Blockchain Research PDF

Blockchain Market Shares, Market Strategies, and
Market Forecasts, 2018 to 2024
Abstract: Blockchain Markets Headed to $60

Billion Worldwide by 2024
A $706 million market worldwide in 2017 after 10 years of being on the market,
the blockchain market has evolved rather slowly. It’s biggest use has thus far been to
hide the money of criminals and terrorists. After this inauspicious beginning, it is on
the cusp of phenomenal growth, ready to reach $60 billion worldwide as it creates new
digital economic infrastructure.
Moving past a nefarious history, the blockchain market moves into rapid growth
mode as the digital economy takes hold. As the banks and finance industry move into
the modern age of real time transaction processing, blockchain is a core enabling
technology. This market segment previously has been held back in part by the
outdated aspects of the mainframe computing technology. Blockchain is spurred by
more modern ways to manage global transactions across national borders from IBM,
Microsoft, and Accenture.
Blockchain is a type of distributed ledger system providing enhanced security to
the real time digital economic process. Blockchain is comprised of blocks of digitally
recorded data.
Demand for blockchain technology is growing everywhere, for example among
the largest users of IBM cloud capacity to manage supply chains. 60 IBM cloud data
centers see blockchain as the top application driving growth.
Copyright 2018, WinterGreen Research, Inc. 1

www.wintergreenresearch.com www.wintergreenresearch.com/blog
Telephone 781-863-5078 Email: info@wintergreenresearch.com
Lexington, Massachusetts
Blockchain:
Abstract: Blockchain Markets Headed to $60 Billion Worldwide by 2024 1
Table of Contents 3
Blockchain Executive Summary 15
Blockchain Market Driving Forces 15

Blockchain Leverages Artificial Intelligence (AI) 18
Blockchain Market Shares, Dollars, Worldwide, 2017 19
Blockchain Market Forecasts 20
1. BLOCKCHAIN: MARKET DESCRIPTION AND MARKET DYNAMICS 23
1.1 Blockchain Market Description and Market Dynamics 23

Blockchain:
1.2 Blockchains: Cryptographically Secured Distributed Ledgers 24

1.2.1 Blockchain Companies Initial Coin Offerings — ICOs 24
1.2.2 Transfer Of Social Trust: From Institutions To Systems Using Well-Tested Computer Code 26
2. BLOCKCHAIN MARKET SHARES AND FORECASTS 28
2.1 Blockchain Market Driving Forces 28

2.1.1 Blockchain Leverages Artificial Intelligence (AI) 32
2.2 Blockchain Market Shares 34

2.2.1 Blockchain Market Shares, Dollars, Worldwide, 2017 36
2.2.2 IBM and Microsoft 37
2.2.3 IBM Blockchain 38
2.2.4 IBM Implements AI Support for Blockchain 39
2.2.5 IBM Blockchain Decentralized Ledger In Supply Chains 39
2.2.6 IBM Blockchain Decentralized Ledger In Medical Industry 40
2.3 Blockchain Market Forecasts 40
2.4 Blockchain Applications 46
2.5 BFSI: Blockchain Impact on Stock Market 50

2.5.1 Blockchain Impact on Financial Services and Banking – Forecasts to 2024 62
2.6 Blockchain for Healthcare 64
2.7 Blockchain for Cybercurrency and Legal Industry 70
2.8 Blockchain for Supply Chain 73
2.9 Blockchain for Internet of Things 75

2.9.1 SoftBank CEO Masayoshi Son Sees 1 Trillion Devices for Internet of Things 80

Blockchain:
2.10 Cloud Revenue 81
2.11 Blockchain Pricing 83

2.11.1 IBM Blockchain 83
2.11.2 Microsoft Blockchain Pricing 86
2.12 Blockchain Regional Market Segments 88
3. BLOCKCHAIN PRODUCT DESCRIPTION 91
3.1 Blockchain Best Known For Being The Technology Underlying Cryptocurrencies 91
3.2 JPMorgan Chase Blockchain Network Quorum 92
3.3 Blockchain Best Known For Being The Technology Underlying Cryptocurrencies 93
3.4 HIVE Blockchain Technologies 94
3.5 Accenture 94
3.6 Hitachi 94
3.7 Overstock 94
3.8 Digital Currency: BitCoin 95
3.9 China Opens Its Financial System To The World 98

3.9.1 China Ending Anonymity of Virtual Accounts to Cryptocurrency Exchanges 99
3.10 Korean Blockchain Association 100
3.11 European Union Central Bankers On Cryptocurrency 101
3.12 Fidelity Investments, Blockchain 103

Blockchain:
3.13 Ethereum 104
3.14 Blockchain Bitcoin 105
3.15 Ripple Blockchain 107
4. BLOCKCHAIN RESEARCH AND TECHNOLOGY 108
4.1 On a Blockchain, a Node Replicates The Data For All Nodes 108
4.2 Blockchain Electricity Usage 109
4.3 Accenture Patent Tied To "Editable Blockchain" 109
5. BLOCKCHAIN COMPANY PROFILES 110
5.1 360 Blockchain Inc 110
5.2 Accenture 110

5.2.1 Accenture Blockchain Solutions 110
5.2.2 Accenture Blockchain Partnerships 110
5.2.3 Accenture Alliance with Digital Asset Seeks To Fundamentally Change The Way Companies
Verify And Settle Transactions 111
5.2.4 Accenture Collaborates with Partners 112
5.2.5 Accenture Digital Asset Partners 113
5.2.6 Accenture Revenue 118
5.3 Abra 118
5.4 Amazon 119

5.4.1 Amazon Blockchain Partners 120
5.4.2 Amazon Blockchain Partner Solutions 123
5.4.3 Amazon Sawtooth 125

Blockchain:
5.4.4 Corda R3 125

5.4.5 PokitDok 125
5.4.6 Samsung Nexledger 125
5.4.7 Quorum 126
5.4.8 Amazon Blockchain Deloitte 126
5.4.9 Luno 127
5.4.10 Amazon Web Services 128
5.5 Axoni 129

5.5.1 Comments from Axoni Users as to Reliability of Equity Swap 133
5.5.2 Axoni Confirmation Templates 134
5.6 BitFury Group 135

5.6.1 Richard Branson Digital Currency Summit On Private Caribbean Island 136
5.6.2 Bitfury Group Blockchain Analytics 137
5.6.3 Bitfury Group Lightning Network 137
5.7 Binance Exchange 138
5.8 BlockCypher 138

5.8.1 BlockCypher Payment Forwarding 139
5.9 BTL Group 140

5.9.1 BTL Blockchain Platform, Interbit For Energy Trading. 141
5.9.2 BTL Group Blockchain Based Cross-Border Settlement Solution 141
5.10 Chain 143

5.10.1 Chain and Changetip Participate with The Nasdaq-Created Blockchain System Linq 144
5.10.2 Chain Partners 144
5.11 ConsenSys 146
5.12 Deloitte 146

Blockchain:
5.13 Digital Asset Holdings 146
5.14 Ethereum 147

5.14.1 Ethereum / Advanced Micro Devices’ (AMD) 149
5.14.2 Ethereum Blockchain CryptoKitties 149
5.15 EzyRemit 150
5.16 Fidelity Investments 152
5.17 Global Arena Holding 152
5.18 Goldman Sachs 152
5.19 IBM Blockchain 154

5.19.1 IBM Batavia 155
5.19.2 IBM Internet of Things 156
5.19.3 IBM Supply Chain Tracking 156
5.19.4 IBM Blockchain in the Supply Chain 157
5.19.5 Use Cases for IBM IoT and Blockchain 158
5.19.6 IBM Watson IoT Blockchain 159
5.19.7 IBM Revenue 159
5.19.8 IBM Datacenter Blockchain 163
5.20 JP Morgan Chase 165

5.20.1 JPMorgan Chase Quorum Blockchain Technology 166
5.21 Microsoft Blockchain 167

5.21.1 Microsoft Strengthening Blockchain Partnerships 167
5.21.2 Microsoft Revenue 168
5.22 OnChain Public Platform Project In Conjunction with NEO 171

Blockchain:
5.23 NEO Open Source Blockchain 172
5.24 Provenance 172
5.25 R3 173
5.25.1 Blockchain Startup R3 CEV Attracts $107M From BofA, HSBC, Intel and Others 174
5.25.2 JPMorgan Chase & Co Quit the R3 Initiative 175
5.25.3 R3 Corda 176
5.26 Ripple 177

5.26.1 Ripple XRP Digital Asset for Payments 178
5.26.2 Ripple Labs a Global Leader In Distributed Ledger Technology 179
5.26.3 Ripple XRP The Digital Asset 181
5.26.4 Ripple Product Manager; Joined From JP Morgan Chase 181
5.26.5 Ripple Board of Directors, Susan Athey Has Strong Ties to Microsoft 182
5.27 SAP 184
5.28 Scorechain 184
5.29 Slock.It 186

5.29.1 Slock.It Addresses Global Market for Sharing 186
5.29.2 Slock.it $2 Million USD Seed Funding to Build Next-Generation Sharing
Economy Platform 188
5.30 TATA Consultancy Services 190

5.30.1 TCS Integrated Blockchain Solution 190
5.30.2 TCS Risk Information Management Solution 192
5.31 Other Blockchain Companies 198
WINTERGREEN RESEARCH, 206

Blockchain:
WinterGreen Research Methodology 206
WinterGreen Research Process 208
Market Research Study 208
WinterGreen Research Global Market Intelligence Company 209
Abstract: Blockchain Markets Headed to $60 Billion Worldwide by 2024 1
Figure 1. Blockchain Ledger Market Driving Forces 16
Figure 2. Major Growth Drivers Of The Blockchain Market 17
Figure 3. Blockchain Market Shares, Dollars, Worldwide, 2017 19
Figure 4. Blockchain, Market Forecasts Dollars, Worldwide, 2018-2024 21
Figure 5. Blockchain Ledger Market Driving Forces 30
Figure 6. Major Growth Drivers Of The Blockchain Market 30
Figure 7. Blockchain Market Shares, Dollars, Worldwide, 2017 36
Figure 8. Blockchain Technology Market Shares Dollars, Worldwide, 2017 37
Figure 9. Blockchain, Market Forecasts Dollars, Worldwide, 2018-2024 42

Blockchain:
Figure 10. Blockchain Market Segment Forecasts, Banking, Finance, and Insurance, Healthcare,
Cybercurrency, Supply Chain, and Internet of Things (IoT), Dollars, Worldwide, 2018-2024 43
Figure 11. Blockchain Market Segment Forecasts, Banking, Finance, and Insurance, Healthcare,
Cybercurrency, Supply Chain, and Internet of Things (IoT), Percent, Worldwide, 2018-2024 44
Figure 12. Segmentation Of The Global Blockchain Market By End-User (BFSI, Supply Chain,
Healthcare 46
Figure 13. Blockchain Applications 47
Figure 14. Blockchain Applications By Provider 48
Figure 15. Blockchain Applications By Organization Size and Type 48
Figure 16. Blockchain Applications By Industry Vertical 49
Figure 17. Blockchain Market by Provider 49
Figure 18. Stock Agent Stock Transfer Flow Diagram 51
Figure 19. Stock Transfer Agent Central Clearinghouse Model for Stock Trade Settlement 52
Figure 20. Direct Transfer Model Using Blockchain 53
Figure 21. Modern Stock Transfer Agent Business Challenges 55
Figure 22. Lehman Brothers Illustrates Problem With Stock Transfer Centralization 56
Figure 23. Advantages of Decentralized Securities Platform: 57
Figure 24. Blockchain for Banking, Finance, and Insurance, Market Forecasts Dollars, Worldwide,
2018-2024 63
Figure 25. Blockchain for Healthcare, Market Forecasts Dollars, Worldwide, 2018-2024 65

Blockchain:
Figure 26. Blockchain for Cybercurrency, Market Forecasts Dollars, Worldwide, 2018-2024 70
Figure 27. Blockchain for Supply Chain, Market Forecasts Dollars, Worldwide, 2018-2024 74
Figure 28. Blockchain for Internet of Things (IoT), Market Forecasts Dollars, Worldwide, 2018-2024 76
Figure 29. IBM Blockchain Cost 84
Figure 30. IBM Blockchain Pricing Plans 85
Figure 31. Blockchain Regional Market Segments, 2017 88
Figure 32. Blockchain Regional Market Segments, 2017 89
Figure 33. Bitcoin Year-To-Date Performance, late 2017 93
Figure 34. Difficulties of BitCoin Cybercurrency 102
Figure 35. Fidelity Identification of Barriers To Blockchain Adoption 103
Figure 36. Ethereum Platform Decentralized Processing 108
Figure 37. Accenture Digital Asset Partners 113
Figure 38. Amazon Blockchain Technology Features 120
Figure 39. Selected AWS Blockchain Partners 121
Figure 40. Axoni Investors 129
Figure 41. Axoni Equity Swap Data Functions 131
Figure 42. Axoni Equity Swap Blockchain Data Disadvantages 132
Figure 43. Bitfury Group Suite Of Offerings 136

Blockchain:
Figure 44. BlockCypher Functional Modules for Blockchain 138
Figure 45. BTL Blockchain Platform Industries Served 140
Figure 46. BTL Group Blockchain Functions Supported 142
Figure 47. BTL Group Blockchain Transformative Technologies Benefits 142
Figure 48. Chain Network 143
Figure 49. Chain Partners 145
Figure 50. Chain Core Enterprise Edition Functions 145
Figure 51. Ethereum Blockchain Platform 147
Figure 52. EzyRemit, EzyHedge, and EzyRemit B@B Solutions 151
Figure 53. Use Cases for IoT and Blockchain 158
Figure 54. JPMorgan Chase Blockchain Technology Aims 166
Figure 55. Onchain Blockchain Project Modules 171
Figure 56. Distributed Ledger Network Modules Build Infrastructure 172
Figure 57. xCurrent is Ripple’s enterprise software solution 178
Figure 58. Ripple Strategic Investors 179
Figure 59. Ripple Offers Speed 181
Figure 60. Yana Novikova, Product Manager; joined Ripple from JP Morgan Chase 182
Figure 61. Susan Athey is Professor of Economics at Stanford Graduate School of Business 183

Blockchain:
Figure 62. Scorechain Blockchain Partners 185
Figure 63. Slock.It Addresses Shared Resource Market 187
Figure 64. Slock.It USN Registry and Access Control 188
Figure 65. Slock.It USN Key Differentiators 189
Figure 66. TATA Consultancy Services Integrated Blockchain Modules 191
Figure 67. TATA Consultancy Services Integrated Blockchain Platform Build 191
Figure 68. TATA Consultancy Services Integrated Blockchain Benefits 192
Figure 69. TCS Risk Information Management Solution 193
Figure 70. TCS' Integrated Information Management Framework for Financial Firms 194
Figure 71. TATA Consultancy Services Benefits 195
Figure 72. TCS Blockchain Advantage 197
Figure 73. Blockchain Companies: Startups With ICOs 200
WinterGreen Research, Inc.

Blockchain:
Blockchain Market Driving Forces

Digital technology is dominant worldwide. The old mainframe digital technology
managed data in batches, now digital data is managed in real time over the Internet.
Blockchain brings digital technology into real time computing systems

management. It has the ability to change all aspects of the digital economy, including
conducting business, delivering healthcare, shopping, enhancing education and
learning, entertainment, and staying connected with a social world.
Recently, blockchain digital technology has evolved further to aid in conducting

financial transactions. Online payments have gained huge traction. Card based
payment methods, credit and debit cards have become dominant. Blockchain supports
all these changes by creating increased speed of transaction processing and greater
efficiency in real time processing.
Cryptocurrency is becoming increasingly popular. Distributed ledgers support

the payment system for digital currency to operate in decentralized mode, by eliminating
the need of intermediaries to centralize processing. Distributed ledger technology
further enables tracking of financial transactions.
It virtualizes tracking and trading anything of value via creating digital money.
Blockchain provides a robust environment for secure data sharing in real-time.
Blockchain is a type of distributed ledger system providing enhanced security to the real
time digital economic process. Blockchain is comprised of blocks of digitally recorded
data, creating a distributed ledger. There are many different types of distributed ledger
systems, each obeying its own security and privacy levels.

Blockchain:
Demand for blockchain technology is growing among the largest users of IBM
cloud capacity. IBM 60 cloud data centers see blockchain growing to be one of the top
applications in use. IBM blockchain digital ledger market is growing rapidly, a much
needed event for big blue.
Microsoft enterprise customers are making the transition to cloud services and
blockchain on Azure. Modernizing to digital economic . Blockchain Cloud Service,
helps customers extend existing applications like enterprise-resource management
systems. SAP SE said clients in industries like manufacturing and supply chain were
testing its cloud service. And on Nov. 20, Microsoft expanded its partnership with
consortium R3 to make it easier for financial institutions to deploy blockchains in its
Azure cloud. Big Blue, meanwhile, has been one of key companies behind the
Hyperledger consortium, a nonprofit open-source project that aims to create efficient
standards for commercial use of blockchain technology.
Blockchain is increasingly being tested and used. Wal-Mart Stores and Visa are
using blockchain to streamline supply chain, speed up payments, and store records.
WinterGreen Research predicts that 55% of large companies with over 1,000
employees will use the cloud rather than their own data centers within five years -- up
from 17%. Blockchain is a ledger that anyone can add things to. No one can remove
anything from a blockchain ledger. In this manner, the blockchain ledger is built
iteratively so that it contains a certain and verifiable record.
Figure 1. Blockchain Ledger Market Driving Forces

Need for a flexible ledger
Need for a ledger anyone inside and outside an organization can use
Need for a ledger from which no one can remove anything
Need for a ledger that can be built iteratively

Blockchain:
Need for a ledger that contains a certain and verifiable record
Source: WinterGreen Research, Inc.
Figure 2. Major Growth Drivers Of The Blockchain Market

Increasing demand for distributed ledger technology
Reduced total cost of ownership
Increased transaction management efficiency
Increased efficiency in the settlements process
Rising cryptocurrencies market cap
Success of initial coin offerings
Increasing demand for simplified business processes
Need for creating transparency
Need for immutability
Need for faster transactions
Increasing adoption of Blockchain-as-a-Service
Use case analyses indicate blockchain can drive better visibility in transactions
and supply chains. Blockchain can drive more efficient and compliant asset
management. There is no centralized “point of failure” the computing power necessary
to hack a blockchain is nearly impossible to achieve. Blockchain technology initially
gained market traction as the backbone of Bitcoin, but its value is far greater than this
narrow application.

Blockchain:
Unique investment strategies and product offerings are key investment house
differentiators. These are a hallmark of the digital economy. Replacing client server
data center architecture with blockchain brings new digital efficiencies.
Clients expect to see a wide diversity of asset classes in their portfolios, including
ETFs, derivatives such as swaps, private equity, and long/short strategy positioning.
Traditional vehicles include simple moving average (SMA) analyses as the most basic
of the moving averages used for trading. The simple moving average formula is
calculated by taking the average closing price of a stock over the last "x" periods.
SMAs.
The infusion of institutional capital into hedge funds helps explain why fund
assets have continued to grow in recent years, in spite of wide swings in fund
performance. Similarly, private equity continues to attract institutional investment, even
though some observers consider private company valuations on the high side
Companies are developing advanced payment solutions for financial firms. The
BlockCypher API allows users to query general information about blockchain and blocks
based on the coin/chain resource selected for endpoints. Blockchain is an immutable,
distributed ledger. Each block in the blockchain is like a “page” in the ledger containing
information about transactions between parties. Blockchains have been used to
implement Bitcoin.
Blockchain Leverages Artificial Intelligence (AI)

Artificial intelligence (AI). BT powered by AI is the most advanced IT
development taking place in the blockchain and cryptocurrency market. AI provides
several features to manage decentralized monetary systems. AI algorithms can be used

Blockchain:
to predict the value of bitcoins, which can help bitcoin traders to manage bitcoin
transactions. It will also help the customers to have easy access to comparative
information and will allow investors to be better informed before making decisions about
their financial plans. This, in turn, will augment growth in the global BT market during
the forecast period.
Blockchain Market Shares, Dollars, Worldwide, 2017
Figure 3. Blockchain Market Shares, Dollars, Worldwide, 2017

Blockchain:
IBM
32%
Total $706
Million
2017
Other
33%
Microsoft
19%
Accenture
17%
Blockchain Market Forecasts

The digital ledger market for blockchain products and services is anticipated to
reach $60.7 billion in 2024, up from $708 million in 2017. IBM and Microsoft are driving

Blockchain:
blockchain as their clients are making the transition to cloud services. Accenture has
measurable market share as well.
Private investments into blockchain companies topped $4.5 billion in 2017. This
is 8 times more than the same period in 2016. There are 15.2 million users. That is
0.2% of the global population.
A new law paves the way for Bitcoin to be more frequently used in daily
transactions. The impact of blockchain technology goes well beyond Bitcoin, it
promises to re-make the banking and finance and insurance industries. It promises to
create digital currency for all transactions.
Blockchain brings together shared ledgers with smart contracts to allow the
secure transfer of any asset. Physical assets like a shipping container, financial assets
like a bond, and digital assets like music can be transported across any business
network. Blockchain does for trusted transactions what the Internet did for information.”
Figure 4. Blockchain, Market Forecasts Dollars, Worldwide, 2018-2024

Blockchain:
Blockchain, Market Forecasts Dollars, Worldwide,

2018-2024
70,000.0
60,420.5
60,000.0
50,350.5
50,000.0
.
40,280.4
In Millions of Dollars
40,000.0
30,000.0 27,779.6
20,000.0
15,108.6
10,000.0
5,275.9
706.0 1,878.0
0.0
2017 2018 2019 2020 2021 2022 2023 2024

Blockchain:
1.1 Blockchain Market Description and

Market Dynamics
Blockchain is a transformational technology. The potential is to extend the digital
economy outside the enterprise, transformational because it allows the enterprise to
reach beyond a company’s walls to do business in concert with partners. Blockchain
permits the enterprise data center to reach into the processes it shares with suppliers,
customers, and partners.
At its core, a blockchain is a data structure that’s used to create a digital

transaction ledger that, instead of resting with a single provider, is shared among a
distributed network of computers.
The result is a more open, transparent, and verifiable system that fundamentally
changes the way the enterprise accomplishes exchanging value and assets, enforces
contracts, and shares data. A growing number of enterprises are investing in
blockchain as a secure and transparent way to digitally track the ownership of assets
across trust boundaries.
No longer can the data center IT draw a line in the sand to protect the vital
resources of the company by closing out everyone not directly part of the enterprise.
The promise of blockchain is to allow enterprise executives to reimagine shared
business processes, and create new models for cross-organizational collaboration.

Blockchain:
1.2 Blockchains: Cryptographically Secured

Distributed Ledgers
Blockchains are cryptographically secured distributed ledgers, first developed as
the underlying technology of the popular cryptocurrency bitcoin. Our blockchain
definition includes cryptocurrency-focused companies as well as distributed ledger-
focused companies applying the technology across sectors.
1.2.1 Blockchain Companies Initial Coin Offerings —

ICOs
Initial coin offerings — ICOs — are sales of tokens or coins offered by blockchain
companies looking to exchange tokens for cash, typically denominated in ether or
bitcoin. Tokens are subsequently traded on cryptocurrency exchanges, and rise or fall in
value nominally based on the company’s projected product and market capitalization.
Certain offerings appear to be no more than poorly-disguised unlicensed and

unregulated securities issuances. In a July 25th note on cryptocurrencies, the SEC
pointed to the Howey Test as a barometer by which to measure how likely a particular
blockchain token is of being a security under federal law. According to the test, an
investment contract is determined a security when it constitutes “an investment of
money in a common enterprise with a reasonable expectation of profits to be derived
from the entrepreneurial or managerial efforts of others.”

Blockchain:
Using this rubric, regulators concluded that one of the first prominent ICOs (and
largest at the time, at $150M), the hacked “Decentralized Autonomous Organization” or
the DAO, was an illegitimate securities offering.
Businesses across the globe spent $2.5 billion this year on blockchain, the
cryptographic technology that makes digital currencies like bitcoin possible — and by
2024 that will rise to $119.9 billion.
Blockchain-based product lines are emerging across 19 different business

sectors. Many of offer significant advantages in cost savings, efficiency, security, and
compliance compared to traditional systems and business processes.
Blockchain is known as distributed ledger technology because it uses encryption

and distributed computing power to create a constantly updated and cryptographically
secure record of transactions. Because all aspects of the transaction are distributed in
real time instead of asynchronously, among all its participants, transactions can settle
faster, and with less expense, less human error.
Blockchain generates a trusted record of a transaction held by all parties.

Blockchain is the key to moving, tracking and storing all kinds of value, information
online, well beyond digital currency.
Blockchain is an architecture able to support many types of transactions, from

logging an event, to signing a document, to voting, to allocating energy between parties,
and managing a supply chain.

Blockchain:
A hundred financial institutions, dozens of

governments, and thousands of corporations have Blockchain Market
adopted blockchain. Blockchain impacts a wide variety
of industries. The Blockchain market is
nascent and fragmented. At-
1.2.2 Transfer Of Social Trust: scale implementations are
From Institutions To Systems
just beginning to happen.
Using Well-Tested Computer
Regulatory agencies are just
Code
beginning to move.
Banks and the financial industry long ago have
Blockchain is part of the
ceded their business to the data center and IT manager
digital economy: legal,
in large part, but the systems that have been
governance, collaborative,
implemented are imperfect, not able to balance at the
economic, digital, and
end of the day, at the end of the year. Blockchain brings
cultural future, precedents
better systems.
do not exist and need to be
As Bitcoin continues to grow, there's reason to
worked out.
think something deeper and more important is going on.
Bitcoin reflects a monumental transfer of social trust:
away from human institutions backed by government and to more elaborate transaction
management systems reliant on well-tested computer code. It is a trend that transcends
finance:
In an effort to eliminate human error, blockchain technology is in the same realm

as robotic technology. Bitcoin as a currency represents the first wave of digital
currency, an effort to replace human slow speed and error, depending instead on
computing machines.

Blockchain:
The transformation is more obvious in robotics outside of finance. Pilots trust

computers to fly the airplanes, self-driving cars are about to proliferate, robots clean the
home, robots help surgeons cut into patients, and robots simplify daily agricultural
management tasks. In this respect, finance is behind, systems are largely based on
human intervention:
The invention of Bitcoin in 2009 came as a result of the financial crisis. Banks
backed by economically powerful nations had been the symbol of financial
trustworthiness, the gold standard in the post-gold era. But they revealed themselves
as reckless, irresponsible with people's money, holding extraordinarily complex assets
premised on worthless mortgages.
The financial system still looks a lot like untested code with weak debugging that
puts way too much faith in the idea that humans will behave properly. As with any bad
software, it can crash when conditions change. Blockchain implements stable systems.

Blockchain:
2.1 Blockchain Market Driving Forces

Digital technology is dominant worldwide. The old mainframe digital technology
managed data in batches, now digital data is managed in real time over the Internet.
Blockchain brings digital technology into real time computing systems

management. It has the ability to change all aspects of the digital economy, including
conducting business, delivering healthcare, shopping, enhancing education and
learning, entertainment, and staying connected with a social world.
Recently, blockchain digital technology has evolved further to aid in conducting

financial transactions. Online payments have gained huge traction. Card based
payment methods, credit and debit cards have become dominant. Blockchain supports
all these changes by creating increased speed of transaction processing and greater
efficiency in real time processing.
Cryptocurrency is becoming increasingly popular. Distributed ledgers support

the payment system for digital currency to operate in decentralized mode, by eliminating
the need of intermediaries to centralize processing. Distributed ledger technology
further enables tracking of financial transactions.
It virtualizes tracking and trading anything of value via creating digital money.
Blockchain provides a robust environment for secure data sharing in real-time.
Blockchain is a type of distributed ledger system providing enhanced security to the real
time digital economic process. Blockchain is comprised of blocks of digitally recorded
data, creating a distributed ledger. There are many different types of distributed ledger
systems, each obeying its own security and privacy levels.

Blockchain:
Demand for blockchain technology is growing among the largest users of IBM
cloud capacity. IBM 60 cloud data centers see blockchain growing to be one of the top
applications in use. IBM blockchain digital ledger market is growing rapidly, a much
needed event for big blue.
Microsoft enterprise customers are making the transition to cloud services and
blockchain on Azure. Modernizing to digital economic . Blockchain Cloud Service,
helps customers extend existing applications like enterprise-resource management
systems. SAP SE said clients in industries like manufacturing and supply chain were
testing its cloud service. And on Nov. 20, Microsoft expanded its partnership with
consortium R3 to make it easier for financial institutions to deploy blockchains in its
Azure cloud. Big Blue, meanwhile, has been one of key companies behind the
Hyperledger consortium, a nonprofit open-source project that aims to create efficient
standards for commercial use of blockchain technology.
Blockchain is increasingly being tested and used. Wal-Mart Stores and Visa are
using blockchain to streamline supply chain, speed up payments, and store records.
WinterGreen Research predicts that 55% of large companies with over 1,000
employees will use the cloud rather than their own data centers within five years -- up
from 17%. Blockchain is a ledger that anyone can add things to. No one can remove
anything from a blockchain ledger. In this manner, the blockchain ledger is built
iteratively so that it contains a certain and verifiable record.

Blockchain:
Figure 5. Blockchain Ledger Market Driving Forces

Need for a flexible ledger
Need for a ledger anyone inside and outside an organization can use
Need for a ledger from which no one can remove anything
Need for a ledger that can be built iteratively
Need for a ledger that contains a certain and verifiable record
Figure 6. Major Growth Drivers Of The Blockchain Market

Increasing demand for distributed ledger technology
Reduced total cost of ownership
Increased transaction management efficiency
Increased efficiency in the settlements process
Rising cryptocurrencies market cap
Success of initial coin offerings
Increasing demand for simplified business processes
Need for creating transparency
Need for immutability
Need for faster transactions
Increasing adoption of Blockchain-as-a-Service

Blockchain:
Use case analyses indicate blockchain can drive better visibility in transactions
and supply chains. Blockchain can drive more efficient and compliant asset
management. There is no centralized “point of failure” the computing power necessary
to hack a blockchain is nearly impossible to achieve. Blockchain technology initially
gained market traction as the backbone of Bitcoin, but its value is far greater than this
narrow application.
Unique investment strategies and product offerings are key investment house
differentiators. These are a hallmark of the digital economy. Replacing client server
data center architecture with blockchain brings new digital efficiencies.
Clients expect to see a wide diversity of asset classes in their portfolios, including
ETFs, derivatives such as swaps, private equity, and long/short strategy positioning.
Traditional vehicles include simple moving average (SMA) analyses as the most basic
of the moving averages used for trading. The simple moving average formula is
calculated by taking the average closing price of a stock over the last "x" periods.
SMAs.
The infusion of institutional capital into hedge funds helps explain why fund
assets have continued to grow in recent years, in spite of wide swings in fund
performance. Similarly, private equity continues to attract institutional investment, even
though some observers consider private company valuations on the high side
Companies are developing advanced payment solutions for financial firms. The
BlockCypher API allows users to query general information about blockchain and blocks
based on the coin/chain resource selected for endpoints. Blockchain is an immutable,
distributed ledger. Each block in the blockchain is like a “page” in the ledger containing
information about transactions between parties. Blockchains have been used to
implement Bitcoin.

Blockchain:
2.1.1 Blockchain Leverages Artificial Intelligence (AI)

Artificial intelligence (AI). BT powered by AI is the most advanced IT
development taking place in the blockchain and cryptocurrency market. AI provides
several features to manage decentralized monetary systems. AI algorithms can be used
to predict the value of bitcoins, which can help bitcoin traders to manage bitcoin
transactions. It will also help the customers to have easy access to comparative
information and will allow investors to be better informed before making decisions about
their financial plans. This, in turn, will augment growth in the global BT market during
the forecast period.
Use of blockchain distributed ledger lends transparency to financial transactions

and eliminates middle man, thus reducing the transaction costs. This is likely to drive
the adoption of blockchain distributed ledger in the coming years. As the complex
process of paper work and third party involvement extends the process of business
transactions, blockchain-enabled distributed ledgers are anticipated to change the way
business transactions take place. Moreover, enhanced security levels for transactions is
another factor contributing to the growing influence of the technology. Distributed
ledger systems are not controlled by any centralized authority and are not limited by
legal rules. Blockchain technology is governed by its own technical code.
Blockchain distributed ledger technology is at its nascent stage and has

observed adoption mostly in financial sector. The cryptographic codes are extremely
robust. Security concerns are paramount as hackers are constantly trying to break the
authenticated cryptographic code.

Blockchain:
Governments in some countries are promoting the use of blockchain distributed

ledgers, to influence business and fiscal transparency to enhance efficiency and reduce
corruption within the country. The U.S. government recommended the development of
blockchain distributed ledgers for their international partners during the launch of
“America Innovation Roadshow” in May 2016.
Blockchain finds its primary application in financial sector; however, innovations

in the next phase are expected to drive its use in different applications such as smart
contract. These contracts are termed in computer language rather than legal language.
Blockchain ledger enables users to track and verify business agreement and
relationships.
Blockchain distributed ledger are unpermissioned ledgers and permissioned

ledgers depending on the type of ownership. Unpermisssioned ledgers include Bitcoin
with a single owner and anyone is liable to contribute data to the ledger. Permissioned
ledgers have one or many owners and are carried out by trusted owners, banks or
government bodies. unpermissioned ledgers are expected to disappear from
blockchain.
Blockchain supported distributed ledgers find benefits in complex financial assets

that are not under central authority. They are used to mitigate the risks of trade and
regulate the process. Thus, products such as public and private stocks/bonds,
syndicate loans, FICC derivatives, corporate bonds, and derivatives margin/collaterals
are likely to benefit significantly from the technology. Key players associated with
blockchain distributed ledger market include Chain, Inc., IBM Corporation, Intel
Corporation, Accenture PLC, and Eris Industries.

Blockchain:
2.2 Blockchain Market Shares

Leading suppliers include IBM, Microsoft, and Accenture. These are key vendors
in the global blockchain market. Other prominent vendors in the Blockchain market
include Axoni, Abra, BTL Group, BlockCypher, BitFury Group, Chain, ConsenSys,
Deloitte, Ethereum, Ezyremit, Global Arena Holding, Provenance, R3, Ripple,
Scorechain, Slock.it, and TATA Consultancy Services. Microsoft expanded its
partnership with consortium R3 to make it easier for financial institutions to deploy
blockchains in its Azure cloud.
The blockchain ecosystem further is comprised of vendors AlphaPoint (US),

Amazon Web Services, Inc. (US), Coinbase (US), Digital Asset Holdings LLC. (US),
Earthport PLC (UK), Factom (US), Ripple (US) and other. Facebook and Google with
their mega data centers have the capability to implement blockchain because the data
center operating system can connect any node to any other node, implementing
intensive systems integration.
Oracle formed Oracle Blockchain Cloud Service. It helps customers extend

existing applications: enterprise-resource management systems. SAP supports its
clients in the manufacturing and supply chain industries with cloud services.
JPMorgan Chase & Co quit the R3 initiative at the end of April 2017. Earlier in
2017, the bank partnered with Microsoft, Intel, UBS, and other companies to form The
Enterprise Ethereum Alliance to develop standards and technology for easier use of the
blockchain code Ethereum. The bank is a member of the Hyperledger Project led by
the Linux Foundation. JPMorgan Chase & Co and Goldman Sacks are expected to try
to develop a block chain that is separate from the IBM mainframe to try to get some
independence from proprietary technology, not wanting to be bound by one supplier.

Blockchain:
Ethereum was a platform R3 looked at and decided was not fit for purpose. R3,
decided blockchain for banking would be easier if there was solution fit for purpose, if
something out there was close that could be adapted to needs. R3 is going to build
something in parallel, a platform fit for purpose for financial services. Ethereum was not
deemed by R3’s experts and members to be appropriate for the financial services
industry.
Earlier, Goldman Sachs Group Inc, Banco Santander SA as well as Morgan

Stanley and National Australia Bank decided not to renew their memberships. The fact
that Goldman and Santander abandoned R3 doesn’t mean the loss of their interest in
the blockchain. They invest in other blockchain startups, including Digital Asset
Holdings LLC.
R3 consortium was launched in September 2015 with the backing of nine of the
world’s largest investment banks. The number of participants soon reached about 80
financial institutions that cooperate to leverage the blockchain technology.
UBS thinks the IBM company future is in blockchain. UBS jumped on the
distributed-database blockchain early and has become a major proponent of the
technology's use:

Blockchain:
2.2.1 Blockchain Market Shares, Dollars, Worldwide,

2017
Figure 7. Blockchain Market Shares, Dollars, Worldwide, 2017
IBM
32%
Total $706
Million
2017
Other
33%
Microsoft
19%
Accenture
17%

Blockchain:
Figure 8. Blockchain Technology Market Shares Dollars, Worldwide, 2017

Blockchain Technology Market Shares
Dollars, Worldwide, 2017
MM$ %
2017 2017
IBM 223.0 31.6

Microsoft 134.0 19.0
Accenture 117.0 16.6
Other 232.0 32.9
Total 706.0 100.0
2.2.2 IBM and Microsoft

IBM and Microsoft are looking to monetize blockchain. IBM is ahead now
because it has that impressive stable of software and mainframe / server hardware
capability that can be repurposed to implement blockchain. Blockchain depends on the
reliability and security that IBM systems offer. Blockchain is important for IBM, its
business is centered on the banking, insurance, and financial industry, the industries
that are turned on their head by blockchain.
For IBM to maintain its foothold in its traditional markets, it needs to dominate
blockchain. IBM's legacy businesses are in decline; blockchain and cognitive
computing technologies are its best hope for recovery.

Blockchain:
Microsoft is strong in the data center because it dominates web site and Internet
processing. Microsoft dominates the enterprise computing WinTel server space used to
give companies an online Internet market presence, giving Microsoft a logical customer
base for blockchain as it rolls out systems for IoT and designed to serve the digital
economy.
2.2.3 IBM Blockchain

The Internet of Things (IoT) enables devices to send data to private blockchain
ledgers for inclusion in shared transactions. Blockchain features tamper-resistant
records. The distributed replication of IBM Blockchain enables business partners to
access and supply IoT data without the need for central control and management. All
business partners can verify each transaction, preventing disputes and ensuring each
partner is held accountable for their individual roles in the overall transaction.
IBM's revenue has been sliding downward for some time. Its second-quarter
earnings report in July 2017 was more of the same -- a 21st consecutive quarter of
declining revenue.
The issues it faces aren't unique. Its legacy businesses -- hardware, software,
and services for traditional corporate data centers -- have been shrinking as customers
move to the cloud. Despite efforts, IBM cloud is not getting enough traction for it to
maintain market share.
IBM's biggest turnaround efforts seem to center around Watson and its other
implementations of AI and machine learning.

Blockchain:
2.2.4 IBM Implements AI Support for Blockchain

IBM has beat Facebook AI Server scaling record giving IBM strategic advantage
in AI support for blockchain. Blockchain is leading the way but enhanced with AI.
Blockchain and AI could give IBM cloud the push it needs to make blockchain an
essential component of its business infrastructure.
2.2.5 IBM Blockchain Decentralized Ledger In Supply

Chains
Blockchain is a decentralized ledger that can be used to streamline processes
while keeping them secure. In supply chains instead of each business in the chain
(manufacturer, shipper, buyer) all using their own paperwork for tracking and invoicing,
the blockchain allows everyone to see each step in an open, secure ledger.
IBM has a lead in blockchain technology. IBM has been developing blockchain
to implement distributed databases. These are positioned to implement IoT and supply
chain applications, going way beyond crypto-currencies. IBM has put the technology
into production for it's own supply chain.
IBM has positioned to bring blockchain adoption to financial institutions, which

have recognized the technology's benefits but have been cautiously slow to adopt it.
Banks are accepting the blockchain cloud platform from IBM. IBM has been selected
by a consortium of seven large European banks to build and host Digital Trade Chain, a
trade finance platform based on blockchain, designed to simplify and facilitate domestic
and cross-border trade for small and medium enterprises. IBM has implemented
enterprise blockchain to help quickly bring a highly scalable system into production.

Blockchain:
IBM has a collaboration with 10 food suppliers, including brands Nestlé, Tyson
Foods, Unilever, Walmart, and Kroger, to track food products from farm to grocery store
shelves in the interest of efficiency and food safety.
2.2.6 IBM Blockchain Decentralized Ledger In Medical

Industry
The medical industry is taking an interest in blockchain. Patient privacy issues
helps securely transmit medical data. The results of CAT scans and MRIs are important
for a patient record. That would be an area that would be ripe for Big Blue to be a triple
threat, bringing secure cloud storage as well as AI and blockchain to the clinical
facilities.
2.3 Blockchain Market Forecasts

The digital ledger market for blockchain products and services is anticipated to
reach $60.7 billion in 2024, up from $708 million in 2017. IBM and Microsoft are driving
blockchain as their clients are making the transition to cloud services. Accenture has
measurable market share as well.
Private investments into blockchain companies topped $4.5 billion in 2017. This
is 8 times more than the same period in 2016. There are 15.2 million users. That is
0.2% of the global population.

Blockchain:
A new law paves the way for Bitcoin to be more frequently used in daily
transactions. The impact of blockchain technology goes well beyond Bitcoin, it
promises to re-make the banking and finance and insurance industries. It promises to
create digital currency for all transactions.
Blockchain brings together shared ledgers with smart contracts to allow the
secure transfer of any asset. Physical assets like a shipping container, financial assets
like a bond, and digital assets like music can be transported across any business
network. Blockchain does for trusted transactions what the Internet did for information.”

Blockchain:
Figure 9. Blockchain, Market Forecasts Dollars, Worldwide, 2018-2024
Blockchain, Market Forecasts Dollars, Worldwide,

2018-2024
70,000.0
60,420.5
60,000.0
50,350.5
50,000.0
.
40,280.4
40,000.0
30,000.0 27,779.6
20,000.0
15,108.6
10,000.0
5,275.9
706.0 1,878.0
0.0
2017 2018 2019 2020 2021 2022 2023 2024

Blockchain:
Figure 10. Blockchain Market Segment Forecasts, Banking, Finance, and

Insurance, Healthcare, Cybercurrency, Supply Chain, and Internet of Things
(IoT), Dollars, Worldwide, 2018-2024
Blockchain Market Segment Forecasts, Banking, Finance, and Insurance, Healthcare,
Cybercurrency, Supply Chain, and Internet of Things (IoT), Dollars, Worldwide, 2018-2024
2017 2018 2019 2020 2021 2022 2023 2024
Banking, Finance, Insurance 381.2 1,054.7 3,081.5 9,177.4 17,549.0 25,700.5 32,446.9 39,325.6
Healthcare 14.1 46.6 162.2 576.1 1,313.5 1,980.8 2,535.4 3,085.1
Cybercurrency 255.6 620.4 1,510.9 3,320.0 5,170.5 7,140.8 8,490.0 9,662.3
Supplychain 48.0 118.8 310.3 826.4 1,413.1 1,905.5 2,215.2 2,472.1
Internet of Things (IoT) 7.1 37.6 211.0 1,208.7 2,333.5 3,552.7 4,663.0 5,875.3
Total (MM$) 706.0 1,878.0 5,275.9 15,108.6 27,779.6 40,280.4 50,350.5 60,420.5
Growth % 64.0 166.0 180.9 186.4 83.9 45.0 25.0 20.0

Blockchain:
Figure 11. Blockchain Market Segment Forecasts, Banking, Finance, and

Insurance, Healthcare, Cybercurrency, Supply Chain, and Internet of Things
(IoT), Percent, Worldwide, 2018-2024
Blockchain Market Segment Forecasts, Banking, Finance, and Insurance, Healthcare,
Cybercurrency, Supply Chain, and Internet of Things (IoT), Percent, Worldwide, 2018-2024
In Percent
2017 2018 2019 2020 2021 2022 2023 2024
Banking, Finance, Insurance 54.0 56.2 58.4 60.7 63.2 63.8 64.4 65.1
Healthcare 2.0 2.5 3.1 3.8 4.7 4.9 5.0 5.1
Cybercurrency 36.2 33.0 28.6 22.0 18.6 17.7 16.9 16.0
Supplychain 6.8 6.3 5.9 5.5 5.1 4.7 4.4 4.1
Internet of Things (IoT) 1.0 2.0 4.0 8.0 8.4 8.8 9.3 9.7
Total (%) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Growth % 64.0 166.0 180.9 186.4 83.9 45.0 25.0 20.0
Total MM$ 706.0 1,878.0 5,275.9 15,108.6 27,779.6 40,280.4 50,350.5 60,420.5
Blockchain technology (BT) market key drivers for growth include the rapid
increase in FinTech spending. FinTech is a service provided by companies and is
based on software. Over the years, the purview of FinTech has extended to include
new and innovative front-end consumer products. Several FinTech startup companies
provide solutions, which are operable through smartphones or tablets, directly to the
customers through licensing or by means of white label services.

Blockchain:
BFSI sector dominated the BT market and accounted for a major part of the
overall market share. The financial services firms are implementing BT to manage
digital transactions. Also, insurance firms are subscribing to BT to manage insurance
policies and claim management. The above-mentioned factors contribute significantly to
the market dominance of the BFSI sector in the BT market.
Block-chain will drive growth in markets for cloud, databases, servers, more than
would be achieved without the block-chain. This is a huge growth driver because cloud
is not yet showing penetration above 17% and block-chain could be a major force in
driving adoption above 55% within 5 years, representing significant acceleration of
cloud usage.
Server usage will accelerate in the context of mega data-centers pioneered by

Google, Amazon, Microsoft, and Facebook. Data bases will expand in response to
block-chain need for massive management of information for artificial intelligence driven
by block-chain.
Large companies with over 1,000 employees increasingly will use the cloud to
implement block-chain technology which fundamentally changes how data is managed.
Enterprise data centers are not as efficient as mega data centers in the cloud, so the
enterprise data centers are being replaced by the more efficient cloud, block-chain data
organization. Companies use block chain to move from a scenario where every
organization maintains its own copy of a data set to one where all parties have
controlled access to a shared copy in the cloud. With block-chain and cloud computing,
traditionally independent companies can work together to streamline and integrate
processes, all with controlled, secure access to sensitive data. In this manner,
enterprise collaboration with partners and distributors is facilitated.

Blockchain:
2.4 Blockchain Applications

Block-chain is being used by the large companies to unlock the vast value
trapped in their business operations. Those who move to block-chain achieve
tremendous competitive advantage, pushing those who have not been early adopters to
move to block-chain more quickly, hence the 55% penetration of block-chain.
Figure 12. Segmentation Of The Global Blockchain Market By End-User (BFSI,

Supply Chain, Healthcare
BFSI
Supply chain management
Healthcare
Real estate
Sports teams
Lawyers
Telecom
Railways and air travel
Retail
In healthcare doctors and clinical facilities are in constant need of access to

patient information located in other facilities that are not part of the system.

Blockchain:
In retail, it would make a great deal of sense for Amazon to build its own
cybercurrency to try to leverage the highly successful Prime offering and hold onto
customers with crypto currency that has value. EZToken can revolutionize customer
loyalty and modern money. 1 Million EZToken round one sold out in 2 minutes.
Figure 13. Blockchain Applications

Payments
Exchanges
Smart contracts
Documentation
Digital identity
Supply chain management
Governance, risk and compliance management
Others (digital voting and content storage management)

Blockchain:
Figure 14. Blockchain Applications By Provider

Application and solution provider
Middleware provider
Infrastructure and protocol provider
Figure 15. Blockchain Applications By Organization Size and Type

Large enterprises
Government
Military
Small and Medium-Sized Enterprises (SMEs)

Blockchain:
Figure 16. Blockchain Applications By Industry Vertical

Banking, Financial Services, and Insurance (BFSI)
Government and public sector
Healthcare and life sciences
Media and entertainment
Retail and eCommerce
Travel and hospitality
Transportation and logistics
Real estate
IT and telecommunications
Others (automotive, education, and energy and utilities)
Figure 17. Blockchain Market by Provider

Payments
Exchanges
Smart Contracts
Documentation
Digital Identity
Clearing and Settlement

Blockchain:
2.5 BFSI: Blockchain Impact on Stock Market

Blockchain could change the backbone of the stock market. Modern technology
enables stock markets to be faster and more complex than ever. While the speed of
order executions are faster, the conceptual backbone behind the stock market has not
changed. The model used for settling trades and ensuring proper share ownership is
based on the one created in the 17th century.
A decentralized securities platform could look different. In such a paradigm, the

settlement of trades would not occur through centralized transfer agents, but instead
through a blockchain with this feature “built in”.

Blockchain:
Figure 18. Stock Agent Stock Transfer Flow Diagram
Source: visualcapitalist.com/blockchain-backbone-stock-market

Blockchain:
Figure 19. Stock Transfer Agent Central Clearinghouse Model for Stock Trade
Settlement

Blockchain:
Figure 20. Direct Transfer Model Using Blockchain

Blockchain:
The roots of the modern stock market can be traced back to Amsterdam in the
year 1602, when the Dutch East India Company became the world’s first “publicly
traded” company. Trade missions to the West Indies were risky and expensive – so
shares and bonds in the company were initially sold to a large pool of interested
investors to spread the risk. In turn, backers of the company received a guarantee of
some future share of profits.
As investors began speculating about the prospects of the Dutch East India
Company, a secondary market developed for these securities. People bought and sold
stock in high volumes, and a central registrar tracked the transfer of shares between
parties.
As the Western US was settled and railroads were built, stock sold to finance the
many railroads had a similar role in financing ventures.
Over 400 years the Dutch East India Company became the world’s first “publicly
traded” company the stock market is not that much different from the earliest exchange
found in Amsterdam. Modern computing and the internet have sped up transactions so
they can be executed in milliseconds, but the conceptual backbone of the market has
not changed.
Stock Transfer Agents are centralized registrars in the background that track
share ownership for issuers and the stock market. They are a third party that will cancel
the share certificate for the investor that sold the shares, and substitute the new owner’s
name on the official master shareholder listing.
There are over 130 stock transfer agents in the USA and Canada, maintaining
the records of more than 100 million shareholders on behalf of over 15,000 issuers.

Blockchain:
Modern stock transfer agents use technology, but the same business model
persists:
Figure 21. Modern Stock Transfer Agent Business Challenges

Centralized
Expensive
Depositories and transfer agents are a single point of failure
Registration, transfer, distribution, scrutineering, courier fees
More widely held have higher the administration costs
Limited Transparency
Information asymmetry leads to market advantages
Forged securities still a concern
Counterparty risk is systemic
Legal ownership rests with transfer agents in most jurisdictions
Investors do not have title
The industry is huge and only one company manages the stock transfers. The
Depository Trust & Clearing Corporation (DTCC) is the highest financial value processor
in the world with $1.6 quadrillion in transactions in 2016.

Blockchain:
During the financial crisis, the problems of increased centralization and limited
transparency became apparent.
Figure 22. Lehman Brothers Illustrates Problem With Stock Transfer

Centralization
Companies like Lehman Brothers and MF Global self-destructed
Nobody knew what kind of assets they had off their balance sheets
An accurate blockchain record of all of Lehman’s transactions would have lent

transparency to the looming bankruptcy sooner
Lehman’s prudential regulators could have used data mining tools
Lehman’s prudential regulators could have used smart contracts
Lehman’s prudential regulators could have used analytical applications
Aim would have been to recognize anomalies
Regulators could have reacted sooner
Lehman had deteriorating creditworthiness
This lack of clarity and risk helped drive hysteria, ultimately exacerbating the
extent of the crisis. Because no one could quantify the risks, investors liquidated their
assets. More selling meant even less liquidity.
Instead of putting all stock transactions through a centralized hub, the blockchain
can be used to directly transfer share ownership between investors.

Blockchain:
Figure 23. Advantages of Decentralized Securities Platform:

Can be used to transfer a security without central clearinghouse
Transaction is broadcast to a P2P network
P2P network consists of node computers
Network of nodes validates the transaction and user status
System uses known algorithms
A valid transaction transfers the title of the security.
Transaction needs to be verified through blockchain
Once verified, the transaction is combined with other transactions
Creates a block of data for the ledger
Thus, completing the transaction
Stock exchanges can run using a blockchain, with no need for a centralized
settlement or transfer of share certificates. This is cheaper, faster, reduces risks, and
more secure. Blockchain is fully transparent.
Blockchain platforms could serve as the base for other value adds – and fully
transform the way we think about equity markets.

Blockchain:

Blockchain:

Blockchain:

Blockchain:

Blockchain:
2.5.1 Blockchain Impact on Financial Services and

Banking – Forecasts to 2024
This blockchain cryptography technology has become increasingly attractive to
the financial services sector for its tamper-proof ledger. When financial firms do
business with each other, the hard work of synchronizing their internal ledgers can take
several days. This ties up capital and increases risk.
Blockchain banking, finance, and insurance markets at $391.2 are expected to

reach $39.3 billion in 2024 as a complete transformation of the industry occurs.

Blockchain:
Figure 24. Blockchain for Banking, Finance, and Insurance, Market Forecasts
Dollars, Worldwide, 2018-2024
Blockchain for Banking, Finance, and Insurance, Market

Forecasts Dollars, Worldwide, 2018-2024
45,000.0
40,000.0 39,325.6
35,000.0 32,446.9
.
30,000.0
25,700.5
25,000.0
20,000.0 17,549.0
15,000.0
10,000.0 9,177.4
5,000.0 3,081.5
381.2 1,054.7
0.0
2017 2018 2019 2020 2021 2022 2023 2024
Blockchain allows different banks to do business with each other more easily and
across borders. By shifting reliance away from central banks, the conduct of business
is more flexible and manageable. Switching over to systems is part of the
modernization process that is happening as part of the digital economy implementation.

Blockchain:
Switching to bitcoin could save the banks and financial services industry $70
billion a year by 2024.
Santander is the first UK bank to use blockchain technology to transfer live

international payments; Payments of between £10 and £10,000 can be made, around
the clock at any time of the day; The long wait for international payments to be
processed is over, funds appear in the recipients account the next working day.
American Express and Santander have partnered with Ripple for cross-border
payments via blockchain. American Express and Santander Ripple partnership has
been able to speed up cross-border payments between the U.S. and the U.K. by using
blockchain technology.
2.6 Blockchain for Healthcare

The Center for Disease Control and the General Services Administration are
experimenting with pilot blockchain projects from IBM. Experts from the Centers for
Disease Control and Prevention (CDC), Aetna, and the Altarum Institute see blockchain
as an essential technology for healthcare technology.
Blockchain for healthcare markets at $14 million in 2017 are anticipated to reach
$3.1 billion by 2024.

Blockchain:
Figure 25. Blockchain for Healthcare, Market Forecasts Dollars, Worldwide,

2018-2024
Blockchain for Healthcare, Market Forecasts Dollars,

Worldwide, 2018-2024
3,500.0
3,085.1
3,000.0
2,535.4
2,500.0
.
1,980.8
2,000.0
1,500.0 1,313.5
1,000.0
576.1
500.0
162.2
14.1 46.6
0.0
2017 2018 2019 2020 2021 2022 2023 2024

Blockchain:
And publicly, the Trump Administration has doubled down on its commitment to
adopting blockchain technology in government operations, two senior White House
officials said in September 2017.
ress that included aspirational statements, updates, and announcements, Ginni Rometty, the
chairwoman, president, and CEO of the Armonk, N.Y.-based IBM, on Tuesday morning shared her
vision of cognitive computing with attendees at the World Health Care Congress, being held this
week at the Marriott Wardman Park Hotel in Washington, D.C.
Telling her audience that “Healthcare has been central to us for a long time,” Rometty framed
the broad work that IBM is doing in cognitive computing in terms of what she sees as its potential to
change the healthcare industry in three fundamental ways: with regard to “how to reinvent
discovery,” how to “help change how delivery happens,” and how to “transform wellness.” Indeed,
she said, “Cognitive computing is the future of healthcare,” and said that IBM’s work in that area,
embodied in its development of IBM Watson, its cognitive computing entity, which IBM data
scientists and technologists are using to transform knowledge in a broad range of areas.
Framing IBM’s broad strategic thrust around cognitive computing, Rometty told her audience,
“Analytics, cloud, mobile—those are all very important to be a part of the digital society and
economy. But when everyone’s digital, then what? I always think of digital as foundational; I believe
it is disruptive… It is the dawn of a new era. Think of digital business and business intelligence put
together, and that will give you cognitive,” she said. Very importantly, she said, “It’s data that’s visible
and invisible.” In fact, she said, in terms of the digital data available worldwide, the volume of that
data is hard to comprehend, as it is now estimated to fill 150 exabytes, or “3 million times all the
written books in the world. This year, the volume of digital data will reach one zettabyte, or the
equivalent of 30 million times all the data in all the books in the world.” And yet, she quickly added,
80 percent of data is unstructured, and in healthcare, that means data in such stores as doctors’
notes, patient monitoring machines, wearables, and sound forms.
Importantly, Rometty said, “That invisible data will now be visible. And when you combine
those together,” she said, transformative capabilities will be possible. To name just two examples,

Blockchain:
she noted that “Weather influences asthma. Exposure to crime influences your mental and physical
health. This is why we’ve created the Watson cloud,” she noted, adding that “We’ve spent $4 billion
to acquire Phytel, Explorys, Merge, Truven, plus the Apple Research Kit,” and other entities, to help
fuel the acquisition and analytics of data as part of that broader process.
Ginni Rometty, IBM's CEO, at the World Health Care Congress
As for Watson itself, Rometty told her audience, “We started over 10 years ago in research. And we made
the decision to debut it publicly five years ago on ‘Jeopardy!’ simply to debut Watson’s question-and-answer
capability. Today, Watson does 30 things,” she noted, adding that “We’ve been teaching Watson to see things like x-
rays and images. So healthcare was in fact Watson’s first career choice.”

Blockchain:
With regard to the goal of reinventing discovery using Watson, Rometty told her audience,
“Think about a system that learns. It’s great at forming hidden connections. If you could test your
hypotheses faster, it could help us make progress in a range of areas—genomic medicine, that’s an
obvious area. And it could be used for drug discovery, or for the discovery of alternative uses for
existing drugs—repurposing. In addition, she noted, it could be used to support clinical trial
matching, something very much needed, as only 5 percent of cancer patients are currently
participating in clinical trials. It is complex work, she noted, involving Watson coming to understand
processes, protocols, guidelines. The work around cancer clinical trial work started with breast
cancer and has moved into lung, colorectal, and gastrointestinal cancer clinical trial work.
Already collaborating with Novartis, Rometty said, “Just last week, we announced we’re
working with Pfizer. We envision an ecosystem of people working together, and we see it already
happening. We’re working with Pfizer on Parkinson’s, collecting the data on sensors, mobile, and in
other forms.”
Meanwhile, Rometty said, “Perhaps the most exciting of all three is how to reimagine
delivery: value-based outcomes, as well as extending how healthcare is delivered beyond obvious
borders; and personalized treatments. As widely reported, we began that Watson for Oncology work
with Memorial Sloan Kettering Cancer Center” (MSKCC) in New York, with Watson analyzing patient
medical records, including both structured and unstructured data, and identifying treatment plans,
and rating and ranking treatment options, with supportive evidence, for physicians. That work
involved a core set of information that encompassed 14,000 hours of curated data from MSKCC,
300 medical publications, and numerous other sources, she noted. And now the work that began at
MSKCC is branching out to work with the Cleveland Clinic, MD Anderson Cancer Center, and
cancer hospitals and other hospitals in India, Thailand, and China.
“I have the pleasure to announce today a partnership with the American Cancer
Society, called Watson Patient Advisor for Cancer, which will involve understanding the
needs of the diagnosed cancer patient, with guidance, on symptoms, on support, on
wellness activities you can take. Eventually, we will also integrate this with Watson

Blockchain:
Oncology for doctors.” She was later joined on stage by Gary Reedy of the American
Cancer Society.
Rometty also announced the formation of a new initiative inside IBM. “We’ve
been widely recognized for the Corporate Services Corps, modeled after the Peace
Corps. Thousands of IBMers have helped with communities. Now we’re going to focus
that program on helping to increase access to care around the world. That could be
water, transportation, food safety, and the like. But every team will have a new
teammate, Watson. We’ve had two pilots for this already,” she explained. “We’ve done
a U.K. pilot, in one borough, on obesity and early mortality. And Watson has ingested all
the field notes with all the caregivers and in fact has designed fitness solutions for
many. We’ve also been working with the African Health Placements group in
Johannesburg. They hire people who give care in the last mile. We are working on an
app to get care to people faster.”
In the end, Rometty said, the ongoing Watson initiative has a very future-oriented
and strategic purpose. “Healthcare has the opportunity to dramatically change,” she
said. “And we understand something about dramatic change. But we also understand
something about the promise of change. This industry has very talented people, very
committed to change. That’s why we’ve invested in this as one of our moonshots. This
will drive this industry to value and outcomes-based. It will allow collectively the ability to
tackle some of the greatest challenges our world has seen in healthcare. And it will
generate a new generation of talent. So we’ve taken a different approach. It is about an
open ecosystem. It’s standards-based, regulatorily compliant, and open to all."

Blockchain:
2.7 Blockchain for Cybercurrency and Legal

Industry
R3 has traction in the cybercurrency markets as a blockchain technology.
Ethereum smart contracts have great potential to increase efficiency in the legal
industry. These self-enforcing contracts ensure that only once specific terms are met
will the contract follow through with its instructions. A smart contract will always run
exactly as written, so great care must be taken when creating one.
Blockchain for cybercurrency at $255 million in 2017 are expected to reach $9.7
billion in 2024
Figure 26. Blockchain for Cybercurrency, Market Forecasts Dollars, Worldwide,

2018-2024

Blockchain:
Blockchain for Cybercurrency, Market Forecasts

Dollars, Worldwide, 2018-2024
12,000.0
10,000.0 9,662.3
8,490.0
.
8,000.0
7,140.8
6,000.0
5,170.5
4,000.0 3,320.0
2,000.0 1,510.9
620.4
255.6
0.0
2017 2018 2019 2020 2021 2022 2023 2024
Law firms are part of this cybercurrency blockchain market. Due to their
immutable and autonomous nature, smart contracts provide an alluring alternative to
traditional legal contracts, and law firms are taking notice.
In August of 2017, ten law firms and four legal institutions joined the Ethereum
Enterprise Alliance. Among these is Hogan Lovells, the 14th largest law firm by revenue

Blockchain:
in the United States. This is a big deal, as it signifies Ethereum’s adoption by major law
firms, and with it, the adoption of smart contracts. However, legal interest in smart
contracts goes beyond the EEA.
Frost Brown Todd (FBT), a 500+ attorney law firm based in the US, has taken the
initiative to understand the implications of smart contracts in the legal field. In May of
2017, FBT announced their completion of a prototype smart contract to be used in
software escrow agreements. Attorney Josh Rosenblatt, head of FBT’s Blockchain team
was able to get first-hand experience with smart contracts. He stated that:
“For a lot of people in the industry, until you get your hands dirty, it’s hard to
understand what the advantages and disadvantages really are.”
While smart contracts are certainly a viable option for law firms, it’s unlikely that
attorneys will be working alone to create them. Attorneys generally don’t have the
technical skill set needed to do so. Smart contracts are written in computer code, so
third party smart contract specialists would likely be pulled in by law firms to collaborate
with attorneys. This means that while smart contracts may ultimately replace traditional
contracts, they demand a new set of skills to do so. This may slow adoption of smart
contracts in the legal industry.
The immutability of smart contracts is a double-edged sword. When written

correctly, it ensures a contract is successfully carried through regardless of the
circumstances. When done poorly, it can open up the contract to exploitation.
Carefully laying out clauses and edge cases can take a long time, as great care
must be used when programming a smart contract. Until a standard format for legal

Blockchain:
smart contracts is laid out, these contracts may not make a routine appearance in the
legal industry.
Smart contracts can streamline and enforce legal contracts, but they aren't going
to be replacing attorneys. In fact, smart contracts need attorneys to help lay out their
terms and conditions. It’s more likely that smart contracts will bring developers and
attorneys together to collaborate and provide progressive solutions for the legal
industry.
2.8 Blockchain for Supply Chain

Blockchain is a decentralized ledger that can be used to streamline processes
while keeping them secure. In supply chains instead of each business in the chain
(manufacturer, shipper, buyer) all using their own paperwork for tracking and invoicing,
the blockchain allows everyone to see each step in an open, secure ledger.
IBM has a lead in blockchain technology. IBM has been developing blockchain
to implement distributed databases. These are positioned to implement IoT and supply
chain applications, going way beyond crypto-currencies. IBM has put the technology
into production for it's own supply chain.
IBM has positioned to bring blockchain adoption to financial institutions, which

have recognized the technology's benefits but have been cautiously slow to adopt it.
Banks are accepting the blockchain cloud platform from IBM.
IBM has been selected by a consortium of seven large European banks to build
and host Digital Trade Chain, a trade finance platform based on blockchain, designed to
simplify and facilitate domestic and cross-border trade for small and medium

Blockchain:
enterprises. IBM has implemented enterprise blockchain to help quickly bring a highly
scalable system into production
IBM has a collaboration with 10 food suppliers, including brands Nestlé, Tyson
Foods, Unilever, Walmart, and Kroger, to track food products from farm to grocery store
shelves in the interest of efficiency and food safety. This market becomes a $2.5 billion
market by 2024.
Figure 27. Blockchain for Supply Chain, Market Forecasts Dollars, Worldwide,
2018-2024

Blockchain:
Blockchain for Supply Chain, Market Forecasts Dollars,

3,000.0
2,500.0
2,472.1
2,215.2
1,905.5
.
2,000.0
1,500.0 1,413.1
1,000.0
826.4
500.0
310.3
48.0 118.8
0.0
2017 2018 2019 2020 2021 2022 2023 2024
2.9 Blockchain for Internet of Things

Blockchain:
Figure 28. Blockchain for Internet of Things (IoT), Market Forecasts Dollars,
Blockchain for Internet of Things (IoT), Market

Forecasts Dollars, Worldwide, 2018-2024
7,000.0
6,000.0 5,875.3
5,000.0 4,663.0
.
4,000.0
3,552.7
3,000.0
2,333.5
2,000.0
1,208.7
1,000.0
7.1 37.6 211.0

0.0
2017 2018 2019 2020 2021 2022 2023 2024
Worldwide Internet of Things (IoT) markets are poised to achieve significant

growth with the use of sensors, cameras, and platforms that are used to help implement
precision digital control and send alerts for all manner or management of devices and
machinery. Visualization and digitization let people better control any device or
mechanical thing.
Providers of Industrial IoT aim to implement asset efficiency solutions. Designing

the asset efficiency solution, developing the application, adapting advanced engineering

Blockchain:
knowledge for the use cases, and supplying the information platform is the composite
task of the analytics engine. IBM is a premier supplier of an analytics engine with its
Watson product.
There is enormous variety in the Internet of things markets. Bosch supplies

industrial IoT sensor technology, acquiring data from the edge, providing device
management. Scalability is achieved by the Bosch IoT Suite and ProSyst IoT
middleware. The Vorto code generator enables M2M modelling. PTC supplies the
Thingworx Application Enablement Platform (AEP), used for creating dashboards,
widgets and other user interface elements. Intel provides the Moon Island Gateway
used for data aggregation at the edge, as well as horizontal infrastructure in
collaboration with HP.
Hitachi analytics is used to diagnose manufacturing process. Hitachi uses its

analytics platform to integrate production and sensor data outputs to help visualize,
analyze and diagnose a manufacture polymer mixing problems. A polymer mixing
process was said to be producing inconsistent output quality, with yields dipping to 50%.
Hitachi addressed the scrapping of poor batches and huge costs by addressing ever-
changing product specifications and variations in a range of production parameters.
Using IoT and the analytics platform, production engineers were able to stabilize the
process even as new product formulations were introduced.
The Internet of Things (IoT) is the next Industrial Revolution. It will impact the
way all businesses, governments, and consumers interact with the physical world. 1
Gbps and 10 Gbps speed has been used in data centers for years. The jump to 40
Gbps and 100 Gbps has come rapidly as a result of the need to increase the quantity of
data managed inside the data center with more analytics and more applications.

Blockchain:
Many of the Cloud 2.0 mega data centers have moved to 100 Gbps, presaging
the move to 400 Gbps and beyond.
One reason for the increase in speed is the growth of data consumption,
attributed to smartphones, social media, video streaming, Internet of Things (IoT), and
big data. Big pipes are used to cope with the huge quantities of data that are being
transferred.
Users, partners, suppliers and other mega-datacenters communicate using

digital systems that are automated and self-healing. The effect on the business is
compelling, managers have much more responsibility to create maps of strategy and
work with IT to see that developers tune the software to fit the current competitive
environment.
The explosion of data comes from smart phone apps and IoT digital onslaught of
streaming data that needs to be processed in real time to look for anomalies, look for
change, set alerts, and provide automated response to shifts.
According to Susan Eustis, lead author of the study, “Transparency is one of the
benefits of IoT that sensors bring to digital controls. The benefits of digital
manufacturing, farming, and automotive vehicles are higher productivity and more
efficient use of resource. Transparency in is being asked for by consumers.
Consumers want to know where their food came from, how much water and chemicals
were used in food preparation, and when and how the food was harvested and
transported. They want to know about consistent refrigeration during transport.”
Use of IoT sensors and cameras represents a key milestone in provision of value
to every industry. Customized cameras are used to take photos and videos with
stunning representations. Digital controls will further automate flying and driving,
making ease of use, flight stability, and automated cars a reality.

Blockchain:
New materials and new designs are bringing that transformation forward. By
furthering innovation, IoT continued growth is assured.
The worldwide market for Internet of Things (IoT) is $16.3 billion in 2016
anticipated to reach $185.9 billion by 2023. Sensors and software analytics platforms
are implemented with connectivity capability for streaming data from endpoints and
using analytics to process the data in a manner that generates alerts when appropriate.
The complete report provides a comprehensive analysis of Internet of Things

(IoT) in different categories, illustrating the diversity of uses for digital tracking devices in
industry, healthcare and consumer markets. Analytics makes the images more cogent
to everyone, farmers, doctors, machine operators, the uses of IoT are quite diverse.
Letting people anticipate problems that only become visible to humans days or weeks
after the sensors and images detect issues is a fundamental aspect of IoT, along with
generating apocopate levels of alerts. Not too many and not too few.
IBM is an established leader in the Internet of Things with more than 6,000 client
engagements in 170 countries, a growing ecosystem of over 1,400 partners and more
750 IoT patents which together help to draw actionable insight from billions of
connected devices, sensors and systems around the world. IBM has a USD 3 billion
commitment to bring Watson cognitive computing to IoT. In 2016 IBM launched a $200
million global headquarters for its Watson IoT unit in Munich Germany. 1,000 IBM
developers, consultants, researchers and designers seek to drive deeper engagement
for IoT with clients and partners.
With blockchains, trust can be embodied in the transaction itself. A far greater
assurance of trust is now possible. Smart contracts, certifications and digital
compliance on blockchain networks will codify trust at the level of the individual

Blockchain:
transaction. This codification of trust can optimize transactional relationships, making

business interactions across ecosystems far more efficient.
Trust will become a dynamic state: Depending on the role of the participant and
the particular transaction, individuals and institutions can be deemed as trusted, semi-
trusted or untrusted.
Reputation systems built on blockchains can serve as a permanent record of

organizational or individual behavior. Ledgers, once the system of record for business,
become a robust record of trust for business and government.
Mobile apps morph into a new generation of decentralized apps. These

represent trillion-dollar markets. They make blockchain technology accessible to the
shopkeeper in Nairobi, the individual who generates solar power in Tucson and the
inventor with a 3D printer in Bangalore.
2.9.1 SoftBank CEO Masayoshi Son Sees 1 Trillion

Devices for Internet of Things
SoftBank ARM has partners that shipped 15 billion devices in 2015, generating
$50 billion in chip sales. Masayoshi Son, CEO of SoftBank defended the ARM
acquisition for $31 billion. The acquisition is based on the expectation that the Internet
of Things (IoT) could enable everyday objects to be smart and connected. This will lead
to an explosion of new technologies.
He compared the IoT to the Cambrian explosion that enabled thousands of new
species on Earth — that will lead to 1 trillion connected IoT devices. And that will lead
to The Singularity, when machine intelligence exceeds the collective intelligence of
humans, Son said.

Blockchain:
Son started his speech with a slide on evolution. He noted that the trilobite was
the first creature on Earth that had eyes, or the ability to sense and process the
environment. And that creature lived during the Cambrian Explosion, a period around
500 million years ago, when thousands of species were born.
“The Internet of Things explosion is coming,” he said. “If the Cambrian Explosion
happened, so too will the Internet of Things explosion happen.”
By 2018, the number of Internet of Things devices will surpass the number of
mobile devices, he said. By 2021, we’ll have 1.8 billion PCs, 8.6 billion mobile devices,
and 15.7 billion IoT devices. In the next 20 years, we will see 1 trillion Internet of Things
devices. By 2035 the amount of data will grow more than 2,400 times, from 1 exabyte
to 2.3 zetabytes.
2.10 Cloud Revenue

IBM beat Amazon In 12-month cloud revenue, $15.1 Billion To $14.5 Billion. IBM
outperforming Amazon in cloud-computing revenue for the 12 months ended June 30,
$15.1 billion to $14.5 billion was a major win for IBM t hat has been trailing others in
cloud computing, often a distant 4th.
In so doing, IBM also became the first enterprise-tech vendor to surpass $15
billion in fully recognized cloud revenue for a 12-month period. Amazon Web Services
cloud-computing unit posted quarterly revenue of $4.1B, up 42% over the same quarter
a year ago. When that $4.1 billion is added to AWS revenue figures for the previous 3
quarters, the total for the trailing 12 months ended June 30 is $14.5 billion.

Blockchain:
Amazon remains tied with Salesforce.com for #2 on cloud revenue rankings.

The important distinction about IBM's $15.1-billion figure is that while it represents
results that IBM has already achieved.
As businesses move beyond cloud experiments to deeply strategic deployments,

the balance of power in the Cloud Wars Top 10 is shifting toward those tech providers
that can move those business customers past the infrastructure phase and into the
high-value realm of AI-driven competitive advantage.
The top providers of public-cloud IaaS are Amazon Web Services, Microsoft and
Google. The next and vitally strategic cloud implementations relate to software, around
the booming potential for AI, Machine Learning, and Blockchain.
Microsoft has an absolute lock at the top of the cloud market due to: its deep
involvement at all three layers of the cloud (IaaS, PaaS and SaaS); its unmatched
commitment to developing and helping customers deploy AI, ML and Blockchain in
innovative production environments; its market-leading cloud revenue. The
extraordinary vision and leadership of CEO Satya Nadella is a plus for the company.
Amazon has compelling, easy to use end-to-end software in addition to

compelling mega data centers that support systems integrations with any node to any
node communication. Amazon is set to make some big moves to bolster its position in
software.
IBM has leveraged the strength of its highly successful, vast array of software
expertise and technology, transforming from the on-premises world to the cloud. In so
doing, IBM has created a $15.8-billion cloud business. That includes a $7 billion
services business supporting global corporations convert legacy systems to cloud or
cloud-enabled environments.

Blockchain:
IBM plays in all three layers of the cloud—IaaS, PaaS and SaaS—which is
hugely important. It allows IBM to give customers more choices, more seamless
integration, better cybersecurity, and more reasons for third-party developers to rally to
the IBM Cloud.
2.11 Blockchain Pricing

The cost of a blockchain network is shared across its members. Flexible
membership plans enable each ecosystem's unique needs for compute, performance
and isolation to be met. Participants in the network, join the network via one of several
membership plans.
2.11.1 IBM Blockchain

The cost of a blockchain network is shared across its members. Flexible
membership plans enable each ecosystem’s unique needs for compute, performance
and isolation. Participants in the network, join the network via one of several
Membership Plans.

Blockchain:
Figure 29. IBM Blockchain Cost
Source: IBM.
This plan entitles a member of the Blockchain Platform to:
- Access to the network’s transaction ordering service
- A highly available Certificate Authority
- A network Peer, running in a highly secure environment, isolated from other

members’ environments (additional peers can be purchased for high availability)
-Cryptographic Keys stored in a Hardware Security Module (HSM); certified to

FIPS 140-2 Level 4; the highest in the industry.

Blockchain:
The IBM Blockchain Platform is a fully integrated blockchain platform designed to

accelerate the development, governing, and operation of a multi-institution business
network. Enterprise plan meets production requirements including security and
performance for regulated industries.
Figure 30. IBM Blockchain Pricing Plans
Source: IBM
IBM Blockchain is secured using IBM hardware security modules that cost on
average about $10,000 per month for four nodes. IBM Blockchain gives users the
ability to spin up blockchain networks with tailored governance models for onboarding
new customers, supporting about 1,000 transactions per second.

Blockchain:
2.11.2 Microsoft Blockchain Pricing

Burstable VMs—B1S
Most Economical
B-series VMs provide an economical, low-cost solution for workloads that

normally don't use a lot of CPU but occasionally need to burst to handle higher
workloads. Free for 12 months.
Specs:
B1S1 vCPU1 GiB RAM
Starting from
$0.011/hour
+ Add to estimate
Compute optimized—Fv2
Raw Compute Power
Fv2 is a compute-optimized VM family and uses the Intel Skylake processor. Fv2
delivers the latest Intel CPU for raw compute power.
Specs:
F2 v22 vCPU4 GiB RAM
Starting from
$0.085/hour

Blockchain:
+ Add to estimate
General purpose—Dv3
Balanced CPU and memory
Dv3 family is the latest generation of our general purpose VMs. It's appropriate
for a variety of workloads.
Specs:
D2 v32 vCPU8 GiB RAM
Starting from
$0.096/hour
+ Add to estimate
Memory optimized—Ev3
High memory-to-core ratio
Ev3 is latest generation memory-optimized VM. It's great for relational database
servers, caches, and in-memory analytics.
Specs:
E2 v32 vCPU16 GiB RAM
Starting from
$0.133/hour

Blockchain:
2.12 Blockchain Regional Market Segments
Figure 31. Blockchain Regional Market Segments, 2017
Rest of World
1%
Asia Pacific /
Japan
3%
China and India
5% US
76%
Europe
15%
Total $706.`
Million
2017

Blockchain:
Figure 32. Blockchain Regional Market Segments, 2017

Blockchain
Regional Market Segments, 2017
MM$
2017 %
US 536.6 76.0
Europe 105.9 15.0
China and India 35.3 5.0
Asia Pacific / Japan 21.2 3.0
Rest of World 7.1 1.0
Total 706.0 100.0
Blockchain Regional Market Segments in the next 6 years likely to have

measurable market share are:
North America
US
Canada
Europe
UK
Germany
France

Blockchain:
Rest of Europe
APAC
China
India
Australia and New Zealand (ANZ)
Rest of APAC
Latin America
Brazil
Mexico
Rest of Latin America
MEA
Middle East
Africa
The Americas are set to dominate the blockchain BT market during the forecast
period. The market dominance of this region can be attributed to the high number of
mergers between banking firms and BT service providers. Rising demand for cloud-
based BT is expected to increase the viability of transactions in the coming years.

Blockchain:
3.1 Blockchain Best Known For Being The

Technology Underlying Cryptocurrencies
Blockchain is positioned to have broad application for automating the transfer of
value. Blockchain can do for transactions what the internet did for the transfer of
information. Crypto currency has been at the front of that wave of innovation and
change and as such is the model for new types of digital financial management.
As a decentralized ledger, blockchain can facilitate exchanges of assets without

the need of a middle-man. As such, it has gripped the attention of Wall Street with
Goldman Sachs, JPMorgan, and Morgan Stanley all participating in blockchain
consortiums.
A new index includes a wide-range of companies featured on the index's site.
Governments want their piece of the action through taxation and they will get it.
A fatal flaw of Bitcoin as a potential currency is the ability to avoid taxation.
The South Korean justice ministry suggested shutting down cryptocurrency

exchanges. The government is set to strengthen requirements of local exchanges to
prevent money-laundering and toughen punishments for crypto-related crimes. The
government will put restrictions on cryptocurrency advertisements.

Blockchain:
3.2 JPMorgan Chase Blockchain Network

Quorum
JPMorgan Chase & Co blockchain network powered by Quorum, a blockchain
technology developed by JPMorgan. Other banks are expected to join in the coming
months. JPMorgan has blockchain-related projects based on Quorum, an open-source,
enterprise-grade transaction network focused on data privacy. The platform is built on
the network behind the digital currency ethereum.
The bank is also a founding member of the Enterprise Ethereum Alliance and
partnered with the developers of privacy-focused digital currency Zcash.
JPMorgan Chase & Co payment processing network uses blockchain

technology, in partnership with Royal Bank of Canada and Australia and New Zealand
Banking Group. JPMorgan Chase Chairman and CEO Jamie Dimon said bitcoin is a
"fraud" that "won't end well." He is not dismission blockchain, merely BitCoin. He
believes that regulation will need to be part of the cyber currency initiatives. JPMorgan's
Dimon supported government-backed digital currencies.
JPMorgan Chase blockchain-based system significantly reduces the number of

parties needed to verify global payments. It is expected to cut transaction times from
weeks to hours. Royal Bank of Canada and Australia and New Zealand Banking
Group are JPMorgan's partners in the project, called the Interbank Information Network.
Blockchain technology eliminates the need for a third party intermediary by

creating a permanent, open record of all transactions on a network. A buyer and seller
can interact directly. Their exchange is recorded almost immediately on the blockchain.

Blockchain:
Applications of the technology include speeding up financial transactions and

bringing banking services to underdeveloped countries.
Leaders from banks such as TD Bank, Mizuho Financial Group and National
Australia Bank are working with IBM to develop and deploy a system for sending
payments across international borders nearly instantaneously using blockchain.
The IBM project uses digital assets issued on a network run by a U.S. nonprofit
called Stellar. A New Zealand financial services firm called KlickEx, the initial
subscriber to the network, handles the currency conversion.
The entrance of major companies into blockchain only emphasizes the distinction
between the technology and bitcoin prices.
IBM's has not embraced cryptocurrencies. Blockchain and distributed ledger

market development at IBM support financial institutions by backing digital assets.
3.3 Blockchain Best Known For Being The

Technology Underlying Cryptocurrencies
Blockchain is best known for being the technology underlying cryptocurrencies
like bitcoin. It is slated to move beyond a crypto currency status but in the meantime,
the digital currency BitCoin has run up six times in price in 2017 to a record high of
$5,856. Soon BitCoin traded lower near $5,675, according to CoinDesk.
Figure 33. Bitcoin Year-To-Date Performance, late 2017

Blockchain:
Source: CoinDesk
3.4 HIVE Blockchain Technologies

HIVE Blockchain Technologies is building a bridge from the blockchain sector to
traditional capital markets. The company has strategically partnered with Genesis
Mining Ltd., the world’s leading cryptocurrency mining hashrate provider, to build the
next generation of blockchain infrastructure."
3.5 Accenture
Accenture is working closely with leaders from across a broad range of
industries, governments, consortia, the academic community, and its key technology
alliances to move blockchain technology forward so that it can help improve transaction
management.
3.6 Hitachi
Hitachi is a founding member of the Hyperledger Project and consortium, and
has partnered with Tech Bureau to use the NEM-based Mijin Blockchain platform for
Hitachi’s point management solution “PointInfinity,” which serve 150 million members
and users.
3.7 Overstock

Blockchain:
Overstock operates the tZERO exchange. This has been at the forefront of
blockchain development, working closely with regulators since 2015. It is launching the
SEC-compliant ATS for blockchain assets, a private blockchain bond offering. The
public issuance of a blockchain security is a breakthrough.
3.8 Digital Currency: BitCoin

BitCoins are a crypto-currency. They can be used like a currency, but do not
physically exist like dollar bills. They are an online currency which can be used to buy
things. They are digital cash that exist as bits on people's computers.
Digital currencies have the capability to solve the issues of the time and expense,
moving value in a cost-efficient global wire.
Real-time digitization is about the blockchain technology, it’s about governments.

When people form nations, one of the first things they do is form a currency.
Consumers feel better putting their money with a brand protected by regulators.
Cryptocurrency Bitcoin is unstable, making a rebound on one Saturday after

losing almost half its value earlier in the same week. Analysts say more volatile trading
should be expected.
Here is one account of volitity.
Bitcoin fell nearly 30 percent at one stage on Friday to $11,159.93. At 3:09 p.m. (2009 GMT) on
Tuesday, bitcoin BTC=BTSP was up 15 percent at $16,030 in light trading on the Luxembourg-based
Bitstamp exchange. The digital currency had risen around twentyfold since the start of the year, climbing
from less than $1,000 to as high as $19,666 on Dec. 17 on Bitstamp and to over $20,000 on other
exchanges. Critics have pointed to bitcoin's design flaws and hacks of digital "wallets" in which bitcoins
are kept as an alternative to traditional currencies. Prices of other cryptocurrencies, which slid along with

Blockchain:
bitcoin last week, have also recovered, with Ethereum, the second-biggest cryptocurrency by market size,
quoted around $771, up from Sunday's low of $689 but still far from highs around $900 hit last week.
The BitCoin has no inherent value. BitCoin currency is not managed by any
government agency, nor is it backed by any government. Bitcoin values are purely
dependent upon holders having faith they will continue to have value. Right now the
market looks a lot more like tulip mania than careful investing.
What makes BitCoins unique, versus other currencies, is that there is no financial
system, like the U.S. Federal Reserve, managing their existence and value. Instead
Bitcoins are managed by a bunch of users who track them via blockchain technology.
And blockchain technology itself is not inherently a problem; there are folks figuring out
all kinds of uses, like accounting, using blockchain.
It is the fact that no central bank controls Bitcoin production that makes them a
unique currency. Independent people watch who buys and sells, and owns, Bitcoins,
and in some manner make a market in Bitcoins.
Bitcoins increased in value from about $570 to $4,300, 750% rise in one year.
Because of this huge return, more people, hoping to make a fast fortune, are becoming
interested in possibly owning some Bitcoins.
On December 22, 2017, while the Western Hemisphere slept, Bitcoin

plummeted. Just after midnight Eastern Time on Friday, the cryptocurrency was valued
at a little over $15,000, on the digital currency exchange Coinbase. At that point, it was
already well below the $19,783 all-time high it had hit the week before.
Over the course of the night, Bitcoin began to decline erratically, occasionally
spiking but following a general downward trend. Around 9:22 a.m. Eastern, it hit a

Blockchain:
temporary floor, valued at $10,400. By that point, it had declined more than $6,000
from its short-term peak the morning before, having lost more than one-third of its value.
Earlier in May, 2017 - since hitting a record high of over $2700, the digital
currency BitCoin wet into a sharp correction, losing 30% of its value. The fundamental
reason for these massive price swings is that the promise of blockchain is profound, yet
so far from reality.
The US SEC has warned investors to have extreme caution over cryptocurrency
investments. Bitcoin does not pay out profits (like shares) or rent (like property) and is
not attached a national economy (like fiat currencies). The underlying value has yet to
be discovered by people other than drug dealers and terrorists seeking to move large
sums of money across borders
Bitcoin was not the only currency hit by a sharp drop. Other prominent
cryptocurrencies fell, including Ethereum, Litecoin, and Bitcoin Cash.
One of the largest bitcoin trading platforms, Coinbase, halted trading for more
than two hours Friday, citing "today's high traffic." But the service was restored around
1845 GMT.
The government of South Korea and many other governments have held
meetings to discuss measures to deal with the growing trend of cryptocurrency
speculation. The regulators clarified the clampdown on virtual accounts as well as other
measures to end anonymity. The Ministry of Justice suggested an even more extreme
measure.
Much of the discussions on Thursday centered on the subject of virtual accounts

that are issued by banks for cryptocurrency exchanges. The government announced,

Blockchain:
“It [the government] is banning the use of anonymous virtual accounts in

cryptocurrency transactions as part of efforts to curb virtual currency speculation.”
: Russian regulators have drafted a law to restrict crypto mining, payments, and
token sales.
This follows the regulators’ previous announcement on the virtual account

clampdown that is part of the “emergency measures” on cryptocurrency regulation,
which news.Bitcoin.com reported. Even before the emergency measures were
announced, banks anticipated the ban and stopped issuing new virtual accounts. This
effectively put some exchanges out of business.
3.9 China Opens Its Financial System To The

World
China took a major step toward the long-awaited opening of its financial system.
It removed foreign ownership limits on banks while allowing overseas firms to take
majority stakes in local securities ventures, fund managers and insurers.
The new rules give global financial companies access to the world’s second-
largest economy. International banks and securities firms have been frustrated by
ownership caps. Those who enter China face risks — including competition from state-
owned players and the threat of rising defaults.
The opening is expected to create opportunities for foreign firms. The hope is
that the country’s financial system becomes more efficient.

Blockchain:
Chinese markets took the news in their stride, with the nation’s benchmark
Shanghai Composite Index fluctuating in a narrow range after the announcement.
Shares of Chinese financial companies were mixed in Hong Kong.
Foreign financial firms applauded the move, with JPMorgan Chase & Co. and
Morgan Stanley saying in statements that they’re committed to China. UBS Group AG
said it will continue to push for an increased stake in its Chinese joint venture.
3.9.1 China Ending Anonymity of Virtual Accounts to

Cryptocurrency Exchanges
Hong Nam-ki, the minister of the Office for Government Policy Coordination,
explained that only real-name bank accounts and matching accounts at virtual currency
exchanges can be used for deposits and withdrawals. The issuance of virtual accounts
to cryptocurrency exchanges is banned…The financial intelligence unit and the financial
supervisory service carry out joint inspections to make sure that real-name transactions
take root at an early date.
The government’s efforts have resulted in the ability to make banks identify
virtual account owners. When the regulators released their emergency measures, they
asked banks to confirm the identity of virtual account owners.

Blockchain:
3.10 Korean Blockchain Association

To comply with the regulation banks are building a system to identify virtual
account owners in collaboration with the Korean Blockchain Association. The
association has been working on self-regulation with 40 companies, including 14 crypto
exchanges.
Despite repeated warnings by the government of the risks of cryptocurrency

trading, trading continues. Speculation has shown little signs of abating, with values of
many cryptocurrencies excessively higher at home than abroad.
South Korea has outlined new attempts to dampen crypto markets. The Ministry
of Justice heads the task force to spearhead regulations. South Korea has been a
proponent of extreme measures. Earlier this month, the ministry suggested a blanket
ban on cryptocurrencies in South Korea. However, this proposal was not adopted in the
emergency measures.
The Justice ministry suggested “shutting down cryptocurrency exchanges.” The

government will strengthen requirements of local exchanges to prevent money-
laundering and toughen punishments for crypto-related crimes. The government will put
restrictions on cryptocurrency advertisements.
The South Korean government is not trying to "discourage trading" They are
regulating it which it obviously needs.

Blockchain:
3.11 European Union Central Bankers On

Cryptocurrency
European Union central bankers are becoming increasingly vocal on the subject
of cryptocurrency, BitCoin. Its precipitous price increase this year seems to coincide
with wide-ranging statements, including the digital asset’s threat or lack thereof.
Recently, the governor of the National Bank of Belgium (NBB) explained that more
people should be warned about the decentralized currency and how it is not a currency
at all.
In Germany, a Bundesbank board member said there were no plans to issue

state-backed cryptocurrency. It is expected that the Bundesbank will embrace the
innovations and the efficiency gains that this can generate for the payment system. The
organization did provide a barrage of disparaging comments regarding cryptocurrencies’
market leader.
The NBB is Belgium’s central bank and part of the of the Eurosystem which
comprise members of the European Central Bank. Mr. Smets, 66, has been its
governor since 2015 after serving under two prime ministers as a cabinet chief. In
addition to his NBB duties he participates in a dozen boards, academic and financial.
Quoted in De Vrije Markt, Mr. Smets explains, “We need to warn people about
the bitcoin, and people who invest in bitcoins can lose a lot.” With its being woven into
new financial products, the digital currency could potentially be catastrophic for wider
economies due to its volatile nature.
BitCoin not being legal tender, hacking, fluctuations and the risks relating to
purchasing power of the decentralized currency are problematic. Its lack of stable
backing such as that which the euro has with its tether to the European Central Bank is

Blockchain:
a problem. Bitcoin’s price moving from 1,000 USD at the beginning of 2017 to around
15,000 USD is a problem.
Figure 34. Difficulties of BitCoin Cybercurrency

Being woven into new financial products creates huge risk
Facilitates terrorism
Facilitates drug dealing
Supports money laundering
Digital currency could potentially be catastrophic for wider economies
Difficulty because of its volatile nature.
BitCoin not legal tender
Hacking
Fluctuations
Risks relating to purchasing power of the decentralized currency
Lack of stable backing such as that which the dollar and the euro have

Blockchain:
3.12 Fidelity Investments, Blockchain

Fidelity Investments sees blockchain as a collaborative technology for s broad
group of software developers, entrepreneurs and academics. The aim is to have these
groups collaborate to solve problems relating to broad adoption of blockchain
technology.
Fidelity has embraced the concept of blockchain and wants solutions to the
problems associated with implementing digital currencies.
Figure 35. Fidelity Identification of Barriers To Blockchain Adoption

Limits of the technology
Policy issues
Control of the systems
Customer usability.
Fidelity has invested in blockchain through venture deals with TradeBlock, Axoni
and Boost VC .Academic partnerships have been forged to explore blockchain. The
firm’s innovation group, Fidelity Labs, has been conducting research and experiments in
the area. Blockchain technology is a more efficient way to settle securities, it
fundamentally changes market structures and the architecture of the Internet.
Fidelity is focused on investing in privacy since that’s important to customers.

Fidelity has encouraged an open dialogue with regulators because the technology’s
rapid growth is making it difficult for regulators to keep up.

Blockchain:
Fidelity had $6.1 trillion in assets under administration, including managed assets
of $2.2 trillion in 2017.
3.13 Ethereum
The virtual currency bitcoin introduced blockchain. Since then, ethereum
blockchain allows users to send value from one person to another in the same manner
as sending an email. Ethereum is gaining interest because it allows for more complex
actions in a shared and decentralized manner. It stores fully functioning computer
programs called smart contracts on its blockchain.
Ethereum is a way for people to make agreements and automate enforcement,

on a distributed network of computers. Once participants create contracts they can use
them to manage almost any kind of enterprise or organization.
Ethereum technology is not able to offer scalability, privacy and peer-to-peer

settlement all at once.
Blockchain technology has drawn attention from the financial industry. The
potential to free up billions of dollars in capital has appeal. A significant hurdle includes
convincing competitors to work together in a network that shares market information.
Regulators must be convinced that linked networks of computers can be trusted to
manage aspects of financial markets.
JPMorgan Chase & Co., BP Plc, Microsoft Corp., International Business

Machines Corp. and ING Groep NV are among companies trying to determine if shared
databases recorded on the blockchain can cut costs by speeding financial transactions
or ensuring the efficiency of a supply chain.

Blockchain:
Companies generally support blockchain technology for tracking payments.

They generally take the position that trading bitcoin is against banking rules, adding that
bitcoin is "stupid" and "far too dangerous
Governments soon will crack down on digital currencies because cryptocurrency

is being used for illicit purposes. JP Morgan Chase was one of 86 corporate firms to
play a role in forming The Enterprise Ethereum Alliance. An open-source blockchain
initiative has great merit. EEA is for big banks and tech companies, letting them come
together and build business-ready versions of the software behind Ethereum. Ehtereum
is a decentralized computing network based on digital currency.
3.14 Blockchain Bitcoin

Bitcoin is a cryptocurrency that exists within a network of computers. This
decentralized network exists on computers all over the world. That decentralized
approach is what makes bitcoin private, secure and free from government manipulation.
When new bitcoins are created, a computer-intensive process called “mining” is

initiated. bitcoin transactions are processed at the same time. Anybody who is trying to
send or receive bitcoins must wait until the mining process has been completed to have
their transaction processed.
That can be slower than credit card transactions. Visa processes 150 million
transactions per day, or 1,700 transactions per second. It could do up to 24,000
transactions per second.
The bitcoin network can only process about 6.5 transactions per second. The
average transaction takes about 10 minutes to process. On some days over the last
year, bitcoin transactions have taken more than 42 minutes.

Blockchain:
As bitcoin use grows, waiting times are getting longer because there are more
transactions to process.
Source: Bitcoin.
Long wait times are a problem. Bitcoin is unstable and slow.
There are two possible solutions: Make the amount of data processed in each
bitcoin mining block smaller; or make the blocks of data bigger, so that more information
can be processed at one time.
To try to reduce the size of the bitcoin block and speed things up, a majority of
the world’s bitcoin miners voted to adopt a technology known as a segregated witness,
called SegWit2x. SegWit2x reduces the data in each block by removing some of it from
the current block and moving it to an extended block that isn’t verified every time.

Blockchain:
But moving some data out of new data blocks potentially makes bitcoin less
secure. Unless every bit of data is verified every time a block is mined and transactions
are processed, it may be possible to forge or otherwise alter the data trail. That would
make bitcoin useless.
3.15 Ripple Blockchain
Ripple (XRP)
The Ripple protocol’s token value has grown exponentially over the past few
months. The Ripple network is an all-in-one remittance network and currency
exchange. The protocol is called a real-time gross settlement system (RTGS) which
acts as a distributed ledger between a network of nodes.
These nodes, validating servers do not offer an incentive. Bitcoin network is

managed by independently owned servers. This has led to accusations that Ripple’s
network is centralized because validating servers are operated by banks, market
makers, and Ripple Labs. Financial institutions using Ripple include Earthpoint, Fidor
Bank, Bank of America, and HSBC.
In 2018 Ripple is embraced as the “next bitcoin. XRP ecosystem needs a node
validating database. These will likely be forced on bitcoin, ethereum, and other public
blockchains.

Blockchain:
4.1 On a Blockchain, a Node Replicates The

Data For All Nodes
On traditional server architectures, every application has to set up its own
servers that run their own code in isolated silos, making sharing of data hard. If a single
app is compromised or goes offline, many users and other apps are affected.
On a blockchain, a node replicates the necessary communications data for all

nodes to reach it. An agreement with all others is needed to set up a node. Nodes can
be compensated by users and app developers. This allows user data to remain private
and apps to be decentralized like the Internet.
Figure 36. Ethereum Platform Decentralized Processing
Source: Ethereum

Blockchain:
4.2 Blockchain Electricity Usage

The computer process that generates each coin requires significant amounts of
electricity for processing. More electricity is consumed than is consumed in a year.
Bitcoin "mining" is far less efficient than other computing processes. Bitcoin is a tiny
part of all data center electricity use but s disproportionately high because of the
synchronous nature of the processing.
Asynchronous processing is more likely to be implemented as cybercurrency

takes hold.
4.3 Accenture Patent Tied To "Editable

Blockchain"
Accenture has a patent tied to editable blockchain. The aim is to create a
permissioned blockchain that would allow parties to alter data in the event of errors or
fraud. Oatent filing details that depending on the circumstances, a secret that controls
the key may be held by one or many parties. In some cases, multiple individuals could
possess parts of a secret, meaning the whole group would have to sanction any access
to the ledger.
Accenture blockchain practice seeks to deal with the challenge of how to fix
things when they go wrong in order to help mature the technology.

Blockchain:
5.1 360 Blockchain Inc

360 Blockchain Inc. is a firm that provides financial services to both public and
private companies.
5.2 Accenture
Accenture is at the forefront of blockchain innovation. Accenture offers practical,
real world applications to clients. Accenture blockchain-based technology is backed by
a global team of experts that work with each client to help build smart strategies around
effective use-cases, investment, and implementation.
Blockchain has the potential to drive profound, positive change. It is working

closely with leaders from across a broad range of industries, governments, consortia,
and the academic community. Key technology alliances have been put in place by
Accenture to move technology in a manner that lets it help improve the way the world
lives and works.
5.2.1 Accenture Blockchain Solutions

Proprietary software add-ons, redaction, and key management modules are
offered. Accenture has hardened security modules.
5.2.2 Accenture Blockchain Partnerships

In 2016, Accenture entered into an alliance with Digital Asset. Accenture and
Digital Asset are working together to make Distributed Ledger Technology (DLT)
Blockchain ledgers a reality for clients.

Blockchain:
DLT allows financial institutions to rely on the same source for data. In this
manner, data exchange is obviated and mistakes are vastly minimized. Customers and
exchanges can agree on updates.
Data exchange is managed in a secure and independently verifiable way. The

Digital Asset Platform is designed for systematically-consequential financial institutions
and is reusable across asset classes and workflows.
5.2.3 Accenture Alliance with Digital Asset Seeks To

Fundamentally Change The Way Companies Verify
And Settle Transactions
Distributed Ledger Technology DLT has applications used across a broad range
of industries. This new infrastructure supports next generation financial services
applications. Next generation financial services are being built utilizing this technology
to address the issues of digital currency in the digital economy. Accenture and Digital
Asset are working with financial institution customers to fundamentally change the way
they verify and settle transactions.
Solutions built with the Digital Asset Platform improve post-trade efficiency and
security, while reducing cost, latency errors, risk and capital requirements.
Accenture collaborates with Digital Asset to provide a range of consulting and

technology services. These include feasibility studies, business case assessments, and
operating model designs. Advisory services are directed to commenting on systems
architecture, cybersecurity, and cloud computing alternatives. Accenture consulting on
Blockchain is able to support full-scale systems integration.

Blockchain:
Accenture collaborates with customers to define use cases, to integrate the

platform with legacy systems, and to develop a pragmatic deployment strategy.
Accenture and Digital Asset are supportive to customers, helping make distributed
ledger technology a reality.
Digital Asset brings 21st century technology to existing financial infrastructure,

with a focus on post-trade processing.
In 2016, Accenture entered into an alliance with Digital Asset. The companies
are working together to make Distributed Ledger Technology (DLT) a reality for clients.
DLT allows financial institutions to rely on the same source of truth and agree all
updates in a secure and independently verifiable way. The Digital Asset Platform is
designed for systematically-consequential financial institutions and is reusable across
asset classes and workflows.
DLT has applications across a broad range of industries. It provides a new

infrastructure on which the next generation financial services applications are being
built. Utilizing this technology, Accenture and Digital Asset are working with incumbent
financial institutions to fundamentally change the way they verify and settle transactions.
Solutions built with the Digital Asset Platform improve post-trade efficiency and
security, while reducing cost, latency errors, risk and capital requirements.
5.2.4 Accenture Collaborates with Partners

Accenture collaborates with partners to provide a range of consulting and
technology services. Feasibility studies, business case assessments and operating
model design to advisory services on systems architecture, cybersecurity and cloud
consulting through to full-scale systems integration are provided.

Blockchain:
Partners collaborate to define the right use cases, integrate the platform with
legacy systems and develop a pragmatic deployment strategy. Together, Accenture
and Digital Asset are a powerful combination in helping to make distributed ledger
technology a reality for clients.
5.2.5 Accenture Digital Asset Partners
Figure 37. Accenture Digital Asset Partners

Blockchain:

Blockchain:

Blockchain:

Blockchain:
Source: Accenture.

Blockchain:
5.2.6 Accenture Revenue
Accenture Revenue by Segment

(In Millions of Dollars)
Three Months Ended November 30,
2016 Q3 2017 Q3
Communications, Media & Technology 1,686.2 1,869.8
Financial Services 1,809.8 2,059.1
Health & Public Service 1,500.8 1,634.1
Products 2,320.2 2,584.0
Resources 1,194.9 1,332.9
Other 3.8 43.3
Total Revenue 8,515.7 9,523.2
Source: Accenture company reports
5.3 Abra
Abra is a bitcoin-based digital currency wallet. Abra provides an app that lets
people invest in bitcoin and ether. Users can access a bank account, American
Express Card, or cash to fund the Abra wallet and convert it into bitcoin. Funding can
occur as quickly as in one day.
Abra automatically creates a non-custodial mobile bitcoin-based wallet. The user

has a key, so that person is in control of the funds at all times. Users can exchange
bitcoin for a supported fiat or cryptocurrency. Exchanges are supported in the app.

Blockchain:
5.4 Amazon
Amazon AWS is investing in blockchain though a partner ecosystem. It has
partners in Healthcare and Life Sciences, Financial Services, Supply Chain
Management, Security, and Compliance. These partners innovate with Amazon. For
example, based on feedback from Healthcare and Life Sciences customers, Amazon is
working on identity resolution, auto-adjudication, and supply chain integrity applications.
Blockchain is the application of ledger technology to a list of records, or blocks.

Blocks are cryptographically linked to one another via timestamps and attributes
creating a chain of information. Blockchains are resistant to data modification since the
alteration of one block requires consensus across the recorded chain or ledger
AWS provides the broadest and deepest capabilities and the largest global
infrastructure. The AWS mega datacenter based technology is used for building end-to-
end blockchain platforms. These mega datacenters operate cost efficiently and at
scale.
APN Technology and Consulting partners offer a rapidly growing selection of

blockchain and distributed ledger solutions. There is support for multiple protocols.

Blockchain:
Figure 38. Amazon Blockchain Technology Features
Immutable
Secure
Reliable
Trustworthy
5.4.1 Amazon Blockchain Partners

Blockchain applications span a wide variety of use cases and industries,
including: healthcare and life sciences, financial services, supply chain management,
security, and compliance. T-Mobile has built Jazz which allows developers to
seamlessly create, deploy, manage, monitor & debug cloud native applications
leveraging serverless services. Along with this platform they are building a digital
identity and authentication platform on AWS with Sawtooth, a blockchain technology
from the Intel Hyperledger project.

Blockchain:
T-Mobile leverages Intel Sawtooth along with AWS services including Amazon
Elastic Compute Cloud. Amazon Simple Storage Service, Amazon Lambda, and
Amazon EC2 Container Service are used to power this solution.
Figure 39. Selected AWS Blockchain Partners

Blockchain:
Source: Amazon.
PwC has been working with Guidewire, one of the world’s leading insurance
platform providers, to make the bordereau process more efficient. They use a
blockchain-based smart contracts solution to auto-approve claims and trigger payments,
removing the need for manual intervention, and differentiating their product in the
insurance market. It is built on AWS and uses services AWS Identity and Access
Management, Amazon EC2 Container Service, Amazon Kinesis, and Amazon Simple
Storage Service.

Blockchain:
Pokitdok has been working with healthcare organizations including VSP to vastly
improve the patient experience, increase transparency of the care delivery process and
help drive down costs for customers using the underlying Dokchain platform. Pokitdok
has been able to do this by partnering with AWS and using services of Amazon Elastic
Compute Cloud, Amazon Simple Storage Service, and Amazon EC2 Container Service
to stand up the technology.
5.4.2 Amazon Blockchain Partner Solutions

Blockchain:
Source: Amazon.

Blockchain:
5.4.3 Amazon Sawtooth

Amazon Sawtooth provides an enterprise-grade solution for building, deploying,
and running distributed ledgers. It features one click deploy. Users can create or join a
block chain network. They can track ownership and provenance of assets. They can
integrate with AWS services. Digital Assets and digital identity and authentication are
supported. This holds the promise of greatly simplified supply chain tracking and
tracing. There is a Sawtooth AMI.
5.4.4 Corda R3
Corda is a distributed ledger platform that is the outcome of over two years of
intense research and development by R3 and 80 of the world’s largest financial
institutions. A financial grade ledger, Corda meets the highest standards of the banking
industry, yet it is applicable to any commercial scenario.
5.4.5 PokitDok
PokitDok is changing the way healthcare systems and applications communicate
by allowing customers access to technology. It empowers better healthcare experiences
for everyone. PokitDok's mission is to enable the patient experiences, business models
and security healthcare through fluid data and modern software.
5.4.6 Samsung Nexledger

Nexledger is a blockchain platform built for enterprise, empowering
organizational control of distributed transactions securely and conveniently.

Blockchain:
5.4.7 Quorum
Quorum is an Ethereum-based distributed ledger protocol. It has been developed
for the financial services industry to support transaction and contract privacy. Quorum
leverages the work of the Ethereum developer community and includes a fork of the Go
Ethereum client.
5.4.8 Amazon Blockchain Deloitte
AWS inherent cloud computing capabilities are extended by a growing number of

blockchain technologies. Blockchain provides a low-cost, secure, and rapidly
deployable platform. Organizations can experiment and develop blockchain
applications.

Blockchain:
5.4.9 Luno
Luno provides customers with a platform they can use to store and trade in
Bitcoin. The digital asset and payment system, or cryptocurrency is based on
blockchain technology. The Luno product portfolio comprises the consumer-focused
Bitcoin wallet, the Bitcoin exchange, and the Bitcoin API The Bitcoin exchange is used
by professional traders and institutions. The Bitcoin API is designed to help developers
build applications that handle Bitcoin transactions.
The startup has operations in South Africa, Singapore, Nigeria, Indonesia, and
Malaysia, and is focused on expanding into other markets.
When it started operations in 2013, Luno had a clear vision of creating a trusted
financial platform. Luno had to ensure whatever IT platform it chose was secure. A big
challenge with cryptocurrencies is security. People are always trying to hack into
systems.
AWS is the Luno platform because customers have to be confident their money
is safe. Without security you do not have trust, and without the trust of clients, there is
no business. The Luno platform has seamless uptime, giving customers access to their
accounts 24/7 without disruption. In addition, the company needed a cloud technology
that was simple to use and enabled high levels of automation. Finally, it had to have a
network that allowed for easy future expansion.

Blockchain:
5.4.10 Amazon Web Services

Amazon Web Services (AWS) offers security for blockchain applications. The
pricing model is affordable. Digital Currency Group works with AWS to help startups
develop Bitcoin products and services. The AWS Activate program was integral in
getting business stable.
Multiple Availability Zone (AZ) configurations work across the EU (Ireland) and
Asia Pacific (Singapore) regions. This provides redundancy . Elastic Load Balancing
across Amazon Elastic Compute Cloud (Amazon EC2) instances “means that if an
instance goes down, the balancer will switch the load to other instances and ensure a
seamless service.
Amazon Simple Storage Service (Amazon S3) is used for backups. Financially
sensitive data is stored in Amazon Relational Database Service (Amazon RDS). This is
very useful because it automatically handles a lot of the administrative tasks, like
backup. Tools such as Amazon Virtual Private Cloud (Amazon VPC) and AWS Identity
and Access Management (IAM) have allowed building a secure environment.
The Bitcoin market is growing rapidly—traffic is doubling every few months. An

extensive portfolio and regional data centers permits AWS to support the ability to scale
and grow into new geographies. It supports participation in
The firm’s ability to provide a reliable service is key to its success. Elastic Load
Balancing and multiple AZs permit surviving failures that would have otherwise caused
outages and disrupted services.
Evolving network topology, scaling across the globe, and deploying new services
are never more than a few actions away. This empowers the Amazon client companies
to innovate quickly. The Amazon blockchain partners list is constantly growing as
Amazon builds out its best in class blockchain marketplace.

Blockchain:
5.5 Axoni
Figure 40. Axoni Investors
Source: Axoni

Blockchain:
Axoni and an eleven-firm working group have innovated a second phase of peer-
to-peer blockchain infrastructure for equity swaps processing. The successful
completion of a pilot to manage equity swap transactions and related post-trade
lifecycle events is a milestone. The implementation employs blockchain smart contracts
and uses an optimized data structure in a distributed, peer-to-peer network to ensure
perpetual reconciliation.
A pilot expanded the blockchain network to process equity swap lifecycle events.
End-to-end capability was achieved. Both sides of a swap transaction can be
completed on the same ledger. This allows counterparties to simultaneously view and
share data during the entire lifecycle of the swap. Swaps work from proposal to
termination.
Synchronization of data, increased transparency of calculation logic, and

automation of corporate actions processing reduce operational costs and errors. Real-
time data access for both client and regulatory reporting is supported.

Blockchain:
Figure 41. Axoni Equity Swap Data Functions

Blockchain network
Distributed ledger technology platform fit
Both sides of a swap transaction can be completed on the same ledger
Process equity swap lifecycle events
Allows counterparties to simultaneously view and share data
Automation of corporate actions processing reduce and errors
Automation of corporate actions processing reduce operational costs
Real-time data access for both client and regulatory reporting is supported.
End-to-end capability

Blockchain:
Figure 42. Axoni Equity Swap Blockchain Data Disadvantages

Equity swap data is complex
Complex tracking and tracing
Difficult to manage
Works during the entire lifecycle of the swap
Swaps work from proposal to termination
Synchronization of data difficult
Increased transparency of calculation logic
Distributed ledger technology is further evolving in the context of synchronous

and asynchronous technology evolution. A key milestone alongside partners on this
project has enhanced collaboration for Axoni.
Axoni leverages AxCore, Axoni’s distributed ledger software. The broad

participant group included seven swap market participants from both the sell-side and
buy-side including: BNP Paribas (EPA: BNP), Citi (NYSE:C), Credit Suisse (NYSE:CS),
Canada Pension Plan Investment Board, Goldman Sachs (NYSE: GS), J.P. Morgan
(NYSE:JPM) as well as industry service providers IHS Markit (NASDAQ: INFO) and
Thomson Reuters (NYSE: TRI). ISDA provided equity derivatives documentation
expertise and Capco provided consulting services.

Blockchain:
5.5.1 Comments from Axoni Users as to Reliability of

Equity Swap
Adam Herrmann, Global Head of Prime Finance at Citi, said, “Citi is pleased with
the results of another successful equity swap pilot with Axoni. The contribution from
investment managers to this effort signifies AxCore’s potential to add value end-to-end.
Fewer valuation disputes, less reconciliation and real-time access to data would benefit
all of the industry.”
“The equity swap pilot demonstrates the benefits of collaborating with innovative
tech startups like Axoni and industry peers to embrace new technology solutions that
can contribute to commercial outcomes and operational efficiencies,” said Rana Yared,
Managing Director, Goldman Sachs Principal Strategic Investments.”
Over the course of the multi-month pilot, the project tested automated lifecycle
management and synchronization of single stock and portfolio total return swaps, as
well as critical components regarding the deployment and management of the
distributed ledger network.
The extensive testing conducted included a diverse set of over 70 structured test
cases to assess lifecycle functionality and integration with external systems, including
IHS Markit’s SwapOne platform. Connectivity to SwapOne was leveraged as an option
to manage post-trade calculations, including accruals, resets, and payment schedules.
Key functionality tested included trade creation, position building, amendments,

novation, termination, swap aging, stock splits and dividends, reporting, and private key
management. A 100% success rate across all tests was achieved.

Blockchain:
A diverse set of non-functional tests were conducted to assess the robustness of

Axoni’s blockchain infrastructure. These tests covered privacy, security, network health
monitoring, node management, and network performance, with real-world throughput
volumes successfully processed by the network.
Thomson Reuters pricing and reference data was integrated with the Axoni
solution to provide trusted market data, including equity prices, FX rates, benchmark
rates, and corporate actions directly on the blockchain to enable the smart contracts’
automated workflows. “The seamless integration of market data is critical to the
success of this and similar projects and we have been impressed with the solution that
has resulted. We look forward to helping the project move to the next phase,” said Tim
Baker, Global Head of Innovation at Thomson Reuters.
5.5.2 Axoni Confirmation Templates

As part of the initiative, Axoni, assisted by ISDA, used participating firm’s
confirmation templates to create a standardized equity swap confirmation and trade
template based on a 2011 ISDA Equity Derivatives Definitions framework designed to
facilitate electronic processing of equity derivatives. This standardized data structure
was then implemented on the blockchain network and used in the pilot. “Use of common
industry standards in new technologies is important to ensure maximum efficiencies for
market participants. The 2011 Equity Derivatives Definitions were used in this case as
the basis for standard templates to enable electronic processing of equity derivatives,”
said Katherine Tew Darras, ISDA General Counsel.
The participants collaborated on a governance framework that can be used to

oversee and manage a production network. The governance framework was tailored to
networks with distributed infrastructure in order to create an opportunity for increased
agility, cost efficiencies, and transparency.

Blockchain:
Capco assisted participant firms in building a business case for implementation

of the platform by quantifying potential savings and efficiencies and consulted on
governance considerations.
5.6 BitFury Group

BitFury Group can safely transact over the internet – making the world safer,
simpler and more efficient. Blockchain Summit has examined the role of privilege in
spreading a democratizing technology.
Silicon Valley’s elite have became interested in cryptocurrency. They seek to

build decentralized, blockchain-based systems that have the power to democratize
society.
Hosted by blockchain services company Bitfury and its board member, venture
capitalist Bill Tai, with special support from Credit China Fintech, this year’s summit on
Necker Island features attendees from around the globe such as former Estonian
president Toomas Ilves, renowned Peruvian economist Hernando de Soto, Afghan tech
CEO Roya Mahboob and Greek European Parliament member Eva Kaili.
Bringing together thought leaders to create global change is a project of Sir

Richard Branson. Necker Island is a great setting for free thinking and innovation. It
has power to prompt people to think differently and dream big. The Blockchain Summit.
is an extraordinarily pervasive technology that touches a lot of mankind.
The group in the summit comprised people interested in digital innovation. They
explored multiple blockchain projects able to change the lives of billions of people. The
core ledger technology underlying bitcoin is further evolving in the context of the
summit.

Blockchain:
5.6.1 Richard Branson Digital Currency Summit On

Private Caribbean Island
Virgin Group founder Richard Branson conference on Necker Island, his 74-acre
private island in the British Virgin Islands discussed the future of Bitcoin, Blockchain,
and digital currency. Blockchain is the software infrastructure that supports Bitcoin
transaction.
Valery Vavilov is the CEO of Bitfury, a company that develops servers for
“Blockchain transaction processing.” Blockchain has been embraced and supported by
British billionaire Richard Branson. He invited a select group of entrepreneurs, venture
capitalists and technology advisers to his Caribbean residence for an exclusive talk on
the issue of blockchain.
The Bitfury Group is a leading full service Blockchain technology company. It

develops and delivers the software and the hardware solutions necessary to transfer
highly secured assets on private and public Blockchain.
Figure 43. Bitfury Group Suite Of Offerings

Security
Secure private and public Blockchain transactions
Proprietary hardware and software solutions
Transaction processing
Process private and public Blockchain transactions.
Property rights registry

Blockchain:
The Republic of Georgia has partnered with The Bitfury Group to advance
transparency by developing a system for registering land titles using the Blockchain for
the National Agency of Public Registry. Hernando de Soto,
5.6.2 Bitfury Group Blockchain Analytics

The Blockchain contains an immutable record of every transaction. This
provides the ability through big data mining and advanced data analytics to trace
nefarious uses of digital currency. The Bitfury Group plans to partner with law
enforcement globally, just as it has with the U.S.-based Blockchain Alliance.
The Bitfury Group’s vision is that Blockchain adoption can further accelerate as it
becomes a technology for the mainstream unhindered by unlawful elements and
actively supported by regulators.
5.6.3 Bitfury Group Lightning Network

Lightning is an overlay network to the Bitcoin Blockchain that increases its utility
by enabling instantaneous microtransactions. The Lightning Network is among the
industry’s most important efforts for Blockchain scalability, for which The Bitfury Group
is a leading code development contributor.
The Bitfury Group plans to build on its analytics capability by reporting public
Block statistics and news from around the web that will provide a valuable resource for
beginners and experts alike. The Bitfury Group’s vision is to demystify the Blockchain
through availability of well-organized information.
Platform as a service (PaaS) is provided. The Bitfury Group solution will allow
businesses and governments to digitize any assets and securely transfer them on the
public Blockchain, as well as secure the integrity of critical information in existing
databases using blockchain technology.

Blockchain:
5.7 Binance Exchange

The underlying Binance platform has been deployed on 30+ exchanges. It
supports all devices and multiple languages, offering a seamless user experience.
Technology provides a certified matching engine capable of processing 1,400,000
orders per second, making Binance one of the fastest exchange in the market.
5.8 BlockCypher
BlockCypher
Figure 44. BlockCypher Functional Modules for Blockchain
Source: BlockCypher

Blockchain:
5.8.1 BlockCypher Payment Forwarding

One benefit of cryptocurrency is the ability to allow users to participate in online
commerce without requiring extensive setup. Barriers like registering new accounts are
eliminated. BlockCypher payment forwarding API is an easy way to accept and
consolidate payments securely.
Users can create accounts that are fluid. BlockCypher blockchain provides a
generic way to automatically transfer value from one address to another. It provides a
way to generate payment-specific addresses for which funds will automatically transfer
to a main merchant address. This system works great for automatic merchandise
processing whether physical or virtual.
A method to easily fund a multisignature address from any wallet is achieved by

providing a classic address that will automatically transfer to the multi-signature/pay-to-
script-hash address. BlockCypher does not take a fee on payment forwarding, other
than the required 10,000 satoshi miner fee; payments are free.
As part of services, users can include a fee (either fixed or a percentage) that will
also be automatically transferred to an address in the same transaction.
Fee-based business models are achieved. They are easily auditable via the
blockchain. Payment forwarding is available for paid plans with an active token. Users
can not create a payment forwarding request without one. Mining fees are deducted
from any user-set processing fees first. This can lead to lower processing fees than
expected.

Blockchain:
By default, payments will be debited with a 10,000 satoshis mining fee. The
amount of the fee is configurable, and if a processing fee is set, it will be deducted from
that fee first. For very small payments, if the amount sent is even lower than the mining
and user-set processing fees, or if the processing fees cannot cover the mining fee, the
forward fails.
5.9 BTL Group

BTL Group Interbit is a blockchain development platform designed for business
innovators and developers to quickly and easily incorporate the best of blockchain
capabilities into enterprise applications. Interbit is lightweight. It provides fine-grained
access controls. Data is private between or among specific participants. It enables
scalability by supporting networks of connected blockchains.
The Interbit platform includes a suite of API’s and smart contracts that allow
application developers to quickly incorporate the best of blockchain into enterprise
applications. Applications powered by Interbit can drive enormous efficiencies by
reducing or eliminating the effort and costs of conventional processes by which multiple
parties/systems interact with a common data set. BTL™ is working with global
organizations in the following industry sectors:
Figure 45. BTL Blockchain Platform Industries Served

Financial Services
Energy
Registry
Gaming

Blockchain:
BTL Blockchain solves business problems. Extensive BTL Group client

engagement across sectors globally, has helped identify use cases. The company has
completed several successful Proof of Concept projects.
5.9.1 BTL Blockchain Platform, Interbit For Energy

Trading.
BTL’s blockchain platform, Interbit can be used to innovate in the field of energy
trading. Use of Blockchain technology can streamline back office processes, leading to
reduced risk, better protection against cyber threats, and significant cost savings.
Further engineering and organizational effort is needed to achieve these outcomes.
5.9.2 BTL Group Blockchain Based Cross-Border

Settlement Solution
BTL Group blockchain based cross-border settlement solution offers banks an
opportunity to explore the benefits offered by blockchain technology and smart
contracts. BTL Interbit platform features an application built in collaboration with VISA
Europe. The proof-of-concept trading and settlement application was built to perform
realistic, high volume and high velocity simulations of cross-border transfers.
The pilot proved that Interbit can streamline trading and back office processes.
Systems work across the energy trade lifecycle. Confirmations, actualisations, invoice
generation, settlement, audit, reporting and regulatory compliance are supported.

Blockchain:
Figure 46. BTL Group Blockchain Functions Supported

Confirmations
Actualisations
Invoice generation
Settlement
Audit
Reporting
Regulatory compliance
BTL Group Blockchain allows enterprises to significantly reduce risk, costs and
the threat of cyber-attack. It is useful for increasing trading opportunities. Benefits of
these transformative technologies accrue to business and the financial services
ecosystems. Benefits include increased security for transactions, less cost per
transaction, and lower overall infrastructure costs.
Figure 47. BTL Group Blockchain Transformative Technologies Benefits

Accrue to business and financial services ecosystems
Increased security for transactions
Less cost per transaction
Lower overall infrastructure costs

Blockchain:
5.10 Chain
Chain Core is enterprise-grade blockchain infrastructure that enables
organizations to build better financial services from the ground up. Chain is a San
Francisco based technology company on a mission to enable a smarter and more
connected financial system. It builds the cryptographic ledgers that underpin
breakthrough financial products and services.
Figure 48. Chain Network
Source: Chain

Blockchain:
Using Chain Core, institutions can launch and operate a blockchain network, or
connect to a growing list of other networks that are transforming how assets move
around the world.
5.10.1 Chain and Changetip Participate with The Nasdaq-

Created Blockchain System Linq
Companies like Chain and Changetip are set to participate with the Nasdaq-
created blockchain system Linq and initiate various aspects of trading shares through
the company’s private market.
Nasdaq is one of the largest services offering trading, clearing, exchange

technology in both public and private markets. Linq is the company’s version of asset
trading verified through blockchain protocol and can be useful with keeping shares
within the financial institutions private market.
Nasdaq has issued shares of the company Chain over its blockchain-based
private market, Linq. The issuers were able to use Nasdaq Linq blockchain ledger
technology to successfully complete and record a private securities transaction. This
uses distributed ledger technology.
5.10.2 Chain Partners

Chain is trusted by leading financial services firms: It works with partners in
payments, banking, capital markets, insurance, and more to enable blockchain
infrastructure globally.

Blockchain:
Figure 49. Chain Partners
Source: Chain.
Chain Core Enterprise Edition is built to manage scale. It is built for deploying,
operating, or connecting to production blockchain networks. Key features include native
HSM integration, advanced scalability, availability and storage systems, enhanced
privacy capabilities, and custom smart contract support.
Figure 50. Chain Core Enterprise Edition Functions

Is built to manage scale
Is built for deploying, operating, or connecting to production blockchain networks
Key features:
Native HSM integration
Advanced scalability
Availability
Storage systems
Enhanced privacy capabilities
Custom smart contract support

Blockchain:
5.11 ConsenSys
ConsenSys is a “hub” organization that identifies opportunities for software
component development, cross-venture sharing of components, and promoting cross-
fertilization of ideas. ConsenSys is building blockchain-resident tools.
ConsenSys aim is to enable projects to be organized, governed, funded and

executed on the blockchain. There is fluid development and deployment. ConsenSys
projects are considered “spokes” in different stages. Microsoft and ConsenSys have
formed a partnership to release Ethereum Blockchain-as-a-Service (ETH BaaS). The
initial offering includes developer tools Ether.Camp and BlockApps.
5.12 Deloitte
Deloitte has identified blockchain as poised to disrupt financial services. With
significant interest and investment by insurers, banks, investment managers, and
commercial real estate firms, it sees blockchain as a transformative technology.
Deloitte research shows how blockchain lowers the risk of fraud, increases efficiency,
improves customer loyalty, and makes an organization smarter.
5.13 Digital Asset Holdings

Digital Asset Holdings, a digital technology company run by former JPMorgan
executive Blythe Masters. Blockchain is big in everything related to settlement. It is
early days, the technology looks very good in the opinion of JPMorgan.
Blockchain works as a public ledger, storing information on transactions without

the intermediary of a central banking authority. While bitcoin and cryptography like it
were at first limited to a fairly niche audience, JPMorgan has sought to lead an industry
shift toward this kind of information-sharing.

Blockchain:
5.14 Ethereum
Figure 51. Ethereum Blockchain Platform
Source: Ethereum.
Ethereum is a decentralized platform that runs smart contracts: applications that

run exactly as programmed without any possibility of downtime, censorship, fraud or
third-party interference. These apps run on a custom built blockchain, an enormously
powerful shared global infrastructure that can move value around and represent the
ownership of property.
This enables developers to create markets, store registries of debts or promises,

move funds in accordance with instructions given long in the past (like a will or a futures
contract) and many other things that have not been invented yet, all without a middle
man or counterparty risk.

Blockchain:
Ethereum is a distributed public blockchain network. Bitcoin and Ethereum differ

substantially in purpose and capability. Bitcoin offers one particular application of
blockchain technology, a peer to peer electronic cash system. Ethereum blockchain
focuses on running the programming code of any decentralized application.
In the Ethereum blockchain, instead of mining for bitcoin, miners work to earn
Ether, a type of crypto token that fuels the network. Beyond a tradeable cryptocurrency,
Ether is also used by application developers to pay for transaction fees and services on
the Ethereum network.
Ethereum is an open-source, public, blockchain-based distributed computing

platform featuring smart contract (scripting) functionality. It provides a decentralized
Turing-complete virtual machine, the Ethereum Virtual Machine (EVM), which can
execute scripts using an international network of public nodes.
The Ethereum foundation, which is behind Ethereum, owns part of the

transactional currency called Ether which is worth real money. This virtual currency has
a limited supply and before they launched Ethereum, they took some to fund the
foundation. As a non profit they are very open about their finances, in their recent
blogpost they disclose their current assets and holdings as of Q1 2016:
The Foundation’s current assets include 2,250,000 ETH, 500 BTC and $100,000
in fiat currencies. (Note: 1ETH ~ 6.23USD)
The Foundation’s monthly expenditures have been reduced by over half from
2015 peak of over 400,000 EUR per month, and stand at a monthly sum of 175,000
EUR (~188,000 USD).

Blockchain:
The inventor of Ethereum, Vitalik Buterin, publicly shares in which projects he

has a stake in and the positions he holds:
5.14.1 Ethereum / Advanced Micro Devices’ (AMD)

Advanced Micro Devices’ (AMD) share price jumped after it beat revenue
estimates thanks to cryptocurrency miners snapping up the firm’s graphics cards.
Shares rose 11% after the chip company announced earnings on July 25, but the firm’s
stock is up 152% over the last 12 months, making it the fourth best performer on the
S&P 500,
The firm saw “elevated demand” from cryptocurrency miners during the quarter.
This need for graphics cards helped AMD raise revenue.
Crypto miners mining ethereum have been in the crypto equivalent of a gold rush
since early 2017. Ethereum is the second largest cryptocurrency by market valuation
behind bitcoin. They are racing to take advantage of ethereum’s exploding price by
adding more processing power to their mines.
Some of the miners are resorting to leasing Boeing 747s to fly the increasingly
scarce graphics processors from AMD and Nvidia directly to their ethereum mines. In
this manner the graphics cards can be plugged in to the network as quickly as possible.
5.14.2 Ethereum Blockchain CryptoKitties

CryptoKitties is played on the Ethereum blockchain. There is no central entity
managing the game. This means users literally own their kittens. CryptoKitties is
decentralized and will live forever on the Ethereum blockchain.
The game is run via a set of 5 Ethereum smart contracts written by AxiomZen.
Users interact with it via their own Ethereum address.

Blockchain:
The easiest way to do that is by using the Chrome extension MetaMask which
gives the ability to send and receive Ethereum directly in a browser. Users navigate to
the CryptoKitties site, an interface to interact with their smart contracts. Game players
can buy sell and breed kittens. 15% of Ethereum network traffic is dedicated to the
game, making it the most popular smart contract on the network. Number two with 8%
of network transactions is EtherDelta, the decentralized token exchange.
Traffic is making it hard to play CryptoKitties. A lot of transactions (like buying

and selling cats) are taking longer than usual to process and needing multiple attempts.
5.15 EzyRemit
EzyRemit is an innovative FinTech and Blockchain platform and solutions
company which is focused on changing the remittance market. Working at the
intersection of technology, payments and banking industry from many years,
redundancies in the system are being changed.
A glimpse of the solution came with the appearance of Bitcoin and later
Ethereum. These offer blockchain technologies able work in a manner that builds
solutions to changing the remittance market. By pairing experience from the Payment,
business process management & software application development, founders use
blockchain technology to empower people around the world with free access to a global
financial system & faster transaction.

Blockchain:
Figure 52. EzyRemit, EzyHedge, and EzyRemit B@B Solutions
Source: EzyRemit
EzyRemit is a marketplace of currency exchange where the platform leverage

multiple digital exchanges platform for Fiat to Digital and Digital to Fiat conversion. The
platform provides hooks to latch onto the existing banking and FX conversion system
and provide faster and economical way of cross border remittance
EzyHedge works on the principle of commodity trading. The platform is built to

help investors understand the digital currency markets, define rules of trading and
automate buy and sell of digital currencies for fiat currencies. The built in learning
algorithm look at the historical trade data across exchanges and help in defining trade
strategies which can be automatically executed
EzyRemit-B2B solution is built based on the needs of globally operational

enterprise where cross utilization of resources are common across entities though,
settlement is an accounting nightmare.

Blockchain:
The platform is based on the private blockchain, which helps in instant Intra-
company settlements with the help of smart contracts and account reconciliation. It
manages reconciliation, settlement, blockchain, smart contract, and enterprise
payments systems.
5.16 Fidelity Investments

Fidelity Investments has begun a Bitcoin mining operation that has started
turning a profit. Fidelity believes the blockchain technology could fundamentally change
market structures and perhaps even the architecture of the Internet itself.
5.17 Global Arena Holding

Global Arena Holding Inc. (GAHC) is a holding and technology development
company. Global Arena Holding subsidiary Global Election Services provides
comprehensive technology-enabled election services. It has made an investment into a
blockchain technology company. Global Arena Holdings acquires companies and
patents that use blockchain technology.
5.18 Goldman Sachs

Goldman Sachs is setting up a trading operation for bitcoin and other
cryptocurrencies. Goldman Sachs is uncertain about the value of cryptocurrencies.
Opening up Goldman's trading platform to cryptocurrencies could be seen as big-bank
validation for bitcoin.
Large institutional Goldman clients could be prompted to dabble in

cryptocurrencies for the first time, hastening capital flow into bitcoin and Ethereum.
Bitcoin and Ethereum have seen flat price action in the past two months, after a 2x and
10x rise year to date.

Blockchain:
Goldman Sachs (NYSE: GS) made huge waves this week when news broke that
it was considering setting up a bitcoin trading operation, the first of its kind among the
big banks. Goldman, arguably the most highly venerated Wall Street firm, would lend
massive credibility to cryptocurrencies and possibly induce institutional investors to
trade crypto for the first time.
Goldman has published a lengthy blockchain 101 article on its website. Goldman
is considering a new client-facing brokerage built around cryptocurrencies. It embraces
the new technology redefining transaction capability. Blockchain changes the way
people buy and sell things, interact with government, and verify the authenticity of
everything.
It combines the openness of the internet with the security of cryptography.

Goldman is interested in giving everyone a faster, safer way to verify key information
and establish trust. This move indicates Goldman's desire to be seen as a thought
leader in the new technology of trust.
Goldman’s newly minted open-minded attitude about bitcoin trading could open
the door to mass capital flows into the crypto markets. This article will offer some brief
thoughts on what a Goldman entry into the market might imply.
Bitcoin has a $70 billion market capitalization (half of the total crypto market cap
of ~$150 billion). Ethereum, the second-largest cryptocurrency has a broader set of use
cases (via “smart contracts”). It has a market capitalization of $27 billion.
Institutional funds have been wary of trading highly speculative cryptocurrencies,

due to security reasons. and because their prospectuses and investment mandates
have not expanded to encompass crypto trades.

Blockchain:
If Goldman’s rubber stamp and perceived security capabilities induce some of

these investors to buy their first bitcoins more will follow. Hedge funds trade everything
from everyday bonds to livestock and orange juice futures.
Goldman Sachs has looked to adopt technology that provides possibilities for
reduced costs and faster transactions. Goldman Sachs believes banking and
payments, wire fees and trade settlements can utilize a distributed shared ledger. A
distributed shared ledger can make interactions quicker, less-expensive and safer.
This cryptography technology has become increasingly attractive to the financial

services sector for its tamper-proof ledger. When financial firms do business with each
other, the hard work of synchronizing their internal ledgers can take several days, which
ties up capital and increases risk.
Blockchain allows different banks to do business more easily across borders. By

shifting reliance away from central banks, systems like bitcoin could save the financial
services industry $50 billion a year by 2024.
5.19 IBM Blockchain

IBM holds a leadership place in the blockchain space, this stream is expected to
provide additional revenues and contribute to IBM. The IBM blockchain platform is an
integrated platform designed to accelerate the creation of a "built for business" global
blockchain network across industries and use cases.
Additional banks have been joining the IBM ongoing initiative, started in 2016.
UBS is set to build a global blockchain-based trade finance platform. This appears
separate from a project to build a trade-finance platform for a consortium of seven major
European banks. Both projects aim to lower costs and slash inefficiency in trade
transactions, an application that seems well suited for blockchain.

Blockchain:
This is not a very large part of the 15,000 IBM insurance, financial services, and
banking customer base, there is a long way to go before blockchain becomes a core
part of the IBM business.
5.19.1 IBM Batavia

Bank of Montreal, CaixaBank, Commerzbank, and Erste Group are joining IBM
and UBS, collaborating to bring the blockchain-based trade finance platform Batavia
online. The platform sees to simplify a trade transaction process. The current trade
transaction process is inefficient:
IBM premier customers JP Morgan, Aetna, Travelers. Chase Manhattan are not
necessarily turning to the IBM blockchain. IBM has 400 clients designing and building
blockchain-based solutions.
Traditionally, trading partners, including buyers, sellers, their banks, transporters,

inspectors and regulators have relied on large volumes of paper based documentation
to securely conduct trade transactions. This process which took weeks, incurring costs,
making data vulnerable to errors due to repeated manual reprocessing and tying up
capital is quickly becoming digital.
Delays and lack of transparency in trade can make it difficult for companies to
access financing, limiting their ability to trade across borders and grow revenues.
IBM Batavia allows for the elimination of this mountain of paperwork. Blockchain,
is essentially a distributed ledger of transactions, giving each party a full view of the
process.
User input and sensor data update the status of the transaction as the shipment
makes its way to its destination. Batavia releases payments iteratively at the time each
step in the payment process is completed.

Blockchain:
IBM believes the promise of the platform is to permit participants in a transaction

to access a shared version of the transaction. The digital process proceeds with trust.
Blockchain is about building larger and more distributed networks, growing revenue.
5.19.2 IBM Internet of Things

The Internet of Things enables devices to send data to private blockchain ledgers
for inclusion in shared transactions with tamper-resistant records. The distributed
replication of IBM Blockchain enables business partners to access and supply IoT data
without the need for central control and management. All business partners can verify
each transaction, preventing disputes and ensuring each partner is held accountable for
their individual roles in the overall transaction.
5.19.3 IBM Supply Chain Tracking

IBM and AOS, a Colombian company specializing in providing business
solutions, are collaborating to create a solution to enhance efficiency in the logistics and
transport industry throughout the country, built on IBM Blockchain and Watson IoT.
Traditionally, supply chain transactions are completed manually, creating delays and a
higher risk for recording error.
Manual process can cause differences between what was recorded and what
was loaded. By digitizing this process using blockchain and Watson IoT, the relevant
information is captured directly from the sensors placed on the trucks, and entered onto
the blockchain, creating a single, shared repository that all authorized participants can
access and which can only be altered with consensus from all parties.
Once a truck leaves the distribution point, an automatic message is sent to the
customer, informing them about the load, weight and estimated time of arrival. If part of
the delivery is returned, the invoicing can be updated automatically. The digital reco
depends on the actual load delivered.

Blockchain:
Through sensors located on trucks, an information repository is generated using

IoT and blockchain. Sensors track exchanges, stops and transactions made by each
truck and its respective load. The process is tracked end to end from the distribution
point to the final customer. This heightened level of transparency helps increase
accountability between shippers and their customers, promoting the flow of business.
The new solution integrates Watson IoT to monitor what is happening with the
trucks. The solution captures the input and output weight to define available capacity as
well as which silo and which person will carry the load; and that data is also correlated
to external information, such as weather, humidity, temperature and driver’s data, to
estimate delivery time to customers.
5.19.4 IBM Blockchain in the Supply Chain

IBM and Maersk have built an industry-wide cross-border supply chain solution
on blockchain. This global trade digitization solution uses blockchain to manage
transactions among network of shippers, freight forwarders, ocean carriers, ports and
customs authorities.
The solution enables the real-time exchange of original supply chain events and
documents through a digital infrastructure, or data pipeline, that connects the
participants in a supply chain ecosystem. This promotes sustainable transport by
integrating shipping processes and partners, and establishing evaluation frameworks
through increased transparency and trusted access.
The blockchain solution based on the Hyperledger Fabric and built by IBM and
Maersk, will be made available to the shipping and logistics industry. The solution will
help manage and track the paper trail of tens of millions of shipping containers across
the world by digitizing the supply chain process from end-to-end to enhance
transparency and the highly secure sharing of information among trading partners.

Blockchain:
When adopted at scale, the solution has the potential to save the industry billions of
dollars.
5.19.5 Use Cases for IBM IoT and Blockchain

IoT and blockchain scenarios involve agreements among a group of partners
which have a need to share information. Blockchain is used to track or trade
something of value where multiple parties have a vested interest. Examples from the
Internet of Things include supply chain tracking.
Figure 53. Use Cases for IoT and Blockchain
Source: IBM

Blockchain:
5.19.6 IBM Watson IoT Blockchain

The IBM Watson IoT™ Platform has a built-in capability that lets users add
selected IoT data to a private blockchain. Protected data can be shared among
business partners involved with the transaction.
IBM Blockchain provides private blockchain infrastructure. It works for partners

and users who are in different companies, distributed peers. IBM Blockchain replicates
device data and validates the transaction through secure contracts. The Internet of
Things can translate existing device data.
IBM Blockchain works from one or more device types. IBM Blockchain translates
data from one format into any format needed by the blockchain contract APIs. The
blockchain contract does not need to know the specifics of device data.
IoT filters device events and sends required data to the contract. IBM IoT Lab
Services offers a set of customized service engagements, enabling experimentation and
innovation with the IBM Watson IoT Platform and blockchain technologies.
5.19.7 IBM Revenue

IBM is embedding cloud and cognitive capabilities across the business. Strategic
imperatives are a signpost of the progress being made in helping enterprise clients
extract value from data and become digital businesses. In the third quarter of 2017, the
company continued to deliver solid revenue growth in its strategic imperatives - cloud,
analytics, mobile, security and social.
These generated $8.8 billion of revenue and grew 11 percent as reported and 10
percent adjusted for currency. There was double-digit growth in cloud and security.
Strategic imperatives growth in the third quarter largely represented organic growth as

Blockchain:
the acquisitive content has leveled on a year-to-year basis. Total Cloud revenue of $4.1
billion increased 20 percent as reported and adjusted for currency, with as-a-Service
revenue up 25 percent (24 percent adjusted for currency). The annual exit run rate for
as-a-Service revenue increased to $9.4 billion in the third quarter of 2017 compared to
$7.5 billion in the third quarter of 2016.
Analytics revenue of $5.0 billion increased 5 percent both as reported and

adjusted for currency. Mobile revenue increased 7 percent as reported and adjusted for
currency and Security revenue increased 51 percent (49 percent adjusted for currency),
driven by security software solutions and strong demand for the pervasive encryption
capabilities in the new z14 mainframe.
IBM Revenue by Segment

Nine Months Ended September 30,
2016 3Qs 2017 3Qs
Global Technology Services & Cloud 26,530.0 25,576.0
Global Business Services 12,888.0 12,467.0
Systems and Technology 5,778.0 5,434.0
Global Financing 2,585.0 2,171.0
Other
Cognitive Solutions 14,818.0 15,022.0
Total 62,599.0 60,670.0
Source: IBM company reports

Blockchain:

Quarter Ended September 30,
2016Q3 2017Q3
Global Financing 763.0 698.0
Other 66.0 71.0
Total 20,678.0 20,553.0

Quarter Ended June 30,
2016Q2 2017Q2
Global Financing 1,412.0 1,068.0
Total 23,237.0 21,962.0

Blockchain:

Quarter Ended March 31,
2016Q1 2017Q1
Global Financing 410.0 405.0
Other 66.0 71.0
Total 18,684.0 18,155.0
From a segment perspective, in the third quarter, Cognitive Solutions revenue

increased 3.9 percent as reported and 3 percent adjusted for currency with growth in
Solutions Software and Transaction Processing Software as reported and adjusted for
currency.
Performance in the third quarter included growth in annuity revenue, including

as-a-Service solutions, as well as growth in software transactional performance. Global
Business Services (GBS) revenue decreased 2.3 percent as reported and 2 percent
adjusted for currency, primarily driven by declines in both Application Management and
Global Process Services, partially offset by growth in Consulting. The GBS business
continued to shift resources and move into the high-value strategic areas of digital,
cloud and analytics.

Blockchain:
GBS strategic imperatives revenue increased 10 percent (11 percent adjusted for
currency) year to year. Technology Services & Cloud Platforms revenue decreased 3.3
percent as reported and 4 percent adjusted for currency, primarily driven by a decline in
Infrastructure Services.
Technology Services & Cloud Platforms, strategic imperatives revenue was up

12 percent as reported and adjusted for currency year to year, driven by hybrid cloud
services, security and mobile. Systems revenue increased 10.4 percent as reported and
10 percent adjusted for currency driven by strong contribution from the new z14
mainframe and continued growth in Storage Systems.
From a geographic perspective, Americas revenue decreased 2.0 percent (2

percent adjusted for currency) year to year, with the U.S. down 2.6 percent and Latin
America down 1.5 percent (2 percent adjusted for currency). Canada was up 2.1
percent as reported, but down 2 percent adjusted for currency. Europe/Middle
East/Africa (EMEA) revenue increased 2.4 percent as reported, but decreased 1
percent adjusted for currency, with growth in France, Germany and Spain and a decline
in the UK. Asia Pacific revenue decreased 1.2 percent as reported, but increased 2
percent adjusted for currency. Within Asia Pacific, Japan decreased 4.0 percent as
reported, but increased 4 percent adjusted for currency, and China increased 3.9
percent (4 percent adjusted for currency).
5.19.8 IBM Datacenter Blockchain

Blockchain is growing in the datacenter at IBM. Demand for the technology, best
known for supporting bitcoin, is growing so much that it will be one of the largest users
of capacity next year at about 60 data centers that International Business Machines
Corp. rents out to other companies around the globe.

Blockchain:
IBM was one of the first big companies to see blockchain’s promise, contributing
code to an open-source effort and encouraging startups to try the technology on its
cloud for free.
IBM is going the leader in blockchain. Multiple companies involved in a supply

chain can use the same blockchain. It is spurring IBM to revise the way it compensates
sales associates. In the past, sales reps got paid when their clients bought IBM
technologies directly. Now they receive a commission when clients encourage other
companies to join them on a blockchain network and use Big Blue’s systems and
services.
The blockchain enables companies doing business with each other to record
transactions securely. Its strength lies in its trustworthiness: It is difficult to reverse or
change what’s been recorded. The blockchain can hold many more documents and
data than traditional database storage, allowing for more nuanced insights and analysis.
It can hold embedded contracts, a lease for a car, whose virtual key could be
transferred to a bank in the event of a default.
Blockchain infrastructure is bulky, there will be a large pool of revenue

associated with sales of equipment, software, and related services for blockchain
installations. Cloud use is fundamental. In addition, companies rely on their own
databases for storage.
In traditional database systems, there is only one copy of the data for all parties
to reference, but blockchain’s distributed nature means all of the peers now hold a copy
of the data. ‘That expands the data storage requirements on businesses, in industries
with typically high transaction rates. IBM is the leader in the financial industry.

Blockchain:
Big Blue, meanwhile, has been one of key companies behind the Hyperledger
consortium, a nonprofit open-source project to create efficient standards for commercial
use of blockchain technology. IBM offers companies a free trial of blockchain in its
cloud.
Six in 10 large corporations are considering using blockchain, according to a

Juniper Research survey of 400 executives, managers, and tech staff. The technology
is tested or used by companies including Walmart and Visa. Blocchain streamlines the
supply chain, speeds up payments, and stores records.
5.20 JP Morgan Chase

JPMorgan Chase launched a payment processing network that uses blockchain
technology, in partnership with Royal Bank of Canada and Australia and New Zealand
Banking Group. Blockchain shared ledger of transactions is maintained by a network of
computers on the internet. It is the technology that underpins cryptocurrency.
The JPMorgan Interbank Information Network allows payments to reach

beneficiaries faster with fewer steps and better security. JPMorgan Chief Jamie Dimon
and other banking executives have launched the technology.
JPMorgan Chase American multinational banking and financial services holding

company headquartered in New York City is the largest bank in the United States. The
world’s sixth largest bank by total assets, has total assets of US$2.6 trillion. It is a major
provider of financial services.
JPMorgan and many of its competitors have invested millions of dollars in the
blockchain technology in hopes that it can be adapted to simplify and lower the costs of
processes such as securities settlement, loan trading, and international money
transfers.

Blockchain:
5.20.1 JPMorgan Chase Quorum Blockchain Technology
Figure 54. JPMorgan Chase Blockchain Technology Aims

Adapted to simplify the costs of processes
Adapted to lower the costs of processes
Address securities settlement
Address loan trading
Address international money transfers
Blockchain capabilities allow JPMorgan Chase to rethink how critical information

can be sourced and exchanged between global banks. The network is powered by
Quorum, a blockchain technology developed by JPMorgan. Other banks are expected
to join in the coming months.
J.P. Morgan has poured resources into blockchain research and partnered with
Digital Asset Holdings, a startup founded by Blythe Masters, a former J.P. Morgan
trading executive. Bitcoin, only one aspect of blockchain, has garnered controversy
from the banks, particularly J.P. Morgan.

Blockchain:
5.21 Microsoft Blockchain

Microsoft has noticed that Blockchain is increasingly prevalent as a topic of
interest in conversations with business leaders. Microsoft R3 on Azure is a preferred
platform for implementing blockchain. Microsoft has been leveraging its enterprise
platforms by strengthening Blockchain partnerships.
A growing number of Microsoft customers and partners are experimenting with

the Blockchain technology as a way to accelerate security in transaction settlements.
The adoption of enterprise blockchain depends on Microsoft R3 on Azure because the
technology is a secure and transparent way to digitally track ownership of assets.
5.21.1 Microsoft Strengthening Blockchain Partnerships

Blockchain is being adopted by a growing number of customers. Customers are
partnering with Microsoft to build a new class of distributed applications on Azure.
Financial institutions and fintechs are moving their blockchain projects from innovation
labs to lines of business.
The customers require a seamless integration between their preferred ledger

stack and infrastructure. A robust set of platform components and tooling is needed to
develop, manage, and optimize blockchain applications. To meet these growing needs,
Microsoft is expanding its strategic partnership with R3 to more deeply integrate R3’s
distributed ledger platform, Corda and R3Net, with Azure.
Microsoft partnership with R3 accelerates the adoption of distributed ledger

technologies. R3 member banks have made Azure the preferred cloud services
provider. R3 customers across banking and capital markets have used Corda
templates as the foundation for distributed applications.

Blockchain:
Microsoft has extended its partnership to more deeply integrate Corda’s

capabilities with Azure services. This enables developers to design and build apps on
Corda, known as CorDapps, using enterprise tools they’re already familiar with such as
Azure Active Directory for identity management.
Key Vault is used for key management and Azure SQL Database is used for off-
chain storage and analytics. Azure provides critical enterprise capabilities for running
blockchain infrastructure securely and at scale. Azure Express Route provides secure,
high performance hybrid topologies.
Microsoft Azure Management and Security capabilities are used for turnkey
operations management.
R3 has tailored its platform to meet the specific needs of financial institutions. It
has a deep bench of industry experts focused on building a product uniquely suited for
banking scenarios. Partnering with R3, Microsoft aims to develop a rich portfolio of
offerings that can help customers accelerate blockchain projects.
5.21.2 Microsoft Revenue

Intelligent Cloud is the Microsoft growth engine. It has implemented a large
number of mega data centers to support global growth of this segment. Microsoft
Intelligent Cloud segment consists of public, private, and hybrid server products and
cloud services that can power modern business. This segment primarily comprises:
Server products and cloud services, including Microsoft SQL Server, Windows
Server, Visual Studio, System Center, and related CALs, and Azure. Enterprise
Services, include Premier Support Services and Microsoft Consulting Services.
Microsoft in the 3 months ended September 30, total commercial cloud revenue, which
primarily comprises Office 365 commercial, Azure, Dynamics 365, and other cloud

Blockchain:
properties, was $5.0 billion and $3.2 billion for the three months ended September 30,
2017 and 2016. These amounts are primarily included in Office products and cloud
services and server products and cloud services.
Azure is a scalable cloud platform with computing, networking, storage,

database, and management, along with advanced services such as analytics, and
comprehensive solutions such as Enterprise Mobility Suite. Azure includes a flexible
platform that helps developers build, deploy, and manage enterprise, mobile, web, and
IoT applications, for any platform or device without having to worry about the underlying
infrastructure. Azure enables customers to devote more resources to development and
use of applications that benefit their organizations, rather than managing on-premises
hardware and software.
In the fiscal year end, Microsoft Revenue increased $4.6 billion or 5%, driven by
growth in productivity and business processes and intelligent cloud, offset in part by
lower revenue from more personal computing. productivity and business processes
revenue increased, driven by the acquisition of LinkedIn and higher revenue from
Microsoft Office.
Intelligent Cloud revenue increased, primarily due to higher revenue from server
products and cloud services. More personal computing revenue decreased, mainly due
to lower revenue from devices, offset in part by higher revenue from Windows and
Search advertising. Revenue included an unfavorable foreign currency impact of 2%.

Blockchain:
Microsoft Revenue by Segment

Fiscal Year Ended June 30,
2015 2016 2017
Productivity and Business Processes 26,430.0 27,487.0 30,444.0
Intelligent Cloud 23,715.0 25,042.0 27,440.0
More Personal Computing 43,435.0 40,034.0 38,773.0
Corporate and Other 0.0 -6,643.0 -6,707.0
Total 93,580.0 85,920.0 89,950.0
Source: Microsoft company reports

Quarter Ended September 30,
2016Q3 2017Q3
Productivity and Business Processes 6,436.0 8,238.0
Intelligent Cloud 6,097.0 6,922.0
More Personal Computing 9,395.0 9,378.0
Total 21,928.0 24,538.0

Quarter Ended March 31,
2016Q1 2017Q1
Corporate and Other -1,545.0 -1,467.0
Productivity and Business Processes 6,522.0 7,958.0
Intelligent Cloud 6,096.0 6,763.0
More Personal Computing 9,458.0 8,836.0
Total 20,531.0 22,090.0

Blockchain:
5.22 OnChain Public Platform Project In

Conjunction with NEO
Blockchain startup OnChain will be launching its public platform project in
conjunction with a NEO community sharing session on Monday, November 27th, 2017,
in New York City. OnChain's blockchain project launch + neo ecosystem sharing are
blockchain events.
Onchain has project, a ‘trust network’; a blockchain/distributed ledger network

combining a distributed identity system, distributed data exchange, distributed data
collaboration, distributed procedure protocols, distributed communities, distributed
attestation, and various industry-specific modules for distributed services. Together this
builds the infrastructure for a peer-to-peer trust network that is cross-chain, cross-
system, cross-industry, cross-application, and cross-device.
Figure 55. Onchain Blockchain Project Modules

A ‘trust network’
Blockchain/distributed ledger network
Distributed identity system
Distributed data exchange
Distributed data collaboration
Distributed procedure protocols
Distributed communities
Distributed attestation
Various industry-specific modules for distributed services

Blockchain:
Figure 56. Distributed Ledger Network Modules Build Infrastructure

Together distributed modules build infrastructure
Infrastructure forms peer-to-peer trust network
Cross-chain
Cross-system
Cross-industry
Cross-application
Cross-device
5.23 NEO Open Source Blockchain

NEO is an open source blockchain. Founded in 2014, NEO’s mission has been
to reinvent the way commerce is done. NEO believes technology drives progress.
NEO shifts the traditional economy into the era of the smart economy.
The aim is to create economic decentralized systems that create a more

trustworthy society.
5.24 Provenance
Provenance supply chain blockchain tracking goal is to make it possible for every
physical product to have a digital history, allowing tracing and verification of origins,
attributes and ownership.

Blockchain:
Transparency tools assemble image, identity and location information to profile

product and story pages. The traceability system confirms identities and product
attributes in tracking items through supply chains.
5.25 R3
R3 (R3CEV LLC) is a distributed database technology company. It leads a
consortium of more than 70 of the world's biggest financial institutions in research and
development of blockchain database usage in the financial system. It is headquartered
in New York City. R3 and 22 of the world's biggest banks have together developed an
international payments system that would allow existing central bank currencies and
any new digital ones to be transacted via the blockchain.
Microsoft and Intel are using R3 blockchain. Start-up R3 has 60 companies,

including Microsoft and Intel, actively using its blockchain platform. The financial
technology (fintech) company has dozens of firms engaging with its open source
distributed database network Corda. Blockchain, one of the fastest growing blockchain
market participants.
Ripple supplies blockchain technology to banks. It won an important court ruling

in a fight over who can keep millions of dollars worth of the digital currency known as
XRP. The ruling comes in a dispute between Ripple and R3. R3 sued Ripple in July,
claiming its rival had reneged on an agreement in which R3 could exercise options until
2019 to purchase up to 5 billion XRPs at a price of $0.0085 per unit.
Ripple then countersued, claiming it had terminated the agreement after R3

failed to fulfill a number of promises, and that R3 sought to exercise the options in a
spirt of opportunism after the price of XRP had soared.

Blockchain:
Currently, one unit of XRP is trading at $0.25 per unit, which is nearly a 30-fold
increase on the option price in the contract.
5.25.1 Blockchain Startup R3 CEV Attracts $107M From

BofA, HSBC, Intel and Others
R3 has $107 million financing. R3 is the blockchain consortium that includes the
large financial services firms and technology companies. R3 CEV aims to raise $150
million with the third tranche of fundraising round.
Leading investors include SBI Group, Bank of America Merrill Lynch, HSBC, Intel
and Temasek. R3 represents the largest consortium of global financial institutions
working on developing commercial applications for the distributed ledger technology,
blockchain technology.
R3 has additional commitments from ING, Banco Bradesco, Itaü Unibanco,

Natixis, Barclays, UBS and Wells Fargo. R3 opened the company’s planned $200
million financing exclusively to members of the consortium initially. R3 is one standard-
bearer for the mainstreaming of blockchain technology.
R3 CEV, an innovation company that unites leading financial companies with the
aim of research and development of blockchain usage in the financial system. More
than 40 institutions from more than 15 countries participated in the first two tranches of
the fundraising round.
R3 $150 million from members and strategic investors included granting a 60

percent stake to the investors. Pilot projects and early production phase products are in
the market.

Blockchain:
R3 consortium was launched in September 2015 with the backing of nine of the
world’s largest investment banks. The number of participants soon reached about 80
financial institutions that cooperate to leverage the blockchain technology. R3 is a
couple of years away until massively impactful products come online. Several large
banks including JPMorgan Chase & Co, Goldman Sachs Group Inc, Banco Santander
SA, and Morgan Stanley departed from R3 just before the completion of the first two
tranches.
5.25.2 JPMorgan Chase & Co Quit the R3 Initiative

JPMorgan Chase & Co quit the R3 initiative at the end of April 2017. Earlier in
2017, the bank partnered with Microsoft, Intel, UBS, and other companies to form The
Enterprise Ethereum Alliance to develop standards and technology for easier use of the
blockchain code Ethereum. The bank is a member of the Hyperledger Project led by
the Linux Foundation.
Ethereum was a platform R3 looked at and decided was not fit for purpose. R3,
decided blockchain for banking would be easier if there was solution fit for purpose, if
something out there was close that could be adapted to needs. R3 is going to build
something in parallel, a platform fit for purpose for financial services. Ethereum was not
deemed by R3’s experts and members to be appropriate for the financial services
industry.
Earlier, Goldman Sachs Group Inc, Banco Santander SA as well as Morgan

Stanley and National Australia Bank decided not to renew their R3 memberships.
However, the fact that Goldman and Santander abandoned R3 doesn’t mean the loss of
their interest in the blockchain. They invest in other blockchain startups, including
Digital Asset Holdings LLC.

Blockchain:
5.25.3 R3 Corda
R3 Corda is a distributed ledger platform. Research and development was
conducted by R3 and 80 of the world’s largest financial institutions. R3 Corda is a
financial grade ledger. Corda meets the highest standards of the banking industry. It is
applicable to any commercial endeavor.
With Corda, participants can record, manage and execute financial agreements
in synchrony. Peer to peer exchanges are created, creating a world of frictionless
commerce. R3 is an enterprise software firm working with over 100 banks, financial
institutions, regulators, trade associations, professional services firms and technology
companies to develop Corda, distributed ledger platform designed specifically for
financial services.
Launched in September 2015, R3 was born out of a common frustration amongst

banks and financial institutions with multiple generations of disparate legacy financial
technology platforms. These platforms are expensive to keep in operation, and the
users struggle to achieve interoperation, causing inefficiencies, risk, and spiraling costs.
The power of distributed ledger technology lies in its network effect. R3 has
worked with the industry to build a large collaborative group in financial markets. R3
has grown from a staff of eight finance and technology veterans with nine bank
members to a global team of 125 professionals serving 100 global financial institutions
and regulators on six continents. The work is supported by 2,000 technology, financial,
and legal experts drawn from the global member base.
R3 Corda participants can transact without the need for central authorities,
creating a world of frictionless commerce.

Blockchain:
5.26 Ripple
Ripple is an enterprise blockchain solution for global payments. Ripple has
licensed its blockchain technology to over 100 banks. It offers digital currency. Ripple
earns money on licensing the open-source technology and helping its clients integrate
its solutions. The startup does rely on a number of third parties to manage its
distributed financial network. These partners have a vested interest in XRP being a
useful investment.
Ripple is the startup behind the fourth largest digital currency. Bernanke spoke
at a Ripple event. He said that blockchain has 'obvious' benefits in improving the digital
management of financial transactions. Bernanke mentioned Ripple by name, saying
that he's read about the company's work and thinks that any effort in payments to
reduce cost, improve accuracy, speed and reliability and "bring the global economy
closer together" is a good thing.
Bernanke said, "bitcoin is meant to be an attempt to replace fiat currencies and

evade government regulation and government intervention." He indicated that this effort
is bound to fail. That attempt to evade the law and fund illegal activities, Bernanke
contends, won't succeed because governments won't allow it. "When bitcoin becomes a
threat they'll take whatever action" deemed necessary to quash it,” he said.
“Unlike bitcoin, which works against regulators,” he continued, “blockchain

businesses that collaborate with governments will likely see more momentum in terms
of innovating on the payments system. Central banks around the world (including in
Singapore, the U.K. and Europe) have taken more of an interest in blockchain
technology recently, trying to figure out how it might create efficiencies within their
systems.”

Blockchain:
Case in point: earlier this month, senior vice president at the Federal Reserve
Bank of Boston Jim Cunha said blockchain and other fintech startups would be pushing
incumbent financial institutions and middlemen to be more innovative in their approach.
Central banks are supportive of these new blockchain technologies because they
improve the payment system ..
5.26.1 Ripple XRP Digital Asset for Payments

XRP is the digital asset for payments. It is the fastest and most scalable digital
asset, enabling real-time global payments anywhere in the world.
xCurrent is Ripple’s enterprise software solution that enables banks to instantly

settle cross-border payments with end-to-end tracking. xCurrent permits banks to
message each other in real-time to confirm payment details prior to initiating the
transaction and to confirm delivery once it settles. It includes a Rulebook that ensures
operational consistency and legal clarity for every transaction.
Figure 57. xCurrent is Ripple’s enterprise software solution
Source: Ripple.

Blockchain:
Using XRP, banks can source liquidity on demand in real time without having to
pre-fund nostro accounts. Payment Providers use XRP to expand reach into new
markets, lower foreign exchange costs and provide faster payment settlement.
Ripple provides frictionless sending of money globally. Ripple leverages

blockchain. Ripple has a growing, global network. Financial institutions can process
customer payments anywhere in the world instantly, reliably, and cost-effectively. Banks
and payment providers can use the digital asset XRP to further reduce their costs and
access new markets.
With offices in San Francisco, New York, London, Sydney, India, Singapore and
Luxembourg, Ripple has more than 100 customers around the world.
Figure 58. Ripple Strategic Investors
Source: Ripple.
5.26.2 Ripple Labs a Global Leader In Distributed Ledger

Technology
Ripple Labs is a global leader in distributed ledger technology. The team
supports adoption of Ripple technology that powers the free and instant exchange of
anything of value, and the creation of an Internet of Value (IoV).

Blockchain:
Ripple Labs’ team of 100 is comprised of deeply experienced cryptographers,

security experts, distributed network developers, Silicon Valley and Wall Street
veterans. They contribute code to the open-source software, as well as develop tools
for and recruit financial institutions and payment networks to use Ripple.
The team shepherds a movement to evolve finance so that payment systems are
open, secure, constructive and globally inclusive.
The head of Ripple, one of the biggest blockchain companies, has said its $15bn
of cryptocurrency reserves could be used to acquire or partner with rivals, as it seeks to
dominate its fast-moving sector within financial technology.
American Express and Santander have partnered with financial technology firm
Ripple to speed up cross-border payments between the U.S. and the U.K. With its
cryptocurrency, XRP, Ripple seeks partnerships with banks and other financial
companies.
“Ripple technologies like blockchain or these electronic currencies can be used

to improve the process," according to Bernanke, now a distinguished fellow in residence
at the Brookings Institute. He called out Ripple by name, saying that he's read about
the company's work and thinks that any effort in that direction will be accepted by the
government currency regulators.
Ripple is an Internet protocol that interconnects all the world’s disparate financial
systems to power the secure transfer of funds in any currency in real time – it enables
an Internet of Value (IoV). As settlement infrastructure, Ripple transforms and enhances
today’s financial systems. Ripple unlocks assets and provides access to payment
systems for everyone, empowering the world to move value digitally.

Blockchain:
5.26.3 Ripple XRP The Digital Asset

Ripple offers XRP a Digital Asset for Payments. It is the fastest and most
scalable digital asset, enabling real-time global payments anywhere in the world. Built
for enterprise use, XRP offers banks and payment providers a reliable, on-demand
option to source liquidity for cross-border payments.
Figure 59. Ripple Offers Speed
Source: Ripple.
5.26.4 Ripple Product Manager; Joined From JP Morgan

Chase
According to the web site, Ripple does not see business problems with a
straightforward answer. It is working in uncharted territory and at the magnitude to
transform the world’s financial infrastructure. The passion, intensity and creativity team
brings to problem solving is compelling.

Blockchain:
Figure 60. Yana Novikova, Product Manager; joined Ripple from JP Morgan
Chase
Source: Ripple
5.26.5 Ripple Board of Directors, Susan Athey Has Strong

Ties to Microsoft
Ripple has strong ties to Microsoft through its Board of Directors.

Blockchain:
Figure 61. Susan Athey is Professor of Economics at Stanford Graduate School

of Business
Source: Ripple.
Susan Athey is Professor of Economics at Stanford Graduate School of

Business. She received her bachelor’s degree from Duke University and her Ph.D. from
Stanford. She holds an honorary doctorate from Duke University. She taught
economics at MIT, Stanford and Harvard.
In 2007, Professor Athey received the John Bates Clark Medal, awarded by the
American Economic Association. She was elected to the National Academy of Science
and to the American Academy of Arts and Sciences.

Blockchain:
Professor Athey research focuses on the economics of the internet, internet

search, online advertising, the news media, and virtual currencies. She advises
governments and businesses on the design of auction-based marketplaces. Since
2007 she has served as a consultant to Microsoft in a variety of roles, including chief
economist.
5.27 SAP
SAP sees blockchain as a promising way to simplify complex multi-party
processes and create trust among participants. The company is using its expertise in 25
industries and across all lines of business to actively explore blockchain technology and
to help clients initiate projects.
5.28 Scorechain
Scorechain tool allows companies to implement regulatory compliance
procedures for Bitcoin activities, to investigate on forensics, and also to enhance Bitcoin
companies customers engagement strategy. Scorechain is a Luxembourgish company
started in 2015. Scorechain is providing Bitcoin and Blockchain services to the Bitcoin
stakeholders.

Blockchain:
Figure 62. Scorechain Blockchain Partners
Source: Scorechain

Blockchain:
5.29 Slock.It
Slock.It is developing the Universal Sharing Network USN. Slock.it has the
customer Airbnb. Airbnb apartments are automated, smart objects that can be rented
on demand. Slock.It supports infrastructure of the sharing economy.
5.29.1 Slock.It Addresses Global Market for Sharing

66% of the world is willing to share their assets for financial gain. That figure is
as high as 94% in China. The millennial philosophy is "If you can rent it, why own it".
The sharing economy includes taxis and vacation rentals. It is expanding to

touch consumers and companies, employees and employers. Airbnb automated rental
space has become a well-respected brand. Small business owners prefer to rent work
spaces on demand rather than commit to complex leases.
Anywhere there are underused assets, temporarily vacant apartments, office

space, or machinery, there is an untapped opportunity.

Blockchain:
Figure 63. Slock.It Addresses Shared Resource Market
Source: Nielsen
Slock.It is developing the Universal Sharing Network (USN), an open source

infrastructure on which blockchain applications modules can be deployed. An Open
Platform makes it easy for 3rd parties including manufacturer, small or large, to onboard
any object to the USN, without having to 'ask permission'.

Blockchain:
Figure 64. Slock.It USN Registry and Access Control
Source: Slock.It
5.29.2 Slock.it $2 Million USD Seed Funding to Build Next-

Generation Sharing Economy Platform
Slock.it $2 million in seed funding round goes towards the development of the
Universal Sharing Network (“USN”). This supports the sharing economy by enabling
companies and individuals to rent, sell or share any connected smart object. With the
USN, rental apartments and offices become fully automated, smart objects are rented
on demand. Unused vehicles get a new lease on life.
Slock.It seeks to revolutionize the sharing economy with Blockchain + IoT.

Slock.it’s mission is been to develop the infrastructure of the sharing economy.
Universal Sharing Network, “USN” builds on top of the public Ethereum blockchain. The
USN provides users with a set of mobile and desktop applications to find, locate, rent
and control any object mediated by smart contracts, from anywhere in the world.
The main advantage of using blockchain technology in this context is a radically

simplify a user journey: Open the app > Find an object nearby > Pay for it > Use it.

Blockchain:
The key to use is the smartphone, used for everything and no need to register or
login for the service thanks to a judicious use of security deposits.
Figure 65. Slock.It USN Key Differentiators

Cost effectiveness
Leverage public infrastructure
Do not incur datacenter capital outlays
Interoperability:
Same network of value used to rent car, used to pay for parking or electricity
Security:
Ethereum decentralized apps or ‘dapps’
Benefit from public/private key cryptography
Underlying infrastructure presents no central point of failure.
Transparency: The USN lives on the public Ethereum blockchain and can be
reviewed by anyone
Permissionless: developers and manufacturers alike do not need to request

permission to leverage the USN as part of their products

Blockchain:
Slock.it USN is a B2C product, yet to be launched. When it launches in beta in

2018, is set to be released under a mainstream, user-friendly brand and image. It is in
a B2B integration mode, helping manufacturers onboard their objects onto the
blockchain.
Slock.it does not intend to produce hardware, instead, integrating with partners
including Noke, who find value in the USN as it allows them to dip into the waters of the
service industry while gaining deep insight as to how their products are used in the real
world.
5.30 TATA Consultancy Services

TATA Consultancy Services had deep layoffs in 2017. Financial players use
TATA Consultancy Services to choose between platform- and business model-based
approaches. Consultants help to understand, explore, and adopt blockchain
technology. A platform approach requires multiple validation cycles, which increases
the time required.
A business-model-first approach risks longer conceptualization cycles, due to

lack of timely feedback.
5.30.1 TCS Integrated Blockchain Solution

TCS’ integrated blockchain offerings enable financial firms to explore and exploit
blockchain potential. The offering is based on a set of core guiding principles, with a
‘reference’ implementation. A sponsorship model offers controlled onboarding of
member participants and defines governance mechanisms.
Trusted and verified processing nodes, instead of public nodes, ensure solution
integrity. A distributed flat ledger with digitally signed information with controlled role-
based access to the ledgers ensures privacy of information.

Blockchain:
Figure 66. TATA Consultancy Services Integrated Blockchain Modules

A distributed flat ledger
Digitally signed information
Controlled role-based access to the ledgers
Ensures privacy of information
A simple, ready-to-use version of the platform is available for use. A number of

PoCs across the business domains of value transfer, information registry, and digital
notary have been built on the platform. Alternative platforms, based on bank’s
preferences, are also supported.
Figure 67. TATA Consultancy Services Integrated Blockchain Platform Build

A simple, ready-to-use version of the platform is available for use
A number of PoCs across the business domains included
Value transfer
Information registry
Digital notary
Modules built on the platform
Alternative platforms available
Platforms can be based on bank’s preferences

Blockchain:
Figure 68. TATA Consultancy Services Integrated Blockchain Benefits

Articulate blockchain strategy/roadmap
Validate and develop relevant use case details tailored for the bank
Leverage blockchain architecture framework and checklists as accelerators
Conduct PoCs/pilots on a simple, ready-to-use platform
Leverage partnerships and hands-on experience with market platforms
Implement projects with enterprise integration
5.30.2 TCS Risk Information Management Solution

According to The Basel Committee on Banking Supervision (BCBS), banks must
consistently demonstrate the maturity to carry out risk information management
functions. BCBS 239 norms on risk data aggregation and reporting require rigorous
data control mechanisms to ensure high-quality data across multiple dimensions.
However, lack of transparency and reliability limit the ability of banks to understand the
business impact of any changes to the data ecosystem.

Blockchain:
Figure 69. TCS Risk Information Management Solution

TCS’ Integrated Information Controls Framework
Works in accordance with the BCBS 239
Helps financial firms effectively implement, manage, and measure data controls
Helps apply controls on data stores to evaluate risk
Ensures optimal data quality management
Through benchmarking
Monitor data exceptions
Monitor reconciliation issues
Provides reports based on key performance indicators
Helps implement data controls

Blockchain:
TATA Consultancy Services ensures optimal data quality management through

benchmarking, monitor data exceptions and reconciliation issues, and provide reports
based on key performance indicators of data controls.
Figure 70. TCS' Integrated Information Management Framework for Financial

Firms
Source: TATA Consultancy Services

Blockchain:
By facilitating comprehensive view of data quality and controls across a bank’s

data landscape, they are positioned to better understand the weaknesses and strengths
of organizational data risks. This in turn allows the ability to view, analyze, and use data
points consistently, irrespective of the underlying application.
TATA Consultancy Services framework of dedicated modules help banks

institute comprehensive data quality and governance for effective risk management.
Figure 71. TATA Consultancy Services Benefits

Comprehensive regulatory compliance
Prudent risk management
Better change management
Streamlined data governance
Elucidation of challenges
With the increase in regulatory demands, risk management has become a key
focus area for banks and financial services firms worldwide. Organizations have
accorded risk data governance the highest priority in their strategic business objectives.
What financial enterprises need is to ensure robust risk data aggregation and reporting
at the group level, as well as across business lines and legal entities. The Basel
Committee on Banking Supervision (BCBS) has mandated that industry players
establish unified standards on data management, adopt consistent data taxonomies,
and establish uniform data architectures at the organizational level.

Blockchain:
Tata Consultancy Services’ (TCS’) Integrated Information Management

Framework helps banks and financial services firms effectively implement requisite data
management controls for risk data aggregation. Dedicated modules for data quality,
transparency, and governance; information security; and change management provide
a framework that helps institute comprehensive data governance for effective risk
management, thereby ensuring regulatory compliance.
The BCBS 239 norms on risk data aggregation and reporting require banks to
consistently demonstrate the maturity and effectiveness of their risk information
management functions. Financial firms find it challenging to institutionalize rigorous
data control mechanisms to ensure high quality data across multiple dimensions.
It is crucial for banks to gain a 360-degree, pan-enterprise view of risk data and
associated management controls, spanning multiple information systems, on a
consistent basis. Inadequate data transparency and unreliable lineage further add to the
complexity, limiting the ability of decision makers to understand the business impact of
any changes to the data ecosystem.
TCS’ Integrated Information Management Framework for Financial Firms helps

effectively implement, manage, and measure data controls that have been applied on
risk data stores. In accordance with the BCBS 239, the framework allows optimal data
quality management through benchmarking against predefined standards, monitoring of
data exceptions and reconciliation issues, and provisioning of reports based on key
performance indicators (KPIs).
By facilitating comprehensive documentation across a bank’s data landscape,

TCS’ framework helps foster better understanding of the organizational data flow, its
weakness and strengths. This in turn allows banks to view, analyze, and use a data
point in a consistent manner, irrespective of the underlying application.

Blockchain:
The framework helps banks in streamlining risk and compliance data

management practices, further enabling the CRO function to deliver strong data driven
risk analytics and insights to effectively responding to market dynamics. This shall, in
turn, manage risk exposure and enable economic opportunities.
The transparency modules help to bring greater visibility of organizational data

assets and implement a “Know Your Data” culture in organizations. With its business
impact insights, the framework further provides visibility into the strengths and
weaknesses of the organizational data, and the business impact of data weaknesses,
thus enabling management to take informed actions in managing data risks and data
issues. The data governance modules help effective operationalization of data
governance, further facilitating governing and exploiting information assets for business
benefits. TCS partnering leverages the following differentiators:
Figure 72. TCS Blockchain Advantage

Domain expertise: TCS’ subject matter experts and technology specialists
Implementing risk management solutions
Risk management solutions with regard to Basel norms
For global banks and financial services firms
Mature risk management

Blockchain:
Mature risk management addresses industry needs. Services are fully compliant
with diverse legal and regulatory standards across jurisdictions. TCS’ Integrated
Information Management Framework is flexible. The framework is technology agnostic.
It can be integrated into a bank’s prevailing IT, customized to unique organizational
requirements. The architecture is compatible with a variety of metadata management
solutions.
5.31 Other Blockchain Companies

The blockchain ecosystem comprises vendors Abra (US), AlphaPoint (US),
Amazon Web Services, Inc. (US), Bitfury Group Limited (US), BTL Group Ltd.
(Canada), Chain, Inc. (US), Coinbase (US), Digital Asset Holdings LLC. (US), Earthport
PLC (UK), Factom (US), International Business Machines Corporation (US), Microsoft
Corporation (US), and Ripple (US).
DigitalX (ASX code: DCC), which specialises in blockchain software and a

secure for the global digital payments industry, specifically in mobile bill payments and
remittance. Its mobile product AirPocket provides consumers secure cross-border
payments and remittances from over 30,000 payout locations in 14 countries with a
heavy presence in North America and South America
Other blockchain stocks – mainly listed in North America – include BTCS, BTL
Group, Coinsilium Group, First Bitcoin Capital (which was suspended from trading by
the US Securities and Exchange Commission [SEC] last month for a too-quick rise),
Global Arena Holding and HashingSpace. There are also plans for bitcoin/blockchain
exchange-traded funds (ETFs) to be issued, although only one, the Bitcoin Investment
Trust, has yet made it to listing.

Blockchain:
Blockchain may well be a revolution, but at this stage, the technology, although
developing quickly, is only in its infancy. However, the move to blockchain becoming
mainstream cannot be achieved in only isolated industries. The changes required are
pervasive and will require close collaboration between all countries, industries,
competitors, regulators, consumers, technologists, and the legal community in order to
achieve a suitable solution, and integration into the global economies.

Blockchain:
Figure 73. Blockchain Companies: Startups With ICOs

Blockchain:

Blockchain:

Blockchain:
Source: cbinsights.com

Blockchain:

Blockchain:
Leading the inaugural class of the top 100 private cloud companies in the world
is Slack , the team messaging and collaboration software company with 3 million users
and a $3.8 billion valuation. It's followed by file-sharing leader Dropbox at No. 2, e-
signature company DocuSign at No. 3, payments company Stripe No. 4 and data
management shop Cloudera at No. 5. Online survey manager SurveyMonkey, e-mail
marketer Mailchimp, website builder Squarespace , app manager AppDynamics and
another payments company, Adyen, round out the top 10.

Blockchain:
Founded in 1985, provides strategic market assessments in software,

communications products, communications services, and advanced
technology.
Reports focus on opportunities to expand existing markets or develop

new markets. The reports access corporate positioning, market strategies,
and product marketing opportunities. Reports evaluate the impact of new
technologies. Reports assess the strategies and positions of leading
participants.
The principals of WinterGreen Research have been involved in

analysis and forecasting of international business opportunities in
healthcare, energy, telecommunications, and advanced computer
technology markets for over 30 years.
WinterGreen Research Methodology

WinterGreen Research authors use a structured, consistent, and detailed primary
research approach. The methodology supports an analytical approach to market
research. In depth comparisons are made of many aspects of the market. Data relating
to Industry segments is developed from primary sources to permit presentation of
forecasts and market share positioned to have substantive value.
Research involves talking to customers, vendors, and distributors, doing trend

analysis and attending local and national meetings, conducting interviews while there.

Blockchain:
Full spectrum research and information services, including market reports,

customized research, and customer interviewing are available, reports and research are
positioned to provide strategic value to industry participants, strategic planners, and
product managers.
New systems create indexes that track company performance. These combined
with independent industry analysis, leverages the expertise of the WinterGreen
Research Analyst team. The company is positioned to have the team members
conduct themselves with integrity - always.
All Rights Reserved
Reproduction without Permission Prohibited

Blockchain:
WinterGreen Research Process
The market research process is a combination of using primary market research

through interviews with users and distributors, looking at companies and vendors, taking
a comprehensive look at secondary sources, and leveraging internal databases that
index trends going back to 2006.
Market Research Study

There is no substitute for having senior analysts do the work of understanding a
market. The WinterGreen Research study is organized in a way that supports taking a
look at a market from a variety of directions. There is an executive summary for those
who want a quick view of the most important findings. There is a market definition and
market dynamics presentation. The market shares and forecasts by segment follow in
chapter two. This gives a concise presentation of the numbers and the market driving
forces. Most important for really understanding the market are product descriptions in
chapter 3. The ability to compare what each company is doing to approach a market, to
look at the nuance of different approaches to the same market gives product managers
a concise view of alternative directions to take with a product platform.

Blockchain:
To understand a market, it is not sufficient to prepare a few tables that show a list
of features and put check marks next to features offered by a certain company. All the
features are expressed differently by each vendor, by each market participant; it is the
through study of nuance, of differences in the context from chapter two market share
analysis of who is leading the market and who is poised to lead the market going
forward that helps key decision makers. Study of the relative feature function packages
is done with pictures, text, and tables and figures.
Each study contains analysis of selected technologies that drive the market and
summaries of the leading companies in a segment. See the complete table of contents
on the WinterGreen Research site or available from your distributor.
WinterGreen Research Global Market

Intelligence Company
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software and technology sectors with a concentration on providing high quality
forecasting and concise trend analysis contained in chapter two of the study. These
forecasts and market shares are backed by a comprehensive view of the market sector
that provides a complete snapshot of what is happening in a market segment.
WinterGreen Research is an independent research organization funded by the

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to help customers facing challenges that define the modern enterprise. The
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of the implementation of the globally integrated enterprise. Customers trust
WinterGreen Research to work alongside them to ensure the success of the
participation in a particular market segment.
Senior analysts provide insight for decision makers.

Blockchain:
We thank you for purchasing our study and request that you provide feedback to
info@wintergreenresearch.com. You may ask questions if you have them.
WinterGreen Research Team.
WinterGreen Research takes no responsibility for any incorrect information supplied in this report. Reports
are prepared on a best efforts basis by responsible, senior professionals. Reports are prepared by reference to
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Blockchain Market Shares, Market Strategies, and

Market Forecasts, 2018 to 2024

Abstract: Blockchain Markets Headed to $60

Copyright 2018, WinterGreen Research, Inc. 1

Abstract: Blockchain Markets Headed to $60 Billion Worldwide by 2024 1

Blockchain Executive Summary 15

Blockchain Market Driving Forces 15

Blockchain Market Forecasts 20

1. BLOCKCHAIN: MARKET DESCRIPTION AND MARKET DYNAMICS 23

1.1 Blockchain Market Description and Market Dynamics 23

Copyright 2018, WinterGreen Research, Inc. 3

1.2 Blockchains: Cryptographically Secured Distributed Ledgers 24

2. BLOCKCHAIN MARKET SHARES AND FORECASTS 28

2.1 Blockchain Market Driving Forces 28

2.2 Blockchain Market Shares 34

2.3 Blockchain Market Forecasts 40

2.4 Blockchain Applications 46

2.5 BFSI: Blockchain Impact on Stock Market 50

2.6 Blockchain for Healthcare 64

2.7 Blockchain for Cybercurrency and Legal Industry 70

2.8 Blockchain for Supply Chain 73

2.9 Blockchain for Internet of Things 75

Copyright 2018, WinterGreen Research, Inc. 4

2.10 Cloud Revenue 81

2.11 Blockchain Pricing 83

2.12 Blockchain Regional Market Segments 88

3. BLOCKCHAIN PRODUCT DESCRIPTION 91

3.2 JPMorgan Chase Blockchain Network Quorum 92

3.4 HIVE Blockchain Technologies 94

3.8 Digital Currency: BitCoin 95

3.9 China Opens Its Financial System To The World 98

3.10 Korean Blockchain Association 100

3.11 European Union Central Bankers On Cryptocurrency 101

3.12 Fidelity Investments, Blockchain 103

Copyright 2018, WinterGreen Research, Inc. 5

3.13 Ethereum 104

3.14 Blockchain Bitcoin 105

3.15 Ripple Blockchain 107

4. BLOCKCHAIN RESEARCH AND TECHNOLOGY 108

4.2 Blockchain Electricity Usage 109

4.3 Accenture Patent Tied To "Editable Blockchain" 109

5. BLOCKCHAIN COMPANY PROFILES 110

5.1 360 Blockchain Inc 110

5.2 Accenture 110

5.3 Abra 118

5.4 Amazon 119

Copyright 2018, WinterGreen Research, Inc. 6

5.4.4 Corda R3 125

5.5 Axoni 129

5.6 BitFury Group 135

5.7 Binance Exchange 138

5.8 BlockCypher 138

5.9 BTL Group 140

5.10 Chain 143

5.11 ConsenSys 146

5.12 Deloitte 146

Copyright 2018, WinterGreen Research, Inc. 7

5.13 Digital Asset Holdings 146

5.14 Ethereum 147

5.15 EzyRemit 150

5.16 Fidelity Investments 152

5.17 Global Arena Holding 152

5.18 Goldman Sachs 152