Making Blockchain Real for

Business



Overview

Matt Lucas – IBM Global Blockchain Labs Enablement, CTO Europe Office - @mqmatt

14 Dec 2015
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 Contents

What . . are Blockchain technologies ?

Why . . is it relevant for our business?

How . . can IBM help us apply Blockchain?

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 Enabling Business Networks What?

•  Businesses never operate in isolation

–  participants in a business network
•  Assets pass across the network
–  in return for payments, and
–  governed by contracts
•  Network participants keep own ledger
–  recording all assets they own and
–  updated on asset transfer
•  Inefficient, piling cost on cost and far from fit
for the needs of the twenty first century!

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Problem - asset ownership & transfer in business networks What?

Ledger
Incident
Ledger Party A’s Records Ledger

Counter-party
Bank records
records API-integrations

Party C’s Records Auditor records

Ledger Ledger
Party B Records

Ledger

Inefficient, expensive, vulnerable

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Solution - a replicated, shared ledger for business networks What?

Party A’s Records

Counter-party
Bank records
records Ledger
Ledger Ledger

Party C’s Records Auditor records

Ledger Ledger Ledger

Party B Records

Participants have NOTE :

multiple shared Participants
ledgers same as before

Agreed, derivable, un-editable, final

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 Blockchain in a nutshell What?

Append-only distributed Ensuring secure,

system of record shared authenticated & verifiable
across business network transactions
Shared Ledger Cryptography

Smart
All parties agree to Consensus Business terms embedded
Contract
network verified in transaction database &
transaction executed with transactions

Broader participation, lower cost, increased efficiency

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 Industrial Blockchain Benefits Why?

Reduce costs and complexity Shared trusted processes

Improve discoverability Trusted recordkeeping

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 Industrial Blockchain Characteristics Why?

Shared 
 Secure
 Private 


single source of truth (ledger) tamper proof un-linkable identity

Scalable
 Confidential
 Auditable 


architecture permission prove identity &
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 Use Case – Corporate Debt (or Bond) Why?
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.

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 Use Case – Business to Business Contracts Why?
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
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 Join the movement How?

As with Java, Linux, Open Stack, Node and Spark, industry can advance open
blockchain technology and focus it on the requirements of industrial use cases by
working together through an open source foundation

What? How?
•  Enterprise grade specification •  Community led
–  Functional & non-functional •  Open Governance
•  Help build open source fabric •  Promote use and support
•  Licensing (Apache / OSS) •  Advisory board

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 Engagement Model overview How?

Proof of Proof of
Conversation Demonstration
Technology Concept

1.  Discuss Blockchain 1.  Show Blockchain 1.  Understand Blockchain 1.  Explore customer
technology Application Demo concepts & elements specific business model
2.  Explore customer 2.  Explain technology 2.  Hands on with 2.  Design, build & iterate
business model usage Blockchain technology approach
3.  Assess Blockchain 3.  Validate Client Interest 3.  Demo customization 3.  Builds limited scope
suitability using Design Thinking deployable solution

Remote or face to face Remote or face to face Face to face Co-located joint team

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 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.  IBM has an easy to access, proven and incremental
engagement model giving customers the confidence to
get started NOW

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 Thank You!

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