Blockchain and DLT in Singapore

Blockchain and DLT in Singapore.For the past few months , the market have seems to be bullish on Crypto currencies  and BlockChain Technologies .Less  than few months the major  Crypto currencies have soar an average of more than 500% of their face value. Up to date NOV  the prices of Major Crypto Currencies such as Bit coin, ETH , Litecoin are still going up. Before we go deep into explaining whats Blockchain and DLT in Singapore is happening . I would like to explained some basic Fundamental of What is a Blockchain and DLT.

The History of Money

Trades , goods and service exchange have been practised by human for centuries, to satisfied the needs of both parties. Starting from Barter Systems during the Cave Man era, to the Gold coin Roman Currencies towards Fiat Paper Currencies , E wallet etc .Every Single Monetary systems has its disadvantages and Problem.

Refer the Table below about the Evolution of Money

Year Introduce	Monetary Systems	Advantages	Disadvantages
6000 BC	Barter Systems	Trade Base on Mutual Agreement.	No common Value Reference unit you can’t keep the Value Good s can be Stolen Not easily to be Carry around
600 BC	Coins ( Gold/ Silver)	Common Value Reference Unit Value Preserve Coins are small and easy to be carried around	You can,t carry  a whole sack of gold around. It can be Stolen
1000 AD	Fiat  Paper Currency	Easy to be Carry Around The Value is backed by Precious Metal and Government Cost of Issued is Low	Can be Stolen Easily Bound Inflation if the Currency is overly issued. The Value is Intangible depends on good will of trust.
1780 AD	Cheques	Specified the Identity of the Sender Signature Validation is Required Receiver Details is Specified	Signature Can be Faked Long Waiting transaction time
1998	E-Wallet	Do not need to carry any money High Security level Fast Transfer	Tied down to Government
2008	Blockchain -Bitcoin	Do not need to carry any money High Security level Fast Transfer Decentralised	Not fully accepted by all Countries , Government .

What is BlockChain Transaction ?

All your transaction will be copied and cross check by the algorithm System counting book that they called it ” Ledger”  throughout the Network of Computer in the System.There are No Central processing Server to process any transaction, all transaction are encrypted and distributed throughout the Network of Computers.

What is DLT, Distributed Ledger Technologies?

All Transactions data base will be encrypted and spread across the network.

When you are conducting a transaction .A copy of your transaction will be sent to all nodes of computer in the Network.When the Nodes of computer received a copy of the transaction, it will then compare and verified whether the transaction is  valid .

Each Transaction have its own unique Signature, which record information of current, past,and the identity of the transaction.

Blockchain and DLT in Singapore, her Development and News.

On 16 November 2016, MAS has announced that , together with  10 Consortium listed below Partnering with R3 to developed a system using block chain technology to conduct inter banking transfer of payment.

No	Participants
1	Bank Of America
2	BCS Information Systems
3	Credit Suisse
4	DBS Bank
5	The Hong Kong and Shanghai Banking Corporation Limited
6	JP Morgan
7	Mitsubishi UFJ Financial Group
8	OCBC Bank
9	R3
10	Singapore Exchange
10	UOB

Benefits of DLT in Singapore

No	Benefits of DLT
1	Eliminate the Middle Man
2	Secure Crypto Transaction
3	Smart Contracts
4	A More transparent and Secured Networks
5	Real Time Transaction
6	Allows both parties to transact without the administration of trusted third Party.

Possible DLT Usage in Singapore

No	Benefits of DLT
1	Trade Finance
2	Cross Border Payment
3	Digital Identity
4	Clearing and Settlement
5	Can check the True Ownership of products across the supply chain
6	Multi Party aggregation
7	Record Keeping
8	Re- insurance

Project Ubin Phase 1

9 March 2017, MAS announced  conclusion regarding Phase 1Project Ubin Ptototype .which have achieved several objective.

• Track Balances of institute participant.
• Real time Creation ,transfer and destruction of Balance.
• Round the Clock balance transfer on Distributed Ledger.
• Integration of Distribution Ledger to existing Central Bank Infrastructure.

In conclusion the Main Objective of Project Ubin Phase 1 is to integrate inter banking Transaction internally , while for Phase 2 Project Ubin, the Main focus is on offshore inter banking transfer .

Technical and Non technical implications

• Impact on Singapore Monetary Policy
• Impact on Money Supply
• Regulatory Risk

Impact of Project Ubin in Singapore

If Successful,Singapore will be the first Asian country to digitise currency system.In order to survive increasingly competition, MAS Singapore is looking to re innovate the Financial systems in Singapore applying blockchain technology.

 

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