2. Oracle FLEXCUBE Blockchain Adapter

Oracle FLEXCUBE Blockchain Adapter enables FLEXCUBE to interface to blockchain systems facilitating easy transformation of information between traditional applications and blockchain datasets. You can use this adapter with any version of FLEXCUBE and information to be transformed can be configured at the Module level of FLEXCUBE. Blockchain transactions, generated from or impacting the core banking system, can be queried and viewed from FLEXCUBE itself. The adapter allows transformation and processing of information, between FLEXCUBE and blockchain systems, with minimal human intervention thereby improving process efficiency, reducing risks and enhancing straight through processing. The adapter can be used not only to interface FLEXCUBE to blockchain systems but also any other similar third party applications to interface to blockchain systems.

A blockchain is an append only distributed data store/log, in a peer to peer network, where un-trusted parties come to a consensus on the order of data sets (financial or non-financial data), based on previously agreed upon rules. Block chains can be classified, as public or private and permissioned or unpermissioned, based on the read and write access respectively allowed to the participating entities. Block chains allow an immutable record of transaction log, when multiple parties need shared control of data, without the need to depend on a central trusted authority. Smart contracts allow business logic to be triggered and processed based on pre-defined events mutually agreed upon by the contracting parties.

This chapter contains the following sections:

2.1 Scope

Oracle FLEXCUBE Blockchain technology allows you to:

2.2 Prerequisites

The following are the prerequisites for the interface:

Refer the ‘Oracle FLEXCUBE Universal Banking Installation’ manual to set up Oracle FLEXCUBE Universal Banking Application.

2.3 Integration Architecture

The following diagram provides information on technical architecture for Oracle’s Blockchain based solution:

2.4 Integration Process

In this section we will take a use case to describe Oracle FLEXCUBE Blockchain technology.

This section contains the following topics:

2.4.1 Business Process Workflow for Buyer’s Credit

The following image represents the overall task flow using blockchain for liquidation of import bill under LC using Buyer’s Credit :

The following image represents the loan repayment task flow:

2.4.2 Detailed Use Case for Buyer’s Credit Solution using Blockchain

This section describes buyer’s credit solution using blockchain with a Use Case where Bank A is the Importer's Bank and Buyer's Credit is offered by Bank B or C at a different country. The requirement starts from the stage when Bank A which had received quote for Buyer's Credit and is accepting the offer from either Bank B or C for an Import Bill under LC received by them. Importer’s Bank Accepting Buyer’s Credit Offer

When the Importer's Bank (Bank A) accepts the offer for Buyer's Credit provided by Bank B/C, the Importer's Bank creates a dummy Import Bill which will have all the data of original Bill under LC like Shipment details and Goods details. In addition to these data, the Bill contract captures the following important details: Authorization of Buyer’s Credit Bill Contract

The following actions will be performed by default if Buyer's Credit Bill Contract in Bank A is authorized: Receiving Data at Lending Bank

Bank B/C is notified about the smart contract through the blockchain network. When the notification is received: Processing on Receipt of Loan Disbursement Confirmation Liquidating Buyer’s Credit Bill Contract

System will send a reminder to the importer for repayment of Buyer's Credit loan two days before the due date. Data Receipt at Lending Bank

Once the liquidation of Buyer's Credit contract is authorized in Bank A and status in blockchain, Smart Contract is updated as repayment, a message will be triggered to Bank B/C through blockchain.