A brief presentation and overview to the Washington State Legislative Committee on Economic Development & International Relation. Identity the low-hanging fruit for the state it lead in specific blockchain initiatives such as Supply Chain
2. “What the internet did forcommunications,
blockchain will do for trustedtransactions.”
- Ginni Rometty, CEO ofIBM
1
3. Blockchainis the “Internetof Value”
• A blockchain is a public ledger
Blockchains securely record transactions
between parties – neither party can make
changes
Blockchains beyond Bitcoin and Ethereum
provide increased transaction throughput and
other benefits
Like the Internet, it’s inherently global
We’re in the 1998 of blockchain; outsider
rejection of insider belief
By May 2018 $1.3B venture money invested. All of
2017 was $1B
6. What’s is aBlockchainLedger?
5
1. Eye Exam 5/12/2017
Patient 8931
2. Visit on 5/12/2017
3. Need new glasses
4. New prescription
Patient 8931
5. Prescription 99881
filled
6. Follow-up appt
scheduled 6/12/2017
7. Annual Checkup
5/12/2018
1. Eye Exam 5/12/2017
Patient 8931
2. Visit on 5/12/2017
3. Need new glasses
4. New prescription
Patient 8931
5. Prescription 99881
filled
6. Follow-up appt
scheduled 6/12/2017
7. Annual Checkup
5/12/2018
1. Maintenance record
5/12/2018 vehicle #8931
2. Depot visit on 5/12/2018
3. Need new windscreen
4. Replace windscreen
vehicle 8931
5. Part 99881 replaced
6. Tire rotation scheduled
6/12/2018
7. Oil change 5/12/2019
• Database-like rows of
shared information
• Validation and verification is
based on mistrust
• Public (or private) audit
trails
• Replicated record enabled
by many third parties
• Consensus oriented
• Written with finality
Easily and immediately global
9. What Makes a Good Business Case for Blockchain?
8
1. Multiple parties share data
Multiple participants need views of common information
2. Multiple parties update data
Multiple participants take actions that need to be recorded and change
the data
3. Verify Trust
Every participant requires validation of the transactions and integrity of
data written
4. Decentralized
No single repository or owner of the repository locations
5. Distributed Ledger
Data is written across multiple ledger entries
10. SupplyChain
9
• Top state industries
• Aerospace
• Forest Products
• Agriculture and Food Manufacturing
• Maritime
• Military
• Common Horizontal Processes
• Supply Chain
• Insurance
• FinTech and Payments
• Financial Technology
• Document and record management
• Inherently global in nature
64% of the US apple supply is grown in Washington
12. GlobalShipping/Supply Chain
• $4T worth of goods shipped each year
• 80% via ocean shipped freight
• Documentation is approximately 20% of shipping
cost
• Maersk – Integrated shipper and transportation
company
All parties share the same data on the blockchain
Information is shared and written with finality
Reduces paperwork
Reduce opportunities for fraud
11
Image courtesy CCN.com
13. Insurance
• Property and Casualty for large assets and things such as equipment and
buildings
• Allianz
Insurance and Asset management
88M customers in 70+ countries
• Update “Captive Insurance” between multiple global entities
Wholly owned, insured and underwritten by the insureds
Complex multi-sided insurance
• Benefits
Reduces error and exchange of potentially thousands of documents between
parties
Reduced cost
Auditability
Fund Transfers are simplified
12
Image courtesy Alliancz.com
14. Disaster Recovery
• Data stored across multiple parties
• No single point of failure
• Less resource intensive than traditional solutions
Accessible to smaller and regional banks
• Sheltered Harbor initiative began last year
• Candidate applications
Banking system
Airports – flight records
Government records
13
https://www.americanbanker.com/news/banks-underground-data-vault-is-evolving-will-it-use-
blockchain-next
15. MoreCommercialOpportunities
• Identity - $19.5B Industry
Password Managers
Identity Access Management
Physical identity cards
• Government
Licenses
Records management and transfers (E.g., property titles)
• Financial Technology or FinTech
International money transfers
Know Your Customer and Anti-Money Laundering
Micro-payments
• Entertainment
Gambling
In-world currencies and trading
• Construction and Real Estate
Building plans and documents
Insurance and permits
• Crypto miners become validators
The ISPs of the blockchain world
14
Hana Yori Dango
“Dumplings over flowers”
17. Opportunities/Barriers
• Regulators want to address single entities and not networks
Analyze the landscape and adopt progressive regulations
• Many businesses in an ecosystem must agree and participate to realize gains
Enable public-private partnerships to gain global attention
• Hot potato of risk - Last one holding it, gets stuck with the check
Review regulations
• Personally Identifiable Information
Right to be forgotten
Where is the data shared/stored
Keep the data only for as long as necessary
• Evolve legislation and changes in data management
16
Ecommerce wasn’t
invented here but
we made it every
day
Lead the narrative in global
blockchain-based Supply Chain
18. Thank You!
Lawrence I Lerner, CEO
Lawrence.lerner@pithia.com
www.pithia.com
Twitter: @RevInnovator
Telegram: @RevInnovator
https://www.linkedin.com/in/lawrencelerner/