Blockchain for Business

The Pragmatic Guide to Driving Value and Disrupting Markets with Blockchain

"Blockchain?s potential to transform businesses has generated a tremendous amount of excitement across industries. However, it can be difficult for decision makers to develop a practical approach to blockchain for their specific business requirements. By identifying and clearly describing the value of blockchain for enterprises, as well as the processes required to harness blockchain to achieve business objectives, Blockchain for Business presents a startlingly concise yet comprehensive roadmap for business leaders. This book is an excellent resource for anyone looking to leverage blockchain to transform their business."

? Dr. Won-Pyo Hong, President & CEO of Samsung SDS

?Much has been written about blockchain in the past few years: what it is and what it is not (at various levels of detail), as well as the technology?s long-term strategic value for companies, industries, and economies. However, what we?ve been missing is a practical, operational, ?how to? set of steps for creating, implementing, and operating a blockchain-based solution. This book aims to fill that gap. It?s an invaluable tool for anyone ready to take the plunge and start taking advantage of this remarkable technology.?

?Irving Wladawsky-Berger, research affiliate, MIT; columnist, WSJ CIO Journal; VP Emeritus, IBM

"I will never be able to adequately express how useful this book will be to my class. In addition the great chapters on cybersecurity, I loved the Integration Models, especially 'Coexistence with Systems of Record.' Legacy integration with Blockchain is a critical barrier, and you nailed it!"

?Thomas Doty, JD, LLM - Adjunct Professor, University of New Hampshire Law

Blockchain enables enterprises to reinvent processes and business models and to pursue radically disruptive applications. Blockchain for Business is a concise, accessible, and pragmatic guide to both the technology and the opportunities it creates.

Authored by three experts from IBM?s Enterprise Blockchain practice, it introduces industry-specific and cross-industry use cases, and reviews best-practice approaches to planning and delivering blockchain projects. With a relentless focus on real-world business outcomes, the authors reveal what blockchain can do, what it can?t do yet, and where it?s headed.

• Understand five elements that make blockchain so disruptive: transparency, immutability, security, consensus, and smart contracts
• Explore key use cases: cross-border payments, food and drug safety, provenance, trade finance, clinical trials, land registries, and more
• See how trusted blockchain networks are facilitating entirely new business models
• Compare blockchain types: permissioned, permissionless, private, public, federated, and hybrid
• Anticipate key technical, business, regulatory, and governance challenges
• Build blockchain financial models, investment rubrics, and risk frameworks
• Organize and manage teams to transform blockchain plans into reality

Whether you?re a senior decision maker, technical professional, customer, or investor, Blockchain for Business will help you cut through the hype and objectively assess blockchain?s potential in your business.

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Foreword xii

Preface xvii

Acknowledgments xxiii

About the Authors xxvii

Chapter 1: Introduction to Blockchain 1

Blockchain Beliefs 2

Enterprise Blockchain 3

Why Blockchain Matters 4

The Trailblazers 5

Blockchain for Good 9

Blockchain Questions from Business and Technology Leaders 12

Chapter Summary 16

References 17

Chapter 2: Opportunities and Challenges 19

Disruptive Elements 20

Opportunities 25

Challenges 40

Chapter Summary 47

References 47

Chapter 3: Understanding the Technology Landscape 49

Blockchain: A Technical Perspective 50

Blockchain for Enterprises 56

Essential Maturity Imperatives for Enterprise Blockchain 66

Token Revolution 68

Understanding Digital Asset (Token) Fungibility: Opportunities and

Considerations for Meaningful and Sustainable Blockchain-Powered

Chapter Summary 85

References 86

Chapter 4: Business of Business Models 87

Path to Blockchain Enterprise Adoption: A Prescriptive Approach 87

Business Modeling and Design 92

Chapter Summary 104

Chapter 5: Developing a Governance Structure for Blockchain Networks 105

Governance Structure and Landscape 109

SCTrustNet 118

Chapter Summary 121

Chapter 6: Building a Team to Drive Blockchain Projects 123

Enterprise Structures in a Decentralized Economy 124

Roles of an Enterprise in a Blockchain Network 126

Building an Effective Team 128

Intraprise Synergy 132

An Example of a Blockchain Project Team 134

Chapter Summary 135

Chapter 7: Understanding Financial Models, Investment Rubrics, and Model Risk Frameworks 137

Understanding Blockchain Project Financial Fundamentals 139

Blockchain Investment Rubric 143

Return on Investment Modeling 148

Risk Modeling 153

Chapter Summary 159

References 160

Chapter 8: Looking Ahead: What Does the Future Hold? 163

The Network of Networks 164

Blockchain at the Nexus of Technology 167

Blockchain Opportunities and Challenges: What Lies Ahead? 173

Overall Summary 176

References 180

Index 183

Jai Singh Arun is a senior program director at IBM corporate strategy team and drives strategic product management and business development of IBM Research innovations within Blockchain, Artificial Intelligence, and Cybersecurity areas. He has over two decades of global, cross-functional business and emerging technologies leadership experience, building multi-million dollar software, systems, and services businesses.

Jerry Cuomo leads IBM’s engineering and product initiatives on Blockchain. He holds the prestigious title of IBM Fellow and is recognized as one of the most prolific contributors to IBM’s software business, producing products and technologies that have profoundly impacted how the industry conducts commerce over the World Wide Web.

Nitin Gaur is an IBM distinguished engineer and worldwide director and he leads IBM’s global blockchain labs and services. He is responsible for strategy and developing offerings of IBM’s digital currency technologies, such as stable coins and digital fiat. He pioneered IBM’s enterprise blockchain strategy and advised IBM decision makers, business partners, and clients on the use of the technology.

• A team of IBM’s leading blockchain consultants focus on real business outcomes and transformations
• Understand blockchain technology, ecosystems, business models, implementation strategies, governance, and emerging capabilities
• Explore a wide spectrum of industry-specific and cross-industry use cases