BlockchaininRetailandin Business
Presented to: South
Okanagan Technology
Professionals
Penticton, BC, Canada
By Antony Welfare
14th November 2017

Antony Welfare
 Retailer from birth, understanding in depth retail,
financial and technology worlds
 CIMA qualified, with nearly 20 years expertise in
retail, finance and technology
 Starting with Sainsburys, Marks & Spencer and
Dixons, through to own fashion technology
company
 Blockchain enthusiast and member of EEA
 Strategy and business planning expertise
 Global thought leadership for Consumer brands
and retailers
 Author of The Retail Handbook – India edition
10,000 copies
 Sky News Retail expert and event speaker

Your experience…
0 BTC – Know nothing about Blockchain or Bitcoin
5 BTC – Understand a little about Blockchain or Bitcoin
10 BTC – Understand Blockchain and Bitcoin
100 BTC – Actively use/engage Blockchain and Bitcoin
1000 BTC – Know everything there is to know about Blockchain and Bitcoin

Disruptive Technology
• From IOT….
• To drones and walkers
• To Blockchain
• To AR
• To VR
• To 3D print
• To Immersive shopping

Disruptive Technology
High Business Impact
in 2017

Disruptive Technology
Peak of Inflated
Expectations

Disruptive Technology
Peak of Inflated
Expectations?

Disruptive Technology
New services
and cases

Disruption Online

Where did we come from? Internet 2.0
• Search
• Social
• Ecommerce
• Products
…….Information/Transactions

What are the problems of Internet 2.0?
• Trust?
• Openness?
• Security?
• Quality? Cost?
• My data/privacy?

Where are we going? Internet 3.0-Blockchain
• Trust
• Transparency
• Security
• Quality/Certainty
• Reduced costs

Business in the Blockchain age
• Trust – You have the same copy of all data
• Transparency – You can see all the transactions real time
• Security – Crypto technology secures user ID’s
• Quality/Certainty - You know where your raw materials came from
• Reduced costs - No more costly API’s and auditors

Where are we going? Internet 3.0-Blockchain

Possible losers of 3.0 - Blockchain
• A public ledger of web page links could
become a powerful alternative to Google
• A public/permissions ledger of our individual
social media postings and friends could
become an alternative to using Facebook as
an intermediary
• A public ledger of physical inventory could
become an alternative to Amazon’s
warehouses
• A public/permissions ledger of our career
profiles and connections could replicate
much of the value of LinkedIn

Blockchain
• Blockchain

What is Blockchain?

INCORRECT!!
What is Blockchain? Incorrectopedia
blockchain
ˈblɒktʃeɪn/
noun
noun: blockchain; plural noun: blockchains; noun: block-chain; plural noun: block-chains
1.a digital ledger in which transactions made in bitcoin or another cryptocurrency
are recorded chronologically and publicly.
1."we can actually have a look at the blockchain and see evidence of what's going on"

Correct Definition
What is Blockchain?
blockchain
ˈblɒktʃeɪn/
noun
noun: blockchain; plural noun: blockchains; noun: block-chain; plural noun: block-chains
1. A distributed ledger technology, which allows data to be stored in vast groupings,
which are encrypted and tamper-proof. It is maintained across a network of
computers around the world and has no central authority to oversee it

What is Blockchain?
A blockchain – is a distributed database that maintains a continuously growing list of records, called
blocks, secured from tampering and revision.
• Each block contains a timestamp and a link to a previous block.
• By design, blockchains are inherently resistant to modification of the data — once
recorded, the data in a block cannot be altered retroactively.
• Through the use of a peer-to-peer network and a distributed timestamping server,
a blockchain database is managed autonomously.
• Blockchains are an open, distributed ledger, that can record transactions between
two parties efficiently and in a verifiable and permanent way.
• The ledger itself can also be programmed to trigger transactions automatically.

Blockchain is…
• Trusted, shared and distributed ledger of transactions
• Encrypted
• Immutable/Permanent record

How does blockchain work?
• How does Blockchain work?

Bitcoin use case
• Bitcoin Use Case

How Blockchain works?
• Antony wants to send some money to Leonardo

How Blockchain works?
• He instructs his bitcoin wallet app to send the bitcoin to Leo.

How Blockchain works?
• The transaction is configured into a block

How Blockchain works?
• The transaction is broadcast across the entire network which validates it –
this is called mining

How Blockchain works?
• The “block” is then added to the “chain” which records the entire non-
reversible history of the transaction publicly

How Blockchain works?
• Leo received his funds

Blockchain: Distributed ledger

Blockchain in a nutshell
Smart Contracts
Cryptographic security
Shared Ledger Consensus
Secure, authenticated and
verifiable transactions
Business terms embedded in the
transaction database and executed
with transactions
All parties agree to network
verified transactions
Shared system of records shared
across the business network

Blockchain use case: Bitcoin
• Blockchain

How important is Blockchain?
• How important is Blockchain?

Who is “playing” with Blockchain?

Who is “playing” with Blockchain?

Leaders comments
"Blockchain holds the promise to fundamentally
transform how business is done, making
business-to-business interactions more secure,
transparent, and efficient..."
10% of the Global GDP will be stored in
blockchain technology by 2027
$176 Billion business value-add of blockchain by
2025
Amit Zavery, Senior Vice
President, Oracle Cloud Platform

Leaders comments
“I am much more interested in data than I am in
process, I think that what we are really
struggling with is data. The rules are on data,
the new regulations are on data. And the
obligations of banks are to report on data… If
you look at blockchain technology, I think it
could be used for digital identity if that’s
acceptable to the G20 because this is going to
be a supranational initiative and the US have to
take a leading role in it.”
Deutsche Bank’s co-chief
executive officer John Cryan

Leaders comments
“I am not talking about bitcoin or a
cybercurrency, but the [underlying] technology
that allows you to have trust and efficiency in
the exchange of anything. This will have a
profound change in how the world works. . .The
blockchain will do for transactions what the
internet did for information”
IBM CEO
Ginni Rometty

Leaders comments
“For us, it’s a matter of making sure that we continue
to take all of the new technologies that are available
in the marketplace and bringing them into our
markets and offering them out to our clients,” she
said. Blockchain, is one such technology, Friedman
said.
Despite the hurdle of federal regulation, a concern
that is fading for many companies in the face of a
more pro-business administration, Friedman said that
the protection, speed and efficiency blockchain
provides will turn skeptics around.”
Nasdaq CEO
Adena Friedman

Leaders comments
“Blockchain is a very important, new technology
that could have implications for the way in which
transactions are handled throughout the financial
system. We’re looking at it in terms of its promise in
some of the technologies we use ourselves and
many financial institutions are looking at it.
It could make a big difference to the may in which
transactions are cleared and settled in the global
economy.”
Janet Yellen, Chair of the Board
of Governors of the Federal
Reserve

Leaders comments
“…told the panel that although bitcoin and
related “virtual currencies” had many
advantages such as reducing costs, providing
better value and reaching the unbanked, they
could also be a great instrument for crime and a
“substantial threat to financial stability.”
Christine Lagarde, Head of the
International Monetary Fund,

Leaders comments
“Blockchain is the next disruptive
technology to transform the lives
of our customers and our
business operations”
Antony Welfare, Blockchain
Leader

Blockchain in Retail

Blockchain Uses: Retail examples
• Trust and transparency – The foundation of Blockchain technology
• Payments - All financial transactions are recorded, eliminating the errors that can occur
when each party participating in a transaction maintains its own data set for that
transaction
• Provenance – Track everything that happened to the raw ingredient, packaging and
manufacturing to make the product that the customer is purchasing

Three possible retail use cases for blockchain
• Supply chain ledger
• Tokenised ledger
• Executable/Smart contracts

Supply chain ledger
• Simplification of complex multi-party systems delivery
• Achieve granular-level inventory tracking and delivery assurance, potentially improving
supply chain financing, insurance and risk
• Enhanced tracing and verification to reduce risk of fraud and theft

Supply chain ledger
“With the blockchain, Wal-Mart will be able to obtain crucial data from a single receipt, including suppliers,
details on how and where food was grown and who inspected it. The database extends information from the
pallet to the individual package”

Tokenised ledger
• The token is acting as a virtual “certificate of
authenticity”, which is far harder to steal or forge than a
piece of paper.
• Upon receiving the digital token, the final recipient of
the physical item, whether a bank, distributor, retailer or
customer, can verify the chain of custody all the way
back to the point of origin.

Executable/Smart contracts
• Smart contract code is code that is stored, verified and executed on a blockchain. Smart legal contracts is
the use of the smart contract code that can be used as a complement, or substitute, for legal contracts.
• In its simplest form, this is about "if X happens, do Y," without any human intervention. Use cases include
anything from rental cars or apartments, through to complex machine-to-machine transactions involving
advanced analytics.

Executable/Smart contracts
• The Visa-DocuSign PoC involves registration of each car on the blockchain using a unique digital identity
assigned to them.
• The car’s digital identity is then connected to a Visa payment channel and also to the DocuSign platform.
• Whenever a customer wants to rent a car, they can pick the car of their choice and finish the formalities
online while sitting inside the car itself.
• It is possible to enable all of these services by authenticating preferences using a DocuSign electronic
signature

Blockchain use now

Uses now #1 - Crypto Currency
• A currency traded on the Blockchain – not
owned by any Government
• Bitcoin and Ether(eum) are the biggest
• You can get from ATM’s
• You can used in stores with cards
“I do think Bitcoin is the first [encrypted
money] that has the potential to do
something like change the world.”
Peter Thiel, Co-Founder of Paypal.

Uses now #2 – Assets on the Blockchain
• Holding assets (Land, Houses, cars) on the blockchain so
they can be exchanged and without corruption and
middlemen
• Bitland - real property ownership on blockchain
• Sweden - Since last June the body has been testing a
way to record property transactions on a blockchain.
• This could save the Swedish taxpayer over €100
million ($106 million) a year by eliminating
paperwork, reducing fraud, and speeding up
transactions
• EverLedger – Blockchain for Diamonds

Uses now #3 - Core Banking in 4 Weeks
3 engineers, 4 weeks, and 1 Stellar integration later, Deloitte had a
prototype that reduced transaction costs by 40%. Each transaction
resolved in 5 seconds.
Deloitte partner Eric Piscini said, “The client was amazed by how fast
and how cheap those transactions were.”

Uses now #4 – Money transfer services
Tempo facilitates remittances from Europe to the world, a $150 billion
market. Using the Stellar network, Tempo can power 600,000 transactions
for $.01 in fees.
With a network of 190,000 locations in 120 countries, Tempo and their
cross-border payments enable customers to pay remotely for services such
as water, phone, electricity, and health insurance.

Uses now #5 - others on the Blockchain
• UAE Government “All docs on Blockchain by 2020”
• Blockcerts in Malta - education certification
• Trading Solar Energy (Solar coins) in Africa

Uses now #6 – IoT and Blockchain
The future of the IoT Blockchain
“Connecting remote devices with blockchain
provides an inexpensive, low-maintenance strategy
for controlling an entire system without centralized
storage, authority, or manpower.
Firms are already using this technology for
agriculture, manufacturing, transportation, and
other applications. Each of these examples relies
on the successful combination of the IoT with
blockchain tech, but there is so much more the two
can do together.”
https://thenextweb.com/contributors/2017/09/21/blockchain-tech-missing-link-success-iot/

Uses now #7 – Blockchain (BaaS)
• Oracle, Amazon & Microsoft – hosting Blockchain
as a Service

Blockchain Case: Ethereum

Ethereum Network
.

Ethereum Network
• Ethereum is a platform that makes it possible for any developer to build
and publish next-generation distributed applications.

Ethereum Network
• Smart (Code-based) contracts are the main building blocks of Ethereum

Ethereum Network
• Contracts can be used to build currencies, financial derivatives, voting
systems, decentralized organizations, data feeds, title registries and
thousands of other applications.

Ethereum Network
• Ethereum can be used to codify, decentralize, secure and trade almost
anything.

DECENTRALISED CENTRALISED
• Distribution of Power
• Fault-tolerant/Resilient
• Slower decision making
• Faster decision making
• Reduced redundancy
• Centralization of Power
• Central point of failure
Ethereum Network

Enterprise Ethereum Alliance

Dapps – Uses now….Bitcoin Currency Card

Dapps – Uses now….Blockchain messaging
This is MY DATA….not
Facebook or Twitter

Dapps – Uses now….Blockchain trading

Dapps – Uses now….Online banking for all

The Blockchain business case

The (Business case) for Blockchain

Blockchain benefits for business
• Saves time – From days to instantaneous transactions
• Removes costs – Overheads and intermediaries (Audit, recs etc)
• Reduces risk – Tamper proof and fraud reduction
• Increase trust – Through shared processes and records, leading to open
and trusted partnerships

And the money……..

There is an investment angle….

There is an investment angle….

Real returns and momentum

Thank you
Antony Welfare
antony@retailpotential.com
+44 7976 367992