This document provides an overview of blockchain technology applications in logistics and transportation. It discusses several enterprise blockchain projects involving major companies like Maersk, IBM, Walmart, and Microsoft to improve supply chain management and tracking of goods. Consortia funded by governments in countries like Germany and Finland are also mentioned as working on blockchain solutions for secure document management and data sharing across the logistics industry. The document aims to illustrate the potential of blockchain technology to increase transparency, efficiency and reduce costs in supply chain and transportation processes.
1. IoT & BLOCKCHAIN IN
LOGISTICS AND TRANSPORTATION
Meetup at NextBigThing
Berlin, July 20, 2017
2. Page 2
ABOUT ME
Brief CV
• 25 years senior management in CE/IT/telco biz
• Companies: Sony, Deutsche Telekom, Sharp
• Since 2011 focus on the digital transition
• Experienced in the implementation of digital technologies
and applications e.g.:
• e-Commerce since 1998
• Renewable energies since 2004
• Internet of Things since 2011
• Digital Education since 2014
• Blockchain since eof 2015 -> CHAINSTEP since 05/17
5. A Blockchain is a
decentralized data
structure that allows
participants to transact
directly with each other
and stores the state and
history of participants’
transactions.
10. Page 10
KEY BENEFITS
BLOCKCHAIN TECHNOLOGY
increased transparency
improved risk diversification
automated regulatory oversight
less systemic risk
internal record keeping
documentation processing
multiparty process compatibility
M2M and AI on the internet (IoT)
more automation
cryptographically secured/validated
accountability and provenance
ownership tracking
more security
increased efficiency
decreased costs
faster processing
disintermediation
14. Page 14
ETHEREUM
BLOCKCHAIN APP PLATFORM
Vitalik Buterin
Ethereum Inventor
“If Bitcoin is money over the internet,
Ethereum is like relationships over
the internet.”
https://www.youtube.com/watch?v=x7Y4Qq8qPR8
16. Page 16
Primavera De Filippi
National Center of Scientific Research (CNRS), Paris
“The term smart contract
can be so confusing.
Really it is just a self-
executing piece of code on
a distributed ledger.”
SMART CONTRACTS
NEITHER SMART NOR CONTRACTS?
Picture: BlockchainNews
17. Page 17
THE BASIC PRINCIPLES
OF SMART CONTRACTS
Source: http://blockgeeks.com/guides/smart-contracts/
18. Page 18
ORACLES
Source: Dr. Jörn Heckmann, CMS HascheSigle
Digital
issues
non-digital
issues
Trustful sources
(external)
Blockchain
(internal)
19. Page 19
CONTRACT
EVOLUTION
Contracts no no no
Digitized contracts yes no no
Contract analysis yes yes no
Smart contracts yes yes yes
Source: Dr. Jörn Heckmann, CMS HascheSigle
20. Page 20
SMART CONTRACTS
CHALLENGES
CAUTION Must not be designed so carelessly that new complexity is introduced
DANGERS It could prove very awkward, if not impossible, to unwind a feral smart contract given
the technology challenge for judges and arbitrators and any jurisdictional maze
CHALLENGE Getting the technology right and making it very very easy to use is the challenge
DETERMINISM Contracts should be the same, regardless of who looks at them and when
SMART CONTRACTS MUST BE SIMPLE TO UNDERSTAND AND EXECUTE!
21. Page 21
REMEMBER „ATOMIC“ AND YOU
KNOW WHAT BLOCKCHAIN OFFERS*
Programmable ASSETS
Programmable TRUST
Programmable OWNERSHIP
Programmable MONEY
Programmable IDENTITY
Programmable CONTRACTS
* based on „The Business Blockchain“ by W. Mougayar
25. Page 25
PUBLIC VS PRIVATE BLOCKCHAIN -
REVOLUTION VS EVOLUTION
Private blockchain / DLTPublic blockchain
new paradigm
new rulebook
uncomfortable
disruptive innovation
status quo (more or less)
old rulebook
comfortable
efficiency innovation
evolutionaryrevolutionary
Source: https://bitsonblocks.net/2016/05/09/confused-by-blockchains-revolution-vs-evolution/
Industrial workflow toolsBitcoin and cryptocurrencies
26. Page 26
COST VS SECURITY TRADEOFF
OF BLOCKCHAIN TYPES
Permissioned
private ledger
Permissioned
public ledger
Unpermissioned
public ledger
Low Security High
Low Cost High
Source: Credit Suisse research
32. Page 32
BLOCKCHAIN
IN USE
Key wordsCategories
Authenticity
eCommerce
Energy
Enterprise
…
SCM
Security
Social media
Storage
...
Public
Enterprise
Info
Concept
Live
Consortium
Digital Asset
https://www.chainstep.com/use-cases/?lang=en
33. Page 33
BLOCKCHAIN IN USE:
THE MOST IMPORTANT PROJECTS
https://www.chainstep.com/use-cases/
„Blockchain in use“ segments
Segment No. of projects*
Finance 108
Enterprise 44
Supply Chain Mgt 40
Government 34
Internet of Things 22
Security 18
Energy 18
Entertainment 12
* As of July 3, 2017, 355 projects in total, multiple tagging possible
40. Page 40
MAERSK + IBM
TRACKING CARGO ON BLOCKCHAIN
„The projects we are doing with IBM aim at
exploring a disruptive technology such as
blockchain to solve real customer problems and
create new innovative business models for the
entire industry“
- End-to-end visability of customs documents,
bills of lading and other data to each parti-
cipant based on their level of permission
- No one party can modify, delete or even
append any record w/o consensus
- Fraud and error potential reduced, reduce
time and costs, improve inventory mgt
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MICROSOFT + MOJIX
PROJECT MANIFEST
"Project Manifest is actually designed to look at
the challenges of visibility in the supply chain. One
of the reasons why we worked with Mojix is
because they already have technology and know-
how in supply chains for scanning RFIDs.“
- Actually an academic project is carried out with
> a dozen companies (retailers and brands) by
the Aubun University
- Turn a distributed ledger into the „connected
tissue“ that gives complicated cross-industry
supply chains real-time accuracy
- Deploy Ethereum, automating the writing,
shipping and receiving of transactions in smart
contracts on the blockchain
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WALMART
DELIVERY DRONES
Walmart is seeking to patent a system that uses
blockchain to track packages delivered by un-
manned drones. The patent application explains:
„Package tracking by blockchain may include
elements including but not limited to location,
supply chain transition, authentication of the
courier and customer, ambient temperature of the
container, temperature of the product if available,
acceptable thresholds for ambient temperature of
the product, package contents placed in the
container system (products & goods), or a
combination thereof.“
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ESSDOCS (ASOF JULY ´17 NON-BLOCKCHAIN)
PAPERLESS TRADE SOLUTIONS
„essDOC´ mission is to enable paperless trade.
Our CargoDocs platform digitizes trade opera-
tions, finance and logistics. essDOCS´ vision is for
all domestic & international trade to be executed
in a digital & automated manner.
CargoDocs is a secure, cloud-based platform that
ties many disparate offerings into a modular,
complete paperless trade solution.“
In March 2017 essDOCS announced to work on a
blockchain module for CorgoDocs, which will
allow data relating to original electronic bill of
lading to be held on a distributed ledger.
essDOCS today is present in 168 countries serving more
than 18,000 customers and 37 banking groups.
45. Page 45
SKUCHAIN
BLOCKCHAIN BASED SCM PLATFORM
"Skuchain is a blockchain platform that provides
transparency, security and efficiency to the supply
chain, enabling optimal planning and agility for
downstream buyers and working capital relief for
upstream suppliers.“
- IMT provides inventory financing that de-risks
transactions and unlocks capital opportunities for
the entire supply chain.
- Popcodes are Proof of Provenance codes, a
crypto-serialization solution to track flow of goods
on SKU level.
- BRACKETS are cryptographically secure smart
contracts governing an entire purchase cycle.
46. Page 46
AGRIDIGITAL
TRUST&TRANSPARENCY
„At AgriDigital we develop solutions to real world
problems in the agriculture sector. We bring trans-
parency, efficiency and trust to farmers and the
post-farmgate ecosystem.“
- Integrated commodity management solution for
the global grains industry
- applied blockchain technologies, distributed
ledgers and smart contracts
- realtime payment
- increased efficiency
- transparency
https://vimeo.com/208064273
47. Page 47
PROVENANCE
EVERY PRODUCT HAS A STORY
„Provenance is a platform that empowers brands
to take steps toward greater transparency by
tracing the origins and histories of products. With
our technology, you can easily gather and verify
stories, keep them connected to physical things
and embed them anywhere online.“
- Provenance data can be linked to any physical
– though labelling, smart tags and through
embeds for a website or app.
- Focussing on increased brand trust by
transparency and verifiable data
- Create a digital passport for every product
49. Page 49
DUTCH CONSORTIUM
BLOCKCHAIN TECHNOLOGY FOR LOGISTICS
Target: tackle a large-scale blockchain project in
the logistics sector
Project start: Nov, 2016 – Eof 2018
Investment: 2,2 M €
Partners: TU Delft, ABN-AMRO, SCF Community,
Port of Rotterdam, RoyalFloraHolland, 10 others
The final result of the project is centred on
delivering three concrete use cases:
- Chain financing
- Supply financing
- circular economics
50. Page 50
ANTWERP PORT
TESTS BLOCKCHAIN CONTAINER RELEASE
Antwerp Port and Singapore Port have started
piloting a blockchain solution that will give truckers,
shippers and other parties greater security when
co-ordinating a container´s release.
The aim is to simplify the paperwork and mes-
saging involved in the logistics transactions of
carriers, terminals, forwarders, hauliers, drivers and
shippers.
Selected companies participating in the tests also
include an unnamed forwarder and a transporter,
in the aim to commercialise the product by the end
of 2017.
52. Page 52
SMARTLOG
IOT BLOKCHAIN SOLUTION IN LOGISTICS INDUSTRY
Project focus: introducing a blockchain technology
application into the logistics business data transfer
traffic – not just as an commercial, proprietary
application suite, but rather as an industry-wide open
solution to which every interested and involved party
can join and from which every involved party can
directly benefit from.
project duration: Sep, 2016 – Auf 2019
Lead: Kouvola Innovation Oy, Finland
Areas: working, analyzing (data), developing (RFID etc)
53. Page 53
HANSEBLOC
SECURED E-BILL OF LADING
Project focus: utilize blockchain to secure the
consignment note and to enable new business
models. Therefore a consortium of complementary
stakeholders in transport&logistics is set up.
Targeted project duration: Jan 2018 – Jun 2020
Lead: „Logistik-Initiative Hamburg“
Participants: logistics, transport and IT companies
– universities - blockchain specialists
Project application submitted to Federal Minstry
for Economics Affairs and Engery April ´17
Feedback July ´17: project outline highly appre-
ciated, deadline complete application Aug ´17
Non-final logo