 Welcome to the August 2023 hyperledger mortgage financial market subgroup meeting. That's always a mouthful first thing in the morning. Before we get started, I'd like to express our appreciation to the financial markets special industry group in the hyperledger foundation for making this meeting possible and their ongoing support. As you can see the topic for this meeting is not one blockchain to rule them all interoperability across blockchains. Okay, as always, please note that this meeting is being recorded, and we are under the umbrella of the hyperledger foundation. So we ask that everyone abide by the antitrust policy which we're sharing on the screen now, and the code of conduct. The antitrust policy states that we avoid discussions of company specific pricing products and projects. We don't make negative comments about other companies or products and the code of conduct means that we treat each other with respect, never discriminate and communicate constructively. We fully support hyperledger's policy of openness equity and inclusion, and for new participants we welcome you and if you'd like to please introduce yourself on the chat and let us know if there's anything interesting or anything of specific interest to you. Okay, here's our agenda for today. James Hendrick will provide an update on developments in the mortgage industry. In the past three months, we've been delving into blockchain and AI. This month, we're going to take a break from that topic and talk about interoperability across blockchains. The reason for this shift is as follows. We've been discussing a on blockchain and a lot of the solutions that we've been discussing aren't necessarily on hyperledger fabric. Although we do lean towards fabric, we don't think this diversity of blockchains is a bad thing. Each blockchain has its own strengths and uses. However, one thing we do want to stress is interoperability across blockchains. The proliferation of different and potentially siloed blockchains can serve as an impediment to the growth of blockchain usage. So today, we'd like to underscore the importance of interoperability across blockchains. We always cover this slide in the beginning of each meeting and this is to reinforce that we're all on the same blockchain journey, but we may be at different points along that path. So for today's topic of interoperability, we're all going back to the beginning of our blockchain journey and do some education. But before we go into our presentation, we do want to make a public service announcement hyperledger has rebranded with a new logo color scheme, etc. Next month, we'll have a new presentation format, but we thought we'd give everyone a sneak peek as to what that new branding looks like. So you can see on the left, that's the old one on the right is a new one new color schema. I really like the new logo. There's another slide towards the end of this presentation that does have that new format. I think it looks pretty cool. Okay, the next three slides I always mention are for those that are new to the group and would like more information. This slide links to different resources for the Linux Foundation hyperledger foundation. You can see for a second from the bottom is the link to our mortgage subgroup Wiki. I'm meeting notes for our groups reporting some previous sessions and curated articles about blockchain in the mortgage industry. These are great resources and I highly encourage you to use it. In order to access those resources, you will need an LF ID and this slide shows you how to do how to access that I'm not going to go over it but just sharing so that you guys know how to access that information. One thing that we always like to share is this is free training that hyperledger offers. As I always mentioned, I've taken this training it's fantastic so I highly encourage you to use it. Okay, next James Hendrick will walk us through the state of blockchain in the global mortgage industry take it away James. Marvin thank you very much great introduction and looking forward to the new branding as well from hyperledger. Let's jump into the first slide Marvin. So a couple articles to talk about today so XRP ledger our first one has welcomed the first stable coin backed by mortgages. The innovative stable coin dubbed home is set to redefine the landscape of mortgage financing and offer homeowners better and more accessible options. By the RWA protocol the XRP community can benefit from the stability and growth potential of mortgages which offer a steady stream of reliable income. So far the RWA protocol has facilitated the funding over 46 home loans, which has helped showcase the effectiveness of the new innovation. And key benefits to the home stable coin include transparency on the loans backed by the coin so all over collateralized loans backing the coin may be viewed on the blockchain. Currently the return on this product ranges around two to 5% and loans are backed by homes with more than that amount the average loan is being over collateralized by 30% or more. And lastly assets and the creation of loans are decentralized so distributed around the US and they're open to any loan officer or financial institution to originate so highly recommend taking a look at the article because it is the new stable coin that's out on the market. The next article that we have is relative to smart contracts and getting a home loan. You know this is a great article it starts out with defining what the differences between a smart contract and a traditional contract so if you're not familiar with those differences. Great article that to jump into and learn about he you know discusses what are the difference of the parties involved what are the roles of lawyers bank representatives and signature which signature witnesses in a paper contract compared to a smart contract. What's the validity of the contract. There's a great quote in there of why should the world trust the crazy moon math that is blockchain. It's really because there are these are peer reviewed mathematical proofs that guarantee that certain axioms will always hold true if used properly. Over what are the difference between the terms and conditions of both traditional versus smart contract, as well as the enforcement of court, traditional versus smart scenario enforcement has done automatically through the code itself terms and conditions or self executing and there's no need for intermediators intermediary intermediaries, or third parties to enforce. So while the automatic execution of smart contracts provides efficiency and eliminates the need for legal proceedings. It also means that there's no room for subjective interpretation or negotiation. So again, another great article if you want to learn the difference between a smart contract and a traditional paper contract. So I'm Marvin. So you know as Marvin mentioned at the beginning we just came off of a series of doing blockchain and AI and some of the tie ends. There are a couple little things that I still want to introduce to this group at the tail end of that series. This first article actually is more blockchain focus than AI focus but it's a LinkedIn article by come last and he is the engineer at trust for their AI systems and blockchain. And he talks about how blockchain could be the trust layer for artificial intelligence. Blockchain can provide an immutable timestamp record of who created what and when using artificial intelligence. There are applications and financial services supply chain telecommunications health insurance. They can all benefit from this and the things they benefit are from the verifiable data of a blockchain, enhancing data privacy and security, immutable audit profiles and combating AI bias and manipulation. I think this one's kind of significant. It can record and validate the sources and characteristics on the blockchain so biases can be detected and addressed effectively. The article goes on to talk about how according to Gardner, the business value provided by blockchain will reach 176 billion by 2025 and projected at 3.1 trillion by 2030 AI will contribute 391 billion in business value by 2025. And then the very last article I wanted to pass along. You know, as we know, like any new attack technology as AI comes along, it develops a whole new language of terms that we're getting used to. So, you know, we've all heard and potentially explored terms related to AI such as chat GPT open AI and LLE. But you know, are you familiar with large language, large language models pathways language model and the difference between natural language generation and natural language processing. But this is a great article containing over 60 AI specific terms and definitions to get you familiar with the AI universe. So whether you're looking to understand what neuro morphic computing is it's actually what I'm very fascinated about. It's a computer design that's my modeled after elements of the human brain, or what a generative adversarial network is. This is a great article into the introduction of AI and as you can see, there's still plenty of terms that I'm getting myself familiar with as well. James, a quick question on the AI needs blockchain. Does it make sense to for us to bring back Kamlesh because he's spoken before our group before and he was a pretty good speaker Kamlesh Nagwari. You know, I am sure at a future point we're going to bring an AI back into discussion and I think he would be an excellent invite back to this meeting. Okay, cool. And on to the next slide Marvin. And for all of you that are new this is the hyper ledger mortgage subgroup wiki. In fact, Alma just dropped a link into the chat if you'd like to click on that link and market as a favorite. All of these articles that we covered today, along with plenty more that we've covered over the last two years are available on the site. We also have a collection of over 200 other articles we've collected over the last two years so if you guys are looking for information, definitely take a look at this site that's a large source of information. Also feel free to reach out to Marvin and I directly. Also, if you're interested in any of those previous presentations on AI and blockchain or any of the blockchain presentations we've done since 2021. So on the right side there you'll actually see a link to each one of those subgroup meetings, and within those links you'll find a recording of the presentation along with the presentation decks themselves. And Marvin next slide. And it's back over you. Thanks James great information as usual. So, before we dive into this, not one blockchain to rule them all so I hope you guys recognize the Lord of the Rings reference there so I do fully admit I'm a bit of a nerd. Okay, this is actually a quote from Danielle Barbosa the executive director of the hyper ledger foundation. She was saying she was saying that hyper ledger is not intended to be an overarching blockchain and other block chains are needed and welcome, and this diversity underscores the need for interoperability. So the hyper ledger, she actually made that quote at the hyper ledger foundation presentation in San Francisco on July 10. So it's a link on the left hand side, it's the source of our headline quote. It's also one of the reasons we decided to focus on interoperability so we wanted to give you guys a link to that presentation. There was a really good presentation they brought a lot of people talking about some of the different blockchains that are out there about how, especially Ethereum is still a very valid blockchain and a key key component for hyper ledger that went in depth into EVMs, which I think are a very good tool so definitely take a look at that when you get a chance, and also, especially on the topic of interoperability. The presentation on the right hand side is another really good presentation that specifically delves into one of the tools that you can use for interoperability connecting public and private blockchains. And if you've been following our previous presentations and the proof of concepts that we've been talking about and actually executed, you'll know that we did use a hyper ledger firefly in those POC. And I personally highly recommend it. It's a great tool and aids in the establishment and maintenance of blockchain so we provided a link for that at the bottom as well so definitely highly encourage the use of hyper ledger firefly. Okay, we talked about the proliferation of blockchain so let's go through some of the blockchains that are currently being used within the mortgage industry, and some of these specific applications. Keep in mind that this list is not comprehensive, but it's as complete of an inventory as I've been able to compile and it includes both public and private blockchain. And I did try to exclude those that were used exclusively or primarily for crypto so the one blockchain that James mentioned on ripple that one's not on here that was relatively recent so if there are people on the call that have used blockchain application within mortgage industry just general financial services that you want to call out that you think ought to be on this list by all means definitely let us know. So with that, let's just dive right into it. The very first one provenance they're like the 800 pound gorilla in the mortgage industry. It's a decentralized public blockchain built on the Cosmos ecosystem with Cosmos SDKs. The architecture of the blockchain was designed intentionally to meet the specific and unique requirements of the regulated financial services industry specifically mortgage provenance is used by figure for loan origination equity management private fund services, banking and payments. The next item redwood trust and liquid mortgage place all their loans in an SEMP 2020 securitization on a blockchain test environment on provenance. And they did a fantastic white paper on this where they talked about saving I believe is about 100 basis points and securitization costs by using blockchain and those primarily just eliminating a lot of the multiple audits that the securitization are. The poll consisted about 338 loans and an approximate principal value of 294 million. This took place in December of 2020. Another company that uses provenance and again another major player within mortgage is Sage and there are fintech software mortgage and servicing company they service a lot of the top banks and lenders within the US. They partnered with bigger to accelerate bigger transformative blockchain usage so those three companies bigger redwood trust agent, big proponents of provenance provenance is a great blockchain. And one of the things I wanted to mention on here is provenance did set up a fund I forgot how much it was I think it's about 25 or 50 million if someone in the chat knows where they would give a grant to people that were interested in developing on the provenance blockchain I think that was a fantastic step that to help propagate the you the use of provenance so if you're curious about that let me know we can give you the information. If you're looking for some funds for development for test development within blockchain and the mortgage industry and there's that red from the provenance foundation. And Marvin actually I just looked it up and I found the grant program for provenance and I dropped the link into chat. Awesome. Thank you James. Okay, the other blockchain that is used wide widely throughout the mortgage industry is Ethereum, if they're in one of the most widely used block chains in general. So, I've listed some of the applications that use blockchain and that use the Ethereum blockchain and again by all means this is not comprehensive but let me just give you some information on the ones that I have listed. Ave, they really do need to tell people how to pronounce some of these names but Ave is a decentralized non custodial liquidity protocol where users can participate as depositors or borrowers, and the depositors provide liquidity to the market and they have a massive income while borrowers are able to borrow in an over over collateralized or under collateralized fashion. So, a really interesting tool, a little crypto focus but I think a good tool compound another Ethereum project the focus is on allowing borrowers to take out loans and lenders to provide loans by locking their assets into the protocol. So, maker Dow, this enables the generation of the AI day, I think the world's what they call quote unquote world's first unbiased currency, and it's built on the Ethereum blockchain, and it's a decentralized stable coin so I think this is allowing the same you were talking about James as ripple. And then the next item BX DY another one that's built over Ethereum specifically on smart contracts, and it uses start zero knowledge roll up offering crypto margin trade. So, if you have a really high risk profile. And I emphasize really high risk profile and you want to trade on crypto margin. Well, there you go. So, hope you have a lot of cash. Okay, the other item the last one on this list is fulcrum. Fulcrum is a DeFi platform that allows users to borrow and lend E, and ERC 20 token so similar to D DY DX. And remember that leveraging that we talked about in DX DY that I just alluded to. Yes, it's kind of like that, but the big difference that fulcrum stress is when you have value, it's tokenize. Frankly, I'm, I don't fully understand these two items I really do have to take a look at it. If there are people out there that have actually been using these for margin trading or other purposes, definitely let us know. I think it's a real interesting tool. I'm not sure I fit that risk profile right now I have four kids in college so okay. And, you know, Marvin to add to Ethereum I think I also picked up on the first video link that you showed for Hyperledger Ethereum and the future of enterprise blockchain. And one told me from spunk talked about Bezu, and how Bezu is built on Ethereum and the reason I bring that up is their first attempt was in developing the quorum platform, which was in conjunction with JP Morgan. And that's one of the reasons that we chose Hyperledger. They have so many of these tools, Bezu being one of them that provides that interoperability with Ethereum. And there are other tools that do provide that linkage with Ethereum as well so again I really do need to give a recommendation for Hyperledger because that they're not siloed and they're not as focused on Hyperledger they do try to keep it open source so I definitely appreciate that perspective. And speaking of Hyperledger last week we had it was, I'm trying to find the name here. Sanjay Kumar Nishant the COO from Intane. That's a tool that we saw last month they demoed their solution, which is a blockchain enabled platform for structured finance. And it's going to be those types of specialized finance deals that I think are really going to stand out with these items on the right hand column. So first, Sunwesh Mortgage. I'll definitely have more to say about Sunwesh Mortgage later on in the presentation. I put, I created a category called unknown because the items here I'm not quite sure what blockchain platform they use. I have spoken with Havan the CEO of Sunwesh they have a fantastic tool set their blockchain and AI enabled platform, which was called Morgan was rebranded to be Angel AI. And I saw a demo of it it's a fantastic tool guys haven't seen it definitely go out there and take a look at it. I'm not quite sure what blockchain they use I think they do keep that relatively close to their best, but they have some really interesting technology. One of the things that I want to point about Sunwesh is their true token, true, which stands for thoroughly approved and underwritten approval is a token, which is based on a conditional guarantee. So if you go through the origination process with Sunwesh, and they approve your loan you're granted a token, a true token, which you then can apply to buying a house so you can use that in lieu of an offered letter and they say it provides a lot more protection than an offer letter. And if the parameters of that approval chain, Sunwesh says they will stand by that approval. I'm not quite sure what exactly that means but that's a pretty bold statement highly encourage you guys to take a look at that. Okay, our Renneri solutions. Renneri is a company that we actually had on on one of our mortgage subgroups several months ago, back then they specifically said they're using hyperledger fabric. They may be changing. I don't have all the intelligence on this so I put them in the unknown column, but they demoed a servicing solution, which was, which they were still in the process of building, but it had a lot of strong components so highly encourage you guys to take a look at that one as well. The next two items I think are in the same vein as in pain. What we also saw is, it uses tokenization of alternative assets, specifically commercial loans trade receivables and inventory. So, one to take a look at in Venom is another tokenization solution specifically commercial real estate, they say that they call it digital data solutions for private market assets. So those are two really good ones. Again, I would put them in the same vein as in pain, but I'm not quite sure what blockchain they use. So those are all the ones that I've identified. Again, this is not Comprehensive. I'm sure there are other blockchain solutions out there. I did want to list some of the other blockchain Bitcoin quarter form. There are in hundreds, literally hundreds of other blockchains out there, but those are the biggest ones, at least relative to our industry to more. Let me pause there and see if there are any questions or just to give myself a breather before we go on to the next slide. Okay. So, one, one of the things that I also wanted to talk about was the advantages of having interoperability in obviously the ability to share data across multiple blockchains that improves transparency and reduces delays. Interoperability allows for DAPs for decentralized applications that can access multiple blockchains simultaneously. Interoperable applications and smart contracts, developers can leverage the strengths of different networks without being limited to a single platform capabilities. They can also harness or leverage a wider range of resources and functionality. Interoperability fosters innovation by promoting interoperable applications and smart contracts. Another point that I wanted to bring out is increased transaction throughput. And one of the most consistent criticisms that I hear and I think we all hear about blockchain is that TPS transaction per second so interoperability can potentially improve transaction output. And I think that that's something that some people say doesn't make sense and we'll get into that later on in the deck but these are some of the advantages of interoperability. The other ability to do atomic swap so peer to peer trading mechanisms used for transferring crypto currencies across different blockchain, that's what atomic swaps up. So cross chain technology interoperability allows atomic swaps. And we know that those are really, really difficult to execute. So the more interoperability have the easier it is to accomplish atomic swaps, and then smart change, which allow you to seamlessly interact with other chains in the ecosystem. So I was going through that pretty quickly, there's a lot of complexity within all this. And if it's something that you guys are interested in diving down into a lot further, we definitely can and we can talk about that towards the end of this presentation. Okay, how to achieve interoperability. There's a myriad of ways to achieve interoperability. And I've listed some of these down here. I'm not going to go into all of these because there's a lot of technical complexity to each of these. I'm just going to go over a couple of them. Sidechain separate blockchains that are linked to to the main chain. There are several companies out there that allow for that facilitates sidechains I think chain link is one of them. There are a couple others. I mean, I'm honestly, I'm not sure if I'm a big believer in notary schemes. Those are third parties that manage the lack of trust between the two parties. I'm not sure if this is smart contract given automated. I was trying to look for an actual example of a notary scheme, or a notary solution. I wasn't able to find one so I'm not sure if this is one of those really ephemeral solutions that people think hey let's try and do this but never actually do it. So that's one oracles. These are third parties that provide validation and information for for blockchains they bridge the information gap between on chain and off chain settings. There are quite a few companies that do this blockchain routers. I'm not going to go over a lot of these but I did want to drop down to industrial solution in polka dot is I think a a really good solution. It's one that's been out there for a while polka dot is a what they're calling a layer zero protocol at the center of the ecosystem is the relay chain of polka dot blockchain, and it's surrounded by sidechains in the polka dot ecosystem that this is used by quite a few different solutions already. So it's one that's worth talking about. I already talked about chain link as a potential sidechain so those are quite a few of the solutions that are out there. So I know that there's some chats going on and I just did want to see if there are any questions about this. Actually, you're good Marvin people were just inquiring about some of the white paper stuff so we put some links into the chat forum. Okay, great, great. Thank you. Yeah, definitely if you guys have questions or would like some more information in that that's really the purpose of our meeting it's to educate. Okay, we talked about the advantages of interoperability and I want to point out that they're really two distinct camps when it comes to enter off interoperability. The first camp believes that interoperability leads to a whole greater than the sum of the parts. That is that the synergies obtained exceed the weaknesses associated with each part. The second believes that the whole is only as strong as its weakest link and that's really what's underscored within each slide. And it in an interoperability model, each blockchain ledger has a different cross model, and you're transferring information from one ledger to another. So that the less reliable ledger, send the information to the more reliable ledger can leave the more reliable ledger open to manipulation. If you're connecting to and I'm trying to simplify it if you're connecting to a blockchain this week, you will assume the weakness of that blockchain and this is one of the biggest concerns within information security circles. When you let another party into your environment and they're not as secure as you are, you are open to that security weakness so that that's really what that first bullet is meant to convey. And I'm sure all the information security people are nodding their head saying yep, that that's exactly the risk here. And I wonder to call out that in 2022, there was a security breach in the Ronin network that was essentially an occurrence of what we just talked about Ronin was the sidechain developed for the popular game Axie infinity hackers exploited a vulnerability in the networks bridge contract and there were the loss of 625 million in assets. So, this is definitely something to be aware of, and just the last point on this, when different rock blockchains interact the security of the entire system is only as strong as its weakest link. So, going back to the point that I mentioned at first that that's really just at the point of the second camp, where if you connect to another blockchain and it's weak, you be you weaken yourself. So, that's all I wanted to say about that let's go on to the next slide. Oh, I burned through all the interoperability stuff really quickly. And I want to give people a chance to take a look at that to digest it and while you're taking a look at that. I wanted to shift to our September presentation. And as I mentioned earlier, Pavan Ardwal, the CEO of Sun West Mortgage, he is actually going to be our speaker for the September mortgage subgroup. He's going to talk about their solution. I've spoken with Pavan several times. He is a dynamic speaker. I'm really impressed by him. So, I highly encourage you guys to join that session and listen to what he has to say and take a look at his solution I think you guys would be very impressed. I'm probably falling into the category of fanboy of Pavan, but he's a really good guy and I like him as well. I also wanted to share with you so you saw the invitation for our old format. I mentioned earlier we wanted to share the new hyper ledger logo and color schema this is what that invitation and would look like and this is what we're going to be sending out within the next day or so announcing Pavan's participation in September. So, they went from circles to is that a hexagon pentagon, I think it's a hexagon, but I really like their new look. One of the things that I did want to mention, I know that I think today is just a short amount of topics is, we are going to be sending out a survey to get information on future topics. One of the questions that we're considering sending out is, do we do more sessions on AI and blockchain, or do we do a summary and move on to other topics. Are you guys interested in more technical information, I know about a year or so ago we did a couple of those where we showed you some of the POCs that we did some of the errors that we experienced. So, if you guys do have feedback on that we can include that in our survey if there are specific questions that you guys would like us to include by all means so we'll be sending that survey out within the next week or so we'll have the survey out for probably a month, just to get as much input because we do want this to be as educational as possible and to address the needs and requirements of the community. Let me pause there James was there anything you wanted to add to the survey or any other topics. You know you know as Marvin mentioned earlier these sessions are really all about education. It's about us finding information to share with the community to expand out so it honestly this is really all about the community and what are they most interested in learning about so definitely looking forward to us getting the survey out and gather enough results to see how we can be fine tuning these sessions Yep, yep, absolutely. Also, if there are specific products that you guys would like to see. As I mentioned, Pavan is going to go through his product it's called Angel AI. If we can get someone from figure out here I'd love for them to demo their products since as I mentioned they are one of the larger players in the blockchain mortgage industry market, and there are other solutions out there. But people several people have reached out to me saying gay, we want to talk about this product so we'll have some of those heat up for the latter portion of the year and for 2024. Hey, Marvin Mark was asking in the chat to. It looks like September 8 actually a Friday it might be the 14th, which is the second Thursday in September, which is when we normally do the presentation. You know what, you are right. It is September 14. My apologies for that date mix up we're going to redo that and make sure we put in the right date before we send out the announcement great catch mark. And now I need to reach out to Pavan make sure I sent him September 14. I did not have him drop on on the night. So, any other questions or comments I think this has just been a short presentation for this month, but definitely open to any other suggestions or comments. Okay guys, I if there are no other comments, I definitely want to thank you guys for participating. Interoperability is a very big topic and I know I burned through that pretty quickly so if you guys have questions or comments on that let you know, reach out to me directly or reach out to us through the hyper ledger. And this recording will become available on our wiki within the next day or so. Thank you everyone. Thank you very much. Have a great day.