Introduction to Blockchain

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Introduction to Blockchain and applications for
MSMEs
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What is a Blockchain

• A Blockchain is fundamentally an immutable,
  distributed ledger.
• A mathematical structure for storing data in a
  way that is nearly impossible to fake. It can be
  used for all kinds of valuable data.
• Using a Blockchain, participants can transfer
  value as simply as sending an SMS, entirely peer
  to peer without the need for a central party to
  confirm the validity of the transaction.
• The first implementation of blockchain was in
  Bitcoin, where every node in the network has a
  copy of the ledger, and miners solve a
  cryptographic puzzle to arrive at a single source
  of truth.

Reduced, time, increased data security, low
transaction costs.
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History of Blockchain
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What is a Blockchain
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Types of Blockchains
Data Identity Crypto-currency Smart contracts Security (scale of 1-5) Speed Scalability Costs
Public Accessible to everyone anonymous Most of the time yes Most of the time yes 5 3 3 Very very low transaction costs
Private Only accessible to the participants Revealed to all participants No yes 3 5 5 Depends on the context
Hybrid Certain data is public pseudonymous Sometimes yes yes 4 4 4 Low transaction costs
Common Blockchain platforms
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Why use a Blockchain

• Trust and Traceability
• Blockchain enables automated trust, sharing
  sensitive data and seeing who has viewed, and who
  has modified the data. This enables full
  traceability.
• Contract management
• Blockchain smart contracts enable automation of
  record keeping and record sharing.
• This means no more hundreds of pages of manual
  contracts, no more reconciliation of
  invoices/goods receivables, no more manual
  signatures.
• Data sharing
• Data stored on a Blockchain cannot be tampered or
  changed.
• Digital certificates, digital signatures, tracing
  the history of a product before purchasing all
  of this can be done on a Blockchain based
  platform.

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Why use a Blockchain
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Where are Blockchains used

• Land records Storing land records on a
  blockchain greatly reduces time, effort, and
  costs involved in land transactions.
• Payments and billing All inter-government
  department payments, invoicing, and contracts can
  be done on a smart contract based platform.
• Trade Trade finance for verified goods and
  managing free zone contracts.
• Security Police departments can use blockchain
  to securely share information across departments.
  Whatsapp/facebook are not secure systems to share
  sensitive data.
• Healthcare Citizen healthcare records and
  transactions on a secure blockchain platform with
  specified access controls.
• Logistics Traceability of products coming into
  the municipality, and tracing produce from farm
  to folk, tracing minerals up till export.
• Citizen benefits Giving out citizen benefits,
  insurance, schemes all on a single platform
  enabling full trust and transparency. Automating
  insurance claims, schemes using smart contracts.
• Certificates Issuing birth, death, quality,
  metric based certificates on a blockchain
  platform ensures no chances of counterfeiting.

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Who are the major players in Blockchain ecosystem
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How can you implement Blockchain

• Setting up the blockchain Setting up number of
  nodes, block generation time, hosting on cloud or
  on-site.
• User roles and permissions Setting up user roles
  for different nodes and participants in the
  system
• Smart contracts Creating smart contracts on the
  blockchain for specific applications such as
  tracing a product from source to shelf on a
  supply chain.
• Securing key management Creating a safe place
  for storing private keys that are used to sign
  transactions on a blockchain.
• Deployment Deploying the blockchain across the
  departments that are going to be the users of the
  blockchain.

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Applications of Blockchain for MSMEs

• Trade finance
• The trade finance ecosystem is heavily dominated
  by paper processing with multiple participants
  along the transaction lifecycle. Time taken for
  transactions, costs for each transaction, and
  issues of data security plague international
  trade.
• With rising costs and operational risk, the
  industry has been seeking solutions to simplify,
  better manage, and digitize trade, making it ripe
  for the benefits of blockchain technology.
• Supply chain financing
• Financing invoices, financing against inventory,
  financing against goods receivables are major
  problems for MSMEs. Blockchain can reduce time to
  verify invoices and inventory through combining
  Blockchain traceability with Goods Receivables,
  POs, invoices.
• Knowing the authenticity of the product location
  data product quality supplier credentials can
  greatly help in speeding up the process of supply
  chain financing.

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Applications of Blockchain for MSMEs

• Contract management
• Blockchain can be used to create, check and
  enforce contracts between users, would be
  suppliers, clients, and customers.
• Whether it be invoicing, settling interest fees,
  creating insurance policies, handling fulfilment
  of inventory, smart contracts can make the
  contracting process much more efficient,
  especially if there are more than two parties
  involved in a transaction.
• Traceability
• Tracing a product across the supply chain is
  paramount to ensure on-time payments, product
  quality, and timely deliveries.
• Traceability is required at every level, from
  product imaging, videos showing products being
  loaded, products monitored using sensors.

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Applications of Blockchain for MSMEs

• Loyalty points
• Retailers can give out brand specific and retail
  specific loyalty points to customers. Customers
  can then trade these points on a secondary
  market, which leads to additional marketing for
  the product.
• Copyright and IP
• Potential copyright of a hardware or software
  product can be created on a blockchain smart
  contract, with tracking of who has used, with
  payments happening directly over the blockchain.
  - https//techcrunch.com/2019/06/06/is-there-poten
  tial-for-blockchain-in-copyright-and-licensing-app
  lications/
• Data sharing
• Share your customers data securely. More
  recently, with MeitY in India launching a
  challenge to create a zoom alternative, a
  Blockchain is perfect to facilitate a p2p version
  of zoom with no data privacy issues.

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Applications of Blockchain for MSMEs

• Warranty management
• Warranty of products can be tracked, and a
  digital clone of the product can be created on
  Blockchain.
• Easy warranty based redemption of the product,
  with smart contracts between the retailers,
  dealers, the OEM would provide high efficiency in
  the reverse supply chain.
• Supply chain financing traceability contract
  management payments warranty management
  e-commerce platform for all SMEs across India -
  https//www.sentinelassam.com/business/niti-aayog-
  weighs-integrating-all-smes-on-e-commerce-platform
  s/.

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Applications of Blockchain Matrix
Fields of work Trade finance Supply chain financing Contract management Traceability Loyalty points
Restaurants
Retail
Traders
Travel/tourism
Hospitality
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Applications of Blockchain for Matrix
Fields of work Trade finance Supply chain financing Contract management Traceability Loyalty points warranty management Copyright and IP Data sharing
Software development
Creative arts
Automobile manufacturing
Healthcare equipment manufacturing
Real estate
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Our products

• SHINE Traceability for the Metals industry
• A Blockchain traceability solution for the
  forward supply chain to track any product from
  source to shelf. SHINE is also a real time audit
  solution for the reverse supply chain to enable
  audit of the recycling process for plastics and
  metals.
• Sheo a Neobank on Blockchain
• We are launching a Blockchain powered NeoBank
  that can be easily integrated with any banks
  infrastructure to provide a fully rounded
  financial experience for SMEs and startups. Sheo
  combines the simplicity of e-commerce with the
  security of trusted banks and Blockchain to
  provide a new banking experience for SMEs,
  startups, and individuals.
• Murmur Detect fake news through AI and
  Blockchain
• A platform to detect fake news on social media.
  We have created a browser extension as well as an
  app that helps people detect fake news. We use
  Blockchain technology to trace the origin of a
  news item, and we use AI for our model to learn
  based on user feedback.
• https//www.youtube.com/watch?vhTnImAIadoE

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Our products
Fields of work Sheo Neobank on Blockchain SHINE - supply chain traceability Murmur secure data sharing
Retail, FB
Traders
Digital content/social media
Manufacturing
Hospitality
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Busting Blockchain myths

• Blockchains consume large amounts of power.
• Answer Only public blockchains based on a proof
  of work mechanism consume a lot of power, eg
  Bitcoin. Private Blockchain platforms are in fact
  much more economical than traditional systems
  because the extra security of traditional system
  is not needed since Blockchain is already secure.
• Blockchain databases become too large and
  difficult to scale.
• Answer In a private Blockchain setting,
  Blockchains are highly scalable at a fraction of
  the cost of a traditional database since they do
  not need any complex security systems.
• Blockchains are slow.
• Answer Blockchain is a fast growing technology,
  with latest public blockchain transaction speeds
  hitting upto 4000tps.

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Questions?
Contact Email Abhinav_at_chainflux.com LinkedIn
https//www.linkedin.com/in/abhinav-ramesh-2400b32
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Thank you