Blockchain

1. Transforming Enterprises with Blockchain
Sharon LaDay
Blockchain Ecosystem Leader
September 25, 2017

2. © 2017 IBM Corporation 2
Agenda
1. Permissioned Blockchain for Business Overview
2. Example Use Case and Pattern of Adoption
3. IBM Blockchain Platform

3. © 2017 IBM Corporation 3
1. Permissioned Blockchain for Business Overview

4. © 2017 IBM Corporation
Blockchain is creating extraordinary opportunities for businesses to come together in new ways
4© 2017 IBM Corporation
Optimize Ecosystems
Streamline business processes
and the exchange of value along
your ecosystem
Reduce Risk
Replace uncertainty
with transparency and a trusted
decentralized ledger
Create New Value
Exploit new business
models and eliminate
inefficiencies

5. © 2017 IBM Corporation
Permissioned Blockchain Review
– Blockchain builds on basic business concepts
– Business Networks connect businesses
– Participants with Identity
– Assets flow over business networks
– Transactions describe asset exchange
– Contracts underpin transactions
– The ledger is a log of transactions

6. © 2017 IBM Corporation
Requirements of Blockchain for Business
6
Append-only
distributed system of
record shared across
business network
Business terms
embedded in
transaction
database
& executed with
transactions
Transactions are
endorsed by
relevant
participants
Ensuring appropriate
visibility; transactions
are secure,
authenticated
& verifiable Privacy
Shared
Ledger
Smart
Contract
Trust

7. © 2017 IBM Corporation 7
2. Example Use Case and Pattern of Adoption

8. © 2017 IBM Corporation 8
Benefits
1. Trust and accountability
increased
2. Reduces buyer’s spend on
unusable product
3. Prevents further shipping
expense for manufacturer if
spoilage is indicated
What • Track the temperature and air quality of the shipping
environment from manufacturer to the buyer
• Manufacturer, shipping date, quality metrics at time of
shipping, at a minimum
How • Blockchain holds temperature and air quality metrics of
the shipping environment for the complete journey for
each container
• Accessible by manufacturer, buyer, insurer and
government regulators, at a minimum
Supply Chain/IoT
Shipping Example
IBM Blockchain

9. 9
© 2017 IBM Corporation 9
Supply Chain/IoT
Shipping Example
IBM Blockchain
A sensor sends
temperature and air
quality data to Node-
RED
Node-RED
combines
temperature and
air quality data
and sends it to
IBM Watson IoT
Watson IoT maps
incoming data to
blockchain contract
fields
A blockchain
transaction is invoked;
incoming information
validated
Web-based
application queries
IBM Blockchain for
information and
displays it to buyer or
manufacturer

10. © 2017 IBM Corporation 10
Supply chain/IoT
Example – Key
Blockchain
Components
IBM Blockchain
Business Characteristic Example Definition
Asset Digital representation of the chemical containers to be tracked
Participants Manufacturer, buyers, potential intermediaries, insurers, regulators
Transactions Asset point of origin and state, temperature and environment
readings, custody change, delivery
Processes Associated with transactions types above
Access Control Who’s allowed to do what transaction and who can see the end result
– manufacturer, buyer, regulator

11. © 2017 IBM Corporation
Patterns of Adoption as Use Cases
COMPLIANCE
LEDGER
CONSORTIUM
SHARED LEDGER
ASSET
EXCHANGE
HIGH VALUE
MARKET
• Created by a small set of participants
• Share key reference data
• Consolidated, consistent real-time view
• Sharing of assets (voting, dividend notification)
• Assets are information, not financial
• Provenance & finality are key
• Transfer of high value financial assets
• Between many participants in a market
• Regulatory timeframes
• Real-time view of compliance, audit & risk data
• Provenance, immutability & finality are key
• Transparent access to auditor & regulator
11
© 2017 IBM Corporation

12. Making Blockchain Real for Business with over
400+ engagements and multiple active networks
12
Trade
logistics
Credit
default
swaps
Diamond
provenance
FX
netting
Settlements
through
digital
currency
Identity
management
Food
safety
Trade
finance
Dispute
resolution
Low liquidity
securities
trading and
settlement
Rewards
points
management
Contract
management
IBM Blockchain / © 2017 IBM Corporation

13. © 2017 IBM Corporation 13
3. IBM Blockchain Platform

14. © 2017 IBM Corporation
Technology and the Products Using the Technology
• Hyperledger is a Linux Foundation trademark
• Hyperledger Fabric is one project under the Hyperledger umbrella
– It is NOT an IBM project
• IBM Blockchain refers to the collection of IBM products and services built on Linux
Foundation’s Hyperledger Fabric

15. The IBM Approach to Blockchain for Business
15IBM Blockchain / © 2017 IBM Corporation
Secure, proven, and cloud-based blockchain platform with technology
services to enable the creation and management of blockchain
business networks
The Linux Foundation community ensures the best foundation for
blockchain with its a commitment to open standards, open source and
open governance
Transformation of business processes to drive enterprise value;
complemented by investment with industry partners for differentiated
blockchain solutions
Industry expertise, hands-on blockchain education, and go-to-market
support services to create a thriving Blockchain ecosystem
IBM Blockchain Platform
Blockchain Solutions
IBM Blockchain
Ecosystem
Projects
Build Operate Invest
Develop Govern Operate
NEW

16. © 2017 IBM Corporation
Deliver production ready service with speed
and at scale with the new IBM Blockchain
Platform
• 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
IBM Blockchain Platform
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Develop
Explore and accelerate development time with
tools that ensure close alignment between
business leaders and developers
Govern
Speed activation, customization and
management of your business network with
democratic, multi-party governance tooling
Operate
Deploy 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

17. © 2017 IBM Corporation
Turn any programmer into a
blockchain developer
• Align business and development to reduce
development from months to days
• Quickly build blockchain skills by leveraging
today’s popular open source tools and
languages
• Learn and develop in your preferred
environment with an open and modern
toolset
• Deploy to production in IBM Cloud
when you’re ready!
Develop Blockchain Apps
for Free with Hyperledger
Technologies
17
Install on
Laptop
Develop and test with
complete local dev
environment including
Hyperledger Fabric and
Hyperledger Composer
Try
online
Zero install!
Leverage
Hyperledger
Composer’s web
playground
Share on
Cloud
Collaborate, share code of
your running blockchain
network including with
Docker and Kubernettes;
free and fee options
Free cloud sandbox and interactive
playground to convert business design
into code

18. © 2017 IBM Corporation
Accelerate the initiation and activation
of new blockchain networks
• Collectively manage rules and policies for
network by preventing any one member
exclusive control
• Grow elastically as new smart contracts,
network members and transaction channels
evolve
• Pre-built, native tools and policies enable
faster onboarding, customization and
activation
Govern the Network with
Democratic Management
Tools
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Integrated tools to enforce change
management of the network with
customizable democratic policies
Multi-party
workflow tool
Leverage member activities
panel, integrated notifications
and secure signature collection
for policy voting
Policy
Editor
Define flexible,
democratic policies
to govern changes to
the network

19. © 2017 IBM Corporation
Deploy and grow your blockchain network
with the necessary security and
performance
• Start small and scale network elastically as
membership and transaction volumes increase
• Ultra high security environment with IBM exclusive
hardware, firmware, and software features
• Always-on operations and disaster recovery
solutions keep the network running during upgrades
without disruption
• Optimized for performance running on the world's
fastest Linux computed
Operate the Network with
Production-ready
Enterprise Service
19
Network
Dashboards
for monitoring and
managing the resources
on the network
Lifecycle
Management
with seamless upgrades of
the full code stack without
pausing the network.
Hardened
security stack
with 100% encryption, no
privileged access, malware
and tamper resistant keys
24/7 Technical
Support
integrated into the
portal for problem
resolution
Integrated features
Hyperledger
Fabric V1.0
runtime optimized for
enterprise requirements

20. Why IBM for Blockchain
20
Real Active
Networks
with Real
Clients
Integrated
Lifecycle
Tooling
Experience
Open by
Design with
Hyperledger
Delivered
via the
IBM Cloud,
Globally
Secure by
Design with
Optimized
Compute
IBM Blockchain / © 2017 IBM Corporation

21. © Copyright IBM Corporation 2017. All rights reserved. The information contained in these
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Thank You!