© 2017 IBM Corporation

Blockchain

20 Maart, 2018

Louis de Bruin Blockchain Leader Europe

Louis_de_Bruin@nl.ibm.com

+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

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© 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

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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

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15

| 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

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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

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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

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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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