InfinIT Future Briefings 1: Optimér supply chain management via blockchain

1. BEYOND BITCOIN: THE EMERGENCE OF THE
BLOCKCHAIN WORLD
PROF. DR. ROMAN BECK
@roman_beck
beck@itu.dk
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Prof. Dr. Roman Beck | Professor
IT University of Copenhagen | Rued Langgaards Vej 7 |
DK-2300 Copenhagen S | Denmark
beck@itu.dk | www.itu.dk |
www.timegroup.info | www.blockchainschool.eu | phone +45 7218 5323 | skype
roman-beck | twitter @roman_beck
Lead Researcher | Head of Research Group Technology, Innovation Management
& Entrepreneurship (TIME) | Head of European Blockchain Center | AIS Council
Representative for Europe, Middle East, Africa | Head of Dansk Standard ISO TC
307 Blockchain & Distributed Ledger Technology Group | Senior Editor, The DATA
BASE for Advances in Information Systems (DataBase) | Associate Editor,
Business and Information Systems Engineering (BISE) | Editorial Board, Journal of
Business Economics

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EVERYBODY IS TALKING ABOUT IT…
Dr. Jens Weidmann,
president of the Deutsche
Bundesbank
He compared
cryptocurrencies with other
useful innovations which
have not made it into
mainstream use

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Decentralization It operates without a central decision maker or
hierarchy.
Consensus It ensures agreement about the state of the
blockchain and thus provides a single version of
the truth.
Validity It accepts new entries only if they adhere to a
predefined protocol.
Immutability It accepts new entries only if they build upon
unmodified previous entries.
Authentication It allows tracing back every entry to a private key.
KEY CHARACTERISTICS OF BLOCKCHAIN WORLD

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Blockchain Economy
Digital Economy Blockchain Economy
Ownership and
digital rights
• Network as “nexus of
contracts”
• Ownership predominantly
defined as private
ownership by bi- and
multilateral written
agreements in form of
contracts
• Network as “nexus of smart contracts”
• Ownership always defined as
common ownership, through the
tokenization of digital rights
• The specification of ownership and
digital rights needs to be organized in
a decentral environment.
Traceability
and
accountability
• Defined in inter-personal
as well as inter- and intra-
organizational settings
• Traceability and accountability in the
network, delegated to the blockchain
Incentives and
mechanism
design
• Digital processes in
hierarchies for value
creation of digital goods
• Incentive to create private
goods and club goods
• Digital processes in peer-to-peer
exchanges for value creation of
blockchain-based digital goods
• Incentives to create club goods and
public goods
• New network-based processes which
incentivize the peer-to-peer nodes to
reach consensus
THE BLOCKCHAIN ECONOMY

6. … record the quantity and transfer of assets as they
move between supply chain nodes,
… track purchase orders, change orders, receipts,
shipment notifications, or other trade-related
documents,
… assign or verify certifications or certain
properties of physical products,
… link physical goods to serial numbers, bar
codes, digital tags like RFID, etc., and
… share information about manufacturing process,
assembly, delivery, and maintenance of products with
suppliers and vendors.
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BLOCKCHAIN HAS THE POTENTIAL TO BECOME THE
OPERATING SYSTEM OF THE SERVICE ECONOMY
https://www.loaddelivered.com/blog/why-blockchain-is-a-game-changer-for-supply-
chain-management/
Blockchain solutions have the potential to become the “supply chain
operating system” to…

7. BILL OF LADING – THE MAIN DOCUMENT OF
INTERNATIONAL TRADE ON THE BLOCKCHAIN
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• Three main purposes:
• Act as cargo receipt
• Act as evidence of the contract
of carriage
• Act as title to the cargo
• The Bill of Lading process has
many participants
• Physical documents sent around
by couriers
• Can get lost
• Do not make it through the
process before goods arrive
• Subject to fraud
• Costly handling costs
• Negative environmental
impacts/CO2 footprint

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EUROPEAN BLOCKCHAIN CENTER
IN COPENHAGEN

9. CONTACT INFORMATION
Prof. Dr. Roman Beck
Lead Researcher
Head of Research TIME Group
Head of European Blockchain Center
IT University of Copenhagen
Rued Langgaards Vej 7
DK-2300 Copenhagen S, Denmark
beck@itu.dk|www.romanbeck.com
phone +45 7218 5323 | twitter @roman_beck
For further information please contact me!
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