Content thumbnail 02/ Smart Contract Templates: Progress

02/ Smart Contract Templates: Progress

Lee Braine | Barclays | 16 Nov 2016

Smart contract templates: progress Lee Braine, Investment Bank CTO Office 16 November 2016 Presentation at The Second R3 Smart Contract Templates Summit London and New York UNRESTRICTED 7

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Contents 1. Internal Team in Barclays Accelerator 2. First summit 3. First research paper 4. Second summit 5. Second research paper 6. Publicly available materials 7. Questions UNRESTRICTED 8

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1. Internal Team in Barclays Accelerator – January to April 2016 Introduction Demo Day Complex challenge – each bank maintains it own Aim – showcase a vision of the future: the lifecycle of a separate ledgers and systems, huge duplication of “smart” standardised financial product effort and cost Software demo – prototype web application to edit Solution – shared ledgers and smart contracts templates, edit agreements, enter trades, affirm trades, Piece in jigsaw puzzle – smart contract templates and view trades Our focus – legal document templates to facilitate History in the making – first public demo of prototype smart contracts application on R3’s prototype Corda platform • connect legal text to business logic, simplify Venue – The O2 in London, audience of 800, largest legal documentation processes FinTech demo day ever anywhere • drive standards adoption via reusable Collaboration – Barclays Investment bank, R3, University templates College London, ISDA, Société Générale, Techstars • mutualise costs via common components General benefits – cost reductions, efficiency improvements, risk reductions UNRESTRICTED 9

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Internal Team in Barclays Accelerator – software demo UNRESTRICTED 10

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2. First summit The R3 Smart Contract Templates Summit • held in London and New York in June 2016 • presentations by R3, Barclays, ISDA, University College London and Norton Rose Fulbright • over 60 participants from over 20 organisations UNRESTRICTED 11

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3. First research paper Smart Contract Templates: foundations, design landscape and research directions • position paper presenting vision • foundations (terminology, automation, enforceability, semantics), e.g.: “A smart contract is an agreement whose execution is both automatable and enforceable. Automatable by computer, although some parts may require human input and control. Enforceable by either legal enforcement of rights and obligations or tamper-proof execution.” • design landscape (parameter sophistication, code commonality, long-term research) • joint Barclays-UCL authorship • publicly released in August 2016 ert UNRESTRICTED 12

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Design landscape Evolution of legal prose and parameters PDF/Word Prose linked to Prose linked to All contract Computer base type Computer higher order Law business logic as documents Science parameters Science parameters higher order parameters Evolution of code sharing Different across Standardisation Common Standardisation Common banks utility functions business logic Long-term research Source Admissible Language Source Language Code Legal Computer Science Computer Science Prose and Law and Law Code Legal Code Prose UNRESTRICTED 13

4. Second summit The Second R3 Smart Contract Templates Summit • held in London and New York in November 2016 • presentations by R3, Barclays, CIBC, Nordea, ISDA, FIA, Norton Rose Fulbright, University College London and Cardozo Law School UNRESTRICTED 14

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5. Second research paper Smart Contract Templates: requirements and abstract specification • explores initial requirements, basic agreements, and extended agreements • focuses on key data structures to support smart legal agreements • joint Barclays-UCL authorship • to be publicly released in December 2016 Consider the Ricardian Contract triple: ricardian-contract → prose parameter * code prose → prose-element * prose-element → markup | text parameter → name type value * = zero or more 15 UNRESTRICTED

6. Publicly available materials Smart Contract Templates at Video https://vimeo.com/168844103 Barclays Accelerator Demo Press article http://www.ibtimes.co.uk/barclays-smart-contract-templates-heralds-first-ever-public- Day demo-r3s-corda-platform-1555329 Press article http://www.coindesk.com/barclays-smart-contracts-templates-demo-r3-corda/ The R3 Smart Contract Slide deck http://r3cev.com/s/R3-Smart-Contract-Templates-Summit-_FINAL.pdf Templates Summit Press release https://r3cev.com/press/2016/7/13/press-release-r3-led-industry-group-investigating- smart-contract-templates-for-blockchain-inspired-platforms Press interview http://www.ibtimes.co.uk/r3-extends-collaboration-smart-contract-templates-summit- 1570121 Article https://www.burges-salmon.com/news-and-insight/legal-updates/key-themes-from- the-r3-summit-on-smart-contract-templates/ Smart Contract Templates: Research paper https://arxiv.org/pdf/1608.00771.pdf foundations, design landscape Press article http://www.coindesk.com/barclays-collaboration-sets-forth-vision-smart-contracts- and research directions future/ Legally-Enforceable Smart Video https://www.youtube.com/watch?v=IHAT7zCzIhM Contracts Press article http://www.ibtimes.co.uk/legally-enforceable-smart-contracts-debated-london-fintech- week-2016-1572084 The Second R3 Smart Contract Slide deck To be made publicly available in November 2016 Templates Summit Smart Contract Templates: Research paper To be made publicly available in December 2016 requirements and abstract specification UNRESTRICTED 16

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7. Questions “It will take time to build, but the potential benefits are enormous” “Further collaboration is required; it needs industry behind it” UNRESTRICTED 17

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