IBM Bluemix Nice Meetup - 20171120 - Blockchain Intro

© 2017 IBM Corporation

Blockchain IntroMeetup – Nov 20th 2017

Explained Solutions Architected ExploredComposed

Blockchain education series

Next Steps

V5.0


Contents

2

What is Blockchain?

Why is it relevant for the business?

IBM Blockchain Solutions & Strategy

©2016 IBM Corporation 27 November 20173

Key business frictions drive delays, costs and risks

2 | Interaction 3 | Innovation

1 | InformationImperfect informationInaccessible informationInformation risks

Transaction costsDegrees of separationInaccessible marketplaces

Restrictive regulationsInstitutional inertiaInvisible threats

FRICTIONS

©2017 IBM CorporationPage 3

©2016 IBM Corporation 27 November 20174

Future State:• Distributed ledgers can be shared and

updated in near real-time. • Every transaction becomes part of the

permanent record.• Relevant information can be shared with

others based on their roles and access privileges.

The Future of Transactions

Page 4 IBM Corporation 2017

Current State

Future State

Current State:• Transactions are recorded in multiple

ledgers. • They don’t record what happens next, what

came before, or the role of others – partners, suppliers, consumers – in the transaction.

• Prone to human error and vulnerable to tampering.

©2016 IBM Corporation 27 November 20175© 2017 IBM Corporation

Blockchains shift the paradigm from information held by a single owner to the lifetime history of an asset or transaction

Instead of messaging-based communications, the new paradigm is state-based: Information that was once obscure now becomes transparent

Blockchains use a replicated ledger shared by all participants

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Cryptographically secure, the shared ledger is updated by consensus and becomes an

immutable and indelible record of all transactions

Transactions are validated by consensus and become indelible records of the transaction

Participants share a ledgerthat is updated with everytransaction

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States of a self-executing contracts,

stored on the blockchain, following business rules

embedded in transactions


Summary: 4 Key Elements of a Business Blockchain

Smart Contract

CryptographyShared Ledger

Consensus

Ensuring secure, authenticated &

verifiable transactions

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


Contents

8

What is Blockchain?




Reduce Time Reduce Costs Reduce Risk Increased TrustBusiness transactions in near real-time

Business networks with no intermediaries and easily scalable

Verifiable and auditable transactions

With common processes and shared ledger

Blockchain has the potential to radically transform multi-party business networks with business transactions that are faster, cheaper and less risky, and enabling new business models

3 major categories of use-cases• Asset transfer & lifecycle management• Information sharing and traceability• Smart Contracts

Page 9


Further examples by (selected) industry

10

Financial Public Sector Retail Insurance Manufacturing

• Audit and compliance

• Trade Finance

• Cross currency payments

• Mortgages

• Letter of credit

• Asset Registration

• Citizen Identity

• Medical records

• Medicine supply chain

• Supply chain

• Loyalty programs

• Information sharing (supplier –retailer)

• Claims processing

• Risk provenance

• Asset usage history

• Claims file

• Supply chain

• Product parts

• Maintenance tracking


Contents

11

What is Blockchain?




IBM Blockchain

ExpertsCollaborate with comprehensive services teams from ideation all the way to production

SolutionsSolve critical industry challenges by building and joining new business networks

As a founding and premier member of Hyperledger, we’re committed to open source, standards and governance

PlatformDevelop, govern and operate enterprise blockchain networks with speed and security

Bringing together the world’s most advanced expertise, technology and ecosystem to transform industries

12© 2017 IBM Corporation

© 2017 IBM Corporation 13

Blockchain Market

– Nascent market – a lot of POC right now, but moving fast– Smart Contract will bring the next level of innovation…. When?


IBM Strategy: Transforming Industries with Blockchain

Secure Blockchain Platform on the Cloud with developer services and production grade capabilities to enable the creation and management of Blockchain business networks

With The Linux Foundation community to ensure the best possible foundation for Blockchain in a commitment to open standards, open source and open governance

Solutions to transform business processes and industries by creating and operating Blockchain Business Networks with enterprise participants

Provide

Invest

Support

IBM Blockchain Platform

Project

Blockchain Solutions

Build Operate Invest

IBM Blockchain Ecosystem

Provide

Education, support and partner services to create a thriving ecosystem for Blockchain

*Hyperledger Fabric is a blockchain framework implementation and Hyperledger Composer is a tooling environment for blockchain and two of the projects hosted by The Linux Foundation.


Hyperledger: A Linux Foundation project

• A collaborative effort created to advance cross-industry blockchain technologies for business

• Announced December 2015, now over 150 members

• Open source, open standards, open governance

• Five frameworks and three tools projects

• IBM is a premier member of Hyperledger

www.hyperledger.org

Brian BehlendorfExecutive Director

Blythe MastersBoard Chair

Chris FerrisTSC Chair


1. Consortium Network: founder(s) is (are) ‘equal’ among other participants, may include a joint legal entity among the founders (e.g. –JV)

2. Founder Directed Network: individual founder in a position to provide strong direction

3. Existing Community Based Network (emerging concept): Driven by industry standards bodies or existing non-blockchain network owners

Member

Founder

MemberMember

MemberFounder Directed Network

Member

Founder

MemberConsortiumBased Network

Dubai Smart Govt

Founder

Founder

Member

MemberMember

MemberCommunityBased Network IBM Watson

SCBN

Building Communities in Blockchain Networks

The only fully integrated enterprise-ready blockchain platform designed to accelerate the development, governance, and operation of a multi-institution business network

• Based on Hyperledger Fabric V1 runtime optimized for enterprise requirements

• Specialized compute for security, performance and resilience

• Delivered via the IBM Cloud on a global footprint with 24x7 Integrated Support

• Full lifecycle tooling to speed activation and management of your network

Introducing the IBM Blockchain Platform

17

DevelopExplore and accelerate development time with tools that ensure close alignment between business leaders and developers

GovernSpeed activation, customization and management of your business network with democratic, multi-party governance tooling

OperateDeploy and operate always-on networks with production-ready enterprise performance and security for most demanding use cases

[http://ibm.biz/Platform_Demo]© 2017 IBM Corporation


Making blockchain real for business with over 400 engagements and multiple active networks

Trade Finance Pre and Post Trade Complex Risk Coverage

Identity/ Know your customer (KYC) Unlisted Securities/ Private Equity Funds Loyalty Program

Medicated Health Data Exchange Fraud/ Compliance Registry Distributed Energy/ Carbon Credit

Supply Chain Food Safety Provenance/ Traceability


Getting started on your blockchain journey

19

Learn More About IBM Blockchain

Schedule an IBM Blockchain Workshop

Develop a Blockchain Application

Activate and Grow your Blockchain Network

Thank you

www.ibm.com/blockchain

developer.ibm.com/blockchain

www.hyperledger.org

© Copyright IBM Corporation 2017. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. Any statement of direction represents IBM's current intent, is subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

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IBM Bluemix Nice Meetup - 20171120 - Blockchain Intro