Blockchain and Distributed Ledger Technology Use

Cases– An Overview

Laura Lindsay

Blockchain and Distributed Ledger Technology scenarios

Retail & Manufacturing

Financial Healthcare Government

FinancialTradingDeal originationPOs for new securitiesEquitiesFixed incomeDerivatives tradingTotal Return Swaps (TRS) 2nd generation derivatives The race to a zero middle officeCollateral managementSettlementsPaymentsTransferring of valueKnow your client (KYC)Anti money launderingCrowd FundingPeer-to-peer lendingCompliance reportingTrade reporting & risk visualizationsBetting & prediction markets

InsuranceClaim filingsMBS/Property paymentsClaims processing & adminFraud detection/predictionTelematics & ratingsDigital authenticationAsset management Automated underwriting Self-administered insurance

Popular scenarios where Blockchain adds valueAsset TitlesDiamondsDesigner brandsCar leasing & salesHome Mortgages & paymentsLand title ownershipDigital asset records

GovernmentVotingVehicle registrationWIC, Vet, SS, benefits, distributionLicensing & identificationCopyrights

IdentityPersonalObjectsFamilies of objectsDigital assetsMultifactor AuthRefugee trackingEducation & badgingPurchase & review trackingEmployer & Employee reviews

MediaDigital rights mgmtGame monetizationArt authenticationPurchase & usage monitoringTicket purchasesFan trackingAd click fraud reductionResell of authentic assetsReal time auction & ad placements

Software DevelopmentMicronization of work (pay for algorithms, tweets, ad clicks, etc.)Expanse of marketplace Disbursement of workDirect to developer paymentsAPI platform playsNotarization & certificationP2P storage & compute sharingDNS

MedicalRecords sharingPrescription sharingCompliancePersonalized medicineDNA sequencing

IoTDevice to Device paymentsDevice directoriesOperations (e.g. water flow)Grid monitoringSmart home & office managementCross-company maintenance markets

PaymentsMicropayments (apps, 402)B2B international remittanceTax filing & collectionRethinking wallets & banks

ConsumerDigital rewardsUber, AirBNB, Apple Pay P2P selling, craigslistCross company, brand, loyalty tracking

Supply ChainDynamic ag commodities pricingReal time auction for supply deliveryPharmaceutical tracking & purityAgricultural food authenticationShipping & logistics management

Use Cases

• Financial

• Insurance

• Manufacturing

• Manufacturing with IoT

• Retail

• Government

• Health

Blockchain in Insurance

MicroInsurance Claims Processing Automation

Fraud Detection Provenance/Ownership

Blockchain can enable insurance companies to revisit/remove some traditional business process participants, provide trust amongst parties that allows different distribution of activities to downstream actors, and can introduce automated claims automation.The combination of these elements can allow them to introduce new services to underserved markets.

A Blockchain could be a ledger of shared truth amongst multiple participants to identify and mitigate fraud from multiple claims. Similar to CLUE in the U.S., but more efficient and open in nature.

Blockchain can power a solution that improves the efficiency of a claims management event that involves multiple parties, increasing transparency, and speeding resolution of claims.

Blockchain audit trails assist in the determination of origin and ownership for high-value objects (i.e. real estate, vehicles, high value art, luxury goods, precisiosmetals and gems.

Blockchain in Insurance

Reinsurance/Co-insurance Asset Valuation

Prediction Markets Peer Insurance

Claims settlement with Blockchain could improve efficiencies with a shared ledger that keeps track of participation details. Similar to the functionality of the Acord Rushlikon Initative for Re-Insurance.

In outlier areas where an insurer may have challenges with actuarials, a prediction market powered by Blockchain can provide insight and considerations to help lower risk.

Valuation of high value assets that can be uniquely identified to improve premium calculation and theft recovery.

The open, trusted, and transparent aspects of blockchain can help enable different types of business models, such as peer insurance.

Individuals can commit to insure one another via a smart contract, reducing overall costs.

Property & Casualty Claims Processing

Use Cases

• Financial

• Insurance

• Manufacturing

• Manufacturing with IoT

• Retail

• Government

• Health

Blockchain in ManufacturingAudit Trails Real-time negotiation

Supply Chain Visibility & Traceability IP Management in Product Development

Blockchain audit trails prove that a shirt was made in a factory paying a fair wage that provides good working conditions. This allows the retailer to charge a premium, the customer to feel good about the purchase and the workers to live better. Using blockchain audits to prove that organic food (or cage-free eggs) is genuine, for example, can help justify premium pricing, while fostering more humane/ sustainable agriculture

Blockchain production records, for example, can trace which automobile airbags were made with an explosive compound that can cause injuries or death. Automakers can reduce their liability, as well as their customer and vehicle tracking costs, by more quickly identifying the vehicles in which the airbags were used. Customers know more quickly whether their vehicle is affected, increasing their satisfaction with the auto brand and reducing their risk of injury or death

Intelligent blockchain contracts continuously query all other nodes in a blockchain for the best pricing, delivery times, and other terms and conditions for specialized aircraft engine parts. An engine manufacturer, for instance, can ramp up to meet demand more easily while cutting costs, while a smaller manufacturer can more easily fill demand from major customers

Blockchain technology makes it easier and less expensive to securely share intellectual property such as designs, bills of material and production schedules among suppliers, manufacturers and shippers

Blockchain in Manufacturing

Asset Transfer for Local Manufacture of 3d Models

Blockchain can provide asset transfer – whether ownership or constrained lease – for model usage in 3d printing, enabling secure, distributed local manufacturing

Establishing Credit for Suppliers

Multi-Party Integration for PO Financing

Recording the transactions of suppliers on the blockchain can establishes a number of attributes for the supplier – business agreements with one or more solvent buyers, volume and value (if shared) of business, timeliness of delivery, number of rejected deliveries due to quality, etc. This data could be used to inform banking institutions of a suppliers credit-worthiness in emerging markets.

A blockchain integrated with the ERP system of a manufacturer, the ecosystem of their suppliers and connected to their bank could allow automated financing of POs.

Provenance Powered Marketing

Blockchain provenance provides the ability for consumers to gain insight into the provenance of a particular good back to the original farmer(s) and their countries of origin.

Use Cases

• Financial

• Insurance

• Manufacturing

• Manufacturing with IoT

• Retail

• Government

• Health

Blockchain in Manufacturing with IoTFreight Transportation

An IoT-enabled blockchain can adding trust and transparency to the complex process involved in freight transportation. The blockchain can be an immutable store that records the temperatures, position, arrival times and status of shipping containers as they move through the system.

Vehicle Component Tracking & Compliance

Self-Healing / Self-Stocking Devices w/ Payments

Recording the transactions of suppliers on the blockchain can establishes a number of attributes for the supplier – business agreements with one or more solvent buyers, volume and value (if shared) of business, timeliness of delivery, number of rejected deliveries due to quality, etc. This data could be used to inform banking institutions of a suppliers credit-worthiness in emerging markets.

Operational log data on a blockchain can facilitate the opportunity for devices to have smart contracts monitor their state and enable them to either self-heal or self-stock. The level of trust and transparency can augment what is available today with the incorporation of IoT driven processes that include procurement / payment.Telemetry data could indicate state, logic could dictate appropriate action(s) and initiate processes (replacement part or re-stock, repair ticket request) with devices authorized to buy/pay.

Log Operational Maintenance DataDevices can track the state of safety of critical machines and their maintenance in your organizationFrom aircraft engines to elevators blockchain can provide for a tamper-free ledger of operational data and the resulting maintenanceThird-party repair partners can monitor the blockchain for preventive maintenance and record their work back on the blockchainOperational records can also be shared with government entities to verify compliance

PRODUCER

Food Processor

Milk producer supplies Milk to Food Processing Company

SMART CONTRACT

IoT Enabled

The package has to be maintained at :Temperature < 10º CHumidity < 65%

The terms of shipping are registered using a smart contract on the Blockchain

Origin8ºC60% Warehouse Carrier 2 Store

CARRIER 1

Warehouse

CARRIER 2

Retail Store

9ºC64%

9ºC64%

11ºC66%

At various points in the journey, the IoT device from the package sends the Temperature & Humidity data which are recorded on the blockchain

SMART CONTRACTUPDATED

11ºC66%

The conditions of the contract have been violated.

Carrier 2 is liable for penalty as the temperature of the package when it reached the retail store was above the prescribed limit

Detailed Use Case - Supply Chain with IoT and blockchain

The Food product is sealed in an IoT enabled package for shipping

SHARED LEDGER

Use Cases

• Financial

• Insurance

• Manufacturing

• Manufacturing with IoT

• Retail

• Government

• Health

Blockchain in RetailSupply Chain Transparency Diamond Verification/ Check Counterfeit Products

Consumer Marketing – Digital Identities Locate stolen merchandise

• Blockchain technology helping to promote environmentally sustainable production and social good via provenance attestability

• Blockchain technology allows for the transparent recording of whether say a fish has been sustainably caught, its freshness, and whether it has been handled in compliance with social and environmental rules and regulations throughout the supply chain

• To be the sole repository of a singular digital ID for every person on the planet; project worked upon by Onename and Bitnation’s Digital Identity

• These have the potential to disrupt CRM where the company stores data about the customer, and uses it or sells it, to ME-RM where the individual owns his/ her data, and is shared with whom one wants, and s/he gets paid for by companies to buy it and use it (to market it to the individual)

• Facebook, Google and Apple make money each year where we give them our data for free, they then onsellthat data to those who want to market to us. Consumer marketing could get completely flipped from company led push retail, to consumer secured pull

• Blockchain technology is being used to give each Diamond stone an unique identifier

• Everledger, a permanent register for diamond certification uses Smart contracts to assign each asset a unique identifier

• If a duplicate appears on the Blockchain without proper authorization, it can easily be identified as counterfeit

• Blockchain-supported technology like Blockverifycan be used to tag products, so that whenever a consumer makes a purchase, they are able to verify its authenticity and activate it within the system

• As such, should a product be stolen or go missing, it will be incredibly easy to trace as any subsequent transaction will be recorded in the Blockchain, instantly notifying the legitimate owner of its whereabouts

Use Cases

• Financial

• Insurance

• Manufacturing

• Manufacturing with IoT

• Retail

• Government

• Health

Blockchain in GovernmentOwnership Identities

Trusted Data and Fraud Prevention Movement of Assets

• Land (and other asset such as vehicles) Registries• Register and manage documents with transparency• Reduce time spent in issuing, verifying, renewing, replacing

records• Self service – verify documents through the network• Public Asset Management• Food and Drug Safety (food supply chain tracking)• Example: Ghana Land Registration Pilot with BitLand

• Manage Taxation and Fraud Evasion By Triple Entry Accounting on the blockchain. Single version of the truth for invoicingExample: Singapore fighting invoice fraud of traders with banks

• Licenses & other Proofs of records (degrees, grades, etc.) can be recorded & distributed

• All aid, welfare, grant transactions are published on the blockchain

• Blockchain e-identities to its citizens for services like voting

• To publish secured, anonymized healthcare data• Patient controls who can access his data

• Transferring money from one person/entity to another.

• Enabling direct payments, once a work condition has been performed.

Use Cases

• Financial

• Insurance

• Manufacturing

• Manufacturing with IoT

• Retail

• Government

• Health

Blockchain in Healthcare

Blockchain–based EMRs Secure Health Data Commons

Health Documentation, Validation and Tracking

Health Vendor RFPs

• Personal health records would be stored and administered via Blockchain in an EMR system.

• Taking advantage of the pseudonymous (e.g.; coded to a digital address not a name) nature of Blockchain technology, personal health records would be encoded as digital assets and put on the Blockchain just like other assets like currency.

• Users would permission doctors and other parties into their records as needed via their private key

• Blockchain could create a secure method of health information (e.g., proof-of-insurance, vaccination status, test results, prescriptions, status, condition, treatment, and physician referrals)

• Health research could be conducted by aggregating personal health records stored on the Blockchain

• Users contribute their health data to a public data commons managed via Blockchain

• Data is encrypted pseudonymous form and payment made via bitcoin, or different kinds of HealthCoin. Data on the Blockchain is that it can be analyzed but remain private

• Health service provides could bid to supply medical services needed by patient-consumers on smart contract markets. Like Uber drivers, service provides could bid on needed health services

Health care in a block chain worldNationwide health information interoperability could be realized through a consortium blockchain

Nationwide interoperability among healthcare institutions, including (1) Ubiquitous, Secure Network Infrastructure, (2) Verifiable Identity and Authentication of All Participants, (3) Consistent Representation of Authorization to Access Electronic Health Information, and several other requirements.

Use Case Description

Health organizations direct information to the Blockchain

Health organizations provide services to the patients

Clinical data is tracked in existing health IT systems

Standard data fields and the patient’s public ID is directed to the blockchain Via APIs

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2

3

Smart contract processes incoming transactions

Each patient transaction is stored on the blockchain

4

5 Health Orgs and other institutions query for information via APIs

5

Non-identifiable patient information is viewable

6

Data can be analyzed to uncover new insights

Health organizations and research institutions can query directly to the blockchain

7

Patient’s identity is secured through private key on the blockchain

Using smart contracts they can choose the conditions of sharing their health data

Using this identity new health organizations can get access to the patient’s data

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9

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Patients can share their data as they choose to with various institutions

Conclusion

• This is a small sampling of the wide variety of use cases

• Broad set of applications across many domains that will leverage Blockchain and Distributed Ledger technologies

• Standardization will need to cover the commonality across this breadth of use cases