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Moving forward based on Market Trends #BlockchainSubmit

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Pablo Junco
Pablo Junco

The presentation was used during the closing session in the Blockchain DLT Summit at Lima, Peru (November 14). Thanks to the summit sponsors UTEC, R3, BCP, and Microsoft Peru.

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Moving forward based on Market Trends
Quick recap … Capabilities of blockchain Blockchain and DLTs Key questions to recognized scenarios Blockchain business patterns
Get familiar with the blockchain capabilities SECURE SHARED DISTRIBUTED LEDGER
Do multiple parties share data? Do multiple parties manipulate the same data? Is there a requirement for verification? Can intermediaries be removed reducing costs and complexity? Answer a few questions to determine if Blockchain is appropriate
Explore use cases based on existing patterns TRADE FINANCE SUPPLY CHAIN COLLABORATION REFRIGERATED TRANSPORTATION KNOW YOUR CUSTOMER SUPPLY CHAIN FINANCING GLOBAL PAYMENTS FOOD PROVENANCE DIGITAL ASSET TRANSFER
Keep in mind the defined journey Phase 0 Exploring the Technology Phase 1 Envisioning their own Success Phase 2 Proving Business Capacity Phase 3 Delivering Business Outcomes Technical Briefing ( 1 hour ) Business Briefing ( 1-2 hours ) Minimal Viable Product ( 8-12 weeks ) Production Pilot ( varied ) Proof of Concept ( 2-3 weeks ) Business Ideation Workshop ( 2 days)
Blockchain applications
Let’s imagine a food contamination scenario 48M illnesses from contaminated food each year just in the U.S.
Let’s imagine a food contamination scenario
Why isn’t everyone using blockchain right now?
Blockchain wasn’t built for enterprise Integration There are a number of challenges to integrate a blockchain with existing IT architecture Ledgers Ledgers designed for public network lack the performance, confidentiality, and governance capabilities needed for commercial use Smart Contracts Smart contracts were not designed to leverage existing enterprise tools and skill sets
Collaboration is the Key • Crossing trust boundaries • Multiple parties updating, validating, consuming data • Ability to provide increased transparency, trust • New products or services can be created • Centralized authority and infrastructure • Single entity updates data • No new process enabled; incremental benefits only Yes
Related Industries Supply Chain Collaboration Manufacturing Government MediaRetail Energy TransportationHealthFSI Education Need / Challenges • Supply chain management can be cash-flow unaware. • Supply chain optimization usually ignores contract terms. • Each participant has their own version of the ledger and there is a weak integration between them. • In case of anomalies, accountability is needed to avoid expensive reconciliation of disputes. Potential Benefits • Optimize inventory levels and turns • Lower transportation and warehousing costs • Increase trust and visibility across the supply chain by providing a single source of truth • Reduce legal expenses via self- executing Smart Contracts • Payments are automatic, condition- based and adjusted for performance. Short-Term Reality • Create a shared ledger as the single source of truth • Upload data into the shared ledger from IoT-enabled devices via human or self-managed inputs • Intelligent actions based on Smart Contract notifications
IoT Enabled Origin 8ºC 60% At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are recorded on the blockchain SHARED LEDGER Warehouse 9ºC 64% Carrier 2 8ºC 63% Store 9ºC 64% SMART CONTRACT UPDATED SMART CONTRACT The package has to be maintained at : Temperature < 10º C Humidity < 65% Food Processor The milk product is sealed in an IoT enabled package for shipping PRODUCER Milk producer supplies Milk to Food Processing Company CARRIER 1 The terms of shipping are registered using a smart contract on the Blockchain CARRIER 2 Warehouse 11ºC 66% Supply Chain Collaboration 8ºC 60% 9ºC 64% 8ºC 63% Carrier 1 9ºC 64% 9ºC 64% Carrier 2 11ºC 66% Retail Store 9ºC 64% The conditions of the contract have been violated. Carrier 2 is liable for penalty as the temperature of the package when it reached the retail store was above the prescribed limit
Related Industries Know Your Customer Need / Challenges • Poor customer onboarding experience across companies • Same customer, multiple identities in same corporate group • Time consuming process to verify identity and documents authenticity • Difficult to ensure customer data privacy and traceability Potential Benefits • Centralizing the KYC process increase efficiency and cost- effectiveness. • Improve onboarding experience across all authorized parties. • Eliminating manual compliance checks. • Secure exchange of information between different trusted entities • Increased customer control over how their data is accessed and shared Short-Term Reality • Improve onboarding experience for new customers • Adding participants (e.g. institutions) into the system • A single global entity for updating the global ledger Manufacturing Government MediaRetail Energy TransportationHealthFSI Education
Know Your Customer
Related Industries Promotion and Sales of Tickets Manufacturing Government MediaRetail Energy TransportationHealthFSI Education Need / Challenges • 60% of the hottest tickets were bought by bots. Close to 50% were resold with margin over 1000%. • Official dealers don’t get any commissions. • Tickets are listed on multiple websites, sold once, the rest as fakes. • Nearly 35% of ticket inventory goes unsold and fans get upset • Organizers and tickets selling services suffers the user’s complaints Potential Benefits • Solve tickets double spending • Provide a secure and transparent system which is resistant to fraud • and counterfeiting. • Eliminate fraudulent activity in both primary and secondary channels. • Organizers (and tax authorities) can grow revenue from other channels. • Inflation could be controlled and cost reduced. Short-Term Reality • Register and maintain ownership of digital assets • Association of an unique identity to each ticket and making sure it is publicly verifiable on the blockchain. • Creation of an API to make sure no fraud occurs, improve ticket promotion and grow the ecosystem of ticketing apps or anyone who can sell the ticket. DIGITAL ASSET TRANSFER
Buyer 1 Promotion and Sales of Tickets DIGITAL ASSET TRANSFER Buyer 1 Ticketing Application Organizer Financial Institution 1) Ask for the list of available tickets & price 2) Verify ticket’s owner and availability 3) Buy the ticket(s) 4) Block the ticket(s) 6) Register the ticket ownership and provide the unique identity7) Get ticket(s) and ownership certificate Buyer 2 Owner 1 10) Ask for the list of available tickets & price 8) Ask for ticket resales 9) Make it available for resale (price, conditions, etc.) 5) Make the payment
Closing thoughts Invest just on business scenarios for real problems1 Focus on Digital Transformation not in blockchain2 Build your ecosystem using an agile approach3 Choose the DLT and deployment topology that meets your needs 4
Learn more Visit our Azure Blockchain Solutions Page Visit the Azure Blockchain Blog Get familiar with the available ledgers & tools in Azure Marketplace Join the conversation on Azure Advisors
Moving forward based on Market Trends #BlockchainSubmit
Moving forward based on Market Trends #BlockchainSubmit
Moving forward based on Market Trends #BlockchainSubmit

More Related Content

Moving forward based on Market Trends #BlockchainSubmit

  • 1. Moving forward based on Market Trends
  • 2. Quick recap … Capabilities of blockchain Blockchain and DLTs Key questions to recognized scenarios Blockchain business patterns
  • 3. Get familiar with the blockchain capabilities SECURE SHARED DISTRIBUTED LEDGER
  • 4. Do multiple parties share data? Do multiple parties manipulate the same data? Is there a requirement for verification? Can intermediaries be removed reducing costs and complexity? Answer a few questions to determine if Blockchain is appropriate
  • 5. Explore use cases based on existing patterns TRADE FINANCE SUPPLY CHAIN COLLABORATION REFRIGERATED TRANSPORTATION KNOW YOUR CUSTOMER SUPPLY CHAIN FINANCING GLOBAL PAYMENTS FOOD PROVENANCE DIGITAL ASSET TRANSFER
  • 6. Keep in mind the defined journey Phase 0 Exploring the Technology Phase 1 Envisioning their own Success Phase 2 Proving Business Capacity Phase 3 Delivering Business Outcomes Technical Briefing ( 1 hour ) Business Briefing ( 1-2 hours ) Minimal Viable Product ( 8-12 weeks ) Production Pilot ( varied ) Proof of Concept ( 2-3 weeks ) Business Ideation Workshop ( 2 days)
  • 8. Let’s imagine a food contamination scenario 48M illnesses from contaminated food each year just in the U.S.
  • 9. Let’s imagine a food contamination scenario
  • 10. Why isn’t everyone using blockchain right now?
  • 11. Blockchain wasn’t built for enterprise Integration There are a number of challenges to integrate a blockchain with existing IT architecture Ledgers Ledgers designed for public network lack the performance, confidentiality, and governance capabilities needed for commercial use Smart Contracts Smart contracts were not designed to leverage existing enterprise tools and skill sets
  • 12. Collaboration is the Key • Crossing trust boundaries • Multiple parties updating, validating, consuming data • Ability to provide increased transparency, trust • New products or services can be created • Centralized authority and infrastructure • Single entity updates data • No new process enabled; incremental benefits only Yes
  • 13. Related Industries Supply Chain Collaboration Manufacturing Government MediaRetail Energy TransportationHealthFSI Education Need / Challenges • Supply chain management can be cash-flow unaware. • Supply chain optimization usually ignores contract terms. • Each participant has their own version of the ledger and there is a weak integration between them. • In case of anomalies, accountability is needed to avoid expensive reconciliation of disputes. Potential Benefits • Optimize inventory levels and turns • Lower transportation and warehousing costs • Increase trust and visibility across the supply chain by providing a single source of truth • Reduce legal expenses via self- executing Smart Contracts • Payments are automatic, condition- based and adjusted for performance. Short-Term Reality • Create a shared ledger as the single source of truth • Upload data into the shared ledger from IoT-enabled devices via human or self-managed inputs • Intelligent actions based on Smart Contract notifications
  • 14. IoT Enabled Origin 8ºC 60% At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are recorded on the blockchain SHARED LEDGER Warehouse 9ºC 64% Carrier 2 8ºC 63% Store 9ºC 64% SMART CONTRACT UPDATED SMART CONTRACT The package has to be maintained at : Temperature < 10º C Humidity < 65% Food Processor The milk product is sealed in an IoT enabled package for shipping PRODUCER Milk producer supplies Milk to Food Processing Company CARRIER 1 The terms of shipping are registered using a smart contract on the Blockchain CARRIER 2 Warehouse 11ºC 66% Supply Chain Collaboration 8ºC 60% 9ºC 64% 8ºC 63% Carrier 1 9ºC 64% 9ºC 64% Carrier 2 11ºC 66% Retail Store 9ºC 64% The conditions of the contract have been violated. Carrier 2 is liable for penalty as the temperature of the package when it reached the retail store was above the prescribed limit
  • 15. Related Industries Know Your Customer Need / Challenges • Poor customer onboarding experience across companies • Same customer, multiple identities in same corporate group • Time consuming process to verify identity and documents authenticity • Difficult to ensure customer data privacy and traceability Potential Benefits • Centralizing the KYC process increase efficiency and cost- effectiveness. • Improve onboarding experience across all authorized parties. • Eliminating manual compliance checks. • Secure exchange of information between different trusted entities • Increased customer control over how their data is accessed and shared Short-Term Reality • Improve onboarding experience for new customers • Adding participants (e.g. institutions) into the system • A single global entity for updating the global ledger Manufacturing Government MediaRetail Energy TransportationHealthFSI Education
  • 17. Related Industries Promotion and Sales of Tickets Manufacturing Government MediaRetail Energy TransportationHealthFSI Education Need / Challenges • 60% of the hottest tickets were bought by bots. Close to 50% were resold with margin over 1000%. • Official dealers don’t get any commissions. • Tickets are listed on multiple websites, sold once, the rest as fakes. • Nearly 35% of ticket inventory goes unsold and fans get upset • Organizers and tickets selling services suffers the user’s complaints Potential Benefits • Solve tickets double spending • Provide a secure and transparent system which is resistant to fraud • and counterfeiting. • Eliminate fraudulent activity in both primary and secondary channels. • Organizers (and tax authorities) can grow revenue from other channels. • Inflation could be controlled and cost reduced. Short-Term Reality • Register and maintain ownership of digital assets • Association of an unique identity to each ticket and making sure it is publicly verifiable on the blockchain. • Creation of an API to make sure no fraud occurs, improve ticket promotion and grow the ecosystem of ticketing apps or anyone who can sell the ticket. DIGITAL ASSET TRANSFER
  • 18. Buyer 1 Promotion and Sales of Tickets DIGITAL ASSET TRANSFER Buyer 1 Ticketing Application Organizer Financial Institution 1) Ask for the list of available tickets & price 2) Verify ticket’s owner and availability 3) Buy the ticket(s) 4) Block the ticket(s) 6) Register the ticket ownership and provide the unique identity7) Get ticket(s) and ownership certificate Buyer 2 Owner 1 10) Ask for the list of available tickets & price 8) Ask for ticket resales 9) Make it available for resale (price, conditions, etc.) 5) Make the payment
  • 19. Closing thoughts Invest just on business scenarios for real problems1 Focus on Digital Transformation not in blockchain2 Build your ecosystem using an agile approach3 Choose the DLT and deployment topology that meets your needs 4
  • 20. Learn more Visit our Azure Blockchain Solutions Page Visit the Azure Blockchain Blog Get familiar with the available ledgers & tools in Azure Marketplace Join the conversation on Azure Advisors