Industries

Blockchain Implementation with Government

The public sector is a complex machine – centralised in respect of its responsibility for governance and public service delivery, yet fragmented and often disconnected in terms of its organisational structure and ability to share data. The effects of long-running austerity cut deep – reductions in departmental budgets offer a stark choice to central and local government bodies alike: sweeping cuts, shrinking headcount and reduced services on the one hand or wholesale transformation of service delivery on the other. At the core Blockchain is a distributed ledger that enables efficient and reliable transactions that are typically private (or pseudonymous), secure, and transparent. Blockchain records are visible to all members of a network, so they can be easily monitored and audited. They are protected by encryption and a groundbreaking peer-to-peer cryptographic validation mechanism that makes them highly secure. Also, once a record is added to the blockchain, it is permanent and is next to impossible to tamper with.

Potential Blockchain Use Cases for Government

Government to Citizens

Blockchain tends to displace existing intermediary institutions, meaning that government – which is often one of those intermediary institutions – could find its unique position as a service provider diminishing across a range of functions. That being said, the secure platform provided by blockchain could also provide the government with a transaction layer upon which the service functions it does retain are executed and recorded.

Government to Government

Since blockchain enables a shared ledger with minimal transaction latency, it could allow agencies to reconcile transactions and budgets faster than ever before – without having to change their traditional service model. In cases where government agencies maintain silos of information, blockchain could make information sharing easier by serving as the common transaction layer upon which agencies communicate.

Government to Vendor

In some cases, the government is able to use its leverage with vendors to encourage compliance. That means the government could not only solicit work and distribute funds via blockchain-based applications, it could also drive vendor compliance by offering access to the platform as an incentive for certain corporate practices.

Applications

Electronic Health Record system built over Blockchain is one another application which would widely solve all healthcare records related issues. Every node in Blockchain EHR system would sent updates about medications, problems, and allergy lists to an open-source, community-wide trusted ledger, so additions and subtractions to the medical record were well understood and audit-able across organisations. Instead of just displaying data from a single database, the EHR could display data from every database referenced in the ledger. The end result would be perfectly reconciled community-wide information about all their citizens, with guaranteed integrity from the point of data generation to the point of use, without manual human intervention. A Blockchain powered benefit distribution system is being proposed against the regular system of distributing funds for these benefits. In the system, crypto-tokens would be generated and passed from issuer to scheme organising departments to beneficiaries which beneficiaries be able to redeem to different vendors in the same ecosystem. A blockchain could also serve as the official registry for government-licensed assets or intellectual property owned by citizens and businesses, such as houses, vehicles and patents. A blockchain could facilitate voting in elections, ensuring that each eligible person uses only one vote. A blockchain could also help in back-office functions, to coordinate and streamline tendering and purchasing across departments, agencies, and other armslength bodies. In all cases, a blockchain could reduce fraud and error while delivering big benefits in terms of efficiency and productivity.

We are working with a number of Government bodies to help them build Blockchain applications to increase their efficiencies and enable them a true transparent corruption free e-Governance.


Internet of Things

By providing a secure mesh network, blockchain can deliver a platform for IoT to interconnect reliably and avoid the threats that plague central server models.

There are companies already using blockchain to power IoT systems, especially in the agriculture and manufacturing industries where there is a need for remote sensors and automation.

IoT, powered by blockchain technology, enables a low power, secure network that can remotely manage physical operations without centralized cloud servers.

Applications

Industrial manufacturing

The manufacturing industry is moving to an entirely virtual world across its lifecycle, ranging from product development, customer demand monitoring to production to inventory management. As devices and systems become more interactive and intelligent, the blockchain can serve as a plant level, regional level and global supply chain level ledger. This will dramatically cut costs and drive more efficient just in time (JIT) processes enabling better usage of plant capacity and improved operational efficiencies.

Connected and driverless vehicles

The Connected Vehicle enables the car or truck to behave as a giant Smart App. With the passing of every year, vehicles have more automatic features builtin – ranging from navigation, roadside assistance etc. Blockchain will enable these devices to be tracked on the digital mesh thus enabling easy inter vehicle communication as well as automatic tracking of fleet insurance policies, vehicle registration renewals etc.

Transportation

IoT + Blockchain = Connected Transportation. A range of scenarios can be imagined around a connected mesh of vehicles that exchange everything from traffic information to avoiding gridlocks and bottlenecks. Extending this to global trade, this mesh can incorporate shipping, air freight as well as ground transportation to track shipments.

Public infrastructure and smart cities

Smart devices are already being used to track the health of bridges, roads, power grids etc. Blockchains can be used to interconnect these to share efficiencies and to conduct maintenance, forecast usage trends for power usage, pollution etc. Another key area of usage would be to help remote areas such as forests to monitor natural incidents and to prevent catastrophic occurrences like large scale forest fires or farm infestations by blight etc.

Financial services and insurance

Banks could use Blockchain backbone to track IoT enabled devices like ATM machines, remote tellers to conduct maintenance. Insurance companies which have already started deploying drones to verify property claims in remote areas can use the Blockchain to validate and verify claims.

Home and commercial real estate management

Using sensors deployed on both homes and commercial buildings helps with automated home and office monitoring. The usecases will diverge across both areas but many can be built on having a foundational distributed ledger capability.

Smart contracts

Blockchain based cryptocurrencies like Bitcoin enable two business capabilities at a high level – a) transfer of cryptocurrency and b) business rules that specify when the payout has to happen – typically once conditions that have been met – which satisfy fulfillment of contractual terms. These rules are termed “Smart Contracts.’ Smart contracts are applicable across all of these business areas and can be used to keep track of business rules and take actions based on thresholds that have been met or have been breached. E.g A driverless vehicle that has failed an inspection can be grounded, non payment of home owners insurance can trigger an alert to the homeowners housing society etc.

Retail

Retailers are already using IoT devices and endpoints to help across the business lifecycle – ranging from the shop floor, to tracking product delivery to store, to understand their customer traffic patterns, wearables etc. The vision of the Connected Store with IoT enabled shelves, an ability for customers to perform more actions using smartphone apps to reducing checkout times with self checkout etc are all taking place. The Blockchain can augment all of these usecases by providing the critical link between retailer and consumer in a way that it automates away the middle man- be it a credit card issuer, or a central server. For instance consumers can store their product preferences, sizes in a Blockchain and the retailer can access these in a seamless and secure manner.

We are working on an advance Auxiverse platform to connect IoT devices over a distributed network and ensuring any central point of failure while enabling futuristic automation using Smart contracts.


Cross Border Remittances

Traditional remittances have hardly changed over the years and now Blockchain is here to radically improve the process of cross border remittances. Currently where the settlement take huge amount of fees along with a very long settlement time, Blockchain based protocols enable this settlement in minutes with a fraction of the fee.

Applications

Existing Remittance Options Take Too Long

Currently, anyone who banks with major institutions knows what’s involved, at least on the user end, with remitting money overseas. First off, it takes a lot of time. When you transfer funds between SWIFT affiliated banks, some institutions take can take up to five days or more. In the case of needing a instant solution to take the place of this, blockchain technology is a useful one. Cryptocurrencies which are already proven on blockchain technology can transfer funds with a state of security within minutes.

Remitting Funds Cross-Border Is Expensive

The second problem with cross-border remittance is that the cost can be restrictive. Blockchain remittances are cheaper and more secure for both financial bodies and end users due to the simple yet extraordinary networking technology which cuts out time and fees. For people within developed nations who send money to their families overseas, the fees with traditional banks can tumble up to hundreds of dollars, often being charged both to send and receive funds. For those in developing countries, the need for low-cost remittances is even greater. In countries such as the Nigeria and the Philippines, remittances form a huge fraction of their GDP, around 4% and 10% respectively. Every dollar spent on the fees associated with sending the money is likely better used elsewhere.

Opening Up Options To Those Who Need Them

Lastly, the access to traditional banking solutions within developing nations can be a major issue for people to overcome in their attempts to transfer money. Even if banks systems are available, not everyone has access to them. Having a more widely spread solution based on blockchain technology takes the nearly exclusive power that mega-banks have over cross-border remittances and gives more opportunities to people who need them.

Blockchain technology gives us the power to change and radically improve on efficiencies in many tried and true industries that we just take for granted as being big, slow, complex, but ultimately reliable. When we add in forefront industry expertise with blockchain technology, amazing new innovations are possible that will help people all over the world with not only revolutionary new features and abilities, but more reliability and transparency in the process.

Auxesis has built applications such as Cashaa which has already transferred millions of dollars using the Blockchain technology acoss countries in a faster and very cost effective manner.


Capital Market Trading

Storing and agreeing datasets of financial obligations and ownership forms the basic core of capital markets operations. The current methods are highly complex, utilise fragmented IT and data architectures and suffer from a lack of common standards. This creates the continual need to reconcile data with massive systems and process duplication, leading to high costs and protracted time to execute tasks.

Applications

Pre-Sale

  • Transparency and verification of holdings
  • Reduced Credit Exposures
  • Mutualization of static data
  • Simpler KYC/KYCC via look through to holding

Trade

  • Secure, real-time transaction matching, and immidiate irrevocable settlement
  • Automatic DVP on a cash ledger
  • Automatic reporting & more transparent supervision for market authorities
  • Higher AML2 standards

Post-Trade

  • No central clearing for realtime cash transactions
  • Reduced margin/colateral requirements
  • Faster novation and efficient post-trade processing
  • Fungible use of assets on blockchains as collateral
  • Auto executions of smart contracts

Custody & Securities Servicing

  • Primary issuance directly onto a blockchain
  • Automation and de-duplication of servicing process
  • Richer central dataset with flat accounting hierarchies
  • Common referance data
  • Fund Subsciptions/ redemptions processed automatically on the blockchain
  • Simplification of fund, servicings, accouting, aloocations and administration

Insurance Solution

We have a lot of interactions in the insurance value chain which requires involvement of 3rd parties for each step of the process. The current paper heavy and manual process oriented industry can be make a lot efficient by bringing up of Blockchain smart contracts in the processes.

Applicability of Blockchain across Insurance value change

We have also enabled insurance companies to go truly peer-to-peer using our Blockchain products.


Supply Chain Network

Supply chain Solutions are the best fit for Blockchain

We are moving toward the era where Trust Gap is increasing and again technology has come to rescue us as it keep happening in past.

We believe that the use of blockchain technology provides a number of truly unprecedented breakthroughs for certain public-interest information, such as the supply chains of consumer products.

By using blockchains, we can create a system that allows an incremental, piecemeal adoption model, gracefully building in utility as adoption increases, but without an inhibiting cost/benefit ratio in the initial stages of usage.

Transparency is in demand

Genuinety is built to create a relationship with the material world which is broken. Competitive advantage of open, transparent supply chains and sustainable manufacturing.

The creation, exchange, and use of material things, however, has many potential negative consequences: environmental damage, exploitative extraction, unsafe work conditions, forgery, and the huge amounts of valuable material wasted at the end of product life.

Centralized systems can’t power transparency

Despite various efforts, full “chains of custody” that tell the stories of products remain largely rudimentary and difficult to verify. Fragmentation of these efforts makes them open to fraud. To connect the dots, nominally neutral, not-for-profit or governmental entities are commissioned with the task of creating a centralized data storage to enable a flow of trusted information.

In the face of these efforts, we must ask ourselves: can one organization be trusted to broker all data about every product’s supply chain? The truth is that no single organization can, and that relying on one party (or even a small collection of cooperating parties) creates an inherent bias and weakness in the system.

100% Secure with no exception

Recent years have seen a surge in attacks undermining the protection mechanisms erected around centralized systems. While many attacks exist that directly target the hardware itself, the easiest way to circumvent the strongest security component is social engineering, which targets the weakest human component. By leveraging those with the most elevated access rights, an attack that targets IT and operational support administrators could eventually lead to the system being fully compromised (which is why there are often anti-coercion procedures in place for sensitive financial systems).

With the blockchain, security is different: it does not matter who or where the user is, because all information provided to the blockchain is accepted only if it is authenticated. This authentication is provided in the form of an unforgivable digital signature: a cryptographic mechanism that — in a manner analogous to a physical signature but significantly more secure —allows someone to prove their identity without enabling someone else to impersonate them in the future (see call-out box for more details).

Completely Auditable

In any deterministic system, it is possible to strictly verify and audit the actions within the system as correct; indeed, the inputs and outputs of the system serve as a record of the various interactions (e.g., automated bank transfers in the case of a payroll system or ordering additional components in the case of a stock control system) that have led the system into its present state. While this is true in theory, to perform this audit in practice comes with one proviso: all information concerning all inputs must be provided. In traditional systems, this is expensive, impractical, or impossible. The inputs to a business system typically include heterogenous types of data coming from a wide variety of sources, and the auditing itself, which would essentially require “playing back” such inputs, would be technically challenging. Furthermore, auditing may require strong knowledge and assurance of operator identity, which can often be compromised or flawed in a system with many actors.

A blockchain is different, as by design it is perfectly auditable. Each individual operation or interaction, such as the provision of a new employee or the recording of outgoing stock, is perfectly recorded and archived. Auditing is thus as simple as joining the blockchain network, as this allows one to “replay” the operations of the past in order to build a correct model of the present. Combined with the absolute guarantees of authenticity for every interaction, strong and agile data systems can be facilitated that are at their core resilient to coercion and human factors.

Public-Private Key Infrastructure

Public/private key infrastructure allows us to mimic a physical signature by way of provably registering our identity with a digital document or instruction without at any time giving others the ability to further produce such signatures for other instructions or documents.

Notionally, physical signatures are difficult to reproduce, especially on demand, leading to their common usage as a way of proving that counterparty is engaged under a particular agreement. In the digital age where facsimiles are trivial to create and face-to-face engagement no longer the norm for most transactions, they no longer serve their purpose: access to a signature generally leads to ability to reproduce the signature.

User centric application

By design, every transaction along a supply chain on the blockchain is fully auditable. By inspecting the blockchain, Smartphone applications can aggregate and display information to customers in a real-time manner; furthermore, due to the strong integrity properties of the blockchain, this information can be genuinely trusted. A thoughtful user interface that sheds light on the digital journey of a product can empower better purchases by giving users a true choice that they can exercise.

There are substantial broad effects of bringing near-frictionless transparency to consumer purchase decisions and product identity; clearly there is likely to be an additional “virtuous” component in purchase decisions, especially among mid-level purchases where a marginal increase of 20% to the price does not affect the willingness to buy. Additional levels of guarantee over genuine articles are a high-value use case. While an initial introduction of this technology may be in the form of a discrete and removable label, easily verified through a Smartphone-readable QR-code, a more progressive possibility would be a conspicuous hologram tic or RFID tag, embedded in the brand label, allowing the owner to prove the authenticity of the product at any time by accessing the data on the blockchain through the tag.

Anonymity and protection of sensitive business data

The success of the proposed systems relies on the registration of identities and recording of transactions and information. This enables actors on the supply chain to carry and prove the defining attributes of their material products to any actor further along the chain. Certain users, however, might be concerned about their privacy or the privacy of their suppliers further up the chain. Technologically, it is possible for identities to be protected in a blockchain-based system, while still transferring other salient information. For example, manufacturers in the middle of the supply chain could securely pass a certificate with full authenticity downstream while keeping their identity private. For customers, the described system provides the ability to check important attributes of purchased goods without necessarily seeing the full intricacies of the supply chain that created them. The system also allows for the trusted proof of ownership thanks to Public-Private.

Key Infrastructure (see above) without revealing their identity of owners to the system. In fact, customers could even use the system to sell a good on a secondary market, allowing the chain to continue post sale throughout the product lifecycle.

With blockchains data can be accessed and verified by all actors, rather than solely by the original certifier.

Our team is constantly building different use cases to leverage Blockchain at different points of the Supply Chain. Genuinety, one of our products is for anti-counterfeiting and end-to-end process management using our Blockchain network. Our other focus area is to build an effective inventory management system right from Manufacturer to retailer.

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