ZETECH UNIVERSITY

UNIT NAME: BLOCK CHAIN TECHNOLOGY

UNIT CODE: BCE 413

LESSON 7: Block chain Use Cases and Applications by Industry

5 Real-World Use Cases of Block Chain Technology

1.Healthcare and Life Sciences

2.Supply Chain Management

3.Digital Voting

4.Insurance

5. Copyright and Royalty Protection

Use case: supply chain management

 Removing complexity from global supply chains

 How will block chain impact the industries of finance, identity, supply chain
management, and more?
 Learn how major sectors are presently deploying Ethereum block chain solutions
to solve recurrent industry problems.

What makes a good block chain use case?

Block chain technology's core characteristics include decentralization, transparency,

immutability, and automation. These elements can be applied to various industries,
creating a multitude of use cases.

What are the Benefits of Blockchain in Supply Chain Management?

Block chain technology coupled with the ability to program business logic with the use
of smart contracts enables the following:

 Supply chains are all about moving goods and materials to where they need to
be, and block chain improves companies’ ability to trace, record, and certify the
relevant information associated with that process.

Several key benefits

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1. More Accurate Tracking:

With block chain, companies can digitize physical assets and create a reliable,
decentralized record of transactions, which makes it easier to track assets from
manufacturing to delivery and provides better visibility from end to end.

2. Better Transparency:

Businesses that produce high-value goods such as pharmaceuticals can reduce the
possibility of fraud in their supply chains. By better understanding how vital
ingredients move from one subcontractor to the next, they can reduce losses from
counterfeit and grey markets and grow trust by consumers that goods are authentic.

3. Contract Manufacturing:

All parties in a supply chain have access to the same information, reducing
communications problems and data transfer errors, and lowering the amount of time
spent on validating the data.

4. Administration:

By enabling a trustworthy audit trail within the supply chain, block chain streamlines
various administrative processes such as compliance and credit checks, thanks to a
distributed ledger of all data and activity.

How Block Chain Helps the Food Industry

HOW TO USE A BLOCKCHAIN FOR WINE INDUSTRY?

 which is one of the most counterfeited in the food world (nearly 50 percent of all
wine that is sold in China is either counterfeit or deceptively labeled)

o can also benefit. A decentralized, block chain-based system helps track

wine from vineyard to the store, helping to ensure safety and authenticity
of wines in the consumer market.

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 how this and other key problems of the industry can be solved using the block
chain.
We will describe how to implement a decentralized distribution register in the
wine industry's sales chain and what it will give to producers, consumers and
society as a whole.

How to implement block chain in the sales chain of wine products

 Wine production can be divided into eight elements, depending on who is the
main subject at one time or another in the product life cycle.
 The list of these subjects and a simplified model of their interaction are presented
in the following figure:

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who is responsible for this and how the commodity, documentary and
financial transactions will take place.

#1 Winegrower

This is the initial link in the sales chain, since wine production begins with vineyards.
People who are professionally engaged in the cultivation and harvest of grapes are
called winegrowers. They take care of the plants and control the growth parameters
(humidity, acidity and soil compaction, temperature, etc.), and are also responsible for
protection from weeds and insects.

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Integration of the block chain at this stage means the following actions:
1. A network of sensors is being created that automatically collects data on weather,
soil conditions and other parameters that affect the quality of the grapes in a particular
season (production cycle).
 The winegrower enters the system with data about himself and the land plot
(location, height, type of soil), type and number of vines, their origin, irrigation and
processing.
o Here it is important to consider everything: from what fertilizers were used to
how and when the vine was cut.
2. When harvesting, data about the date of harvest, how the grapes are delivered to
the winery, etc. are entered into the system.
3. After harvesting and squeezing the juice, the information about the date of this
procedure, the equipment used, etc. is entered into the system.

This information is important because it affects the taste of the drink, environmental
friendliness and ultimately the cost of wine in stores. Having collected a large array of
such information, you can also use data science to understand how to grow grapes,
from which the most delicious wine is obtained.

#2 Winemakers

These are people and companies involved in the production of wine. To ensure
traceability, such entities must add to the blockchain:

1. Data on suppliers, grape variety; date of receipt of raw materials; description

of the state and quality of the obtained raw materials; data on the conditions of
its delivery.
2. Records of internal procedures, such as decantation, fermentation and
preservation, as well as aeration in the production of rose wine.
3. Information on temperature, chemical content and additives.
4. Data on storage conditions and production spill.
5. Information about yeast and its use.

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#3 Wholesale Distributor

These are people or structures responsible for obtaining wine from winemakers, mixing
them and sending the finished product to a transit cellar or packer. Wholesale
distributors contribute to block chain:

1. Date of obtaining, data on the conditions of transportation and storage.

2. Information on processing, sampling, analysis of bulk wine and the date of
dispatch.
3. If the blending process is performed, this is also recorded in the block chain.

#4 Transit cellar

They are responsible for receiving, storing, shipping, processing, sampling and
analyzing bulk wine. In fact, the role of the transit cellar is similar to the role of
wholesale distributors, the difference in minor details of the logistics chain.
Consequently, the data to be entered into the block chain at this stage is identical to that
described in the previous section.

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#5 Filler / packer

Get the wine from the wholesale distributor or transit cellar and pour it into barrels,
kegs, bottles or bags. At this stage are carried out the identification and labeling of the
goods. For the correct use of the block chain, it is important to ensure the consistency of
such labeling between different market participants. This refers to two types of data:

1. Directly about the product and production: reception, storage, processing,

sampling, analysis, filling, packaging and shipping of finished products.
2. Information about counterfeit protection: paper types, laser embossing, hot
and cold foil embossing, heat-sensitive paints, holograms, hot stamping and
other.
Data about protection means is important, since consumers will also have access to the
block chain (using the application and a QR code). People should be able to match the
bottle of wine in the store with what they produce in factories. Even better, you can
check out individual remedies here and now. For example, verify the authenticity of a
hologram using a scanner in the phone or find out if there is a specific store, region or
country in the supply chain.

Such codes(QR) will be part of the labeling of finished products, and they can be used
to verify the authenticity of the goods.

QR code and checked on the Origin Trail platform, can be used to fully authenticate a
specific bottle.

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Data Verification with Origin Trail

The pilot wine bottle data can be verified on the following route of our Alpha network

node:
http://18.196.25.215:8888/api/trail/batches?QR=QR_CODE&Key=LETTER

with parameters: QR — Value of QR code found on a bottle and Key -Letter shown on a

photochromic sensor on a bottle

For example:
http://18.196.25.215:8888/api/trail/batches?QR=ME00007007001G000009KR000&Key=C

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The node API will return a JSON file with product and trail data for the requested bottle.

Also, the JSON contains a SHA3 hash of the graph traversal for the bottle that can be

verified on the block chain. For example, for a product with the QR

code ME00007007001G000009KR000 and key C we can find from the returned JSON that

it’s batch (bottle) UID is

#6 Distributor of finished products

Wine-filled packaging is sent to the retailer or distributor of finished products. The

duties of the latter include the storage and shipment of finished packaged products to
points of sale, as well as inventory management. To do this, the item is usually
repackaged and remarked in large batches.
What needs to be reflected in the block chain:

1. Reception date, storage conditions and date of shipment.

2. Repackaging and remarking information.
3. Information about the destination of the goods.

#7 Wholesalers

Receive boxes and pallets with wine and send them to retail stores. At this stage,
the block chain receives information on the obtaining, storage and delivery of goods,
most of which is collected automatically using sensors and RIFT tags. These devices
monitor temperature, movement speed, shaking, and other data that may affect product
quality.

Data about the conditions of storage and transportation is important because, according
to research, during transportation, 20% of wine deteriorates due to non-compliance
with temperature regimes or excessive shaking - the longer the logistics, the greater
these figures. And neither the ordinary buyer nor the expert will be able to understand
what wine is spoiled until the bottle is opened.

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#8 Retail

The retailer receives finished products in the form of bottles, cans, barrels and
cardboard boxes from the distributor of finished products or the wholesaler and sells
them to final consumers. Retail is responsible for displaying in the network information
about goods received, their storage and sale. The sale must be logged so that the same
identification tag cannot be reused.

What problems will the block chain solve?

 Adulteration of wine is the biggest problem of the industry. Large-scale wine

producers spend millions of dollars annually on fighting counterfeit products,
introducing protection means more efficiently than those used by the Federal
Reserve to protect the American dollar.
 For example, in April 2018, the world-famous producer of Bordeaux wines Grands Vins
de Gironde was fined $ 500,000 for selling cheap table varieties under the guise of more
expensive ones. This is a scandal, but it fades before the Rudy Kurniawan fraud, which
managed to sell tens of thousands of bottles of counterfeit wine worth worth over $ 500
million.

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Quality control.

The two main factors that influence the quality of the wine are temperature and
humidity. The ideal storage temperature is 10–12° C for strong wines and 14–16 ° C for
dessert wines, and it should not fluctuate more than 3–5 degrees a day. Humidity is also
important, since its optimal value (60–70%) does not allow the crust to dry out and
prevents the growth of mold

Conversion of fahrenheit into celsius

(40°F − 32) × 5/9 = 4.444°C

(50°F − 32) × 5/9 = 10°C

(60°F − 32) × 5/9 = 15.556°C

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Standard marking and description of wine scanned QR code

Wine Traceability and Counterfeiting Reduction: Blockchain-

based Application for a Wine Supply Chain
https://www.youtube.com/watch?v=YxvlMdZs9vY

Blockchain for the Wine Industry | Blockchain Tips | A/Professor

Vidy Potdar | Australia video link
https://www.youtube.com/watch?v=rtBIxedTwik

EY Wine Blockchain
https://www.youtube.com/watch?v=d3QGvjPYFAw

Italian winemakers first to use blockchain-powered solution

https://www.dnv.com/Videos/italian-winemakers-first-to-use-blockchain-powered-solution-140676

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