A little personal history
• First job was in consumer electronics – had to come
up with a way to repair surface-mount ICs in VCRs.
• Second job was as a product engineer in a hybrid
microelectronics factory – everything from a simple
reset circuit – literally drawn on a napkin – to a Chip-
on-Substrate controller for one of the first personal
We can build almost any sort of process with Blockchain
• This example is an e-Kanban process. Whenever a reel of 5000 parts leaves
the stores area, it updates the ledger. When five reels (one box) have been
issued, it issues an eKanban signal to the supplier.
• The supplier’s acknowledgement, as well as its shipping notice and the receipt
into stores, all update the ledger.
Date Time Plant ID
Part Number /
Level (Stores) Transaction
5-Jun-18 13:00NJ POLY - NKG01 1098753-01 185,000 Issue to WIP -5000 180,000 -5000 n/a
5-Jun-18 15:05NJ POLY - NKG01 1098753-01 180,000 Issue to WIP -5000 175,000 -10000 n/a
5-Jun-18 17:15NJ POLY - NKG01 1098753-01 175,000 Issue to WIP -10000 165,000 -20000 n/a
6-Jun-18 7:20NJ POLY - NKG01 1098753-01 165,000 Issue to WIP -5000 160,000 -25000 n/a
6-Jun-18 7:21NJ POLY - NKG01 1098753-01 n/a Issue eKanban to SPLR 25000 n/a n/a Panshiba
6-Jun-18 7:22NJ POLY - NKG01 1098753-01 n/a Acknowledge eKanban 25000 n/a n/a Panshiba
6-Jun-18 16:05NJ POLY - NKG01 1098753-01 n/a Shipping Notice 25000 n/a n/a Panshiba
7-Jun-18 10:05NJ POLY - NKG01 1098753-01 160,000 Receipt to Stores 25000 185,000 n/a Panshiba
22. Thank you!
Contact for further info:
+1 224 407 7812
(Blogs on Blockchain & other topics)
For more information:
Some useful videos:
https://youtu.be/pee0kixUN2Q (Power Grid)
https://youtu.be/ZKscEx2lO-4 (Blockchain +
A more comprehensive foundational
• “Fast Forward” white paper is at
• Blockchain in Electronics white paper is at
• Additional info at
• Helpful paper on selecting a blockchain
Contact Quentin Samelson for links to “Blockchain for Dummies,”
the Quick-Start Guide for Developers, or the Founder’s Handbook.
This has been simplified, of course! In real life, the issues to WIP wouldn’t stop when the eKanban signal is issued… but the math would be hard to follow on one screen in that case.
Optional slide to explain why it’s called Block – Chain …
Slight changes to an input will produce a completely different hash. It is close to impossible to figure out what input data created a particular hash; but hashing the same value twice will result in the same hash.
This slide looks at the block in more detail and how it achieves immutability.
The crucial aspect is the hash function. Each block contains a hash of the previous block, which itself is used to calculate the next block’s hash. This means that if any block were to be tampered with (e.g. a transaction added, deleted or modified) then the hash values would change and the blockchain would no longer be integral.
The first block is known as the “genesis” block.The genesis block usually contains an arbitrary key value that is used to initialize the hash function.
This is a simplification of the block detail. Generally, each block contains a Merkel root that links off to a tree of transactions. There is also other metadata, depending on the blockchain implementation (e.g. nonces and timestamps).
Blockchain architecture give participants the ability to share a ledger, which is updated every time a transaction occurs. This happens through peer to peer replication – meaning that each participant’s ledger is updated and synchronized.
Cryptography is used to ensure that network participants see only the parts of the ledger that are relevant to them, and that transactions are secure, authenticated and verifiable.
Blockchain also allows a contract to be embedded in the transaction database determining the conditions under which the transaction can occur.
Network participants agree how transactions are verified through consensus or similar mechanisms. Government oversight, compliance & audit can be part of the same network.
Shared: both (or all) parties to the business relationship have a complete copy of the ledger, showing all transactions made.
Secure: only the parties to the business relationship have access to the ledger. Security can be set up so that some parties only see part of a transaction, or don’t see some transactions at all.
Synchronized: when one party performs a transaction, everyone in the business relationship will see that transaction. (When the buyer acknowledges receipt of the vehicle, for instance, the seller’s copy, and the finance company’s copy, of the ledger would also be updated.)
Stable: The Ledger is “immutable” – it can’t be changed after the fact.
CONSENSUS– means all participants agree that a transaction is valid
PROVENANCE– means participants know where the asset came from and how it’s ownership has changed over time
IMMUTABILITY– means no participant can tamper with a transaction once it’s agreed. If a transaction was in error then a NEW transaction must be used to reverse the error, with both visible
FINALITY– means that there is ONE place to determine the ownership of an asset or completion of a transaction. This is the role of the SHARED LEDGER.
This and the next slide are optional, in case you need to address the difference between bitcoin & blockchain for business.
Note that the key characteristics of bitcoin above – unpermissioned and public – create the situation people have heard of, where ”mining” bitcoin requires a LOT of computing power. This is because bitcoin requires “proof of work” – which is achieved through solving massive mathematics problems. In contrast, Hyperledger (blockchain for business) is permissioned and private. Proof of work is achieved through consensus – sometimes by having two parties agree to a transaction, for instance. So the need for massive amounts of computing power isn’t there (unless, of course, your business process is going to handle huge amounts of data and thousands of transactions per minute). The key is that the technology itself doesn’t create a need for computing power, in the case of blockchain for business. With cryptocurrencies, that’s not true.
Blockchain technology enables the Bitcoin crypto currency and is best known for this usage.
However, the shared ledger technology is separate & separable – applicable to a whole range of business challenges that cross all industries.
IBM is not interested in crypto currency, but is missioned to help our customers make the most from Blockchain technologies. We see this as a major transformation opportunity for many of our customers.
Digital currencies (i.e. the representation of FIAT currency as an asset on a blockchain) are auditable and permissioned, hence excellent Blockchain use case
You either do blockchain:
“because you have to”
“because you want to save time or money or both”
Or because it opens up a new opportunity.
Hyperlinks are built into the pictures, but you can also use these links (all of which are public):
“Fast Forward” report is at https://www-935.ibm.com/services/us/gbs/thoughtleadership/blockchain/
Blockchain in Electronics report is at www.ibm.biz/blockchainelectronics
Additional info at https://www.ibm.com/blockchain/
More videos: IBM Global Finance: https://youtu.be/0DSNdLDOZ5w
Northern Trust (Private Equity application): https://youtu.be/uXx2vpDngPU
AIG (Insurance): https://youtu.be/mgUK0cPoasw
Supply Chain Visibility/ Inbound supply chain demo: https://youtu.be/mIbAHiOr9ms
IoT, Blockchain combined in inbound supply chain at Kouvola: https://youtu.be/oiLUtBiSTqQ
Walmart Food Safety Video with IBM: https://youtu.be/SV0KXBxSoio
Some good non-IBM resources:
And a few blogs that may provide some food for thought:
The problem with Blockchain: https://www.linkedin.com/pulse/problem-blockchain-quentin-samelson/
Finding good Blockchain projects: https://www.linkedin.com/pulse/finding-good-blockchain-projects-quentin-samelson/
Why use Blockchain instead of another technology? https://www.linkedin.com/pulse/why-use-blockchain-instead-another-technology-quentin-samelson/
Blockchain for the EMS Supply Chain: https://www.linkedin.com/pulse/blockchain-ems-supply-chain-quentin-samelson/
Infographics are not available via publicly accessible links; they can be downloaded internally and provided via email.
A second useful infographic is available at https://w3-03.sso.ibm.com/services/lighthouse/documents/I973757M47254S75
Most of the use cases shown in previous slides are available in a single infographic at https://w3-03.sso.ibm.com/services/lighthouse/documents/R470930L14344Q20