Blockchain for Business

The Pragmatic Guide to Driving Value and Disrupting Markets with Blockchain "Blockchain’s potential to transform businesses has generated a tremendous amount of excitement across industries. However, it can be difficult for decision makers to develop a practical approach to blockchain for their specific business requirements. By identifying and clearly describing the value of blockchain for enterprises, as well as the processes required to harness blockchain to achieve business objectives, Blockchain for Business presents a startlingly concise yet comprehensive roadmap for business leaders. This book is an excellent resource for anyone looking to leverage blockchain to transform their business." — Dr. Won-Pyo Hong, President & CEO of Samsung SDS “Much has been written about blockchain in the past few years: what it is and what it is not (at various levels of detail), as well as the technology’s long-term strategic value for companies, industries, and economies. However, what we’ve been missing is a practical, operational, ‘how to’ set of steps for creating, implementing, and operating a blockchain-based solution. This book aims to fill that gap. It’s an invaluable tool for anyone ready to take the plunge and start taking advantage of this remarkable technology.” —Irving Wladawsky-Berger, research affiliate, MIT; columnist, WSJ CIO Journal; VP Emeritus, IBM "I will never be able to adequately express how useful this book will be to my class. In addition the great chapters on cybersecurity, I loved the Integration Models, especially 'Coexistence with Systems of Record.' Legacy integration with Blockchain is a critical barrier, and you nailed it!" —Thomas Doty, JD, LLM - Adjunct Professor, University of New Hampshire Law Blockchain enables enterprises to reinvent processes and business models and to pursue radically disruptive applications. Blockchain for Business is a concise, accessible, and pragmatic guide to both the technology and the opportunities it creates. Authored by three experts from IBM’s Enterprise Blockchain practice, it introduces industry-specific and cross-industry use cases, and reviews best-practice approaches to planning and delivering blockchain projects. With a relentless focus on real-world business outcomes, the authors reveal what blockchain can do, what it can’t do yet, and where it’s headed.- Understand five elements that make blockchain so disruptive: transparency, immutability, security, consensus, and smart contracts- Explore key use cases: cross-border payments, food and drug safety, provenance, trade finance, clinical trials, land registries, and more- See how trusted blockchain networks are facilitating entirely new business models- Compare blockchain types: permissioned, permissionless, private, public, federated, and hybrid- Anticipate key technical, business, regulatory, and governance challenges- Build blockchain financial models, investment rubrics, and risk frameworks- Organize and manage teams to transform blockchain plans into reality Whether you’re a senior decision maker, technical professional, customer, or investor, Blockchain for Business will help you cut through the hype and objectively assess blockchain’s potential in your business. Register your product for convenient access to downloads, updates, and/or corrections as they become available.

Jai Singh Arun is a senior program director at IBM corporate strategy team and drives strategic product management and business development of IBM Research innovations within Blockchain, Artificial Intelligence, and Cybersecurity areas. He has over two decades of global, cross-functional business and emerging technologies leadership experience, building multi-million dollar software, systems, and services businesses. Jerry Cuomo leads IBM’s engineering and product initiatives on Blockchain. He holds the prestigious title of IBM Fellow and is recognized as one of the most prolific contributors to IBM’s software business, producing products and technologies that have profoundly impacted how the industry conducts commerce over the World Wide Web. Nitin Gaur is an IBM distinguished engineer and worldwide director and he leads IBM’s global blockchain labs and services. He is responsible for strategy and developing offerings of IBM’s digital currency technologies, such as stable coins and digital fiat. He pioneered IBM’s enterprise blockchain strategy and advised IBM decision makers, business partners, and clients on the use of the technology.

Foreword xii Preface xvii Acknowledgments xxiii About the Authors xxvii Chapter 1: Introduction to Blockchain 1 Blockchain Beliefs 2 Enterprise Blockchain 3 Why Blockchain Matters 4 The Trailblazers 5 Blockchain for Good 9 Blockchain Questions from Business and Technology Leaders 12 Chapter Summary 16 References 17 Chapter 2: Opportunities and Challenges 19 Disruptive Elements 20 Opportunities 25 Challenges 40 Chapter Summary 47 References 47 Chapter 3: Understanding the Technology Landscape 49 Blockchain: A Technical Perspective 50 Blockchain for Enterprises 56 Essential Maturity Imperatives for Enterprise Blockchain 66 Token Revolution 68 Understanding Digital Asset (Token) Fungibility: Opportunities and Considerations for Meaningful and Sustainable Blockchain-Powered Chapter Summary 85 References 86 Chapter 4: Business of Business Models 87 Path to Blockchain Enterprise Adoption: A Prescriptive Approach 87 Business Modeling and Design 92 Chapter Summary 104 Chapter 5: Developing a Governance Structure for Blockchain Networks 105 Governance Structure and Landscape 109 SCTrustNet 118 Chapter Summary 121 Chapter 6: Building a Team to Drive Blockchain Projects 123 Enterprise Structures in a Decentralized Economy 124 Roles of an Enterprise in a Blockchain Network 126 Building an Effective Team 128 Intraprise Synergy 132 An Example of a Blockchain Project Team 134 Chapter Summary 135 Chapter 7: Understanding Financial Models, Investment Rubrics, and Model Risk Frameworks 137 Understanding Blockchain Project Financial Fundamentals 139 Blockchain Investment Rubric 143 Return on Investment Modeling 148 Risk Modeling 153 Chapter Summary 159 References 160 Chapter 8: Looking Ahead: What Does the Future Hold? 163 The Network of Networks 164 Blockchain at the Nexus of Technology 167 Blockchain Opportunities and Challenges: What Lies Ahead? 173 Overall Summary 176 References 180 Index 183