IBM Systems Magazine, Power Systems - December 2016 - 9

of Things, the containers could be
scanned for location and to prevent tampering before they arrive
at border control, which registers
them before the delivery company
accepts the package and brings it
over to the manufacturer. This way,
everyone on the blockchain agrees
that things have happened legitimately. All of the conditions were
true. All of the members agree. The
event is recorded indelibly on the
blockchain and is immutable once
it's there.
ISM: How complex is establishing a blockchain network?
GC: Overall, this requires a lot
of things to happen. Agencies
must get together with members
of their supply chain and maybe
even regulators; this could take
some time. But compliance is a
good starting point and doesn't
require too many companies to
be involved.
A multinational company, such
as IBM, that operates in geographies around the world reports
at the end of the quarter. It must
comply on how this is reported,
and IBM wants to make sure our
recording practices are done
correctly and keep in mind that
compliance agents can also get
visibility to how we're reporting.
To do so, we can set up a shared
ledger across our company
to show how we're reporting.
That's something our CFO could
do within the course of a year
without having to get a number
of our various geographies to
participate.
Blockchains are being used in
parallel with an existing business process to enrich it and add
some aspect of risk mitigation or
dispute resolution. Maybe your
current business process has
some holes that a blockchain
could start filling. It can be done
more humbly versus ripping and
replacing a system that has been

VIDEO EXTRA
See how blockchain works in the diamond industry,
which has been plagued by fraud, theft and
controversy: bit.ly/2dDXISR

in place for 30 years. So, we think
interesting starting points exist.

feel for best practices and building
blockchain applications.

ISM: From IBM's perspective,
is this still in trial phase
or being rolled out in
some situations?
GC: The Japanese Stock Exchange
(JPX) announced it's doing a set
of first projects with us. Clients are
trying to avoid the use of "proof of
concept" and are using terms like
"first project" because they don't
want to be seen as laggers. That
kind of shows the attitude people
are coming into this with.
In the announcements, JPX
talks about the use case of lowliquidity, post-trade settlement,
and it's something we're working
with them on with some of the
new blockchain services we just
announced on the IBM cloud.

ISM: What types of technologies do you see this replacing?
GC: Look at multiparty interactions or transactions and how they
work today when one company
sends a message to another: one
company consults its systems of
record (SoRs) and back-end system
and comes up with an answer it
sends to the other company. Now
both companies are keeping their
view of the truth in their own SoRs
and sending messages back and
forth to synchronize or to rectify,
whatever the case.
That's for two companies, but
when you get three, four, five
companies involved across a
supply chain, things get tricky
with technologies, such as EDI.
But if everyone is working on the
same, shared ledger, it's not about
interchange-it's about everyone
having the same SoR. Everyone
has a copy of the ledger, so once
it's put into place, you have
permission to access and see it.
There's no electronic interchange.
Systems like EDI will, over time, be
less needed because companies
will be working peer-to-peer.

ISM: Does IBM Bluemix*
fit into this?
GC: This is exactly where Bluemix
fits in. We have the first IBM
blockchain cloud services layer,
and this one is a DevOps service,
helping developers quickly set up
a blockchain in the sandbox that
will allow them to run sample
programs so they can quickly get a

ibmsystemsmag.com DECEMBER 2016 // 9


http://www.bit.ly/2dDXISR http://www.ibmsystemsmag.com

IBM Systems Magazine, Power Systems - December 2016

Table of Contents for the Digital Edition of IBM Systems Magazine, Power Systems - December 2016

Table of Contents
Editor's Desk: A winning ecosystem
IBM Perspective: Bringing your data platform into the digital age
Techbits: Real-Time Flu Tracker
Trends: Communications Chain: Blockchain's potential extends beyond the financial industry
Partner PoV: Stop Virtual Server Sprawl: Cleaning up VMs saves IT resources
Cover Story: Embrace the Open Ecosystem: How open source benefits Power Systems
Feature: Shifting Gears: Enterprise application developers drive toward open-source databases
Women in Tech: Taking a Seat at the IT Table: Women meet challenges, savor successes in the IT field
Infographic: IBM is tapping blockchain for a more transparent, authentic and trustworthy global food supply chain
Currents: How to Sell Your IT Solution: Tips for techies on showing the value of their services
IT Today: Leveraging Cloud: The benefits of building hybrid cloud into your existing infastructure
Solutions: Job Log Explorer, Cilasoft; SafeNet/i V10.39, Kisco Inc.
Snapshot: Andy Lin
Reference Point - Global Events, Education, Resources for Power Systems
2016 Power Systems Solution Edition Product Index
IBM Systems Magazine, Power Systems - December 2016 - Intro
IBM Systems Magazine, Power Systems - December 2016 - Cover1
IBM Systems Magazine, Power Systems - December 2016 - Cover2
IBM Systems Magazine, Power Systems - December 2016 - 1
IBM Systems Magazine, Power Systems - December 2016 - Table of Contents
IBM Systems Magazine, Power Systems - December 2016 - 3
IBM Systems Magazine, Power Systems - December 2016 - Editor's Desk: A winning ecosystem
IBM Systems Magazine, Power Systems - December 2016 - IBM Perspective: Bringing your data platform into the digital age
IBM Systems Magazine, Power Systems - December 2016 - Techbits: Real-Time Flu Tracker
IBM Systems Magazine, Power Systems - December 2016 - Trends: Communications Chain: Blockchain's potential extends beyond the financial industry
IBM Systems Magazine, Power Systems - December 2016 - 8
IBM Systems Magazine, Power Systems - December 2016 - 9
IBM Systems Magazine, Power Systems - December 2016 - Partner PoV: Stop Virtual Server Sprawl: Cleaning up VMs saves IT resources
IBM Systems Magazine, Power Systems - December 2016 - 11
IBM Systems Magazine, Power Systems - December 2016 - Cover Story: Embrace the Open Ecosystem: How open source benefits Power Systems
IBM Systems Magazine, Power Systems - December 2016 - 13
IBM Systems Magazine, Power Systems - December 2016 - 14
IBM Systems Magazine, Power Systems - December 2016 - 15
IBM Systems Magazine, Power Systems - December 2016 - Feature: Shifting Gears: Enterprise application developers drive toward open-source databases
IBM Systems Magazine, Power Systems - December 2016 - 17
IBM Systems Magazine, Power Systems - December 2016 - 18
IBM Systems Magazine, Power Systems - December 2016 - 19
IBM Systems Magazine, Power Systems - December 2016 - Women in Tech: Taking a Seat at the IT Table: Women meet challenges, savor successes in the IT field
IBM Systems Magazine, Power Systems - December 2016 - 21
IBM Systems Magazine, Power Systems - December 2016 - 22
IBM Systems Magazine, Power Systems - December 2016 - 23
IBM Systems Magazine, Power Systems - December 2016 - 24
IBM Systems Magazine, Power Systems - December 2016 - Infographic: IBM is tapping blockchain for a more transparent, authentic and trustworthy global food supply chain
IBM Systems Magazine, Power Systems - December 2016 - Currents: How to Sell Your IT Solution: Tips for techies on showing the value of their services
IBM Systems Magazine, Power Systems - December 2016 - 27
IBM Systems Magazine, Power Systems - December 2016 - IT Today: Leveraging Cloud: The benefits of building hybrid cloud into your existing infastructure
IBM Systems Magazine, Power Systems - December 2016 - 29
IBM Systems Magazine, Power Systems - December 2016 - 30
IBM Systems Magazine, Power Systems - December 2016 - Solutions: Job Log Explorer, Cilasoft; SafeNet/i V10.39, Kisco Inc.
IBM Systems Magazine, Power Systems - December 2016 - Snapshot: Andy Lin
IBM Systems Magazine, Power Systems - December 2016 - Cover3
IBM Systems Magazine, Power Systems - December 2016 - Cover4
IBM Systems Magazine, Power Systems - December 2016 - Reference Point - Global Events, Education, Resources for Power Systems
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