1 © 2016 IBM Corporation

BLOCKCHAIN And why is everybody freaking out?

Oliver Gahr, IBM Germany Research & Development Lab

“This is the next big disruption since the introduction

of the internet.” Ginni Rometty, CEO IBM

© 2016 IBM Client Center Boeblingen

The Hype

IBM R&D

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The Rube Goldberg Machine Dilemma

" Anything that can be digitized will be digitized"

Blockchain for Business

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Is not...

6 © 2017 IBM Corporation to ‚un-complex‘ business transactions

Blockchain is

A distributed, shared ledger technology, allowing any

participant in the business network to see

THE system of record (ledger).

Building a Blockchain for Business – Details matter

Permissioned network

Shared ledger

Confidential transactions

Privacy

No cryptocurrency

Consensus

Programmable

Smart contract

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Essential Properties of a Blockchain

Transparent and Auditable Distributed and Sustainable Secure and immutable

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Remember the Rube Goldberg Dilemma... from: to:

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Saves

Time Removes

Cost Creates

Transparency Reduces

Risk

Transaction time

from days to near

instantaneous

Overheads and

cost intermediaries

Access to data among

all participants

Tampering, fraud

& cyber crime

Blockchain Fundamentally changes the Game

IBM is a founding Member of the open Hyperledger Project Blockchain Technologies for Business

Create an enterprise grade,

open source distributed

ledger framework and code

base

Create a technical

community, focused on use

cases across a variety of

industry solutions

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Trade Finance

Global

Bank

Trade Logistics

Shipping

Company

Financial Audit and

Compliance

Large

European

Bank

Food Safety

Retail

Company

Low liquidity

securities trading and

settlement

Japanese

Stock

Exchange

Commercial

Paper

Financial

Institution

Channel Financing

IBM

Global

Financing

Nostro-Vostro

Settlements

Larg

e

Bank

Loyalty Points

Financial

Services

Company

Client examples of First Projects

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IBM Global Financing - Blockchain Solution

Blockchain utilized to significantly improve

resolution time for common disputes

• Utilized data available from suppliers to deliver

enhanced information to both Suppliers and Business

Partners

• Accomplished with no code changes to our core

Commercial Financing system using shadow ledge

approach

• Integrated blockchain into existing user interface

• Enhanced data includes key information regarding

shipments status which minimizes proof of delivery

disputes

• Established a ‘platform’ for competitive advantage

• Continuing to work with our Suppliers and Business

Partners to further expand blockchain capabilities

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Provenance

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Don‘t follow. Lead.

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“Blockchain has the potential to redefine

transactions and change everything“

- Goldman Sachs

Thank You!

gahr@de.ibm.com