Thursday, January 10, 2019

Blockchain For Supply Chain - Reality or Just Another Fad!

Overview

Every few years we see enthusiasm generated by certain innvoations as that single solution will solve all of the problems we have in the world.  XML was supposed to solve all the problems with EDI data exchange.  Open Source was supposed to render Oracle, Microsoft, and IBM obsolete.  NoSQL databases were supposed to be so much better than legacy and cumbursome relational databases and that RDBMS was a dirty word.

All of these innovations added substantial value - but their hype was overblown and as a result several organizations started taking useless inititaives to force a concept into their organization.  For example they would XMLise their EDI by putting the whole EDI document as-is into an XML structure.  All core concepts like transactions that are 101 level concepts have to be defended.  We have to re-educate folks that NoSQL type of databases have their place but there is nothing legacy about Oracles, SQLServers, or DB2s of the world.  And that a database transaction is still a fundamental concept when creating real-world solutions.

Now we have another fad - blockchain.  And that all concepts like SAAS, RDBMS, etc. are legacy; and the earth spin needs to be managed using blockchain!

In this paper, I will focus on the hype as it relates to supply chain.  Specifically there is a lot of buzz with the premise that "Hey Walmart wants its suppliers to use blockchain - or that Walmart has adopted blockchain - so we must do something with it or else ...."

Basic Terminology

First lets understand at a high level what a blockchain is:
  • It is a chain of blocks where each block contains certain features that enhance its resiliance:
    • Element Description
      Data This is the main data in the block
      Previous Block Hash Value This is hash value of the previous block in the chain
      Current Block Hash Value This is hash value of the current block. This is computed by taking into account all contents, i.e. data and prvious block hash value
  • Being a chain makes it resilient, i.e. you must always process the chain from the beginning and while processing you validate the integrity of each block via its own hash value and previous block hash value - until you get to the data you are interested in.
  • The hash function is supposed to be "hard" for the computer, e.g. in case of bitcoin it is a requirement that the resulting value has a certain number of 0s in the beginning.  As there is no direct way of getting that many 0s - the algorithm needs to keep trying the hash function with slight modifcation of data until it gets the correct hash value.
  • If you attempted to corrupt a specific block you may render the "Current Block Hash Value" as incorrect.  If you fixed that as well then subsequent blocks will no longer be pointing to this block correctly.
  • Various well-known techniques are used to broadcast these contents to a network. 
  • With a large enough network and "hard" hashing technique corrupting the chain becomes close to impossible
If someone wants to understand these concepts in detail and work with examples of creating it - I suggest youtube channel Simply Explained - Savjee 

As you can see the concept of block chain itslef is quite simple.  A basic Data Structure student will tell you that she could implement this using any lower level concept like arrays, linked list etc.  For persistence it could be implented using files, NoSQL databases, or the legacy and obsolete RDBMS technologies.  It is a concept not a solution!

What makes it tick!

We need to understand some fundamental concepts about it to consider its value.
  • It is resilliant against hacking if and only if sufficiently large number of nodes keep a copy of the database.  
  • It is resilliant because by definition we never update the data.  Once data is addded it must be undone via an additional transaction.
  • It is resilliant because you always traverse the chain from beginning - so that you can detect any foul play. 
By definition one chain is working on homogenous data - for example bitcoin is a blockchain dealing with a special digitial currency and not with court records.

If we were to apply this concept generally we need to look at it abstractly and see what is the real value and that is not blockchain but that:
  • We have a distributed data store with sufficiently large number of nodes with the complete copy of the database.
  • And because of that - no central authority is needed.
  • And it is a type of data structure that does not allow "updates" and "deletes" - a new transaction must be defined to undo previous transaction.  This protocols limits chances of foul play.
With that understanding - is it really the new wheel?  We understand distributed databases quite well already.  DNS is a well-known example of itApplication clusters are deployed on millions of servers across the world using vaious types of distributed database techniques.   The logic about making it immutable is certainly very interesting and innovative and could prove to be a valuable technique - but the concept of implementing immutable data sets is not new.  Most legacy databases allow this level of control on their arcane data stores - and they have been doing it for decades.  But this approach of implementing it via hash values can certainly be quite valuable!


Then what is all this hype about "Walmart embracing blockchain - so should we".  Here are some details about Walmart's initiative:
  • It is not a public network - but a private network
  • It is owned and operated by a central authority called IBM.  They are using IBM Food Trust solution.
Under the hood - they could certainly be using blockchain concepts but how does that translate to this hype about blockchains solving the supply chain problems.  If IBM used linked lists in a certain algorithm - should a whole fad start around linked lists and how hash tables and arrays are now obsolete?

Supply Chain Optimization Problems - Myths and Realities

The often quoted scenarios for blockchain solving this made-up crisis is that "I as an individual should know where that box of Tylenol came from so I could see its whole history from beginning to end".

I fail to see how this statement - which is certainly a laudable and achievable goal - relates to blockchain?  Have we recently tracked a Fedex package?  Does it not provide end to end tracking?  Is that concept somehow dependent on the underlying data structure to be a blockchain?

This goal is more dependent on the premise that the actors involved in getting that Tylenol bottle to you are willing to share those details with you.  Walmart hype certainly does not give you, as a consumer, that level of visibility.  If a large number of actors involved in supply chain were willing to share that data using public domain - then a host of solutions could come into being - and most likely the winners would be based on dreaded and obsolete high-end RDBMSs of the world.

The basic building blocks of this level of visibility have been around for decades.  EDI framework provides specific transaction sets for providing supply chain visibility.   So the real challenge is not that we suddenly figured out this domain - the issue is that the industry has not agreed to publish these documents into the public domain - rather it is shared in private networks.  

So for that Tylenol bottle in your hand - all companies involved from manufacturing, to transportation, to distribution, to retail have all of the data without requiring blockchains to answer your question.  But they have decided to keep it private and propriatary.  If for example through industry concensus or government regulation each of the EDI transactions were published to the public networks - your query could be answered without requiring a specific underlying data structure.

Potential Case Study

A potential use case often presented is about movement of goods and when they reach a certain point certain logic could execute to for example pay for the transportation of goods.

So let us work on that - we are all quite familiar with receiving packages via UPS, FedEx, or USPS.  All of them today provide end to end visibility of the goods movement on their network.  We can track it from the shipment facility all the way to my house - but currently I would need to go to their specific website to track the package.  

So let us say they all agree that we want to provide this visibility generically so that I may be able to see the movement without requiring to go to the specific vendor's site - what needs to happen to make it happen?  Is it blockchain or something else?

We just need to implement blockchain!

First question is - what is the unit of the blockchain?  Is there one chain for each tracking#?  Or is there one global blockchain containing billions and billions of nodes?  Or something in the middle?  Can a solution be developed without the industry coming up with some standards?  

So "we just need to implement blockchain because walmart did so" will not work here.  They will need to sit together and come up with some protocols about how the data is to be exchanged and then a solution can be developed.

Does this porblem require blockchain?

If the industry comes up with standard definition of tracking numbers, service levels, etc. a solution can be developed.   The solution cannot really be a global ledger as there may be trillions of nodes to go through.  It needs to be a solution where unit is a tracking# so the person can quickly get to that and see its history.  The requirement of this network is not that it must be a blockchain but that:
  • It is an add-only list
  • Unit is tracking number
  • Various participants should be able to add data to it for example the various contractors who may be carrying it and eventually the final delivery
  • Logic may be executed when certain conditions become true 
  • The list must be in public domain and not on propriatary networks
Given these requirements a blockchain is certainly one option - but that is an implmentation strategy.  For instance DNS is the data store - one site may have it as a file, another for example may choose to have it in a database.  There is nothing fundamental in that protocol that requires a certain solution - as long as the protocols are respected - we have a solution.  

So in that world, for example, a shipper will announce that I have given this tracking number to a truck driver.  Truck driver will then announce that I am on the way.  Airplane loader will announce the loading on the airplane and so on.  Eventually the delivery van driver will announce that it has been delivered.  If signature is captured, it will be announced as well.

With a standard and well-understood protocol in place various competing nodes get that announcement and add to their respective databases - and then announce to the network that they have added it.  

To prevent against foul-play, difficult hashing is just one technique - for example DNS works quite well without it.  Distributed databases have various concepts to safeguard against this.

So in this world - one of the nodes may implement this distributed database as a blockchain while another may have an Oracle backend and still another could use mysql.  The problem is not of technology but of protocols and standards.

Conclusion

It is important to separate hype from reality.  Blockchains are an intersting concept that need to be understood by today's computer professionals.  In supply chain, if visibility is the goal - problem is not the technology platform but mindset of the industry where currently they want to keep several realities close to them and not share with the world.

So for example walmart did not push their data to the public domain because doing so would publicize their vendors and also their volumes.  These could compromise their potential advantage over the competition.  

We must never force a solution just to say "we did it!".  While understanding concepts is important, using the right tool in the right place is essential.  Blockchain is a tehnique - is it supply chain's savior - not really!

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    , it could be due to various reasons, such as unusual account activity, failure to complete verification, or violating Coinbase's terms of service. To resolve this issue, log into your account and check for any notifications or requests for additional information. Completing any pending verifications or updating your information might help restore access. If the issue persists, contact Coinbase support for assistance. They can guide you through the necessary steps to lift the restriction and regain full access to your account.

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  126. A Transaction in Coinbase Wallet involves sending or receiving cryptocurrency directly through the wallet interface. Users can seamlessly manage their assets, execute trades, or interact with decentralized applications (dApps). The wallet provides a secure and private environment for transactions, ensuring that users maintain control over their private keys and funds. With Coinbase Wallet, users can easily access their digital assets and perform transactions without needing to rely on third-party services, making it a versatile tool for managing and using cryptocurrencies.

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  127. Great blog post! Your insights are both informative and engaging. Looking forward to reading more from you.
    Also Read:
    How to Transfer from Apple Pay to Cash App
    Great blog post! Your insights are both informative and engaging. Looking forward to reading more from you.
    Also Read:
    How to Transfer from Apple Pay to Cash App

    ReplyDelete
  128. You'll first need to link a common bank account to both apps to transfer money from Venmo to Cash App. Transfer the desired amount from your Venmo balance to your linked bank account. Once the funds appear in your bank account, you can then transfer them from the bank to your Cash App balance. This process typically takes one to three business days for each transfer. While there isn't a direct way to transfer money between Venmo and Cash App, a linked bank account provides an efficient workaround.

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  129. To recover your MyEtherWallet (MEW) account, you must use your private key, recovery phrase, or Keystore file. If you have these, visit the MEW website, select "Access My Wallet," and follow the prompts. These recovery details are necessary for access to be recovered, as MEW cannot restore accounts for security reasons. Always store your recovery information securely.

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  130. To Transfer Money From Crypto.com To Bank Account
    , first, sell your crypto for fiat in the app. Then, go to the "Transfer" option, select "Withdraw," choose "Fiat," and pick your bank account. Enter the amount to transfer and confirm. The funds should arrive in your bank within 3-5 business days.

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  131. If your coinbase balance not showing, first check if the app or website is up to date. Ensure you're connected to the internet and try refreshing the page or restarting the app. If the problem persists, clear your browser cache or app data. You can also check Coinbase's status page for outages or contact their support for further assistance.

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  132. If you're experiencing a "No Connection" coinomi no connection, it typically indicates a problem with your internet or the app's servers. To resolve this, ensure you have a stable internet connection and try restarting the app. If the problem persists, check for app updates or visit Coinomi's support page for further assistance.

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  133. To Withdraw Money from Crypto DeFi Wallet, connect the wallet to a compatible decentralized exchange (DEX). Select the cryptocurrency you wish to convert to fiat, execute the swap, and transfer the converted funds to a centralized exchange. From there, you can withdraw the money to your bank account. Always double-check wallet addresses to avoid errors.

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  134. If your Coinbase Account Under Review, it may be due to suspicious activity, verification issues, or security concerns. During this period, account access might be limited. To resolve the issue, check your email for instructions from Coinbase, and provide any requested information. Contact Coinbase support for further assistance, and ensure your account details are up to date.

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  135. If your coinbase balance not showing, it could be due to a temporary glitch, account synchronization issues, or an update delay. Ensure you're using the latest app version and try refreshing the page or logging out and back in. If the problem persists, contact Coinbase support for further assistance to resolve the issue and access your funds.

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  136. If your Coinomi wallet is experiencing a "coinomi no connection" issue, ensure your internet connection is stable and try restarting the app. Clear the app's cache, update to the latest version, or check if the Coinomi server is down. If the problem persists, consider switching networks or reinstalling the app for a fresh start.

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  137. To Transfer Money From Crypto.com To Bank Account, first, sell your cryptocurrency for fiat currency within the app. Once the funds are in your fiat wallet, select the "Withdraw" option and choose your linked bank account. Enter the amount you'd like to transfer, confirm the details, and submit the request. The transfer process typically takes 2-5 business days, depending on your bank’s processing times.

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  138. Great article! I completely agree with your insights on the importance of having robust solutions for b2b global event solutions. In today’s competitive business landscape, seamless event management, networking opportunities, and targeted lead generation are critical to maximizing the value of B2B events on an international scale. Companies that leverage comprehensive B2B global event solutions are not only able to enhance their brand presence but also foster deeper connections and partnerships across borders. It's exciting to see how these solutions continue to evolve and create more impactful experiences for businesses. Looking forward to seeing where the industry heads next!

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  139. If your Coinbase Account Under Review, it typically means the platform is conducting a routine check to ensure compliance with its security policies. Unusual activity or verification requirements can trigger reviews. During this period, certain account functions may be temporarily restricted. Contact Coinbase support for more information or wait for the review process to be completed.

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  140. If your coinbase balance not showing, it could be due to a temporary glitch or an issue with account synchronization. Ensure that your app or browser is updated, and try refreshing your account. If the problem persists, contact Coinbase support to investigate the issue and restore your balance visibility quickly.

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  141. To Fix Internal JSON-RPC Error in Metamask first try clearing your browser's cache or the app’s cache if you're using the mobile version. Ensure MetaMask and your browser are updated to the latest versions. If the issue persists, switch networks or reset your MetaMask account under settings. This won’t affect your funds but may resolve the error.

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  143. To Withdraw Money from Crypto DeFi Wallet, first, connect the wallet to a centralized exchange that supports your cryptocurrency. Transfer the desired amount from your DeFi wallet to the exchange, where you can sell your crypto for fiat currency. Once sold, initiate a withdrawal to your linked bank account. Always double-check transaction details to avoid errors.

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  144. This comment has been removed by the author.

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  146. A Coinbase Account Under Review typically means that the platform is conducting a routine check to ensure compliance with regulatory standards or to verify account information. This process may temporarily restrict access to certain features, such as withdrawals or trading. Reviews can be triggered by unusual activity, large transactions, or verification updates. It's advisable to monitor your email for updates from Coinbase during this period.

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  147. If Coinomi shows "coinomi no connection available, " check your internet connection and ensure it’s stable. Try switching between Wi-Fi and mobile data or restarting your device. If the issue persists, clear the app’s cache or reinstall it. Make sure Coinomi is updated to the latest version. Lastly, check if the Coinomi servers are experiencing downtime or maintenance.

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  148. Thank you for sharing such an insightful and well-researched article. Your expertise on the subject is evident, and I found the content both informative and engaging. I look forward to reading more of your blog.

    Also Read:
    How to Transfer from Apple Pay to Cash App

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  149. Thank you for sharing such an insightful and well-researched article. Your expertise on the subject is evident, and I found the content both informative and engaging. I look forward to reading more of your blog.

    Also Read:
    Transfer the Stocks from Cash App to Robinhood

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  150. To Deposit GBP in Coinbase account, first, log in and navigate to the "Portfolio" section. Select "Deposit" next to the GBP wallet, and choose the "Bank Deposit" option. You'll receive Coinbase’s bank details and a reference number. Use these details to initiate a bank transfer from your UK bank account. Ensure you include the reference number to avoid delays. Bank transfers typically take 1-3 business days, and once processed, your GBP will be available in your Coinbase account for trading or withdrawal.

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  151. To Transfer Money from Venmo to Cash App, you’ll need to link a mutual bank account to both apps. First, transfer your funds from Venmo to your linked bank account by selecting “Transfer to Bank” in Venmo and choosing the bank account. Once the funds are available in your bank account, open Cash App, tap “Add Cash,” and transfer the desired amount from your bank to Cash App. Unfortunately, there’s no direct transfer option between Venmo and Cash App, so using a bank account is necessary.

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  152. Thank you for sharing such an insightful and well-researched article. Your expertise on the subject is evident, and I found the content both informative and engaging. I look forward to reading more of your blog.

    Also Read:
    How to Transfer Crypto with SafePal X1 Hardware Wallet

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  154. Discover expert guides, news, and articles on Blockchain wallets and cryptocurrency, offering valuable insights and step-by-step tutorials. Why can't Withdraw Fund from Blockchain Wallet, How to Transfer Money from Blockchain to Binance? visit us

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  155. money getting stuck in DeFi Wallet often occurs due to network congestion, insufficient gas fees, or incorrect transaction details. Double-check the recipient address, ensure adequate gas fees are set, and verify network status. Use blockchain explorers to track pending transactions. If unresolved, consult your wallet’s support team or community forums for assistance to recover your funds efficiently.

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  156. Blockchain Payment Gateways - Blockchain Development Company India, immutable, distributed ledger technology (DLT) that can safely record transactions and keep track of assets within a network.

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