Blockchains & the Sharing EconomyDr. Praphul Chandra
www.koinearth.com
Singapore, Bangalore
The role of technology in reducing transaction costs…
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Internet as an enabling tech.
• Cost of Information travel • internet, www, financial markets…
• Cost of Communication• voip, chats, tweets, instagram,…
• Cost of Transaction• e-commerce, mobile payments,…
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http://www.opte.org/maps/
… and yet the $ value of transaction costs remains high
Lack of Transparency & Auditability
Cumbersome process co-ordination
Costly Contract enforcement
Misaligned Incentives
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$200 Billion
20% $10$50
Million
Counterfeit pharmaceutical
products sold annually
Of overall cost in logistics is processing and
administration costs
Spent to process & pay each invoice, on
average
Fraud in Public Service Delivery in 1 city in
India
Blockchain as an enabling tech.
• Information• DLT: Shared, Immutable, Auditable
• Help build Trust in the information
• Incentives• Tokenization: Mechanism Design
• Incentive alignment in B2B, G2C, P2P.
• Institutions • Smart Contracts (Auto-Executing)
• Reduce contract enforcement costs in B2B, G2C
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https://blockchainhub.net/blockchain-intro/
Koinearth’s Nash platform enables economic networks on Blockchain
Org. Groups
• Create & Manage Inter-Organization groups
• Fine grained access control (participants, orgs, actions)
Commercial Networks
• Workflows as smart contracts
• Performance linked payment
Market Economics
• Incentive Mechanisms as Smart Contracts
• Algorithm token creation & dynamic pricing
Private & Confidential
FrictionlessGroup
Creation
Algorithm,Machinesmembers
SharedData,
Processes, Analytics
SmartContracts, Workflows
Incentives, Mechanisms
Token Economics
Nash has applications in multiple contexts…
B2B
• Orgs: Business (SMEs, Enterprises, Logistics, Banks)
• Commerce: Collaborative Supply Chains
• Economics: Loyalty Tokens, Reputation
G2C
• Orgs: Local Governments, Service Providers, Citizens
• Commerce: Public Service Delivery
• Economics: Social audit with accountability tokens
P2P
• Orgs: EV prosumers (Residential Comm, EV owners, Banks)
• Commerce: Charge-on-Demand,
• Economics: Sharing economy for EV Charging
Private & Confidential
Asset SharingTokenized Assets for Decentralized Sharing
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EV Charging Stations: A scarce, yet underutilized resource
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85 % Average idle time of
charging stations
idle time
A sharing economy for EV charging
• Create a 2-sided market
• Opportunity for charging point owners to utilize (monetize) their asset.
• Incentivize sharing
• Dis-incentivize wastage
• Sharing improves asset utilization
• Many charging points may have low utilization
• Long tail of charging point owners; Most owned privately
• Sharing expands accessible footprint of charging points
• Redefine Penetration & Coverage
• Direct Demand to Supply (time, location)
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A sharing economy benefits the whole ecosystem
EV Owners, Fleet OperatorsLarger footprint of EV chargers | LCO for EVPre-buy (@ disc.) | Priority access
Charging Station OwnersExpand coverage footprintBetter Asset Utilization | Higher RoI
EV ManufacturersLower barrier to EV adoption | Higher Sales
VAS : First 250 hrs. charging free
Charging Station ManufacturersLCO for their product | Larger Market
Sponsor (Bank) Additional Revenue Stream
Risk free Asset Financing
Government Significantly less capital investment (Incentivize, Regulate)Faster, Market-guided EV charging infrastructure creation
A Blockchain based economy for EV Charging Stations
• A Trusted Ledger records all charging transactions
• Shared, Secured, Immutable, Auditable
• Near-real-time transparency of demand & supply (geo-tagged)
• Adding partners, charging point owners seamless
• A charging token
• Decouples kwh from value measure
• Enables dynamic pricing
• Value of 1kwh function of demand-supply (@location, @time)
• Price Signal for demand Incentive for others to install EV chargers
• Smart Contracts encode the economic terms of the transaction
• Dynamic algorithmic pricing, Cancellation, No-show etc.
• Self-executing contracts ensure terms are guaranteed to be enforced
• Ideally suited for machine-to-machine economy
Secure Trusted Registriesenable one version of Truth
Tokens as Proof-of-Xenable trusted credits
Auto-Executing Smart Contractsenable trusted transactions
Process SharingTokens & Smart Contracts for incentive alignment
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Blockchains Applied in B2B | A solution by KoineArth
• Real world supply chains are actually complex networks• Suppliers, Logistics, Contract Manufacturers, Banks• Multiple tiers, Organised by regions, business units
• Each entity maintains its own ERP• Siloed Data• Siloed Processes
• Procurement contracts used to coordinate processes • Significant manual work : Inefficient• Prone to errors : Costly
• A shared ledger for securely sharing information• About status of work order, inventory, invoice etc.• Immutable, Auditable, Securely shared across entities
• A shared contract & workflow engine for process coordination• Procurement contracts, SLAs, payment terms • An institutional framework for business interactions
• Shared incentive mechanisms to align performance indicators• To incentivize performance and enforce penalties
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KoineArth’s Solution … deployed in production
• Primary Mfr.+ Coordinate Work Order progress across multi-tier supply network
+ Gain inventory visibility across multi-tier supply network
+ Optimize order allocation based on available inventory & capacity
+ Automate performance incentives enforcement (SLA) transparently
+ Higher Operational Efficiency (Inventory, Cash flow)
• Contract Mfr. / Suppliers+ Reduce management overhead by accessing supplier orders
+ Control access to your order-related, inventory data
+ Automate invoice generation on order acceptance
+ Automate bonus payments per transparent SLAs
• Banks*
• Transparent access to trusted supply chain process data
• Auditable order& invoice status
• Reduced risk for bill-discounting, invoice-financing, financial instr.
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… …Primary Mfr.
Contract Mfr.
Supplier-1
Supplier-2
Bank / NBFC
KoineArth’sBlockchain
Solution
In first 3 months of deployment :• Reduction of inventory levels by 1%. Not just
in client org, but overall ecosystem• Improved cash flow by 1%
1. Tokenized Social Audit & Citizen Complaints
• Complaints empowered to audit SP performance
• Incentivize citizen participation & SP performance
• Transparency in public service delivery with auditable information
2. Procurement Orders as a Smart Contract
• Digitally encoded on the Blockchain
• Creation, assignment, fulfillment recorded
• SLA terms automatically enforced | Institutional framework
3. Performance linked payment incentivizes performance
• Automatically reconciled with complaint data
• Automatically reconciled with GPS data
• Payment due calculated w.r.t. SLA
• Manual override possible + auditable
• Digital Invoice
Blockchains Applied in G2C | A solution by KoineArth
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ULBCity, Citizens Service Providers