Karolina MarzantowiczIBM Distinguished EngineerCTO for Banking // IBM Academy of Technology

Outthink Blockchain

22. November 2016, Ljubljana, Slovenija

Outthink trends

Digital Economy, Digital Trust

Source: https://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbe03620usen/GBE03620USEN.PDF

Blockchain in Gratner’s Hype Cycle

Chart Source: Hype Cycle for Blockchain Technologies and the Programmable Economy, 2016Published: 27 July 2016, Gartner

Business networks, wealth & markets

– Business Networks benefit from connectivity• Participants are customers, suppliers,

banks, partners • Cross geography & regulatory boundary

– Wealth is generated by the flow of goods & services across business network in transactions and contracts

– Markets are central to this process:• Public (fruit market, car auction), or• Private (supply chain financing, bonds)

Ledgers are key …Ledger is 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

– Contract – conditions for transaction to occur

Problem …

… Inefficient, expensive, vulnerable

Bankrecords

PartyA’srecords

PartyC’srecords

Auditorrecords

PartyB’srecords

PartyD’srecords

Solution …

… Consensus, provenance, immutability, finality

PartyC’srecords

Auditorrecords

PartyB’srecords

PartyD’srecords Bankrecords

PartyA’srecords

Shared,replicated,permissioned

Blockchain for business …

Append-onlydistributedsystemofrecordsharedacrossbusinessnetwork

Businesstermsembeddedintransactiondatabase&executedwithtransactions

Allpartiesagreetonetworkverifiedtransaction

Ensuringappropriatevisibility;transactionsare

secure,authenticated&verifiable Privacy

Sharedledger

… Broader participation, lower cost, increased efficiency

Smartcontract

Consensus

Blockchain benefits

Savestime

Removescost

Reducesrisk

Increasestrust

Transaction time from days to near

instantaneous

Overheads and cost intermediaries

Tampering, fraud & cyber crime

Through shared processes and recordkeeping

Blockchain for Business – Our Point of ViewCommunity + CodeLinux Hyperledger Project

Open Source Code: Blockchain for business;Consensus | ProvenanceImmutability | FinalityOpen Governance – 100 member cross industry board

CloudIBM Blockchain

Blockchain managed service on IBM Cloud and z Systems;Identity | Consensus | System Integration | Hardware-assist for Performance & SecurityIBM Blockchain on Bluemix

ClientsBlockchain SolutionsBlockchain Garage

Making Blockchain real for businessBlockchain Garage; New York | London | Singapore | TokyoBlockchain Services Practice

Linux Foundation’s Hyperledger Project– Open Ledger Project announced December 17, 2015 with

17 founders, now over 80 members

– Collaborative effort to advance Blockchain technology by identifying and addressing important features for a cross-industry open standard for distributed ledgers that can transform the way business transactions are conducted globally

– Open source, open standards, open governance

Enable adoption of shared ledger technology at a pace and depth not achievable by any one

company or industry

QUICKFACTS

Chairman Blythe Masters/DAH

Executive Director Brian Behlendorf

Technical Chair Chris Ferris/IBM

Contribution 44,000 lines of code in February 2016

Sprint to one codebase with unified thinking

Staged releases

www.Hyperledger.org

Adoption of Distributed Ledger Technology

Source: World Economic ForumPublished: August 2016

High Potential Blockchain Use Cases

Source: World Economic Forum: The future of financial Infrastructure

Examples

More Blockchain Resources§ IBM Blockchain http://www.ibm.com/blockchain/

§ IBM Blockchain for Developers: https://developer.ibm.com/courses/all-courses/blockchain-

for-developers/

§ IBM ThinkAcademy: Blockchain in 20 Minutes: https://w3-

workplace.ibm.com/ibm/thinkacademy/ta3/#/blockchain-in-20-minutes

§ IBM Blockchain Forum: https://w3-connections.ibm.com/forums/html/forum?id=caa49f66-

fd14-4f7f-a81d-1aecab4d2e36&ps=25

§ Basic terms: https://innovationthinkers.com/2016/10/07/blockchain-dlt-digital-money/

§ World Economic Forum: The Future of Financial Service: http://www3.weforum.org/docs/WEF_The_future__of_financial_services.pdf

CFO Perspective Collaboration for Business

October 13th, 2016 | Bucharest, Romania

OUTTHINK BLOCKCHAIN