1. Blockchain Trend Report, 2017
Welcome to the new era of Blockchain
Bill Chamberlin, Principal Analyst, New Markets/HorizonWatch, MD&I
Margot Juros, Content Manager – Vertical Industries, MD&I bluemine
February 15, 2017

2. About This Trend Report
Purpose: The slides provide an overview on the Blockchain trend
Content: Summary information about the Blockchain marketplace, including trends drivers, spending trends, industry business cases, and adoption challenges. Also included are links to additional resources.
How To Use This Report: This report is best read/studied and used as a learning document. You may want to view the slides in slideshow mode so you can easily follow the links
Available on Slideshare: This presentation (and other Trend Reports for 2017) will be available publically on Slideshare at
Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
18Feb2017
Blockchain Trend Report, (External Version)

3. BlockChain – Trend Overview
Definition
BlockChain – Trend Overview
The backbone of the future peer to peer transaction network, Blockchain technology will provide an open and distributed cryptographic ledger shared across all nodes that participate in the network. The ledger is where every successfully performed transaction is recorded. All those in the network will share a secured ledger. The ledgers will be programmable, meaning actions can be taken based on a transaction hitting the ledger.
Key Elements
Distributed Database - Provides a historical shared ledger of data & events for every transaction
Peer-to-peer network – All parties agree & verify transactions
Append only – previous records can not be altered
Security / Privacy – built into the transaction records
Programmability - capability to program an activity based on event
Example Use Cases
Replace complex, slow and error-prone business processes
Proving provenance, ownership, usage rights, or status of a record
Proof of identity
Automatic execution of contractual agreements (smart contracts)
Potential Benefits
Secure transactions
Reduced overhead and intermediaries
Establishes trust among parties
Reduced transaction settlement time
Reduced risk of collusion or tampering
Reduced transaction errors
Improved auditability
18Feb2017
Blockchain Trend Report, | External

4. Blockchain Trend Report, 2017 | External
Key Summary Insights
Hype around Blockchain continues to build and the disruptive potential is real
HBR: The Truth About Blockchain
Creates Trust Among Parties. Blockchain can establish trust among parties where no relationships, or trust, currently exist.
Reduces Transaction Time/Costs. By eliminating second and third parties to a transaction, blockchain can reduce time/costs to settle a transaction, conduct a vote, establish a contract, etc.
Technology Limitations. Blockchain technology in its current form suffers from significant current limitations when it comes to scalability, security and governance.
Slow Path To Mass Adoption. Main stream deployment could be 5-10 years away. Much will depend on standards work, government regulation and how quickly industry leaders adopt. Education is a big challenge. Disruption of powerful legacy industry and governmental ecosystems another.
Financial Services. Blockchain will cause major disruption to existing processes such as crowdfunding, digital payments, trading, settlement and clearing.
Other Industry Use Cases. Transaction heavy industries or industries where trust is vital will be good applications for blockchain. For example, in healthcare the privacy, integrity and control over access to data is paramount and critically important.
Standards / Consortiums. There are a number of initiatives going on to develop standards, development platforms and tools.
IBM Institute for Business Value: Leading the pack in blockchain banking
“The Hyperledger project is an open source collaborative effort created to advance cross-industry blockchain technologies. It is a global collaboration including leaders in finance, banking, IoT, supply chain, manufacturing and technology.” Hyperledger.org
18Feb2017
Blockchain Trend Report, | External

5. BlockChain – Trends to watch in 2017…. And beyond
Market Trends
BlockChain – Trends to watch in 2017…. And beyond
Financial Services. Look for more a flurry of activity by financial institutions in 2017 and the supporting IT ecosystem. Many IT services vendors have already launched Blockchain teams with a focus on financial services.
Education. Look for vendors to increase education initiatives to convince business and IT leaders that blockchain will have far greater implications than just enabling electronic payments.
Standards: Much work remains on standards and on interoperability. Ripple Lab, Chain, Digital Asset Holdings, the 50- plus member R3 CEV consortium and the Linux Hyperledger Foundation are all working to develop enterprise grade distributed ledger frameworks.
Blockchain & IoT: Applying Blockchain to IoT transactions has the potential to securing transactions coming from the edge of networks, making it a popular topic of discussion for IT professionals working in security, cloud and IoT implementations.
Industry Apps & Clouds. In 2017, look for industry cloud vendors to explore embedding blockchain capabilities into industry-specific decentralized applications and industry clouds to support business transactions.
Regulation. Regulators and legislators are watching blockchain development closely to understand the need for new regulations and laws.
Forbes: How Blockchain Will Evolve In 2017
“Blockchain is beginning to play a major part in the Internet of Things by enhancing security, enabling inclusion of low-value devices to be increasingly viable and making managing a device easier for decades to come..” IBM: What blockchain means for you, and the Internet of Things
Finextra: Blockchain, Financial Regulatory Reporting and Challenges
18Feb2017
Blockchain Trend Report, | External

6. Blockchain Trend Report, 2017 | External
Market Trends
A focus has been on Financial Services use cases, but there are many opportunities in other industries
Financial services will invest the most in While Financial Services has already has adopted blockchain solutions, particularly in the area of clearing and near-real- time securities settlement, cross-border remittances, and equity swap, in 2017 investment is expected to grow even more in new application areas - including more backoffice operations such as regulatory reporting and KYC (Know Your Customer) processes.
Expect growth in Healthcare/Life Sciences in Healthcare/Life Sciences are expected to rollout blockchain solutions faster than any other industries in 2017, largely driven by the strong benefits of time, cost, and security. Key uses cases expected in 2017 are clinical trial records, regulatory compliance and medical/health records.
Government & Retail have strong use cases and growing adoption as well. The benefits of blockchain solutions of transparency and immutability make it very appealing for Government use cases including digital voting and reducing fraud (such as in social services) through smart contracts as well as Retail use case of secure transactions. Other industries are growing blockchain adoption as well, including Media and Energy.
CB Insights: Banking Is Only The Start: 27 Big Industries Where Blockchain Could Be Used
“The health care industry has already started to embrace the transformational power of technology. Blockchain is another step forward in simplifying a health system so we can help usher in a new level of care. The promise of Blockchain is about putting the consumer at the center of health care, instead of the other way around.” Bruce Broussard, President and CEO at Humana Blockchain: Transformational Technology for Health Care
18Feb2017
Blockchain Trend Report, | External

7. Use cases for Blockchain also extend to many horizontal applications
Market Trends
Use cases for Blockchain also extend to many horizontal applications
Smart Contracts: Self-automated computer programs can automate contract execution and settlement based on certain transactions hitting the ledger
Reducing Cyber Security Risk: Less intermediaries, combined with advanced cryptographic capabilities will reduce cybersecurity risk
Identity of Things: Device identification and intercommunication is secured by a blockchain that holds the unique identity of each participating node in the network.
Voting: Blockchains can serve as the medium for casting, tracking and counting votes so that there is never a question of voter-fraud, lost records, or fowl-play.
Gift Cards: With fewer middle-men needed to process the issuing of cards and sales transactions, the process of acquiring and using blockchain-reliant gift cards is more efficient and cost effective
Edge of Networks Data Storage: Blockchain cloud storage solutions allow storage to be decentralized, and therefore less prone to attacks that can cause systemic damage and widespread data loss.
Supply Chain Tracking: With blockchain, as products change hands across a supply chain from manufacture to sale, the transactions can be documented in a permanent decentralized record — reducing time delays, added costs, and human errors.
Chamber of Digital Commerce:Smart Contracts: 12 Use Cases for Business & Beyond
“Applying the blockchain concept to the IoT offers fascinating possibilities that include maintaining product information, history, product revisions, warranty details and end-of-life so that the blockchain itself can become the trusted product database.” IBM: Empowering the edge
“Due to its decentralized architecture, blockchain has the potential to create a new paradigm for how supply chain applications are created, implemented and utilized. It has the potential to become a new operating system for supply chain networks.” Industry Week: Blockchain: The Next Evolution of Supply Chains
18Feb2017
Blockchain Trend Report, | External

8. Blockchain Trend Report, 2017 | External
Adoption Trends
There are a number of important issues that will slow the adoption of blockchain
Technical Issues. Resolving challenges such as transaction speed, platform interoperability, verification process, and data storage will be crucial in making blockchain widely acceptable.
Security, Privacy and Control Issues. Ensuring data security & privacy among parties are main concerns. As the blockchain transactions are recorded in the distributed public ledger, it offers hackers a larger attack surface to gain access to critical and sensitive information
Standards. Like any emerging technology, mass adoption will depend on industry-wide standards. Many companies will choose to stay in the background, choosing to wait until standards get defined.
Interoperability. There will be many implementations of blockchain systems. Platforms and apps will need to talk to each other. Different systems on different platforms should be able to allow the data flow.
Governmental Regulation. A decentralized approach to identity and transaction management reduces the control of governments and corporations. You can bet Government will want to regulate it’s adoption, which could impact the progress of blockchain solutions
Cultural Change. Changing from legacy systems may be hard. Blockchain will change business processes, models, and perhaps entire industries
Lack of Skills and Tools. Developers with blockchain expertise are rare. Blockchain developer tools are nascent. These factors increase security risks and make the cost of developing with blockchain platforms higher than existing technology stacks.
Bitcoin Magazine: The Blockchain Developer Shortage: Emerging Trends and Perspectives
Adi Ben-Ari: Outstanding Challenges in Blockchain Technology in 2017
“Financial institutions, real estate brokers, law firms and other organizations with an interest in trust-based transactions will be swarming blockchain in 2017, and you can bet regulators will be right behind them.” Security Intelligence (IBM): Regulators Want In on the Blockchain Party in 2017
18Feb2017
Blockchain Trend Report, | External

9. Blockchain Trend Report, 2017 | External
Adoption Trends
IBM surveyed 200 banks in 16 countries on their experiences and expectations with blockchains
IBM Institute for Business Value: Leading the pack in blockchain banking
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 banks in 16 countries on their experiences and expectations with blockchains.
18Feb2017
Blockchain Trend Report, | External

10. Blockchain Trend Report, 2017 | External
Adoption Trends
IBM surveyed 200 government leaders in 16 countries on the topic of blockchains
IBM Institute for Business Value: Building trust in government
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 government leaders on their experiences and expectations with blockchains.
18Feb2017
Blockchain Trend Report, | External

11. Blockchain Trend Report, 2017 | External
Adoption Trends
IBM surveyed 200 healthcare executives – both payers and providers in 16 countries
IBM Institute for Business Value: Healthcare rallies for blockchains: Keeping patients at the center
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 healthcare executives on their experiences and expectations with blockchains.
18Feb2017
Blockchain Trend Report, | External

12. Selected public IBM Websites, resources and links
Important Links
Selected public IBM Websites, resources and links
IBM Video Blockchain in 3 Minutes
On ibm.com
IBM: Blockchain (main website)
What is Blockchain
Use Cases
How blockchain can apply to your business
About the IBM Blockchain ecosystem
How to get started
Blockchain Offerings
Blockchain on Bluemix
Blockchain on developerWorks
DeveloperWorks: Blockchain
IBM Blockchain Newsroom & Press Kit
IBM Institute for Business Value Studies on Blockchain
IBM Banking: Ginni Rometty's keynote at the FinTech Ideas Festival 2017
Hyperledger Pro: Hyperledger Project
“The 3 courses in this learning path can help you quickly understand IBM’s direction with blockchain technology and get hands-on experience with a sample use case. Learn how to create your own private blockchain network on IBM Bluemix and add code for smart contracts using the chaincode interface from the Hyperledger Fabric.” IBM: Courses: IBM Blockchain for developers
This page provides you with some links to information and resources regarding this trend. The blue text is hotlinked, so just right click and then “open Hyperlink” go to the website.
IBM: What is Blockchain
18Feb2017
Blockchain Trend Report, | External

13. Selected videos about BlockChain
Important Links
Selected videos about BlockChain
IBM Videos
IBM Think Academy: Blockchain, How it works
Making Blockchain Ready for Business
Making Blockchain Real for Business
IBM on Blockchain
Building a blockchain for business with the Hyperledger Project
DC Blockchain Summit – Keynote: Arvind Krishna, IBM
Blockchain in IBM Global Financing
Blockchain Demo with IBM z Systems
Other Videos
Blockchain technology: Transforming the way business transactions are conducted
Blockchain: Transforming the Future of Global Business
The Bitcoin and Blockchain Technology Explained
Blockchain technology
Deutsche Bank - Blockchain: Overview. Relevance. Outlook
IBM: Making Blockchain Ready for Business (video)
IBM: Blockchain technology: Transforming the way business transactions are conducted
This page provides you with a list of Additional Information and Resources. The blue text is hotlinked, so just right click and then “open Hyperlink” go to the website.
18Feb2017
Blockchain Trend Report, | External

14. Additional links to resources found on the Internet
Important Links
Additional links to resources found on the Internet
Beckers Hospital Review:  9 things to know about blockchain in healthcare
CIO:  Blockchain is busting out of its britches
ComputerWorld:  5 enterprise-related things you can do with blockchain technology today
Forbes:  Blockchain And Its New Rainmakers
Ginni Rometty, IBM (via WSJ):  How Blockchain Will Change Your Life
Huffington Post:  5 Blockchain Applications That Are Shaping Your Future 
MIT Sloan:  How Blockchain Will Change Organizations
Security Intelligence:  In 2017, Blockchain Gets Serious
TechRepublic:  Video: The top 5 things to know about the blockchain
VentureBeat:  How blockchain can change the future of IoT
VentureBeat:  IBM goes all-in on blockchain: Launches app- making ecosystem
Wired:  Move over Bitcoin, the blockchain is only just getting started
Becker’s:  9 things to know about blockchain in healthcare
Finextra:  Blockchain publications that should be on your reading list - How many have you read?
This page provides you with a list of Additional Information and Resources. The blue text is hotlinked, so just right click and then “open Hyperlink” go to the website.
IBM Security Intelligence:  In 2017, Blockchain Gets Serious
18Feb2017
Blockchain Trend Report, | External

15. Selected public-facing IT analyst websites and resources
Important Links
Selected public-facing IT analyst websites and resources
“We believe the blockchain ledger space will be a marathon versus a sprint given the myriad of technology, business process, and regulatory opportunities and challenges that need to be addressed. ” Bill Fearnley, research director, IDC Financial Insights: Blockchain Technology: Disruptive Forces in Financial Services, According to IDC
451 Research: Blockchain (search)
Forrester: Blockchain (search)
Frost & Sullivan: Blockchain (search)
IDC: Blockchain (search)
Gartner: Blockchain (search)
MarketsandMarkets: Blockchain (search)
TBR: Blockchain (search)
“The healthcare industry is primed for a radical rethink of its digital infrastructure. The current infrastructure does not support the security or interoperability requirements of connected lives. Blockchains can provide technology solutions to these challenges: interoperability, integrity and security, and portable user-owned data.” Frost & Sullivan: Blockchain Applications in the Healthcare Industry
This page provides you with some links to additional analyst information and resources regarding this trend. The blue text is hotlinked, so just right click and then “open Hyperlink” go to the website.
18Feb2017
Blockchain Trend Report, | External

16. Public searches of selected media websites
Important Links
Public searches of selected media websites
Economist: A rush to patent the blockchain is a sign of the technology’s promise
American Banker Blockchain (search)
CIO.com: Blockchain (search)
ComputerWorld: Blockchain (search)
Economist: Blockchain (search)
eWeek: Blockchain (search)
Forbes: Blockchain (search)
Fortune: Blockchain (search)
Financial Times: Blockchain (search)
InformationWeek: Blockchain (search)
InfoWorld: Blockchain (search)
SD Times: Blockchain (search)
Wired: Blockchain (search)
“Blockchain entrepreneurs are working towards a future where everything from renting an apartment to betting on an election is guaranteed by a distributed public ledger. Is this the beginning of the end for the middlemen?.” WIRED: Beyond bitcoin. Your life is destined for the blockchain
This page provides you with some links to additional information and resources regarding this trend from Media sites. The blue text is hotlinked, so just right click and then “open Hyperlink” go to the website.
18Feb2017
Blockchain Trend Report, | External

17. More Insights on Technology Trends are Available
Other slide decks in this 2017 Trend Report series have been posted to Slideshare
You are also invited to check out the following IBM websites and resources
IBM Academy of Technology
IBM Institute for Business Value
IBM Research and Research News and 5 in 5
IBM’s THINK blog
IBM Think Academy on YouTube
18Feb2017
Blockchain Trend Report, (External Version)