{"id":15814,"date":"2016-08-30T10:13:42","date_gmt":"2016-08-30T07:13:42","guid":{"rendered":"http:\/\/www.altoros.com\/blog\/?p=15814"},"modified":"2020-02-20T01:43:54","modified_gmt":"2020-02-19T22:43:54","slug":"managing-risk-and-building-trust-for-blockchain-in-finance","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/","title":{"rendered":"Managing Risk and Building Trust for Blockchain in Finance"},"content":{"rendered":"<p>Some days I&#8217;m reminded of the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Land_Rush_of_1889\" target=\"_blank\" rel=\"noopener noreferrer\">Oklahoma Land Rush<\/a> (although I wasn&#8217;t there) when I observe and participate in blockchain. Other days the experience is more like <a href=\"https:\/\/en.wikipedia.org\/wiki\/Waiting_for_Godot\" target=\"_blank\" rel=\"noopener noreferrer\">Waiting for Godot<\/a>.<\/p>\n<p>So, maybe this current blockchain epoch should be called <em>Waiting for the Oklahoma Land Rush<\/em>. I&#8217;ll check with my Hollywood friends to see if this idea can get greenlighted.<\/p>\n<p>Meanwhile, we can all listen and learn from events like the recent <a href=\"https:\/\/www.meetup.com\/HyperLedger-SF\/events\/232468814\/\" target=\"_blank\" rel=\"noopener noreferrer\">Blockchain in Finance<\/a> meetup in San Francisco, which was led by <a href=\"https:\/\/www.linkedin.com\/in\/renatco\/\" target=\"_blank\" rel=\"noopener noreferrer\">Renat Khasanshyn<\/a>, CEO at Altoros.<\/p>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#Potential_for_blockchain\" >Potential for blockchain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#Viewing_and_managing_risk\" >Viewing and managing risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#The_developing_world\" >The developing world<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#Adoption_requires_trust_and_standardization\" >Adoption requires trust and standardization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#Not_enough_education_about_blockchain\" >Not enough education about blockchain<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#Want_details_Watch_the_video\" >Want details? Watch the video!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#Related_reading\" >Related reading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/#About_the_panelists\" >About the panelists<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Potential_for_blockchain\"><\/span>Potential for blockchain<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Renat did his best to tease out great potential use cases from five panel members, a group that included <a href=\"https:\/\/www.linkedin.com\/in\/jessica-renier-67ba06b\" target=\"_blank\" rel=\"noopener noreferrer\">Jessica Reiner<\/a> of Deloitte, <a href=\"https:\/\/www.linkedin.com\/in\/kathryn-white-12874616\/\" target=\"_blank\" rel=\"noopener noreferrer\">Kathryn White<\/a> of Royal Bank of Scotland (RBS), <a href=\"https:\/\/www.linkedin.com\/in\/andyjbeal\" target=\"_blank\" rel=\"noopener noreferrer\">Andrew Beal<\/a> of EY (Ernst &#038; Young), an independent blockchain strategist <a href=\"https:\/\/www.linkedin.com\/in\/staveau\" target=\"_blank\" rel=\"noopener noreferrer\">Sebastien Taveu<\/a>, and <a href=\"https:\/\/www.linkedin.com\/in\/kathleen-breitman-6860279\" target=\"_blank\" rel=\"noopener noreferrer\">Kathleen Breitman<\/a> of R3.<\/p>\n<p>However, the panelists all agreed that these are still the very early days, and that we must be patient.<\/p>\n<blockquote><p><em>&#8220;I can tell you how the beast works from the inside and I can tell you it\u2019s not pretty. Determining how we can improve business value and consumer value is not here yet.\u201d \u2014Sebastien Taveu<\/em><\/p><\/blockquote>\n<p>Sebastien mentioned potential areas of opportunity for blockchain, such as:<\/p>\n<ul>\n<li>moving money<\/li>\n<li>securities management risk<\/li>\n<li>data analytics<\/li>\n<\/ul>\n<p>Kathleen remarked on the potential for blockchain within <a href=\"https:\/\/en.wikipedia.org\/wiki\/Over-the-counter_(finance)\" target=\"_blank\" rel=\"noopener noreferrer\">OTC markets<\/a> and <em>exotic swaps<\/em>, but added that \u201cwe need a little bit of humility,\u201d as today&#8217;s environment has very large manual processes and is heavily regulated. \u201cIt can cost US$20 million to create a new OTC derivative,\u201d she noted.<\/p>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-A.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-A.jpg\" alt=\"Hyperledger Blockchain in Finance July 27 Panel Jessica Renier Kathryn White Andrew Beal Sebastien Taveau Kathleen Breitman A\" width=\"640\" class=\"aligncenter size-full wp-image-16019\" \/><\/a><\/p>\n<p>Low-hanging fruits, such as <em>customer loyalty programs<\/em>, which don&#8217;t face the regulatory thicket found with transaction settlements, were also mentioned. Kathryn outlined an RBS program that she had also mentioned in a meetup in Palo Alto a few days prior to the San Francisco event.<\/p>\n<p>She also thinks \u201cthere is a lot of <em>cost-saving opportunity<\/em> (within financial institutions). There are many ways of <em>streamlining processes<\/em> and improving back-end systems that are getting to be archaic. <em>Cross-border payments<\/em> and securities are an example, as is trade finance.\u201d<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Viewing_and_managing_risk\"><\/span>Viewing and managing risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Low risk emerged during the discussion as an obvious place to start. Andrew urged attendees to look to the areas \u201c<em>with the lowest amount of risk<\/em>. Reward points programs (such as the RBS use case) are not too super-sexy and don&#8217;t offer a ton of collective value for a network of financial institutions,\u201d he said, \u201cbut they do require cooperation within an institution and among a few institutions.\u201d<\/p>\n<blockquote><p><em>\u201cYou must prove out the technology first (in a program such as this) before anyone will roll out a high-risk project in a production environment.\u201d \u2014Andrew Beal, EY<\/em><\/p><\/blockquote>\n<p>Picking up on this comment, Kathryn noted that \u201can international bank can start without needing a partner. <em>Cross-institution cooperation<\/em> within an institution is much easier to get going.\u201d That brought up an insight from Jessica, who said that \u201csomething we think of high risk in the US may not be considered that way in a developing nation. So, it&#8217;s important to think of which countries you&#8217;re talking about when thinking internationally.\u201d<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"The_developing_world\"><\/span>The developing world<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Differences among nations, particularly relating to viewing the developing world, was a major focus of the discussion. \u201cLook in places where people don&#8217;t have any expanded identity form,\u201d Kathryn said.<\/p>\n<blockquote><p><em>&#8220;I think there&#8217;s a great opportunity (for blockchain) for people off the gird.&#8221; \u2014Kathleen Breitman<\/em><\/p><\/blockquote>\n<p>She added to this, noting the potential of:<\/p>\n<ul>\n<li>programmable money<\/li>\n<li>creating new financial assets<\/li>\n<li>creating new ways for people to finance themselves<\/li>\n<\/ul>\n<p>\u201c(In the developing world) how are you going to help me realize value?&#8221; Jessica asked. \u201cCan you quantify it? Blockchain can be (very) consequential within economies at the nation-state level. There are national security and humanitarian impacts of a particular use case. Take identity and (imagine) guaranteeing listed intellectual property in a corrupt nation.\u201d<\/p>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-B.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-B.jpg\" alt=\"Hyperledger Blockchain in Finance July 27 Panel Jessica Renier Kathryn White Andrew Beal Sebastien Taveau Kathleen Breitman B\" width=\"640\" class=\"aligncenter size-full wp-image-16020\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Adoption_requires_trust_and_standardization\"><\/span>Adoption requires trust and standardization<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Meanwhile, there&#8217;s a clear need to establish trust among traditional managers and executives in the financial services industry, according to the panel.<\/p>\n<blockquote><p><em>&#8220;We must get people who are uncomfortable with blockchain to trust it. I think the psychological aspect of this is overlooked today.&#8221; \u2014Jessica Reiner, Deloitte<\/em><\/p><\/blockquote>\n<p>Speaking specifically of regulators, Jessica said \u201cthey need to be able to look, touch, and feel it to get them to play with us and help us develop together.\u201d<\/p>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-C.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-C.jpg\" alt=\"Hyperledger Blockchain in Finance July 27 Panel Jessica Renier Kathryn White Andrew Beal Sebastien Taveau Kathleen Breitman C\" width=\"640\" class=\"aligncenter size-full wp-image-16021\" \/><\/a><\/p>\n<p>Kathryn said that efforts toward sharing standards \u201cor at least using interlocking standards\u201d is critical to take advantage of the \u201cbiggest opportunities, which are not within a single organization but are with consortia.\u201d<\/p>\n<blockquote><p><em>\u201cWe&#8217;re building horizontally&mdash;stacking platforms and protocols next to each other&mdash;but once you have standards, you can start rapidly building vertically. That&#8217;s when the dynamic changes.\u201d<br \/>\n\u2014Andrew Beal, EY<\/em><\/p><\/blockquote>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Not_enough_education_about_blockchain\"><\/span>Not enough education about blockchain<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Sebastien also chimed in, noting that \u201cpeople don&#8217;t understand a word about what you&#8217;re talking about today with blockchain. It&#8217;s still weird to them. So, we must start <em>an education<\/em> process at level zero, then move up. Once we all speak the same language, we can talk about standards and find ways to create use cases.\u201d One big step is to ask, \u201cWhat are some common modules of blockchain that you can put in the middle and have people understand? What is the common ground?\u201d<\/p>\n<p>Educating people is really important,\u201d Jessica said. \u201cIn fact, do we even have the same definition of what a particular use case is? Take <em>digital identity<\/em>, for example. Is this a question of better securing the identity of currently transacting players or is it registering new people in the spirit of financial inclusion? Sometimes people butt heads without understanding they&#8217;re talking about two different things.\u201d<\/p>\n<p><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-D.jpg\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Hyperledger-Blockchain-in-Finance-July-27-Panel-Jessica-Renier-Kathryn-White-Andrew-Beal-Sebastien-Taveau-Kathleen-Breitman-D.jpg\" alt=\"Hyperledger Blockchain in Finance July 27 Panel Jessica Renier Kathryn White Andrew Beal Sebastien Taveau Kathleen Breitman D\" width=\"640\" class=\"aligncenter size-full wp-image-16022\" \/><\/a><\/p>\n<p>Kathryn added that \u201cthis is not a problem confined to blockchain. How do you bring innovation into the organization in general? How do you get it out of the sand pit and play area? The financial services industry is hugely regulated and very risk-averse.\u201d<\/p>\n<blockquote><p><em>\u201cThe key thing is to frame things in terms of solving a problem that everyone can understand.\u201d<br \/>\n\u2014Kathryn White, RBS<\/em><\/p><\/blockquote>\n<p>Sebastien noted that \u201cadvanced tech people are not the core people working in the banks.\u201d This prompted Renat to ask, \u201cHow do we solve this gap between new tech and traditional bankers?\u201d<\/p>\n<p>Referring to the psychological dimension, he added, \u201cpeople must take a leap of faith. But we must convince them it&#8217;s OK to let go.\u201d<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Want_details_Watch_the_video\"><\/span>Want details? Watch the video!<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table width=\"100%\">\n<tbody>\n<tr>\n<td class=\"video-details-td\">\n<div style=\"float: right; width: 45%; padding-left: 15px; font-size: 14px;\">\n<p><strong>Table of contents<\/strong><\/p>\n<ol>\n<li style=\"margin-bottom: 6px;\">Introductions and early impressions about blockchain (<a href=\"#wistia_a9u1g85ytf?time=116\">1&#8217;56&#8221;<\/a>)<\/li>\n<li style=\"margin-bottom: 6px;\">What are some of the high potential blockchain use cases? (<a href=\"#wistia_a9u1g85ytf?time=360\">6&#8217;00&#8221;<\/a>)<\/li>\n<li style=\"margin-bottom: 6px;\">What are the requirements in the adoption of blockchain in finance? (<a href=\"#wistia_a9u1g85ytf?time=800\">13&#8217;20&#8221;<\/a>)<\/li>\n<li style=\"margin-bottom: 6px;\">What would developers need to include in a blockchain demo to pique the interest of finance executives? (<a href=\"#wistia_a9u1g85ytf?time=1370\">22&#8217;50&#8221;<\/a>)<\/li>\n<li style=\"margin-bottom: 6px;\">What should blockchain developers focus on when developing for finance? (<a href=\"#wistia_a9u1g85ytf?time=2450\">40&#8217;50&#8221;<\/a>)<\/li>\n<li style=\"margin-bottom: 6px;\">Q&#038;A. Will blockchain standardization help with adoption in finance? (<a href=\"#wistia_a9u1g85ytf?time=2820\">47&#8217;00&#8221;<\/a>)<\/li>\n<\/ol>\n<\/div>\n<p><script charset=\"ISO-8859-1\" src=\"\/\/fast.wistia.com\/assets\/external\/E-v1.js\" async><\/script><\/p>\n<div class=\"wistia_embed wistia_async_a9u1g85ytf\" style=\"height:320px;width:440px\">&nbsp;<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Related_reading\"><\/span>Related reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/the-royal-bank-of-scotland-builds-a-hyperledger-digital-wallet-the-lessons-learned\/\">The Royal Bank of Scotland Builds a Hyperledger Digital Wallet: the Lessons Learned<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/blockchain-adoption-industry-requirements-and-the-role-of-prototypes\/\">Blockchain Adoption: Industry Requirements and the Role of Prototypes<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/what-is-the-future-of-blockchain\/\">What Is the Future of Blockchain?<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/opinion-the-impact-blockchain-can-bring-upon-finance-and-banking-and-how-it-may-happen\/\">Opinion: The Impact Blockchain Can Bring upon Finance and Banking and How It May Happen<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/blockchain-bottlenecks-in-finance-healthcare-and-insurance\/\">Blockchain Bottlenecks in Finance, Healthcare, and Insurance<\/a><\/li>\n<\/ul>\n<hr>\n<h3><span class=\"ez-toc-section\" id=\"About_the_panelists\"><\/span>About the panelists<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div>\n<div style=\"float: right;\"><a href=\"https:\/\/www.linkedin.com\/in\/jessica-renier-67ba06b\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Jessica-Renier-Deloitte-Consulting-bio.png\" alt=\"Jessica Renier, Deloitte Consulting bio\" width=\"150\" height=\"150\" class=\"aligncenter size-full wp-image-15826\" \/><\/a><\/div>\n<div style=\"width: 600px;\"><small><a href=\"https:\/\/www.linkedin.com\/in\/jessica-renier-67ba06b\">Jessica Renier<\/a> is a manager in Deloitte Consulting\u2019s Strategy and Operations practice focused on the blockchain technology and digital identity.  Jessica has nine years of experience in banking, monetary policy, and international risk working for the Federal Reserve Bank, J.P. Morgan, and the Hoover Institution under the former Secretary of State Condoleezza Rice. Jessica holds an MBA from Stanford\u2019s Graduate School of Business and is a member of the Council on Foreign Relations.<\/small><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div>\n<div style=\"float: right;\"><a href=\"https:\/\/www.linkedin.com\/in\/kathryn-white-12874616\/\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Kathryn-White-RBS-bio.png\" alt=\"Kathryn White, RBS bio\" width=\"150\" height=\"150\" class=\"aligncenter size-full wp-image-15768\" \/><\/a><\/div>\n<div style=\"width: 600px;\"><small><a href=\"https:\/\/www.linkedin.com\/in\/kathryn-white-12874616\/\">Kathryn White<\/a> is working at Silicon Valley Solutions for the RBS, scanning the horizon for new trends and technologies and considering their impact on banking. She is reviewing interesting startups from across all areas, looking for ideas which will make life better for the RBS customers, in areas including big data, cloud services, blockchain, and many more. Kathryn is aiming to bring the best ideas back to the bank for proof-of-concepts and deployment to customers.<\/small><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div>\n<div style=\"float: right;\"><a href=\"https:\/\/www.linkedin.com\/in\/andyjbeal\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Andrew-Beal-EY-bio.png\" alt=\"Andrew Beal, EY bio\" width=\"150\" height=\"150\" class=\"aligncenter size-full wp-image-15827\" \/><\/a><\/div>\n<div style=\"width: 600px;\"><small><a href=\"https:\/\/www.linkedin.com\/in\/andyjbeal\">Andrew Beal<\/a> is a manager in Ernst and Young\u2019s (EY) San Francisco office and a west coast lead for the firm\u2019s Blockchain and Distributed Infrastructure Practice. Since joining EY in February 2016, Andrew has lead the practice\u2019s strategic partnership and thought leadership initiatives. Andrew is also a subject matter expert (SME) for the firm and educates both EY staff and clients about issues related to the blockchain technology and virtual currency. As a SME, Andrew works with complimentary EY sectors to develop the blockchain-enabled business solutions. He works closely with EY\u2019s Blockchain Technology Enablement Team on use case and proof-of-concept development.<\/small><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div>\n<div style=\"float: right;\"><a href=\"https:\/\/www.linkedin.com\/in\/staveau\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Sebastien-Taveau-bio.png\" alt=\"Sebastien Taveau bio\" width=\"150\" height=\"150\" class=\"aligncenter size-full wp-image-15828\" \/><\/a><\/div>\n<div style=\"width: 600px;\"><small><a href=\"https:\/\/www.linkedin.com\/in\/staveau\">Sebastien Taveau<\/a> is a puzzle solver, a strategic thinker, he strongly believes in intelligent disruption, clear strategic vision, and practical execution. Sebastien\u2019s technical and professional experience spans more than 20 years in various industries. He has shaped ecosystems and products around FinTech, mobile payment, mobile security, mobile identity, and consumer solutions even when he was told it was not possible. Sebastien has worked as MasterCard Chief Developer Evangelist. His specialties include: disruptive innovation, emerging technologies, banking, system architecture, and currently blockchain.<\/small><\/div>\n<\/div>\n<p>&nbsp;<\/p>\n<div>\n<div style=\"float: right;\"><a href=\"https:\/\/www.linkedin.com\/in\/kathleen-breitman-6860279\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2016\/08\/Kathleen-Breitman-R3-CEV-bio.png\" alt=\"Kathleen Breitman, R3 bio\" width=\"150\" height=\"150\" class=\"aligncenter size-full wp-image-15829\" \/><\/a><\/div>\n<div style=\"width: 600px;\"><small><a href=\"https:\/\/www.linkedin.com\/in\/kathleen-breitman-6860279\">Kathleen Breitman<\/a> is a Senior Strategy Associate for R3. Previously, Kathleen has worked for Accenture, De Dicto, and Bridgewater Associates. She has a strong analytical background and excels in entrepreneurial problem solving. <\/small><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Some days I&#8217;m reminded of the Oklahoma Land Rush (although I wasn&#8217;t there) when I observe and participate in blockchain. Other days the experience is more like Waiting for Godot.<\/p>\n<p>So, maybe this current blockchain epoch should be called Waiting for the Oklahoma Land Rush. I&#8217;ll check with my Hollywood friends [&#8230;]<\/p>\n","protected":false},"author":9,"featured_media":16023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[672,972,753],"class_list":["post-15814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","tag-blockchain","tag-finance","tag-hyperledger"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Managing Risk and Building Trust for Blockchain in Finance | Altoros<\/title>\n<meta name=\"description\" content=\"Trust, standards, mitigating risk, and the role of blockchain in the developing world were all topics during a lively panel discussion in San Francisco.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Managing Risk and Building Trust for Blockchain in Finance | Altoros\" \/>\n<meta property=\"og:description\" content=\"Minimizing risk and improving trust emerged as two key topics during a lively panel discussion in San Francisco.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.altoros.com\/blog\/managing-risk-and-building-trust-for-blockchain-in-finance\/\" \/>\n<meta property=\"og:site_name\" content=\"Altoros\" \/>\n<meta property=\"article:published_time\" content=\"2016-08-30T07:13:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-19T22:43:54+00:00\" \/>\n<meta property=\"og:image\" 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