This document discusses the benefits of using blockchain technology to improve public transportation systems. It proposes creating a non-profit organization called TransToken to assess how blockchain could be used to harmonize payment systems and data across different public transportation operators. Key benefits mentioned include reducing fees, improving transparency, enabling seamless travel, and providing benefits to operators, authorities, passengers, and other stakeholders. The document outlines next steps such as mapping existing systems, analyzing data and governance requirements, and deploying a proof of concept project. The overall goal is to assess the feasibility of a blockchain-based system to optimize legacy processes and systems in the public transportation industry.

1. BlockchaininPublicTransport
Impact and benefits for all stakeholders…

2. TransToken
TRANSTOKEN is founded as a 'non profit' organisation
with the sole benefit of :
§ Stimulate innovation in 'public services'
§ Enhance the customer experience in these services
§ Has proven industrial expertise in Blockchain, IT and
Public Services from the inside
§ Understands the contractual-, operational -and client
impact on the topic
§ Has no commercial interest in finding the 'best solution'
§ Reason of existence is to assess the opportunity and
feasibility of deploying a harmonized system for public
transport relying on blockchain-like solutions
§ Other Public Services will follow after improving the
findings of the Public Transport ‘verttical’
WHO

3. Blockchain
Justification
§ Todays a majority of companies across all public sectors are facing the
burden of their legacy systems, i.e. aging operational layer to perform their
core business.This is the primary roadblock when talking about evolution or
even worst innovation!
§ The public transportation ecosystem carries as many legacy systems as
actors evolved.This creates all kind of payment cards, which are “single-actor
usage” and cannot be used somewhere else. In addition, the landscape of
operational systems active on different regions, meaning at a local or national
scale, within different contracts are heterogeneous.This diversity between
operators, hardware systems, ticketing systems, on line systems and all kinds
of identifiers like bankcards, operator cards, chip cards.
§ All the previous reasons make of a Blockchain-like solution a perfect
candidate to harmonize systems between all stakeholders (Public transport
operators/Authorities, Banks, grantors) and all payment methods. Blockchain
could be used to store activities of host operators’ customers. Blockchain can
bring the same register or referential to all the participants of a value chain.
§ Finally, we believe in Blockchain because it is a coordination mechanism. A
technology that simplifies collaboration between individuals and/or
companies.The Blockchain is the pre-eminently coordination mechanism of
communities, the "commons"; the data stored in an (open) Blockchain are "of
everyone and of no one".
§ Blockchain is able to play an important role in developing alternatives to
platform monopolies locking the market growth potential.
WHY

4. TransActions
WHERE

5. § Ease and speed of transactions
§ Remove intermediate fees
§ Clear referential for future changes
§ Less governance issues
§ Better transparancy for optimisation
§ Clear reporting for stakeholders
§ Reliable and less errors
§ Solid and GDPR compliant
§ All stakeholders benefit
§ Seamless travelling and transactions
§ Maintenance cost reduction
TransActions
WHAT

6. TransActions
HOW

7. TransActions
HOW in
PT

8. Blockchain
JustificationinPT
§ The general objective of this project is to assess the opportunity and feasibility
of deploying a harmonized system for public transport relying on Blockchain-
like solution. Such a system would be a key enabler for the transportation
industry.The actors concerned and impacted by the implementation of such
solution are:
§ Public transport authorities – Grantors – Communities (PTA)
§ Public transport operators (PTO)
§ The passenger/end-customer
§ System integrators and IT solution providers
§ Payment institutions / Clearing houses, Telco”s, Retail, Rental and Leisure
§ The Blockchain platform would be become a common transactional
environment for all actors, as listed previously. Such a common platform will
unlock the potential for services at different stage in the value chain:
§ B2C - Customer of public and private transport operators
§ B2B – Among public and private transport operators
§ B2B2C - Enabling other services that could be provided by other organizations
(Government, Banks, Retail, Leisure, rental companies, etc.)
§ Therefore, the approach is to assess if and how Blockchain inspired
technologies may help the transportation industry.The primary objective of this
feasibility study is to assess the opportunity, benefits, and challenges of creating
at a national or European level an enabling infrastructure supporting
transportation-based services, in optimizing the legacy processes and systems.
ACT

9. Grantors’/PTAs’
BENEFIT
§ Before
§ Lack of transparancy (stakeholders don’t share data)
§ No common referentials between operators
§ Interregional and multi-operator differences
§ Value for money (operator transparancy – before and after bids)
§ Governance between operators
§ Lock-in on payment systems
§ No performance based contracting
§ After
§ Full transparancy on customer/operator behavior and satisfaction
§ One referential, payment method and performance KPI’s
§ Seamless contracting and travelling (MaaS preperation)
§ Optimisation of capacity versus demand
§ Full control with city or PTA region (bordersless and
§ Governance with the grantor with clear performance view
§ Independant on legacy payment and ticketing systems

10. Operators’/PTOs’
BENEFIT
§ Before
§ Lack of standardisation on performance KPI’s
§ Diverse payment systems (high cost on contract management)
§ No referentials for data analysis (performance and behavior)
§ Keep the data – don’t share for future bids
§ Mistrust between operators
§ Lack of customer satisfaction and GDPR clearance
§ No incentive to optimise
§ After
§ Standardisation brings equal competition and lower prices
§ One system, one referential, lower cost, optimisation possible
§ Business Intelligence without fear of competitive disadvantage
§ We all have acces to the same data – business expertise valued
§ Operators will be judged on competence - not on hiding information
§ Customer centric operation brings incentive for SMART contracting
§ Optimisation will show in KPI’s and will be rewarding (for ALL)

11. Passengers’
BENEFIT
§ Before
§ No seamless travelling or MaaS solutions (subsidy driven)
§ Unclear tarification – difference in KM’s, Zones or subsidies
§ Mistrust in the system (data protection and continuity after bids)
§ No optimisation on routes, time-tables and personalised transport
§ Multi operator, Inter regionality and Cities propositions unclear
§ Loyalty not rewarded due to the above (not on miles or euro’s)
§ No interconnection between travel, leisure, schools and retail
§ After
§ Passenger driven propositions with full transparance on value
§ Capacity and demand driven value propositions (MaaS)
§ Full transparancy and influence of passengers’ interest in bids
§ Optimisation driven contracting for operators in benefit of customer
§ Borders will dissapear between operators, regions and Cities
§ Customers will be valued on bying power and wider interests
§ Full journey view – wider value of the token for ALL

12. SystemIntegrators’
BENEFIT
§ Before
§ No referential for Public Transport (IP4PT and TransModel….)
§ No business intelligence possible due to multiple legacy systems
§ No data sharing due to competitive risk and lack of Big Data
§ Lack of general Digital View in PT due to aging systems and staff
§ No cooperation between optimisation and softwares suites
§ All integrators focus on small part of the Customer Journey
§ Grantors dominate with budget view – lack of integrated view
§ Disruption focuses on bypassing current system – no MaaS integration
§ After
§ Referential will be automatic due to integration and refresh of referentials
§ Business Intelligence layer on top will be launch for development needs
§ Data will be available for ALL and motivates new/disruptive solutions
§ New generation and new mindset will create jobs and future PT
§ Value chain will be reviewed and ‘Vertical Optimised” – investment switch
§ Integration on ‘total solutions’ inevitable – regroupement of Software Houses
§ Budget will be on performance and Token will dominate the demand
§ Current systems need to be optimised and Maa$Token$ will be the future

13. Loyalty/Payment
BENEFIT
§ Before
§ No referential for Public Transport Loyalty (localisation and behavior)
§ No demographic intelligence possible due to multiple referentials
§ No value-sharing due to competitive risk between stakeholders
§ Banks and Telco’s fear of loosing their monopolistic Tran$Action $y$tems
§ All Loyalty and Payments focus on small part of the Customer Journey
§ No integration of Loyalty systems – different values and lock-in strategy
§ Rental seen as competition of PT instead of complentary system (MaaS)
§ Home, holiday, communication and work not seen as part of the journey
§ After
§ LandMiles philosophy like Airlines possible (can even be integrated)
§ Demographic Intelligence available on total Journey (incl. localisation)
§ Stakeholders will share the customer and strategic positioning valued
§ Tokens will be translated into the same value for all on bying power
§ Customer Journey will no longer be cut up but valued as ONE
§ Lock-in means losing the wider commercial value and will dissapear
§ Rental companies will be integrated in future Blockhain/Token propositions
§ Extra value to be found on wider marketing potential in ALL value chains

14. NextSteps
§ First, a mapping of existing systems should be realized in order to assess the
complexity of integration with, or evolution of, legacy systems, notably for services
relying on "building blocks" required to deliver the service today.
§ This impact analysis will assess the possibility to replace / integrate "building blocks”
within the Blockchain solution.
§ Then, it will list all the interfaces required to interconnect systems and so their level of
criticality and priority for the project.
§ In particular, attention will be paid on how to ensure interoperability and interactions
with legacy systems and other "Blockchain-based solutions” for the wider customer
journey and SMART contracts at national or other commercial levels, as well as the
organizational and integration aspects.
§ Use the TransToken foundation to secure interest for the whole sector instead of
commercial gain for all stakeholders to avoid conflict of interest and blockages
§ Set up an ‘arbitrage board’ for conflict management and protection of IP leakage
§ Involve the end-customer from Day One – set up a ‘user group body’
CRAWL

15. NextSteps
§ Describe all the requirements and features such Blockchain-based solutions should
present for supporting those services.This task is about characterization of a common
infrastructure, in terms of architecture, capacities and key features (e.g. regarding
possible need of tokenisation or use a self-backed cryptocurrency.
§ This analysis will address in particular the governance and governing rules that should
be in place and how to ensure compliance with law and regulation.To solve the
potential currency problems the Blockchain application will use a token, which will not
be rewarded to avoid speculation.To do so, the Blockchain token envisioned will only
track exchange among the industry stakeholders for clearing issue between systems
of the transportation industry and other commercial propositions during the journey.
After that, based on the scope of the Blockchain solution we will have to understand
the data issue.The heterogeneity of systems in place will require analyzing the
complexity to achieve a common data format.
§ After that, the governance for the application shared among all stakeholders (as
described in the slides before) will have to be discussed and designed.
§ So, we need to be confident on customers detection/positioning.Then, we will be able
to generate transactions based on usage in order to build the common referential
among all stakeholders (Bank, host operators, governments and commercial Loyalty
and payment industries.).
WALK

16. NextSteps
§ Deploy Proof Of Concept with:
§ Clear SMART contracting as a base for a tender
§ The customer Journey well positioned
§ All stakeholders involved (as described on the slides)
§ System Integrators will build the solution – IP independent
§ Regulatory complicance to be described in the tender
§ Governance to be signed off before
§ Customer User Groups involved from Day One & give governance in tender
§ Budget to be shared between all stakeholders – same incentive and speed
§ Data Sharing agreement without borders to learn/optimise
§ Start in multi-operator City before Inter-regional or International
§ Set-up independent ‘arbitrage board’ (UITP) for conflict management
§ Use ‘only the best’ future minded people to avoid legacy thinking
§ Build on the ‘newest technology’ and involve Top 5 software houses
§ Use local development people to avoid ‘knowledge leak’
§ IP will be in TransToken foundation to avoid conflict of interest
RUN

17. Let’s build the future NOW…
A public organisations' ability to learn and take that ability into action
is the ultimate competitve advantage against disruption of their business model…
www.transtoken.org
2018