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

Q?praphulcs@koinearth.com

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