BLOCK512 is a blockchain consulting firm that provides insights, advisory services, and assistance with accelerating blockchain-optimized solutions. The document defines key blockchain concepts like distributed ledgers, consensus, smart contracts, and different types of cryptocurrencies. It also notes the significant estimated savings and investment that blockchain adoption could provide for banks and financial technology companies. The final sections discuss questions organizations should consider around how blockchain may impact their competitors, customers, processes, business models and leadership strategies.

1. BLOCK512 is a platform agnostic consortium of experts providing Insights,
Advisory, and Acceleration services for blockchain optimized solutions with
viable business models.
BLOCKCHAIN
A distributed database with blocks containing time-stamped
transaction information and digitally linked to those around them to
create a tamper-proof chain.
CONSENSUS
The process in which a group of peer devices responsible for
maintaining a distributed ledger use to reach a majority consensus
on the ledger’s contents.
PEER-TO-PEER (P2P)
Peer-to-peer (P2P) refers to the decentralized interactions between
two or more parties in a highly interconnected network. P2P
participants deal directly with each other through a single mediation
point.
SMART CONTRACT
Smart contracts use automated computer protocols to emulate the
logic of contractual clauses and legal agreements. They facilitate,
verify, and enforce the negotiation or performance of a legal
agreement between two or more entities including (P2P, M2M).
FIAT CURRENCY
Legal tender with it’s value backed by an issuing government versus
commodity-based money tied to physical goods such as gold or
silver. Sample fiat currencies are U.S. dollar, the euro and most
world currencies.
CRYPTO CURRENCY
A digital currency where mathematics and encryption regulate the
creation of units of currency and verify the transfer of funds.
Samples include Bitcoin and ether.
BITCOIN
A cryptocurrency based on proof-of-work blockchain where miners
generate e-coins through a mathematical process of solving
cryptographic problems using computing hardware.
ETHER
A form of payment made by clients on Etheruem to the machines
executing the requested operations. Ether is the incentive ensuring
developers write quality applications (wasteful code costs more),
and that the network remains healthy through proof-of-stake
(people are compensated for their contributed resources).
CONTROLLED
Current banking and modern systems.
Centralized database and control.
Single point of failure or exposure.
CENTRALIZED NETWORK
PRIVATE & PERMISSIONED
Trusted parties doing business together.
Controlled system with permissions.
Additional access through invitation.
DECENTRALIZED NETWORK
PUBLIC & PERMISSIONLESS
Open network where anyone can join.
“Trustless” transactions shared
transparent, and run between all devices
DISTRIBUTED NETWORK
$8 - $12 Billion estimated
annual savings for banks
leveraging blockchain.
SAVINGS
$8B
Estimated $1.4 billion
FinTech firms invested in
blockchain in 2016
INVESTMENT
$1.4B
28 of top 30 banks have
invested in a proof-of-
concept.
PROOF-OF-CONCEPT
28
BLOCK 512 info@block512.com +1.512.203.7711
SAMPLE BLOCKCHAIN DEFINITIONS
THE FUTURE OF BLOCKCHAIN
“Just as the PC, internet, and mobile phones
transformed business and society; Blockchain is a
key enabler for monetizing and securing the
promises of big data, IoT, and everything smart.”
– Jeremy Drzal, CEO and Founder, BLOCK 512
San Antonio, TX
April 12, 2017
Blockchain Transformation, Moving Beyond Bitcoin

2. JEREMY DRZAL
512.203.7711
jeremy@block512.com
The profound and incremental application of technology, processes, and
business models leveraging blockchain technologies for positive impact
across business, government, and society.
BLOCKCHAIN TRANSFORMATION™
Competitors, Suppliers, and Partners
Y / N Do you know what your top competitors are doing with blockchain?
Y / N If your competitors launched blockchain solutions, would your business advantage be at risk?
Y / N Do you know what your suppliers and partners are doing with blockchain?
Y / N Do you rely on suppliers and partners to provide innovation?
Y / N Would you replace existing suppliers if blockchain applications enabled cost savings, higher security, or a stronger competitive advantage?
Customers, Product, and Resources
Y / N Do you know how your customers are using and adopting blockchain?
Y / N Have you defined what your products and services look like in a blockchain enabled world?
Y / N Could you manage an internal or client blockchain project request?
Y / N Do you have teams actively investigating or engaging in blockchain pilots?
Y / N Are your blockchain resources limited or at risk of being recruited?
Process Improvement
Y / N Do you know what part of your organization could benefit or be most impacted through blockchain applications?
Y / N Do you have an internal innovation team assessing ways to disrupt or improve process?
Y / N Have you evaluated how internal processes can be optimized with blockchain?
Business Model and Market Analysis
Y / N Have you evaluated the potential impact blockchain can have on your business model?
Y / N Have you completed a SWOT/SLOT analysis (Strength's, Weakness/Liability, Opportunity, Threat)
Y / N Have you completed a PEST/PESTLE analysis (Political, Environmental,
Y / N Have you evaluated the impact of blockchain applications to your legal framework and IP portfolio?
Leadership and Strategy
Y / N Does your leadership team have a collective understanding of blockchain, bitcoin, and smart contracts?
Y / N Would blockchain enhanced applications provide incremental advantages to your business and operations?
Y / N Do you have a Blockchain Transformation™ strategy?
FROM INSIGHTS TO ACTION: BLOCKCHAIN READINESS™