The accessible, non-technical guide to applying and benefiting from blockchain technology.
Blockchain has grown at an enormous rate in a very short period of time. In a business context, blockchain can level the playing field between small and large organisations in several ways: Exact copies of the immutable, time-stamped data is held by all parties, all transactions can be viewed in real time, data blocks are cryptographically linked, all raw materials are traceable and smart contracts ensure no middle-men, ease of audit and reduced friction. The trust, transparency, security, quality and reduced costs of blockchain make it a game-changing technology that crosses sectors, industries and borders with ease. Even though the technologies are ready for adoption, businesses remain largely unaware of their full potential and effective implementation. End users require accurate and up-to-date information on the practical applications of blockchain — Commercializing Blockchain provides it.
A practical and easy-to-understand guide to blockchain, this timely book illustrates how this revolutionary technology can be used to transform governments, businesses, enterprises and entire communities. The author draws from his experience with global retailers, global technology companies, UCL Centre for Blockchain technologies, the government of the UK, Retail Blockchain Consortium and many other sources to present real-world case studies on the use and benefits of blockchain. Topics include financial transactions, tokenisation, identity management, supply chain transparency, global shipping and freight, counterfeiting and more. Provides practical guidance for blockchain transactions in business operations
- Provides practical guidance for blockchain transactions in business operations
- Demonstrates how blockchain can add value and bring increased efficiency to commercial operations
- Covers all of the essential components of blockchain such as traceability, provenance, certification and authentication
- Requires no technical expertise to embrace blockchain strategies
Commercializing Blockchain: Strategic Applications in the Real World is ideal for enterprises seeking to develop and deploy blockchain technology, particularly in areas retail, supply chain and consumer goods.
Table of Contents:
About the Author xiii
About the Contributors xv
Foreword xxi
Damien Moore
Foreword xxiii
Paolo Tasca
Preface xxvii
Introduction 1
Commercializing Blockchain 1
Antony Stores Group (ASG) Retail Business Illustration 2
Real-World Enterprise Level Use Cases – Financial Services, Retail, Supply Chain, and CPG 2
Who Will Benefit from Reading Commercializing Blockchain? 2
Antony Stores Group (ASG) Illustration 3
ASG Background 3
History of ASG 3
ASG Challenges and Pain Points 5
1 Introduction to Blockchain Technology 7
Blockchain Technology Definition 7
What Are the Reasons Why We Have Blockchain Technology? 8
The Internet and Blockchain 8
The ‘Trustless’ World 8
Blockchain: The Internet of Value 10
Blockchain has Five Important Characteristics 10
1. Blockchain for Truth and Trust 11
2. Blockchain for Transparency 11
3. Blockchain for Security 12
4. Blockchain for Quality and Certainty 13
5. Blockchain for Efficiency 13
Blockchain Regulation and Global Trade 14
Other Important Blockchain Benefits 29
Blockchain Theory for Good 29
Blockchain and Diversity 30
Blockchain for All Types of Organization 32
Blockchain for New Business Models 32
Example: The DAO – Decentralized Autonomous Organization 33
New Blockchain Companies 34
Blockchain Is Not a Verb! 34
2 Types of Blockchain 37
Differences to a Database 44
Consensus and Blockchain 45
ASG Consensus Example 55
Current Blockchain and DLT Ecosystems 56
Current Blockchain and DLT Ecosystem Summary 66
3 Enterprise Blockchain 67
Enterprise Blockchain and Trust 67
Characteristics of Enterprise Blockchain 68
Why Use Enterprise Blockchain? 68
Where to Use Enterprise Blockchain Technology 69
The Next 20-Year Transformation 70
Total Business Transformation Led by Blockchain Technology 70
Improved Working Together 71
Basics of an Enterprise Blockchain 71
Blockchain and ERP: The Future of the ‘Back Office’ – ERP 2.0 72
Can Blockchain Technology Supercharge ERP? 73
What Can Blockchain Add to ERP? 73
Blockchain and Planning 74
Blockchain and Analysis 74
How Blockchain Technology Can Transform Forecasting and Planning 75
Use Case: Blockchain and Intercompany 76
ASG Intercompany on Blockchain Example 80
Enterprise Blockchain Summary 82
4 What Does Blockchain Solve? 83
Trust 83
Transparency and Openness 84
Immutability 84
Transactions Automation – Smart Contracts 85
‘Why Blockchain Will Be Transformative’: Looking at the History of Contracts through to Present Day Usage 85
New Business Models and Opportunities 98
MonoChain: A Blockchain Start-Up Building the Circular Economy 99
5 Blockchain Powering the New Marketplace Model 107
A Fundamental Foundation: Marketplaces Built Using Blockchain Technology 107
Marketplace for Anything 108
Decentralized Utopia – Reality or Dream? 109
Example of a Product Marketplace: Replace Amazon, eBay, or Alibaba 110
Example of a Service Marketplace: Replace Uber or Airbnb 110
Real Use Case: Blockchain Product Marketplace – OpenBazaar 111
Real Use Case: Blockchain Marketplace to Replace Uber – EVA 111
Summary 112
6 Where Can Blockchain Technology Be Applied? 113
Industries 114
The Retail and Supply Chain Industry 114
Cryptocurrencies 115
Identity Management 115
Loyalty 117
Gift Cards 117
ASG Gift Card Blockchain Example 118
Warranty Management and Refunds Management 119
Improved Sourcing 120
Inventory Management and Returns Management 120
ASG Inventory on Blockchain Example 121
ASG Returns Blockchain Example 122
Supply Chain Industry (Including Brands, Consumer Products, and Manufacturers) 123
Supply Chain Transparency 124
Global Shipping and Freight 124
Certification and Authentication 125
Traceability 126
Provenance 127
Counterfeit Products 128
The Finance and Financial Services Industry 128
7 Blockchain Adoption 161
How Will Blockchain Be Adopted? 161
Blockchain Adoption: The User Interface 161
Smartphone as ID 162
QR Code World 163
Real Use Case: HTC Launches a Blockchain Smartphone in December 2018 163
Blockchain Adoption: The Understanding of Blockchain Technology 164
Blockchain Adoption: The Killer App for Blockchain 166
Blockchain Adoption: Daily Life Use Cases 166
Blockchain Adoption: Winning Business Models 167
8 First Use Cases 169
History of Bitcoin 169
Cryptocurrency and Crypto Assets 172
How Are Crypto Assets Classed? 172
ICO – Initial Coin Offering 174
ICOs Often Raise Money via Crypto 174
Why Use an ICO? 175
STO – Security Token Offering 176
What to Look for in an ICO/STO 176
Tokenization 177
Tokens for Liquidity 177
Tokens for Globalization 178
Tokens for Global Commerce 178
Tokens for New Assets 178
Tokens Take Us Beyond Money 179
Benefits of Tokenization 184
9 What Makes It Work? Blockchain Best Practice 185
Consensus 185
Governance 186
Agile and Iterative Approach 187
Solution Driven 187
Collaborate 188
Teams Need to Be Fully Bought In 189
Open-Minded to Everything 189
Learning Mentality 190
Blockchain Best Practice Summary 190
10 How to Commercialize Blockchain/Reach Its Potential 191
Blockchain Is a Network Play 191
Real Use Case: Retail Blockchain Consortium 192
Mission and Vision 192
How You Benefit by Joining RBC Executive Forum? 193
Real Use Case: UK Government APPG Blockchain 193
Blockchain Business Case 194
Benefits of Implementing Blockchain Technology 195
Efficiency Gains of Blockchain Technology 196
Revenue Growth with Blockchain Technology 198
New Business Growth Powered by Blockchain Technology 200
Blockchain Technology Benefits Realization 202
People and Process Transformation 203
Principles of Transformation 204
Example Blockchain Implementation Plans in Retail 206
ASG Provenance Tracking Example 206
How to Commercialize Blockchain Summary 208
11 Risks of Implementing Blockchain Technology 211
Change – Inertia of People 211
User’s Adoption 212
Scale and Complexity 213
Standardization 213
Government 214
The Control Structures Around the World aka “The 1%” 214
Regulations 215
Millennials and Younger Generations 216
Ignorance 216
Quantum and New Technology 217
12 Blockchain Is Better When Used with Existing and Other Emerging Technologies 219
IoT, AI/ML, RPA, Blockchain, AR, VR – Emerging Technologies 220
How Blockchain, AI, and IoT Work in Harmony – ‘ABot’ 220
Use Case: Emerging Technologies Working Together in Retail 225
Use Case: Waltonchain for Provenance 226
Use Case: Convergence of Blockchain, IoT, and AI for Successful Provenance Solutions 227
13 Future of Blockchain 251
What Will Blockchain Technology Look Like in 2025? 251
New Business Models Examples: 254
The Circular Economy Powered by Blockchain 254
Use Case: Auto Industry and Blockchain Technology 258
The Future of Blockchain – Contributors’ Views 259
Future of Blockchain – Paolo Tasca 259
Future of Blockchain – Chris Wing 262
Future of Blockchain – Nikhil Vadgama 263
Future of Blockchain – Marta Piekarska 264
Future of Blockchain – Peter Bambridge 264
Future of Blockchain – Areiel Wolanow 265
Future of Blockchain – Carlos Vivas Augier 267
Future of Blockchain – Vikram Kimyani 267
Future of Blockchain Summary 268
14 Use Cases in Real World – 2019 highlights 269
Financial Transactions 270
Financial Transactions Benefits and Outcomes 271
Financial Transactions Examples 272
Cryptocurrencies 273
Tokenization 274
Tokenization Benefits and Outcomes 274
Tokenization Examples 274
Identity Management 276
Identity Management Benefits and Outcomes 277
Identity Management Examples 277
Loyalty 280
Loyalty Benefits and Outcomes 280
Loyalty Examples 281
Gift Cards 281
Gift Cards Benefits and Outcomes 282
Gift Cards Examples 283
Coinbase Introduced e-Gifts after Gaining an e-Money Licence from the FCA in the UK 283
Warranty Management 283
Warranty Management Benefits and Outcomes 283
Warranty Management Examples 284
Refunds Management 286
Refunds Management Benefits and Outcomes 286
Refunds Management Examples 287
Global Shipping and Freight 288
Global Shipping and Freight Benefits and Outcomes 288
Global Shipping and Freight Examples 290
Improved Sourcing and Procurement 291
Improved Sourcing and Procurement Benefits and Outcomes 292
Certification and Authentication 292
Certification and Authentication Benefits and Outcomes 293
Certification and Authentication Examples 293
Inventory Management 295
Inventory Management Benefits and Outcomes 295
Traceability 296
Traceability Benefits and Outcomes 297
Traceability Examples 298
Provenance 300
Provenance Benefits and Outcomes 301
Provenance Examples 301
Counterfeit Products 303
Counterfeit Products Benefits and Outcomes 303
Counterfeit Products Examples 304
Retail Blockchain Consortium 307
About the RBC 307
Mission and Vision 308
How Will You Benefit from Joining? 308
Get Involved – Join the Executive forum 308
Index 311
