MOD 5

1. Illustrate the potential areas where Blockchain Technology can be

implemented in Financial Services.

Commercial financing
Businesses need to purchase goods and services on credit with end-to-end visibility to avoid and
resolve transaction disputes. For example, IBM Global Financing (IGF) provides financing to
its global partners, which enables them to purchase goods and services from suppliers with
credit approved by IBM. With over 4,000 partners and suppliers all using different and often
incompatible systems, IBM moved all the information to the blockchain and presented it to
users as a distributed ledger.
The benefits of implementation are
• Complete visibility of the order-to-delivery pipeline
• Reduction in number of disputes filed
• Reduction in the time required to resolve disputes

Trade finance
Businesses need a way to streamline the process of obtaining approvals from multiple legal
entities (customs, port authorities, trucking or rail transportation firms, and so on) for the
movement of goods across borders. The blockchain can be used by the legal entities to sign all
approvals, and it keeps all parties informed regarding the approval status, when goods are
received, and when payment is transferred from the importer’s to the exporter’s bank.
The benefits for trade finance include the following:
• Complex processes simplified into a single process, all accessing a shadow ledger
• Increased access to capital, because it’s not caught up in long settlement times or errors and
disputes
• Increased trust and accountability among enterprises, regulators, and consumers

Cross-border transactions
Banks need a way to manage nostro/vostro accounts. Nostro (ours) refers to an account a
domestic bank holds in a foreign bank in the foreign country’s currency. Vostro (yours) is how
the foreign bank refers to that account. Such accounts are used to facilitate and simplify trade
and foreign exchange transactions through reconciliation. Nostro/vostro accounts can become
stored account transactions on a blockchain to dramatically improve transparency and efficiency
through automated reconciliation of accounts.
The benefits include
 • The ability to manage transactions across all of a bank’s vostro/nostro accounts
through a single interface
• Greater visibility of transaction status, current balance, and tracking over time
• Consistent, timely, and accurate picture across all nostro/ vostro accounts

2. Justify on how blockchain can be used in healthcare sector.

Healthcare
The healthcare industry needs a more efficient and secure system for managing medical records,
pre-authorizing payments, settling insurance claims, and performing and recording other
complex transactions. Blockchain promises to provide much needed relief.
Electronic medical records
Electronic medical records are currently maintained in data centers (in a cloud-like
environment), and access is limited to hospital and care provider networks. Centralization of
such information makes it vulnerable to security breach and can be expensive.
Blockchain holds the complete medical history for each patient, with multiple granularities of
control by the patient, doctors, regulators, hospitals, insurers, and so on, providing a secure
mechanism to record and maintain a comprehensive medical history for every patient.
With this in mind, the following benefits are realized:
● Tamper-resistant means of storing medical history
● Reduced time in resolution of insurance claims and increased efficiency in providing
insurance quotes
● Complete medical history of the patient for use by physicians for precise drug
recommendations

Healthcare payments pre-authorization

The term “clinical attachments” is a concept surrounding the need for additional clinical
information when a payer is adjudicating a healthcare claim. Claims are often submitted without
all the required supporting detail, so payer(s) need to request additional detail, which adds costs
and delays to the settlement process. Further, matching up the claims with the supporting
information is challenging for all parties involved.
Blockchain can simplify this complicated and time-consuming process and automate the
collection and sharing of information.
Additional benefits include
● Claims can be reviewed and paid more efficiently and quickly.
● The system can suggest alternative services that have better coverage.

3. Can you use Blockchain in IoT? If so then brief about its applications.

The Internet of Things (IoT)

As machines interact with one another, any relevant interactions can be reported by the
machines and recorded in the blockchain to increase efficiency and accuracy and reduce costs.
The trade logistics use case applies blockchain to automate IoT processes. Currently, freight
logistics involve many different parties: manufactures, forwarders, shippers, custom agents, and
insurers. Although parties often interact and depend on one another, they may have different
goals and use different systems to track shipments. An IoT-enabled blockchain is used as a
shared ledger to record shipping containers as they move through system. Smart
contracts can be automatically updated through the IoT Foundation and can be optimized to
exploit IoT-enabled international trade on blockchain.
The following benefits can be realized:
● Greater transparency of shipment progress improves efficiency.
● Trust grows, as all transactions are indelibly recorded.
● Accuracy is improved and costs are cut through IoT participation.
● Participants gain the ability to optimize and automate business processes through IoT.
● Future vision allows for “freight autonomy.”

4. How does blockchain influences in supply chain management sector?

Supply Chain Management

When something goes wrong with a complex “system of systems,” such as an aircraft, it’s
important to know the provenance, through supply chain management, of each component,
down to the manufacturer, production date, batch, and even the manufacturing machine
program.
Blockchain holds complete provenance details of each component part, accessible by each
manufacturer in the production process, the aircraft owners, maintainers, and government
regulators.
Benefits in this category include
● Increased trust because no single authority “owns” the provenance information
● Increased efficiencies lead to reductions in time taken to diagnose and remedy afault
improving system utilization
● Specific recalls rather than cross fleet/generic
Provenance is also important in the food supply chain.

5. How efficient is using genomecoin / genomeResearchcoin in health care?

An appcoin like Genomecoin is used to expand access on a grander scale as a public good fully
accessible by any individual worldwide. Further, the appcoin could be the tracking,
coordination, crediting, and renumerative mechanism sponsoring collaboration in the Genome
Data Commons community.
In the genomic sequencing and storage context, the economics feature could be used in
numerous ways, such as obtaining more accurate costs of research (blockchain economics as
tracking and accounting) and to remunerate data contributors (whether institutional or
individual) with Genomecoin or GenomicResearchcoin (blockchain economics as
micropayment remuneration). The economic/accounting tracking features of the blockchain
further allows now other foreseen capabilities of the blockchain, such as attribution as an
enabler for large-scale human projects (like attribution at the Git‐ Hub line item of committed
code or digital asset IP-protected ideas). Attribution is a crucial feature for encouraging
individual participation in large-scale projects.

6. Give the insights on Gridcoin, Foldingcoin, learncoin, healthcoin &

journalcoin

Gridcoin Gridcoin is the remunerative coin available to all BOINC (Berkeley Open
Infrastructure for Network Computing) projects, the infrastructure upon which SETI@home
runs.

Foldingcoin FoldingCoin, a Counterparty token that runs and is exchangeable to the more
liquid XCP cryptocurrency (and therefore out to Bitcoin and fiat currency) via the Counterparty
wallet (Counterwallet).
Learncoin Learncoin could be the currency of the smart contract literacy system, with schools,
student groups, or individuals issuing their own token: MthelieLearncoin, Huruma Girls High
School tokens, or PS 135 tokens (that all convert to Learncoin, and to Bitcoin). School
fundraising in any area worldwide could be conducted with Learncoin and LocalSchoolName
tokens. Just as physician RFPs make the health services market two-sided, students or student
groups could post their open learning contracts (or funding needs and budget) to a Learning
Exchange, which could be fulfilled by learning-funders on the other side of the transaction.

Healthcoin Healthcoin could more broadly be the coin or token for health spending, forcing
price discovery and rationalization across health services. Services in national health plans
could be denominated and paid in Healthcoin. This could help to improve economic
inefficiencies rife within the health-services industry. Price transparency—and a universal price
list—could result, such that every time a certain health service is performed, it costs 5
Healthcoin, for example, instead of the current system (in the United States) where each
consumer might pay a different amount that is a complex calculation of the multipayor system
connecting different insurers and plans.

Journalcoin Journalcoin could be issued as the token system of the publishing microeconomy
to reward contributors, reviewers, editors, commentators, forum participants, advisors, staff,
consultants, and indirect service providers involved in scientific publishing.
This could help improve the quality and responsiveness of peer reviews, as reviews are
published publicly, and reviewers are rewarded for their contribution. With Journalcoin,
reviewers can receive reputational and remunerative rewards, and more transparency and
exchange is created between authors, reviewers, and the scientific community and public.
ElsevierJournalcoin and SpringerJournalcoin, for example, could be issued as metacoins,
running on top of the Bitcoin blockchain, say as Counterparty assets, fully convertible at any
time to Bitcoin or other cryptocurrencies.

7. Can we fit blockchain in insurance sector? If so then describe its method of

implementation.

Insurance
The insurance industry can also use blockchain. Insurance providers need an efficient way to
process claims, verify that an insurable event (such as an accident) actually occurred, and
provide customers with fair and timely payouts. With automated insurance claim processing,
policy conditions are written into a smart contract stored on the blockchain and connected to
publicly available data via the Internet. Whenever an insurable event occurs and is reported by a
trusted source, the insurance policy is automatically triggered, the claim is processed according
to the terms of the policy specified in the smart contract, and the customer is paid.
The benefits for insurance are as follows:
● Eliminates the cost of processing insurance claims
● Reduces the opportunity for insurance fraud
● Improves customer satisfaction

8. Solve the Problem by writing necessary steps.

Statement: You are an employee of Oracle and have been asked to create
a Bitcoin wallet for the company. You must perform the following
actions:
● Generate a single wallet
● Generate a paper wallet with a passphrase
● Check wallet details

Ans.
• Visit bitaddress.org/.
• Hover over the webpage to generate the bitcoin wallet address.
• Under the Single Wallet tab, click on “Generate New Address” button to generate a
bitcoin address and a private key.
• Your Bitcoin Private Key is a unique secret number that only you know. It can be
encoded in a number of different formats. The Bitcoin Address and Public Key are
shown below that corresponds to your Private Key as well as your Private Key in the
most popular encoding formats (WIF, WIFC, HEX, B64).
• Switch to the Paper Wallet tab to generate the paper wallet with a passphrase.
• To check the wallet details, switch to Wallet Details tab. Enter the Private Key in the
textbox given and click on View Details.