1 Page © 2016 IBM Corporation © 2017 IBM Corporation
Making Blockchain Real for Business
IBM Blockchain
May 28, 2018
Christian Lassen
Nordic Leader, IBM Blockchain
+45 41 20 10 93
5 Page © 2016 IBM Corporation
Blockchain benefits
Saves
time
Removes cost
Reduces risk
Increases trust
Transaction time
from days to near
instantaneous
Overheads and
cost intermediaries
Tampering, fraud
& cyber crime
Through shared
processes and
recordkeeping
Global Financing: Dispute Resolution
What?
• IBM Global Finance provides a $41bn channel financing per year. There are a number of disputes that take time to resolve and can lock up transactions costing time and money
How?
• Blockchain provides visibility and provenance
end-to-end across supply chain
Benefits
1. Reduced dispute resolution time by 75%
2. Released working capital from $100m
3. Combine IGF and Supplier info to further expand benefits further
4. In production since Sept 2016
Distribution - Maersk
11
The case for a better way
15
What?
• Provide a trusted source of information and traceability to
improve transparency and efficiency across the food
network.
How?
• Shared ledger for storing digital compliance
documentation, test results and audit certificates network.
Benefits
• Reduce impact of food recalls through instant access to
end-to-end traceability data to verify history in the food
network and supply chain.
• Help to address the 1 in 10 people sickened and 400,000
fatalities WW which occur every year from food-born
illnesses.
Food Safety
16 Page © 2016 IBM Corporation
Legitimize Diamonds and Reduce Fraud
What?
• Track diamonds across supply chain from mine to retail
How?
• Shared ledger for storing digital certification with supporting
material
Benefits
1. Protect against the occurrence of fraud, theft, trafficking
and black markets
2. Assist in the identification and reduction of synthetic stones
being labelled as authentic
3. Increase speed of transparency for cross border
transactions for insurance companies, banks and claimants
17 Page © 2016 IBM Corporation
Legitimize Diamonds and Reduce Fraud
What?
• Track diamonds across supply chain from mine to retail
How?
• Shared ledger for storing digital certification with supporting
material
Benefits
1. Protect against the occurrence of fraud, theft, trafficking
and black markets
2. Assist in the identification and reduction of synthetic stones
being labelled as authentic
3. Increase speed of transparency for cross border
transactions for insurance companies, banks and claimants
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What?
• Create and promote a secure, efficient and scalable
exchange of health data using blockchain technology.
How?
• Blockchain technology will be used to create an
electronic ledger of where and how data is transferred
and exchanged
• Initial trial focus on oncology data
Benefits
• Creating an audit trail through the ledger, healthcare
professionals will be able to:
– hold information leakers accountable
– maintain transparency in what data is going where
– secure weak spots in the sharing process
IBM and FDA Partnership
Trade Finance – Digital Trade Chain
This new product will simplify trade finance processes for companies by
addressing the challenge of managing, tracking and securing domestic
and international trade transactions. Companies can easily and
efficiently trade with more trust.
The commercialisation of the platform is expected in Q2 2018. From
February 2018 test clients of the founding banks will be able to use the
platform.
NORDEA JOINS FIRST BLOCKCHAIN-BASED
TRADE FINANCE PLATFORM AS FOUNDING
PARTNER
CONSORTIUM IS, IN CONJUNCTION WITH IBM,
DEVELOPING A PLATFORM BASED ON
DISTRIBUTED LEDGER TECHNOLOGY (DLT) THAT
AIMS AT MAKING DOMESTIC AND CROSS-BORDER
COMMERCE EASIER, SAFER AND MORE
EFFICIENT FOR COMPANIES
20 Page © 2016 IBM Corporation
Bicycle shop -Registers lock with
bike
-Transfers ownership
LoRa Lock - Registers
open / close
status
- Registers
location
Police - Register ‘notice’ of
owner of lost / stolen
bike
- Registers bikes that
are found
Insurer -Validates stolen claim
-Update claim status
-Pays out insurance
Owner -Deregisters bike (wreck,
disposed)
-Reports bike stolen
-Transfers ownership
Bicycle
manufacturers - Registers new bikes
- Transfers ownership
Business Networks - enabling game changing disruptive business patterns in local government
22 Page © 2016 IBM Corporation
GDPR - ’Right to Erasure’
• One of the GDPR requirements is the right to erasure when an individual asks an organization that has their personal data to completely remove that data
• The organization then has a limited time to comply. The blockchain ledger is append-only and immutable — there is no “undo” button after a write, and the chain of blocks contains historical transaction information that goes all the way back to when the blockchain was created
• That can be a challenge for applying blockchain to GDPR
• To comply with GDPR, no personal data should be put on the blockchain directly
• Techniques exist to deal with this, which consist of putting a cryptographic hash on the chain or the “evidence” instead of the actual data
• The actual data resides in a off chain database, only the cryptographic hash is exposed to the chain
• With this structure personal data can be deleted when needed
© 2017 IBM Corporation 23
IBM is 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
©2018 IBM Corporation IBM Financial Markets and Banking
Linux Foundation Hyperledger : the basis of IBM’s investment in blockchain
– A collaborative effort created to advance cross-industry
blockchain technologies
– Announced December 2015, now over 190 members, including
DTCC, CLS, DBAG, BBVA, SAP, BoE, Oracle etc
– Open source, open standards, open governance
– One active framework (“Fabric”) and four incubators
– IBM is a premier member of the Hyperledger Project
www.hyperledger.org
Brian Behlendorf
Executive Director
Blythe Masters
Board Chair
Chris Ferris
TSC Chair
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©2018 IBM Corporation IBM Financial Markets and Banking
IBM Blockchain Platform overview
• 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
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] 27
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IBM Blockchain Platform Starter Plan Live! Free beta.
• Enable fast start - preconfigured kick-starter default
network for demos, POCs and education
• Least expensive way to get IBM Blockchain Platform
experience
• Prebuilt and supplied industry examples
• Environment to enable iterative development prior to
production deployment
• Same experience as Enterprise, no scaling back
functionality
https://www.ibm.com/blockchain/platform/
https://www.ibm.com/blockchain/getting-started.html
https://www.ibm.com/blogs/think/2018/03/extending-the-blockchain/
29 Page © 2016 IBM Corporation
– Identifying a good blockchain use-case is not always easy!
– However there should always be:
What makes a good blockchain use case?
1. A business problem to be solved
• That cannot be solved with more mature technologies
2. An identifiable business network
• With Participants, Assets and Transactions
3. A need for trust
• Consensus, Immutability, Finality or Provenance
30 Page © 2016 IBM Corporation
What makes a good first blockchain use case?
1. A limited scope, but still solves a real business problem
• Minimum Viable Product in a few weeks of effort
1. A smaller business network
• Usually without requiring regulators and consortia
2. Allows for scaling with more participants and scenarios
• Consider shadow chains to mitigate risks
Start small, succeed and grow fast!
©2018 IBM Corporation IBM Financial Markets and Banking
IBM Blockchain Engagement Model
Ideation
IGNITE
DESIGN
Design & Solution
Workshop
Apply business domain expertise and Blockchain technology expertise to derive a
adoption model that enlists and surfaces hurdles challenges and factors in the
costs and economic viability of the Blockchain solution
REALIZE
First Project MVP Build
SCALE
Scale Out
1. Scaling up the solution
by expanding the
participants and
consensus procedures
involved in the
Blockchain ecosystem
2. Investigating integrations
with existing systems
and reduce redundant
processes through re-
engineering
1. Design, build and deploy
the MVP in a short period
of time
2. Validate MVP against a
pilot user base for
immediate feedback. Test
and rapidly adjust MVP
as needed.
1. Align Business and IT
goals and define the
MVP Statement.
2. Create a concept design
for the MVP
1. Assess proposed
initiative
2. Substantiate selected
Use Case
Design Thinking UX and Visual Design Lean Startup Xtreme Programming DevOps
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© 2016 IBM Corporation
Thank you!
Christian Lassen
Nordic Leader, IBM Blockchain
+45 41 20 10 93