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Block Chain Technology in
Supply Chain for FMCG
BY: ANDREW TAN HOWE
ID: S8015407J
COURSE TITLE: ADVANCED DIPLOMA IN
PROCUREMENT AND SUPPLY MANAGEMENT
COURSE INTAKE: JANUARY 2018
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
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
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
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
29. THE 5 BIG PROBLEMS WITH BLOCKCHAIN
Content Page
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.
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.
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’.
“Smart contracts” stored on the
blockchain track contract parties,
terms, transfer of ownership, and
delivery of goods/ services without
legal intervention.
Blockchain in Legal
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
Blockchain offers promise as a technology to
store personal identity information, criminal
backgrounds, and “e-citizenship,” authorized
by biometrics.
Blockchain in Government
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
Using blockchain to store food supply chain data offers
enhanced traceability of product origin, batching,
processing, expiration, storage temperatures, and shipping.
Blockchain in Food
Secure P2P marketplaces can track P2P retail
transactions, with product information, shipment,
and bills of lading input on the blockchain, and
paying via Bitcoin.
Blockchain in Retail
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
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.
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
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
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
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.
Streamlining the supply chain with smart contracts
These contracts are
incredibly difficult to
tamper with thanks to the
cryptography-based
transactions of
blockchain.
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.
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.
What is Block Chain in FMCG?
The sudden rise of Bitcoin has
created new interest in the
blockchain technology behind the e-
currency.
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.
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
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.
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.
Blockchain changing the Consumer
Goods Industry
Address efficiency, sustainability and general supply chain issues.
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.
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.
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.
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.
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.
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.
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
Blockchain and Retail: Four
Opportunities
3. B2B payments
Less paperwork, more digital
exchanges of information, and
smoother transactions across
borders and across multiple
parties
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.
Blockchain and Retail: Four
Opportunities
4. Digital Advertising
It’s definitely not fast
enough for the real-time
market bids that happen.
Blockchain and Retail: Four
Opportunities
4. Digital Advertising
Is compelling enough to
have big potential
impact on the retail
industry.
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.
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
Blockchain enhancing the supply chain
Enables businesses and
consumers to constantly
be aware of and monitor
where an item is in the
Supply Chain.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Technology Requirements
Requirement 1: Identity and reputation of participants is central to trust
and must be exposed.
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.
Technology Requirements
Requirement 2: Controlled access to information is critical.
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.
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.
Technology Requirements
Requirement 3: Efficiency matters.
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.
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.
Technology Requirements
Requirement 4: Connectivity is intermittent; action must be taken when
disconnected.
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.
Technology Requirements
Requirement 5: Actions must be reversible.
Technology Requirements
Represents a fundamental shift in one of the central tenets of the
technology.
Technology Requirements
Specifically, blockchain technology is founded on the principle of
immutability; once something is committed to the log it never changes.
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
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.
Economic Requirements
With 3D-printing enabling distributed manufacturing, and barriers to
entry around machine learning, enterprises may be forced to adopt
more open systems.
Economic Requirements
The IoT industry is inevitably expanding into more complex ecosystems,
expecting compelling use cases for blockchain will become more
apparent.
Using Blockchain To Secure 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.
Using Blockchain To Secure 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..
Using Blockchain To Secure 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.
Using Blockchain To Secure 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.
Using Blockchain To Secure 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.
Using Blockchain To Secure IoT
The solution to this problem could be a new way of tracking and
distributing security software updates using blockchains.
The 5 Big Problems With Blockchain
1. Blockchain has an environmental cost
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.
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.
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.
The 5 Big Problems With Blockchain:
2. Lack of regulation creates a risky environment
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”.
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”.
The 5 Big Problems With Blockchain:
3. Its complexity means end users find it hard to appreciate the benefits
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.
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.
The 5 Big Problems With Blockchain:
4. Blockchains can be slow and cumbersome
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.
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.
The 5 Big Problems With Blockchain:
5. The “Establishment” has a vested interest in blockchain failing
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.”
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.

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Block Chain Technology in Supply Chain for FMCG

  • 1. Block Chain Technology in Supply Chain for FMCG BY: ANDREW TAN HOWE ID: S8015407J COURSE TITLE: ADVANCED DIPLOMA IN PROCUREMENT AND SUPPLY MANAGEMENT COURSE INTAKE: JANUARY 2018
  • 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. “Smart contracts” stored on the blockchain track contract parties, terms, transfer of ownership, and delivery of goods/ services without legal intervention. Blockchain in Legal
  • 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. Using blockchain to store food supply chain data offers enhanced traceability of product origin, batching, processing, expiration, storage temperatures, and shipping. Blockchain in Food
  • 15. Secure P2P marketplaces can track P2P retail transactions, with product information, shipment, and bills of lading input on the blockchain, and paying via Bitcoin. Blockchain in Retail
  • 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.
  • 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 To Secure 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 To Secure 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 To Secure 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 To Secure 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 To Secure 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 To Secure 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.

Hinweis der Redaktion

  1. https://shift.newco.co/graphic-blockchain-for-every-industry-dfcbdcfe23ea
  2. https://www.coindesk.com/information/why-use-a-blockchain/
  3. https://www.coindesk.com/information/why-use-a-blockchain/
  4. https://shift.newco.co/graphic-blockchain-for-every-industry-dfcbdcfe23ea
  5. https://shift.newco.co/graphic-blockchain-for-every-industry-dfcbdcfe23ea
  6. https://shift.newco.co/graphic-blockchain-for-every-industry-dfcbdcfe23ea
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