Blockchain and the Future of Global Financial Markets
Many enterprises are currently in the process of experimenting with blockchain technology or considering its applicability to their businesses. We can find examples in almost any industry: Big Pharma, such as Pfizer and Merck are experimenting with blockchain pilot projects to alleviate supply chain and counterfeit problems; State Farm, one of the largest insurance companies in the US, is working on a net subrogation product in collaboration with USAA; Luxury brand conglomerate LVMH, owner of the iconic Louis Vuitton label, is preparing to launch a blockchain for proving the authenticity of high-priced goods; and in the financial industry, JP Morgan built its own blockchain, Quorum, which is a private version of the public blockchain, Ethereum, and as of late also launched its own Stablecoin, JPM Coin.
Big tech companies are investing heavily in blockchain. Both IBM and Microsoft have built their own blockchain and are offering blockchain services to businesses. Both have created consortiums to explore blockchain solutions in supply chain, data processing and data protection. Microsoft presented, in May 2019, its prototype blockchain solution, aiming at empowering users to own and control their own data. With Amazon launching, in May 2019, their Blockchain as a service (BaaS) solution platform and Facebook gearing up with intention to launch its cryptocurrency, Libra, it seems that all the “big players” in the global economy are very active participants in the new blockchain economy, and further, that no one is willing to take a chance on missing out on this opportunity.
Businesses don’t necessarily have to develop their own blockchain, they could join one (of many) blockchain consortiums such as R3, IBM, Microsoft, IIN, and GBBC – the list goes on. All of them are global and are aimed at providing cross-border, blockchain solutions for businesses.
Blockchain technology is most definitely here to stay, and it will affect any industry and business as we know it today!
Course Objectives
By the end of the course, the participant will be able to:
- Define blockchain technology
- Review blockchain history
- Explain how blockchain works
- Recognize the challenges of blockchain technology and discuss the proposed solutions and pilot projects that are currently underway
- Describe bitcoin and its derivative coins
- Describe Distributed Ledger Technology (DLT) and its relation to blockchain technology
- Expound on the different types of blockchain protocols and consensus mechanisms
- Analyze the difference between private (permissioned) versus public (permissionless) blockchain and their potential uses and applications
- Discuss blockchain vulnerability
- Explain the legal status of blockchain and digital assets in the US and globally
- Explain what smart contracts are and their uses and applications
- Discuss blockchain business consortiums and the pros and cons of joining a consortium
- Analyze the different uses and applications of blockchain technology in the financial industry, including: clearing and settlement, proxy voting, payments and data management
Suggested Prerequisites: N/A
Program Level: Foundational
Field of Study: Specialized Knowledge
Advance Preparation: None
Computers and Financial Calculators: N/A
Recommended CPE Credits: 7, 14 or 21
Duration: 1, 2 or 3 days