Blockchain-Based Financial Networks: A Case Study on Real-World Results

• Application Infrastructure & Middleware - Blockchain
• Functional Applications - Enterprise Resource Planning Systems (ERP)

• Finance & Insurance
• Retail

• Procurement
• Quality Assurance

• Leasing Finance Automation
• Smart Contracts

The financial services industry is constantly seeking ways to enhance digital ecosystems and leverage new technologies for a competitive edge. Blockchain technology has shown promise, but the path from discovery to implementation is often unclear. The challenge lies in finding practical uses for the technology and the right go-to-market approach. A significant proof-point of blockchain’s viability for trade finance is komgo, a blockchain-based commodity trade and finance network. However, the challenge for blockchain networks is the protection of private information on the ledger. As networks scale, they need mechanisms that allow for larger sets of blockchain validators. Business consortia also need the ability to govern the digital smart contracts where the business logic is executed.

The customers in this case study are financial services leaders who are seeking to leverage blockchain technology for a competitive edge. These include komgo, a blockchain-based commodity trade and finance network comprised of the world’s largest banks, oil majors, traders, and certification companies, and Project i2i, a blockchain-based payment network spearheaded by UnionBank and others to connect rural community banks in the Philippines. These customers are looking for practical uses of blockchain technology and the right go-to-market approach for their solution. They are also concerned with the protection of private information on the ledger and the ability to govern the digital smart contracts where the business logic is executed.

Kaleido, a leading provider of enterprise blockchain solutions, has partnered with financial services leaders to move past blockchain pilots and achieve real results in production. They have worked with companies like komgo and Project i2i to create new business models with enterprise blockchain. komgo, a blockchain-based commodity trade and finance network, executed a half a billion francs of commodity trade finance transactions related to shipments of crude oil from the North Sea. Project i2i, a blockchain-based payment network, connected rural community banks in the Philippines and facilitated over 575 transactions amounting to 79.2 Php million. To address the challenge of private information protection, Kaleido included advanced cryptography in its suite of capabilities. They also added the Rotating Signers Service to allow participation of more than 15 members and released new smart contract management components.

• The implementation of blockchain technology in financial services has led to remarkable results in a short amount of time. komgo, for instance, achieved a significant milestone by executing a half a billion francs of commodity trade finance transactions. Project i2i successfully grew its network and facilitated a significant number of transactions, achieving savings equivalent to a week’s worth of food for ‘unbanked’ families. The network also achieved Philippines central bank approval and is on pace to have over 400 rural banks and over 2,500 branches in the region onboard by next year. These results demonstrate the practical uses of blockchain technology and its potential to transform the financial services industry.

• komgo executed a half a billion francs (nearly a billion USD) of commodity trade finance transactions

• Project i2i grew its network from 6 participating banks in 2018 to 31 financial institutions with 153 branches and 252,800 accounts

• Project i2i facilitated over 575 transactions amounting to 79.2 Php million