Today, what I'd like to talk about is um the state of Blockchain and web three adoption and enterprise that can mean quite a few things. So I, I listed some of those that might come to mind, which includes Blockchain, NFTS, a digital assets.So um this could be just digitizing and representing a document like a power of attorney. It could be artifacts in a, in a supply chain, et cetera. And then uh digital twins is often very complementary to that as well. Um A little bit about me. So I'm the founder and coo of Kleo. I've got over two decades of experience on the enterprise side. And prior to founding Kleo had worked at IBM and started the IBM Blockchain platform business there. Um And, and launched that had the executive ownership and mission for the open source as well as the commercial aspects of it. And um we started collider with funding from an, a co-founder of Ethereum. That's one of the what's called layer one protocols in the Blockchain space.

However, we are agnostic, we um run best of breed open source for enterprise. So what enterprises want to use and see value in is what we're, we're running. So, from day one, we've a little bit, just wanted to tell you a little bit about my perspective in Kaleido and then can talk about what we've been seeing in the market the last five years as Kaleido and then prior to that, prior to three years in IBM and how things have evolved.

So, we've always been from day one all about making Blockchain and digital assets radically simple for enterprise. And if you go to our website, you can get a lot of times, a lot of this seems very nebulous. So part of my goal is showing you this is so you realize, you know, you can go to a software as a service and very easily um choose LEGO building blocks and use development um frameworks and approaches that you'd use building modern apps today in the enterprise. You don't need to learn special web, three frameworks are um sort of core core constructs. You can, you can actually code to restful API S. And um you know, you'd see a lot of sort of a familiar console with a lot of analytics metrics and what you would expect in enterprise setting. And uh there's a lot of flexibility and choice across, as I mentioned, the best of breed open source that's emerged for enterprise and this is constantly evolving. People are looking for cross cloud multi protocol and um lots of flexibility and choice and the whole purpose of this is to get to be able to build solutions faster and get to where you're running them and actually able to scale these networks.

Um I did have three major points I was going to cover. But one thing I wanted to start with was just, you know, what, what is web three. So I guess in the early days this was called Blockchain. And over time people got a more sophisticated understanding of digital assets and what that could mean for enterprise as well. Um So crypto is one use case that runs on Blockchain and it's a $2 trillion use case, then there's defi and, you know, NFTS a couple dozen use cases, but underneath that, there's a whole pyramid of use cases. And again, I'm, you know, very much in the enterprise space. So looking at back office processes situations where data siloed, you want to share the data. Um So this is certainly rolls into the web three term I did include uh you know, since um it's early days of, you know, new technologies can have a lot of different perspectives. So just the Wikipedia article. So a lot, you know, what, what does Wikipedia say? And the idea that it's really the next iteration of the world wide Web and based on Blockchain using tokens, token based economics and decentralization. But, you know, I guess one caution, at least when you're looking at Web three is a broader promise.

It's sort of like the early days of the internet, there could be a lot of buzzwords out there. You know, people are repurposing a lot of what's happened, maybe a RVR Gaming Metaverse and, and that's all been rolled up as well. Um, so, and then you have to start somewhere. These are journeys, you crawl, walk, run. So a lot of people who, um, really believe in moving towards, um, more autonomous systems where there's trust and transparency, different, uh, sense, different types of ownership that we have individually of our data or how we interact with others. You know, we're on the early steps of that particular journey. So a lot of these web three projects, even in what's called the public space, that's not necessarily enterprise, you know, they start in a non, they start in a centralized way and then they have a road map to decentralization. So just a couple of thoughts on that topic there. No, nothing controversial, I hope.

Um, so what are takeaways for enterprise, uh, with that, with that said, so looking at what we've all been through in the last, um, 2.5 years with COVID, you know, it was really a wake up call for enterprise it. So the term digital transformation had been around, you know, prior five or 10 years, I think people were starting to get comfortable with moving to the cloud. Although, you know, wholesale, that wasn't something that you saw, you know, core workload, um being touched and migrated over.

And what happened with COVID, we've seen across all industries, including some of the most conservative ones and ones who are slower to adopt new technologies were really forced overnight to accelerate digital transformation road maps by, by over a decade. So that we're really seeing that as the theme of the decade, even, even prior to COVID. You know, there was a knowledge that when you have multiple parties coming together each with their own siloed systems and sources of data that these multiparty business processes or systems um really have a lot of issues due to the lack of transparency and lack of trust. So, um you know, there's the time there's risk, there's visibility inefficiency, fraud and disputes and COVID as an example, I'm using here really highlighted a lot of those issues and we're still suffering from a lot of supply chain disruption today and the after effects of um some of what's happening in the economy.

So di digital transformation is how companies have been trying to move out of this situation towards the future. Um If you look in, you know, the last few decades, there's been a lot of innovation at the front office. So mobile, what's been happening, you know, with web apps, um business process management, we saw some of that move into document management and robotic process automation, um API economy. But for the first time now with Blockchain, we're seeing a technology that can go all the way back into the system of record and really get to where you have a shared view of the data outside of your company, you know, with other people who are collaborators, partners or even competitors in some case.

So a trusted common view of the data and then common bus business application and logic. Um This really helps simplify these mission critical back office processes where you have a lot of B to B exchange. So this is a very classic type of enterprise use case for Blockchain. There's certainly some cases where one individual company and it might be a conglomerate or they're large enough that they have a lot of internal inefficiencies and we're moving towards tokenization, um fractional, you know, with tokenization as well or, or other aspects of digital assets may also provide enough benefits um for them to launch a particular solution.

And you can look at examples like NFTS A as part of that. But taking the broader ecosystem lens where you're really looking at business networks, you know, even prior to, again, prior to COVID. Um and, and to Blockchain as a popular technology, we saw consultants like mckenzie, looking ahead and saying, you know, these industry, ecosystems are starting to emerge where what's really important to the participants in that industry is the health of the ecosystem and it becomes um a situation where the health of the ecosystem is really crossing traditional industry boundaries.

And you're getting new types of products coming together and this is where the business networks will hold the real value. However, when you're um taking this approach, there are various challenges you could run into. There's technical with um you know, Blockchain requires a lot of new programming languages frameworks, P to P networks. Um Just from a skills perspective, it's difficult to find the right resources in enterprise then from an IT process or shared it really, you know, outside of your data center, managing and coping with a single copy of data and business logic across partners and, and sometimes competitors and then the whole business aspects and governance of that matchmaking coming together and still fitting within the constraints an industry might have on the regulatory and compliance or even auditing side.

So you find there's this industry, legal process and governance expertise, you need to understand people's existing systems and sources of data, combine that with the leading edge tech and now you're getting these new digital business ecosystems. So digital transformation is the theme of the decade.

So point number two, I wanted to make was these solutions require far more than a Blockchain. Um The Blockchain itself and like what sometimes people call a layer one protocols where there's a lot of um I guess a lot of enthusiasm and exuberance, especially when there's a token sometimes involved with some of these that's appreciating and there's a speculative value that's really probably 5% of the total solution, you know, running a Blockchain node.

And what that offers is the beating heart of what's different and it of and you're getting the tokenization as well, which um can be used in enterprise Blockchain solutions. Um you know, to solve a lot of really interesting problems, but you really need a full stack of technologies in these solutions. So and this is, you know, looking at a typical solution, there might be more than 40 components. You have the Blockchain, which is the beating heart, the ledger and smart contracts, but a application layer apps and middleware and then there's other off chain technologies like oracles or different types of file storage, file exchange that becomes very important in these solutions.

So if you look at digital transformation for a modern business network, you can find these uh more traditional view of some of these layers. So starting at the bottom, you could see that you know, the data layer both on and off chain, it becomes very important to look at what exactly should be on chain and what should be kept off chain. So you think about the right to be forgotten in GDPR and a lot of countries and G OS across the world have their own privacy regulations. You look at performance and scale of the network. In the early days. I think people put wanted to put everything on chain and now a lot of times uh uh you know, good pattern is putting a hash of the item on the chain and then you really store the information off chain. And you're looking when you look at very loaded um dense sort of workloads and files like NFTS, for example, creative assets that makes even more sense. So you have um data bus is part of that Blockchain network, which is the beating heart, the transactions that will happen and then includes getting uh information onto the block Blockchain with API gateways, getting events coming out of that, you have middleware layers.

So before these parties are gonna transact, they have to communicate, you know, before, during after when the transaction happens. So a lot of these are traditional technologies but reinvented for decentralized networks. And then really looking at the application level, how does um how can you use tokens to align incentives and large sort of enterprise um shared data type scenarios? How can you fractionalized ownership? How can you get new types of business models and that's secured with the cryptography?

And then if you look at, you know, I get a different slice, there's certain the collaboration view traditional enterprise integration and then there's a biz ops and DEV ops as well for these solutions. So there really a lot to think about. So I guess reinforcing the point that the choice of which Blockchain protocol or running a node is just a small part of the total, the total solution for an enterprise. And if you look at the overall data exchange pattern, when you have multiple parties involved, you have, um certainly there's data that's being broadcast, there's a shared data asset ledger, there's tokenization happening. But between these, you know, members and here we have five represented and number one and two are blown up. You know, there might be private data exchange if there's certain pricing or agreements. And then you have um you know, the private ledger associated with that, they have their own business apps and tasks and they integrate back to their own core systems and sources of data as I mentioned previously. So when you're actually building an enterprise app, um decentralized app in this scenario, you know, you can, there's a lot of considerations, you have to um look at all of, you know, the sort of features that you're gonna need, get agreement between the members and implement that and everyone ends up running their own stack of the software.

So they would need to deploy that and they need to build their own business logic and integrations. So I think another option we found or pattern in the industry is really leveraging open source. And um one exciting community called Hyper Ledger Firefly helps you be able to bridge all of these on and off chain layers and standardize across the stacks for some of the individual members. So I think one of the learnings in terms of looking at building a Blockchain is a lot more than just running a node is leveraging open source communities like these which are Apache two codebase. And under the Linux foundation um Hyper ledger is um a community that has a number of code bases for enterprise Blockchain. And Firefly is one of those where you're getting a super node with more of these capabilities to very quickly build solutions. And really touching upon a lot of the areas we looked in the original diagram from the apps, the data flows digital assets, some of the core capabilities as well as tools and security and really providing abstraction layer above the particular um Blockchain that you might be using.

So the final point I wanted to make, although I'll have some bonus takeaways as well is that in the early years starting with 2015, I guess for enterprise Blockchain, um there was a lot of experimentation, some of which led to proof of concepts and pilots and there was a staged approach through that journey.

Nowadays, people really are and in part exacerbated by, you know, macroeconomic conditions. The gap um you know, is we're really looking at getting to productive value in business outcomes. So part of not reinventing plumbing layers is to focus on business value and be able to show that to your stakeholders. There's still a lot of confusion sometimes for what Blockchain is, what do digital assets provide. So being able to get to where there's the the app, the decentralized app and people are actually transacting and working together is a way to get all of the business and technical stakeholders aligned. Um The first generation I mentioned, there's been a couple of generations of Blockchain approaches.

Uh you know, the early years, there was a lot of um project, there were a lot of projects that were happening, there were custom lines of code tens of millions of dollars spent because it was very consulting. L um now, you know, more open source communities have emerged, more products and sort of software to service approaches have emerged as well. This makes pricing transparent, it provides lego blocks and you can really build much more quickly. Um you know, enterprises from the early days were always looking for a unique set of requirements. I think in the early days, there was more of a debate between what they call public or private blockchains. Now, we really see much more of a hybrid approach where um people are interested in being able to connect to or at least pin to um public blockchains, but they also want to be able to transact with predictable fees and costs with the security they're expecting um to be tamper proof and secure, um have the appropriate level of ownership of their apps and systems and um be able to have that single, single, the single shared source of truth, but still have auditable identity and ownership.

Um As I mentioned, you know, there's a traditional curve going from POC to pilot production. So there's a lot of best practices that have emerged on how to do that as well in a cost efficient manner and do that very timely. So, as a result, we do see a lot of global leaders who've moved forward automating networks and I'll talk about some examples across different industries. Um One commonality we've seen regardless if it's in agriculture versus uh health care insurance, banking, et cetera is that, you know, people have their own set of regulations and standards, uh compliance, they need to uh to um really check off and, and be able to work with as if this were any other enterprise project.

So things like IO 27 K and so two type two certification, things like looking at support and being able to um provide solutions that have high availability, disaster recovery, business continuity um run in hy hybrid deployments, cross cloud, integrate with their existing systems um and provide, you know, link into their LDA systems.

You know, people have spent millions of dollars on those. So when an employee off boards, they're off boarded to the Blockchain based apps, the same way that they would be off boarded to any other apps. Um It's an example and we've certainly seen people are getting 22 main types of business benefits with Blockchain and digital assets. Um There's the evolution of existing process so better, faster, cheaper results and then there's also the revolution of you, there's a business process that may is paper based and now they're digitizing, they're able to change the way people work, they're able to solve industry problems that haven't been able to have been solved under the, the existing systems today.

So lots of business benefits and outcomes that we're getting. Um you know, one I'll feature here and I actually have a slide on it later too, but, you know, doing engaging with customers in a different way. So having, you know, looking at digital ad tech where there's a lot of fraud and waste. And we heard from a, a innovation exec one of these large media firms that for every dollar someone spends in advertising, they only get 20 cents of value. So there's a lot of intermediaries um in these spaces and there's a lot of fraud and waste. So T Mobile has T Mobile, Tuesdays and they worked with Kroger and this actually was three years ago before the whole NFT boom that they had a, a really good coupon. So $3 off for any $10 you spend at Kroger, you just had to put your phone number in at the cash register on your phone and pe they had a 65% engagement rate. Um, half a million people downloaded the coupon. And um you know, those people didn't realize it was a crypto wallet and NFTNFT was providing the uniqueness that made Kroger be able to give better coupons because they're eliminating a lot of this fraud and waste. So just, just a deep dive on one of the examples there. Um People enterprise certainly has been able to accelerate what they're doing by really getting that easy button for Blockchain. So just standard restful API S accelerate um development and deployment, have a lot of built in monitoring.

Um People can make sure the smart contract they think is running this. Um the platform really is there, they could drill into the byte code for every transaction and then just leverage a lot of rich plug and play services. So I think the bonus lessons I alluded to earlier is that you and I I mentioned this with the web three definition, decentralization sort of as a as a construct, both um technical and on the business side, you know, can be a journey. So a lot of uh there's been a lot of talk in the last year in the web three space about dow so decentralized autonomous organizations, people really like the idea of um really having a more smart contracts, making decisions and and helping um provide more, more fairness and auto autonomy.

But often these foundations do start in a certain place and then they're evolving over time and the tools are evolving there as well. I think in enterprise decentralization is really all about the the voting and the signatures and having different parties being able to, you know, through the governance, be able to vote and um do that in a fair way that can't be gamed in the system. And that's very different than in the public or crypto space where, you know, decentralization achieved through um some things that some of our ESG friends are not as happy about with proof of work and solving hard puzzles. The governance is the hard part uh member onboarding.

As these networks uh grow, you have to consider integrating to the existing system. So if you're in the insurance industry, uh a system like guidewire is pretty important for claims. So one of our member networks running on us that has a first notice of loss with a car accident um occurrence had to think about integrating to, to guidewire and offering that as part of the overall solution so that members could be able to on board this and integrate with their existing systems.

And then as I've mentioned a few times already, you know, certainly over the years digital assets and tokens have emerged as a as a really important or sometimes people like to call it a kill killer use case in enterprise deployment. So can give a couple examples of that as we as we go through um just double checking, make sure that the screen looks. OK? So um there's been a lot of interest on the central bank, digital currency side. So this was from a um I think from about 2016 IMF and World Bank got pretty active. We've worked with banks in Australia, the Federal Reserve Bank N A and Commonwealth Bank as well and some other major players across the world. Um So this is an exciting space as we're looking at what digital currencies could do and then doing that on a global scale. And what does it mean for all of these um governments and private sector actors to work together? I mentioned in the enterprise space, there's some really interesting use cases around tokens. So here you have some very large payers and providers and they came together to solve a problem around data that's actually in the public domain. So this is an access to care issue.

So they found that it was costing them $2.1 billion a year. They all individually have call centers and every 90 days they need to call the same doctor's offices to make sure they have the right address. The right phone number. Are they in network? Are they taking new patients? And the Center for Medicaid Medicare Services actually did an a you know, does an audit of this data and said that 52% of it is incorrect even with all of these parties calling these offices every 90 days and there's a 75% overlap. So they came together and said, let's use Blockchain as a way to get to share truth and the token mechanism here that they use it basically sort of like an enterprise dow, I'd mentioned Daws earlier, but um and it converts to fiat. So it's more almost like a Stablecoin in that sense that you get the tokens and you're contrib, when you're contributing, updating, record, still, records, contributing data, you're paid for that. If someone else comes to the system and wants to subscribe to the data, then they have to pay for it. So you're really avoiding the tragedy and comments that could happen when you get pooled resources or shared data and you're encouraging and aligning incentives and for some of these providers, the amount of money they make by contributing data actually covers more than covers the cost of their participation in the network.

So it's, it's really a win win. Um uh Another example, completely different space agriculture, you had 80% of the world's grain supply chain leaders come together a decade ago and said as an industry, we need to help do a better job of driving out some of the common costs we have at the supply chain level and financing levels.

Um Of course, since some of these, you know, are are competing in their respective spaces, they really needed a technology where they could do this um in a transparent but also trusted way. So they found that with Blockchain, they started with about um about 10 participants and now have 50 members on this. And, and this is part of that very large digiti digitization push. Um as you know, in this particular, you know, sector, you know, and you go to the ports and shipping the grains, everything is very paper based. So it's a big step forward for them. I did mention um one example of using NFTS for ad tech. Certainly nfts um have been used for uh digital collectibles, you know, campaigns for like deadpool and goose bumps. And this was already 34 years ago that starting to shift from, hey, instead of giving you a paper poster, we're gonna give you the first Marvel Nfts um the been out there in the world. So a lot of exciting um projects there. And again, this is more in the BB to C space, but there is enterprises and media and entertainment and sports, et cetera where this is a really important route to market an engagement mechanism in some other areas of the world. This is actually based in Australia.

They were looking at, you know, how can we get funds from private donors better allocated to meet the un sustainability goals? And so HS BC worked with um W uh World Wildlife Foundation and others to put together an impact to platform, to help um provide those assurances and curate projects where people could um um private donors could be able to feel more comfortable about donating towards causes that are important to them.

But knowing that these were vetted and curated and had the trust there, there's lots of opportunities for Ed Tech. And this could be um in this case, a professional setting just with yearly credentialing um obligations, but certainly in the education space as well as people are looking at more micro credentialing and putting together their own resumes as they, they take more virtual classes.

And the model for education is changing ESG climate, carbon credit, climate warehouse assets. There's been a lot of issues um since the Kyoto Protocol and Paris Accord with double counting double spending of these assets when they're maintained in spreadsheets or more basic formats.

And you have the World Bank putting hundreds of millions of dollars towards pay for performance programs and the outcome we want is a cleaner environment. So really the account and trust and traceability you can have with Blockchain is has been um being used across the sector.

You know, we work with governments that put their whole renewable program on Blockchain stock markets who are looking at creating new asset class classes and the way you can represent those and then fractionalized them as those lots are being sold, creating that market for these assets.

Um and the trust and transparency to make sure that the provenance can be attested to. Um the health care space disease surveillance was um one of one of the earlier use cases in financial services, financial inclusion. And they've actually been running this in production for four years now and have moved to do things like real time grow settlement, stablecoins as well. But um their original solution, the amount of money that someone um who was working abroad was able to to save their family was represented 1 to 2 weeks worth of food. According to the um chairman of the one of the banks here in this um solution, there were hundreds of rural banks involved. Supply chain transparency, traceability is a very big use case. There's lots of examples here is makeup. It could be, I have another one I think of tuna diamonds. Um You know, anything that has a value chain and that could be moved along can um improve with the uh traceability and provenance with Blockchain. So I think there's lots of case studies out there. So I encourage you to look at those. And with that, I will um I think I'll wrap up the presentation but I would, I did wanna leave uh room for some questions. So I've, I've left some time for that.

Let me just go back to more, more general screen here. Um I know with the hop in it's a little harder to interact um which has some good and bad sides to it. But um I did wanna pa you know, just stop here and provide an opportunity for any questions from the audience. And while we're doing that, um I did want to just highlight, I had a poll if anyone's interested in responding to that to see if you're working on any Blockchain digital assets or web three solutions today. Yes, no interested in getting started or have worked on presentations um previously uh on solutions previously. So, ok, I see a couple questions. I was looking in the wrong place. I was looking in the Q and A, this is in the chat. So, um thanks Sarah. And you're mentioning um Guidewire has gone through tons of changes recently. So, yeah, I can imagine. Um And I'd love, love to hear more about that. I guess I've seen more from the integrating with guidewire side, which is the external parties who are working with guidewire versus the other way around. In terms of the question from Noreen uh from a cleo perspective, we do work with all the major enterprise Blockchain protocols.

So there is um Ethereum, various flavors of Ethereum. So that is Go Ethereum quorum which JP Morgan initially had started that code base. And then there's one called Hyper Ledger beu that's in the hyper Ledger community. There's R three, Korda that was a R three is a banking consortium. They came together about six years ago, people put money in together and there is an open source project called Korda and then they also have an enterprise um more of an on prem software model for that as well. So K has been uh one that the financial services industry had been working with. Um And then the third one is Hyper Ledger fabric So that's, that was one that was initially an IBM code based donation and then became a much broader community. So those are three of the main, the big three in the enterprise space from a layer one or that core where you know, transaction layer and then there's Firefly, which is also part of the hyper ledger community. I do think uh Hyper Ledger is a good community. It's being part of the Linux Foundation. They have very strong governance.

There's lots of opportunities for developers to get involved, for companies to get involved and have a voice and um by having the code base there, you know, as a company, you'd really like to know this code base is going to have longevity, it has activity, things are being done out in the open, it's transparent.

Um So Linux Foundation really checks all those boxes and, and especially has very, has the right sort of licensing models for open source that if you're using it or building on it, that is an enterprise, your IP is protected. So it becomes a net benefit for you versus um maybe a potential risk which could happen with um some types of open source models which are not as friendly. So hopefully Noreen, thanks for asking the question. Um And then thanks Kimberly. Um I'm glad that you guys appreciated hearing the use cases for Blockchain. Um Please feel free to reach out to me. I'm pretty easy to find on linkedin, just Sophia at uh Sophia Lopez. And then if I can get to, I think I had my email here as well. So I know it's still, although there's a lot of activity and some industries and companies are really doing quite a bit to move forward. It's still early days of what we consider, you know, once in a generation shift of these systems, as people move to the cloud, they're digitally transforming and they're creating whole new platforms at industry level of how they work and, and a lot of really new exciting business models.

I know we've heard a lot about NFT last year and metaverse things like, you know, digital twins and then digital assets more broadly are really gonna make a difference across all industries. So we're certainly you're really good timing to get involved and to learn more. And we, you know, if you come to our website, we've got a ton of enterprise content use cases and that perspective, if you read more broadly, there's across the whole spectrum, I could get maybe a little dizzy going back and forth. Sometimes there's, there's a lot, a lot of big futurists and visionaries who are looking way down the road. And I think, you know, from an enterprise perspective, you need to, I, I've always believed you need to meet people where they are and then start doing, going down the journey together. So I think I've only got a minute or two left. So, um last, last call, if there's any other questions or comments and I could, um, I guess I could put my, I'll put my email address here and yeah, I encourage you to link into me as well if there's anything I could help you guys with. So I'll give you my, I do know my twitter handle by heart, but the linkedin has like a, a strange set of numbers after my name, which I haven't memorized, but I should be pretty easy to find if you type in Sophia Lopez and Klia. So.

Well, thanks, uh, for attending today and, uh, I always enjoy doing these sorts of talks. I hope you have a good, a good rest of your conference. And thanks everybody.