© 2017 IBM Corporation
Blockchain
20 Maart, 2018
Louis de Bruin Blockchain Leader Europe
+31 653 319 130
IBM’s Blockchain view • Blockchain for Business • Hyperledger Project • Hyperledger Fabric
Blockchain in real life • Supply chain • Dispute Resolution in Logistics • Foodsafety
Challenges starting a blockchain journey • Use case definition • Eco-system • Consortium
Agenda
3 3
© 2017 IBM Corporation
Introducing Blockchain ...
4 © 2017 IBM Corporation
Blockchain
A trusted,
distributed
ledger
with shared
business
processes
5
Problem - asset ownership & transfer in business networks
Inefficient, expensive, vulnerable
6
Solution - a replicated, shared ledger for business networks
Consensus, provenance, immutability, finality. permissioned
7
Key Concepts of Blockchain
A business network
Smart contracts
Consensus
Privacy and confidentiality Shared ledger
© 2017 IBM Corporation
Blockchain underpins Bitcoin
• An unregulated shadow-currency
• The first blockchain application
• Resource intensive
Blockchain for business differs in key areas:
• Identity over anonymity
• Selective endorsement over proof of work
• Assets over cryptocurrency
is:
8
© 2017 IBM Corporation
The Technology driving permissioned Blockchains: Introducing the Hyperledger Project
Open source
collaborative effort to
advance cross-industry
blockchain
technologies
Hosted by
The Linux Foundation,
fastest-growing project in
LF history
Global collaboration
spanning finance,
banking, IoT, supply
chains, healthcare,
manufacturing,
technology and more.
10
Hyperledger Momentum
190+Members
(30+ in China)
9Hyperledger
projects
1 Production
release
Hyperledger Fabric v1.0
3.6M+Lines of Code
43K+Enrolled in 1st
Edx course
Hosted the most popular webinar in
history of The
Linux Foundation
on Hyperledger
Fabric v1.0
80Meetups
Worldwide
21K+Meetup
Participants
30K+Twitter
Followers
1.5K+Avg. monthly
press mentions
in 2017
11
Premier Members
Hyperledger Premier Members Serving on the Governing Board. Complete list of members.
© 2017 IBM Corporation 12
Making blockchain real for business with over
400 engagements and multiple active networks
Trade Finance Pre and Post Trade Vehicle Crime Reduction
Identity/ Know your customer (KYC) Unlisted Securities/ Private Equity Funds Loyalty Program
Medicated Health Data Exchange Fraud/ Compliance Registry Distributed Energy/ Carbon Credit
Supply Chain Food Safety Provenance/ Traceability
© 2017 IBM Corporation
Recurring themes in Blockchain
Use cases:
Supply Chain
14
| I B M
C O N F I D E N T I A L 16
SC Transparency: Document Digitization – Key Benefits
One shipment can require sign-off from 30 unique
organizations and up to 200 communications. One lost
form or late approval could leave the container stuck in port.
The entire process can take more than one month, leading
to costly waste.
The digitization of documents with blockchain will reduce
delays, resulting in significant cost savings for all parties.
The cost of the actual
transportation of a
container shipment is
spent on processing
documents without
blockchain.
2x
R E M O V E C O S T L Y F R I C T I O N S
Document Digitization
More than
Reduction in
document workflow
97 %
of fruits are lost due
to spoilage in the
supply chain resulting
in $29B thrown away
annually.
63 %
| I B M
C O N F I D E N T I A L 17
Document Digitization – Client Scenario
Improving in-transit
inventory management
Real-t ime tracking shipment of goods across
multiple global supply chain checkpoints
Digitizing the end-to-end supply chain process to increase
transparency and security among business partners, reduce
fraud and errors, decrease product time spent in the transit,
and lower waste and cost.
T R A N S P O R T R E M A I N S H I G H L Y D E P E N D E N T O N
A F L O O D O F P A P E R T H A T I S N E V E R
D I G I T I Z E D .
P RO BLE M :
I N DO CUM E NT
W O RK FL O W
Reduction
97%
P E R U L T R A - L A R G E
C O N T A I N E R
S H I P *
Saved
* M A R I N E T R A N S P O R T I N T E R N A T I O N A L E S T I M A T E S T H A T B L O C K C H A I N C O U L D S A V E $ 3 0 0
P E R C O N T A I N E R I N T E R M S O F L A B O U R A N D P R O C E S S I N G A S S O C I A T E D D O C U M E N T S . F O R
O N E U L T R A L A R G E C O N T A I N E R S H I P , W H I C H C A R R I E S U P T O 1 8 , 0 0 0 C O N T A I N E R S , T H E
S A V I N G S A M O U N T T O $ 5 . 4 M .
$5.4M
Maersk GTD Video
18
Global Trade Digitization Platform
| I B M
C O N F I D E N T I A L 19
SC Provenance – Key Benefits
The cost of foodborne illness in the U.S. alone ranges from $55 -
$93B. Meanwhile, food fraud costs the industry $10 - 15B annually.
Blockchain provides a permanent record of food supply chain
transaction, digital product information such as farm origination
details, processing data, and shipping details that are digitally
connected to food items. Faster traceability and increased
provenance allows for quicker recalls, reduced fraud and the
protection of brand value.
P R O V E N A N C E : N O T J U S T “ T R A C K A N D T R A C E ”
Provenance
Increase in chain
traceability speed
99 %
Allows for faster recall
and protection of brand value.
6 Days
13 seconds
The ability to trace a product’s origin from
To
| I B M
C O N F I D E N T I A L 20
Provenance – Client Scenario
Transparency
in supply chain
Digitally tracing food products from an
ecosystem of suppliers to consumers
Provides a permanent record of food supply chain
transaction, digital product information such as farm
origination details, processing data, and shipping
details that are digitally connected to food items.
T I M E T O T R A C K
F O O D F R O M S T O R E
T O S O U R C E
Decrease
99 %
T E N A C T I V E N E T W O R K
M E M B E R S I N C L U D I N G
L E A D I N G R E T A I L E R S
A N D S U P P L I E R S
Participants
10 F O O D A U T H E N T I C A T I O N P RO BLE M :
Walmart Video
How Blockchain Helps The entire ecosystem shares a single trusted source of information on the food system
Retailers
Regulators
Customers
Growers
570M
Food Suppliers
1M
Processors
126K
33K
Logistics
1.9M
600
2.7B
Millions of participants
will view their
permissioned section
of the same
information in a
trusted, scalable
network
TX
© 2017 IBM Corporation/ Confidential
22
Determine your Network Lifecycle Example: Growing the Food Safety Ecosystem
Increased Impact
Social Media increases the
impact of any issue
Regulations
Increase in regulations on safety & fraud globally (e.g., FSMA)
Device Proliferation
Even very small growers can afford a smartphone
Pa
rtic
ipa
tio
n
Adoption by leaders:
Early adoption by key
influencers and innovators
Timeline
Shared Value:
Value proposition/pricing resonate for
all ecosystem participants (retailers,
regulators, consumers, growers,
logistics companies, processors,
suppliers, etc.) Amplified Value:
Analytic tools dramatically raise
the value of the more complete
data set
User Experience:
Easy to onboard and use system
Enterprise Ready:
Built for business usage with
security, scalability, reliability,
etc.
Adoption by ecosystem
Industry Trends
Use cases:
Vehicle Crime Reduction
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-Registers e-bike - de registers e-bike as = as wreck = exported
- Registrers lock to e-bike - Registers lock /e-bike with new owner
- closed/open status - gps location
- Reports theft - Insurance claim - Registers new owner
-Reports e-bike found -Reports e-bike as wreck - (confirms theft to insurer)
Insurance company
- Checks theft - Receives claim - Manages claim case
- Monitors/analyzes anonymized e-bike movements
BikeBlockChain
RDW: BikeBlockchain – Hyperledger Blockchain for IoT PoC
25
What makes a good first use case
Select a first Blockchain use case: Start small, succeed and then grow:
1. A limited scope, but still solves a real business problem
• Minimum Viable Product in approx. 3 months of effort
• Or first start with a PoC of a couple of weeks to validate the use case
2. A smaller business network
• Usually without requiring regulators and consortia.
• A Minimum Viable Ecosystem
3. Allows for scaling with more participants and scenarios
• Consider shadow chains to mitigate risks
26
Determine your role in the future network
Member
Founder
MemberMember
MemberFounderDirectedNetwork
Member
Founder
Member
ConsortiumBasedNetwork
B3i
DubaiSmart
Govt
Founder
Founder
Member
MemberMember
MemberCommunityBasedNetwork IBMWatson
SCBN
1. Consortium Network: founder(s) is (are)
‘equal’ among other participants, may
include a joint legal entity among the
founders (e.g. – JV)
2. Founder Directed Network: individual
founder in a position to provide strong
direction
3. Existing Community Based Network
(emerging concept): Driven by industry
standards bodies or existing non-
blockchain network owners
© 2017 IBM Corporation 27
IBM starts this journey with a Design Thinking Workshop
In a 2 - d ay wo rkshop we h e l p yo u se l ect th e u se ca se(s) a n d d ef i ne th e M V P
Thank you
Louis de Bruin
Blockchain Leader Europe
www.ibm.com/blockchain
developer.ibm.com/blockchain
www.hyperledger.org
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