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IBM Confidential: © 2016 IBM Corporation
Blockchain: Point of View
Luca Comparini
IBM France – Blockchain Leader
IBM Confidential: © 2016 IBM Corporation
A look to the past
IBM Confidential: © 2016 IBM Corporation 3
The genesis block of business ledgers
(double entry book-keeping)
« Tractatus XI particularis de
computibus et scripturis »
Luca Pacioli (1494)
Ledger: the system of record for a business
(Business will have multiple ledgers for multiple
business networks in which they participate.)
Transaction: an asset transfer onto or off the ledger
IBM Confidential: © 2016 IBM Corporation 4
The genesis block of transactional business machines
IBM System 360, 1965 IBM Hard Disk, 1956 (5 MB)
IBM Confidential: © 2016 IBM Corporation 5
The genesis block of International Business Machines
IBM Cheese-Cutter, 1920IBM Scale, 1911 IBM Time-Stamp
(Proof of Existence Machine)
IBM Confidential: © 2016 IBM Corporation 6
The genesis block of shared distributed ledgers
Satoshi Nakamoto (?)
Bitcoin P2P e-cash paper
Satoshi Nakamoto
Sat, 01 Nov 2008 16:16:33 -0700
I've been working on a new electronic cash system that's fully
peer-to-peer, with no trusted third party.
The paper is available at:
http://www.bitcoin.org/bitcoin.pdf
The main properties:
- Double-spending is prevented with a peer-to-peer network.
- No mint or other trusted parties.
- Participants can be anonymous.
- New coins are made from Hashcash style proof-of-work.
- The proof-of-work for new coin generation also powers the
network to prevent double-spending.
IBM Confidential: © 2016 IBM Corporation 7
The genesis block of Blockchain and IoT
Supply Chain
Smart Object
Retailer
January 2015
Project ADEPT
IBM + Samsung
Smart Contract
Digitalized self-executable contract
with embedded business logic
https://www.youtube.com/watch?v=U1XOPIqyP7A
IBM Confidential: © 2016 IBM Corporation 8
http://www-935.ibm.com/services/us/gbs/thoughtleadership/internetofthings/
Device Democracy
IBM Confidential: © 2016 IBM Corporation
IBM Perspective
IBM Confidential: © 2016 IBM Corporation 10
Same ingredients, different qualities, different Use Cases
Based on:
- Swanson,T. (2015). Consensus as a service:a brief report on the emergence of permissioned,distributed ledger systems.
- Brown, R. G. (2015) Towards an unified model for replicated,shared ledgers.
PermissionedPermission-less
Design points:
- Public network with no 3rd parties
- Trustless environment
- “Censorship-Resistance”
Consensus:
- Expensive, slow
- Incentives intrinsic to platform
Design points:
- Private / Semi-private network
- Actors known / knowable
- Regulated Industries
Consensus:
- Protocol assumes known actors
- Incentives extrinsic to platform
IBM focus is here
IBM Confidential: © 2016 IBM Corporation 11
Other challenges to make Blockchain real for Business
Privacy & Confidentiality
IBM Confidential: © 2016 IBM Corporation 12
Other challenges to make Blockchain real for Business
Governance…
IBM Confidential: © 2016 IBM Corporation 13
Make Blockchain real for Business
Confidential
permission
control
Private
un-linkable identity
Shared Ledger
single source of
truth
Secure
tamper proof
(extra security)
Audit-able
prove identity &
ownership
Viable
100+ year
architecture
Smart Contracts
business logic
Digital assets
Record depository
Consensus
Modular protocol
Permissioned
Participants
Identity
IBM Confidential: © 2016 IBM Corporation 14
IBM Confidential: © 2016 IBM Corporation 15
Hyperledger experience at BlockFest 1.0
IBM Confidential: © 2016 IBM Corporation 16
Hyperledger experience at BlockFest 1.0
IBM Confidential: © 2016 IBM Corporation 17
Supply Chain Financing – Demo Context
About IGF :
§ IBM Global Finance (IGF), the internal Bank of IBM
§ Lends $44bn a year to 4000+ partners to pay suppliers (IBM clients or not)
§ 2,9 million invoices
§ 25,000 disputes for $100 million
§ 44 days to resolve dispute
Shadowchain employed for IGF…
§ Not replacing the current system with a full Blockchain system
§ The technology is only used to enrich current IGF lending system
"No, I'm not suggesting the moonshot of immediately redoing our global financing, lending system on a blockchain. But we have
now employed a shadow chain: my definition of shadowchain is it's not replacing the primary business process, it's being used to
enrich that business process with a useful function that it currently doesn't do.”
Source: IBM blockchain leader Jerry Cuomo
IBM Confidential: © 2016 IBM Corporation
Thanks ! Questions ?

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IBM Blockchain PoV: Hyperledger genesis block

  • 1. IBM Confidential: © 2016 IBM Corporation Blockchain: Point of View Luca Comparini IBM France – Blockchain Leader
  • 2. IBM Confidential: © 2016 IBM Corporation A look to the past
  • 3. IBM Confidential: © 2016 IBM Corporation 3 The genesis block of business ledgers (double entry book-keeping) « Tractatus XI particularis de computibus et scripturis » Luca Pacioli (1494) Ledger: the system of record for a business (Business will have multiple ledgers for multiple business networks in which they participate.) Transaction: an asset transfer onto or off the ledger
  • 4. IBM Confidential: © 2016 IBM Corporation 4 The genesis block of transactional business machines IBM System 360, 1965 IBM Hard Disk, 1956 (5 MB)
  • 5. IBM Confidential: © 2016 IBM Corporation 5 The genesis block of International Business Machines IBM Cheese-Cutter, 1920IBM Scale, 1911 IBM Time-Stamp (Proof of Existence Machine)
  • 6. IBM Confidential: © 2016 IBM Corporation 6 The genesis block of shared distributed ledgers Satoshi Nakamoto (?) Bitcoin P2P e-cash paper Satoshi Nakamoto Sat, 01 Nov 2008 16:16:33 -0700 I've been working on a new electronic cash system that's fully peer-to-peer, with no trusted third party. The paper is available at: http://www.bitcoin.org/bitcoin.pdf The main properties: - Double-spending is prevented with a peer-to-peer network. - No mint or other trusted parties. - Participants can be anonymous. - New coins are made from Hashcash style proof-of-work. - The proof-of-work for new coin generation also powers the network to prevent double-spending.
  • 7. IBM Confidential: © 2016 IBM Corporation 7 The genesis block of Blockchain and IoT Supply Chain Smart Object Retailer January 2015 Project ADEPT IBM + Samsung Smart Contract Digitalized self-executable contract with embedded business logic https://www.youtube.com/watch?v=U1XOPIqyP7A
  • 8. IBM Confidential: © 2016 IBM Corporation 8 http://www-935.ibm.com/services/us/gbs/thoughtleadership/internetofthings/ Device Democracy
  • 9. IBM Confidential: © 2016 IBM Corporation IBM Perspective
  • 10. IBM Confidential: © 2016 IBM Corporation 10 Same ingredients, different qualities, different Use Cases Based on: - Swanson,T. (2015). Consensus as a service:a brief report on the emergence of permissioned,distributed ledger systems. - Brown, R. G. (2015) Towards an unified model for replicated,shared ledgers. PermissionedPermission-less Design points: - Public network with no 3rd parties - Trustless environment - “Censorship-Resistance” Consensus: - Expensive, slow - Incentives intrinsic to platform Design points: - Private / Semi-private network - Actors known / knowable - Regulated Industries Consensus: - Protocol assumes known actors - Incentives extrinsic to platform IBM focus is here
  • 11. IBM Confidential: © 2016 IBM Corporation 11 Other challenges to make Blockchain real for Business Privacy & Confidentiality
  • 12. IBM Confidential: © 2016 IBM Corporation 12 Other challenges to make Blockchain real for Business Governance…
  • 13. IBM Confidential: © 2016 IBM Corporation 13 Make Blockchain real for Business Confidential permission control Private un-linkable identity Shared Ledger single source of truth Secure tamper proof (extra security) Audit-able prove identity & ownership Viable 100+ year architecture Smart Contracts business logic Digital assets Record depository Consensus Modular protocol Permissioned Participants Identity
  • 14. IBM Confidential: © 2016 IBM Corporation 14
  • 15. IBM Confidential: © 2016 IBM Corporation 15 Hyperledger experience at BlockFest 1.0
  • 16. IBM Confidential: © 2016 IBM Corporation 16 Hyperledger experience at BlockFest 1.0
  • 17. IBM Confidential: © 2016 IBM Corporation 17 Supply Chain Financing – Demo Context About IGF : § IBM Global Finance (IGF), the internal Bank of IBM § Lends $44bn a year to 4000+ partners to pay suppliers (IBM clients or not) § 2,9 million invoices § 25,000 disputes for $100 million § 44 days to resolve dispute Shadowchain employed for IGF… § Not replacing the current system with a full Blockchain system § The technology is only used to enrich current IGF lending system "No, I'm not suggesting the moonshot of immediately redoing our global financing, lending system on a blockchain. But we have now employed a shadow chain: my definition of shadowchain is it's not replacing the primary business process, it's being used to enrich that business process with a useful function that it currently doesn't do.” Source: IBM blockchain leader Jerry Cuomo
  • 18. IBM Confidential: © 2016 IBM Corporation Thanks ! Questions ?