Whitepaper on Distributed Ledger Technology

Whitepaper on Distributed Ledger Technology

  • ASTRI has been commissioned by the Fintech Facilitation Office (FFO) of Hong Kong Monetary Authority (HKMA) to conduct a research project on Distributed Ledger Technology (DLT) and to author a whitepaper, entitled “Whitepaper on Distributed Ledger Technology,” on the findings.  DLT is an innovative technology with blockchain as a famous example. The key objectives of this project are to carry out an open-minded, in-depth examination of the technology and to identify possible applications of DLT to banking services by engaging in proof-of-concept work. The whitepaper was published in Nov of 2016 with the goal to provide Hong Kong Fintech industry with a comprehensive introduction on the technology and to assist them in understanding how the technology might be deployed as an innovative solution to enhance and secure their business operations, as well as to fulfil regulatory compliance.

    DLT is an innovative technology with many benefits including transparency, resiliency, auditability, and cryptography enabled security. It is a vibrant technology with widening applications and teeming with research activities.

    The paper presents a comprehensive study on DLT for its key features, benefits, risks, and potential. In additional, it also addresses the issues of security enforcement and regulatory compliance. It showcases the viable application of DLT for Fintech with initial findings of three proof-of-concept work: mortgage loan application, trade finance, and digital identity management.

    The paper was written with valuable contributions from academia, banking industry, and DLT technology providers. The paper could be downloaded from this website.

    As DLT continues to evolve, ASTRI will continue its R&D effort in this area and its applications.

     

     

    A property transaction DLT system demonstrating ledger resiliency with transactions automatically replicated in multiple locations. In the diagram above, The transaction recording Alice selling property to Bob is securely recorded in multiple banks and Land Registry.

    Demonstration of Hash operation which converts data of any size to fixed size unique values, regardless of how minor the data differ from each other.

    Proof-of-concept: A DLT-enabled property valuation where the DLT system serves as a secure ledger system shared by multiple banks and surveyors.