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Blockchain Primer December 2017 Parul Singh, Principal @Founder Collective
Blockchain Primer
December 2017
Parul Singh, Principal @Founder Collective

@parulia - 12-01-17

1.

Context

Why talk about blockchain?

1. Context Why talk about blockchain? @parulia - 12-01-17

@parulia - 12-01-17

In June 2017, the cryptocurrency market cap grew 4X to break $100B. @parulia - 12-01-17

In June 2017, the cryptocurrency market cap grew 4X to break $100B.

In June 2017, the cryptocurrency market cap grew 4X to break $100B. @parulia - 12-01-17

@parulia - 12-01-17 3

$345,777,000,000

 
   
 

Nov 29, 2017, Total Cryptocurrency Market Cap (55% is BTC)

 

Source: Coinmarketcap.com

@parulia - 12-01-17

5 Here are the “early adopters” in blockchain technology between 2014-2017. @parulia - 12-01-17
5
Here are the “early adopters” in blockchain technology between 2014-2017.
@parulia - 12-01-17

“Are ICOs the new VC?”

“Are ICOs the new VC?” 6 Meanwhile, ICO fundraising speeds past “traditional” VC investment in June

6

Meanwhile, ICO fundraising speeds past “traditional” VC investment in

June 2017.

 
 

@parulia - 12-01-17

7 Regulation is coming too. In Nov 2017, the SEC took the unusual step of warning
7
Regulation is coming too. In Nov 2017, the SEC took the unusual step of warning against celebrity
endorsements for ICOs.
@parulia - 12-01-17
8 Blockchain use cases seem compelling enough to warrant investment from organizations as diverse as Deloitte,
8
Blockchain use cases seem compelling enough to warrant investment from organizations as
diverse as Deloitte, the FDA and Maersk.
@parulia - 12-01-17
Startups are preparing. In April 2016 - AirBnB acquihired a bitcoin payments team to help them

Startups are preparing. In April 2016 - AirBnB acquihired a bitcoin payments team to help them keep up.

@parulia - 12-01-17

In October 2017 - MIT adds blockchain verified digital diplomas @parulia - 12-01-17

In October 2017 - MIT adds blockchain verified digital diplomas

@parulia - 12-01-17

2.

Fundamentals

Let’s review what’s under the hood.

2. Fundamentals Let’s review what’s under the hood. @parulia - 12-01-17

@parulia - 12-01-17

Blockchain will do for transactions what the internet did for information. Gina Rometti, CEO IBM
Blockchain will do for
transactions what the internet
did for information.
Gina Rometti, CEO IBM
“ Blockchain will do for transactions what the internet did for information. Gina Rometti, CEO IBM

@parulia - 12-01-1712

From an internet of bits we are moving toward the internet of value. @parulia - 12-01-17

From an internet of bits we are moving toward the internet of value.

From an internet of bits we are moving toward the internet of value. @parulia - 12-01-17

@parulia - 12-01-1713

Evolution of the network: from internet > decentralized blockchain. Put another way: blockchain makes it possible

Evolution of the network: from internet > decentralized blockchain. Put another way:

blockchain makes it possible for p2p communication to be secure enough for transactions.

@parulia - 12-01-17

Key concepts

Blockchain

The underlying technology

Distributed database (aka ledger)

Cryptocurrency

Application of blockchain for digital currency

Decentralized using blockchain, secured using cryptographic hashes (aka fancy math)

Bitcoin

A specific cryptocurrency

The first fully-implemented decentralized

cryptocurrency

@parulia - 12-01-17

Blockchain Stack ● ● ● ● ● Consensus layer: a protocol that describes the format of
Blockchain Stack
Consensus layer: a protocol that describes the format of a ledger that
is publicly visible and a consensus function that anyone can use to
determine which of multiple candidate ledgers is the consensus ledger.
The protocol must also allow new blocks to be added to the ledger.
Mining layer: a protocol that incentivizes parties to maintain the
consensus and add blocks to the ledger.
Propagation layer: a protocol that determines how the ledger and
blocks are transmitted between nodes in the network.
Semantic layer: a specification of how new blocks must relate to
previous blocks and a protocol for verifying conformity with the
specification.
Application layer: application code that implements some desired
functionality.

@parulia - 12-01-17

How a blockchain transaction works 17 That said, understanding how the technology works is like understanding
How a blockchain transaction works
17
That said, understanding how the technology works is like understanding MySQL replication - it
doesn’t help you appreciate Pinterest or Uber. The use cases are what matters.
@parulia - 12-01-17

3.

Use Cases

We don’t invest in technologies, we prefer to invest in use cases - and that filter applies here.

3. Use Cases We don’t invest in technologies, we prefer to invest in use cases -

@parulia - 12-01-17

Blockchain has four key functions 19 @parulia - 12-01-17
Blockchain has four key functions
19
@parulia - 12-01-17
Key sectors and blockchain use cases @parulia - 12-01-17
Key sectors and blockchain use cases
@parulia - 12-01-17
Some anticipate the biggest impact in fintech @parulia - 12-01-17
Some anticipate the biggest impact in fintech
@parulia - 12-01-17
But all of these industries/use cases may be disrupted @parulia - 12-01-17 22
But all of these industries/use cases may be disrupted
@parulia - 12-01-17 22
Joe wires money to a company Current way: Problems: New way: 1) Joe gets wire info
Joe wires money to a company
Current way:
Problems:
New way:
1)
Joe gets wire info
Joe sends the
wire command to
the bank
The bank sends
the money to the
receiving bank
1)
2)
2)
3)
3)
Everything has to
go through the
bank
The bank
charges a fee
You can spoof
the wire
command
1)
2)
3)
4)
Joe gets wallet
address (public key) of
company
Joe sends amount to
recipient
The blockchain
records the
transaction
The company receives
the payment (verified

via ledger)

@parulia - 12-01-17

Noah applies for a mortgage

Current way:

1)

Noah fills out

2)

an application Lender checks Noah’s credit score

Problems:

1)

The system of record

2)

is massively insecure (equifax) Transactions require

3)

verification Many parts can be

4)

spoofed Escrow is expensive

New way:

1)

Noah fills out an

2)

application Digital identity &

3)

verification for: credit rating, original asset ownership, transfer of ownership, payment Faster & cutting out govt. / intermediaries

@parulia - 12-01-17

Parul goes to the doctor

Current way:

1)

Parul contacts a doctor

2)

who is preapproved by my insurer Parul visits dr who

3)

enters notes into an EHR Parul visits another dr

4)

who must get written permission for EHR access Insurers need to verify every procedure before payment

Problems:

1)

2)

Slow and inefficient Multiple (sometimes written!) confirmations needed for insurer approval, transfer of medical records, and payments

New way:

1)

EHR is replaced by a

2)

secure blockchain Insurer approvals are

3)

verified by blockchain Payments are sent more quickly via blockchain

@parulia - 12-01-17

4.

Blockchain

102

Going deeper

4. Blockchain 102 Going deeper @parulia - 12-01-17

@parulia - 12-01-17

“Every large paradigm in the history of the human species thus far narrowed or completely closed
“Every large paradigm in the history of the human
species thus far narrowed or completely closed
some large gap; blockchain will narrow or
completely close a large gap as well. The printing
press closed the knowledge gap, the steam engine
closed the power gap, and the Internet is closing the
distance gap. Blockchain stands to close the
exponentially expanding trust gap.”
— Richie Etwaru
“ “Every large paradigm in the history of the human species thus far narrowed or completely

@parulia - 12-01-1727

Five Key Takeaways

  • 1. Blockchain will do for transactions what the internet did for information.

  • 2. Just like the internet, we can expect to see disruptive business models, “picks & shovels” / infrastructure businesses, and existing industries incorporating new technologies into their models.

  • 3. Financial institutions are heavily investing in blockchain technologies (maybe the way the military invested in early internet). IBM estimates that 65% of large financial companies will have blockchain systems in production by 2019.

  • 4. Open information, frictionless / costless / near instantaneous transactions & smart contracts will engender business models we probably can’t envision yet.

  • 5. Increasingly, blockchain companies are going directly to insiders via ICOs and bypassing traditional VC.

Five Key Takeaways 1. Blockchain will do for transactions what the internet did for information. 2.

@parulia - 12-01-17

Blockchain 101 key concepts ▪ ▪ Contracts, records and transactions Decentralized ledger fixes many problems of
Blockchain 101 key concepts
Contracts, records and transactions
Decentralized ledger fixes many problems of the
internet - reducing single point of failure scenarios
Enabling p2p transactions - beyond file sharing
Cutting out intermediaries - increasing speed +
transparency

@parulia - 12-01-17

Blockchain 102 key concepts ▪ ▪ Transparency + disintermediation + trusted transactions - companies will be
Blockchain 102 key concepts
Transparency + disintermediation + trusted
transactions - companies will be disrupted by new
trust models
Network effects on steroids - tokens create incentives
to stay within a network that you partially own
Early adopter incentives - generating froth
Looking around corners
Government & currency
Disrupting VC itself

@parulia - 12-01-17

Five Significant Obstacles to Adoption

  • 1. This stuff is hard to explain.

  • 2. Blockchain technology is immature. (Doesn’t scale yet, buggy, incomplete)

  • 3. Adoption takes time. As a parallel, TCP/IP took 30 years.

  • 4. Single use and localized applications will emerge first, even so, we are at *early, early* adopter phase.

  • 5. Trust, coordination, and technology becoming invisible to consumers have to happen before this widely takes hold.

Five Significant Obstacles to Adoption 1. This stuff is hard to explain. 2. Blockchain technology is

@parulia - 12-01-17

Key Blockchain Risk Factors ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Lack of scalability: decentralized
Key Blockchain Risk Factors
Lack of scalability: decentralized design require that every node fully participate in
every transaction which serves as a throttle on total transactions for major
blockchains
High cost per transaction: as is, this makes blockchain impractical for certain use
cases
Vulnerability to hacks and bugs: high-profile + expensive examples include DAO
($50M stolen) and Mt Gox ($470M stolen)
Tech immaturity: interoperability doesn’t exist, standards are being devised, all
the v.0.x problems of any nascent technology exist now
Regulatory environment: has not caught up to innovations in the field
“Burning bank”: participation based distributed ledger systems may face the
same problem as a bank experiencing a “run”
“Fake news” / mob rule: if a distributed system uses consensus to say what’s true,
what happens if 90% of the people are lying?
Inertia: getting enterprises and individuals to switch over to a new system requires
overcoming “good enough” bias

@parulia - 12-01-17

5.

Representative

Startups

We’re in the early activity period

 
5. Representative Startups We’re in the early activity period @parulia - 12-01-17

@parulia - 12-01-17

OpenBazaar

 

Sector: P2P Marketplace

Description: Decentralized cryptocurrency marketplace that enables its users to trade online Location: Washington DC Founded: 2014 Funding to date: $4.2M Investors:

Digital Currency Group Andreessen Horowitz BlueYard Capital Union Square Ventures William Mougayar Andreessen Horowitz

OpenBazaar Sector: P2P Marketplace Description: Decentralized cryptocurrency marketplace that enables its users to trade online Location:

@parulia - 12-01-17

MedRec

Sector: EMR via Blockchain

Description: Decentralized record management system for EMRs that uses blockchain technology to manage authentication, confidentiality, accountability, and data sharing. A modular design integrates with providers' existing, local data-storage solutions, enabling interoperability.

Location: Cambridge, MA

No investors or funding raised - MIT Media Lab project

https://www.media.mit.edu/research/grou

ps/1454/medrec

MedRec Sector: EMR via Blockchain Description: Decentralized record management system for EMRs that uses blockchain technology

@parulia - 12-01-17

The DAO

Sector: Finance / VC Description: Largest ever crowd-sourced venture-like fund

Funding: raised $150M between April-May 2016. Later was hacked &

shut down by exchanges in September

2016

Investors: 11,000 crowdfunders, none of whom owned more than 4% of fund

Competitors: us??

Notes: DAO failed but it’s successors will learn from it’s mistakes. The SEC also later ruled that they were selling securities, so path forward is unclear.

The DAO Sector: Finance / VC Description: Largest ever crowd-sourced venture-like fund Funding: raised $150M between

@parulia - 12-01-17

Lightning Network

Sector: Infrastructure

Description: Software to allow crypto holders to transfer funds w/o publishing to the blockchain, possibly a solution to the bitcoin scalability problem

Funding: Will raise soon? Investors: N/A Location: San Francisco Founded: 2017

Lightning Network Sector: Infrastructure Description: Software to allow crypto holders to transfer funds w/o publishing to

@parulia - 12-01-17

Fintech + Blockchain

   

Company

Description

Location

URL

Use Case

Year Founded

Funding Raised

Funded By

   
       

Settlements

             

SETL

Platform for settlements and payments

UK

Payments

  • 2015 $39,000,000

Deloitte

 

Decentralized clearing machines for financial OTC

   

Clearing Settlements

   

Nyca Partners

   

clearmatics

markets

UK

Payments

  • 2015 $1,000,000

Route 66 Ventures

       

Clearing

   

Medici Ventures Hudson Technologies Celeridem Capital Management Wicklow Capital Kayon Partners

     

Proprietary Smart Security® technology allows complex financial instruments to be modeled in an

Settlements

SenaHill Partners

easy to understand programming language and fully

Payments

DHVC

     

Symbiont

digitized onto a distributed ledger

NY

Smart Contracts

  • 2015 $7,000,000

Atlantic Merchant

             

Jungle Ventures Silver8 Capital RRE Ventures

   

Consumer digital wallet supporting payments and

Payments

Foxconn Technology Group Arbor Ventures IGNIA American Express Business Travel Lerer Hippeau Ventures

     

Abra

transfers for bitcoin and over 50 fiat currencies

Mountain View

Transfers

  • 2014 $30,000,000

First Round Capital

     
             

Digital Finance Group GV TechU Angels SV Angel

   

Institutional derivatives exchange platform for digital

Trading

Blockchain Capital Lightspeed Venture Partners Jeremy Liew Eric Kagan Funders Club

     

LedgerX

currencies

NY

Clearing

  • 2014 $12,900,000

Cross Pacific Capital Partners

             

Draper Associates

     

Expanding Capital

Battery Ventures

Greylock Partners

IVP (Institutional Venture Partners) Todd Chaffee

   

Largest dgital currency wallet service to buy and sell

Payments

Tusk Ventures Jordan Nof

 

@parulia -

12-01-17

Coinbase

bitcoin

SF

Transfers

  • 2012 $217,000,000

Spark Capital

Supply chain + Blockchain

   

Company

Description

Location

URL

Use Case

Year Founded

Funding Raised

Funded By

   
 

Provide transparency tools that assemble image, identity and location to create profile, product and story pages; provide traceability system confirms identities and product attributes in tracking items through supply

   

Tracking for all stakeholders Transparency for end

   

Digital Currency Group Plug and Play Tech Center John Taysom Omidyar Group Merian Ventures

       

Provenance

chains

UK

users

  • 2014 $1,000,000

Humanity United

     
             

Iterative Capital Management, L.P. Vinny Lingham Pantera Capital Dr. Steven (Seven) Waterhouse

   

Secures IoT device identities, data, and event logs and automates IoT-dependent business logic through smart contracts and offers a blockchain as a service

Crypto identity for physical goods Tracking via IoT

Colbeck Capital Solon Mack Capital Mandra Capital Social Starts

     

Chronicled

platform for supply chain ecosystems

SF

Smart Contracts

  • 2014 $9,000,000

Seattle Seahawks

             

Mercury Partners LLC Rainer Busch Oak Investment Partners Bandel Carano, Tom Huseby OMERS Ventures

     

Patended RFID technology for real-time asset tracking

Tracking via IoT

Jim Orlando Tom Huseby InnoCal Venture Capital

     

Mojix

and supply chain management

LA

Analytics platform

  • 2004 $85,500,000

Red Rock Ventures

                   

Context Labs

Secured distributed ledger technologies, network graph analytics, data interoperability and visualization for supply chain

Cambridge, MA

Crypto identity for physical goods tracking

N/A

N/A

N/A

     
                   

Bext360

Develops technologies that streamline critical supply chains in emerging economies

Denver, CO

Tracking via IoT Analytics platform

  • 2016 $1,200,000

SKS Venture Partners

     
 

Offers a universal, secure ledger by which SKUs can

               

attest to digitally to their orgins and attributes. Products include cryptographically secure smart contracts

   

Skuchain

governing an entire purchase cycle and Proof of Provenance codes, a crypto-serialization solution to track flow of goods on SKU level.

Mountain View

Tracking via IoT Trade Finance Smart Contracts

  • 2014 Digital Currency Group

N/A

Amino Capital Fenbushi Capital

 

@parulia -

12-01-17

                   

Marketplaces + Blockchain (1/2)

   
       
         

Year

Funding

       

Company

Description

Location

URL

Use Case

Founded

Raised

Funded By

                     

Digital Currency Group Andreessen Horowitz BlueYard Capital Union Square Ventures

 

William

Mougayar

Decentralized cryptocurrency marketplace that enables its

Washington

Andreessen Horowitz

OpenBazaar

users to trade online

DC

g/

P2P Marketplace

  • 2014 $4,200,000

Union Square Ventures

 

Arcade City

P2P ridesharing platform connecting drivers to riders

Austin, TX

arcade.city

P2P Marketplace

  • 2016 N/A

 

N/A

     
       

Ecommerce

           

Marketplace

Payment solution technology for marketplaces,

Crowdfunding

   

Lemonway

ecommerce, crowdfunding

France

m

Payments

  • 2007 $600,000

N/A

 

Proof of Process Technology enables traceability, transparency and data integrity, thus reducing costs and

         

BNP Paribas Cardif NASDAQ

     

complexity of the interactions between partners, customers, auditors, and regulators. The solution offers a common audit trail, secured by blockchains and cryptography, where stakeholders can collaborate without revealing their private

Digital Currency Group Open CNP

Otium Capital Bruno Raillard, Pierre Entremont

 

Stratumn

and confidential data

France

Peer-to-Peer Network Proof of Process Protocol

  • 2015 $9,667,000

Otium Capital

 

Launched Brooklyn Microgrid, a community-powered

   

Transactive grid (hybrid device that measures a building’s energy production and use, and communicates

           

microgrid here in Brooklyn. This means our participants can engage in a sustainable energy network and choose their

with the network to collectively manage energy)

Centrica Braemar Energy Ventures

 

LO3 Energy

preferred energy sources, locally.

Brooklyn, NY

m

DTL

  • 2012 N/A

ConsenSys

       

@parulia - 12-01-17

Marketplaces + Blockchain (2/2)

   
       
         

Year

Funding

       

Company

Description

Location

URL

Use Case

Founded

Raised

Funded By

             

Yuan Capital

     

Clarissa Zhang

 

RRE Ventures

21.co built first computer with native hardware and software

Peter Thiel

support for the Bitcoin protocol. Developers use it to build

Andreessen Horowitz

bitcoin-payable apps and services. 21.co rebranded to launch

Mark Pincus

Earn.com, a token-based social network, where senders pay users

San Francisco,

Khosla

Ventures

 

in digital currency to complete tasks

CA

Marketplace

  • 2013 $121,050,000

Qualcomm Ventures

 

Ethereum-based decentralized platform that can be used to create “newsrooms” and “stations” — blockchain-based marketplaces

                 

where citizens and journalists form communities around a shared purpose and set of standards, financially support factual reporting, nd investigative work, and substantially limit misinformation

Smart Contracts

   

Civil

through effective collaborative-editing methods

NY

Marketplace

  • 2017 $5,000,000

ConsenSys

 

CyberMiles is a blockchain protocol being developed and

                 

optimized for business and marketplace applications. CM is being developed as a “fat protocol”, consisting of a blockchain-based “virtual machine”, and defined modules of middle-layer software stacks operating outside the chain, to support decentralized

   

processes governed by smart contracts implemented on the network.CM is working closely with 5miles, a leading c2c marketplace operator with more than 12 million users in the US. 5miles is expected to be the first platform to utilize CyberMiles’

Smart Contracts

   

CyberMiles

blockchain protocol.

N/A

m

Marketplace

  • 2017 ICO

ICO (+

partnership with 5Miles)

bitJob

P2P MarketPlace for students, freelancers and employers.

Tel Aviv

Marketplace

 
  • 2016 $2,000,000

ICO

     
 

Full and comprehensive combination of e-commerce services – such as smart contracts, cryptocurrency payments, integration with

 

Ecommerce

 

4 425 ETH

       

Storiqa

third-party services and 24/7 support

Switzerland

m

Payments

  • 2017 ($1.6M USD)

ICO

@parulia - 12-01-17

Healthcare + Blockchain

   
       
         

Year

     

Company

Description

Location

URL

Use Case

Founded

Funding Raised

Funded By

 

Decentralized record management system for EMRs

             

that uses blockchain technology to manage authentication, confidentiality, accountability, and data sharing. A modular design integrates with providers'

   

existing, local data-storage solutions, enabling

MedRec

interoperability.

Cambridge, MA

EMR via Blockchain

N/A

N/A

N/A

             

KEC Ventures Jeff Parkinson Pelion Venture Partners Ben Dahl Digital Currency Group

 

Partner with industry leaders (Philips) to identify problems they want to solve for their network, and then launch a federated blockchain to support the pilot running on GemOS (OS enables connecting to any

RRE Ventures Tiller Partners Fenbushi Capital Blockchain Capital Danmar Capital Amplify.LA

 

Gem

blockchain, data store, access controls)

LA

  • 2013 $12,500,000

Robert Wolfson

 
               

Google

DeepMind

Building an auditing system for healthcare data

UK

th/

EMR via Blockchain

  • 2010 N/A

Google

       

Payments

       

Identity

   

ERP

Consortium of healthcare companies focused on

IoT

HashedHealth

ausing blockchain and DLT

Nashville, TN

Clinical Trials

  • 2016 $1,000,000

Martin Ventures

 

Engine for collecting data and recording it in the

   

Data Collection

       

Tierion

blockchain

Hartford, CT

Hash API

  • 2015 $26,000,000

ICO

 
 

Individual-centric data store for health information,

   

Personal Record

       

owned & controlled by the patient, built for security &

Management via

N/A (raised $500K

YouBase

privacy with blockchain

Englewood, CO

Blockchain Wallet

  • 2016 $1,000,000

 

@parulia - 12-01-17

6.

Cryptomania

...

6. Cryptomania ... @parulia - 12-01-17

@parulia - 12-01-17

@parulia - 12-01-17 44

@parulia - 12-01-1744

“At its core, bitcoin is a smart currency, designed by very forward-thinking engineers. It eliminates the
“At its core, bitcoin is a smart currency, designed by
very forward-thinking engineers. It eliminates the
need for banks, gets rid of credit card fees, currency
exchange fees, money transfer fees, and reduces
the need for lawyers in transitions… all good things.”
Peter Diamandis
Founder and chairman of the X Prize Foundation

@parulia - 12-01-17

46 @parulia - 12-01-17
46
@parulia - 12-01-17
@parulia - 12-01-1747
@parulia - 12-01-1747
@parulia - 12-01-1748
@parulia - 12-01-1748

7.

Appendix

Other stuff you should probably know

7. Appendix Other stuff you should probably know @parulia - 12-01-17

@parulia - 12-01-17

Blockchain is a vast, global distributed ledger or database running on millions of devices and open
Blockchain is a vast, global distributed ledger or
database running on millions of devices and open to
anyone, where not just information but anything of
value — money, but also titles, deeds, identities, even
votes — can be moved, stored and managed securely
and privately. Trust is established through mass
collaboration and clever code rather than by powerful
intermediaries like governments and banks.
Alex Tapscott, Author of the Blockchain Revolution

@parulia - 12-01-17

@parulia - 12-01-17 51

@parulia - 12-01-1751

Supply chain use cases (1 / 5) Use Case Problem Chronicled Solution Cold Chain Monitoring ●
Supply chain use cases (1 / 5)
Use Case
Problem
Chronicled Solution
Cold Chain Monitoring
Shipments needing constant
refrigeration are spoiled if they lose
temperature
Cause of temperature loss and
liability is unclear in complex global
supply chains
Regulation requires securing of the
"event logs" in the cold chain
inability to take corrective actions in a
timely manner
Temperature monitoring via low
cost, disposable and reusable
sensors
Regulatory compliance by design,
including CFR 21 Part 11
Position tracking
Real-time alerts
Easy deployment option based on
SmartPhone and NFC/BLE
communication
Large scale implementations
supported via IoT gateways
Integration with ERP and supply
chain solutions

@parulia - 12-01-17

Supply chain use cases (2 / 5)

Use Case

 

Problem

 

Chronicled Solution

Tamper Proof Sealing

Packaging can be copied or tampered and counterfeits sold High-precision products, devices, machines, and hardware can fail if tampered Banker's boxes with archival documents are difficult to seal

CryptoSeal provides strong cryptographic identity to a physical item with a tamperproof sticker Produced in various shapes and sizes, round, thermometer-shaped, etc. Tamper-evident adhesive sticker similar to registration sticker on license plate and breaks into tiny pieces

Supply chain use cases (2 / 5) Use Case Problem Chronicled Solution Tamper Proof Sealing ●

@parulia - 12-01-17

Supply chain use cases (3 / 5) Use Case Problem Chronicled Solution Supply Chain ● Compliance
Supply chain use cases (3 / 5)
Use Case
Problem
Chronicled Solution
Supply Chain
Compliance
Inability to establish the legitimacy
of inter-party event logs
Traditional tracking solutions are
hosted in private databases and
not interoperable
High integration costs because
multi-party data exchange
Centralized solutions create
vendor lock-in
Decentralized,
blockchain-based back end
Hub and spoke data exchange
to minimize integration costs
Truthful and legit by design via
an immutable ledger
Easy integration with existing
ERP and SCM systems,
packaging line solutions, and
hardware scanners

@parulia - 12-01-17

Supply chain use cases (4 / 5) Use Case Problem Chronicled Solution Supply Chain ● Automation
Supply chain use cases (4 / 5)
Use Case
Problem
Chronicled Solution
Supply Chain
Automation
Goods, documents, and money
flows in supply chain are all
manual processes (e.g.,
payments are made upon manual
verification of delivery)
The friction between IoT
platforms, ERP, supply chain, MS
Word, and financial
record-keeping systems results in
a slow digitization of supply chain
Untrusted data from IoT devices
(e.g., GPS, temperature loggers)
cripple the ability to automate
business processes and is not
secure enough to support
financial flows
Smart contracts, i.e. business
contracts codified on the
blockchain, can support
multiple-parties including
shipper, receiver, and also
third-party insurance and
financing parties
When a shipment with a trusted
IoT chip arrives, and signs a
random string sent from the
hardware scanner, this can be
used as evidence of arrival in
the smart contract, and money
flow can be automated

@parulia - 12-01-17

Supply chain use cases (5 / 5) Use Case Problem Chronicled Solution Secure Product ● Identity
Supply chain use cases (5 / 5)
Use Case
Problem
Chronicled Solution
Secure Product
Identity
Serial number, QR code, UPC
code, and barcode systems are
all easily cloned and copied
The security is insufficient to
support supply chain automation
or M2M identity verification and
payments
Approximately $2 trillion per year
of luxury products are
counterfeited
NFC or BLE "identity chips" are
embedded into products at time
of manufacture
The chip can be used to power
identity verification,
authentication, as well as
consumer engagement
experiences
Smart phone-based
experiences include, buy-it-now,
operating manual, warranty
claim card, etc

@parulia - 12-01-17

Further reading: ▪ ▪ ▪ ▪ ▪ CoinDesk State of Blockchain Q3 2017 CB Insights Bitcoin
Further reading:
CoinDesk State of Blockchain Q3 2017
CB Insights Bitcoin & Blockchain reports
Total Cryptocurrency Market Capitalization
Blockgeeks - community & additional resources on technical topics
Ty Danco’s Introductory Syllabus
Essays:
The Truth About Blockchain - Harvard Business Review, Jan 2017
We Already Know Blockchain's Killer Apps - Hackernoon
Making Sense of Smart Contracts - Coindesk
Blockchain - Why Care - Russ Wilcox @Pillar
Blockchain Massively Simplified - Richie Etwaru, TedX Talk
Stop Defining Blockchain in Terms of Today's Commercial Internet - Fast
Company
@parulia - 12-01-17