This presentation covers how to identify good blockchain use-cases, examples of good use-cases and how to use existing investment in middleware (such as IBM MQ) in conjunction with blockchain for good effect.

1. IBM Blockchain Usage Patterns
v1.3, 24 October 2019
Repeatable scenarios for blockchain success
Blockchain Explained Series
Blockchain Explained
IBM Blockchain Platform Explained
Solutions Explained
Labs Explained
What’s New
IBM Blockchain Usage Patterns

2. Great examples
Tried and trusted scenarios that are
perfect fits for blockchain
Integration patterns
How blockchain can help take your existing
middleware investment to the next level
The golden rules
The most important questions that will
identify any good blockchain use-case

3. 3
Blockchain is a shared, replicated ledger
§ Blockchain lets you build a decentralized
business network
§ Blockchain builds on basic business concepts
§ Business networks connect businesses
§ Participants with identity
§ Assets flow over business networks
§ Transactions describe asset exchange
§ Contracts underpin transactions
§ The ledger is a log of transactions
§ IBM Blockchain Platform allows you to
build, operate and grow blockchain networks
in heterogeneous environments

4. 4
IBM is the leader in enterprise blockchain technology
Only blockchain platform
that doesn’t lock you in to a
single vendor
Most advanced developer
and operator tools that make
network configuration simple
Only enterprise blockchain
platform with true multi-
cloud capabilities
IBM has more production
blockchain networks than
any other competitive
platform
IBMers are the undisputed
enterprise blockchain experts
We are the only provider of
end to end enterprise
blockchain services in the
industry

5. 5
The golden rules for blockchain
A business
problem to
solve
An identifiable
business
network
A requirement
for trust in
the network

6. 6
The importance of the business problem
§ Think of the only reasons businesses act:
§ Reaching new markets
§ Reducing cost
§ Managing risk
§ Regulator compliance
§ Which category of problem are you trying to solve?
§ IBM can run a blockchain value design exercise to help
quantify return on investment
§ Are there new markets you cannot
reach due to barriers to entry?
§ Are manual processes increasing the
time it takes you to react?
§ Do you have a real-time view into
your risk exposure?
§ How is the regulatory landscape
changing in your industry?

7. 7
The importance of the business network
§ Blockchain only makes sense as part of a network
§ Multiple participants with relative autonomy
§ A successful blockchain requires collaboration
between these participants
§ A good network ensures each participant is free to
choose and change vendors, avoiding lock-in
§ Build on open standards (e.g. Linux Foundation
Hyperledger) and use industry data formats
§ IBM Blockchain Platform can be deployed
anywhere (IBM Cloud, AWS, Azure, on-prem…)
§ Who is in your business network?
§ What value does each member of
the network add?
§ Is there a mutual desire to change
practices in your industry?
§ Do you have any partners who would
be willing to collaborate with you?

8. 8
The importance of trust
§ Blockchain’s value proposition is cryptographic proof
of a set of facts shared between participants
§ A good blockchain can therefore help engender
mutual trust between participants
§ Look for single points of trust in the existing
business network
§ Blockchain can help alleviate these
§ If single points of trust are insurmountable (e.g.
through regulation or market dominance), this
might suggest a database instead
§ How do you judge the reliability of
partners in your business network?
§ How do you resolve disputes in your
business network?
§ How many sources of truth are there in
the business network?
§ How reliant are you on a single
upstream/downstream partner?

9. 9
Challenges and opportunities
§ Convening a blockchain network is hard
§ Requires industry and business network knowledge
§ Blockchain is a small part of any overall solution
§ Inertia, particularly from market leaders
§ However, the rewards are bigger than the sum of the
individual opportunities in the business network
§ Give business stakeholders a reason to act now
§ Look for competitive advantage
§ Fear of loss (e.g. from challengers) is a good motivator
§ Start small, demonstrate success and grow
§ IBM Labs can help
§ What are your competitors doing with
blockchain?
§ What is their incentive for changing
the status quo?
§ Who will lose out if their business
network became more efficient?
“50 Things That Made the Modern Economy”, Tim Harford

10. Great examples
Tried and trusted scenarios that are
perfect fits for blockchain
Integration patterns
How blockchain can help take your existing
middleware investment to the next level
The golden rules
The most important questions that will
identify a good blockchain opportunity

11. 11
Track assets across a supply chain
§ Blockchain can track the provenance of goods across
supply chains
§ Lower costs from inefficient supply chains
§ Ensure ethical sourcing of goods and help prevent
counterfeiting
§ Target recalls more effectively
§ Increased consumer confidence
§ Examples: IBM Food Trust, TradeLens, Trust Your Supplier
§ Do you know where all your raw
materials come from?
§ How do consumers know your product
is genuine?
§ How effective is your recall processing?
§ Are customers and regulators
demanding more transparency?
Suppliers Manufacturers Distributors Retailers Customers

12. 12
Digitize agreements and manual processes
§ Global trade is often burdened by manual, paper-based processes
§ Data trapped in organizational silos
§ Time-consuming, paper-based documentation
§ High levels of fraud and inconsistencies
§ Costly dispute resolution processes
§ Blockchain can manage a digital documentation trail
§ Blockchain becomes the store of proof, containing
counterparty signatures of agreement
§ Audit log of agreement, with regulator transparency
§ Zero Knowledge Proof (ZKP) removes need to reveal any
more information than necessary
§ Examples: TradeLens, Smart Dubai
§ Are you reliant on paper-based
processes?
§ How do you manage agreements
between your suppliers and customers?
§ How do you manage disputes?
Signed by
Exporter Shipper Customs /
Tax Office
Importer
Phytosanitary
Certificate
✓ ✓ ✓
Customs
declaration
✓ ✓ ✓
Certificate of
Origin
✓ ✓ ✓

13. 13
Forge trusted marketplaces
§ Blockchain provides a unique way to bring together
buyers and sellers
§ Balance resources; minimize warehousing
§ Rapidly understand what’s available
§ Allow new business models to form
§ Asset exchanges recorded on immutable ledger,
optionally using fungible tokens as a means of payment
§ Examples: Plastic Bank, Tennet
§ What markets do you wish you could reach
but overheads make it unviable?
§ Could you create a viable business model
from spare assets & capacity?
§ How good is your business at matching
supply with demand?

14. Great examples
Tried and trusted scenarios that are
perfect fits for blockchain
Integration patterns
How blockchain can help take your existing
middleware investment to the next level
The golden rules
The most important questions that will
identify a good blockchain opportunity

15. 15
The essential building blocks for
cross-organizational integration patterns
IBM MQ
• Reliably moves data within
the enterprise
• Use Advanced Message
Security to move data
across organization
boundaries
IBM Blockchain Platform
• Provides a shared view of
cross-organizational data
and processes
• Tamper-resistance helps
engender trust and removes
need for reconciliation
+

16. 16
Introducing the MQ Bridge for Blockchain
• The MQ Bridge for Blockchain provides a link from
MQ queue managers to IBM Blockchain Platform
– Part of MQ v9.1.4; requires MQ Advanced
queue managers of at least v9.0.3
– Flexible connection options allow you to fine-
tune the data that is shared
– Configure multiple bridge instances for high
availability or additional identities
App MQ Queue
Manager
IBM Blockchain
Platform
Network
MQ
Bridge for
Blockchain
{"function":functionName,
"channel":channelName,
"chaincodeName":codeName,
"args":[argument list]} BRIDGE.
REQUEST
BRIDGE.
REPLY
{"statusCode":200,
"statusType":"SUCCESS”,
"message":"OK",
"data":""}
MQI MQI
Fabric
SDK

17. 17
Hyperledger Fabric network
using IBM Blockchain Platform
MQ (or other)
network
MQ network
Basic pattern for integrated business networks
§ Is there data in any of your systems of record that could benefit your business partners?
§ How do you ensure that the information shared in your business network remains correct?
§ Where is your network’s source of truth? What happens when disputes occur?
MY BUSINESS
Shared processes
Smart contracts
Shared data
Distributed ledgers
My processes
Systems
My data
Databases
Your processes
Systems
Your data
Databases
Integrated
network
Integrated
organizations
YOUR BUSINESS

18. 18
Using MQ and blockchain to lower the costs of
audit and compliance
§ Financial and compliance data in a large organization is
spread through many divisions and geographies
§ Auditors and regulators need indelible proof of key
transactions and adherence to process
§ Collating this proof can be costly and time consuming
§ Risk and financial position often lags reality
§ Blockchain + MQ creates a high confidence audit trail
§ Tamperproof blockchain reliably updated by MQ
§ MQ provides resilient tx buffer before blockchain
§ Business owners view real-time transaction data
§ Changes compliance from passive to active
§ Can you identify your financial and risk position in real-time?
§ What is the cost of collection for audit and regulation compliance?
§ Do you gather status from multiple systems of record?
Regulator
Auditor
MQ
MQ Bridge
Blockchain
LoB/Org1
Tx1
Tx2
LoB/Org1
Tx3
Tx1
Tx2
Tx3
Finance/Org1
Tx1
Tx2
Tx3
✓ Org1
✓ Org1
✓ Org1
Org1 sign

19. 19
Using MQTT and blockchain for device integration
• Events from devices over MQTT can track provenance
of goods and components through a supply chain
– Make contracts that harness sensor information
– Perform evidence-based dispute resolution
– Provide and verify reliable receipt of goods
– Prevent disposed assets entering black market
• Bi-directional scenarios between device and
blockchain:
– Events from device trigger blockchain
transactions (“Container half-way to
destination; release 50% of payment”)
– Transactions from blockchain trigger device
actions (“Dispensing approved; unlock
medicine box”)
§ How do you detect spoiled or fraudulent assets?
§ Could evidence from devices resolve disputes more quickly?
§ Would device information provide business value to partners?
Goods
dispatched
MQTT
Goods
received
MQTT
#473 #473
Org1 sign Org2 sign
Shipment #473
✓ Dispatched
✓ Received

20. 20
Insights and action with ODM, ACE and blockchain
• Blockchain provides a corpus of data that spans the
entire business network
– Blockchain information is more reliable and
complete than any single organization’s
source of truth
– Analytics scenarios are therefore a good fit
for blockchain
• Use analytics to gain insight into the effectiveness
of the end-to-end business process, then turn those
insights into operational improvements
– Real-time insights on inventory flow
– Enable root-cause diagnosis
– More efficient supply chains and lower costs
§ Could having complete visibility of your supply chain let you make
better business decisions?
§ Do you know where the inefficiencies are in your business network?
Is there data to support that?
§ What information do you wish you had from your business partners?
Supplier Manufacturer Assembly Dealer
ODM
Blockchain
Raw material
mined
Component
built
Product
assembled
Product
sold
Raw material
minedCompone
nt builtProduct
assembledProduct
sold
Excess stock at
Dealer
Reduce order for
raw material at
Supplier

21. 21
Leverage your SAP ERP investment with blockchain and ACE
• Blockchain assets can be instantiated from SAP business objects, to
allow for sharing with partners
– More reliable data, increased trust, more efficient B2B
– Real-time inventory updates
– Always with appropriate privacy and confidentiality: choose
what to share with whom
• Method: Use shadow-ledger pattern to stage movement of shareable
SAP BO data to blockchain
1. Select small subset of ERP business objects to move to
blockchain based on partner relationships
2. Use ACE integration flows to transition assets to agreed
blockchain format
3. Blockchain becomes the point of truth for the network;
automated dispute resolution targets blockchain first
4. If asset not there, just fall back to SAP ERP
5. Scale more assets to blockchain as business allows
6. SAP retained for private ERP data or oracle-style lookups
§ How reliable is your ERP inventory?
§ Does your ERP represent a single point of trust /
single point of failure?
§ How long does it take to settle disputes with vendors?
Business
Object
Shareable
Asset
Data
Shared
Asset
SAP
ACE
Blockchain
share
extract transform
load

22. 22
Share files with partners with MQ MFT and blockchain
• A huge amount of data originates from or is stored in files
– Files provide a universal way of easily generating and
consuming data for processing
– Reliably moving file contents, bridging to other systems
of record is difficult outside of enterprise boundary
– Files can often be easily tampered with; difficult to
achieve non-repudiation when shared with partners
• MQ MFT solves the problem of reliable file transfer within an
organization; blockchain gives partners access to this data
– Bulk load of file data to prime blockchain world state
with file based data
– Transactional processing of records as they land in file
– blockchain expands scope of processing to partners
– Blockchain provides immutable log of a known state
§ What proportion of enterprise data is stored in file-based
systems of record?
§ Would sharing information from files provide mutual benefit to
your business network?
§ How reliable is file sharing outside of your enterprise? Is it
subject to tampering?
ACEFile producer MQ MFT Blockchain
Rec1
Rec2
Rec3
move split share

23. 23
Remember the
three golden rules
Be ready to spot
well known use-cases
Make blockchain real with
integration patterns
§ Business problem
§ Business network
§ Requirement for trust
§ Asset provenance
§ Digital agreements
§ Trusted marketplaces
§ MQ
§ IBM Blockchain Platform
§ App Connect Enterprise
Summary

24. Questions? Tweet us or
go to ibm.com/blockchain
@IBMBlockchain
IBM Blockchain
IBM Blockchain
Thank you

25. © Copyright IBM Corporation 2019. All rights reserved. The information contained in these
materials is provided for informational purposes only, and is provided AS IS without warranty
of any kind, express or implied. Any statement of direction represents IBM's current intent, is
subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM
logo, and other IBM products and services are trademarks of the International Business
Machines Corporation, in the United States, other countries or both. Other company, product,
or service names may be trademarks or service marks of others.