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What is Blockchain?
IBM Food Trust
Overview
2
The challenge โ€“ visibility across the supply chain
Wholesaler
records
CPG / Supplier
records
Distributor
records
Consumer
Demand Drivers
Retailer
records
Producerโ€™s
records
3
โ€ฆ with consensus, provenance, immutability and finality
Blockchain provides the shared, replicated, permissioned
ledger โ€ฆ
Wholesaler
records
CPG / Supplier
records
Distributor
records
Consumer
Demand Drivers
Retailer
records
Producerโ€™s
records
Blockchain
4
Is Blockchain the same as Bitcoin?
โ€“ The first blockchain application
โ€“ Defines an unregulated shadow-currency
โ€“ Resource intensive
โ‰ 
Blockchain
is an example of an
unpermissioned, public ledger:
โ€ข Blockchains for business are
generally permissioned and
private, and prioritize:
โ€“ Identity over anonymity
โ€“ Selective endorsement
over proof of work
โ€“ Assets over
cryptocurrency
5
Trade Finance Pre and Post Trade Complex Risk Coverage Commercial Real Estate
Identity/ Know your customer (KYC) Unlisted Securities / Private Equity Funds Loyalty Program Mgt. Distributed Energy & Grid Mgt.
Medical Health Data Exchange Anti-Fraud & Port Mgt. Carbon Credit Mgt. Asset Tracking
Supply Chain & Logistics Food Safety Audit Digital Rights & Copyright Mgt.
IBM is making Blockchain real for business with diverse
engagements delivered across industries
6
Where are we on the IBM Food Trust journey?
Pork
Traceability /
safety
Mango
Traceability /
global trade
Onboarding agriculture, ingredient
suppliers, retailers, CPGs, QSRs
and others to provide bi-directional
flow of information
2017 2018
Additional partners joined the IBM
Food Trustโ„ข network, with growing
food data transactionsconducts traceability pilots
2016
7
The IBM Food Trust solution is a set of modules built for the
industry
Future IBM Modules
Future 3rd Party
Modules / Capabilities
๏‚ง Manage Recalls
๏‚ง Recall Post-Analysis
๏‚ง Trace-forward & back
๏‚ง Recall Simulator
Trace & Recall
๏‚ง Version Control
๏‚ง Authenticity
๏‚ง Automated lifecycle
management
๏‚ง Real-time Sharing
Certificate Management
IBM Blockchain Platform
Hyperledger Fabric
๏‚ง Permissioned Data Access & Entry
๏‚ง IBM Blockchain Provenance Engine
๏‚ง Secure Document Storage
๏‚ง API Integration
Data Entry & Access
IBM Food Trust
Solution Core
8
IBM Food Trust is a modular solution that will continue
to grow in functionality
โ€ข IBM Food Trust provides a blockchain platform for the food industry as well as a variety of modules targeting real business needs for
all players in the ecosystem
โ€ข We are working with 3rd party providers to further increase value by providing them the ability to build and distribute modules
Data Entry & Access Certifications
Freshness* Consumer*
Trace
. . .
Coming soon
IBM Module
3rd Party Module
9
Example data integration points between animal protein
producerโ€™s existing systems and IBM Food Trust
โ€ฆ โ€ฆ
BusinessSystems
Siloโ€™d Transactional Systems Smart Scanner
Camera Consumer AppData
Capture App
Consumer
Farm /
ProductionTransport
Inputs Retail StoreProcessing Retail DCManufacturer
DC Transport TransportTransportTransport
CertificatesProduction Info Process and Operation Info Shipping Info
Food Trust App
Blockchain
Block 1 Block 2 Block 3 Block 4 Block 5 Block 95 Block 96 Block 97 Block 98 Block 99 Block n
10
Data Elements available of IBM FOOD TRUSTโ„ข
IBM Confidential
11
How are our clients leveraging IFT?
Produce
traceability from
farm to store
Traceability for
agricultural inputs
End-to-end
traceability and
provenance
Traceability and
certificate
management for
multi-ingredient
products
Grain
Company
12
Dynamic Freshness/Expiration Management
CONVERGENCE OF TECHNOLOGIES: Blockchain + IoT + Analytics
13
Platform for Data Capture and Data Sharing
Manufacturing Shipping
Received
Issued to
Production
Formed &
Cased
Palletized
Exit
QA Storage
Loaded
onto Truck
Arrived
At DC
Enter
Zone 4
Exit
Zone 4
Shipped to
Restaurant
Arrived at
Restaurant
Consumed
EPCIS
Event
Commission Transformation Transformation Payload Observation Observation Observation Observation Observation Observation Observation Decommission
Temp
Type
Product Ambient Product N/A Ambient Ambient
Ambient +
product
Ambient Ambient Ambient Ambient Ambient
RFIDVendorIoTVendors
N/A Digi Digi N/A Digi Digi JDE iMonnit iMonnit iBright Coris N/A
ShippingDistribution Restaurants
We will capture ERP, RFID, and IoT temperature data, map to GS1 events and formats, and send to Blockchain
+N/A N/A
PPP
= โ€œproactiveโ€ temp monitoring
ยฉ Copyright IBM Corporation 2018. All rights reserved. The information contained in these
materials is provided for informational purposes only, and is provided AS IS without warranty
of any kind, express or implied. Any statement of direction represents IBM's current intent, is
subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM
logo, and other IBM products and services are trademarks of the International Business
Machines Corporation, in the United States, other countries or both. Other company, product,
or service names may be trademarks or service marks of others.

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Gary B. Rodrigue - What is Blockchain? IBM Food Trust Overview

  • 1. What is Blockchain? IBM Food Trust Overview
  • 2. 2 The challenge โ€“ visibility across the supply chain Wholesaler records CPG / Supplier records Distributor records Consumer Demand Drivers Retailer records Producerโ€™s records
  • 3. 3 โ€ฆ with consensus, provenance, immutability and finality Blockchain provides the shared, replicated, permissioned ledger โ€ฆ Wholesaler records CPG / Supplier records Distributor records Consumer Demand Drivers Retailer records Producerโ€™s records Blockchain
  • 4. 4 Is Blockchain the same as Bitcoin? โ€“ The first blockchain application โ€“ Defines an unregulated shadow-currency โ€“ Resource intensive โ‰  Blockchain is an example of an unpermissioned, public ledger: โ€ข Blockchains for business are generally permissioned and private, and prioritize: โ€“ Identity over anonymity โ€“ Selective endorsement over proof of work โ€“ Assets over cryptocurrency
  • 5. 5 Trade Finance Pre and Post Trade Complex Risk Coverage Commercial Real Estate Identity/ Know your customer (KYC) Unlisted Securities / Private Equity Funds Loyalty Program Mgt. Distributed Energy & Grid Mgt. Medical Health Data Exchange Anti-Fraud & Port Mgt. Carbon Credit Mgt. Asset Tracking Supply Chain & Logistics Food Safety Audit Digital Rights & Copyright Mgt. IBM is making Blockchain real for business with diverse engagements delivered across industries
  • 6. 6 Where are we on the IBM Food Trust journey? Pork Traceability / safety Mango Traceability / global trade Onboarding agriculture, ingredient suppliers, retailers, CPGs, QSRs and others to provide bi-directional flow of information 2017 2018 Additional partners joined the IBM Food Trustโ„ข network, with growing food data transactionsconducts traceability pilots 2016
  • 7. 7 The IBM Food Trust solution is a set of modules built for the industry Future IBM Modules Future 3rd Party Modules / Capabilities ๏‚ง Manage Recalls ๏‚ง Recall Post-Analysis ๏‚ง Trace-forward & back ๏‚ง Recall Simulator Trace & Recall ๏‚ง Version Control ๏‚ง Authenticity ๏‚ง Automated lifecycle management ๏‚ง Real-time Sharing Certificate Management IBM Blockchain Platform Hyperledger Fabric ๏‚ง Permissioned Data Access & Entry ๏‚ง IBM Blockchain Provenance Engine ๏‚ง Secure Document Storage ๏‚ง API Integration Data Entry & Access IBM Food Trust Solution Core
  • 8. 8 IBM Food Trust is a modular solution that will continue to grow in functionality โ€ข IBM Food Trust provides a blockchain platform for the food industry as well as a variety of modules targeting real business needs for all players in the ecosystem โ€ข We are working with 3rd party providers to further increase value by providing them the ability to build and distribute modules Data Entry & Access Certifications Freshness* Consumer* Trace . . . Coming soon IBM Module 3rd Party Module
  • 9. 9 Example data integration points between animal protein producerโ€™s existing systems and IBM Food Trust โ€ฆ โ€ฆ BusinessSystems Siloโ€™d Transactional Systems Smart Scanner Camera Consumer AppData Capture App Consumer Farm / ProductionTransport Inputs Retail StoreProcessing Retail DCManufacturer DC Transport TransportTransportTransport CertificatesProduction Info Process and Operation Info Shipping Info Food Trust App Blockchain Block 1 Block 2 Block 3 Block 4 Block 5 Block 95 Block 96 Block 97 Block 98 Block 99 Block n
  • 10. 10 Data Elements available of IBM FOOD TRUSTโ„ข IBM Confidential
  • 11. 11 How are our clients leveraging IFT? Produce traceability from farm to store Traceability for agricultural inputs End-to-end traceability and provenance Traceability and certificate management for multi-ingredient products Grain Company
  • 12. 12 Dynamic Freshness/Expiration Management CONVERGENCE OF TECHNOLOGIES: Blockchain + IoT + Analytics
  • 13. 13 Platform for Data Capture and Data Sharing Manufacturing Shipping Received Issued to Production Formed & Cased Palletized Exit QA Storage Loaded onto Truck Arrived At DC Enter Zone 4 Exit Zone 4 Shipped to Restaurant Arrived at Restaurant Consumed EPCIS Event Commission Transformation Transformation Payload Observation Observation Observation Observation Observation Observation Observation Decommission Temp Type Product Ambient Product N/A Ambient Ambient Ambient + product Ambient Ambient Ambient Ambient Ambient RFIDVendorIoTVendors N/A Digi Digi N/A Digi Digi JDE iMonnit iMonnit iBright Coris N/A ShippingDistribution Restaurants We will capture ERP, RFID, and IoT temperature data, map to GS1 events and formats, and send to Blockchain +N/A N/A PPP = โ€œproactiveโ€ temp monitoring
  • 14. ยฉ Copyright IBM Corporation 2018. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. Any statement of direction represents IBM's current intent, is subject to change or withdrawal, and represents only goals and objectives. IBM, the IBM logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

Editor's Notes

  1. This is the โ€œBEFOREโ€ picture representing the โ€œstatus quoโ€ for business networks. Each participant keeps their own ledger(s) which are updated to represent business transactions as they occur. This is EXPENSIVE due to duplication of effort and intermediaries adding margin for services. It is clearly INEFFICIENT, as the business conditions โ€“ the contract โ€“ is duplicated by every network participant It is also VULNERABLE because if a central system (e.g. Bank) is compromised due to an incidents this affects the whole business network. Incidents can include fraud, cyber attack or a simple mistake.
  2. The novel Blockchain architecture give participants the ability to share a ledger which is updated every time a transaction occurs through peer to peer replication. 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 the contract for asset transfer 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. Participants SAME AS BEFORE โ€“ this is not a disintermediation play CONSENSUSโ€“ means all participants agree that a transaction is valid PROVENANCEโ€“ means participants know where the asset came from and how itโ€™s ownership has changed over time IMMUTABILITYโ€“ means no participant can tamper with a transaction once itโ€™s agreed. If a transaction was in error then a NEW transaction must be used to reverse the error, with both visible FINALITYโ€“ 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.
  3. From the ground up, we built the solution on top of Hyperledger Fabric, which is an open source framework, to support the collaborative development of blockchain-based ledgers. The IBM Blockchain Platform is an enterprise ready blockchain application development solution, from which IBM Food Trust was built. IBM Food Trust is modular and, in addition to data entry and access, there are two other modules that help to improve food supply chain transparency and efficiency: trace & recall and certificate management. Trace & Recall provides access to end to end food traceability data. Certificate Management gives users the ability to upload, manage, access, and edit compliance documentation over a trusted network. ย  We also plan to build new modules for additional functionality / capability. ย But we cannot do it all; what is also important is facilitating an ecosystem model, where anyone can contribute value and extract value. ย We are working with 3rd party data providers, like food testing companies, hardware device and scanner manufacturers, cold chain operators, and certification bodies and scheme owners to connect the solution to additional source data, to further increase value for participants