Blockchain Technology
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This document discusses various potential applications of blockchain technology across different industries. It begins with an introduction to blockchain and then provides 3 sentence summaries on how blockchain could be used in legal, supply chain management, government services, energy, food, retail, healthcare, insurance, travel/hospitality, and education. The majority of the document then focuses on potential applications of blockchain within the fast moving consumer goods (FMCG) supply chain, including improving traceability, streamlining processes with smart contracts, and enhancing sustainability and transparency. Both benefits and challenges of implementing blockchain for FMCG companies are explored.
Blockchain Technology
- 2. 1. INTRODUCTION TO BLOCKCHAIN 2. BLOCKCHAIN IN LEGAL 3. BLOCKCHAIN IN SUPPLY CHAIN 4. BLOCKCHAIN IN GOVERNMENT 5. BLOCKCHAIN IN ENERGY 6. BLOCKCHAIN IN FOOD 7. BLOCKCHAIN IN RETAIL Content Page
- 3. 8. BLOCKCHAIN IN HEALTHCARE 9. BLOCKCHAIN IN INSURANCE 10. BLOCKCHAIN IN TRAVEL AND HOSPITALITY 11. BLOCKCHAIN IN EDUCATION 12. HOW BLOCKCHAIN CAN TRANSFORM THE FMCG SUPPLY CHAIN 13. MICRO-LEVEL GOODS TRACKING AND EFFICIENCY 14. STREAMLINING THE SUPPLY CHAIN WITH SMART CONTRACTS Content Page
- 4. 15. IMPLEMENTING BLOCKCHAIN 16. WHAT IS BLOCKCHAIN IN FMCG 17. BLOCKCHAIN CHANGING THE CONSUMER GOODS INDUSTRY 18. BLOCKCHAIN AND RETAIL: FOUR OPPORTUNITIES 19. BLOCKCHAIN IN THE CONSUMER GOODS INDUSTRY 20. DISADVANTAGES OF BLOCKCHAIN IN FMCG 21. BLOCKCHAIN ENHANCING THE SUPPLY CHAIN Content Page
- 5. 22. BRANDS AND BLOCKCHAIN 23.TRANSFORMING THE RELATIONSHIP BETWEEN BRANDS AND CUSTOMERS 24. BLOCKCHAIN AND IOT 25. BUILDING TRUST IN IOT 26. TECHNOLOGY REQUIREMENTS 27. ECONOMIC REQUIREMENTS 28. USING BLOCKCHAIN TO SECURE IOT Content Page
- 6. 29. THE 5 BIG PROBLEMS WITH BLOCKCHAIN Content Page
- 7. Introduction to Blockchain • This technology provides potential to upend the way every industry manages its information and data and financial services. • Examples are Legal, Supply Chain, Government, Energy, Food, Retail, Healthcare, Insurance, Travel and Hospitality & Education sectors.
- 8. Why use Blockchain • Blockchain technology offers new tools for authentication and authorization in the digital world that preclude the need for many centralized administrators. As a result, it enables the creation of new digital relationships.
- 9. Why use Blockchain Blockchain revolution is posed to create the backbone of a layer of the internet for transactions and interactions of value are often called the 'Internet of Value’.
- 10. Blockchain in Legal “Smart contracts” stored on the blockchain track contract parties, terms, transfer of ownership, and delivery of goods/ services without legal intervention.
- 11. By utilizing a distributed ledger, companies within a supply chain gain transparency into shipment tracking, deliveries, and progress among other suppliers where no inherent trust exists. Blockchain in Supply Chain
- 12. Blockchain offers promise as a technology to store personal identity information, criminal backgrounds, and “e-citizenship,” authorized by biometrics. Blockchain in Government
- 13. Decentralized energy transfer and distribution are possible via micro-transactions of data sent to blockchain, validated, and re-dispersed to the grid while securing payment to the submitter. Blockchain in Energy
- 14. Blockchain in Food Using blockchain to store food supply chain data offers enhanced traceability of product origin, batching, processing, expiration, storage temperatures, and shipping.
- 15. Blockchain in Retail Secure P2P marketplaces can track P2P retail transactions, with product information, shipment, and bills of lading input on the blockchain, and paying via Bitcoin.
- 16. Electronic medical records stored in a blockchain, accessed and updated via biometrics, allow for the democratization of patient data and alleviate the burden of transferring records among providers. Blockchain in Healthcare
- 17. Blockchain in Insurance When autonomous vehicles and other smart devices communicate status updates with insurance providers via the blockchain, premium costs decrease as the need for auditing and authenticating data vanishes.
- 18. Passengers store their authenticated “single travel ID” on the blockchain for use in lieu of travel documents, identification cards, loyalty program IDs, and payment data. Blockchain in Travel & Hospitality
- 19. Educational institutions could utilize the blockchain to store credentialing data around assessments, degrees, and transcripts eliminating chance of lost of results slips. Blockchain in Education
- 20. How blockchain can transform the FMCG supply chain • Elimination of food fraud estimated to cost $30 - $40 billion a year globally • Pinpointing of tainted products • Provision of transparency of transportation and storage process
- 21. Micro-level goods tracking and efficiency • Blockchain dramatically enhances transparency, enabling all parties to trace a product’s journey along the supply chain. • Tracking the provenance and supply chain journey of individual packages of produce, enables pinpoint and prevention of outbreaks and illness.
- 22. Streamlining the supply chain with smart contracts These contracts are incredibly difficult to tamper with thanks to the cryptography-based transactions of blockchain.
- 23. Streamlining the supply chain with smart contracts Executed according to pre- determined triggering events, such as transferring funds the moment a shipment arrives at the store.
- 24. Implementing blockchain • Developers are experimenting with retail processes and applications on a flexible, scalable and trusted cloud platform. • Revolutionizing retail supply chain efficiency with rapid, low-cost, low-risk, and fast-fail platforms that enable developers to experiment with a growing number of distributed ledger technologies.
- 25. What is Block Chain in FMCG? The sudden rise of Bitcoin has created new interest in the blockchain technology behind the e- currency.
- 26. What is Block Chain in FMCG? Blockchain is a decentralized ledger that tracks transactions in a secure way using cryptography to make modifications almost impossible.
- 27. What is Block Chain in FMCG? The popularity of Bitcoin has been fueling a speculative bubble in the stock market as investors keep throwing money at any and all companies using blockchain in the hopes of finding the new Bitcoin unicorn
- 28. Blockchain changing the Consumer Goods Industry It is seen as a possible way of reinforcing trust and security and accelerating business processes, removing the human element. Many governments, tech giants and businesses are starting to experiment with this technology.
- 29. Blockchain changing the Consumer Goods Industry There are arguments that it could help tackle food fraud, boost trust in business transactions and accelerate operational processes.
- 30. Blockchain changing the Consumer Goods Industry Address efficiency, sustainability and general supply chain issues.
- 31. Blockchain changing the Consumer Goods Industry The added immutability of a distributed ledger means that inter-enterprise processes become easier to trust in case of dispute, allowing FMCG giants to enhance management of suppliers and ensuring conformity to operational and regulatory standards.
- 32. Blockchain and Retail: Four Opportunities 1. Consumer payments High transaction costs constrain a market. The potential for a lot of demand for crypto-currencies from a consumer perspective.
- 33. Blockchain and Retail: Four Opportunities 1. Consumer payments One startup in Singapore, TenX, is connecting its digital currency wallet to a Visa wallet, making it possible for consumers to use a Visa card to spend crypto-currencies.
- 34. Blockchain and Retail: Four Opportunities 2. Product Pedigree Blockchain makes it possible for every legitimate touch in a supply chain – from a supplier to a manufacturer to a shipper – to add a verifiable record to an item’s pedigree.
- 35. Blockchain and Retail: Four Opportunities 2. Product Pedigree This has applications like making it harder to pass off that Hermes or Louis Vuitton bag as “genuine” when it’s not.
- 36. Blockchain and Retail: Four Opportunities 3. B2B payments One of the biggest challenges for crypto- currencies is acceptance as a real currency. Banks would have to be willing to hold crypto-currencies as deposits, and participate in exchanging crypto- currencies for cold, hard cash.
- 37. Blockchain and Retail: Four Opportunities 3. B2B payments Blockchain is being proposed more in terms of “smart contracts”, basically private blockchains that update automatically over time, recording all of the actions taken in regards to the contract
- 38. Blockchain and Retail: Four Opportunities 3. B2B payments Less paperwork, more digital exchanges of information, and smoother transactions across borders and across multiple parties
- 39. Blockchain and Retail: Four Opportunities 4. Digital Advertising Solve some of digital advertising’s problems. Blockchain as it exists is very secure, but it’s not very fast.
- 40. Blockchain and Retail: Four Opportunities 4. Digital Advertising It’s definitely not fast enough for the real-time market bids that happen.
- 41. Blockchain and Retail: Four Opportunities 4. Digital Advertising Is compelling enough to have big potential impact on the retail industry.
- 42. Blockchain in the consumer goods industry The fast moving consumer goods (FMCG) industry is another of an increasing number of sectors that are looking to utilize emerging and advanced technologies.
- 43. Disadvantages of blockchain in FMCG Manufacturers depend on traditional retailers now more than ever, as it is through their stores that the FMCG giants can show off their new products
- 44. Blockchain enhancing the supply chain Enables businesses and consumers to constantly be aware of and monitor where an item is in the Supply Chain.
- 45. Blockchain enhancing the supply chain Businesses, big and small, and individuals are getting involved with initiatives such as Coca Cola’s recent World Without Waste campaign.
- 46. Blockchain enhancing the supply chain Supply Chain industry can utilize blockchain to benefit sustainability, by reducing counterfeit trade and increasing consumers awareness of where exactly products are coming from – from food and coffee to luxury items like diamonds, it will mean good things for both.
- 47. Blockchain enhancing the supply chain Being used to digitally track products on the move, for quicker more transparent tracking that is accessed and updated continuously.
- 48. Blockchain enhancing the supply chain Once this technology is widely used it will improve traceability and efficiency and reduce administrative costs - particularly in larger Supply Chain networks.
- 49. Brands and Blockchain Walmart - Applying blockchain to a package of mangoes, Walmart traced the fruit to its original source in two seconds, something that could otherwise take weeks.
- 50. Brands and Blockchain DeBeers – DeBeers uses blockchain to track gems from the moment they’re excavated. The technology can verify a diamond’s purity in a secure way, while also ensuring it didn’t originate in conflict zones.
- 51. Brands and Blockchain Amazon – The ecommerce juggernaut proves it also believes in blockchain’s potential in marketing, supporting the integration of blockchain solutions with systems built on AWS (Amazon Web Service).
- 52. Transforming the Relationship between Brands and Customers Consumers can trust the fact that their information is secure and they have complete control and anonymity. Brands can trust that the information is correct and unable to be falsified.
- 53. Transforming the Relationship between Brands and Customers Relevant sections of personal data held in the blockchain can be shared with the right brands. The brands you trust would be held on the blockchain.
- 54. Transforming the Relationship between Brands and Customers This could see major household purchases being shared with your trusted brands that can let you know about associated services and goods that are right for you, from insurance to cleaning tablets, while you – the consumer – remain anonymous and in control.
- 55. Transforming the Relationship between Brands and Customers In the FMCG world, the blockchain might see consumers buy their household products direct from P&G or Unilever rather than through a supermarket.
- 56. Transforming the Relationship between Brands and Customers As ecommerce, powered by optimization algorithms, becomes the norm, consumers may question the value that retail intermediaries provide over and above the products themselves.
- 57. Blockchain & IOT Continuity of information: Through the immutable and irrevocable properties of blockchain, sharing information effectively between the different stakeholders involved in the global supply chain will be key to ensure traceability and reduce inherent risks.
- 58. Blockchain & IOT Accessibility to information: Fast and transparent blockchains will provide the necessary access to information in the future to effectively leverage on the massive amount of data produced along the supply chain.
- 59. Blockchain & IOT Link between physical and information flows: Thanks to IoT, the data will be linked to the materials and products on the stages of the supply chain where matter is transformed physically.
- 60. Blockchain & IOT Code of conduct violations and fraud detection: The need to ensure human rights and codes of conduct are respected along the chain is necessary to lower reputation risk.
- 61. Blockchain & IOT Effective fraud detection processes supported by appropriate technologies will be increasingly important to lower business risk. This will be enabled by the transparent and auditable features of blockchain.
- 62. Building Trust in IOT As things increase their connectivity and intelligence, so will our demand for them to autonomously form networks, exchange information, and coordinate action on our behalves.
- 63. Building Trust in IOT Online purchases, for example, we indirectly call on a web management system for product placement and pricing, a retailer, and a last-mile delivery driver.
- 64. Technology Requirements Requirement 1: Identity and reputation of participants is central to trust and must be exposed.
- 65. Technology Requirements For IoT applications, most information generated at the edge is strongly qualitative; and once information becomes qualitative, its provenance – including the identity and reputation of the source – is critical.
- 66. Technology Requirements Requirement 2: Controlled access to information is critical.
- 67. Technology Requirements Businesses don't like to share confidential data with competitors. Smart contracts will be powerful tools in IoT, particularly in supply chains that include third party logistics companies.
- 68. Technology Requirements The ability to prove that the temperature of the container remained within contract parameters should allow immediate trigger of payment resolving finger pointing. And this proof must be constructed without revealing additional confidential information.
- 69. Technology Requirements Requirement 3: Efficiency matters.
- 70. Technology Requirements Another core principle of blockchain is redundant compute and storage: every participant processes all transactions and maintains the ledger, creating an ever- growing demand for storage across the network.
- 71. Technology Requirements In IoT, where lightweight nodes at the edge frequently have extremely limited storage and compute power, IoT blockchains will likely need to recognize the variety of nodes in the network and their relative capabilities.
- 72. Technology Requirements Requirement 4: Connectivity is intermittent; action must be taken when disconnected.
- 73. Technology Requirements There are many, many edge nodes which by design receive or send data only intermittently and in small quantities that drive autonomous interaction to the edge also require blockchains to accommodate connectivity constraints.
- 74. Technology Requirements Requirement 5: Actions must be reversible.
- 75. Technology Requirements Represents a fundamental shift in one of the central tenets of the technology.
- 76. Technology Requirements Specifically, blockchain technology is founded on the principle of immutability; once something is committed to the log it never changes.
- 77. Technology Requirements A more troublesome example might occur when automatic payments are triggered when a shipping container arrives at a facility. A faulty RFID reader could report the existence of a container that has not actually arrived triggering an inappropriate transfer of funds. FAULTY
- 78. Technology Requirements Personal information might leak into a transaction; the effect of GDPR and other privacy regulations may require that information be removed from the record. This problem is not unique to IoT applications though we expect it to be more common in them.
- 79. Economic Requirements With 3D-printing enabling distributed manufacturing, and barriers to entry around machine learning, enterprises may be forced to adopt more open systems.
- 80. Economic Requirements The IoT industry is inevitably expanding into more complex ecosystems, expecting compelling use cases for blockchain will become more apparent.
- 81. Using Blockchain ToSecure IoT The world is full of connected devices online all the time, each of those devices–whether a voice-recognition personal assistant or a pay-by- phone parking meter or a temperature sensor deep in an industrial robot–will be vulnerable to a cyberattack and could even be part of one.
- 82. Using Blockchain ToSecure IoT Today, many “smart” internet-connected devices are made by large companies with well-known brand names, like Google, Apple, Microsoft and Samsung, which have both the technological systems and the marketing incentive to fix any security problems quickly..
- 83. Using Blockchain ToSecure IoT But that’s not the case in the increasingly crowded world of smaller internet-enabled devices, like light bulbs, doorbells and even packages shipped by UPS.
- 84. Using Blockchain ToSecure IoT Those devices–and their digital “brains”–are typically made by unknown companies, many in developing countries, without the funds or ability– or the brand-recognition need–to incorporate strong security features.
- 85. Using Blockchain ToSecure IoT Insecure “internet of things” devices have already contributed to major cyber-disasters, such as the October 2016 cyberattack on internet routing company Dyn that took down more than 80 popular websites and stalled internet traffic across the U.S.
- 86. Using Blockchain ToSecure IoT The solution to this problem could be a new way of tracking and distributing security software updates using blockchains.
- 87. The 5 Big Problems With Blockchain 1. Blockchain has an environmental cost
- 88. The 5 Big Problems With Blockchain: Bitcoin – last year it was claimed that the computing power required to keep the network running consumes as much energy as was used by 159 of the world’s nations.
- 89. The 5 Big Problems With Blockchain Smaller scale blockchains – such as those that an organization may deploy internally to securely monitor and record business activity – would consume a fraction of that.
- 90. The 5 Big Problems With Blockchain: It is an important consideration and the environmental implications as well as the energy costs can’t be ignored.
- 91. The 5 Big Problems With Blockchain: 2. Lack of regulation creates a risky environment
- 92. The 5 Big Problems With Blockchain: Scams and market manipulation are commonplace. Among the high profile cases is Onecoin – recently revealed as a ponzi scheme which is believed to have robbed millions from investors who believed they were getting in early on what would become the “next Bitcoin”.
- 93. The 5 Big Problems With Blockchain: Legislators have largely failed to keep pace with innovators (or scammers), leading to rich pickings for those seeking to exploit “FOMO” – the “fear of missing out”.
- 94. The 5 Big Problems With Blockchain: 3. Its complexity means end users find it hard to appreciate the benefits
- 95. The 5 Big Problems With Blockchain: It takes a while, and a good bit of reading, before the “man on the street” can see what makes blockchains potentially so useful.
- 96. The 5 Big Problems With Blockchain: Middle-man facilities traditionally provided by the financial services industry – such as clearing payments and fraud prevention are provided by banks adequately well, at an apparently low cost to the end user.
- 97. The 5 Big Problems With Blockchain: 4. Blockchains can be slow and cumbersome
- 98. The 5 Big Problems With Blockchain: Due to their complexity and their encrypted, distributed nature, blockchain transactions can take a while to process, certainly compared to “traditional” payment systems such as cash or debit cards.
- 99. The 5 Big Problems With Blockchain: Bitcoin transactions can take several hours to finalize, which means there are inherent problems in the idea that you will be able to use them to pay for a cup of coffee in your lunch hour, unless the vendor is willing to take on an element of risk.
- 100. The 5 Big Problems With Blockchain: 5. The “Establishment” has a vested interest in blockchain failing
- 101. The 5 Big Problems With Blockchain: Despite the huge interest in adopting blockchain technology from the established financial industry, the subtext behind much of what is said about it is “it would probably be better if it just quietly disappeared.”
- 102. The 5 Big Problems With Blockchain: Banks make huge amounts of profit from playing the middle-man role, and because the cost is distributed among their millions of customers, end users usually pay very little individually.