Distributed Ledger Technology in the Banking Sector: A Method for the Evaluation of Use Cases

Research background: The year 2016 ended the period of the migration from national payment services to the SEPA instruments. At the same time, however, it has become apparent that some problems remained unresolved. Overcoming them requires finding suitable technological solutions. The potential of the distributed ledger technology (DLT) is currently being explored by the financial sector and its implementation may affect the SEPA schemes in a variety of dimensions. Purpose of the article: The aim of the article was to determine the potential impact that the DLT transfer to the banking sector may have on the functioning of the SEPA in the future. The paper presents SEPA’s assumptions and the current status of the project as well as the DTL’s concept. It describes the technology transfer implications for the banking industry and compares the SEPA schemes currently operating with those based on the DLT. It also indicates the opportunities and threats that are the consequence of the new technology implementation and examines their significance for the SEPA. Methods: In the article, a qualitative analysis is supplemented with a quantitative one. Elements of descriptive statistics have been used to characterize the functioning of the main pillars of the SEPA schemes. The final conclusions are based on the comparative analysis of the SEPA schemes and developed DLT applications. Findings & value added: The existing problems might be solved by supplementing the SEPA payment schemes currently operating with the applications based on the DLT. The systems that will be subsequently developed will provide the required real-time processing and a global reach. They will also extend the functionalities of the SEPA schemes with the ability to transfer other currencies. The implementation of this technology will result not only in new financial products but, first of all, in creating new business models. Consequently, we may expect a modification of the currently operating SEPA schemes, based on their supplementation rather than total replacement in a short time frame.

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Beyond Bitcoin: Recent Trends and Perspectives in Distributed Ledger Technology

10.20944/preprints202110.0259.v1 ◽

2021 ◽

Author(s):

Diego Romano ◽

Giovanni Schmid

Keyword(s):

Critical Analysis ◽

Building Blocks ◽

Use Cases ◽

Distributed Ledger ◽

Distributed Ledger Technology ◽

Functional Aspects ◽

Recent Trends

In the last four years, the evolution and adoption of blockchain and, more generally, distributed ledger systems have shown the affirmation of many concepts and models with significant differences in system governance and suitable applications. This work aims to update the critical analysis of blockchain technologies carried out by our previous contribution to this journal, extending the focus to distributed ledger components and systems. Starting from the topical concept of decentralization, we introduce concepts and building blocks currently adopted in the available systems centering on their functional aspects and impact on possible applications. We present some conceptual framing tools helpful in the application context, and we will propose the concept of process authenticity, which we will discuss through two use cases: blockchain document dematerialization and e-voting.

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Distributed Ledger Technologien im Rheinischen Revier in Nordrhein-Westfalen

10.31224/osf.io/5mdw6 ◽

2020 ◽

Author(s):

Daniel Trauth ◽

Philipp Niemietz ◽

Johannes Mayer ◽

Alexander Beckers ◽

Wolfgang Prinz ◽

...

Keyword(s):

Manufacturing Industry ◽

Service Providers ◽

Point Of View ◽

Use Cases ◽

Federal State ◽

Process Data ◽

Distributed Ledger ◽

Distributed Ledger Technology ◽

New Business ◽

Product And Process

The use of Distributed Ledger Technologies in the field of production optimizes various use cases. Within the framework of the research project “Blockchain Reallabor in the Rheinisches Revier”, five use cases were defined for production in the first year of the project. The confidence in and transparency of stored data, the elimination of central entities and automatic micropayments in real time are revolutionizing auditing, product and process monitoring and life cycle assessment. With the machine data marketplace for trading process data and the rental of machine capacities in the form of subscription, for example, a Distributed Ledger creates new business models.In North Rhine-Westphalia (NRW), the field of users (17 percent) is currently not highly developed in comparison to service providers, infrastructure providers and research alliances (83 percent). Nevertheless, there are some projects that usually contain the described use cases in a less complex way and thus confirm their validity. An analysis of the ecosystem Distributed Ledger Technologies in the Rheinisches Revier provides some insights into the actors involved. There is a trend towards large companies implementing Distributed Ledger Technology projects. It is not possible to make a technology or infrastructure recommendation based on the developed ecosystem, since the identified use cases are handled with different infrastructures depending on the project.Finally, it should be emphasized that the federal state of North Rhine-Westphalia can be considered a pioneer in Distributed Ledger Technologies in Germany. A nation-wide comparison of users from the manufacturing industry shows that over 65 percent are located in NRW. The establishment of the Distributed Ledger Technology in the small and medium business sector is, from today‘s point of view, the next step towards reaching the level of perfect productivity according to the Gartner hype cycle.

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An Operative Application of Distributed Ledger Technology for Banking Domain

International Journal of Computer Science and Mobile Computing ◽

10.47760/ijcsmc.2021.v10i07.010 ◽

2021 ◽

Vol 10 (7) ◽

pp. 68-75

Author(s):

Sharmila S P ◽

Harsha Pandit Moger

Keyword(s):

Banking Sector ◽

Large Data ◽

Banking Systems ◽

Distributed Ledger ◽

Distributed Ledger Technology

Banking systems have been using a centralised network over several years. Any attack on the centralised unit would risk a whole lot of banking data. To avoid this, Blockchain is an approach, which is more appropriate to hold the large data in a safe manner as it is a decentralised network. The purpose of this paper is to provide better understanding about using blockchain for the banking sector by outlining the opportunities, benefits and challenges of this technology. We propose a technique of banking using blockchain which would make things simpler, safer and transparent. Also, at some point in time, we can even put restrictions to limit the transaction amount, day limit, credit limit or other restrictions depending upon the banking rules. Through these restrictions, attempts towards hacking or misuse could be prevented. This work would benefit the banking sectors and modify the direction of Finance.

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Understanding blockchain for insurance use cases

British Actuarial Journal ◽

10.1017/s1357321720000148 ◽

2020 ◽

Vol 25 ◽

Author(s):

D. Popovic ◽

C. Avis ◽

M. Byrne ◽

C. Cheung ◽

M. Donovan ◽

...

Keyword(s):

Real World ◽

Insurance Industry ◽

Use Cases ◽

Insurance Companies ◽

Deep Knowledge ◽

Practical Guide ◽

Distributed Ledger ◽

Distributed Ledger Technology ◽

Real World Applications ◽

Insurance Business

Abstract Insurance industry practitioners have deep knowledge of their industry, but there is a lack of a simple-to-understand, practical blueprint on applying distributed ledger technology solutions, including blockchain. This paper provides a practical guide for actuaries, risk professionals, insurance companies and their Boards on blockchain, including an education piece to provide an understanding of the technology. Examples of real-world applications and use cases in insurance are provided to illustrate the capability of the technology. The current risks and challenges in adopting the technology are also considered. Finally, a checklist of issues to consider in adopting a blockchain solution for insurance business problems is provided.

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Blockchain Technology: Emerging Applications and Use Cases for Secure and Trustworthy Smart Systems

Journal of Cybersecurity and Privacy ◽

10.3390/jcp1010002 ◽

2020 ◽

Vol 1 (1) ◽

pp. 4-18

Author(s):

Danda B. Rawat ◽

Vijay Chaudhary ◽

Ronald Doku

Keyword(s):

Use Cases ◽

Third Party ◽

Public And Private ◽

Trusted Third Party ◽

Smart Systems ◽

Blockchain Technology ◽

Distributed Ledger ◽

Distributed Ledger Technology ◽

Comprehensive Survey ◽

A Chain

Blockchain, also known as a distributed ledger technology, stores different transactions/operations in a chain of blocks in a distributed manner without needing a trusted third-party. Blockchain is proven to be immutable, which helps with integrity and accountability, and, to some extent, confidentiality through a pair of public and private keys. Blockchain has been in the spotlight after successful boom of the Bitcoin. There have been efforts to leverage salient features of Blockchain for different applications and use cases. This paper presents a comprehensive survey of applications and use cases of Blockchain technology for making smart systems secure and trustworthy. Specifically, readers of this paper can have thorough understanding of applications and use cases of Blockchain technology.

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