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IBM Confidential: © 2016 IBM Corporation
Blockchain: Point of View
Luca Comparini
IBM France – Blockchain Leader

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IBM Confidential: © 2016 IBM Corporation
A look to the past

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IBM Confidential: © 2016 IBM Corporation 3
The genesis block of business ledgers
(double entry book-keeping)
« Tractatus XI particularis de
computibus et scripturis »
Luca Pacioli (1494)
Ledger: the system of record for a business
(Business will have multiple ledgers for multiple
business networks in which they participate.)
Transaction: an asset transfer onto or off the ledger

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IBM Confidential: © 2016 IBM Corporation 4
The genesis block of transactional business machines
IBM System 360, 1965 IBM Hard Disk, 1956 (5 MB)

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IBM Confidential: © 2016 IBM Corporation 5
The genesis block of International Business Machines
IBM Cheese-Cutter, 1920IBM Scale, 1911 IBM Time-Stamp
(Proof of Existence Machine)

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IBM Confidential: © 2016 IBM Corporation 6
The genesis block of shared distributed ledgers
Satoshi Nakamoto (?)
Bitcoin P2P e-cash paper
Satoshi Nakamoto
Sat, 01 Nov 2008 16:16:33 -0700
I've been working on a new electronic cash system that's fully
peer-to-peer, with no trusted third party.
The paper is available at:
http://www.bitcoin.org/bitcoin.pdf
The main properties:
- Double-spending is prevented with a peer-to-peer network.
- No mint or other trusted parties.
- Participants can be anonymous.
- New coins are made from Hashcash style proof-of-work.
- The proof-of-work for new coin generation also powers the
network to prevent double-spending.

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IBM Confidential: © 2016 IBM Corporation 7
The genesis block of Blockchain and IoT
Supply Chain
Smart Object
Retailer
January 2015
Project ADEPT
IBM + Samsung
Smart Contract
Digitalized self-executable contract
with embedded business logic
https://www.youtube.com/watch?v=U1XOPIqyP7A

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IBM Confidential: © 2016 IBM Corporation 8
http://www-935.ibm.com/services/us/gbs/thoughtleadership/internetofthings/
Device Democracy

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IBM Confidential: © 2016 IBM Corporation
IBM Perspective

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IBM Confidential: © 2016 IBM Corporation 10
Same ingredients, different qualities, different Use Cases
Based on:
- Swanson,T. (2015). Consensus as a service:a brief report on the emergence of permissioned,distributed ledger systems.
- Brown, R. G. (2015) Towards an unified model for replicated,shared ledgers.
PermissionedPermission-less
Design points:
- Public network with no 3rd parties
- Trustless environment
- “Censorship-Resistance”
Consensus:
- Expensive, slow
- Incentives intrinsic to platform
Design points:
- Private / Semi-private network
- Actors known / knowable
- Regulated Industries
Consensus:
- Protocol assumes known actors
- Incentives extrinsic to platform
IBM focus is here

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IBM Confidential: © 2016 IBM Corporation 11
Other challenges to make Blockchain real for Business
Privacy & Confidentiality

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IBM Confidential: © 2016 IBM Corporation 12
Other challenges to make Blockchain real for Business
Governance…

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IBM Confidential: © 2016 IBM Corporation 13
Make Blockchain real for Business
Confidential
permission
control
Private
un-linkable identity
Shared Ledger
single source of
truth
Secure
tamper proof
(extra security)
Audit-able
prove identity &
ownership
Viable
100+ year
architecture
Smart Contracts
business logic
Digital assets
Record depository
Consensus
Modular protocol
Permissioned
Participants
Identity

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IBM Confidential: © 2016 IBM Corporation 15
Hyperledger experience at BlockFest 1.0

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IBM Confidential: © 2016 IBM Corporation 16
Hyperledger experience at BlockFest 1.0

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IBM Confidential: © 2016 IBM Corporation 17
Supply Chain Financing – Demo Context
About IGF :
§ IBM Global Finance (IGF), the internal Bank of IBM
§ Lends $44bn a year to 4000+ partners to pay suppliers (IBM clients or not)
§ 2,9 million invoices
§ 25,000 disputes for $100 million
§ 44 days to resolve dispute
Shadowchain employed for IGF…
§ Not replacing the current system with a full Blockchain system
§ The technology is only used to enrich current IGF lending system
"No, I'm not suggesting the moonshot of immediately redoing our global financing, lending system on a blockchain. But we have
now employed a shadow chain: my definition of shadowchain is it's not replacing the primary business process, it's being used to
enrich that business process with a useful function that it currently doesn't do.”
Source: IBM blockchain leader Jerry Cuomo

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IBM Confidential: © 2016 IBM Corporation
Thanks ! Questions ?