What is Blockchain?

IBM Food Trust™

Overview

Michael Mc Mahon

Digital Transformation

Leader, IBM

Kati Arndt

Blockchain Lead,

Distribution, IBM

2

What is Blockchain?

3

Requirements for Blockchain

Participants

decide which

assets to share

SHARED LEDGER

Participants know

who they are

dealing with

IDENTITY

Participants give

provable

endorsement

ENDORSEMENT

Information

shared is

need-to-know

CONFIDENTIALITY

4

The challenge – visibility across the supply chain

Wholesaler

records

CPG / Supplier

recordsDistributor

records

Consumer

Demand Drivers

Retailer

records

Producer’s

records

5

… with consensus, provenance, immutability and finality

Blockchain provides the shared, replicated, permissioned

ledger …

Wholesaler

records

CPG / Supplier

recordsDistributor

records

Consumer

Demand Drivers

Retailer

records

Producer’s

records

Blockchain

6

Is Blockchain the same as Bitcoin?

– The first blockchain application

– Defines an unregulated shadow-currency

– Resource intensive

≠Blockchain

is an example of an

unpermissioned, public ledger:

• Blockchains for business are

generally permissioned and

private, and prioritize:

– Identity over anonymity

– Selective endorsement

over proof of work

– Assets over

cryptocurrency

7

Trade Finance Pre and Post Trade Complex Risk Coverage Commercial Real Estate

Identity/ Know your customer (KYC) Unlisted Securities / Private Equity Funds Loyalty Program Mgt. Distributed Energy & Grid Mgt.

Medical Health Data Exchange Anti-Fraud & Port Mgt. Carbon Credit Mgt. Asset Tracking

Supply Chain & Logistics Food Safety Audit Digital Rights & Copyright Mgt.

IBM is making Blockchain real for business with diverse

engagements delivered across industries

IBM Food Trust™

9

Today the food industry is focusing efforts around

addressing several key challenges

1 out of 10 people get sick each year, and

420,000 die from foodborne

illness

Only 1 in 4 consumers trust today’s food

system. 94% say they’d be more

loyal to brands that offers

transparency

80%of CPGs say their business is

partially or entirely paper-based,

resulting in inefficiencies and

unnecessary costs

1 / 3of global fresh fruits and

vegetables are thrown away

because their quality has dropped

to unacceptable

Food Safety Supply Chain Optimization Food Waste Consumer Demand

Each of these issues can be addressed with end-to-end supply chain visibility…

…However, creating end-to-end supply chain visibility requires enabling companies to share data on their

own terms, in a trusted and protected manner.

10

The IBM Food Trust™ solution is a set of modules built for

the industry

Future IBM ModulesFuture 3rd Party

Modules / Capabilities

▪ Manage Recalls

▪ Recall Post-Analysis

▪ Trace-forward & back

▪ Recall Simulator

Trace & Recall

▪ Version Control

▪ Authenticity

▪ Automated lifecycle

management

▪ Real-time Sharing

Certificate Management

IBM Blockchain Platform

Hyperledger Fabric

▪ Permissioned Data Access & Entry

▪ IBM Blockchain Provenance Engine

▪ Secure Document Storage

▪ API Integration

Data Entry & Access

IBM Food Trust

Solution Core

11

IBM Food Trust™ is a modular solution

that will continue to grow in functionalityData Entry & Access Certifications

Freshness* Consumer*

Trace

. . .

Coming soon

IBM Module

3rd Party Module

• IBM Food Trust™ provides a blockchain platform for the food industry as well as a variety of modules targeting real business needs for all players in the ecosystem

• We are working with 3rd party providers to further increase value by providing them the ability to build and distribute modules

12

Where are we on the IBM Food Trust™ journey?

PorkTraceability /

safety

MangoTraceability /

global trade

Onboarding agriculture, ingredient

suppliers, retailers, CPGs, QSRs

and others to provide bi-directional

flow of information

2017 2018

Additional partners joined the IBM

Food Trust™ network, with growing

food data transactionsconducts traceability pilots

2016

13

14

IBM Food Trust™ provides value to the entire food system

Growers

▪Prove farm is not

a source of

outbreak

▪Ease of

connectivity to the

supply chain

Consumers

▪ Learn about recalls

and increased

transparency

▪Reduce risk of

being victimized by

food fraud

Regulators

▪ Identify

contamination

quickly

▪Reduce

unnecessary testing

Food Service

▪Assure

customers food

supplied Is safe

▪Reduce wasted

food

Food Logistics

▪Enhance ability to

meet compliance

standards

▪Reduce manual

processes

Food Retailers

▪ Assure

customers food

supplied is safe

▪ Conduct

targeted recalls

quickly

Certification Bodies

▪Reduce

fraudulent

certificates

▪ Increase

renewal

speed

Food Manufacturers/CPGs

▪ Instill trust between

retails, suppliers &

customers

▪Automate & reduce

manual certificate

management

Wholesalers/ Distributors

▪ Conduct

targeted recalls

▪ Enable internal

data sharing

15

How organizations

can get started

with IBM Food

Trust™2. Onboard to

SaaS solution

and become

a network

participant

1. Signup with

IBM Food

Trust™

3. Add modules

to gain

access to

their

capabilities

16

Thank You

ibm.com/food

@IBMBlockchain

IBM Blockchain

IBM Blockchain

Kati Arndtkatiarn2@uk.ibm.com

Michael Mc MahonMMcmahon@ie.ibm.com