Alex-Paul Manders and Jim Hurley (ISG), present Blockchain during the 2017 ISG Digital Business Summit.

1. 1ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
June 19 - 20

2. 2ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
Blockchain
Jim Hurley and Alex Manders

3. 3ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
Who has not heard about Blockchain?
What have you heard?

4. 4ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
Two things to remember for
planning
purposes
It’s still very early – and use cases are evolving
rapidly
Blockchain and Database functionality will merge
over time
1111
2222

5. 5ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
Blockchain Basics
What? Underlying distributed ledger – Bitcoin, Ethereum, other crypto-currency + smart-contract uses
Invented in 2008
Open source since 2009
Best – and today its primary – use is for trading cryptocurrencies
Use case from Bitcoin: prevent double spend of a digital coin (a digital asset residing within the distributed ledger)
Other similar use cases:
● rent / lease SaaS, Storage as a Service, other digital assets as a service
● smart contracts
● supply chain, multiparty financial contracts, tangible asset trades, decentralized business process
Who?
Primarily Financial services
Some early testing in
manufacturing
Some promises of tests in
healthcare
Large vendors (IBM, Microsoft, etc.)
Services Providers (Wipro,
Luxoft, etc.)
More than 1,000 startups

6. 6ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
Have We Seen Peak Hype?
Hype
Blockchains are Eating the World
(October 2015)
Lines are being drawn in the sand by those in the
Blockchain Protocol Wars. This week was huge, with
several product/protocol announcements from well
funded FinTech companies working with Blockchain
Technology.
Blockchain is Eating Wall Street
(October 2016), Alex Tapscott – TED Talk
Peak?
Blockchain is Not Going to Change the World (June
2016)
I’m fed up with the hype around Blockchain. It’s not
rocket science, it’s not revolutionary and
it’s not even that smart. And it’s not going to change
the world

7. 7ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
More Blockchain Basics
What?
Distributed ledger – Bitcoin is approaching 8,000 nodes
Merkle trees – fundamental cryptographic technique for linking blocks using Hash values between nodes
in the tree
Public Key Cryptography – access to public key makes reads accessible to all who possess it
Consensus protocol – fundamental method used to check/guarantee the integrity of writes to the ledger
Ledgers
Public LedgersPublic LedgersPublic LedgersPublic Ledgers
Bitcoin
Ethereum
IOTA
Private LedgersPrivate LedgersPrivate LedgersPrivate Ledgers
Multichain
IBM Bluemix
Blockchain
Open chain
Public/PrivateLedgersPublic/PrivateLedgersPublic/PrivateLedgersPublic/PrivateLedgers
Hyperledger
IBM Blockchain
as a Service
MS Azure Blockchain
as a Service
Elastic LedgersElastic LedgersElastic LedgersElastic Ledgers
BigchainDB
Hyperledger
Azure MySQL/
PostgreSQL

8. 8ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
CLT–and–DLT
How they compare today
High performance writes (>25,000/second)
Confidential transactions
Assets are outsider the ledgers
Two to six replicate ledgers, primarily for failover and
disaster recovery
Source of truth for operating the business
CLTCLTCLTCLT
Database Central Ledger TechnologyDatabase Central Ledger TechnologyDatabase Central Ledger TechnologyDatabase Central Ledger Technology
DLT
Blockchain Distributed Ledger TechnologyBlockchain Distributed Ledger TechnologyBlockchain Distributed Ledger TechnologyBlockchain Distributed Ledger Technology
Low performance writes (one every ten minutes with bitcoin
blockchain)
Tamper-proof transactions
Assets inside the ledgers
100 to 8,000 replicate ledgers for applications and fault-
tolerant-like-continuous access
Source of truth for crypto-currency and …… search for more is
underway now

9. 9ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
The Future is Configurable – and then
Elastic – Ledgers
1 10 100 1,000 10,000
100,000
10,000
1,000
100
10
Performance
(transactions per second)
Number of
Replicated Ledgers
Traditional
SQL
Databases
Elastic Ledger
Systems
Next-gen
NoSQL Databases
Next-gen
Blockchains
First-gen
Blockchains

10. 10ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
What to Expect - 2019
Database CLT
High performance writes
(>25,000/second)
Confidential transactions
Assets are outsider the ledgers
2 to 6 replicate ledgers, primarily for
failover and recovery
Source of truth for operating the business
Blockchain DLT
Low performance writes (one every ten
minutes with bitcoin blockchain)
Tamper-proof transactions
Assets inside the ledgers
100 to 8,000 replicate ledgers for
applications and fault-tolerant-like-
continuous access
Source of truth for crypto-currency and ……
search for
more underway now
What to ExpectWhat to ExpectWhat to ExpectWhat to Expect
DLT approaches CLT at the expense of fewer
replicate ledgers (5 to 50)
Permissioned DLT mixes confidentiality with
tamper - proof transactions
DLT adds assets outside its ledgers
CLT adds ~ 50 to 100 replicates
Synchronous vs. Aynchronous writes performance
becomes a dividing line
New apps (IoT, intelligent systems, etc.)
Favor use of DLT

11. 11ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
What to Expect – 2021 to 2025
10%
20%
30%
40%
50%
60%
70%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Bitcoin, public chains, crypto-
currency and payment networks
1
Phases
3
2
A thousand application-
test
opportunities bloom
Production ITSM, integration,
Identity and trust chains

12. 12ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
Two things to remember for
planning
purposes
It’s still very early – and use cases are evolving
rapidly
Blockchain and database functionality will merge
over time
1111
2222

13. 13ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved. DIGITAL BUSINESS SUMMIT
ISG (Information Services Group) (NASDAQ: III) is a leading global technology research and advisory
firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the
world, ISG is committed to helping corporations, public sector organizations, and service and technology
providers achieve operational excellence and faster growth. The firm specializes in digital
transformation services, including automation, cloud and data analytics; sourcing advisory; managed
governance and risk services; network carrier services; technology strategy and operations design;
change management; market intelligence and technology research and analysis. Founded in 2006, and
based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20
countries—a global team known for its innovative thinking, market influence, deep industry and
technology expertise, and world-class research and analytical capabilities based on the industry’s most
comprehensive marketplace data.
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