The business value-add of Blockchain will grow to slightly more than $176 billion by 2025, and then it will exceed $3.1 trillion by 2030 – Gartner
Blockchain is the future of Business – IBM
Next Big Thing After Internet
Blockchain will revolutionize transactions like Internet did for information
Dubai Govt plans to go paperless by 2020 by shifting all government services to Blockchain – Dubai Blockchain Strategy
“Expectations of at least 10% of the global GDP being stored on Blockchain platforms by 2025” – World Economic Forum
The Need for Blockchain
Events in 2008 exposed flaws of banking system
Slow settlement time
Fraud, cyberattacks – compromise of central authority will risk all participants
Duplication lead to errors
Transactions volume growing exponentially
E-Commerce Growth
Online Banking
In App purchases
Increased Mobility
About to Explode with IoT
Smart Objects
Referigerators that buy groceries
Autonomous Cars that stop by at fuel station
Magnify inherent issues like complexities, vulnerabilities, inefficiencies and cost.
Fundamentals of Blockchain
Blockchain is a secure, shared, distributed ledger that facilitates the process of recording transactions and tracking assets in a business network.
An asset can be tangible — a house, a car, cash, land — or intangible like intellectual property, such as patents, copyrights, or branding.
Virtually anything of value can be tracked and traded on a Blockchain network, reducing risk and cutting costs for all involved.
What is Blockchain?
Three Principle Technologies Combine to Create Blockchain
Not new but their orchestration and application
Cryptography
Distributed P2P Network that hosts a shared ledger
Incentive to service the network’s txns, record keeping and security
Key Characteristics of Blockchain
Consensus: For a transaction to be valid, all participants must agree on its validity
Provenance: Participants know where the asset came from and how its ownership has changed over time.
Immutability: No participant can tamper with a transaction after it’s been recorded to the ledger. If a transaction is in error, a new transaction must be used to reverse the error, and both transactions are then visible.
Finality: A single, shared ledger provides one place to go to determine the ownership of an asset or the completion of a transaction.
Participants and Roles
Blockchain Network Participants and their Roles
User
Regulator
Developer
Network Operator
Traditional processing platforms
Traditional Data sources
Certificate Authority
Blockchain Checklist
Does my business network need to manage contractual relationships?
Do we need to track transactions that involve more than two parties?
Is the current system overly complex or costly, possibly due to the need for intermediaries or a central point of control?
Can the network benefit from increased trust, transparency, and accountability in recordkeeping?
Is the current system prone to errors due to manual processes or duplication of effort?
Is the current transaction system vulnerable to fraud, cyber-attack, and human error?
What is Bitcoin?
Cryptocurrency
Public Blockchain Network
Application over Blockchain
Email over Internet
o – An unregulated shadow-currency
o – The first blockchain application
o – Resource intensive
Blockchain underpins Bitcoin
o Blockchain for business differs in key areas:
o Identity over anonymity
o Selective endorsement over proof of work
o Assets over cryptocurrency
Challenges & Weaknesses in Blockchain for Businesses
Double Spend Problem
51% Attack
Democratic Nature – The majority of a crowd is always right
Code is Law
All executions are final, all transactions are immutable.
Lack of consumer protection
OpenBazaar P2P uses partial moderator
Scaling
Bitcoin split
Network size, speed, cost
New Technology
Blockchain as a Service (BAAS)
IBM Blockchain
Premier Member behind Hyperledger Project
IBM Bluemix container hosting
IBM Blockchain platform
Microsoft Azure Blockchain
Founding member of Enterprise Ethereum Alliance
Offers both Hyperledger and Ethereum cloud hosting available
Whether you are a large enterprise looking to augment your teams with experts resources or an SME looking to scale your business or a startup looking to build something. We are your digital growth partner.
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