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© 2016 IBM Corporation
Making Blockchain Real for
Business



Explained
1
V2.09 19 Jan 16
https://ibm.box.com/BlockExp
© 2016 IBM Corporation 2
Contents
What
Why
How
. . are Blockchain technologies ?
. . is it relevant for our business?
. . can IBM help us apply Blockchain?
© 2016 IBM Corporation 3
Business Networks, Markets & Wealth
•  Business Networks benefit from connectivity
–  Connected customers, suppliers, banks,
partners 
–  Cross geography & regulatory boundary
•  Wealth is generated by the flow of goods &
services across business network
•  Markets are central to this process:
–  Public (fruit market, car auction), or
–  Private (supply chain financing, bonds)
What?
© 2016 IBM Corporation 4
Transferring Assets, building Value
•  Anything that is capable of being owned or
controlled to produce value, is an asset  
•  Two fundamental types of asset
–  Tangible, e.g. a house
–  Intangible e.g. a mortgage 
•  Intangible assets subdivide
–  Financial, e.g. bond
–  Intellectual e.g. patents
–  Digital e.g. music
•  Cash is also an asset
–  Has property of anonymity 
What?

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(May 11th 2019) Data Driven Innovation 2019. Dipartimento di ingegneria, Università degli Studi Roma Tre.

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© 2016 IBM Corporation 5
Ledgers are Important
•  Ledger [1] is THE system of
record for a business
–  records asset transfer between
participants.
•  Business will have multiple
ledgers for multiple business
networks in which they
participate.
[1] The principal book (or computer file) for recording and
totaling financial transactions by account type, with debits and
credits in separate columns and a beginning monetary
balance and ending monetary balance for each account.
What?
© 2016 IBM Corporation 6
Participants, Transactions & Contracts
•  Participants - members of a business
network
–  Customer, Supplier, Government, Regulator
–  Usually resides in an organization
–  Has specific identities and roles
•  Transaction - an asset transfer
–  John gives a car to Anthony (simple)
•  Contract - conditions for transaction to
occur
–  If Anthony pays John money, then car passes
from John to Anthony (simple)
–  If car won't start, funds do not pass to John
(as decided by third party arbitrator) (more
complex)
What?
© 2016 IBM Corporation 7
Introducing Blockchain
A shared ledger technology allowing any participant in
the business network to see THE system of record
(ledger)

What?
© 2016 IBM Corporation 8
Problem - Difficult to monitor asset ownership and transfers in a trusted 
business network


Counter-party
records
Bank records
Party C’s Records
 Auditor records
Party B Records
Party A’s Records
API-integrations
Incident
What?
Inefficient, expensive, vulnerable
Ledger
Ledger
Ledger
Ledger
Ledger
Ledger

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Blockchain is a shared, replicated ledger technology that can open up business networks by reducing costs, improving efficiencies, and increasing accessibility. It addresses challenges across industries by providing a shared system of record for transactions. The Linux Foundation's Hyperledger project is developing open-source, shared ledger technology standards through collaboration. The blockchain landscape includes identity management, platforms, security, payments, smart contracts, consulting services, industry consortiums, and applications in sectors like finance, supply chain, and government.

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Blockchain and Accounting-Auditing v1
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This document discusses Bitcoin, blockchains, and their applications. It begins with an introduction to Bitcoin as a digital peer-to-peer currency and outlines some key facts about Bitcoin units and transactions. Alternative cryptocurrencies and the building blocks that make blockchains secure are also examined. The document then explores the benefits of blockchain technology and examples of blockchain usage beyond cryptocurrency, such as for supply chain management and digital identity. It concludes by considering opportunities for further blockchain deployment.

© 2016 IBM Corporation 9
Solution – a permissioned, replicated, shared ledger
Counter-party
records
Bank records
Party C’s Records
 Auditor records
Party B Records
Party A’s Records
What?
Consensus, provenance, immutability, finality
Ledger
Ledger
Ledger
Ledger
Ledger
Ledger
Participants have
multiple shared
ledgers
NOTE :
Participants
same as before
© 2016 IBM Corporation 10
Blockchain underpins Bitcoin . . .
1.  is unregulated, censorship-resistant
shadow currency
2. Blockchain ensures “cash like” coin passing 
•  unique,
•  immutable,
•  final
3. Bitcoin is the first Blockchain application
•  Blockchain is not
4. Digital currencies different from cyptocurrency
What?
© 2016 IBM Corporation 11
Blockchain for Business
Smart
Contract
Privacy
Shared
Ledger
Validation
Ensuring appropriate
visibility; transactions are
secure, authenticated &
verifiable
Business terms embedded
in transaction database &
executed with transactions
All parties agree to
network verified
transaction
Append-only distributed
system of record shared
across business network
Broader participation, lower cost, increased efficiency
What?
© 2016 IBM Corporation 12
Shared Ledger
•  Records all transactions across
business network
•  Shared between participants
•  Participants have own copy through
replication
•  Permissioned, so participants see
only appropriate transactions
•  THE shared system of record
What?

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11:FS whitepaper on Billon
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A whitepaper presenting architecture analysis and use-case strategies for Billon, prepared by 11:FS, a leading UK fintech consultancy

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Modeling Blockchain Applications v1.02
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Modeling is important for translating business concepts into technical concepts that can be implemented on a blockchain. Key elements to model include assets, contracts, transactions, the business network, and participants. Assets correspond to real-world items and are modeled as data structures. Contracts define the rules and algorithms for modifying asset states. Transactions invoke contracts and are recorded on the blockchain. The business network and participants are modeled as the technical network and identities. Modeling provides a bridge between business and technical views to enable blockchain solutions.

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© 2016 IBM Corporation 13
Smart Contract
•  Business rules implied by the
contract . . 
•  . . embedded in the Blockchain & 
•  executed with the transaction
•  Verifiable, signed
•  Encoded in programming language
•  Example:
–  Defines contractual conditions under
which corporate Bond transfer
occurs
What?
© 2016 IBM Corporation 14
Privacy
•  Ledger is shared, but participants require
privacy
•  Participants need:
–  Transactions to be private
–  Identity not linked to a transaction
•  Transactions need to be authenticated
•  Cryptography central to these processes
What?
© 2016 IBM Corporation 15
Validation
•  Transaction verification & commitment
•  When participants are anonymous 
–  Commitment is expensive
–  Bitcoin cryptographic mining provides verification
for anonymous participants but at significant
compute cost (proof of work)
•  When participants are known & trusted 
–  Commitment possible at low cost
•  Multiple alternatives
–  proof of stake where fraudulent transactions cost
validators (e.g. transaction bond)
–  multi-signature (e.g. 3 out of 5 participants agree)
•  Industrial Blockchain needs “pluggable”
consensus
What?
© 2016 IBM Corporation 16
Contents
What
Why
How
. . are Blockchain technologies ?
. . is it relevant for our business?
. . can IBM help us apply Blockchain?

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© 2016 IBM Corporation 17
Industrial Blockchain Benefits
Reduce costs and complexity


Improve discoverability
Why?
Trusted recordkeeping



Shared trusted processes
Blockchain – not for all . . .
NEGATIVE Indicators
1.  Need high performance (millisecond) transactions
2.  Small organization (no business network)
3.  Looking for a database replacement
4.  Looking for a messaging solution
5.  Looking for transaction processing replacement
Why?
© 2016 IBM Corporation 19
Patterns for Customer Adoption
(1) INTERNAL LEDGER
•  Ledger for internal reporting, audit and
compliance, 
•  Consistent view of key business assets,
•  Provenance, immutability & finality more
important than consensus. 
•  Access to auditor and regulator
(2) CONSORTIUM SHARED LEDGER
•  Created by a small set of participants
•  share reference data between themselves
and consumers. 
•  Consistent real-time view of key information
(3) INFORMATION HUB
•  A ledger set up in a single organization 
•  Sharing of information between participants
(e.g. voting, dividend notification)
•  Assets have information, not financial value, 
•  Require provenance, immutability & finality.
(4) HIGH VALUE MARKET
•  Ledger for the transfer of high financial value
assets 
•  between many participants in a market. 
•  Requires all enterprise features of
Blockchain 
How?
© 2016 IBM Corporation 20
Use Case – Letter of Credit
What?
•  Bank handling letters of credit (LOC) wants to offer them
to a wider range of clients including startups 
•  Currently constrained by costs & the time to execute
How?
•  Blockchain provides common ledger for letters of credit
•  Allows bank and counter-parties to have the same
validated record of transaction and fulfillment
Benefits
•  Increased trust
•  Increase speed of execution (less than 1 day)
•  Vastly reduced cost
Why?

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© 2016 IBM Corporation 21
Use Case – Corporate Debt (or Bond)
What?
•  Bank holding a corporate debt would like to 
–  pay vendors quickly for transactions validated by the client 
–  allow the corporate client to see the payment is made 
–  provide government with oversight of the process
How?
•  Blockchain provides a common ledger for recording the
corporate debt / bond, 
•  available to bank, corporate client, vendors & government.
Benefits
•  Speeds up vendor payments bigger net discounts
•  Eliminates risk and accelerates decision making
•  Owning bank can spread the cost across each market.
Why?
© 2016 IBM Corporation 22
Use Case – Business to Business Contracts
What?
•  Buyer wants efficient way of converting a purchase order
into validated, self executing contract updated to reflect
the status of the supply.  
•  Agreement must be visible to the buyer, the seller, banks,
logistics partners and other stakeholders.
How?
•  Blockchain provides a shared record of the contract
status which is updated as the contract progresses.  
•  Available to all parties to the agreement, their banks and
partners.
Benefits
1.  increased efficiency and transparency across the
supply chain.
2.  risk management improved through the near real time
update of all contracts.
Why?
© 2016 IBM Corporation 23
Use Case – Smart Refrigerator 
What?
•  Value of connected smart devices limited by
ability to interact with business systems
How?
•  Blockchain to manage automated
interactions with the external world
•  ordering and paying for food to arranging for
its own software upgrades and tracking its
warranty.  
Benefits
1.  business value from connected technology
2.  efficiencies in network and supply chains.
3.  status transparent to all network members
Why?
© 2016 IBM Corporation 24
Use Case – Open, Trusted Supply Chain
What?
•  Consumers demanding transparency on where and
how their products are made. 
•  EU requires more information about corporate
supply chains, with penalties for non-compliance. 
How?
•  Blockchain enable safe digital transfer of property
across the end to end supply chain. 
Benefits
1.  verifiable, preventing any party from altering 
2.  efficiencies through greater transparency
3.  consumers can make informed purchases
4.  governments get reliable information
Why?

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Blockchain is a shared, immutable ledger that can record transactions and track assets in business networks. It allows companies to share records and establish trust without the need for a central authority. IBM's blockchain platform uses Hyperledger Fabric to develop applications that provide benefits like reduced costs, improved traceability and data sharing between organizations. It can help industries like finance, supply chain and healthcare by creating transparency and efficiency in business processes.

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دليل المستهلكات و المستلزمات الطبية
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© 2016 IBM Corporation 25
Use Case – Aircraft Maintenance
What?
•  Provenance of each component part in complex
system hard to track
•  Manufacturer, production date, batch and even the
manufacturing machine program.
How?
•  Blockchain holds complete provenance details of each
component part
•  Accessible by each manufacturer in the production
process, the aircraft owners, maintainers and
government regulators. 
Benefits
1.  trust increased no authority "owns” provenance 
2.  improvement in system utilization 
3.  recalls "specific" rather than cross fleet
Why?
© 2016 IBM Corporation 26
Use Case – On Line Gaming
What?
•  Game player wants to trade “gold” earned in
current game for the currency or assets of another
game 
•  Use experience with the current game to put me
ahead and not have to start cold in the new game
How?
•  Blockchain holds tokens of value shared across on
line gaming platform
Benefits
•  Transparency to game player, game owners &
infrastructure providers
•  Efficiencies through elimination of intermediaries
•  Increased trust for all involved parties.
Why?
© 2016 IBM Corporation 27
Other Potential Use Cases include . . 
•  Securities
–  Post-trade settlement
–  Derivative contracts
–  Securities issuance
–  Collateral management
•  Trade Finance
–  Bill of Lading
–  Cross-currency payment
•  Syndicated Loans
•  Intra-bank settlement
•  Retail Banking
–  Cross border remittances
–  Mortgage verification
–  Mortgage contracts (smart contract)
•  Public Records
–  Real estate records 
–  Vehicle registrations
–  Business license and ownership records
Why?
© 2016 IBM Corporation 28
Contents
What
Why
How
. . are Blockchain technologies ?
. . is it relevant for our business?
. . can IBM help us apply Blockchain?

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The value of blockchain application
The value of blockchain applicationThe value of blockchain application
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The document discusses the potential value of blockchain applications and describes the structure of blockchain big data transactions. It explains that blockchain consists of three parts: a public chain for exchange, member chains for exchange, and node devices. The public chain establishes communication and maintains records, while member chains store member data and query services. Node devices connect the public and member chains. The document then discusses how blockchain could improve food traceability systems. Current systems rely on individual enterprises and lack information sharing. The chain of traceability is also not long enough. There is a lack of credibility in third parties, leading consumers and enterprises to doubt traceability data. Blockchain may help address these issues through its open and verifiable record of transactions.

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Blockchain's Smart Contracts: Driving the Next Wave of Innovation Across Manu...
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Blockchain technology has the potential to fundamentally change manufacturing supply chains by enabling trusted relationships and transactions between partners without intermediaries. Smart contracts on blockchain platforms can automate negotiations and transactions, reducing costs while increasing efficiency and agility. Early applications include smart contracts that automate procurement transactions between suppliers and buyers, and smart equipment that can automatically order replenishments. Widespread use of blockchain in manufacturing will require overcoming challenges of integrating new decentralized technologies with existing systems and evaluating technology maturity.

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Blockchain - CIO City Workshop
Blockchain - CIO City WorkshopBlockchain - CIO City Workshop
Blockchain - CIO City Workshop

The document discusses blockchain technology and its potential uses and impact. It describes blockchain as a distributed ledger that acts as a shared source of truth. It then discusses several potential uses of blockchain technology, including storing value safely in the cloud, immutability as proof, and creating new business models through disruption. The document goes on to provide examples of how blockchain could transform processes like contract signing, accounting and reporting, and global trade. It proposes that blockchain can create trust in technology by automating decision making processes. Finally, it describes how the workshop will be organized to share knowledge on blockchain and help organizations build prototypes to explore blockchain applications.

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© 2016 IBM Corporation
Hyperledger Project
29
§  Linux Foundation - announced 17th December 2015
§  New open ledger project to transform the way business
transactions are conducted around the world
§  Project members understand that an open source, collaborative
development strategy supporting multiple players in multiple
industries is required
Enable adoption of shared ledger technology at a pace and depth not
achievable by any one company or industry
How?
© 2016 IBM Corporation
Hyperledger Project Members [1]
30
[1] At 17th December 2015
How?
© 2016 IBM Corporation
Hyperledger Project – Draft Scope
31
Smart contract execution environment,
ledger data structures,
Membership services,
modular validation framework,
modular identity services,
network peer services
Application development facilities
specialized extensions,
specialized validation algorithms
integration gateway,
operations dashboard
Custom built applications for specific use
cases
App	
Layer	
Shared	
Ledger	
Value	
Added	
Systems	
In-
scope	
Out	of	
scope	
How?
© 2016 IBM Corporation 32
Engagement Model overview
1.  Discuss Blockchain
technology
2.  Explore customer business
model
3.  Show Blockchain
Application demo
1.  Understand Blockchain
concepts & elements
2.  Hands on with Blockchain
technology
3.  Standard demo customization
1.  Design Thinking workshop
to define business challenge
2.  Agile iterations incrementally
build project functionality
3.  Enterprise integration
Remote or face to face Remote or face to face Face to face
Free of charge Free of charge For fee
Conversation &
Demonstration
Proof of
Technology
First Project
How?

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How Blockchain and Smart Buildings can Reshape the Internet
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This document discusses how blockchain and smart buildings can reshape distributed cloud computing and the internet. It describes how blockchain technologies like Ethereum allow for distributed applications running on smart contracts. The iEx.ec project aims to provide a blockchain-based distributed cloud computing platform that gives applications access to computing resources like services, data, and infrastructure in a low-cost, secure, on-demand and fully distributed manner. This builds upon prior work in desktop grid computing and could make cloud computing more efficient and greener by better utilizing idle computing resources.

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Bangladesh - Identification
Bangladesh - IdentificationBangladesh - Identification
Bangladesh - Identification

This document discusses Bangladesh's Agriculture Census 2018. It provides background on previous agriculture censuses conducted in Bangladesh. Agriculture Census 2018 will cover crops, fisheries, and livestock for the first time. It aims to identify structural changes in agriculture over time and provide data for policymaking. The census will involve full enumeration and use of core and long questionnaires. It will develop sampling frames for future surveys. Outputs will include preliminary reports and reports on cropping patterns, sample census, and administration. The census expects to improve annual estimates for crops, fisheries, and livestock used in GDP calculation. Support may be provided for questionnaire preparation, training, data capturing, and report development.

methodologyidentificationbangladesh
Same resources better student outcomes - adapted webinar deck
Same resources better student outcomes -  adapted webinar deckSame resources better student outcomes -  adapted webinar deck
Same resources better student outcomes - adapted webinar deck

The document discusses how schools can improve student outcomes by strategically allocating resources. It provides examples of how two schools/districts were able to do this. District A realized 9th graders had larger class sizes and more novice teachers so they reassigned teachers to reduce 9th grade class sizes. School X found math teachers had higher loads so they revised schedules to pair students with the same teacher for multiple periods to lower individual teacher loads. Reallocating resources like this based on data can boost student achievement compared to the traditional one-size-fits-all approach of the past 50+ years.

schoolzillaeducationeducation finance
© 2016 IBM Corporation 33
Enterprise Integration
What?
•  Customer realizes full benefit of Blockchain solution by scale up, scale out and
enterprise integration
How?
•  Full range of consulting, system integration & project skills
•  Extension of Agile from Proof of Concept
•  Integration into customers existing systems and business processes
•  Metrication to prove Return on Investment 
Commercial?
•  For fee
How?
© 2016 IBM Corporation 34
Summary
1.  Blockchain is a shared, replicated ledger technology
2.  IBM supports an open standards, open source, open
governance Blockchain
3.  Blockchain can open up business networks by taking out
cost, improving efficiencies and increase accessibility
4.  Blockchain addresses an exciting and topical set of business
challenges, which cross every industry
5.  Linux Foundation Hyperledger project developing open
source, open standards shared ledger technology
6.  IBM has an easy to access, proven and incremental
engagement model giving customers the confidence to get
started NOW
©2016 IBM Corporation
Thank You!

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Making Blockchain Real for Business Explained - ibm

  • 1. © 2016 IBM Corporation Making Blockchain Real for Business
 
 Explained 1 V2.09 19 Jan 16 https://ibm.box.com/BlockExp
  • 2. © 2016 IBM Corporation 2 Contents What Why How . . are Blockchain technologies ? . . is it relevant for our business? . . can IBM help us apply Blockchain?
  • 3. © 2016 IBM Corporation 3 Business Networks, Markets & Wealth •  Business Networks benefit from connectivity –  Connected customers, suppliers, banks, partners –  Cross geography & regulatory boundary •  Wealth is generated by the flow of goods & services across business network •  Markets are central to this process: –  Public (fruit market, car auction), or –  Private (supply chain financing, bonds) What?
  • 4. © 2016 IBM Corporation 4 Transferring Assets, building Value •  Anything that is capable of being owned or controlled to produce value, is an asset   •  Two fundamental types of asset –  Tangible, e.g. a house –  Intangible e.g. a mortgage  •  Intangible assets subdivide –  Financial, e.g. bond –  Intellectual e.g. patents –  Digital e.g. music •  Cash is also an asset –  Has property of anonymity What?
  • 5. © 2016 IBM Corporation 5 Ledgers are Important •  Ledger [1] is THE system of record for a business –  records asset transfer between participants. •  Business will have multiple ledgers for multiple business networks in which they participate. [1] The principal book (or computer file) for recording and totaling financial transactions by account type, with debits and credits in separate columns and a beginning monetary balance and ending monetary balance for each account. What?
  • 6. © 2016 IBM Corporation 6 Participants, Transactions & Contracts •  Participants - members of a business network –  Customer, Supplier, Government, Regulator –  Usually resides in an organization –  Has specific identities and roles •  Transaction - an asset transfer –  John gives a car to Anthony (simple) •  Contract - conditions for transaction to occur –  If Anthony pays John money, then car passes from John to Anthony (simple) –  If car won't start, funds do not pass to John (as decided by third party arbitrator) (more complex) What?
  • 7. © 2016 IBM Corporation 7 Introducing Blockchain A shared ledger technology allowing any participant in the business network to see THE system of record (ledger) What?
  • 8. © 2016 IBM Corporation 8 Problem - Difficult to monitor asset ownership and transfers in a trusted  business network
 Counter-party records Bank records Party C’s Records Auditor records Party B Records Party A’s Records API-integrations Incident What? Inefficient, expensive, vulnerable Ledger Ledger Ledger Ledger Ledger Ledger
  • 9. © 2016 IBM Corporation 9 Solution – a permissioned, replicated, shared ledger Counter-party records Bank records Party C’s Records Auditor records Party B Records Party A’s Records What? Consensus, provenance, immutability, finality Ledger Ledger Ledger Ledger Ledger Ledger Participants have multiple shared ledgers NOTE : Participants same as before
  • 10. © 2016 IBM Corporation 10 Blockchain underpins Bitcoin . . . 1.  is unregulated, censorship-resistant shadow currency 2. Blockchain ensures “cash like” coin passing •  unique, •  immutable, •  final 3. Bitcoin is the first Blockchain application •  Blockchain is not 4. Digital currencies different from cyptocurrency What?
  • 11. © 2016 IBM Corporation 11 Blockchain for Business Smart Contract Privacy Shared Ledger Validation Ensuring appropriate visibility; transactions are secure, authenticated & verifiable Business terms embedded in transaction database & executed with transactions All parties agree to network verified transaction Append-only distributed system of record shared across business network Broader participation, lower cost, increased efficiency What?
  • 12. © 2016 IBM Corporation 12 Shared Ledger •  Records all transactions across business network •  Shared between participants •  Participants have own copy through replication •  Permissioned, so participants see only appropriate transactions •  THE shared system of record What?
  • 13. © 2016 IBM Corporation 13 Smart Contract •  Business rules implied by the contract . . •  . . embedded in the Blockchain & •  executed with the transaction •  Verifiable, signed •  Encoded in programming language •  Example: –  Defines contractual conditions under which corporate Bond transfer occurs What?
  • 14. © 2016 IBM Corporation 14 Privacy •  Ledger is shared, but participants require privacy •  Participants need: –  Transactions to be private –  Identity not linked to a transaction •  Transactions need to be authenticated •  Cryptography central to these processes What?
  • 15. © 2016 IBM Corporation 15 Validation •  Transaction verification & commitment •  When participants are anonymous –  Commitment is expensive –  Bitcoin cryptographic mining provides verification for anonymous participants but at significant compute cost (proof of work) •  When participants are known & trusted –  Commitment possible at low cost •  Multiple alternatives –  proof of stake where fraudulent transactions cost validators (e.g. transaction bond) –  multi-signature (e.g. 3 out of 5 participants agree) •  Industrial Blockchain needs “pluggable” consensus What?
  • 16. © 2016 IBM Corporation 16 Contents What Why How . . are Blockchain technologies ? . . is it relevant for our business? . . can IBM help us apply Blockchain?
  • 17. © 2016 IBM Corporation 17 Industrial Blockchain Benefits Reduce costs and complexity Improve discoverability Why? Trusted recordkeeping Shared trusted processes
  • 18. Blockchain – not for all . . . NEGATIVE Indicators 1.  Need high performance (millisecond) transactions 2.  Small organization (no business network) 3.  Looking for a database replacement 4.  Looking for a messaging solution 5.  Looking for transaction processing replacement Why?
  • 19. © 2016 IBM Corporation 19 Patterns for Customer Adoption (1) INTERNAL LEDGER •  Ledger for internal reporting, audit and compliance, •  Consistent view of key business assets, •  Provenance, immutability & finality more important than consensus. •  Access to auditor and regulator (2) CONSORTIUM SHARED LEDGER •  Created by a small set of participants •  share reference data between themselves and consumers. •  Consistent real-time view of key information (3) INFORMATION HUB •  A ledger set up in a single organization •  Sharing of information between participants (e.g. voting, dividend notification) •  Assets have information, not financial value, •  Require provenance, immutability & finality. (4) HIGH VALUE MARKET •  Ledger for the transfer of high financial value assets •  between many participants in a market. •  Requires all enterprise features of Blockchain How?
  • 20. © 2016 IBM Corporation 20 Use Case – Letter of Credit What? •  Bank handling letters of credit (LOC) wants to offer them to a wider range of clients including startups •  Currently constrained by costs & the time to execute How? •  Blockchain provides common ledger for letters of credit •  Allows bank and counter-parties to have the same validated record of transaction and fulfillment Benefits •  Increased trust •  Increase speed of execution (less than 1 day) •  Vastly reduced cost Why?
  • 21. © 2016 IBM Corporation 21 Use Case – Corporate Debt (or Bond) What? •  Bank holding a corporate debt would like to –  pay vendors quickly for transactions validated by the client –  allow the corporate client to see the payment is made –  provide government with oversight of the process How? •  Blockchain provides a common ledger for recording the corporate debt / bond, •  available to bank, corporate client, vendors & government. Benefits •  Speeds up vendor payments bigger net discounts •  Eliminates risk and accelerates decision making •  Owning bank can spread the cost across each market. Why?
  • 22. © 2016 IBM Corporation 22 Use Case – Business to Business Contracts What? •  Buyer wants efficient way of converting a purchase order into validated, self executing contract updated to reflect the status of the supply.   •  Agreement must be visible to the buyer, the seller, banks, logistics partners and other stakeholders. How? •  Blockchain provides a shared record of the contract status which is updated as the contract progresses.   •  Available to all parties to the agreement, their banks and partners. Benefits 1.  increased efficiency and transparency across the supply chain. 2.  risk management improved through the near real time update of all contracts. Why?
  • 23. © 2016 IBM Corporation 23 Use Case – Smart Refrigerator What? •  Value of connected smart devices limited by ability to interact with business systems How? •  Blockchain to manage automated interactions with the external world •  ordering and paying for food to arranging for its own software upgrades and tracking its warranty.   Benefits 1.  business value from connected technology 2.  efficiencies in network and supply chains. 3.  status transparent to all network members Why?
  • 24. © 2016 IBM Corporation 24 Use Case – Open, Trusted Supply Chain What? •  Consumers demanding transparency on where and how their products are made. •  EU requires more information about corporate supply chains, with penalties for non-compliance. How? •  Blockchain enable safe digital transfer of property across the end to end supply chain.  Benefits 1.  verifiable, preventing any party from altering 2.  efficiencies through greater transparency 3.  consumers can make informed purchases 4.  governments get reliable information Why?
  • 25. © 2016 IBM Corporation 25 Use Case – Aircraft Maintenance What? •  Provenance of each component part in complex system hard to track •  Manufacturer, production date, batch and even the manufacturing machine program. How? •  Blockchain holds complete provenance details of each component part •  Accessible by each manufacturer in the production process, the aircraft owners, maintainers and government regulators.  Benefits 1.  trust increased no authority "owns” provenance 2.  improvement in system utilization 3.  recalls "specific" rather than cross fleet Why?
  • 26. © 2016 IBM Corporation 26 Use Case – On Line Gaming What? •  Game player wants to trade “gold” earned in current game for the currency or assets of another game •  Use experience with the current game to put me ahead and not have to start cold in the new game How? •  Blockchain holds tokens of value shared across on line gaming platform Benefits •  Transparency to game player, game owners & infrastructure providers •  Efficiencies through elimination of intermediaries •  Increased trust for all involved parties. Why?
  • 27. © 2016 IBM Corporation 27 Other Potential Use Cases include . . •  Securities –  Post-trade settlement –  Derivative contracts –  Securities issuance –  Collateral management •  Trade Finance –  Bill of Lading –  Cross-currency payment •  Syndicated Loans •  Intra-bank settlement •  Retail Banking –  Cross border remittances –  Mortgage verification –  Mortgage contracts (smart contract) •  Public Records –  Real estate records –  Vehicle registrations –  Business license and ownership records Why?
  • 28. © 2016 IBM Corporation 28 Contents What Why How . . are Blockchain technologies ? . . is it relevant for our business? . . can IBM help us apply Blockchain?
  • 29. © 2016 IBM Corporation Hyperledger Project 29 §  Linux Foundation - announced 17th December 2015 §  New open ledger project to transform the way business transactions are conducted around the world §  Project members understand that an open source, collaborative development strategy supporting multiple players in multiple industries is required Enable adoption of shared ledger technology at a pace and depth not achievable by any one company or industry How?
  • 30. © 2016 IBM Corporation Hyperledger Project Members [1] 30 [1] At 17th December 2015 How?
  • 31. © 2016 IBM Corporation Hyperledger Project – Draft Scope 31 Smart contract execution environment, ledger data structures, Membership services, modular validation framework, modular identity services, network peer services Application development facilities specialized extensions, specialized validation algorithms integration gateway, operations dashboard Custom built applications for specific use cases App Layer Shared Ledger Value Added Systems In- scope Out of scope How?
  • 32. © 2016 IBM Corporation 32 Engagement Model overview 1.  Discuss Blockchain technology 2.  Explore customer business model 3.  Show Blockchain Application demo 1.  Understand Blockchain concepts & elements 2.  Hands on with Blockchain technology 3.  Standard demo customization 1.  Design Thinking workshop to define business challenge 2.  Agile iterations incrementally build project functionality 3.  Enterprise integration Remote or face to face Remote or face to face Face to face Free of charge Free of charge For fee Conversation & Demonstration Proof of Technology First Project How?
  • 33. © 2016 IBM Corporation 33 Enterprise Integration What? •  Customer realizes full benefit of Blockchain solution by scale up, scale out and enterprise integration How? •  Full range of consulting, system integration & project skills •  Extension of Agile from Proof of Concept •  Integration into customers existing systems and business processes •  Metrication to prove Return on Investment Commercial? •  For fee How?
  • 34. © 2016 IBM Corporation 34 Summary 1.  Blockchain is a shared, replicated ledger technology 2.  IBM supports an open standards, open source, open governance Blockchain 3.  Blockchain can open up business networks by taking out cost, improving efficiencies and increase accessibility 4.  Blockchain addresses an exciting and topical set of business challenges, which cross every industry 5.  Linux Foundation Hyperledger project developing open source, open standards shared ledger technology 6.  IBM has an easy to access, proven and incremental engagement model giving customers the confidence to get started NOW