swift smart oracle
TRANSCRIPT
Smart Contract Oracles Proof-of-Concept
Connecting Smart Contract Securities to Market Data and Existing Payment Rails
Sponsored by and in collaboration with
(smartcontract.com)
The Ongoing Hype about Blockchains
• Blockchains are going to revolutionize the entire securities trading environment!
• Smart contracts, code running on the blockchain will digitize existing asset classes into “Smart Securities”!
• Putting these technologies together will streamline back office operations and offer exciting new trading opportunities!
But Nobody is Adequately Addressing…
• How will blockchains interact with your existing systems & payment rails?
• How will asset servicing work for smart securities? (corporate actions, dividend payments, collateral management …)
• What about regulation and compliance’s interaction with smart securities?
Interest Rates Payment Network
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MarketRate
SmartContract
101101
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101101
Smart ContractSecurity(Bond)
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0 1 0 111 0 11 0 1
1 0 11 0 11 0 1
101101
Smart Contract Oracles
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PoC: Fully Connected Smart Contract Securities
Interest Rate
Interest Rate
Interest Rate
Market Rate
Payment Confirmation
Confirmation
Payment
Bank Rates
Interest Rates Combined into a Market Rate
0 11 0 11 0 1
Key Benefits Key Questions
Transparent & fully trustworthy market interest rate calculation
Free shared reference data created without data providers
On-chain privacy of individual bank rates and shared data?
Use of oracles to provide data to smart contract securities?
Smart Bond
0 11 0 11 0 1
Market Rate SCBank OracleBank Interest Rate
Interest Rate
0 11 0 11 0 1Interest Rate
0 11 0 11 0 1Market Rate
Market Rate
Smart Contract Securities with Finality
Key Benefits
Efficiency gains from smart contract securities?
Ease of applying existing securities workflows?
Key Questions
Use of existing securities workflows for legal finality
ISO 20022 compliant smart contract code for standards
Payment to Existing Accounts on Existing Rails
Smart Bond
0 11 0 11 0 1
Global Interest Rate Bank Oracle
Global Rate
0 11 0 11 0 1Payment
0 11 0 11 0 1Confirmation
0 11 0 11 0 1Payment
SWIFT Network
0 11 0 11 0 1Confirmation
Smart contracts pay existing accounts over existing rails
Smart contracts hold off-chain events as a complete record
Key Benefits Key Questions
Ease of integrating existing payment mechanisms?
Smart contract’s ability to hold all key off-chain activity data?