Blockchain - beyond the hype

Blockchain – Beyond the Hype

August 30, 2017

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Agenda

• Introductions

• Technology status

• Current challenges

• The near future

• Summary

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Rowan Lemley (host)

Introductions

11.9.20173

Petri Karjalainen

Head of Strategic Partnerships

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OpusCapita by the numbers

Company:

• Founded 1984

• Over 400 employees

• Revenue €75 million (2016)

Buyer-Supplier Ecosystem:

• 4 000 customers in over 100 countries

• ~100 000 suppliers

• 200 million e-transactions annually

• 40 million different products bought and sold

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Poll: What do you expect blockchain technology will mean to your business in the next 3-5 years?

We see no impact to our business model

We are expecting blockchain to dramatically change our business model

We are doing nothing with blockchain currently

We are investigating and evaluating blockchain

We are planning a pilot

We are currently piloting blockchain

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Answers from 2016 webinar

11.9.2017 Presentation name6

15.4 %

19.2 %

42.3 %

42.3 %

3.8 %

7.7 %

We see no impact to our business model

We are expecting blockchain to dramatically change ourbusiness model

We are doing nothing with blockchain currently

We are investigating and evaluating blockchain

We are planning a pilot

We are currently piloting blockchain

What do you expect blockchain technology will mean to your business in the next 3-5 years?

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What others are thinking

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Where Gartner places blockchain

Blockchain != Bitcoin

BlockChain is a technology concept, Bitcoin is application built withblockchain technology concept!

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Blockchain is an encrypted and distributed database with smart contracts to create trust and transparency

Benefits of distributed ledger vs. middle man

Higher security

No delays

Wider reach

Lower costs

Smart contracts

Can’t be hacked

Trust protocol build in

Facilitate, verify,

enforce the contract

Automatic processing

Global encrypted

ledger

Public

Technology status review

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• Hyperledger Foundation– Founded 2016– Members: ~ 130

• Enterprise Ethereum Alliance– Founded 2017– Members: ~ 116

• Ripple (Company)– Founded 2012– Members: ~ 90

• R3 (Company)– Founded 2014– Members: ~ 80

Blockchain tech - Tech foundations and companies

“Hyperledger is an open source

collaborative effort created to

advance cross-industry blockchain

technologies.”

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Blockchain fabrics for business applications today

Hyperledgermodular framework developing business appsfor corporations and public organizations

Ethereumdecentralized platform with cryptocurrency for SMEs

Public

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In comparison to databases at the moment.

Consistent (CP) DB Available (AP) DB Blockchain

Privacy Good Good Bad

Write scalability Tunable Good Bad

Single node performance Good Good Moderate/Immature

Maturity & Ecosystem Good Good Immature

Features, ease of use Good Good Immature

Read scalability Good Good Good

Consistency Good Tunable Good

Robustness (crash recovery) Good Good Good

Vulnerability to malicious activity Bad Bad Good

Current challenges

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And yet… Blockchain technology has some issues

• Currently blockchains don’t really do privacy very well

• Transactions are public to everyone running a node

• Lots of research being done

• Most interesting use cases will require privacy

• Currently blockchains don’t really scale well

• Every node will validate every transaction

• Permissioned networks get slower as you add nodes

• Isolating networks will create

problems

Privacy Scale

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What can we expect in the next 12-24 months?

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Blockchain is a phenomenon

● Blockchain has made it possible to think about novel solutions to problems

● And new ways of thinking “Blockchain Inspired”

○ Share, collaborate, open,

transparent

● Blockchain has introduced new

concepts such as

○ Smart Contracts

○ Cryptographic verification

● Misconceptions will be clarified

○ Blockchains are not faster

○ They are not better for

privacy

○ They don’t scale easily

”Inspiring” ”Innovating”

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Summary

Closing Thoughts:

• Status

• Challenges

• Future

Thank You

See you at our next webinar: The New Paradigm for B2B Commerce – with Pete Loughlin of Purchasing Insight (September 6)

Rowan Lemley