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Article: Would an OTC Derivatives Distributed Ledger Be a Benefit?

17 August 2018 | Bill Hodgson

In April this year the World Economic Forum published a paper intended to brief senior people on the reasons to use (or not use) a distributed ledger for various business purposes. The article and related PDF can be seen over here, which contains a decision flow chart (shown below) which helps you decide if a DL is suitable for your use case. The article lists some specific circumstances where a DL might help which include:

  • A shared repository of data shared by multiple parties
  • Multiple writers, where more than one entity adds data to the ledger
  • Minimal trust, where the ledger brings shared ownership of the data and enforces trust
  • The need for an intermediary to enforce trust
  • Dependencies between transactions created by different entities

The paper also shows this decision chart, which I have adapted below for a specific example in the OTC market:

To read the full article, please:

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