Blockchain for Business

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

“Much has been written about blockchain in the past few years: what it is and what it is not (at various levels of detail), as well as the technology’s long-term strategic value for companies, industries, and economies. However, what we’ve been missing is a practical, operational, ‘how to’ set of steps for creating, implementing, and operating a blockchain-based solution. This book aims to fill that gap. It’s an invaluable tool for anyone ready to take the plunge and start taking advantage of this remarkable technology. “Most technologies can be implemented one business at a time. Not so with blockchain. Blockchain is particularly valuable when applied to a collection of companies working closely together as a business ecosystem, such as a supply chain. Blockchain for Business goes into great detail about what it takes to organize and manage such an ecosystem, including the technical and business models that in the end drive the decisions about whether to join or not, and the governance necessary for a smooth, efficient operations. It also nicely explains the necessary technical expertise and management roles needed to successfully create and operate blockchain frameworks and applications. “Blockchain for Business is an invaluable tool for anyone ready to take the plunge and start taking advantage of this remarkable technology.”—Irving Wladawsky-Berger, Research Affiliate, MIT; Columnist, WSJ CIO Journal; VP Emeritus, IBM  “Jai, Jerry, and Nitin have written the guidebook to address the critical knowledge gap that exists between the hype of blockchain and cryptocurrencies and the pragmatic utilization of blockchain technology for transforming businesses. Blockchain for Business leverages their firsthand insights and provides a practical approach for business and technical leaders to leverage a proven methodology to drive successful blockchain projects that deliver trust and transparency for all participants.”—Marie Wieck, General Manager, IBM Blockchain  “Understand how to capture the power of the trust machine. This book contains a wealth of resources and tools for those looking to apply blockchain solutions in a business environment. A must-read for enterprise executives.”—Perianne Boring, Founder and President, Chamber of Digital Commerce  “Jai, Jerry, and Nitin nailed it! Blockchain for Business addresses the critical question business leaders are attempting to answer: How does my business derive real, measurable value from blockchain? This is a practical guidebook for both the business and technology leader to help identify business value from blockchain technology in the form of new growth opportunities, sustainable competitive advantage, time savings, cost reductions, and risk mitigation—turning blockchain into business results!”—D. Keith Pigues, CEO and Founder, Luminas Strategy, Coauthor Winning with Customers: A Playbook for B2B  “Blockchain for Business is a must-read for executives looking to define blockchain’s potential to transform business processes. Jerry, Jai, and Nitin have comprehensively described the key steps business leaders should take to identify the right scope, select the best technology, and establish an appropriate business model and governance structure.”—Arvind Krishna, SVP, Hybrid Cloud and Director of IBM Research

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