Running head: CHAIN REFLECTION PAPER

Chain Reflection Paper

Sherine Mitto
GR 501: Organization Behavior and Development
International College of the Cayman Islands

CHAIN REFLECTION PAPER

On 9th November 2016, I was introduced to a relatively new and innovative software
which enables financial assets to be transferred or issued between parties instantly and directly
through a digitalized medium platform called Blockchain (J. Carlson, personal communication,
November 9, 2016). This new innovation was developed by a company called Chain which was
established in 2014 with the aim of transforming the movement of financial assets. For such a
young tech start-up company, it was interesting to learn that the company raised a capital of
approximately forty million within three years and had already expanded its business by opening
New York branch office (J. Carlson, personal communication, November 9, 2016). Showing that
knowledge, skills, and abilities of Chain's staff created an effective team who all share the goals
as the CEO (Robbins & Judge, 2014, p. 153). But after a long day of visiting several
professionals within the field of technology, I was not surprised with Chains success and
talented early adapter of employees. As noted by Robbins and Judge (2014), victory will go to
the company that dedicates their time and resources of mastering the art of change and
innovation (Robbins & Judge, 2014, p.9).
The presenter, Jill Carlson, explained that Chain developed a virtual network database
that secures customer assets such as money, land titles or diamonds in a digital safety deposit box
which can only by unlocked by using a cryptographic private key (J. Carlson, personal
communication, November 9, 2016). She further explained that Blockchain was just a futuristic
way of advanced scalability, storage systems and enhanced privacy of transactions as each block
of information was chained or linked together to a digital signature to guarantee security. Simply
put, Blockchain database is a digital spreadsheet or virtual ledger used to record customers
transactions as the customers have full access and control of their funds or other assets through a
digital currency known as the Bitcoin. And by the click of a button, customers are able to

CHAIN REFLECTION PAPER

conduct a business transaction in relation to the exchange of monetary funds or assets (J.
Carlson, personal communication, November 9, 2016). Blockchains software is such a
promising tool that many companies like State Street, MUFG, Visa, Nasdaq, Citigroup, Fiserv
and Capital One have already collaborated to launch their software network, indicating how
advanced technology businesses in the United Stated are becoming. This collaborative effort
showed how vital it is to have work teams as the success of Chain leaned on positive
coordination between its staff and outside institutions (Robbins & Judge, 2014, p. 149).
This presentation was mind-blowing as it showed me the next generation of asset
movement and security of data movement. It was interesting to learn about Chains business
objectives as it will change the game of the financial industry as verification, clearing and
reconciliation of customers transactions will become redundant because its like handing a third
party physical cash without the hassle or holdup of the bank. From my experience in the banking
industry, this will change the way banks monitor and conduct internal audits on their customers
accounts as there will be no source of funds on file or a reason for the transfer transaction noted;
in addition, restructuring banks appetite of risk management and suspicious activity reports.
And looking at it from a regulator standpoint, the Cayman Islands Monetary Authority
(CIMA or Authority) would be so unwilling and reluctant to approve such business strategy
for a bank as we are a conservative institution, but mainly that it would be a difficult to identify
money laundering and terrorist financing activities. As a Banking Analyst, blockchain brings
many questions in relation to cyber security and compliance because at present the Authority
does not have any policies or statement of guidance on such banking activity which is very
concerning. As America is ten steps ahead with its innovations and technologies, the Cayman
Islands better keep up because we all know the implications of being a laggard, and if the

CHAIN REFLECTION PAPER

Cayman Islands cares to remain the fifth largest banking center in the world, CIMA will have to
do it research and find solutions to work with the changing society. On another note, from the
stunning layout of the headquarters and the welcoming face of its staff, it was evident this
company's initiative was one to be reckoned with.

CHAIN REFLECTION PAPER

5
References

Robbins, S. & Judge, T. (2014). Essentials of organizational behavior. Boston: Pearson.

CHAIN REFLECTION PAPER

Appendix I: A photo of the presenter, Jill Carlson.

Source: Photo was taken by Sherine Mitto