 Ond i Weithigodd yn y Jupyter, ynglyn weithi datblygonod landscape fel Brydd rôl y하세요? I'm slightly more, but not terribly many more. Okay, no, that's really good. So I won't ask you how many people have got a Bitcoin account. I certainly don't have one. The interesting thing about blockchain, and very much we heard this in the introduction, it's very much currently over-hyped, overstated, and often very confused topic. And since I've been working in the blockchain area, which is just since about last September, we've been with an IBM, we've really been taking a position of trying to make it real for business, to add business clarity to the discussion, and avoid technical gobbledygook, and really to focus on business networks, and permissioned, closed, and trusted business networks, which is, if you think about it, pretty diametrically opposite to the Bitcoin scenario. So my 10 minutes, I'm going to try and do it without hesitation, deviation or repetition, which is a bit of a joke, if any of you are familiar with that one, and I'm going to be talking about, while our points of view on blockchain, from an IBM point of view, I'm going to be talking about the benefits that accrue for the use of blockchain within a business network, and then end on three use cases, which I'll go through quickly. And again, sorry if I go through this, rattle through this, I will definitely be around and have more detailed discussions about this either at the end or offline as needed. So to understand IBM's point of view, we actually have to look at how businesses work today, and realising that businesses and governments never actually operate in isolation, they're all members of a business network, and the ownership of assets move across that business network in return for payments governed by contracts. And the assets can either be tangible, or they can be such as a house or a car, or they could be intangible such as a bond or a piece of intellectual property or a piece of digital music. But essentially, the way things operate today is each member of the business network keeps their own ledger, so they all have a separate ledger, which they update every time an asset moves into or out of their organisation. And this has been, well, it's been around since about the 13th century, I think it was invented by some monk. It's obviously well proven. However, it's pretty inefficient and it can be thrown to fraud and often results on piling cost on cost, particularly when you start putting regulators and auditors into the loop. So, if we look at a world where blockchain gets involved, now the blockchain architectures, as we heard in the introduction, gives the opportunity for the participants to share a ledger, which is updated every time a transaction occurs automatically by peer-to-peer replication. Now, this is all very well, but clearly if we have in a business network, we need to bring to bear privacy services, which makes sure that participants can only see the parts of the ledger that are relevant to them and no other parts. And also that all transactions that occur within the business network are secure, authenticated and verifiable. Our view of blockchain within a business network also includes the concept of a smart contract, which is basically the consequences of asset transfer, which is essentially encoded and executed automatically with the transaction in the blockchain. We also see that network participants must be able to agree the method of transaction validation, and because it's a closed and trusted network, this can be completely different to what we've seen emerge through the Bitcoin early examples. Now also, government oversight, compliance and audit can also co-exist in this business network, which actually makes those processes much more efficient and easier to implement. As I've mentioned earlier, blockchain is definitely very different from Bitcoin. Bitcoins clearly have been around for some time, and for those of you who are familiar, obviously we'll know that it's an anonymous cryptocurrency. The best way of looking at blockchain is like the underpinning plumbing. It's like the technology underneath Bitcoin, or you could imagine that Bitcoin's like the first use case for blockchain. But as I mentioned earlier, we're much more interested in applying this these days to business networks. So when we applied blockchain like this, we moved from a situation, as I mentioned earlier, that is inefficient, expensive, vulnerable and prone to error, to one where all the transactions are agreed and validated according to a method agreed by all the members of the business network. They can't be messed with once a transaction is committed to the blockchain. There's a digital fingerprint of the previous block in the current block, which means that you can't go back and mess with the blockchain once a transaction is committed into it. It's also final. There's a sense and agreed truth across the business network. So it eliminates things such as disputes on ownership or complexities in asset transfer. That's eliminated as a consequence of using blockchain. So the benefits that accrue are largely free-fold. First of all, this saves time of transaction. So transaction execution times can move from days to matter of minutes or almost to real time. It can also reduce costs through taking out beneficiaries and making things like audit and regulation much more simple. And it can also reduce the risk of cyber crime or cyber fraud or malicious attack in the business network. So those are the key benefits from blockchain. As I mentioned, I wanted to end with three case studies and I'm obviously going to rattle through these because of the time. I've chosen on purpose non-financial case studies because clearly, obviously the financial services sector is the early adopter of the technology without a doubt. But I think there are some really interesting use cases emerging in non-financial sector organisations. Let's start with supply chain or supply chain management. In short, cutting through that, it's basically knowing where your stuff is in the supply chain. Currently, members of the supply chain keep their own records about the assets that they transfer in and out of their organisation. Going all the way through the creation of raw materials all the way through to the consumer. This drives up cost, increases complexity and also gives you some regulatory headaches as you move forward. Now if we had a situation where every participant shared an agreed view of where the assets were across the supply chain in terms of the location and their ownership which was updated every time something changed, this would give you a much more efficient way of managing the supply chain. People would be sure where their stuff was. The whole system would be resilient to error and fraud and indeed cyber attack. So supply chain is the first interesting one. The second one is provenance in systems of value. Now complex systems such as aircraft, it's really quite difficult to track all the different components in the systems of systems that could go to provide an aircraft. So when you need to manufacture and recall due to a problem occurring it's usually quite broad. You have to recall quite a large amount of the fleet because it's so difficult to track these components and build up this chain of provenance. However, if we actually applied a blockchain to this use case we could actually make sure that all the components of the complex system were recorded on the blockchain and that there are no change of ownership or movement through the systems recorded as things change over time which could give much more efficient recalls and recalls much more down to individual subsystems and components. I mentioned aircraft but such prominent systems would also be applicable to things like high value art or jewellery or diamonds and things like that. The final use case that I'd like to go through is good evening for everyone this year. I got started, I hope you don't mind. The final use case that I'd like to go through is asset management. Now asset management is a really interesting topic and it started sometime in the 80s when there were problems with big things like oil rigs and stuff like that and organisations realised that they needed multidisciplinary non-co-located teams to efficiently manage complex assets such as an oil rig or a ship or an aircraft and the blockchain would basically give the capability of sharing all the characteristics of this asset through all the different member teams that are required to maintain that asset through its life cycle. Also this is where smart contracts could come in and that the smart contracts within the asset management blockchain could pre-encode and execute the conditions required to move the asset through its different stages in its life cycle. Now how does this result? It basically results in an improved risk posture for those people managing the asset. They can be much more sure of the information relating to the asset hence be more aggressive in their risk management techniques and also as I mentioned in the other use cases it could reduce costs and improve regulatory oversight in the business network. So those are the three use cases I'd just like to end with a few closing remarks if I may. We actually see open standards open source and open governance being very very important in blockchain fabrics and that's why we were a founder member and major code contributor to the Linux Foundation project the Hyperledger project that was announced just before Christmas. We see interoperability between blockchains as being key as we move forward and again that's why open standards comes in. The other thing to say about it is its technology is very early stage for gestation it's really really new stuff be very very sceptical about whether you've got a blockchain system going into production anytime soon. 2016 without a doubt is going to be the year of the pilot it's going to be when people do first projects, when they do business evaluations of the benefit of blockchain to learn about it to move things forward. So I think that's where we are right now I also think that cloud systems actually lend themselves very much very nicely to rapid prototyping and that's why we've put early releases of the Hyperledger code into our Bluemix cloud platform which people can just go in and play with essentially. Now we're without a doubt that blockchain will transform business and government over time we've spent a lot of time advising customers how to take the first steps towards those transformations but I think it will also help government and business work much more closely together in the future but we very strongly feel for educating oneself about blockchain gaining awareness piloting projects, more baby step projects and the time's not right for regulation yet. So right now it's all about learning and moving forward. Ladies and gentlemen those are my remarks very interested in taking any questions that you've got later thank you very much.