Successfully reported this slideshow.

8 Decimal Capital Enterprise Solution Overview

0

Share

Upcoming SlideShare
Demystifying blockchain
Demystifying blockchain
Loading in …3
×
1 of 33
1 of 33

8 Decimal Capital Enterprise Solution Overview

0

Share

Download to read offline

Read 8 Decimal’s latest deck for a comprehensive overview of enterprise blockchain solutions and to learn about its past, present and future developments. The deck also covers numerous use-cases and case studies of blockchain enterprise implementation, including IBM, OpenBazaar, ecommerce, retail, supply chain management, Tradelens, and energy management, among others, to name a few.

Read 8 Decimal’s latest deck for a comprehensive overview of enterprise blockchain solutions and to learn about its past, present and future developments. The deck also covers numerous use-cases and case studies of blockchain enterprise implementation, including IBM, OpenBazaar, ecommerce, retail, supply chain management, Tradelens, and energy management, among others, to name a few.

More Related Content

Related Books

Free with a 14 day trial from Scribd

See all

8 Decimal Capital Enterprise Solution Overview

  1. 1. Disclaimer: The information contained in this document and its included confidential information should not be disclosed. In addition to the fund investors, no person shall distribute, copy, print or use any part of this document set out for any content thereof Enterprise Blockchain Remi Gai, Venture Associate
  2. 2. Agenda 2 By 2030, blockchain will have a value-add of over $3 trillion worldwide from cost reductions and revenue gains (Gartner). Overview, Definition, Importance, Landscape, Costs/Benefits/Risks, Advantages/Disadvantages compared to public blockchains. Different Use Cases, Market Opportunities and Example Companies. Current State of Enterprise Blockchain Adoption, Obstacles, Growth Factors, Forecast of Blockchain Technology Evolution and Outlook of Adoption. 1 3 2
  3. 3. Blockchain Came in Two Phases Blockchain 1.0: Blockchain was first introduced in 2009 with its first application, Bitcoin. In its simplest form, Blockchain is a decentralized digital database, in which untrusted parties can share digital history and reach consensus without a middleman. Benefits: Benefits: Decentralization Transparency Programmability Security Immutability EfficiencySelf-Execution Audibility Blockchain 2.0: Introduced by Ethereum with smart contracts, the utilization of blockchain has grown beyond cryptocurrencies, enabling interorganizational use cases. This enables for exchange of value in a truly peer-to-peer fashion, without the involvement of middlemen, and the potential for a programmable economy.
  4. 4. Decentralized Apps Have a Different Infrastructure Traditional Web Applications Decentralized Applications Web App Front End dApp Front End Web App Back End dApp Back End API Smart Contract Database Blockchain
  5. 5. Humans need regulated social interactions enforced by laws to make people accountable for having a sense of control (ex: land registry needs an ultimate central authority as guarantor). The Internet - illusion of disintermediation, but controlled by centralized giants. Humans need selfish, controlled and regulated complex social interactions to fulfill their basic needs for survival. Central authorities won’t disappear - public blockchain could be an interim solution, but eventually humans will create a central authority with people who are accountable for safety and security to fulfilling their lowest-level basic needs. Public Blockchains Won’t Replace Central Authorities
  6. 6. Consortium Decentralization: Hybrid of public and private model. The network is maintained by trusted members from different organizations. Public Decentralization: Any public participants can join the network and open, read and write in a permissionless mode. Private Decentralization: All the participants are known and part of internal business units or divisions from the same entity. Enterprise Blockchains are Private or Hybrid
  7. 7. Currently There isn’t a Clear Winner in the Enterprise Solution Landscape Permissionless (Public) Permissioned (Private/Hybrid) *List is not complete
  8. 8. Ethereum, Hyperledger and R3’s Corda are the Most Popular Blockchain Solutions for POCs in 2018 In 2017, three key blockchain technologies — Ethereum, Hyperledger and Ripple — dominated POC implementations. In 2018, R3's Corda moved into third place and Ripple fell back.
  9. 9. Overview of Popular Enterprise Blockchain Solutions ● 15 of 50 world’s biggest bank work with Ripple for real-time gross settlement system (RTGS), currency exchange and remittance network. ● Allow any currency, cryptocurrency, loyalty points and fiat currencies to easily exchanges with one-another. ● The most mature public blockchain, with over 250 members part of the Ethereum Enterprise Alliance (EEA). ● Ethereum was not designed to address enterprise framework issues such as privacy, scalability, performance, peer to peer networking etc. ● Hosted by Linux, backed by IBM and Intel. ● Hyperledger is the umbrella project that offers open source solutions that can solve many of the requirements of an enterprise Blockchain framework. ● Leads a consortium of more than 200 of the world’s biggest banks and financial institutions. ● Suit the needs of financial institutes such as speed, privacy, scalability, and security. Ethereum Hyperledger R3’s Corda Ripple
  10. 10. Staff training Lack of network adoption Enterprises Should Evaluate Blockchain Based on its Costs, Benefits and Risks Costs Benefits Risks No central authority and point of failure Traceability Immutability Improved efficiency New revenue opportunities Digitization of assets Technology Implementation Integration Ecosystem management System duplication Missed expectations Immaturity of technology Legal and compliance Lack of standards Protection and privacy
  11. 11. Private/Hybrid Blockchain Can Satisfy the Needs and Requirements of Enterprises Open to regulatory oversights Scalability Faults can quickly be fixed Trusted participants Privacy Easier governance and policy enforcement Cheaper transactions Does not involve cryptocurrencies
  12. 12. Enterprise Blockchain Have Some Disadvantages Compared to Public Blockchain Fragmented networkNot open source Limited developer resources Cooperation vs Competition Security risks as consortium grows
  13. 13. Use Case: Ecommerce/Retail Current Solution: ● Giants such as Amazon, Alibaba, and eBay have the majority of the eCommerce market, providing a trusted marketplace for buyers and sellers for a fee. ● Identity and data of users are controlled by the providers. Blockchain Solution: ● A blockchain based retail platform can cut out middlemen, allowing buyers and sellers to trade directly with each other. ● No transaction or service fees. ● Traceability on the authenticity of products. Market Size: In 2017, retail e-commerce sales worldwide amounted to 2.3 trillion US dollars and e-retail revenues are projected to grow to 4.88 trillion US dollars in 2021 (Statista 2018).
  14. 14. Example: OpenBazaar OpenBazaar is an eCommerce P2P marketplace built on Blockchain. ● Payment is conducted in Bitcoin and 50 other cryptocurrencies. ● Multi-signature escrow is utilized to prevent frauds and scammers. ● Buyers and Sellers define a mutually trusted third-party to validate trades or settle disputes. ● Users have complete control on their own data and transactions. Blockchain Value: offers free, transparent and secure trades while avoiding risks of identity and credit card data theft. Investors: Total Funding: 4 Fundings / $9M
  15. 15. Use Case: Global Transactions Current Solution: ● Billions of cross-border transactions happen on a daily basis, facilitated by banks and payment solutions such as VISA. ● Global transactions usually take days to complete and involve various costs due to multiple layers of currency exchange. Blockchain Solution: ● Cross-border transactions through cryptocurrencies are faster, more cost-efficient and secure than payments through banks and other services such as SWIFT. ● Businesses are facing less risks with reduced settlement time (payment by cards usually take several days). Market Size: In 2018, the total transaction value in Digital Payments amounts to $3.4 trillions and is expected to grow to 5.7 trillions by 2022 (Statista 2018).
  16. 16. Example: IBM’s Blockchain World Wire IBM’s universal blockchain payment solution is a new financial rail that simultaneously clears and settles cross-border payments in near real-time (10-15 seconds vs several days): ● Using blockchain technology and the Stellar protocol: The first fiat is converted into the agreed digital asset as bridge (stable coin, bank digital currency or other digital currency), then World Wire converts it back into the second asset, completing and recording the transaction on the blockchain for clearing. ● The solution has been introduced to process transactions in 12 currency corridors across the Pacific Islands and Australia, New Zealand, and the United Kingdom. Blockchain Value: Faster payment processing, lower costs, and increased efficiency. Source: IBM
  17. 17. Use Case: Supply Chain Management Current Solution: ● Involves large amount of physical paperwork with complex point-to-point communication and coordination between multiple parties. ● All these complexities lead to a slow process and high risk for error, loss and fraud. Blockchain Solution: ● Allows data and documents to be recorded and shared in a transparent way among parties. ● Tamper-proof data and documents, reducing the chances for fraud. ● Increases overall efficiency in the flow of goods and reduces clearance time and costs. ● Automated and guaranteed payment through smart contracts upon delivery of goods. Market Size: Supply Chain Management Software reached a total of $12.2B in 2017 (Gartner) and is expected to reach $22.7 billion by 2024 (Grand View Research).
  18. 18. Example: IBM and Maersk Joint Venture IBM and Maersk established a joint venture, TradeLens, in order to increase the efficiency and transparency of global trade through blockchain technology. ● The goal is to eliminate frictions in P2P communications by offering a tamper-proof supply chain management software that digitizes documents and simplifies trade workflow, with the capabilities to track millions of shipments and integrate with customs and authorities. ● The cost of global trade is estimated at $1.8 trillion annually with potential savings from more efficient process of ~10 percent (IBM). Blockchain Value: Increased flow efficiency, transparency, traceability, reduced costs, errors and risks for frauds. Source: IBM
  19. 19. Use Case: Energy Management Current Solution: ● The energy industry is highly centralized in which consumers can only buy electricity from public grid or trusted intermediaries. ● The transaction costs are high due to the involvement of multiple parties, from electricity generation to certification to sales. ● Risks of error and fraud in the data. Blockchain Solution: ● Peer-to-peer energy trading, allowing smaller power generators (solar panels etc) to join the ecosystem and eliminating the need for brokers. ● Tamper proof recording of electricity data produced or consumed by meters ● Faster payment based on energy consumption Market Size: The Global Energy Management Systems Market size is expected to reach $62.3 billion by 2023, from $25.9 billion in 2016 (Allied Market Research).
  20. 20. Example: LO3 Energy LO3 is an energy technology company that enables local communities to create, deploy and monetize energy in a peer-to- peer marketplace. ● TransActive Grid is a subsidiary of LO3 Energy, an energy transaction network built on Ethereum and hardware devices (TAGs) based on an IP partnership with Consensys. ● Locally generated green energy can be traded and monetized. ● In case of power outages and emergencies, residents can receive power from alternative sources Blockchain Value: peer-to-peer energy trading, transparency, auditability Investors: Total Funding: 3 Fundings / $6M
  21. 21. Use Case: Health Records Management Current Solution: ● Lack of trusted framework that allows two or more systems to trust each other and use health records with shared accountability. ● The error rates for successful identification or integration are high (up to 25% for hospitals and 50-60% outside of hospitals). Blockchain Solution: ● Access to cryptographically secure, immutable and real-time patient data on the blockchain. ● Secure storage of patient data with access control. ● Predefined user access rules, allowing for multi-party collaboration and access-based remuneration. Market Size: The global electronic health record market generated $22.3 billion revenue in 2017 and is predicted to progress at a CAGR of 5.4% during 2018–2023 (P&S Market Research).
  22. 22. Example: Guardtime Guartime is a data integrity service provider that stores data fingerprints (hashes) on the blockchain and allows users to verify if their data has been tampered with. ● One of the largest blockchain company by revenue and customers (focuses on multiple verticals). ● Keyless Signature Infrastructure (KSI) Blockchain as Service. ● Partnership with the Estonian government’s E-Health Foundation, in which their proprietary KSI blockchain platform ensures that healthcare record access and alteration are permanently logged for over 1 million health records. Blockchain Value: Data security and confidentiality, privacy and integrity, auditability Investors: Total Funding: 3 Fundings / $8M
  23. 23. Use Case: Syndicated Loans Current Solution: ● Lack of transparency in the process of syndicating loans to investors, and in the pricing as each party maintains its own records. ● Settlement takes time, locking up significant amount of capital. ● Booking and serving costs are very high. Blockchain Solution: ● Benefits of transparent record keeping, providing a more economically ‘optimal’ structure discovery. ● Faster settlement time in trading, improving liquidity and more efficient capital allocation. ● Lower servicing costs by reducing back office and middle office costs from booking to payoff. Market Size: Global syndicated lending totaled US$ 4.6 trillion from 9,887 transactions during full year 2017, a 12% increase in proceeds and a 3% increase in number of completed loans compared to last year (Thomson Reuters).
  24. 24. Example: Fusion LenderComm Finastra is the third largest financial technology company in the world. Its new product, Fusion LenderComm, is a syndicated lending platform built on R3’s Corda distributed ledger technology. ● Created in collaboration with large banks including BNP Paribas, BNY Mellon, HSBC, ING and State Street. ● Agents can publish loan data on the ledger, providing direct information access and self-service capabilities to lenders. ● Fusion LenderComm is promoted as an extension of its Loan IQ asset-servicing application used by agent bank administrators of syndicated loans. Blockchain Value: Real time data, transparency, reduced friction and costs in agent-to-lenders administration
  25. 25. Use Case: ERP Systems Current Solution: ● Each organization has their own set of records and version of the truth. ● Miscommunication and lack of trust between business partners make it harder for business transactions to take place. ● Transactions are costly and difficult to track. Blockchain Solution: ● A single shared ledger that can be accessed securely by all parties in the network, providing transparency and a more objective truth. ● Digitization of business processes involved in the transfer of goods. ● Reduces the costs of tracking and reporting. Market Size: Global ERP Software Market is expected to garner $41.69 billion by 2020, registering a CAGR of 7.2% during the forecast period 2014 - 2020 (Allied Market Research).
  26. 26. Example: IBM Blockchain x Oracle ERP Cloud IBM’s Oracle Enterprise applications team is working on integrating their blockchain solutions with Oracle ERP cloud. ● Takes information stored in each company’s ERP silos and makes it available in a single shared, trusted system of record across multiple companies. ● Digitization of business processes (goods, services, assets) ● A network of suppliers, customers, bankers, logistics providers and other business partners. Blockchain Value: Security, transparency, immutability, increased efficiency, reduced time, costs, and risks
  27. 27. Enterprise Blockchain Adoption Face Obstacles on the Business and Technology Sides Business: ● Struggle to identify high-value use cases and benefits. ● Struggle to align business benefits and strategy. ● Cannot estimate the impacts on business, operating and technology. ● Difficulty in working in Consortia because the benefits are not straightforward with competing interests and significant governance requirements. Technology: ● Lack of consensus algorithms that allows scalability while preserving security, reliability and privacy. ● Immaturity in interoperability. ● No common language for different smart contracts. ● Challenges in user-friendly UI/UX. ● Lack of software development toolkits.
  28. 28. Enterprise Blockchain Will Become Scalable and Compatible with Both Public and Private Blockchains
  29. 29. Blockchain Adoption Depends on Several Growth Factors Government Policy Technology Maturity Ecosystem Adoption Community Successful Use Cases
  30. 30. Blockchain Business Value Will Go Through 3 Phases Phase 1, 2018-2021: Light adoption in which enterprises are exploring ways to achieve the most impact. Phase 2, 2022-2026: Beginning of targeted large initiatives and discovery of many successful business models. Phase 3, 2027-2030: Large-scale value-add of $3 trillion worldwide from cost reductions and revenue gains. By 2030: 30% of the global customer base will be made up of things, and those things will use blockchain as a foundational technology with which to conduct commercial activity.
  31. 31. Blockchain Mainstream Adoption will Happen at a Different Pace for Different Industries 2-5 years 5-10 years >10 years Cryptocurrencies Digital Commodity Exchanges Advertising Banking and Investment Services Government Insurance Logistics and Transportation Oil and Gas DAO Internet of Things Customer Service Education Media and Entertainment Utilities Reward Models Digital Fiat Supply Chain Healthcare Life Sciences Retail Smart Assets Manufacturing
  32. 32. Enterprise blockchain is still at an early stage with little to no actual deployment. Conclusion: Blockchain is still in its Early Stage and Will Be a Disruptive Technology in Many Industries The winning use cases need to solve current problems and justify the benefits, costs, and risks. Enterprise blockchain will evolve to scale and integrate both private and public blockchains. Blockchain will be transformational in many industries with undiscovered potentials.
  33. 33. Thank you 33

×