockchain based currency transactions are recorded on 2. Improved AML/CFT controls
the blockchain which are
▪ eg. bitcoin, stablecoins,
publicly viewed 3. Improves
project Ubin efficiency/transparency
1. Goldma n predicts the blockcha in tech could lea d to globa l s a vings of between $3 billion
a nd $5 billion a yea r in a nti-money la undering complia nce by boos ting tra ns pa rency a nd
efficiency, with better da ta qua lity cutting the number of fa ls ely identified 's us picious '
tra ns a ctions .
https://www.finextra.com/newsarticle/28955/blockchain-tech-could-save-cash-equities-market-6bn-a-year---goldman-sachs
Traceable use case – Anti-Money Laundering
Example of a bitcoin address:

1EfMVkxQQuZfBdocpJu6RUsCJvenQWbQyE
An eWallet/Blockchain wallet is needed to transact
cryptocurrencies
An eWallet/Blockchain wallet is needed to transact
cryptocurrencies
Transactions involving cryptocurrencies are

executed digitally as they are a form of
digital asset
Immutable use case – Financial ledger
What How Benefits

▪ Financial data in a large ▪ Blockchain collects transaction 1. Lowers cost of audit and
organization dispersed records from diverse regulatory compliance
throughout many divisions and set of financial systems
geographies 2. Provides “seek and find” access
▪ Append-only and tamperproof to auditors and regulators
▪ Audit and Compliance needs qualities create high confidence
3. Changes nature of
indelible record of all financial audit trail
key transactions over reporting compliance from
period ▪ Privacy features to ensure passive to active
authorized user access
With blockchain, there is no longer a need for off-chain record
keeping?
With blockchain, there is no longer a need for off-chain record
keeping?
BLOCKCHAIN IS NOT A CURE FOR EVERYTHING!

BLOCKCHAINS ARE NOT INFALLIBLE!
LAWS MAY REQUIRE PHYSICAL RECORD KEEPING
BUT CAN IMPROVE STORAGE AND RETRIEVAL OF RECORDS
Digital Tokens & Smart Contracts
Cryptocurrency: a blockchain technology application
• Cryptocurrencies (e.g. bitcoin) are just one use of blockchain technology. They are no
more related to blockchain than eBay, or Facebook is to Internet technology. The
crash of an app =/= the death of the internet.
• However, Satoshi Nakamoto’s creation of the cryptocurrency Bitcoin was the most
prominent use of blockchain that shot it from obscurity to popularity.
• Cryptocurrencies and smart contracts have created the possibility of new forms of
incentives that drive collaboration and in open co-creation environments (think
open-source software with built-in rewards)
The History of Money – From Barter to Bitcoin
Digital currency to cryptocurrencies
- Shift from physical money to digital
money
- Cryptocurrencies p2p distributed
network marks next frontier
Fiat Money
- Legal tender without intrinsic value
that has been established as money
by government regulation
Commodity Money
- objects that have value in themselves
as well as value in their use as money
- E.g. Cowrie shells, gold
Barter Trading
- people transfer value through direct exchange of goods and
services with each other
- E.g. Trade your cow for my chicken
Types of Cryptocurrencies
Payment Utility Security (Asset-backed)

- Blockchain-based “shares” of
financial securities, regulated
- Asset associated with - Digital asset mapped to actual
- Functions as
specific application physical assets
currency; medium of
scenario - Cryptocurrency may be
exchange
classified as a security as long
as fits certain criteria
Cautionary Note:
Even more so than with accounting standards, or building codes - legal definitions differ widely
based on specific jurisdictions (important to check with local laws especially if your intended
application is transnational)
Smart Contracts:
A smart contract is: a conditional computer

program executed in a secure environment that
has direct control of digital assets
Smart Contracts:
A smart contract is: a conditional computer program executed in a secure

environment that has direct control of digital assets (data)
“A computer program is a collection of sequential
instructions that performs a specific task when
the pre-defined conditions are met.”
Smart Contracts:

A conditional set of instructions: e.g. a bet on an event
if HAS_EVENT_X_HAPPENED() is true:
send(party_A, 1000)
else:
send(party_B, 1000)
Smart Contracts:

1. Correctness of execution
1. Integrity of code and data
1. Optional properties
• Confidentiality of code and data
• Verifiability of execution
• Availability for the programs running inside
Smart Contracts:

Example:
Legal contract: “I promise to send you 100 SGD if my lecture is rated 10/10*”
Smart contract: “I send 100 BTC into a smart contract executed on the Bitcoin network,
which sends 100 BTC to you if the rating of my lecture is 10/10*, otherwise it
eventually sends 100 BTC back to me”
Smart Contracts:

A very broad category:
• Domain name
• Website
• Money
• Anything tokenisable (e.g. gold, silver, stock share etc)
• Game items
• Network bandwidth, computation cycles
Example: top 5 crowdfunding campaigns in history
71
Star Citizen sold virtual spaceships in their game for $500 each
72
Ethereum Foundation sold 60,102,206 digital tokens which will be useful
in a decentralized network
73
Smart Contracts: ANALOGY
Smart Contracts: Use Cases
Smart Contracts: Use Cases
Smart Contracts: Advantages
Smart Contracts: Code versus Law?
Legal contracts Smart contracts

Good at subjective (ie. requiring Good at objective (ie. mathematically
human judgement) claims evaluable) claims
High cost Low cost
May require long legal process Fast and automated
Relies on penalties Relies on collateral/security deposits
Jurisdiction-bound Potentially globally compliant (IFRP
& GAAP)
Legally binding NOT LEGALLY BINDING

With Smart Contracts, there is no longer a need for lawyers!
With Smart Contracts, there is no longer a need for lawyers!
SMART CONTRACTS MAY BE USEFUL, BUT THEY ARE UNABLE

TO TAKE INTO ACCOUNT THE SUBJECTIVE NATURE OF CERTAIN
LEGAL CLAIMS/TERMS
SMART CONTRACTS ARE NOT LEGALLY BINDING
SMART CONTRACTS CANNOT GIVE ADVICE
Smart Contracts: Overcoming its limitation
It is possible to COMBINE smart contracts with a human element
- Use of an VALIDATOR
- Having the community vote
- Proper incentivisation
Advantages of blockchain technology
Efficiency Transparency Trust Security
- Blockchain directly - - All transactions can - Removes any risks - Immutable nature
processes P2P be traced on associated with of transaction
transactions; removing blockchain centralized data means agreements
intermediaries cannot be tampered
- Enables quick - No single entity has with
- Smart contracts detection of potential control
automatically helps to points of dispute - Decentralized and
trigger action - Trust in a trustless distributed system
- - Improve traceability system; code is law means there is no
- Potential to improve and in business processes single point of
streamline business failure where data
processes can be hacked
BREAK TIME
3 MINUTE BREAK
Blockchain & Corporate
Compliance
Use Cases
Blockchain & Compliance: 5 Use Cases
1. Immutable Records for Regulators

2. Workflow Platform
3. Real-Time Regulatory Oversight
4. Improved Client Onboarding Systems
5. Chain of Custody
1. Immutable Records for Regulators
When combined with other technologies such as

Robotic Process Automation (RPA), financial
reporting, among other forms of compliance audits by
regulators becomes easier. While blockchain
technology cannot prevent “creative accounting”,
the immutability of blockchain ledgers make fraud
detection much easier.
2. Workflow Platform/Business Process Management
Utilising smart contracts, blockchain technology can dramatically

increased the efficiency in business processes. Automating your
processes has a number of benefits which include increasing
output efficiency, increasing visibility, standardizing outputs,
reducing errors, and reducing costs.
3. Real-Time Regulatory Oversight
The cost of oversight is immense due to record keeping

requirements by regulatory systems that lack the ability for
immediacy. But the potential cost of not keeping thorough
records is greater than the cost of maintaining and storing
compliance-mandated records.
Utilizing blockchain’s decentralized ledger can allow red flags

to be spotted sooner, and reduces the expense of
maintaining large stores of both paper and digital
records.
4. Improved Client Onboarding Systems
The client onboarding process, especially for heavily-regulated

financial institutions is costly and time-consuming. Between 2010
and 2016, more than 12 major banks doing business globally were
hit with combined penalties totaling more than $15 billion due to
violation of AML and KYC requirements, according to KPMG.
With a blockchain ledger of verified client data in existence,

secured and shared among different institutions, the time it currently
takes to collect and authenticate data would be reduced
significantly. Changes to a client’s status could be updated to the
entire network of institutions with near immediacy.
5. Chain of Custody
Establishing ownership of assets, both digital and physical, is an

aspect of compliance that permeates numerous industries. In supply
chains, the blockchain can also help establish that inputs are being
acquired from verified suppliers. Asset-tagging and asset
management is also a way in which blockchains could improve
internal compliance and bookkeeping.
The blockchain has also proven itself as a means to document the

exchange of ownership; this is the basis for transactions involving
the transfer of cryptocurrency from one individual to another. This
could also be the case with physical and digital assets — from
land titles to machinery and intellectual property.
ACTIVITY THREE
Activity:
• Think about the parts of your job that could benefit from the use of blockchain
technology
• Take 3-5 minutes to list the data, transaction types, and people involved.
• Be prepared to share this with the class.
LUNCH TIME
60 MINUTE
BREAK
PROTOCOL FOR
VIDEO CONFERENCE
1 PLEASE SHOW YOURSELF
2 LEARNERS ARE NOT TO RECORD THE TRAINING
3 NO DOWNLOADING OF MATERIALS
4 USE YOUR EARPIECE
5 MUTE YOUR MIC UNLESS YOU ARE SPEAKING
ENSURE NO BRIGHT LIGHTS ARE DIRECTLY BEHIND

6 YOU
ATTENDANCE
TAKING AGAIN!
+
PHOTOTAKING :D
ACTIVITY FOUR
ACTIVITY FOUR
ACTIVITY FOUR
Spend 3 minutes
playing with this
DISCUSSION
Assessing Business Blockchain
Use Cases
What you need to know about
Blockchain for Businesses
01 Business blockchains 05 Public Blockchains and Commercial

Cryptocurrencies
02 Assessing blockchain opportunities 06 How people think about

blockchain today
03 Case studies 07 Hurdles to adoption
04 How to get a blockchain up and running 08 Business blockchain checklist
10
1
Business blockchains
01
Business blockchains are being used today to help reinvent how

02
transactions are managed. They can take time and costs out of almost
any process, enabling near real-time operations. And they deliver a high 03
degree of accuracy and control, with much less risk than many
04
alternatives.
05
Blockchains perform recordkeeping using automated, low-cost
mechanisms. They enable asset transfer through secure, real-time 06
methods. And they provide governance in the form of smart

07
contracts. A smart contract makes sure each part of a transaction is
validated the instant it happens, triggering the next required action, 08
exactly when it is supposed to occur, until the process is complete.
10
2
Frequently asked questions
01
02
Common Questions Executives Ask:
03
Do I really need to be I don’t have to scrap What finance processes

04
thinking about this now? anything? can blockchains
improve?
Over the next five years, blockchain With business blockchain, legacy 05
technology could upend how technologies and systems remain in Blockchains can be used to improve
businesses and marketplaces place. almost any finance process:
operate. Sooner or later, you should
06
come to grips with that. A blockchain simply shares data you - procure-to-pay,
select with specified parties so they can 07
If you’re trailing competitors in see the same information you’re seeing - accounts receivable, accounts payable,
terms of cost, or want to leapfrog to at the same time. general ledger,
new performance levels, blockchain 08
could be an effective strategy. - reconciliation, and even payroll.
10
3
Frequently asked questions
01
02
What are auditors How secure are blockchains? How are blockchains
and regulators governed and controlled?
going to say? This technology uses data elements 03
encrypted in blocks of computer code. The Smart contracts provide the governance
In the short term, they’ll be skeptical. blocks are chained together across a shared mechanism for business blockchains.
04
Blockchain is new, and companies are ledger through cryptology. If someone tries
still working through operational and to hack the ledger, it is immediately known Once a smart contract is locked down,
compliance issues. by the involved parties and the chain falls the terms and conditions can’t be 05
apart. changed unless all those affected agree.
But because blockchains rely on self-
However, like all technologies, blockchains 06
executing smart contracts and the
transactions are irreversible, many are not without their security shortcomings.
auditors and regulators see the 07
technology as a way Subject to human error! Humans are often
to save time and improve compliance. point of failures…
08
10
4
Assessing blockchain opportunities
01
Blockchains may bring about many

02
benefits and cost savings but are not
always be appropriate.
03
Whether blockchain makes sense for

04
your particular situation depends on a
number of “fitness factors” you’ll want
05
to consider.
06
1. Number of participants
2. Complexity of business purposes 07
3. Need for long term recordkeeping &
regulatory compliance 08
4. Need for real time transfer of assets
or payments
10
5
Fitness factor 01
Number of participants involved
02
Limited or no fit Strong fit
Blockchain doesn’t make sense when there is no When multiple separate companies need to write Blockchain is an excellent solution when
need for multiple parties to share in creating or or add to the ledger, blockchain can be an participants include multiple 03
maintaining a transaction record. For multiple effective way to streamline transaction manufacturers, suppliers, customers,
trading parties inside of a single parent processing. By using blockchain service providers, transportation providers,
company, blockchain could be an effective you create one source of the truth. regulators, and possibly tax authorities. 04
solution for processing intercompany
transactions. Intercompany is also a good way to
pilot a blockchain solution.
05
Fitness factor 06
Complexity of business purpose
Limited or no fit Strong fit 07

When the business purpose is narrowly focused When a group of companies shares a targeted Groups of companies facing a broad set of
on a single process or transaction, blockchain purpose within a sector (e.g., food safety, health complex purposes can benefit greatly from 08
may not be practical—unless one of the other care claims adjudication, or mortgage standing up blockchains across their trading
fitness factors is compelling. underwriting compliance), blockchain has good ecosystems. Blockchains enable the
potential. management of things like asset purchases,
financing, warranties, insurance, regulatory
compliance, and public safety—in an
integrated manner and all at the same time. 10
6
Fitness factor 01
Need for long-term recordkeeping and regulatory compliance
02
Blockchain may be overkill when there is little In some transactions, high-quality records add Blockchain is an excellent solution when
03
or no need for long-term records. value at the time of the transaction, and for a many parties need to access, create, and
limited time after. Blockchain delivers immediate maintain records over an extended
benefit for real-time recordkeeping. timeframe (e.g., decades-long asset lifecycle
or the entire lifetime of a patient). Also, for 04
many regulatory considerations, blockchain
is a reliable way to document and manage
compliance. 05
Fitness factor 06
The need for real-time transfer of assets or payments

07
If you don’t need—or are already getting—near For companies that want to improve working Blockchain can eliminate the lag in payment
real-time payment transfer and instant recording capital or liquidity, the lower friction of blockchain cycles and asset transfer, which can help 08
of transactions, blockchain may not provide any enables near real-time transfer of assets. reduce cost, improve accuracy, and provide
new or additional benefit. compliance efficiency. Additionally, the
transparency of blockchain can help
streamline trade finance or supply chain
financing in a multi-party network setting.
10
7
CASE STUDY! 01
02
Questions to think about 03
04
- Why did they decide to use blockchain 05

- What kind of blockchain did they use? WHY!
- What did they use blockchain for? 06
- Who were some of the participants? 07
- What benefits did they obtain? 08

Blockchain for Supply Chain
01
02
03
04
05
06
07
08
https://www.youtube.com/watch?v=tdhpYQCWnCw
01
03
- Why did they decide to use blockchain? 04

08
Blockchain for KYC
01
02
03
04
05
06
07
08
https://www.youtube.com/watch?v=RzpyFdyZU6Q
01
03
- Why did they decide to use blockchain? 04

08
Record-keeping on the blockchain can help eliminate the need
for redundancies
Record-keeping on the blockchain can help eliminate the need
for redundancies
This is because the blockchain provides a single source of

truth that can be accessible by the relevant parties
Make it real
How to get a blockchain up and running 01
Think big, but start small. Prove value with iterative bursts of design, build, and review to quickly learn from results—and adjust.
02
03
04
05
06
07
08
11
5
Public blockchains and 01
commercial cryptocurrencies 02
03
For many people, blockchain is colored by skepticism about cryptocurrencies like Bitcoin,
Ether, and Ripple. In those arenas, it seems as though the risks can often outweigh the 04
benefits. But that doesn’t mean there aren’t opportunities for pioneers to capture value.
05
Business or enterprise blockchains operate outside the realm of commercial
cryptocurrencies. Companies can gain substantial value simply by using blockchain as 06
a transaction management platform without any consideration of digital money.
07
Project Ubin is a collaborative project with the industry to explore the use of
Blockchain and Distributed Ledger Technology (DLT) for clearing and settlement of 08
payments and securities.
11
6
Public blockchains and 01
commercial cryptocurrencies 02
03
04
05
06
07
08
11
7
How people think about blockchain
today 01
02
FULL SPEED! Some executives expect WAIT AND SEE! A third group of executives is
blockchain to transform their finance taking a wait-and-see approach to blockchain.
organizations—and maybe their whole Some may not have the transaction volumes or 03
businesses—in the years ahead. They see cost structures that would justify investing in
significant efficiency and control benefits on the blockchain solutions. Others already have
04
horizon, and they’re evaluating options now so excellent systems in place to get that work
they can capture savings sooner. These done. They expect the demand for blockchain to
executives place a premium on their role as come from other parts of the business and will 05
catalysts for business transformation in their support it as appropriate.
companies.
06
FIRST TIME BUYER! A larger number of
executives are just now beginning to look at 07
blockchain but aren’t yet ready for finance to
take the lead. They see blockchain as a
potentially valuable tool and will have a seat at 08
the table in blockchain discussions. Their priority
is to ensure that security, controls, and
regulatory requirements are baked in from the
outset. 11
8
Hurdles to adoption! 01
02
● Lack of understanding of the technology
○ Too many people do not understand the technology 03
○ Too many projects out there are using blockchain where

04
it is not necessary
● Misconception that blockchain = cryptocurrency = used by 05
criminals
06
○ crypto market is linked to blockchain - FALSE
● Lack of clear regulation - regulatory uncertainty 07
● Requires all participants to participate
08
● Unproven in many areas
119
Business blockchain checklist
01
02
Make sure your Chief Risk Officer is tracking
Develop a reading list that includes both regulatory and compliance issues related to
skeptics and evangelists. Blockchain is
moving fast. Keep up. blockchain. 03
Assign a team to stay on top of blockchain Identify a handful of opportunities where the
developments in Finance. Include both efficiency gains of blockchain are obvious. 04
technical and business people. Assess the business case for each.
If you’re going to start, start small. 05

Monitor what leaders are doing in your
industry. Blockchain has the benefit of scalability.
Use it to your advantage.
06
Meet with a few of your major trading
partners to find out how they’re thinking
about blockchain opportunities. 07
08
120
ACTIVITY FIVE
BREAK TIME
10 MINUTE
BREAK
Ideating Blockchain
Use Cases
From Theory to Application:
1. On your own, think about potential use cases for

blockchain technologies for compliance in your company
or industry.
1. Form small groups. Present your individual ideas, and

find a common idea to work on together. Recombine,
modify, subtract to come up with something together.
1. Create a Business Plan to convince senior management,

or potential stakeholders involved in the adoption of
your blockchain solution.
Group Activity Link
https://docs.google.com/presentation/d/1Vi66dbRkD1X5px
p8EiEmEXAdBRZ-U89QGB9UWJg4xRI/edit?usp=sharing
Presentations of Blockchain
Use Cases
Important Takeaways:
● Blockchains key features are decentralisation, distributed, transparency, immutability,
traceability
● Private blockchains only allow CERTAIN participants to write to it
● Smart contracts are simply forms of code executable on the blockchain
● Smart contracts CANNOT perform subjective evaluation (but we can overcome this by
combining it with external sources)
● Smart contracts ARE NOT legally binding!
● Blockchain can be applied in many industries including finance, healthcare, supply chain etc…
basically any industry that can benefit from an improved LEDGER
● Examples of blockchain compliance applications include record keeping, asset tracking, KYC,
AML, chain of custody etc
● BLOCKCHAIN IS NOT A SOLUTION FOR EVERYTHING
Q&A
ASSESSMENT
TIME…
BUT FIRST….
Assessment Instructions
1. Assessment is done by Mettl (external)
a. Please look to your email for the link
b. https://tests.mettl.com/authenticateKey/1t1g27spog
2. Please use CHROME browser for the test
3. You will be required to leave zoom to access the test
a. This is because mettl requires access to your webcam during the test
4. When you enter, please WAIT as I will have to approve you to enter
a. approval process takes time as I have to manually verify you 1 by 1
b. may take up to 3 minutes
5. If you encounter any issues, please return to zoom and I will be here to assist
best I can
6. TAKE YOUR TIME
7. When you finish your exam, COME BACK TO ZOOM!!!
a. Post exam activity
During Assessment
1. Please make sure to look into the webcam
throughout the test
2. You are not allowed to look at your phone or look

elsewhere during the test
3. The webcam will detect if you do so

ASSESSMENT
TIME
CLASS
EVALUATION
https://trainer.ntuclearning
hub.com/evaluation/159741
Please be kind :D
Before we go…
Assessment Record
1. You will receive an assessment record shortly after the class via email
2. Please sign on the PDF file to acknowledge it and send it back ASAP
(within 3 days)
3. This is MANDATORY to mark your successful completion of the class
4. NTUC will issue you a certificate afterwards as well as follow up on
funding (where relevant)
To fill up and sign pdf, can use this software

https://www.sejda.com/pdf-editor
GO TO
https://www.sejda.com/pdf-editor
Thank you everyone!!!
Hope you enjoyed the class
Have a great evening :D

Blockchain For Corporate Compliance Lesson Slides v2

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Blockchain For Corporate Compliance Lesson Slides v2

Uploaded by

Copyright:

Available Formats

Blockchain for: Corporate Compliance

Vision Transforming the life-long

Mission To be the leader in Continuing

2 LEARNERS ARE NOT TO RECORD THE TRAINING

4 USE YOUR EARPIECE

5 MUTE YOUR MIC UNLESS YOU ARE SPEAKING

ENSURE NO BRIGHT LIGHTS ARE DIRECTLY BEHIND

• EATING THROUGHOUT IS PERMITTED

● Questions may be tricky so read

● Feel free to take notes throughout

● Hints will be dropped so pay attention...

This is because they are VALUABLE

• Introduce yourself (your

Blockchain = Bitcoin = Cryptocurrency?

Cryptocurrencies: forms of digital assets as

Blockchain technology: a form of distributed

Distributed ledger technology = Blockchain?

Blockchain technology is only good

Ledgers are THE system of record for a business.

Transaction – the transfer of an asset

Contract – specifies conditions for transaction to occur

Party C’s records Auditor records

Shared, replicated, permissioned

Party C’s records Auditor records

Problems with “Rai stones”

- To solve this, the Yapese people developed

Each villager as a node

- When a Fei stone was spent, that new

This is because there is a limit to how much

Blockchain uses CRYPTOGRAPHY!

- the art of writing or solving codes (oxford dictionary)

hash of previous block hash of previous block hash of previous block

- once information is stored in a block, the hash is generated and

Blockchain uses cryptography to validate changes and ensures

Public v Private Blockchain

1. Decentralised: No central authority controls the network

1. Immutable: Once transmitted to the blockchain, no parts of the transaction can be

What How Benefits

What How Benefits

What How Benefits

Example of a bitcoin address:

Transactions involving cryptocurrencies are

What How Benefits

BLOCKCHAIN IS NOT A CURE FOR EVERYTHING!

Payment Utility Security (Asset-backed)

A smart contract is: a conditional computer

A smart contract is: a conditional computer program executed in a secure

A smart contract is: a conditional computer program executed in a secure

A conditional set of instructions: e.g. a bet on an event

A smart contract is: a conditional computer program executed in a secure

1. Integrity of code and data

A smart contract is: a conditional computer program executed in a secure

A smart contract is: a conditional computer program executed in a secure

A very broad category:

Legal contracts Smart contracts

Legally binding NOT LEGALLY BINDING

SMART CONTRACTS MAY BE USEFUL, BUT THEY ARE UNABLE

It is possible to COMBINE smart contracts with a human element

- Having the community vote

Efficiency Transparency Trust Security

1. Immutable Records for Regulators

1. Immutable Records for Regulators

When combined with other technologies such as