Fashion Builds Trust with Blockchain

Fashion

The gig economy and millennial are placing experience over just customer service and rewards over loyalty. The expectations are steep rising when it comes to the Apparel and Footwear as the industry leaders are elevating to overall fashion management. Combined with richer experience expectations, consumers are demanding more awareness with granular traceability and sustainability attempting to drive deeper to know more about apparels they buy, including the story behind each garment and how and where they are manufactured. It is high time for fashion brands to prove their trustworthiness necessitating complete transparency across the value chain on ethical sourcing and sustainability. It is more important in current times where many apparel companies lack ethical supply chains, and ~10% of global emissions are produced by the fashion industry alone.

The blockchain beyond cryptocurrencies offers a decentralized structure that provides immutability, transparency, and security making data trustworthy and scalability.  Blockchain technology has the potential to enable creating a fair, safe and more transparent fashion industry.  In this blog post, I will try to articulate how blockchain can bring added value to transforming business model and culture of the apparel industry from a supply chain that prizes consumption to a demand chain that takes pride in sustainability.

By leveraging Blockchain, fashion companies can offer greater transparency in supply chains creating new incentives for companies to change the way they do business and showcase their organizations. As shown in the diagram above, Blockchain helps create a peer-to-peer and decentralized network that connects all stakeholders in the value chain (design houses, farmers, raw material suppliers, manufacturers, transporters, distributors, retail outlets, banks, consumers and other parties of the complete supply chain). Using a decentralized system, all communication between these stakeholders will be direct and will not pass through a specific central entity. Due to its decentralized nature, the blockchain platform will not have any single point of failure and will not rely on any single entity.

The blockchain has demonstrated fashion supply chain transformation improving track-and-trace and inventory management thus far. By a further confluence of Blockchain, 3D printing and AI/ML technologies, the fashion industry may very well see much more dramatic improvements. Blockchain technology empowering fashion business with uniform real-time access to updated product information supplied by brands, a universal pathway for retailers to immediately report back to suppliers on aspects like stock levels and customer feedback, and has potential to add further on to this new building block structure.

Summarizing below how Blockchain technology further augments fashion value chain capabilities that help to deliver better outcomes.

Fashion Value Chain Capability Building with Blockchain:

Blockchain technology can provide consumers visibility into the entire fashion lifecycle of a garment, including materials and vendors used, the labor sources, and even the production, shipping and warehouse locations involved. Everyone from the farmer to the textile mill to the garment factory can communicate directly with the brand that buys from them. As well, consumers can interact directly with the brand/design house for co-creation or customization of the garments, influencing pricing and even co-investing in the concept. I can all out the following to articulate how Blockchain is augmenting fashion industry capabilities,

  • Create new levels of trust among Suppliers, Brands, and Customers
  • Design better PRODUCT, Offer improved SERVICE and Tell a unique STORY
  • Transform Apparel companies to Fashion Conglomerates

Delivering Better Outcomes with Fashion Blockchain:

Global companies like Patagonia and Everlane have been successfully betting on sustainability and supply chain transparency as a distinct selling proposition enabling customers to identify their suppliers. How Blockchain is delivering better fashion outcomes is summarized below.

  1. Enabling sustainability and circular economy: Blockchain is boosting fair trade practices offering consumers’ increasingly demanding transparency and allowing them to know where the fashion product is coming from.
  2. Better Traceability and Transparency: Blockchain enables fashion companies to communicate with the customers the complete product story (DNA) for each and every fashion garment. This includes comprehensive details on all stages of product life cycle starting from design inspiration, raw materials, manufacturing and distribution to the stores and also providing visibility of all stakeholders involved in the value chain to create traceability and transparency in true sense.
  3. Improved Experience & Goodwill: Blockchain applications allow customers to scan the tag and discover the history of every garment and thus help in improving the customer buying experience. Blockchain applications also can help fashion companies who license their trademarks or designs in tracking the sales and working out the royalty payments. As well, it enables design houses to document process steps and thus having the organic evidence of ownership on the designs.
  4. Brand Authenticity:  Fashion products can be verified by both retailers and consumers since branded garments pass through the blockchain steps and hence can be tracked. This could help to reduce the counterfeiting and diverting out of authentic products. Every time a fashion item moves from one place to other, its tag or code gets scanned thus recording its location with the time stamp. Consumers would be able to scan the item and trace its journey from raw material stage to their home and would be able to ascertain if the product is real or a counterfeit. Blockchain applications can help provide protection against the counterfeiting.

Fashion Blockchain Use Cases:

Blockchain is creating enough traction in the Fashion industry and successful use cases are increasing day by day. Here are few use cases of interest,

  • VeChain solution to tackle the fraud and ensure anti-counterfeiting of fashion products.  It provides a company’s product with a QR code or smart chip with its own unique ID. The company embeds the code, or chip, in its products, scans it, and stores it on the blockchain. The company can then track the product along with each phase of its life cycle: from its creation to the consumer. The blockchain is tamper proof. Consumers will know when they purchase that they are purchasing the original, authentic product.
  • Fashion Coin (FSHN) is a peer-2-peer version of electronic cash for Generation Z. Based on creativity, game theory and steganography+cryptography, Fashion Coin provides seamless and effortless online payments  – with maximum speed and limitless scale.
  • LUKSO is an open blockchain ecosystem specifically created for the fashion and lifestyle industry, providing a decentralized innovation and trust infrastructure for fashion brands, start-ups, and customers. The LUKSO architecture encourages its users to design and deploy an infinite number of innovative features for the modern fashion system: it opens up digital wardrobes and sharing economies, secures IP rights and authenticity, enables omnichannel communications and novel ways of funding collections.
  • faizod is currently paving the way in this area, working together with a logistics company to pioneer a prototype of such a Blockchain-based tracking system. The prototype pairs Blockchain with radio frequency identification (RFID), which uses radio waves to transmit information to a reader.
  • Provenance is increasing the transparency in the fashion supply chain by tracking the journey of raw material through the supply chain, this collaboration between fashion designer Martine Jarlgaard and Provenance highlights the role of blockchain technology in increasing transparency and substantiating claims in the fashion industry.

Given all the advantages, blockchain clearly seems to be the future for fashion, however, to speed up the application, a single and comprehensive blockchain standard adopted by the fashion industry has to come in fast.

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Life Reimagined with Seamless Travel Experience

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Reimagining life in every aspect and bouncing ideas that create better experiences is the motto of this blog page. As per the AARP research in 2018, 57% of leisure travelers like to spend time with family and friends, 49% want to relax and rejuvenate, and 47% try to get away from routine stressed life. But the real-life experience of travelers is just the opposite of these expectations. Solutions that offer seamless travel experiences is the need of the day for better leisure outcomes. The ideal travel experience of current generation passengers would include:

  • Real-time journey information delivered to their personal devices
  • Biometric identification to facilitate their travel processes
  • Automation of more airport processes
  • Wait times of less than 10 minutes at security/immigration
  • Bags tracked throughout their journey
  • A human touch when things go wrong

What if a passenger arriving at security and immigration checkpoints has been previously vetted at check-in allowing a seamless, contactless process where the passenger simply needs to look at a smart camera to be cleared and allowed passage? Offering universal travel pass integrating cross-border security checks, hotel check-ins and entire travel life cycle tied with digital identity should be the new mantra of the travel industry.

Such universal travel passes will create a newfound demand for travel consultants to be more integrated with various service providers, making it a lucrative profession. Each traveler will be assigned a passenger record name/record locator so that all the services they opt for will be availed and kept secure, and the travel consultants will be the integral component of providing this.

Seamless universal travel experience is a great value to the travelers. And such a seamless travel experience is becoming a reality with new digital technologies. These technologies can enable travel agencies to transform into ‘digital travel agents’, enabling the booking process to become a trip planning experience, where agents will be able to provide more content, information and booking details. The congruence of technologies like IoT, Cloud, AI, Voice-Enabled Devices, Blockchain, and 5G has the potential to offer better experiences to travelers. As tourism continues to grow and route availability continues to shrink, airports are turning to seamless travel initiatives to help passengers stay on the move and increase their satisfaction.

The dominant technologies enabling seamless universal travel experience include,

  • Internet of Things: IoT can create a seamless trip where travelers are connected to their travel agents at every stage. IoT has the ability to connect customers with travel consultation throughout the entire lifecycle of the travel experience. For agents, a global or universal passenger record can allow travel consulting to change according to any requests from the customer. As for travelers, agents can provide a universal ‘travel pass’ that can be used for a trip, without separate boarding passes, hotel check-in, bus passes, and even theme park tickets. This universal travel pass would also handle multiple currencies, where travelers won’t need to worry about exchanging currencies when traveling between different countries.
  • Cloud – Improves the collaboration with travelers for a more personal experience transforming the offline model of the travel agent to have access to all cloud-based bookings regardless of location
  • AI and voice-enabled devices – AI has the potential to transform the inevitable hassles and inconvenience of airport travel into delightful passenger experiences. AI could enable travelers can leave their home with one single biometric identifier – and board a plane or cruise, check into their hotel, and hire a car with that unique identifier. Acuity Market Intelligence forecasts that the total number of airport biometric touchpoints – increasingly AI-enhanced facial recognition – at check-in, bag drop, security, and boarding gates will increase at a 27% CAGR from 2019 – 2022. Voice will be the future of booking travel. Travel agents are then able to take advantage of this and sell high value and high engagement products via voice
  • Blockchain – Blockchain technology could develop a ticket-booking solution that integrates multiple agencies – long-distance, regional,  and local agents, including Uber/Lyft car- or any other car-sharing firms. With a blockchain-based solution, travelers can book their travel with agents participating in the network with just a few clicks on a single website, without the need to switch across multiple sites and providers. The blockchain ledger can then record single customer purchase and even accurately can split the payment among the providers.
  • 5G network high speeds – 5G will give agents a better way to connect with travelers during their trips. If the traveler has a 5G connection, that allows the agent to be able to have a better video call with the traveler, without physically being there with them, assisting them along the way. 5G combining with VR/AR technologies offers a more engaging and immersive booking experience

Travel & Tourism sector should embrace the change creating a mass personalization contextualized to the travelers and leveraging ecosystem working with all stakeholders involved to maximize value leveraging biometrics and universal digital identity for truly seamless passenger experience.

Future of Financial Services Workforce

UntitledFinTech disruptors have been finding a way in by focusing on a particular innovative technology or process in everything from mobile payments to insurance. A forte of technologies “AI-ML-DL-NLP-CV” is fueling the FinTech innovations. The large financial services companies can’t be complacent as FinTechs have been attacking some of the most profitable elements of the value chain and as well as areas which were historically subsidized.

Let us refresh our memory on these AI technologies and their relevance to the financial services industry.

  • AI makes machines to learn from experience and perform human-like tasks – AI offers robotic & intelligent process automation (RPA/IPA) of financial processes
  • ML is a specific subset of AI that trains a machine on how to learn – ML is enabling algorithmic trading lead to better predictability and decisions around credit and consumer lending, thereby lowering risk to the bank or financial institution
  • DL is s a type of ML that trains a computer to perform human-like tasks, such as identifying images – leverage big data (customer demographics, consumption records, etc.) to parameterize a DL model that can simulate the likely response to new product/service configurations (e.g. new credit card with cash rewards, moderate interest, zero interest on balance transfers, etc.)
  • NLP is a branch of AI that helps computers understand, interpret and manipulate human language – NLP is shaping the future of banking with voice assistants and ubiquitous computing.
  • CV s a field of AI that trains computers to interpret and better understand the visual world –  CV is transforming financial services by using appealing visuals and new solutions for a new world where seeing is believing

These new-age FinTech developments are leading to a continuous transformation of the financial services workforce. The changing landscape and evolving financial services resource pyramid is presented in the diagram above. I would like to highlight a few trends reshaping the talent of financial services on this blog post.

  • AI automating business-as-usual activities of financial services: Robots and AI already started addressing key pressure points, reduce costs and mitigate risks. Building capabilities to target a specific combination of capabilities such as social and emotional intelligence, natural language processing, logical reasoning, identification of patterns and self-supervised learning, physical sensors, mobility, navigation and more are in swing. The goal is to look far beyond replacing the bank teller. There are whole categories of work that had not been seen as cost effective to automate. However, with lightweight software ‘bots’, workers are freed up to focus on higher value activities.
  • Changing patterns with Human vs Machines foray: Are financial services firms moving to re-shoring of work with talented machines? The answer seems to be, Yes. In the last two decades, many financial firms have ‘offshored’ repetitive tasks to lower-cost locations such as India, China, and Poland. However, relative costs for labor in those regions have started to rise. Combine this with improvements in robotics and AI capabilities and machines are becoming credible substitutes for many human workers. As the capabilities continue to improve and technology continues to drive down the cost of machines, these forces will combine to spur re-shoring, as more tasks can now be performed at a competitive cost on-shore. Even functions that seem dependent on human input, such as product design, fraud prevention, and underwriting, will be affected. At the same time, the need for software engineering talent will continue to expand
  • It is not just automation, Technology is picking high-end work: ML is enabling next-generation algorithmic trading systems are moving from descriptive and predictive to prescriptive analysis, improving their ability to anticipate and respond to emerging trends. And while algorithm trading programs were once limited to hedge funds and institutional investors, private investors can now get access to them too. AI soon automate a considerable amount of underwriting, especially in mature markets where data is readily available. Even in situations where AI does not completely replace an underwriter, greater automation would allow humans to concentrate on assessing and pricing risks in the less data-rich emerging markets. It would also free up underwriters to provide more risk management, product development advice and other higher value support for clients.
  • While building machines, the real focus is on accessing the necessary talent and skills to execute strategies and win markets: Financial services firms lack the internal knowledge and expertise need to implement a customer-centric approach. For example, a mainframe programmer who maintains a core banking platform may not have the skills or interests to learn to code AI applications. Many senior IT executives, non-IT staff-members, and even technical personnel do not have the skills needed to build and operate an effective digital channel offering. Financial institutions are starting to realize they will need talent with very different skills. This might mean finding more industrial engineers for robotics work, or retraining underwriters to do higher value work once AI is used to automate certain existing functions. But the issue runs deeper than developing a different competency model. First, firms to understand what is already working and what needs to be done differently. This might involve changes across the human capital strategy through revitalized recruitment, learning and development, partnering and cultural initiatives.
  • The contingent workforce is creating the talent-exchange mindset: financial firms need to address is the growing preference for flexibility and entrepreneurship among many in the labor force. In the United States, the US Chamber of Commerce has found that 27% of the labor force is currently self-employed, and some believe that this ‘contingent workforce’ could rise to 40% or more within several years. Practically, for this reason alone, financial institutions will need to adopt a ‘talent exchange’ mindset, leveraging part-time and/or self-employed individuals in a creative manner. This may range from bidding out specific tasks or work to expanding the use of seasonal or temporary workers. Of course, this will introduce challenges around culture and quality, and this will introduce new opportunities as well. For example, we might see employers using online platforms to manage confidentiality and legal risks in creative ways.

Artificial Intelligence capabilities impacting the financial industry and thereby attitudes toward work continue to change, some of the attributes that have benefitted institutions in the past such as big firm and stable employment are slowly losing their appeal. Refreshing financial firm’s approach to recruiting, learning and development, and culture may offer an effective way to address issues that FinTech has brought into the open market.

Welcome your ideas in further spotting future trends in financial services workforce.

 

Crypto adoption is next on the radar

Image result for bitcoin adoptionAs progress is made in solving bitcoin trilemma, Decentralization – Security – Scalability, the next focus area is increasing the adoption rate. With a lot of lull in the crypto market until recently, the subject of crypto adoption is being echoed by adversaries and supporters to prove their point of views. In this blog post, I will be taking a closer look at drivers of crypto adoption.

  • Samsung Galaxy S10 is unveiling the mass adoption of cryptocurrencies with future built-in and secure mobile technologies. Galaxy S10 is built with defense-grade Samsung Knox, as well as secure storage backed by hardware, which houses your private keys for blockchain-enabled mobile services. Would this take the crypto to the hands of mass? Here are the details.

    https://news.samsung.com/us/samsung-galaxy-s10-more-screen-cameras-unpacked-2019/

  • tippin.me get tips lightning fast. Twitter with 270million+ users has integrated tipping service on lightening network. Lightning Network is a technology built on top of Bitcoin that provides instant micro-payments almost for free. Tippin.me makes Lightning Network easier, by giving you a simple web custodial wallet to receive and manage Bitcoins through Lightning Network. Join now to start receiving tips and micro-payments right away, just sharing a link. There are a lot of features in the roadmap if this gets traction: integration with merchants, better wallet functionality, etc.
  • Lightning Network, beyond the above use case, is enabling Scalable, instant blockchain transactions for the future. The drawbacks to bitcoin’s decentralized design are that the transactions confirmed on the bitcoin blockchain take up to one hour before they are irreversible. Micropayments, or payments less than a few cents, are inconsistently confirmed, and fees render such transactions unviable on the network today. The Lightning Network solves these problems. Crypto users are soon experiencing scalable ad low-cost instant payments with an ability of cross-chain atomic swaps.
  • Making buying easy: As the avenues to buy Bitcoin gets easy and so the adoption. Since Virwox shut down its PayPal deposits in January 2019 it got really hard to obtain Bitcoins through a PayPal account. The two main methods that still allow you to buy Bitcoins with PayPal are, eToro – for those who only speculate on price and don’t need access to the actual coins and LocalBitcoins – for those who want to actually withdraw their Bitcoin to their own wallet
  • Spontaneous liquidity is becoming reality with Coinbase cash withdrawals to Paypal. Starting in December 2018, U.S. customers can instantly withdraw Coinbase balances to PayPal, providing even faster access to their funds through one of the world’s easiest and most widely-used payment platforms. These withdrawals are not only fast; they’re free and incur no fees.
  • Troubled Economies. One of the Satoshi Nakamoto’s vision for inventing Bitcoin was helping the troubled developing nations to get out of their misery brought upon them by their flawed centralized banking systems. Venezuela is one such country which has seen its financial economy go down the drains, the inflation has made their fiat not even worth the paper they are printed on. When all doors seem closed for Venezuela including petro coin (due to technical weakness), Bitcoin came in as the savior they were looking for. The government legalize the use of Bitcoin in the country and are looking to incorporate it in their financial system so that citizens can use Bitcoin in their day-to-day life.

Alongside all the above parameters, crypto wallets, transaction volumes, computing power, ETFs and Futures, games, arts, web searches for bitcoin terms, and industry hirings, shows bitcoin and crypto adoption is on an upward trajectory.

AI in Operations (“AIOps”)

AIOps

Recently I was searching for verbatim “AIOps” on Google and got 624K results. Without many surprises noticed that there have been over 100 times rise in search trends since July 2017. That signifies the momentum for AI led Operations.

As my curiosity on AIOps increased, I looked at market opportunity for AIOps. From MARKETSandMARKETS analyst data, the global AIOps platform market size is expected to grow from USD 2.55 billion in 2018 to USD 11.02 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 34.0% during the forecast period (2018–2023).

In this blog post, I am attempting to capture some highlights gathered from my learning curve over a past year or so. Refer to the schematic above that provides a high-level “AIOps Framework”. The following are key elements of the framework.

“AIOps” Verbatim Defined: Simply stating AIOps stands for Artificial Intelligence for IT Operations. Extending AIOps to business operations is inevitable in near future. Adding further, AIOps automates various aspects of IT and utilizes the power of artificial intelligence to create self-learning programs that help revolutionize IT services

AIOps Context: There is a significant opportunity to leverage AI for analyzing enormous data being created by IT and business operations tools, to increase the efficiency of operations, speed up services delivery and ultimately create superior user experiences. The resulting power of AIOps is enabling the progress from siloed to integrated operations backed by intelligent insights.

Signals: In today’s business and IT operations environment, the user is adapting multiple channels of communication for ease and enriched experience. So the backend operations teams as well should expand their ability to sense, analyze and respond to such structured, unstructured and semi-structured data signals. With this in mind, the AIOps platforms are being developed with built-in capabilities to receive and response signals that can encompass any events, alerts, service requests, IoT sensor data, Email, Video, Text, Voice support, UX, Social channels and many other forms.

Interfaces: The way enterprise operations backbone interfacing with signals and external queries also is shaping up in this transformation.

  • The first layer is Machine-First: Giving software/machine/bot the first act on sensing and responding to operations requisitions not only improves the automation of repetitive tasks but also augments cognitive intelligence in complementing human intelligence.
  • Human-Next Touchpoints: Human-next layers take up the operations requisitions that are not solvable by machines. These are the requests which involve human interventions.
  • Ensuring Reliability of Services: Alongside the above two layers, taking an engineering approach to services reliability for constant monitoring, triaging and incorporating insights from advanced analytics of enterprise data brings the culture of continuous improvements and stability to operations.

AIOps Platform: The entire AIOps ecosystem is based on the underlying Platform and Enterprise Core that ties all the components together. As Gartner defined, “Artificial Intelligence for IT operations (AIOps) platforms are software systems that combine big data and AI or machine learning  functionality to enhance and partially replace a broad range of IT operations processes and tasks, including availability and performance monitoring, event correlation and analysis, IT service management, and automation.”

As businesses are increasingly software-driven, operations downtime is becoming more costly and slow is the new down. This is leading businesses to proactively manage and improve experiences of services, applications, cloud, and networks. Along with this business 4.0 is digitally shifting the businesses offering the technologies that increase the volume, velocity, and variety of data. As traditional systems and manual efforts are facing challenges in correlating and analyzing the data or alerts, AIOps is stepping up to augment the enterprise intelligence in operations.

To conclude, the future is bright for IT and business operations with AIOps. The increasing shift of organizations core business toward the cloud, raising investments in the AIOps technology ecosystems, exponentially growing data volumes and increasing end-to-end business application assurance and uptime are driving the growth of AIOps market demand.

 

 

Marching Ahead to 2019

2019

Here is my take on the next 3 big trends to watch out as we march ahead into 2019.

1) Automation crossing over inflection point: Point I am making is progressing beyond task automation. For example, when we call a Bank, it really doesn’t matter whether a bot or a human reply from creating the net new value and better customer experience point of view. In fact, speaking to human can avoid following initial mundane activities alongside a BOT. Having a BOT may save cost and make operations efficient for a Bank, but what’s in it for the customer? Secondly, Automation has to elevate to be more intelligent and process-centric than taskmasters. That is what the inflection point for automation progressing to “creating value for consumers”.

2) “Shared to Distributed” economy/business models as a path forward: Over the past years Uber, Airbnb, Google and increasingly proliferated shared economy models are been successful use cases that rely on the contributions of users/external resources as a means to generate value within their own platforms. Unlike the Automation, here consumers get direct value from the shared economy models and better experience. But the shared economy model is still centralized and hence prevails risks limiting full potential. The shift is going to be towards a new model of decentralized organizations that are aggregating the resources of multiple people to provide a service to a very active group of consumers. This shift marks the advent of a new generation of “dematerialized” organizations that do not require physical offices, assets, or even employees.

3) The confluence of Digital technologies fuelling the next-level adaption/growth: We make a progress beyond adapting one or two digital forces towards the convergence of the ecosystem of digital technologies that drives the collective benefit of businesses, consumers and all stakeholders.

Blockchain Reference Solution Architecture (BRSA)

BRSA

I have been publishing Blockchain perspectives over the past couple of years and rarely come across the real details on what it takes to implement a Blockchain solution. Nailing down the solution architecture is “where the rubber hits the road” in preparing an enterprise to gear up for blockchain implementation. Initially thought of offering a detailed technical architecture diagram which can easily lead to misinterpretations. Hence getting focused on describing a “Blockchain Reference Solution Architecture (BRSA)” in this blog post.

I would envision the following 6 foundation layers of BRSA and narrate it with a CPG use case for implementing Blockchain for “Diamond” product class.

1) User Interface: Any solution starts with a user-friendly UX. In our use case, let us say consumers walk into a jewelry store with an intent to buy a diamond for his fiancee. The consumer is”digital-aware” and carrying a mobile and an app on it that is designed to the diamond supply chain to gain the confidence of purchase. Henceforth one of the key features of the mobile app is a read-only application in the first place and will therefore not require any log-in. The consumer then is able to scan a barcode, RFID sensor, QR-code or for that matter invoke computer vision and access the information related to a particular product (in this case diamond) that may involve multiple the steps in the supply chain and tracking the source etc.

2) Data/File Storage: The next solution component is designing file storage. Typically the information stored in blockchain includes contract verification, hashes, and identification of who has added this information. In our example of diamond products, if a miner at source takes a photo of diamond drawing/marking at the source and add it to the blockchain. How this data could be stored on the blockchain, is a critical solution element and the following are 3 possibilities for storing that photo,

  • Upload to the blockchain and make it transparent to all the nodes in the blockchain, but this requires the blockchain to store a significant amount of information.
  • Upload photo to a separate database but accessed by the blockchain. Access can be restricted or open for everyone who interacts with the blockchain.
  • Store in a database that is owned or controlled by an administrator to upload the photo, but it is not possible to access through the blockchain. Only the creator of the file/photo decides who they want to share their data with.

Hence deciding a right data storage mechanism is a critical component of the BRSA component.

3) Blockchain Platform: Choosing the blockchain platform is the next step in the solution design. As mentioned above, the blockchain platform verifies files, contracts, and stores transactions. Platform options include public, private or a hybrid. Platform selection for diamond use case is primarily driven by transaction costs to a least and transaction capacity near real time. The public blockchains platforms include Bitcoin and Ethereum etc. If not the transaction costs, Bitcoin is not considered in this case due to a very low transaction rate. Even if the transaction cost in Ethereum is significantly lower, transaction capacity is still limited. Both transaction costs and transaction capacity be a restriction in a price/service sensitive CPG products. One way to handle this is to go for second layer solutions as they get matured. On the other hand, private blockchain can be most attractive, but only trusted partners are allowed to validate transactions and blocks. The validated and recorded content of the blockchain may or may not be published to the public. The platform selection is really a trade-off

4) Application / Smart Contract: The application or smart contract is another key element of the solution. The most well-known blockchain solution for applications is Ethereum, where the contracts are called as distributed applications (dApps). The applications are run on the blockchain by all nodes, they are distributed. In some other cases the contracts are not run on the blockchain – they are confirmed in the blockchain, and their verifications are embedded in the blockchain but the entire application is not run by the blockchain network. For generating a diamond smart contract, the diamond store must upload the GIA certificate for each stone to be listed. Tracking can be enabled for a single diamond of high value or for a basket of diamonds. The blockchain solution can be designed for distributors listing their diamonds, or for peer-to-peer sales. The transactions here can be virtual but in our case, it is physical in store, and a secure completion of the purchase could trigger the delisting of the smart contract. Many technology providers want their applications to be possible to run on different blockchains and this is much easier if the application is not run by the blockchain. This could potentially be an option for our use case.

5) The ID and authorization: The key CPG actors who are going to authorize the different steps in the process have to be identified and some sort of ID solution is required to be built into the overall architecture. In our use case, either diamond distributor can handle the ID-creation and directory within the blockchain system, or rather create the ID-system and let the private administrators of the system be responsible for the ID-solution. The system then creates the private and public keys of the participants and may use extra security such as IP-addresses to control for the authority of the actors. A simple barcode-based unique ID can incorporate complex data science models to create a unique signature for either a rough or a polished diamonds.

6) Asset Registry: In diamond CPG industry there exists many organizations and authorities that can have an interest in labeling the products with their certificates. Hence in our use case, there should exist a public authority to assign a code to keep track of the diamond and their production. After creating the signature as described in the previous step, diamond can forever be verified against it to prevent fraud of any kind. The amount produced or sold by the diamond maker etc. will then get a code in the blockchain and lives on immutable.

All the above components collectively build a robust solution architecture as depicted in the diagram above for implementing the Blockchain solution for Diamond CPG supply chains.