will blockchain disrupt world trade?€¦ · l hyperledger fabric – v1.1 in march, 2018, used to...

www.lighthouse-partners.com #AustinBlockchain

Will Blockchain Disrupt World Trade?

Pete Harris

Lighthouse Partners Austin, TX


YES!

Thanks for coming … Questions?


AboutLighthousePartners(andme)l  Lighthouse Partners, Inc. helps companies offer or adopt transformative

technologies, like blockchain, AI, IoT. Getting into quantum computing. Vertical focuses on financial markets, supply chain logistics/finance.

l  Pete is a 40-year veteran of IT software development, project management, corporate strategy, publishing/events.

l  Pete is also a researcher at Chain Business Insights, focused on blockchain’s application to supply chains.

l  Pete has lived in the USA for 24 years, last 9 in Austin.


SomeBlockchainBuzz(Hype?)…

10% of global GDP will be recorded in blockchains by 2027 – World Economic Forum. “Oh my God, this is it. This is the big breakthrough” – Marc Andreessen, Netscape browser inventor. “What the internet did for communications … blockchain will do for trusted transactions” – Ginni Rometty, IBM CEO.


Whatis(a)Blockchain?SomeDefinitions…

“A continuously growing list or records, called blocks, which are linked and secured using cryptography” – Wikipedia. “Nothing much more than a fancy kind of database” – Blythe Masters, speaking at a Bloomberg conference in 2015. “Blockchain is a shared, immutable ledger for storing the history of transactions” – IBM.


WhatisBlockchainTechnology?l  It’s software. It’s not very good. It’s getting better.

l  It can be installed on a home computer, a computer in a company’s data center, or delivered via a cloud service. Also IoT devices.

l  Some blockchains are open to everyone. Like the internet. These are public/permissionless blockchains. Bitcoin is the prime example.

l  Other blockchains are for use by a company and its trading partners/customers. Like an intranet/portal. These are private/permission blockchains. IBM Food Trust platform is an example.


WhatdoBlockchainsProvide?l  They store data in an immutable way – data held in blockchains is very, very,

very hard to change. So they are ‘tamper proof’. A ledger.

l  They share the ledger among many different entities, so everyone has access to the same data.

l  They maintain the same shared ledger on many nodes in a network, so they are resilient.

l  They allow different entities in a network to add data to the ledger with no centralized control, or censorship, subject to consensus rules that ensure the network as a whole agrees with the addition.


SomethingAboutBitcoinl  Introduced in 2009. It is a public blockchain. No one is sure who

invented it.

l  The Bitcoin network supports the bitcoin cryptocurrency.

l  Bitcoin allows anyone to send bitcoin to anyone else. There is no middleman. No bank. No Western Union. No PayPal.

l  Double spend is impossible. Receivers can trust senders, even if they do not know them.

l  It is still the largest ‘production’ blockchain running. It has a few problems – speed, capacity, energy consumption.


ExamplesofOtherBlockchainPlatformsl  Ethereum – since 2015, used to transfer assets and run smart contracts.

Public and private. Used everywhere. Many imitators.

l  Hyperledger Fabric – v1.1 in March, 2018, used to transfer assets and run smart contracts. Managed by Linux Foundation. Supported by IBM. Used in financial services, healthcare, supply chain. Private.

l  R3 Corda – v1.0 in October, 2017, from fintech company that runs a bank consortia. Used to transfer assets and run smart contracts. Used in supply chain, financial services. Private.

l  Chain, Symbiont, Guardtime, Gem, SETL, Quorum, Digital Asset, Sawtooth.


AQuickNoteaboutSmartContractsl  Smart contracts are software code that runs on blockchains. They automate

business processes.

l  Once deployed, they cannot be modified. They have strict rules for integration with data outside of blockchain.

l  It is still quite hard to write and test smart contracts. Some have been exploited and hacked, and fraud has occurred. Security is an issue. Skills in short supply.

l  Some say smart contracts will replace lawyers. ROFL. Not a chance!


SmartContractsFutureExample


WhoOffersBlockchainServices/Technology


WhatisBlockchainBeingUsedFor?l  Financial Services – payments, securities issuance, syndicated loans

administration, credit derivatives data lifecycle, FX post-trade processing.

l  Supply Chain – tracking goods and conditions of transport (e.g. pharma cold chain), transparency, easing financing mechanisms.

l  IP Authentication – property titles, music, film and written works, educational certificates, inspection records.

l  Healthcare – patient records, claims processing, monetizing wellness data.

l  eGovernment – voting, identity, smart cities.


WalmartandFriendsandIBMforFoodSafety


MarcoPoloProjectforTradeFinance


DHSforBorderCameraAuthenticity


UjoMusicandImogenHeapforMusicRights


WanxiangisBuildingaSmartCity


WhatisNextforBlockchain?l  PoCs began in 2016 and 2017. Pilots creeping out in 2018. Continuing in 2019.

Limited production deployments from 2019 onwards.

l  Currently headed to the Gartner Trough of Disillusionment.

l  Focuses on performance, security, ease of deployment, integration. And getting companies to work together!

l  Alignment with AI and IoT technologies and use cases. Supply chain especially.

l  Regulation of cryptocurrencies and blockchain services likely to increase.

l  Over time, blockchain will be just another internet!


Questions?


Keep in Touch Email – [email protected]

Twitter - @petelp LinkedIn – Blockchain, Distributed Ledgers and

Smart Contracts for Business Group Meetup – Austin Blockchain for Business

Also @ www.chainbusinessinsights.com

And also @ Austin Blockchain Collective

www.austinblockchaincollective.com

will blockchain disrupt world trade?€¦ · l hyperledger fabric – v1.1 in march, 2018, used to...

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