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How Blockchain is going to disrupt logistics and supply chain

6d9960b138cbf02b06baed135582573a?s=47 Dcent
June 20, 2018

How Blockchain is going to disrupt logistics and supply chain

An introduction to blockchain, some examples of blockchain projects in the logistics or supply chain space and a look at how underlying trends might play out.



June 20, 2018

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  1. How Blockchain is going to disrupt logistics and supply chain

    David Lockie Dcent.tech @dcentagency
  2. • On trust • Blockchain concepts and jargon • Key

    advantages of blockchain • Examples of blockchain projects • Trends and predictions • Next steps for you • A disclaimer Slides on speakerdeck.com/dcent What will you get from this talk? Dcent.tech @dcentagency
  3. Trust Dcent.tech @dcentagency Photo by Rodion Kutsaev - Unsplash

  4. A brief history of trust Tribes - people have to

    trust everyone in the group, can't trust outsiders Towns - need to trust currency to enable specialised lifestyles and trades Cities - need to trust police and governments to maintain citizen safety International - need to trust institutions for education, government, finance and law Digital - need to trust computers and the corporations that run them -- The history of trust to this point is a story about centralisation -- Blockchain - no need to trust anyone, only need to trust maths Dcent.tech @dcentagency
  5. Trust Dcent.tech @dcentagency Photo by Rodion Kutsaev - Unsplash

  6. Trust Dcent.tech @dcentagency Photo by Rodion Kutsaev - Unsplash

  7. "This is the existential challenge of our times….taking the informed

    risk to join the battle for truth so that facts triumph over fears." Edelman Trust Barometer 2018 http://cms.edelman.com/sites/default/files/2018-02/2018_Edelman_TrustBarometer_Executive_Summary_Jan.pdf The challenge Dcent.tech @dcentagency
  8. "Trust is the lubrication that makes it possible for organizations

    to work." Warren Bennis The opportunity Dcent.tech @dcentagency
  9. Blockchains - decentralised ledger technology, consensus by algorithm, smart contracts

    Smart contracts - programmable contracts, execute on the blockchain when conditions are met Cryptocurrencies - blockchain technology, decentralised currencies, exchange or store of value Coins/tokens - digital representations of an intrinsic or physical assets tracked on a blockchain Oracles - trusted authorities, involved in smart contracts dApps - decentralised apps which use the blockchain itself as their operating system Cryptoeconomics - the protocols that define trade behaviour in a DLT-powered system https://www.legalgeek.co/learn/blockchain-wtf/ Dcent.tech @dcentagency The jargon
  10. Eigenverantwortung Dcent.tech @dcentagency Photo by narya - Unsplash

  11. Dcent.tech @dcentagency The Advantages of Blockchain Technology 1 Decentralisation Transparency

    Data integrity & immutability System & data availability Fast and efficient transactions 2 5 4 3
  12. a1075db55d416d3ca199f55b6084e2115b9345e1 6c5cf302fc80e9d5fbf5d48d https://blockchain.info/tx/a1075db55d416d3ca199f55b6084e2115b9345e16c5cf302fc80e9d5fbf5d48d Bitcoin pizzas Dcent.tech @dcentagency

  13. Bitcoin pizzas Dcent.tech @dcentagency https://twitter.com/bitcoin_pizza/status/976658245325656064

  14. Dcent.tech @dcentagency Examples So let’s pick a few examples of

    how cryptoeconomics will disrupt supply chains and logistics. What if you could trust: 1. Hyperledger 2. Supply chain visibility 3. Trade finance 4. Internet of Things Zooming out, longer term • Trust in supply chain as a key marketing message • “Brand Australia” - competitive advantage of integrated supply chain ecosystems
  15. Dcent.tech @dcentagency An open source project donated by IBM (and

    others) to the Hyperledger Foundation (part of the Linux foundation). A bundle of permissioned blockchains and related tools - high performance out of the box (~5k TPS). Under investigation by UK Land Registry for digitisation of land titles. In use/trials by enterprise e.g. IBM and Walmart for food safety and EverLedger for diamonds. Hyperledger
  16. Dcent.tech @dcentagency Provenance A blockchain platform to help prove the

    provenance of food and drinks supply chain. Case studies include the Coop Origin Trail A project to tackle trust within fragmented supply chain using decentralised graph databases and their own protocol, network and application layers to enable trusted data exchange. Supply chain visibility
  17. Dcent.tech @dcentagency Wave is a Barclays accelerator-backed trade finance project

    that allows for instant document exchange and accelerated/automated remittance of finance along supply chains. Trade Finance
  18. The blockchain is only as useful as the quality of

    the data within it. The concept behind Riddle & Code is to have silicon-level fingerprinting so that devices can be trusted at an individual level as a foundation upon which to build trust about data contributors. Dcent.tech @dcentagency Internet of Things
  19. Dcent.tech @dcentagency There’s a lot happening in the platform space

  20. Dcent.tech @dcentagency For businesses 1. Better real-time visibility across an

    extended supply chain 2. Automatic, audit-quality documentation for compliance 3. Improved economic efficiency through automated, immediate remittance of supply chain finance Cryptoeconomics For consumers 1. Confidence in the provenance of food, drink and consumer goods 2. Ability to assess supply chains against personal values 3. Increased loyalty and trust to brands that align with beliefs
  21. “the fundamentals of the token model...allow communities to govern themselves,

    their economics, and rally a community...to flourish in a way that was previously impossible.” Fred Ehrsam (co-founder of Coinbase), Value of the Token Model “an infinity of subcultures...now blossoms on the Internet — vegans, body modifiers, CrossFitters, Wiccans, DIYers...Millions of people are finding their true peers in the cloud.” Balaji Srinivasan (founder of 21.co) Software is Reorganizing the World Combine these insights and we can imagine a world in which the granularity and transparency of blockchain data gives economic power to very specific communities. https://www.neverstopmarketing.com/wp-content/uploads/2017/07/CMO-Primer-For-The-Blockchain-World-NSM.pdf Purpose Marketing Dcent.tech @dcentagency
  22. Dcent.tech @dcentagency • Tech giants will adopt/release/buy e.g. Uber tokens

    (Rakuten already has) • Everything that can be Tokenized will be Tokenized • Shift towards purpose, authentic value creation, community curation and experience • Instantaneous migration between service providers • Browsers will help manage your online budget • The role of oracles (to provide data for smart contracts) will lead to the growth of importance of trusted authoritative data sources • Improved tools for trusted collaboration could start bypassing retail by allowing consumers and their machine assistants to negotiate directly with wholesalers and manufacturers Trends - my take
  23. Dcent.tech @dcentagency • Read more about these projects • Take

    the free HyperLedger course: https://www.edx.org/course/blockchain-business-introduction-linuxfoundationx-lfs171x • Put some time into reading and learning about blockchain, CCs and DLTs • Consider how use cases you’re interested in • Imagine what a direct-to-consumer experience might look like for your supply chain • Book a free briefing with me by emailing hello@dcent.tech What should you do now if you're interested in this talk?
  24. Dcent.tech @dcentagency DISCLAIMER: Blockchain isn't the right fit for everything

    and you need to do your own research. This is not financial advice. This presentation includes content published from countries all over the world. Persons who access it, agree to do so in accordance with their local laws. All opinions expressed by this author or others are solely the opinion of that individual, and should not be viewed as an endorsement or investment advice. You should not treat any opinion expressed here as a specific inducement to make a particular investment, or follow a particular strategy, but only as an expression of that individual’s opinion. Statements and opinions are subject to change without notice. Past performance is not indicative of future results. Dcent does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested. Investments or strategies mentioned may not be suitable for you. The material discussed here does not take into account your particular investment objectives, financial situation or needs, and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned. Before acting on information on this presentation, you should consider whether it is suitable for your particular circumstances, and strongly consider seeking advice from your own financial or investment adviser.
  25. Thank you - Any questions? Dcent.tech @dcentagency Dcent is a

    Pragmatic brand