Traction Deep Dive on the Enterprise Blockchain

1. Data Deep Dive: The
Enterprise Blockchain

2. Is the Blockchain Really Over,
Or Just Getting Started?

3. Bitcoin Price Chart
Search popularity for “blockchain”

4. The ICO Boom, Then . . .
$0B
$8B
$15B
$23B
$30B
0
300
600
900
1,200
2015 2016 2017 2018
# of ICOS Total Raised
$21.5
$6.6
$0.9$0.0
1,075
453
51
77
51
453
1,075
Source: CoinSchedule

5. . . . and Now
Source: CoinSchedule

6. Still an Electricity Hog
(enough to power 4.3 million homes)

7. Where’s the Beef?
“A particular concern, given the amount of money and
time spent, is that little of substance has been
achieved. Of the many use cases, a large number are
still at the idea stage, while others are in development
but with no output.
The bottom line is that despite billions of
dollars of investment, and nearly as many
headlines, evidence for a practical scalable use
for blockchain is thin on the ground.”
—McKinsey report on Blockchain,
January 2019

8. And Yet The Technology Is Real,
Progress Is Being Made. . .

9. Across corporations, startups,
protocols, + platforms

10. Let’s Take A Step Back and
Assess The Situation
• Hundreds of Projects + Startups
• Attracting lots of technical talent
• Solves many thorny problems around trust + transparency
• Growing set of industry use cases

11. A 2018 Deloitte Survey of
enterprise executives:
• 84% believe blockchain technology will
eventually become mainstream
• 74% believe there is a compelling
business case for blockchain
Source: Deloitte

12. 43% consider blockchain a
critical priority
Source: Deloitte

13. What is the Blockchain?
A. Distributed Ledger
B. Distributed Database
C. Decentralized Trust Network
D. All of the Above

14. When is the blockchain the
right answer?
• When trust is difficult or expensive to achieve
• There is a real business problem
• Complex transactions or inefficient business processes
• Coordination between multiple parties is involved
• A business network exists
• Assets or rights are being transferred

15. When is the blockchain
NOT the answer?
When centralized trust or current technologies already work!

16. “Blockchain is Silicon Valley raising the pirate flag
again and doing something interesting and slightly
dangerous and subversive.” —Chris Dixon
The Blockchain is a Return
to Permissionless Innovation
(What made the Internet Great in the first place)

17. The Big Debate: Permissioned
vs. Permissionless
“Decentralizing the network secures it. If you run a highly permissioned
system where you control the nodes, you are merely opening with the same
single point of failure weaknesses already inherent in non-blockchain
centralized systems we have today.” —Dustin Dreifuerst

18. Most Enterprises Are Going
With Permissioned Blockchains
Source: Deloitte

19. “Cryptocurrencies—coins and tokens built into specific
blockchains—provide a way to incentivize individuals
and groups to participate in, maintain, and build
services.” —Chris Dixon
Tokens and Services
Can tokens do for cloud-based services
what open source did for software?

20. Where is Blockchain Being
Used?
Source: Deloitte

21. Low-Hanging Fruit
Source: Deloitte
Trade Finance
Identity/Know Your Customer (KYC)
Health Data
Supply Chain
Insurance
Loyalty Programs
Food Safety
Provenance
Distributed Energy
Digital Identity Services
Digital Asset Management
Royalty Payment Distribution
Cross-Border Payments
Smart Contracts
Custody & Asset Tracking
Transaction Settlements
Regulatory Compliance
IoT Machine-as-a-Service
Patient data ownership
Medical data aggregation
Insurance claims clearing
Clinical supply chains
Provider credentials
Value-based care payments

22. Industry Pilots
Source: Deloitte
Label-as-a-service for protecting the
supply chain with tamper-evident labels
Buhler—Tracking crops from Farm to ForkInsurewave/Maersk—Marine insurance
Royalty payments to game publishers
Rezjet—Payment reconciliation for online travel

23. The U.S. is lagging adoption
Source: Deloitte

24. How Can Your Company
Get Started?
1. Find the blockchain enthusiasts inside your company
2. Ask them to help identify problems that can be solved with the blockchain
3. Find the right tools and technologies for your industry
4. Join a consortium
5. Start a pilot

25. Big Company Platforms

26. Check Out These Enterprise
Blockchain Startups

27. Research More Blockchain
Startups on the Traction Platform

28. 2019 Traction Tech Council
Agenda