Understanding Blockchain

The webinar will start shortly…
Thanks for joining us today!

Tell us where you’re dialing in from!

Hello!
Ritesh Patel
EVP, Chief Digital Officer
Ogilvy CommonHealth Worldwide
Helen Disney
Founder
Unblocked
Thomas Crampton
Global Managing Director
Social@Ogilvy

A quick introduction by our guest - Unblocked:
An overview of Unblocked:
A hub for Blockchain events, education and information.
Sector-specific events designed to introduce C-level professionals to this cutting-edge technology,
demonstrating concrete examples of how their companies can take it forward.
Building a growing business community interested in Blockchain events, information, interviews,
news and views

Blockchain: “an operating system for the planet”?
Blockchain is the technology which allows the digital currency bitcoin to function – we can’t
understand blockchain without bitcoin
BUT blockchain technology is much more than simply a financial technology
Blockchain technology has special properties which make it very useful
Blockchain solutions can be therefore be used to transform a range of industries including
healthcare

What is Bitcoin – Part 1?
You may know Bitcoin as a virtual or digital currency (properly known as a cryptocurrency)
”a techno tour de force." - Bill Gates, Founder of Microsoft
“It's money 2.0” - Chamath Palihapitiya, Former head of AOL
“The TCP/IP of money" - Paul Buchheit, Creator of Gmail
“The first [encrypted money] that has the potential to do something like change the world." - Peter
Thiel, Co-Founder of Paypal
BUT did you know that Bitcoin is also a giant computing network?

What is Bitcoin – Part 2?
Did you know that the Bitcoin network is the largest distributed computing project in the world –
more powerful than Google? All transactions on the Bitcoin network are recorded on the
Blockchain = the ‘World Wide Ledger’
“The blockchain is a truly open, distributed, global platform that fundamentally changes what we
can do online, how we do it, and who can participate”
(Don Tapscott, author, Blockchain Revolution)

Bitcoin: Advantages and Disadvantages
Disadvantages
At $10B, Market cap is very small and so difficult for
institutional investors to take meaningful positions.
With the absence of any sovereign Government
backing, Bitcoin’s value is backed by public’s
confidence in its security and value, making it
highly volatile.
State-by-state licensing regime makes investing in
Bitcoin extremely costly.
Risk of another currency becoming more popular,
for example Ethereum
Advantages
Anyone can add bitcoin to their portfolio, not just
qualified investors.
Investors can invest without paying hefty fees typically
charged by VCs.
Bitcoin is highly liquid vs VC investments.
Ultimately the fact that it’s cap will be reached by
2140 suggests that it has deflationary tendencies,
which will lead to higher value as supply reduces.

Bitcoin blockchain protocol
Jim owes Alice
money for lunch. He
installs an app on his
smartphone to create
a new Bitcoin wallet.
A wallet app is like a
mobile banking app
and a wallet is like a
bank account.
To pay her, he needs
two pieces of
information:
his private key and
her public key.
Jim gets Alice’s public
key by scanning a QR
code from her phone,
or by having her email
him the payment
address, a string of
seemingly random
numbers and letters.*
The app alerts Bitcoin
‘miners’ around the
world of the
impending
transaction. ‘Miners’
provide transaction
verification services in
exchange for bitcoin.
1
All pending
transactions in the
past 10 minutes are
grouped for
verification. The
miners verify that Jim
has enough bitcoins
to make the payment
by completing
complex
cryptographic
computations.
Once verified, the
new block joins the
prior block so a chain
is made – the
blockchain. This
provides an
immutable and
permanent audit trail
to prove occurrence
and timing of
transactions.
All the transactions in
the block are now
fulfilled and Alice
gets paid.
22 3 4 5 6 7
Transaction Requested Transaction Authorized Transaction Executed & Recorded

Think of blockchain as a transformative way to establish trust, transparency, and efficiency within P2P
systems
A continually updated, network
hosted ‘database’ of all
transactions on a blockchain.
Comprised of blocks of
transactions (with metadata)
chained together by
cryptography
Digital Ledger
Programmed into each
blockchain protocol, and
responsible for verifying and
updating transactions on the
network’s digital ledger; not
necessary in private
blockchains
Consensus Mechanism
The good transacted on a
blockchain; cryptocurrency
provided the initial proof of
concept, with the industry now
looking to “color tokens” – i.e.
any other form of digital asset
Digital Asset
Computing nodes with access
to the blockchain, able to
manipulate the ledger and
view past transactions; may be
pre-approved or verified by a
consensus mechanism
Network Participants
Blockchain is comprised of 4 basic components

Two parts to Blockchain
PUBLIC - The Bitcoin Blockchain - open source, highly secure, ‘permissionless’ ie anyone can be
part of it
PRIVATE – ‘Bespoke’ blockchains – closed, require permission to access (‘permissioned’), less
secure

Normal Transaction
Note the no. of participants for a single
transaction.
Intermediaries involved: 6
Intermediaries are needed for trust.
Security: Can be compromised

Blockchain Transaction
Intermediaries involved: 2
A knows B’s computer address (or B’s
public key)
A encrypts the message
– Timestamp + B’s Public Key
B decrypts it using his own private key

Blockchain: to date span a wide variety of industries and use-cases
DISTRIBUTED
LEDGER

Financial Services
Low cost cross-border frictionless
payments, low transaction risk, near
instant settlement, easy to use no third
party.
Example: Coinc.ph

Real Estate
Blockchain applications can help record,
track, and transfer land titles, property
deeds and helps ensure the documents
are accurate and verifiable.
Example: www.Ubitquity.io

Retail- Provenance
Provenance use digital tools power
transparent businesses and traceable
products.
They use blockchain technology to
make purchases that are secure,
meaningful and more informed.

Blockchain Value Propositions for Healthcare
Health Information Exchange (HIE) Pain Points Blockchain Opportunities
Establishing a Trust Network depends on the HIE as
an intermediary to establish point-to-point sharing and
“book-keeping” of what data was exchanged.
Disintermediation of Trust likely would not require an HIE
operator because all participants would have access to the
distributed ledger to maintain a secure exchange without
complex brokered trust.
Cost Per Transaction, given low transaction
volumes, reduces the business case for central systems
or new edge networks for participating groups.
Reduced Transaction Costs due to disintermediation, as well
as near-real time processing, would make the system more
efficient.
Master Patient Index (MPI) challenges arise from
the need to synchronize multiple patient identifiers
between systems while securing patient privacy.
Distributed framework for patient digital identities, which
uses private and public identifiers secured through
cryptography, creates a singular, more secure method of
protecting patient identity.
Varying Data Standards reduce interoperability
because records are not compatible between systems.
Shared data enables near real-time updates across the network
to all parties.
Limited Access to Population Health Data, as HIE
is one of the few sources of integrated records.
Distributed, secure access to patient longitudinal health data
across the distributed ledger.
Inconsistent Rules and Permissions inhibit the right
health organization from accessing the right patient
data at the right time.
Smart Contracts create a consistent, rule-based method for
accessing patient data that can be permissioned to selected
health organizations.

10 Notable Healthcare Companies Built on Blockchain
Gem
Blockchain application platform for enterprises. For example, its first partner is Philips Blockchain
Lab, a research center on Blockchain who is exploring the uses of Blockchain technology in clinical
trials.
Blockchain security company, seeking to register every update and access to healthcare records in
the Blockchain. They signed a deal with the Estonian e-Health Authority to secure the country’s
health records, and created a network that can be used by patients, providers, private companies or
the government to access information in a safe way.
Australian Blockchain company that built a platform CyphMD’s to improve and facilitate data sharing
using smart contracts on the Ethereum Blockchain. Improved data sharing will influence the
accuracy of the diagnosis and reduce the potential for common clinical errors.
Platform that helps manage medical records using Ethereum Blockchain. It was created by MIT
graduates with the goal to give patients the control over their health data. Their prototype gives
patients one-stop-shop access to their medical history across multiple providers.
Blockchain application company operating out of San Francisco seeking to revolutionize the
relationship between medical researchers and users, so users can share their medical data while
maintaining control.
Guardtime
Brontech
MedRec
Blockchain
Health Co.

10 Notable Healthcare Companies Built on Blockchain
Pokitdok
Platform company offering 5 types of solutions: clearinghouse (X12), private label marketplace,
scheduling, identity management and payment optimization to improve communication among the
medical community and reduce the inefficiency of the healthcare system.
Help insurance companies use the Blockchain for their record keeping, so that all parties involved
are able to easily verify the accuracy of the claims and further increase efficiency in medical billing
processes. They signed a deal with US health data software provider to imprint their documents on
the Blockchain to guarantee authenticity of sequence of events.
French startup looking to improve the major issue of lack of transparency and trust panning from
data falsification in pharmaceutical clinical trials. For example of 137 clinical trials it investigated
during a study, 67 found outcomes they weren’t expecting, and only 9 reported their results
properly.
Global Blockchain platform company looking to solve problems in several industries. The startup
partnered with Philips Healthcare to work on the possible applications of Blockchain technology to
improve the healthcare industry.
French startup using blockchain-based technologies to fight drug counterfeiting. Blockchain can
improve drug traceability, allow participants in the supply chain interact easily and alert the labs of
fake drugs.
Factom
Stratumn
Tierion
Blockpharma

Business Models
Software as a Service - Companies charge a fee for using their API and infrastructure.
Example: Tierion
Professional Services - Some companies build custom projects for enterprise clients. Many
existing firms have Blockchain practice areas. Examples: Gem.
Flat Fees & Transaction Fees - Some companies build and maintain networks between a
consortium of partners. They make money by charging a subscription fee or a transaction fee
on activity in the network. Often times, they are a part owner of the network. Examples: Chain,
R3Cev
Service Level Agreements - Some businesses build platforms and host infrastructure for
enterprise customers. They offer a SLA for uptime and maintenance. Examples: Bloq, Microsoft
Cryptocurrency Speculation - Some Blockchain companies either issue their own token or the
management holds large amounts of a cryptocurrency such as Ethereum. These companies do
work that makes the market value of their token increase. They then sell the token to

Potential Healthcare Use: Blockchain and a Data Lake
Create a health blockchain as an index
Transactions in the blocks would contain a user’s unique identifier, an encrypted link to the health record and a timestamp for when the
transaction was created.
The health blockchain would contain a complete indexed history of all medical data, including formal medical records as well as health
data from mobile applications and wearable sensors, and would follow an individual user throughout their life.
All medical data would be stored off blockchain in a data repository called a data lake.
Data lakes would be valuable tools for health research and would be used for a variety of analysis including mining for factors that impact
outcomes, determining optimal treatment options based on genetic markers and identifying elements that influence preventative medicine.

Data Lake – Access & Security

Example - Estonia
Estonian eHealth Foundation and
Guardtime partner to accelerate adoption
of Guardtime’s KSI blockchain with
Estonian electronic health-care systems.
Parties integrate KSI blockchain with
existing Oracle databases to provide
increased security, transparency,
auditability and governance for electronic
systems and lifecycle management of
patient records.
Provides a template for other nations with
health care fraud measured in the
hundreds of billions of dollars every year.

Questions?
Ritesh Patel
EVP, Chief Digital Officer
Ogilvy CommonHealth Worldwide
Helen Disney
Founder
Unblocked
Thomas Crampton
Global Managing Director
Social@Ogilvy

Want this deck?
It will be available for download shortly after
the webinar on: slideshare.net/socialogilvy
Ogilvy staff: It’s also on The Market!
themarket.ogilvy.com
Are you on the go? You can join our webinars on mobile, too!
Download the GoToWebinar app from the App Store or Google Play

Understanding Blockchain

More Related Content

What's hot (20)

Viewers also liked (10)

Similar to Understanding Blockchain (20)

More from Ogilvy Consulting (20)

Recently uploaded (20)

Understanding Blockchain

Editor's Notes