1. ConsenSys

2. About ConsenSys
OUR MISSION Assemble the tools needed to build and scale the emerging economic, social, and political operating system for the planet
WHAT WE DO
INFRASTRUCTURE Grow the Ethereum ecosystem by building and maintaining Ethereum clients and developer tools
PRODUCT Incubate new companies developing decentralized applications on the Ethereum blockchain
ENTERPRISE Consult and deliver production-ready blockchain solutions for the enterprise market
A global team of entrepreneurs, computer scientists, designers, engineers, and business leaders laying the foundations of a decentralized world

3. Key Pain Points in Logistics and Transportation
Multiple Participants
Manual, Paper Processes
Siloed data in separate ERP or OMS systems
Challenges in tracing errors
Significant room for error
Time-lag in resolving disputes
Common Issues
Costly, time-intensive reporting
Inaccuracy can lead to risks/fines
Smuggled or falsified goods
Loss of goods in transit
Regulatory Compliance
Loss or Fraud
A distributed immutable database can allow for simplified, cross-party track and trace of assets
Why is blockchain exciting in this industry? Clients say, I’ve heard all this hype, but I don’t understand how it can be useful – I don’t even know what it looks like…bitcoin jokes.
Let’s start with stuff you know – what’s useful for a distributed database? A lot of things are fine with SQL, so why use a distributed route?
Well, there’s a number of reasons. And it happens transport and logistics have all the typical pain points of an industry ready for decentralization
Many participants who need read/write access – so need distributed access. Need to work in a network or consortium and can see an uncorruptible audit trail. Shipping – clients, shippers, ports, insurers.
Manual processes, which is often done manually – through paperwork, spreadsheets, s. Automated through smart contracts which can capture the business logic that exists across entities rather than within. Insurance in particular has tons of paperwork to prevent fraud, but still about 10%.
Regulatory compliance – whether that is tracking miles for taxes or import/export. Anyone has tried to move things through a port knows how much inspection and clearance is needed – can really slow things down.
There is a lack of trust – Yep, there is an exchange of value which creates an incentive to cheat. There is a need for verification – Yep, There is a lot of fraud – smuggling or fakes. Fake fair trade coffee or fake drugs, common problem

4. Potential Uses – from Feasible to Futuristic
Industries
Food
Shipping
Internet of Cars
Retail
Vehicles
Trucking
Use Cases
Supply Chains
Insurance
Mobility
Near Future
In Development
Long Term
Blockchain innovation is improving throughput, latency, and security to expand the possible use cases
What are the key use cases? And high profile projects
Many – which range from the practical for today to the fanciful
As some of you who are more practiced probably know, blockchains today face some scalability issues in terms of throughput. Other challenges like making it more user-friendly
“Farm to table” isn’t just an expensive place for brunch – can mean tracking supply chain of food from farm to restaurant – Wal-mart POC
Azure has IoT Hub for temperature sensors, that data could get written to an Ethereum blockchain also on the cloud – available to parties involved in the blockchain network
Medium term – transforming insurance. You can share vehicle telematics from cars that’s tied to their VIN, or data across brokers and insurers
Prevent fraud through immutable shared record – whether it’s a picture of your damaged car or verification of repairs
Down the line – M2M interactions such as autonomous cars, you’ll need a digital signature so you know that car talking to your car isn’t a hacker. Imagine “the Internet of Cars”
You can just go to the basement of your apartment and swipe into any available car, which automatically bills you – P2P car sharing
More realistically, you can use blockchain for MRO of truck fleets – participants for any vendor/contractor that does maintenance, and can track data from many parties

5. Potential Benefits – Supply Chain Example
Digital Transformation 1
Instantly presentable and verifiable asset information by all participants
Peer to Peer 2
Asset attribute and state lineage from origin through chain of ownership
Trustless 3
Trust and reliability with cryptographically secure and immutable blockchain
Potential benefits – supply chain example
Digital transformation – many companies might be advanced internally, but coordinating across with paper, and spreadsheets – common issue we found with clients
Even if they are working with top notch supply chain solutions or providers, they might be working with distributors or endpoints that are completely manual
Farmers are an easy example of a critical step but behind technologically (food)
Supply chains change and require flexibility – expensive custom integration is not the solution
Reduce cost of manual tracking, reduce errors, data is available further up the chain – improve just-in-time management
Reduce costs of waste, inventory
Shared business logic, automated via smart contracts
Peer to peer throughout the chain
The mom & pop store gets as much access to useful info for them as everyone else
Big players can’t cheat or exploit smaller players – not giving all the control to Wal-Mart or FedEx, would charge a lot anyway and then create a barrier to entry
Huge economics of scale in SCM/logistics – bad feedback loops that discourage competition
Also economies of scale in information – something smaller companies need
Audit, reliance on third parties, loss (optimization)
Trustless through cryptography – expand/adjust your supply chains without intensive integration or huge expense
No end to end single source of truth – instead has to be pieced together from companies that have
If you’re late, just blame your supplier…who can check?
Is it really organic? Is it really fair trade? A sticker alone isn’t a good record…
Data security and privacy – supply chain info is sensitive data, reveals things about demand, sourcing…can’t publish on the internet
Nor am I going to integrate you into my ERP
Blockchain can create consortia, where you can have transparency and privacy…innovations like the Coco framework by MSFT

6. High Profile Projects in the Industry
Industry Player
Blockchain Provider
Maritime Insurance
Trade
Autonomous Vehicles
High profile projects in the industry
Microsoft – another pilot with Maersk, looking at maritime insurance
Microsoft – another pilot with Maersk, looking at maritime insurance. “transparency across an interconnected network of clients, brokers, insurers and other third parties.” Physical contracts getting moved back and forth on ships
has IoT solutions on Azure for temperature sensor, and that data gets written to an Ethereum blockchain also on the cloud – available to parties involved in the blockchain network
Funny haven’t seen AWS move much in blockchain – probably because they’ve already got so much of your logistics data…
Singapore Port Authority and Pacific Lines Intl – working with IBM to create a consortium blockchain where goods are tracked through the
As many as 15 different steps needed to clear goods – banks,
Then regulators have rules about manifests, etc. The regulator can just be a participant in the blockchain and view any necessary reports
Toyota – working with MIT in its Research Institute
Actually experimenting in a number of areas
Using blockchain to record driving data for granular insurance pricing (usage-based, data-based)
Enabling P2P car sharing and accumulating data for better consumption in autonomous vehicle programs

7. ConsenSys’ Contributions - Supplychain
Rock and fluid samples are high value assets; their provenance is needed for regulatory compliance and their analysis inform important business decisions
Current methods to track samples from collection through shipment, analysis and storage are error prone and do not provide business stakeholders immediate methods to access a sample’s current custodian, location, status or history
A transparent real-time sample tracking system is needed for sound business decisions and accurate timely compliance
Problem
Solution
ConsenSys built an Ethereum blockchain-based real-time sample tracking system that captures an auditable history of custodianship and an immutable record of associated analysis requests and reports
This decentralized system allows the natural resource company, its analysis and storage vendors, and regulatory agencies to share a single source of truth in real-time
This role based system simplifies data capture and includes additional provenance data about samples for operational ease, improved decision making and timely compliance
We worked with the one of the top 2 mining companies in the world to track rock samples from rig to lab to result
These are high value, and errors have regulatory implications; there is also a big incentive to commit fraud
They were losing samples, which are expensive to get when you’re drilling 50 miles in the middle of the ocean. Not sure how you lose a 10 foot tall cylinder of rock, you might have bigger problems than blockchain can fix
You can add a regulator as a participant in the blockchain network, so they can access reports that used to be manually generated
They were also working with labs that provide analysis (outsourced), vendors who provide storage (bunch of rocks), and the regulator
We are currently in beta on a supply chain product with several of top ten companies globally…pharma, O&G, consumer
Asset agnostic platform
Define your own workflow and generate a UI, or just plug the API
We delivered a production ready, blockchain-based, enterprise-grade, global resource sample tracking system which is being used on a daily basis

8. ConsenSys’ Work in Mining (1/2)
This view shows the history of a sample and its corresponding analysis request history.
Single click to relevant detail and history
Updated in real time

9. ConsenSys’ Work in Mining (2/2)
This dashboard shows a user friendly view of all asset states on the company's multi-participant supply chain application
Application is currently in production
Transparent view of the entire supply chain using one application
Conclusion
Many opportunities…2017 was the year of the POC. Implementing will be the next big challenge, and the tech has to catch up
In our view, good to experiment but the “many webs” will transition to becoming more interactive – make a more collaborative system for everyone’s benefit