introduction to blockchain technology for business ... · blockchain business consultants smart...

©Blockchain Business Consultants

Introduction to Blockchain Technology for Business Applications

1Dr. Drew Miller, CMA, CFP, CM&AA [email protected]/9/2018

Dr. Drew Miller, CMA, CFP, CM&AA, DDPManaging Director Blockchain Business [email protected]

mailto:[email protected]


OVERVIEW

1. Review of BC technology and current capabilities, Smart Contracts

2. Example of a good BC system in operation today: TradeLens Supply Chain BC

3. Major applications of BC in business today

4. Summary of BC advantages for business processes

5. How can you assess BC potential for your firm?


Welcome to email with questions


Qualifications: Dr. Drew Miller

• Managing Director, Blockchain Business Consultants

• 20 years management consulting in process redesign, strategy, operations, IT

• Certified Management Accountant, Certified M&A Advisor, Certified Financial Planner, Certified Due Diligence Professional

• Manager, Corporate Planning and Development ConAgra Inc

• Vice Pres Business Development Securities America

• Investment Banking: Global Vantage Securities and H Roark & Associates

• CEO, Fortitude Ranch

• County Commissioner, Univ of Nebraska Regent

• Senior Executive Service, Dept of Defense

• USAF Academy graduate, intelligence officer, retired Colonel, USAFR

• Masters Degree and PhD, Harvard University3

Certified Due Diligence Professional

Dr. Drew Miller, CMA, CFP, CM&AA [email protected]/8/2018


Blockchain Qualifications: Dr. Drew Miller

• Managing Director, Blockchain Business Consultants

• Certified Hyperledger Developer

• Conducted Initial Coin Offering (ERC20 token, Ethereum blockchain)

• Hyperledger Blockchain for Business Certificate

• Consulting with businesses on supply chain applications of BC and assessing BC costs/benefits/risks/likely ROI/impact on competitive advantages

• 20 years management consulting in process redesign, strategy, operations, IT

• ERP and IT Architecture work for Dept of Defense huge IT systems, Senior Executive Service, Dept of Defense



Review of Blockchain Technology and Current Capabilities, Smart Contracts

10/9/2018 5Dr. Drew Miller, CMA, CFP, CM&AA [email protected]


BC “Distributed Ledger” contrasted with traditional centralized database

• A blockchain is:

• A secure distributed ledger (database) where past “blocks” of entries are “locked in” so securely that you cannot alter them

• Run by network of computers working together and competing to collect pending transactions, solve crypto problems to develop the “hash” to verify and lock in next block, and then reach agreement on correct block of transactions that is then locked into the blockchain



A significant disadvantage of bitcoin proof of work processing is that the growing computing power engaged is significant now and may reach the electrical consumption amount of Denmark by 2020

Many means for the BC to agree on, approve transactions: Proof of Work, Proof of Stake, Private and Public blockchain options

• Proof of Stake does not reward miners with cryptocurrency, but a processing fee

• Private blockchains may have small or no fees; just obligate users to have a processing node up on the blockchain network

• Don’t let Bitcoin Proof of Work limits and drawbacks kill your BC plans: with a private blockchain and other consensus mechanisms, the slow processing speeds, high cost and energy use of Bitcoin are N/A



Ethereum is a better, more important public blockchain than Bitcoin blockchain—a shared computing system with “Smart Contracts”

• Ethereum blockchain launched in 2014 as an improvement to Bitcoin blockchain: faster processing, Smart Contracts, designed to be a distributed processing system for all kinds of applications beyond cryptocurrency

• Open source; designed to be flexible and adaptable, a “suite of protocols”

• A “programmable blockchain” running on peer-to-peer network

• The “Ethereum Virtual Machine” can execute code using relatively easy to use Ethereum programming languages modelled on existing languages like JavaScript and Python

• Ethereum the primary blockchain used for doing “Initial Coin Offerings” (ICOs)

• “Smart Contracts” a critical, powerful improvement



Smart Contracts that run on BC are a fantastic tool for business applications, cutting expenses

• Another extremely valuable feature of blockchain (developed by the “Ethereum” blockchain) is the ability to use “smart contracts”• Programs that run in the blockchain to

execute assignments like sending out information, making payments, transferring ownership when the programmed conditions of the smart contract are met

• Smart Contracts can notify parties of goods arrival, automate invoicing and payments

• Being used to disintermediate banks and middlemen and administrative personnel in shipping and logistics process, saving money and lowering costs

• Other blockchains like Hyperledger also have Smart Contracts

• For businesses, Smart Contracts likely more valuable than the cryptocurrency aspect of a BC• Especially valuable for SC applications

9Source: Codebrahma



Private Blockchains especially valuable for business

• Hyperledger has sponsored/developed several different private blockchains

• Hyperledger backed by IBM, SAP, Deloitte, others—likely to be the leading “private blockchain” (open source, Linux Foundation oversees)

• Unlike public blockchains, you can’t be on a private blockchain unless your computer network is approved

• Can process much faster if not using “proof of work” as well as eliminating the processing payment if desired

• Same security as blockchain, and easier to keep transactions confidential



Private blockchains can validate transactions with or without a central authority; only trusted computers of approved partners allowed to access and use the private BC

• Hyperledger championing “private blockchains” that only approved parties and computers can connect to—not “public blockchains” that any computer following the protocol can access and use

• Some of these blockchains, like Hyperledger “Fabric” do not have complete participation of all parties or nodes on BC, not a full, identical distributed ledger on all nodes

11

Big advantages: Much faster processing speeds, better ability to keep transactions/information confidential (even within a private BC)



Traditional Blockchain advantages: processing transactions without middleman, more secure from hacking, yields great business applications and huge business disruption potential

• Send money without paying a bank

• Share distributed database of transactions without worrying about hackers compromising the data

• Great for cryptocurrency

• Also good for sourcing, selling any asset that can be registered in a database



This is what a typical status quo supply chain system really looks like: a collection of stove pipped, connected, often incompatible databases with lots of Application Process Interfaces and transaction errors

13

Transportation Company Database

Supplier’s Enterprise Resource Planning system,

databases

Warehouse Database

Retailer’s Database

My Bank

Logistics Service Provider Banks Retailer’s

Bank



Having one source of data that all parties can trust is extremely valuable

• Blockchain technology enables one shared database with all the information, versus siloed databases that must be connected or accessed—and may not be trustworthy if controlled by another party or vulnerable to hackers and data theft or alteration

• Can lock documents into the asset digital record on a blockchain so customs, other forms are easy to find and can’t be tampered with

• With blockchain, all the parties involved, sometimes competitors don’t have to trust each other, can share the same system and share (or not if private information) data

• If there is a shipping delay a problem with a payment, anything out of what is planned, “Smart contracts” (programmed instructions) can immediately notify all relevant parties of the change and execute agreed contract terms

• A Hyperledger blockchain study explained why this trusted, shared, and automated send of status information and data can be so vital:

“A customized version of an Airbus A380 may require engines from GE instead of Rolls Royce, if the GE engines are backordered rescheduling the build of A380 is paramount, rather than having a partially built A380 parked waiting for GE engines tying up cash flow and production space (the same easily applies to thousands of smaller components). Uncertainty of supply chain execution is greatly reduced by integration and can benefit significantly by using distributed ledger technologies.”



While BC started in finance (cryptocurrency) it is particularly valuable for Supply Chain applications and Integrating IT Systems and Business Partners

1. BC is a “distributed database” – every user (or just authorized if private BC) on the BC has the data—not a collection of stove pipped databases

2. There is no “Central” controlling computer or company that owns and can alter the database on its own

3. As a result of this decentralized, distributed nature of BC:

• Very hard to alter/hack/cheat the system

• No single point of failure (many, most “nodes” can go down and BC still works)

• May be able to get parties who don’t trust each other (including competitors) to share and use the same BC to have both better sharing of information and less IT cost and complications

4. Blockchains allow for greater traceability of goods—and confidence that the data is correct

• Feasible to have complete history of everywhere the item has been, who controlled, temperature, etc.

• Great for avoiding counterfeit goods

5. Disintermediation of intermediaries like banks, lawyers, any company/authority that is now relied on as “trusted party” or controller of an information system

• In Blockchain—it is computer networks and software systems that control and are trusted

• “Smart contracts” that are locked into the blockchain system and executed by the computer network when agreed upon conditions are met—not lawyers

• Unhackable digital currency to pay for online transactions (cryptocurrency—like Bitcoin, Ether, others) without banks or their big fees

Dr. Drew Miller, CMA, CFP, CM&AA [email protected] 1510/9/2018


Example of a good blockchain system in operation today:TradeLens Supply Chain BC



IBM and Maersk Shipping Global Trade Digitalization project (GTD) a valuable SC application of BC

17

Source: IBM briefing to Blockchain Business Consultants, Jan 2018


(Renamed “TradeLens” in 2018)



• This blockchain system keeps track of all documents for an ocean shipping container, notifies all parties of its movement, changes in status

• Government approvals and all information needed for a transaction and shipment are securely locked into the blockchain so all who are authorized can see it, but only legitimate, authorized entries can be made.

IBM and Maersk Shipping’s Global Trade Digitalization project (now called “TradeLens”) already a proven SC system



Global Trade Digitalization blockchain database provides shared data—but limited by who can access, what information can be seen

19Dr. Drew Miller, CMA, CFP, CM&AA [email protected]


10/9/2018


Major applications of BC in Business Today



BC is used in many applications, most not involving cryptocurrency


Source: Deloitte, “Breaking blockchain open, Deloitte’s 2018 global blockchain survey”


Airbus implementing blockchain to control the many complex parts that come together to make a jet plane and other BC applications

• Sensitive design data could be sent via BC to guarantee quality and security standards and exploit smart contracts


• Airbus sees BC as way to overcome compliance issues, high overhead cost for data reconciliation with multiple parties they must share data with

• Applying BC technology to pilot certification so confident they have “immutable data” they can trust

• Airbus using a Linux Foundation-backed Hyperledger blockchain


BC ideal for stopping counterfeit goods and avoiding theft/deception in supply chain


• Estimated global economic value of counterfeiting and piracy in 2015 $1.7 trillion

• Counterfeiting forecast to reach $2.3 trillion by 2022

• Counterfeiting so widespread, even smallest suppliers are victims

• Reliable, easy to see the “traceability” of a product moving through the supply chain system on BC helps avoid counterfeits

• You can see (and trust the data is accurate, not hacked) that the contracted manufacturer did submit the product at the correct place, with the correct contract attached to the digital asset in the blockchain

• Can see product moving through the system as well

• When crate or shipping container passes through a port, an “Internet of Things” date and time stamp can be transmitted and received and then recorded in the blockchain: Container XA47 arrived in Port of Los Angeles at 4:15AM on Dec 22

• If a counterfeit product is substituted—it won’t be in the blockchain

• Blockchain similarly useful for avoiding stolen goods:

• If trucking company shows up at dock to pick up product rather than using papers they provide, if BC contains the information on the trucking company contracted to pick up good (attached to the BC record of the product) check that to ascertain if this is proper truck or a thief

©Blockchain Business Consultants Dr. Drew Miller, CMA, CFP, CM&AA [email protected] 2410/8/2018


Walmart and IBM have been working on a food safety blockchain application for several years

25


10/9/2018 Dr. Drew Miller, CMA, CFP, CM&AA [email protected]


Many BC startups pursuing Healthcare and Medical Records Applications of BC

• For decades companies using Internet technology tried to get medical records businesses established

• Failed due to individual privacy, risks of compromised/stolen data

• Many BC companies offering patients ability to share and maintain their medical records using BC

• If patients, doctors, hospitals, insurance companies can safely share data—many valuable applications for healthcare



BC technology has major benefits for many financial services and banking processes

• Blockchain provides a very high level of safety and security when it comes to exchanging data, information, and money

• BC seen as a reliable, promising and in-demand solution for the banking and finance industry

• JP Morgan Chase, Bank of America, all big banks developing BC systems for financial services, filing patents

• Bank of America will utilize blockchain technology to combine multiple existing data storage platforms into one• Another example of using BC for Systems Integration and secure

data sharing with business partners


• Goldman Sachs cryptocurrency project called Circle working to solve problem of volatility in the digital currency, expanding their cryptocurrency trading desk

• BC will be used in banking industry for fraud reduction, Know Your Customer (KYC) and Anti-Money Laundering, trading “Smart Assets,” and many other applications

5 areas of financial services with great potential for financial institutions to exploit blockchain:1. Clearing and Settlement2. Contract execution3. Remittance4. Lending5. Regulatory Technology

Sources: Mayank Pratap, Hacker Noon, Aug 2 2018, “How is Blockchain Revolutionizing Banking and Financial Markets”; Blockchain — Practical Applications in Financial Services Tech, Cheryl Chiodi, June 6, 2018; https://www.appian.com/blog/blockchain-practical-application-in-financial-services/


Most large companies are at least exploring BC, most experimenting and about one fourth using BC now




Venture Capital, Hedge, Investment Funds pouring billions into BC at increasing rates


Source: https://diar.co/volume-2-issue-39/ Oct 2018

https://diar.co/volume-2-issue-39/


Summary of BC advantages for business processes



Blockchain has moved far beyond Bitcoin Capabilities, and will continue to advance


• If someone tells you that BC transactions are too slow—they don’t know blockchain

Major Developments in Blockchain Technology

Development Functionality Blockchain Name

Blockchain 1.0 First Blockchain cryptocurrency only Bitcoin 7 10 minutes

Blockchain 2.0 Smart Contracts Ethereum 15 15 sec to several min

Blockchain 3.0 Private Blockchains 15,000 1 sec (variable)

Transactions

per second

Block Settlement

Time

Hyperledger Fabric

(& others)

executing wide variety

of transactions

• You do not need cryptocurrency to run a blockchain


BC advantages include greater speed, new business models, greater security and lower costs




Major advantage of BC may be for IT and Business Partner Integration

• Vast majority of business IT systems designed for company use, not interactions with outside systems

• Despite widespread use of ERP systems, most companies still have lots of stove piped data within firm

• BC can be used to connect siloed databases across multiple organizations and business processes, exploiting the IOT and Smart Contract billing and administrative cost reduction advantages while protecting confidentiality


• Blockchain’s security and reliability make it a much safer and more feasible means to connect a wide variety and large number of business partners together

• Value of BC as an integrator is rarely mentioned, but probably the most valuable application of this technology.


Adding BC won’t eliminate the complex IT system your organization has—but can make the information, database sharing with outside organizations much better



Improvements needed for more BC adoption – and very likely to materialize

• Some still cite slow transaction speeds• But BCs like Hyperledger Fabric claim 15,000 transactions/second• Many new BC consensus methods being developed to increase speed

• Lack of standardization may restrict growth – though open source BCs like Ethereum, Hyperledger BCs are encouraging sharing and standardization• And Hyperledger – Ethereum just announced cooperation partnership agreement• March 2017 report by Gartner found 61 blockchain-oriented consortia currently in existence, compared to 28 last year

• Huge number of digital cryptocurrencies, with very unstable values

• Many firms that like cryptocurrency or Initial Coin Offerings advantages deterred by regulatory uncertainties

• Smart Contracts very likely are legally enforceable, but some believe not certain

• Interoperability of BCs a concern• But likely to be a consolidation at some time onto best BC systems• Can link BCs as you do ERP systems, other traditional IT data sources

• Costs of creating and maintaining BC network a concern for many firms• IBM, Microsoft working on ways of improving the cost and complexity involved in creating blockchain networks by

using cloud technology, blockchain-as-a-service, where effective "templates" are offered in order to make it easier for developers to set up and run blockchain networks

• Hyperledger's open-source platform Sawtooth lets developers build blockchain applications in preferred coding language without knowing the core BC system

• As top BC systems are proven, many likely to be copied and expanded into other business processes



Major companies believe BC will be widely used and most see it as disrupting their industry




All Industries will end up using BC for many different applications

• The ability to have a virtually hack proof shared database is relevant to almost all businesses

• Smart Contracts are incredibly valuable for automatically doing sends of information, authorizing or making payments, etc.

• The ability to use cryptocurrency (which could be a digital fiat currency as well) facilitates automated payments and cutting out middleman banks

• The tremendous amount of data from the “Internet of Things” is readily accessed, used and reliably recorded in a BC (example at right: time and location)

• Every industry involves some kind of sourcing; so at a minimum supply chain BC applications are relevant

37Source: HyperledgerDr. Drew Miller, CMA, CFP, CM&AA [email protected]/8/2018


Even if your business does not want to use BC: customers, business partners may force you to

• Walmart’s direct suppliers of lettuce, spinach and other greens must join their food-tracking blockchain by Jan. 31, 2019

• Farmers, logistics firms and business partners of these suppliers must join the Walmart BC by Sept. 30, 2019

• Walmart cites food safety advantages of BC; but likely sees counterfeit goods avoidance and cost savings advantages as well (Dr. Miller’s opinion—not in article)



Good reason to believe that BC is the “Second Internet Revolution” and will destroy many old businesses, create profitable new ones

• The Bitcoin blockchain has remained resilient to attack, supports a robust payment system

• Cryptocurrencies could open up the financial system to people who are currently excluded, lower barriers to entry, and enable greater competition

• Research shows that making the system more transparent reduces intermediation chains and costs to users of the financial system

• Blockchain “is more likely to do to the financial system and regulation what the internet has done to media companies and advertising firms”

• “Such a fundamental restructuring of a core part of the economy is a big challenge to incumbent firms that make their living from it. Preparing for these changes means investing in research and experimentation. Those who do so will be well placed to thrive in the new, emerging financial system.”


Digital Currency Initiative at the MIT Media Lab

• Even years into the deployment of the internet, many believed that it was still a fad

• Cisco built products like network routers, capitalizing on that protocol, and by March 2000 Cisco was the most valuable company in the world

• Amazon, Google, Facebook, Netflicks, etc followed…………


Blockchain Application Assessment Scorecard

Top Level

Measures ->

Impact on

Compet-

itive Advant-

ages

Business

Processes

Blockchain

Tech and

IT Capacity10 2 2 1

Mid Level

Measures ->

Low Cost

Producer

Reliable

Delivery

Brand &

Customer

Loyalty

Infor-

mation

Import-

ance

Ability/

Value of

Cutting out

Inter-

mediaries

Degree of

Control &

Leverage Financing

Product

Delivery

Software

Capa- bility

Process-

ing Speed

Transact-

ion Volume Security0 3 1 2 1 1 1 1 1 1 1 1 1

Base Level

Measures ->

1

Goal --> 10 10 10 10 10 10 10 10 10 10 10 10

Gra

ph No. Option Type Option

Fla

g.

1 1

Overseas

Manufacture &

Shipping Data

Manufacturer

1

10 9 8 10 8 8 6 9 8 8 6 8

1 2

Anti-counterfeiting Manufacturer

1

8 8 10 9 5 7 5 6 7 8 6 7

1 3

Health Records

Business

Health Care

Services1

5 5 10 10 5 2 5 9 7 6 4 8

1 4

Hyperledger

blockchain trade

finance

Retail Store

1

7 5 5 7 10 8 10 5 8 8 5 7

1 5

Customer Loyalty

CryptocoinRetail Store

1

5 6 10 5 6 10 6 5 9 4 4 8

1 6

Accepting Bitcoin

and Ether for

payment

Retail Store

1

5 5 10 5 8 10 5 5 7 4 3 6

1 7

Developing

country direct

food buy

Non Profit

1

6 10 7 9 10 9 5 8 8 6 5 7

Color Blank Cells

CE Cost

High

Low Color

Base case row

How can you assess BC potential for your firm?



How to evaluate feasibility, net benefit, ROI of blockchain applications?

• Blockchain, particularly supply chain applications will eventually impact most companies

• Key questions:

1. Should you be investigating BC applications in SC now?

2. Use someone else’s system—or develop/operate your own?

3. Opportunity to develop a BC system that others could use, you sell or control? ICO?



Blockchain Business Consultants uses a Multi-Criteria Assessment Scorecard to evaluate and compare ICO investments

• Criteria for assessment in columns

• ICO investment options in rows

• Weight criteria by importance to generate an aggregate score to compare investments

42Dr. Drew Miller, CMA, CFP, CM&AA [email protected]

Typical evaluation considers dozens of criteria, addressed a few at a time—not readily shown in a small screenshot. Scorecard here is split to show the full range of criteria


Each blockchain application option is assessed (rated) by all relevant criteria (fit with your business processes, costs and returns, risks, etc.)

43


Top Level

Measures ->

Impact on

Compet-

itive Advant-

ages

Business

Processes

Blockchain

Tech and

IT Capacity10 2 2 1

Mid Level

Measures ->

Low Cost

Producer

Reliable

Delivery

Brand &

Customer

Loyalty

Infor-

mation

Import-

ance

Ability/

Value of

Cutting out

Inter-

mediaries

Degree of

Control &

Leverage Financing

Product

Delivery

Software

Capa- bility

Process-

ing Speed

Transact-


Base Level

Measures ->

1

Goal --> 10 10 10 10 10 10 10 10 10 10 10 10

Gra


Fla

g.

1 1

Overseas

Manufacture &

Shipping Data

Manufacturer

1

10 9 8 10 8 8 6 9 8 8 6 8

1 2


1

8 8 10 9 5 7 5 6 7 8 6 7

1 3

Health Records

Business

Health Care

Services1

5 5 10 10 5 2 5 9 7 6 4 8

1 4

Hyperledger

blockchain trade

finance

Retail Store

1

7 5 5 7 10 8 10 5 8 8 5 7

1 5

Customer Loyalty


1

5 6 10 5 6 10 6 5 9 4 4 8

1 6

Accepting Bitcoin

and Ether for

payment

Retail Store

1

5 5 10 5 8 10 5 5 7 4 3 6

1 7

Developing

country direct

food buy

Non Profit

1

6 10 7 9 10 9 5 8 8 6 5 7

Color Blank Cells

CE Cost

High

Low Color

Base case row

More criteria; scorecard continues to right -→

Scales Essential to be consistent in average/neutral and higher/better ratings

10 Huge Profit Opportunity

9

8 Major upside potential

7

6 Small benefit

5 Neutral/Average

4 Small downside

3

2 Large downside risk

1

0 Catastrophic, huge loss potential

• Can use Likert (5 point), any scale you want as long as consistently applied

• We prefer 10 point scale so can differentiate smaller differences

Criteria weights (importance)



Costs and

ROIC

Prob-

ability of

Success

Other

Risks and

Considerati

ons2 1 1 Wt

Wt

C --

Cost to

Develop

Operate &

Maintain

Expense

Savings/

Sales+

ROIC over

5 years

Develop-

ment

Partner/

Market

Accept-

ance Regulatory

Vendor

Relations1 1 1 4 1 1 3 1 Wt

Wt

10 10 10 10 10 10 10 10 10

0

6 7 7 8 9 7 10 7 8.3

6 7 7 7.5 8 4 9 6 7.3

3 4 6 4 6 2 7 3 5.6

6 7 8 8 8 8 7 9 7.3

4 4 8 7 8 10 10 9 7.1

5 6 6 5 9 9 9 6 6.6

4 3 5 6 6 10 10 10 7.2

Wt or Min

Aggregate Column

Weighted average aggregate score indicates which application scores best

44

No. Option Type Option

1

Overseas

Manufacture &

Shipping Data

Manufacturer

2


3

Health Records

Business

Health Care

Services

4

Hyperledger

blockchain trade

finance

Retail Store

5

Customer Loyalty


6

Accepting Bitcoin

and Ether for

payment

Retail Store

7

Developing

country direct

food buy

Non Profit

Additional criteria here,

with weighted

average total score



Blockchain Business Consultants maintains database of BC Business Applications

• Proliferation of BC systems and companies, new applications offers rapidly expanding array of applications

• Time consuming to keep up with the daily announcements, news of new BC applications in business

• Useful in helping clients evaluate BC applications that may fit with them—and examples to study for lessons learned


ICO? Company Application Blockchain, Software Used Their Industries Notes

1 1 21 The Machine Payable Web Bitcoin FinServ enable people to, say, avoid irksome paywalls and manually entering credit card details by clicking a link and automatically sending some digital

2 1 21.co Enables people to be paid in digital currency for replying to emails Mkt Research

3 1 Airbus working on Hyperledger projects Hyperledger Manufacturing

ICO 4 1 Adel BC technology incubator many BCs Blockchain

5 1 AdEx Network Advertising Ethereum Advertising they are focused on avoiding fradulent advertising, use Smart Contracts

ICO 6 1 ALIS social media where many individuals can create and find articles Ethereum Social Network ERC token token issue, may use different BC once developed

7 1 AlphaPoint White Label Digital Asset Exchange Blockchain

8 1 Amazon Amazon Web Services blockchain partner ecosystem IT AWS is investing in blockchain through our partner ecosystem. If you’re involved in Healthcare and Life Sciences, Financial Services, Supply Chain Management, Security, or Compliance, and would like to innovate with us, we welcome your proposals. For example, based on feedback from our Healthcare and Life Sciences customers, we are interested in seeing proposals for identity resolution, auto-adjudication, and supply chain integrity applications.

9 1 American Express working on Hyperledger projects Hyperledger FinServ

ICO 10 1 Aragon Business governance system Blockchain

11 1 Australian Stock ExchangeStock trade clearing and settling Digital Asset Holdings developed distributed ledger and blockchainFinServ

ICO 12 1 Axoni global capital markets technology Hyperledger Ethereum specializes in distributed ledger infrastructure

13 1 BAE Systems, the British defense contractor, is exploring sharing cybersecurity threat data on a blockchain. Pokitdok and Gem are looking to revamp electronic medical record management. And Accenture (ACN, +0.63%) has teamed up with Microsoft (MSFT, +0.70%) and a United Nations group to build a blockchain for digital identity, especially useful for refugees who lack official documents.

14 1 Banco Santander Digital payments FinServ

ICO 15 1 Bancor Token Exchange Ethereum Blockchain ERC20 token exchange

16 1 Barclays Letters of Credit, all types of finanical applications FinServ

# Cos if

more

than 1

Companies pursuing Blockchain, and Applications They are Developing


BC Business Applications webinar, Nov 7



Key Findings and Recommendations• BC has many great advantages for business operations, especially in supply chain and business partner process

integration systems

• Contrary to Bitcoin limits, BC has a great deal of processing speed, power and flexibility for wide use

• Some companies will use BC to not just cut expenses but generate big competitive advantage and industry disruptive new business models

• Hyperledger probably best BC technology to use

• Assessing what BC applications to use and when depends on dozens of criteria that need to be carefully assessed based on your industry, company, business processes and competitive strategies



Top Level

Measures ->

Impact on

Compet-

itive Advant-

ages

Business

Processes

Blockchain

Tech and

IT Capacity10 2 2 1

Mid Level

Measures ->

Low Cost

Producer

Reliable

Delivery

Brand &

Customer

Loyalty

Infor-

mation

Import-

ance

Ability/

Value of

Cutting out

Inter-

mediaries

Degree of

Control &

Leverage Financing

Product

Delivery

Software

Capa- bility

Process-

ing Speed

Transact-


Base Level

Measures ->

1

Goal --> 10 10 10 10 10 10 10 10 10 10 10 10

Gra


Fla

g.

1 1

Overseas

Manufacture &

Shipping Data

Manufacturer

1

10 9 8 10 8 8 6 9 8 8 6 8

1 2


1

8 8 10 9 5 7 5 6 7 8 6 7

1 3

Health Records

Business

Health Care

Services1

5 5 10 10 5 2 5 9 7 6 4 8

1 4

Hyperledger

blockchain trade

finance

Retail Store

1

7 5 5 7 10 8 10 5 8 8 5 7

1 5

Customer Loyalty


1

5 6 10 5 6 10 6 5 9 4 4 8

1 6

Accepting Bitcoin

and Ether for

payment

Retail Store

1

5 5 10 5 8 10 5 5 7 4 3 6

1 7

Developing

country direct

food buy

Non Profit

1

6 10 7 9 10 9 5 8 8 6 5 7

Color Blank Cells

CE Cost

High

Low Color

Base case row


Questions?

Feel free to email:

If interested in most valuable book I’ve ever read, Taleb’s “The Black Swan” email and ask for copy of “Cliff’s Notes” I wrote up for this very valuable, important book

[email protected]

www.bchainconsult.com


mailto:[email protected]

http://www.bchainconsult.com/

introduction to blockchain technology for business ... · blockchain business consultants smart...

Documents