Purpose: The slides provide an overview on the Blockchain trend Content: Summary information about the Blockchain marketplace, including trends drivers, spending trends, industry business cases, and adoption challenges. Also included are links to additional resources. How To Use This Report: This report is best read/studied and used as a learning document. You may want to view the slides in slideshow mode so you can easily follow the links Available on Slideshare: This presentation (and other Trend Reports for 2017) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

1. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Welcome to the new era of Blockchain
Bill Chamberlin, Principal Analyst, New Markets/HorizonWatch, MD&I
Margot Juros, Content Manager – Vertical Industries, MD&I bluemine
February 15, 2017
Blockchain Trend Report, 2017

2. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
About This Trend Report
18Feb2017
 Purpose: The slides provide an overview on the Blockchain trend
 Content: Summary information about the Blockchain marketplace, including
trends drivers, spending trends, industry business cases, and adoption
challenges. Also included are links to additional resources.
 How To Use This Report: This report is best read/studied and used as a
learning document. You may want to view the slides in slideshow mode so you
can easily follow the links
 Available on Slideshare: This presentation (and other Trend Reports for
2017) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please Note: This report is based on internal IBM analysis and is not meant to
be a statement of direction by IBM nor is IBM committing to any particular
technology or solution.
2 Blockchain Trend Report, 2017 (External Version)

3. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
BlockChain – Trend Overview
The backbone of the future peer to peer transaction network, Blockchain technology will provide an open
and distributed cryptographic ledger shared across all nodes that participate in the network. The ledger is
where every successfully performed transaction is recorded. All those in the network will share a secured
ledger. The ledgers will be programmable, meaning actions can be taken based on a transaction hitting
the ledger.
3
Potential Benefits
• Secure transactions
• Reduced overhead and
intermediaries
• Establishes trust among parties
• Reduced transaction settlement
time
• Reduced risk of collusion or
tampering
• Reduced transaction errors
• Improved auditability
18Feb2017
Key Elements
• Distributed Database - Provides a historical shared ledger of data &
events for every transaction
• Peer-to-peer network – All parties agree & verify transactions
• Append only – previous records can not be altered
• Security / Privacy – built into the transaction records
• Programmability - capability to program an activity based on event
Example Use Cases
1. Replace complex, slow and error-prone business processes
2. Proving provenance, ownership, usage rights, or status of a record
3. Proof of identity
4. Automatic execution of contractual agreements (smart contracts)
Definition
Blockchain Trend Report, 2017 | External

4. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Hype around Blockchain continues to build and the
disruptive potential is real
4
1. Creates Trust Among Parties. Blockchain can establish trust
among parties where no relationships, or trust, currently exist.
2. Reduces Transaction Time/Costs. By eliminating second and
third parties to a transaction, blockchain can reduce time/costs
to settle a transaction, conduct a vote, establish a contract, etc.
3. Technology Limitations. Blockchain technology in its current
form suffers from significant current limitations when it comes to
scalability, security and governance.
4. Slow Path To Mass Adoption. Main stream deployment could
be 5-10 years away. Much will depend on standards work,
government regulation and how quickly industry leaders adopt.
Education is a big challenge. Disruption of powerful legacy
industry and governmental ecosystems another.
5. Financial Services. Blockchain will cause major disruption to
existing processes such as crowdfunding, digital payments,
trading, settlement and clearing.
6. Other Industry Use Cases. Transaction heavy industries or
industries where trust is vital will be good applications for
blockchain. For example, in healthcare the privacy, integrity and
control over access to data is paramount and critically important.
7. Standards / Consortiums. There are a number of initiatives
going on to develop standards, development platforms and
tools.
Key Summary Insights
Blockchain Trend Report, 2017 | External18Feb2017
HBR: The Truth About Blockchain
IBM Institute for Business Value:
Leading the pack in blockchain banking
“The Hyperledger project is an
open source collaborative effort
created to advance cross-
industry blockchain technologies.
It is a global collaboration
including leaders in finance,
banking, IoT, supply chain,
manufacturing and technology.”
Hyperledger.org

5. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
BlockChain – Trends to watch in 2017…. And beyond
1. Financial Services. Look for more a flurry of activity by financial
institutions in 2017 and the supporting IT ecosystem. Many IT
services vendors have already launched Blockchain teams with a
focus on financial services.
2. Education. Look for vendors to increase education initiatives to
convince business and IT leaders that blockchain will have far
greater implications than just enabling electronic payments.
3. Standards: Much work remains on standards and on
interoperability. Ripple Lab, Chain, Digital Asset Holdings, the 50-
plus member R3 CEV consortium and the Linux Hyperledger
Foundation are all working to develop enterprise grade distributed
ledger frameworks.
4. Blockchain & IoT: Applying Blockchain to IoT transactions has
the potential to securing transactions coming from the edge of
networks, making it a popular topic of discussion for IT
professionals working in security, cloud and IoT implementations.
5. Industry Apps & Clouds. In 2017, look for industry cloud
vendors to explore embedding blockchain capabilities into
industry-specific decentralized applications and industry clouds to
support business transactions.
6. Regulation. Regulators and legislators are watching blockchain
development closely to understand the need for new regulations
and laws.
5
Forbes: How Blockchain Will Evolve In
2017
18Feb2017
Market Trends
Blockchain Trend Report, 2017 | External
“Blockchain is beginning to play a
major part in the Internet of
Things by enhancing security,
enabling inclusion of low-value
devices to be increasingly viable
and making managing a device
easier for decades to come..”
IBM: What blockchain means for you, and
the Internet of Things
Finextra: Blockchain, Financial
Regulatory Reporting and Challenges

6. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
A focus has been on Financial Services use cases,
but there are many opportunities in other industries
1. Financial services will invest the most in 2017. While
Financial Services has already has adopted blockchain
solutions, particularly in the area of clearing and near-real-
time securities settlement, cross-border remittances, and
equity swap, in 2017 investment is expected to grow even
more in new application areas - including more backoffice
operations such as regulatory reporting and KYC (Know Your
Customer) processes.
2. Expect growth in Healthcare/Life Sciences in 2017.
Healthcare/Life Sciences are expected to rollout blockchain
solutions faster than any other industries in 2017, largely
driven by the strong benefits of time, cost, and security. Key
uses cases expected in 2017 are clinical trial records,
regulatory compliance and medical/health records.
3. Government & Retail have strong use cases and growing
adoption as well. The benefits of blockchain solutions of
transparency and immutability make it very appealing for
Government use cases including digital voting and reducing
fraud (such as in social services) through smart contracts as
well as Retail use case of secure transactions. Other
industries are growing blockchain adoption as well, including
Media and Energy.
6 18Feb2017
Market Trends
Blockchain Trend Report, 2017 | External
“The health care industry has already
started to embrace the
transformational power of
technology. Blockchain is another
step forward in simplifying a health
system so we can help usher in a
new level of care. The promise of
Blockchain is about putting the
consumer at the center of health
care, instead of the other way
around.” Bruce Broussard, President and CEO
at Humana Blockchain: Transformational
Technology for Health Care
CB Insights: Banking Is Only The Start: 27
Big Industries Where Blockchain Could Be
Used

7. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Use cases for Blockchain also extend to many
horizontal applications
1. Smart Contracts: Self-automated computer programs can
automate contract execution and settlement based on certain
transactions hitting the ledger
2. Reducing Cyber Security Risk: Less intermediaries, combined
with advanced cryptographic capabilities will reduce cybersecurity
risk
3. Identity of Things: Device identification and intercommunication is
secured by a blockchain that holds the unique identity of each
participating node in the network.
4. Voting: Blockchains can serve as the medium for casting, tracking
and counting votes so that there is never a question of voter-fraud,
lost records, or fowl-play.
5. Gift Cards: With fewer middle-men needed to process the issuing
of cards and sales transactions, the process of acquiring and using
blockchain-reliant gift cards is more efficient and cost effective
6. Edge of Networks Data Storage: Blockchain cloud storage
solutions allow storage to be decentralized, and therefore less prone
to attacks that can cause systemic damage and widespread data
loss.
7. Supply Chain Tracking: With blockchain, as products change
hands across a supply chain from manufacture to sale, the
transactions can be documented in a permanent decentralized
record — reducing time delays, added costs, and human errors.
7 18Feb2017 Blockchain Trend Report, 2017 | External
Market Trends
Chamber of Digital Commerce:Smart Contracts:
12 Use Cases for Business & Beyond
“Applying the blockchain concept to
the IoT offers fascinating possibilities
that include maintaining product
information, history, product revisions,
warranty details and end-of-life so that
the blockchain itself can become the
trusted product database.” IBM:
Empowering the edge
“Due to its decentralized architecture,
blockchain has the potential to create
a new paradigm for how supply chain
applications are created, implemented
and utilized. It has the potential to
become a new operating system for
supply chain networks.” Industry Week:
Blockchain: The Next Evolution of Supply Chains

8. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
There are a number of important issues that will slow
the adoption of blockchain
1. Technical Issues. Resolving challenges such as transaction speed,
platform interoperability, verification process, and data storage will be
crucial in making blockchain widely acceptable.
2. Security, Privacy and Control Issues. Ensuring data security & privacy
among parties are main concerns. As the blockchain transactions are
recorded in the distributed public ledger, it offers hackers a larger attack
surface to gain access to critical and sensitive information
3. Standards. Like any emerging technology, mass adoption will depend
on industry-wide standards. Many companies will choose to stay in the
background, choosing to wait until standards get defined.
4. Interoperability. There will be many implementations of blockchain
systems. Platforms and apps will need to talk to each other. Different
systems on different platforms should be able to allow the data flow.
5. Governmental Regulation. A decentralized approach to identity and
transaction management reduces the control of governments and
corporations. You can bet Government will want to regulate it’s
adoption, which could impact the progress of blockchain solutions
6. Cultural Change. Changing from legacy systems may be hard.
Blockchain will change business processes, models, and perhaps entire
industries
7. Lack of Skills and Tools. Developers with blockchain expertise are
rare. Blockchain developer tools are nascent. These factors increase
security risks and make the cost of developing with blockchain platforms
higher than existing technology stacks.
8 18Feb2017
Adoption Trends
Blockchain Trend Report, 2017 | External
“Financial institutions, real estate
brokers, law firms and other
organizations with an interest in
trust-based transactions will be
swarming blockchain in 2017,
and you can bet regulators will be
right behind them.” Security
Intelligence (IBM): Regulators Want In on
the Blockchain Party in 2017
Bitcoin Magazine: The Blockchain
Developer Shortage: Emerging Trends
and Perspectives
Adi Ben-Ari: Outstanding Challenges
in Blockchain Technology in 2017

9. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
IBM surveyed 200 banks in 16 countries on their
experiences and expectations with blockchains
9
IBM Institute for Business Value: Leading the pack in blockchain banking
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 banks in 16 countries on their experiences and
expectations with blockchains.
Blockchain Trend Report, 2017 | External18Feb2017
Adoption Trends

10. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
IBM surveyed 200 government leaders in 16
countries on the topic of blockchains
10
IBM Institute for Business Value: Building trust in government
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 government leaders on their experiences and expectations
with blockchains.
Blockchain Trend Report, 2017 | External18Feb2017
Adoption Trends

11. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
IBM surveyed 200 healthcare executives – both payers
and providers in 16 countries
11
IBM Institute for Business Value: Healthcare rallies for blockchains: Keeping patients at the center
Blockchain Trend Report, 2017 | External18Feb2017
The IBM Institute for Business Value with the support of the Economist Intelligence Unit surveyed 200 healthcare executives on their experiences and
expectations with blockchains.
Adoption Trends

12. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected public IBM Websites, resources and links
12
On ibm.com
 IBM: Blockchain (main website)
 What is Blockchain
 Use Cases
 How blockchain can apply to your business
 About the IBM Blockchain ecosystem
 How to get started
 Blockchain Offerings
 Blockchain on Bluemix
 Blockchain on developerWorks
 DeveloperWorks: Blockchain
 IBM Blockchain Newsroom & Press Kit
 IBM Institute for Business Value Studies on
Blockchain
 IBM Banking: Ginni Rometty's keynote at the
FinTech Ideas Festival 2017
Hyperledger Pro: Hyperledger Project
Important Links
IBM Video Blockchain in 3 Minutes
IBM: What is Blockchain
Blockchain Trend Report, 2017 | External18Feb2017
“The 3 courses in this learning path can help
you quickly understand IBM’s direction with
blockchain technology and get hands-on
experience with a sample use case. Learn
how to create your own private blockchain
network on IBM Bluemix and add code for
smart contracts using the chaincode interface
from the Hyperledger Fabric.” IBM: Courses: IBM
Blockchain for developers

13. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected videos about BlockChain
 IBM Videos
– IBM Think Academy: Blockchain, How it works
– Making Blockchain Ready for Business
– Making Blockchain Real for Business
– IBM on Blockchain
– Building a blockchain for business with the Hyperledger
Project
– DC Blockchain Summit – Keynote: Arvind Krishna, IBM
– Blockchain in IBM Global Financing
– Blockchain Demo with IBM z Systems
 Other Videos
– Blockchain technology: Transforming the way business
transactions are conducted
– IBM on Blockchain
– Blockchain: Transforming the Future of Global
Business
– The Bitcoin and Blockchain Technology Explained
– Blockchain technology
– Deutsche Bank - Blockchain: Overview. Relevance.
Outlook
13
IBM: Making Blockchain Ready for
Business (video)
18Feb2017
IBM: Blockchain technology: Transforming the
way business transactions are conducted
Important Links
Blockchain Trend Report, 2017 | External

14. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Additional links to resources found on the Internet
 Beckers Hospital Review: 9 things to know about blockchain in
healthcare
 CIO: Blockchain is busting out of its britches
 ComputerWorld: 5 enterprise-related things you can do with
blockchain technology today
 Forbes: Blockchain And Its New Rainmakers
 Ginni Rometty, IBM (via WSJ): How Blockchain Will Change
Your Life
 Huffington Post: 5 Blockchain Applications That Are Shaping
Your Future
 MIT Sloan: How Blockchain Will Change Organizations
 Security Intelligence: In 2017, Blockchain Gets Serious
 TechRepublic: Video: The top 5 things to know about the
blockchain
 VentureBeat: How blockchain can change the future of IoT
 VentureBeat: IBM goes all-in on blockchain: Launches app-
making ecosystem
 Wired: Move over Bitcoin, the blockchain is only just getting
started
14
IBM Security Intelligence: In
2017, Blockchain Gets Serious
18Feb2017
Finextra: Blockchain publications
that should be on your reading list -
How many have you read?
Becker’s: 9 things to know about
blockchain in healthcare
Important Links
Blockchain Trend Report, 2017 | External

15. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Selected public-facing IT analyst websites and
resources
15
 451 Research: Blockchain (search)
 Forrester: Blockchain (search)
 Frost & Sullivan: Blockchain (search)
 IDC: Blockchain (search)
 Gartner: Blockchain (search)
 MarketsandMarkets: Blockchain (search)
 TBR: Blockchain (search)
Important Links
“We believe the blockchain ledger space will
be a marathon versus a sprint given the
myriad of technology, business process, and
regulatory opportunities and challenges that
need to be addressed. ” Bill Fearnley, research
director, IDC Financial Insights: Blockchain Technology:
Disruptive Forces in Financial Services, According to IDC
Blockchain Trend Report, 2017 | External18Feb2017
“The healthcare industry is primed for a
radical rethink of its digital infrastructure. The
current infrastructure does not support the
security or interoperability requirements of
connected lives. Blockchains can provide
technology solutions to these challenges:
interoperability, integrity and security, and
portable user-owned data.” Frost & Sullivan:
Blockchain Applications in the Healthcare Industry

16. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
Public searches of selected media websites
16 18Feb2017
 American Banker Blockchain (search)
 CIO.com: Blockchain (search)
 ComputerWorld: Blockchain (search)
 Economist: Blockchain (search)
 eWeek: Blockchain (search)
 Forbes: Blockchain (search)
 Fortune: Blockchain (search)
 Financial Times: Blockchain (search)
 InformationWeek: Blockchain (search)
 InfoWorld: Blockchain (search)
 SD Times: Blockchain (search)
 Wired: Blockchain (search)
Important Links
Economist: A rush to patent the blockchain is a sign of
the technology’s promise
Blockchain Trend Report, 2017 | External
“Blockchain entrepreneurs are working towards
a future where everything from renting an
apartment to betting on an election is
guaranteed by a distributed public ledger. Is this
the beginning of the end for the middlemen?.”
WIRED: Beyond bitcoin. Your life is destined for the
blockchain

17. Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
More Insights on Technology Trends are Available
17
Other slide decks in this 2017 Trend Report series have been posted to Slideshare
You are also invited to check out the following IBM websites and resources
– IBM Academy of Technology
– IBM Institute for Business Value
– IBM Research and Research News and 5 in 5
– IBM’s THINK blog
– IBM Think Academy on YouTube
18Feb2017 Blockchain Trend Report, 2017 (External Version)