BLOCKCHAIN

GuaranteedIntegrity

PerfectlyAuditable

UnparalleledDigital Security

Non-Localized

THE SOLUTION FORTRANSPARENCY IN PRODUCTSUPPLY CHAINS

Blockchain technology will enabletransparent exchange to empower conscious

consumers and authentic brands to

change the way the globaleconomy works

Companies can and should both succeed as a business and operate in service to

local and global communities.

We live in theworld we buyintoThe creation, exchange, and use of material things,has many potential negative consequences. Opaquesupply chains are devastating environments andcompromising the wellbeing of people, animals andcommunities.

“WITHOUT UNDERSTANDING THEIMPACTS OF GOODS AND SERVICES, WEBUY INTO SYSTEMS THAT DEPLETENATURAL RESOURCES, WORSENENVIRONMENTAL AND SOCIALPROBLEMS AND ENDANGER HUMANSAND ECOSYSTEMS. SUPPLY CHAINS ARECONVENTIONALLY HELD SECRET,LIMITING THE STAKEHOLDERS WHO CANPREVENT ENVIRONMENTAL, SOCIALAND HEALTH AND SAFETY PROBLEMS.”

Leonardo Bonanni, Founder of Sourcemap

Now, consciousconsumers aredemanding better. There is a growing rallying call by customers andgovernments demanding more transparency frombrands, manufacturers, and producers throughoutthe supply chain.

"IN THE UK, 30% OFCONSUMERS ARECONCERNED ABOUT ISSUESREGARDING THE ORIGIN OFPRODUCTS BUT STRUGGLETO ACT ON THIS THROUGHTHEIR PURCHASINGDECISIONS"

Sustainable consumption: green consumer behaviour when purchasing products, William Young, Kumju Hwang SeonaidhMcDonald and Caroline J. Oates, 10 MAR 2009

The choices we make in themarketplace determine which

business practices thrive.

I n s h o r t , p e o p l e a r e r e a l i s i n g t h a t :

Not allproducts arecreated equalA more conscious approach to shopping can helpthe most environmentally and socially positivebrands win.

i.e.

Sustainability standards and certification have been an importanttool to enable choice differentiation and conscientious consumption

yet in the end, the outcome of certification is often just an imagefile or printed label on the packaging whose actual meaning is

difficult to know and hard to verify.

“NOW, IN THEHYPER-CONNECTEDAND EVER EVOLVINGWORLD,TRANSPARENCY ISTHE NEW POWER.”Benjamin Herzberg, Program Lead, Private Sector Engagement for Good Governance at the World Bank Institute

When a factory collapses, we shouldknow exactly what was made there.Was your shirt?

You should know.

Despite various efforts, full “chains of custody” thattell the stories of products remain largelyrudimentary and difficult to verify.

https://hbr.org/2013/05/preventing­another­bangladesh

NO SINGLE ORGANIZATION CANBE TRUSTED TO BROKER ALLDATA ABOUT EVERY PRODUCT’SSUPPLY CHAIN.

The idea of using a centralized system with a governing thirdparty was, until recently, the only conceivable way to achieve this.

The truth is that

Today, however, a new technology calledTHE BLOCKCHAIN presents a whole new

approach...

“The consequences of this breakthrough are hard to overstate.”­ Marc Andreessen, Inventor of the internet browser

THE BLOCKCHAIN

GuaranteedIntegrity

PerfectlyAuditable

UnparalleledDigital Security

b y d e s i g n :

Non-Localized

There is no single machine that governs the businesslogic or the data on which a blockchain operates.

Today your data is stored in a silo. Withblockchains data will be stored (publically or pseudoanonymously) in a shared database.

Non-Localized

Unless a user can cryptographically prove theownership of an account, there is no way for anybodyelse to change it.

The security risk of the weakest link — in the form ofoperators and IT administrators — is drasticallyreduced.

UnparalleledDigital Security

Each operation or interaction is perfectly recordedand archived. An uninterrupted "chain of custody" Auditing is as simple as pressing “replay"

PerfectlyAuditable

The integrity of the data (e.g., the current level ofstock or the origin of a particular certificate) isguaranteed.

The blockchain gives us an unprecedented level ofcertainty over the fidelity of the information. We canbe sure that all transfers of ownership were explicitlyauthorized Not by users or authority, but by theunderlying technology.

GuaranteedIntegrity

The use of blockchain technology provides anumber of truly unprecedented breakthroughs for

certain public-interest information, such as thesupply chains of consumer products.

Learn more... www.provenance.org/whitepaper

P R O V E N A N C E

IN PRACTICEThe proposed solution consists of a number of modular programs.

Each program is deployed on the blockchain and controlled independently.But because they work within the same blockchain system they are able to

interact without friction.

Registration Standards Production Manufacturing Tagging User-Facing

Modular Programs:

Registration

All certifiers, auditors, producers, and manufacturers requestregistration - linking their real-world identity with their blockchain-based

digital identity, thus allowing them to interact with the blockchain

All other programs derive their “trustability” through their own reputation (which may be importedthrough their real-world name). This program will initially be deployed by the registrar.

Programs

Registration

These programs represent the implementation of schemas for properrecognition of a standard (e.g. no animal testing, biodynamic, fair labor)

Through these programs, standards organizations provide for thecreation of compliant production or manufacturing programs (see

below), allowing goods and materials to be added to or processed on theblockchain.

Marques and certifications that are printed on today’s consumer products and shown at the pointof sale. On the blockchain certifications can be linked to their real meaning and information

verifying their status.

StandardsPrograms

Registration

Deployed by the certifiers following successful certification, theseprograms are used by producers to prove the creation of materials or

primary goods.

Since they are principally responsible for the creation of goods, producerprograms are the root for the traceability of finished goods

From cotton growers to gold miners the blockchain presents a method for securely documentingand transferring key information about a raw material.

ProductionPrograms

Registration

These programs implement the transformation of input goods fromproduction into output goods. Input goods must be “used” for any output

to be created, just as in the physical world.

Because of its auditability, the blockchain provides the same cast-ironguarantee as in the physical world; namely, that creation of an output

good can happen if and only if the required input is used.

Information from the producer is securely cascaded to the manufacturer on receipt.

ManufacturingPrograms

Registration

Establishing secure links between the digital and the physical world.

Linking: Physical goods and materials must be identified and linked withtheir digital representation on the blockchain. This could be done using

serial numbers, bar codes, digital tags like RFID and NFC, genetic tags etc.

Crucial in uniquely identifying a physical good with its digital counterpart.

TaggingPrograms

Registration

By inspecting the blockchain, smartphone applications can aggregate anddisplay information to customers in a real-time manner

Due to the strong integrity properties of the blockchain, this information canbe genuinely trusted. A thoughtful user interface that sheds light on the

digital journey of a product can empower better purchases by giving usersa true choice that they can exercise.

The final owner of the product has access to secure information about the product’s supply chain,without having access to identification details.

User-facingPrograms

We believe blockchain technology can helpbusinesses communicate stories, prove facts andelegantly open a window to their inner workings.

Learn more... www.provenance.org/whitepaper

P R O V E N A N C E

Jamie Sandhu

jamiesandhu@me.com@junkless_jamie

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