This Kaleido Insights report identifies the enterprise opportunities from the convergence of IoT and Distributed Ledger Technologies. This abridged presentation explores its key themes through graphics. Download the full report at www.kaleidoinsights.com/reports/internet-of-trusted-things-blockchain

1. The Internet of
Trusted Things
Blockchain as the Foundation for
Autonomous Products & Ecosystem Services
January 2018
This KaleidoInsights report identifiestheenterprise opportunities
from the convergenceof IoTand Distributed Ledger Technologies.
This abridged presentation explores its key themes through
graphics. Download the full report here.
Jessica Groopman Jeremiah Owyang

2. Despite recent growth of connected devices and
networked services, the lack of shared architecture
to interconnect––never mind authenticate or
monetize––distributed machines limits value and
business model success.
Distributed Ledger Technology’s (DLT) role as an
enabler of the Internet of Things (IoT) lies in its
ability forge trust, not only at the product level, but
across an ecosystem of untrusting constituents.

3. EXECUTIVE SUMMARY
From wearables to wind turbines, the application of sensors on the ‘things’ around us has
become ubiquitous. With a projected 10 billion more devices coming online in the next 4
years and some 44ZB of data owing from them, such an internet of intercommunicating
objects requires a secure and efficient way to track the identities, interactions,
transactions, and activities of every “thing” in the network. Business and innovation
leaders may be connecting their products, but most still struggle with service-based
business models. The shift from material-based economies to information-based
economies means value is now defined by how an entire ecosystem of constituents
integrates, protects, and leverages product data contextually.
Yet, there is no universally shared architecture to interconnect, never mind authenticate or
monetize distributed machines.
Meanwhile, a recent advancement in record-keeping technology,known widely as
blockchain, introduces intriguing solutions. This Kaleido Insights report analyzes the
enterprise opportunities for blockchain-IoT convergence supporting trusted machine
identity, interactions, and transactions. Our research finds that, if developed for scale,
blockchain (often generalized as ‘distributed ledger technologies’ (DLT)) could offer IoT a
level of interoperability, transparency, and security currently absent from today’s
architectures, but essential to ecosystem-driven business models and autonomous
products and services.

4. Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices
THE INTERNET OF THINGS AND BLOCKCHAIN FACE COMMON
CHALLENGESAND MARKET DYNAMICS

5. Use Case Overview

6. Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices
BLOCKCHAIN SUPPORTSIoT PRODUCTS ACROSS THREE USE
CASE CATEGORIES

7. SCENARIOS IN WHICH PRODUCT IDENTITY SUPPORTSTRUST
ACROSS THE ECOSYSTEM
Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices

8. Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices
SCENARIOS IN WHICH PRODUCT TRANSACTIONS SUPPORT
TRUST ACROSS THE ECOSYSTEM

9. SCENARIOS IN WHICH PRODUCT INTERACTIONS SUPPORT
TRUST ACROSS THE ECOSYSTEM
Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices

10. Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices
USE CASES FOR BLOCKCHAIN-IoT CONVERGENCE INVOLVE
BOTH PRODUCT AND ECOSYSTEM

11. From the Internet of Things to
the Internet of Value

12. Source: KaleidoInsights
The Internet of TrustedThings: Blockchain as the Foundation for AutonomousProducts & EcosystemServices
IMPACTS OF BLOCKCHAIN-IoT CONVERGENCE WILL COME IN WAVES

13. Although these technologies are nascent, the sooner organizations understand
their potentials and risks, the faster and more secure their development.
Kaleido Insights recommends businesses of all types take the following steps
towards practical blockchain application. Access the full report for thematic
recommendations to help apply the above insights. Below, a preview:
q Lay the Groundwork for Grassroots Ideation
q Engage Across Community to Foster Ecosystem Collaboration
q Contribute to and Derive Value from Open (Source) Ecosystems
q Plan for Hybrid Architectures & Interoperability
q Consider UX When Defining Use Cases Across Partners
q When it Comes to “Blockchain Strategy” Invest Broad, Test Narrow
q Blockchain isn’t the Only Show in Town
BEST PRACTICES FOR ECOSYSTEM ENABLEMENT IN THE
EARLY DAYS OF BLOCKCHAIN

14. DOWNLOAD THE FULL REPORTAT
http://www.kaleidoinsights.com/reports/internet-of-
trusted-things-blockchain

15. THANK YOU!
Jessica Groopman
Automation Strategy
Jeremiah Owyang
Monetization Strategy
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expressed herein are subject to change without notice.
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