Smart Contract for Business Network. Animesh Ghosh Consulting Partner & CIO Advisory Wipro

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1 Smart Contract for Business Network Animesh Ghosh Consulting Partner & CIO Advisory Wipro

2 Blockchain for Business Current State Still confusion between Blockchain for Business Network and Cryptocurrencies (e.g. Bitcoin ). Market is still nascent in terms of technology maturity, business models, process evolution, integration and Interoperability. The hype around Blockchain is increasing in most industries and many are experimenting with Blockchain without fundamentally reviewing current business models. Blockchain values are biased toward intercompany use cases with many peers in an ecosystem. However, those require agreement and adoption by competitors before any savings can be realized. Forrester Predictions 2018: Be Ready To Face The Realities Behind The Blockchain Hype The Visionaries Will Persevere, While Those Hoping For Quick Fixes Will Give Up

3 Yes to Blockchain Does a Business needs Smart Contract? Step 1 Transparency Step 2 Contractual Relationships with Multiparty? Does this require a market approach? Traceability Immutability Can the Business Partners save cost by reducing frictions? Are Business Partners ready to accept new operating model? Yes to Smart Contract Smart Contract

4 Smart Contract Smart Contracts (Chain Code, Solidity etc.) Unlike Cryptocurrencies, Smart Contract for business network is always between known participants. Code-based (chain code, solidity etc.) contract which can execute autonomously stored in a distrusted database Contains information about ownership of s and business parties involved Based on business events the code will have privileges to update the distributed database where s are stored Each Business Partner to access the Smart Contract using Cryptographic signature Collaboration between lawyers and developers to write Smart Contract Smart Contract will have defined start and end event Considerations While a standard contract outlines the terms of a relationship (usually one enforceable by law), a smart contract enforces a relationship with cryptographic code. Smart Contracts are programs that execute exactly as they are set up to by their creators. Will you and your partner will be happy with a hard coded -relationship? Remember existing contracts are soft - both parties have time to absorb the initial shock and react. If you want to be soft with your partner,then your existing paper based contracts are there any way.

5 Producer Create Smart Contracts API Scenario Planning with Business Partners Smart Contract Smart Contract Business Logistics Legal Developers Superstore Insurer Regulators API

6 Smart Contracts in action Requirement : Improve Supply Chain Visibility to increase efficiency and lower cost End-to-end Supply Chain Insurance Blockchain Record 1. Supplier s certificate 2. Product unique id 3. Production date 4. Location 1. Shipment date 2. Product unique id 3. Order id 4. Custom check 1. Shipment date 2. Order id 3. Packaging specification 4. Temperature 1. Receipt date 2. Product unique id 3. Order id 4. Custom check 1. Transfer date 2. Order id 3. Temperature 1. Receive date 2. Order id 3. Invoice Id 4. Temperature Blockchain Smart Contracts 1. Match supplier, Order, Invoice, Shipment 2. Quality check against the specification 3. Update inventory levels 4. Pay supplier 1. Match supplier, Order, Invoice, Shipment 2. Quality check against the specification 1. Match supplier, Order, Invoice, Shipment 2. Quality check against the specification 3. Update inventory levels 4. Pay supplier

7 Take away Get involved with key participants like Industry Regulators, Industry Bodies and Market Makers. Invent new business models and make sure your internal stake holders buy-in to it before involving your partners. Scenario planning sessions with Business Partners is a must do before anything. Involve your legal team because unstoppable code could cause serious damage in terms of both financial and reputational. Smart Contract as Legal service enable your legal team to write Smart Contracts.

8 Thank You!