Concepts and applications in

Blockchain

The better the question. The better the answer.

The better the world works.
Agenda

1. What is Blockchain?
2. What are Blockchain applications in industry?

Page 2
What is Blockchain?

Page 3
What is Bitcoin? (or any cryptocurrency)

► the Bitcoin vs a bitcoin (BTC)

► a decentralized ledger vs a unit of account

Page 4
Features of a Blockchain

Blockchain is…

…whose entries
Technology for …and form one
…which support are verified through
Structural features

enabling shared unified

multiple writers… embedded trust
databases… “transaction” log.
models…

Trust through
Append-Only
Decentralized Multiple writers design and
(Immutable)
protocol

Multiple “Real-time” Consensus based Chronological

ownership synchronicity authentication chain of activity

Page 5
Important concepts in Blockchain

► Tokenisation

► Trust-less

► Disintermediation

► Cryptographic Proof

► Tamper-Proof Video

Page 6 Sample
Sample of Ethereum ledger

Chain of blocks (grouped transactions)

Decentralized ledger
Technology underlying “cryptocurrencies”
(market cap ~$600 bn. as of Jan 16, 2017)
Specific challenges that can be solved using
Blockchain

Page 8
Necessary conditions for a use case

Page 9 Questionnaire
Common Industry Uses Cases

1 4
Settlements and Privacy and security
invoicing Concerns over trust and access
Typically a slow, manual process control, as well as the potential for
with high transaction costs and hacking
operational risk

2 5
Contracting Supply chain traceability
Generally a complex, time- Lack of transparency within the
consuming process for negotiations supply chain and limited tracking
and execution ability

3 6
Identity management Synchronization
A detailed process requiring Disparate sources of distributed
verification from disparate records data internally and externally to an
and systems among various organization, leading to a time-
parties, with the potential for fraud consuming reconciliation process

Page 10
Supply Chain applications of Blockchain

Page 11
Global pilots of blockchain in SCM are growing everyday..

84% retailers expect their supply chain costs to go down by 2.5% because of Blockchain
(Cognizant study, 2017)

RETAIL SHIPPING
MAJORS MAJORS

SUPPLY
LOGISTICS
CHAIN
PROVIDERS
PAYMENTS

DEFENCE & TRUCKING

AIRCRAFT FIRMS

Page 12
Blockchain can create benefits throughout the value added
chain
Raw Material Sourcing
► Blockchain enabled secure
documentation and transfer of key
information about a raw material
such as origin and quality visible to
the end-customer
Goods Delivery
► Easier handling using a digital
signature when goods get
delivered
► Certificate and authenticity proof
of delivered product increase
trust between company and
consumer
Realtime assurance that the
► parties
delivery conditions were met
Returns & Replacement
► Blockchain integration ensuring
process compliance
Page 13
Manufacturing
► Throughout the various
manufacturing steps and
locations, goods can be traced
back and identified, thus
establishing transparent supply
chains and sustainable
manufacturing
Logistics & Warehousing
► Enhanced security against
theft, tampering, spurious
goods through traceability
► Transparent representation of
assets (e.g. location, grade,
quantity and provenance) to
chosen partners and third
Invoicing
► Approved invoices are auto-
matched based on contract
terms defined in Blockchain
► Tracking invoice compliance
using Blockchain
► Crypto currency on Blockchain
platform for instant and
secured vendor payments
Quality Management
Overall Blockchain Benefits
► Quality assurance / warranty is
enhanced. In case of production Track & Trace goods from origin
errors, fraud or counterfeit
occurrences, Blockchains help
to consumer
identify possible causes more
easily.
► The motivation to commit fraud or
counterfeit goods is reduced. Enhanced transparency
Contract Management
► Enhanced contract compliance and Fraud / counterfeit prevention
approvals enabled by Blockchain
authorization (Digital signature
technology)
► Simplified contract compliance
reporting
Easier entry to emerging markets
► Blockchain enabled smart contracting
technology to increase trust between
parties (Smart Contracts)
Resale markets Increased innovation, as a result
of a decentralized architecture
► Conservation of value by
establishing transparency of a good
and its historical condition thus
allowing for higher prices on a Reduced handling costs
secondary market and therewith
also for the original retailer
(eg:cars)
Thank You