These slides were shared with attendees of the Digital Currency Group Enterprise Blockchain Workshop on Oct. 25, 2017.

1. OCT 25 2017
Welcome to DCG’s
Enterprise Blockchain
Workshop

2. 2
AGENDA
Details Time
Introductions 2:00 - 2:10 pm
State of Enterprise Blockchain 2:10 - 2:30 pm
Theme 1: Protocol and Platform Choices 2:30 - 3:30 pm
Break 3:30 - 3:45 pm
Theme 2: Opportunities and Challenges for Enterprise
Adoption
3:45 - 4:15 pm
Theme 3: Emerging Themes in Enterprise Blockchain 4:15 - 5:00 pm
Review and Wrap Up 5:00 - 5:30 pm

3. 3
WHAT WE’RE SEEING
Key Themes for Corporate Blockchain Activity
• Interest in Enterprise Blockchain Growing Outside of Financial Services
• Blockchains with Native Payments
• Financial Institutions are Responding to Client Demand for Digital Currency Services
• Startups and Incumbents Partnering to Deliver Projects
• Still Many Unanswered Questions
• Most Fortune 1000 organizations are dedicating time and energy to investigating blockchain
• Use cases for blockchain technology include B2B payments, financial applications, provenance and
supply chain tracking, identity, and more
• We’re seeing an increasing number of projects leave the lab and go into pilot, although the
boundaries of what constitutes a POC v pilot are not well defined

4. 4
INTEREST IN ENTERPRISE BLOCKCHAIN
GROWING OUTSIDE FINANCIAL SERVICES
• The last two months alone have seen 60+ blockchain projects announced, many of them by corporates who are
publicly sharing their activities in the space for the first time
• Interest in the technology from outside of financial services is growing – corporates want to solve difficult
coordination, fraud, and efficiency problems with blockchain technology as one component
• Despite early experimentation, adoption of enterprise blockchain will be a long process, with early leaders fighting
now to establish competitive positions
• Consortia and group experimentation will play an increasingly important role in expanding projects to scale
2015
As more industries begin to build blockchain platforms, networks will be critical to
connect corporates in the same value chain
2016 2017
Blockchain Experimentation Continues to Spread Across Industries
Financial Institutions Healthcare Industrials Agriculture

5. 5
New opportunities are emerging for companies to extend payments capabilities and
infrastructure into enterprise blockchain applications
• Most enterprise blockchain applications require a payments or transaction layer and a native payment
mechanism, leading to an increasing need for financing partners in blockchain projects
• Supply chain, compliance, audit, and auto are examples where financing and payments is a core component of the
process being optimized with blockchain; new partnership models emerging
• Being the service provider for the payments or the transaction layer of these use cases is an emerging
opportunity for banks to deploy capital in new ways and potentially develop new revenue streams
Supply Chain Transaction Cross Border Payments
• Brighann Cotton sent cotton shipment from
Australia to US, tracked on the Skuchain
blockchain
• Used smart contract to release payment to Walls
Fargo upon arrival
• Settling transactions between Asia Pacific
countries using the Stellar blockchain and its
native digital currency Lumens
• Enabling instant exchange across regional
currencies via cryptocurrency, but users won’t
have to touch Lumens directly
BLOCKCHAINS WITH NATIVE PAYMENTS

6. 6
Global financial institutions are beginning to test a variety of digital currency
products and services
• Retail and institutional investor interest in digital currencies is growing but service providers who can provide
institutional-grade infrastructure and service are limited
• Multiple large FI’s have publicly announced or launched services that provide their customers with exposure to
digital currencies as an asset or payment mechanism
• Most projects begin in wealth management groups or asset management groups in a small pilot program
Incumbent Startup Use Case Details
• Payment Rail
• In 2016, announced the bank was enabling
employees to use the Ripple network to send
cross-border payments
• In 2017, accounced that clients could view
Coinbase digital currency holdings alongside
Fidelity asset balances
• Asset
Management
FI’s RESPONDING TO CLIENT DEMAND
FOR DIGITAL CURRENY SERVICES
• In 2017, Japan-based SBI announced they will
launch a digital currency buying platform
• Asset
Management

7. 7
STARTUPS AND INCUMBENT VENDORS
PARTNERING TO IMPLEMENT SOLUTIONS
• Many trials and POCs involve partnerships between startup or specialized systems integrators, and larger
systems integrators such as IBM for deploying solutions at scale
• Experienced technology providers can provide the expertise needed to evaluate and change legacy processes
associated with “pre-blockchain” infrastructure
• Startups who have incumbent vendor relationships are at an advantage when it comes understanding the
challenges for established companies wanting to adopt blockchain technology
Partnerships between specialized and larger systems integrators can help speed time
to market
• IBM and SecureKey Technologies partnered to help organizations build digital identity
and attribute-sharing ecosystems among organizations that already share and validate
consumer data. The new service enables secure and private attribute sharing through a
network of trusted parties including banks, credit bureaus, telecommunications
companies, government, and more.
• IBM provides the IBM Blockchain Platform for organizations to quickly get on the
network with minimal effort and blockchain operations experience
• As SecureKey continues to expand the digital identity network across existing
customers in Canada, SecureKey will work with IBM to introduce the digital identity
network to other jurisdictions around the world
+

8. 8
STILL MANY UNANSWERED QUESTIONS
Legacy IT
Systems
• Large FIs working with multi-decade old legacy systems
• These systems are inefficient, but reliable
• Significant risk comes with altering proven infrastructure
• Significant regulatory barriers and uncertainty across industries such as
healthcare, finance, insurance, and industrials
• Many company cultures will be resistant to decentralized processes
• Need clearer ROI metrics which will emerge after initial projects
• End goal important: cost cutting, new revenue opportunities
Industry and
company barriers
Clear business
case lacking
• Most or all participants in any supply chain will need to contribute
information for the solution to be successful
• Will be difficult to get large incumbents to engage with startups seeking
to disintermediate them or reduce their economic position
Stakeholder
coordination
• As a new technology for managing compliance and audit functions, there
are many legal issues that will need to be settled (for example, what
happens if a smart contract executes in a way neither party anticipated?)
• Regulators and auditors need to get comfortable with the technology for
businesses to feel comfortable substituting out legacy processes
Open legal
questions

9. 9
PROTOCOL AND PLATFORM CHOICES
1.
2.
HYPERLEDGER
BRIAN BEHLENDORF, HYPERLEDGER FOUNDATION
THE USE OF 3RD PARTY ENTERPRISE BLOCKCHAIN FRAMEWORKS
ALOK BHARGAVA, CAMBRIDGE BLOCKCHAIN
3.
BUILDING AN IDENTITY STANDARD
ROUVEN HECK, UPORT

10. 10
OPPORTUNITIES AND CHALLENGES FOR
ENTERPRISE ADOPTION
1.
2.
ECOSYSTEM DEVELOPMENT
SHARON LADAY, IBM
COLLABORATING FOR ENTERPRISE ADOPTION
ARIEL MUSLERA, RSK
3.
THE BLOQ PERSPECTIVE ON ENTERPRISE ADOPTION
JEFF GARZIK, BLOQ

11. 11
EMERGING THEMES
1.
2.
PRIVACY & CONFIDENTIALITY
JACK GAVIGAN, ZCASH
IOT AND BLOCKCHAIN
SHILPI KUMAR, FILAMENT
3.
DIGITAL ASSETS ACROSS BLOCKCHAINS
SEAN MOSS-PULTZ, BITMARK
4.
INNOVATING B2B PAYMENTS USING DIGITAL CURRENCIES
TONI GALLIPI, BITPAY