1、White PaperInclusive Deployment of Blockchain for Supply Chains:Part 3 Public or Private Blockchains Which One Is Right for You?July 20193Inclusive Deployment of Blockchain for Supply Chains:Part 3 Public or Private Blockchains Which One Is Right for You?ContentsWorld Economic Forum9193 route de la
2、CapiteCH1223 Cologny/GenevaSwitzerlandTel.:+41(0)22 869 1212Fax:+41(0)22 786 2744Email:contactweforum.orgwww.weforum.org 2019 World Economic Forum.All rights reserved.No part of this publication may be reproduced or transmitted in any form or by any means,including photocopying and recording,or by a
3、ny information storage and retrieval system.Preface 4Introduction 5Blockchain terminology 6Taking stock of the supply chain landscape 7A primer on blockchain 8Key considerations in blockchain structure 9Key questions 15Conclusion 16Appendix 17Acknowledgements 18Endnotes 20Lead Authors Hanns Christia
4、n Hanebeck,Founder and Chief Executive Officer,Truckl,USANadia Hewett,Project Lead Blockchain and DLT,World Economic Forum,USAPeter A.McKay,Content Producer,Dispatch Labs,USA45Inclusive Deployment of Blockchain for Supply Chains:Part 3 Public or Private Blockchains Which One Is Right for You?Inclusi
5、ve Deployment of Blockchain for Supply Chains:Part 3 Public or Private Blockchains Which One Is Right for You?PrefaceBlockchain technology often elicits both fascination and confusion from leaders within organizations.Within the supply chain industry,the technology has now moved beyond the early pro
6、of of concept provided by bitcoin.1 At the same time,the technical complexity of blockchain can be a barrier to entry for newcomers.This report attempts to break one of those barriers as it pertains to global supply chains.Specifically,the report addresses important criteria to make sense of public
7、versus private blockchains and looks at how each affects the eventual supply chain solution.It is important that industry decisionmakers can sort through the marketing hype to pick the best solution for their particular requirements.For instance,some blockchain technology providers in the industry h
8、ave made claims such as“Were the first ever truly neutral system”or“Were the only public solution”or“Our private blockchain is best positioned to protect your data”.Supply chain professionals understandably need help sorting through such claims,some of which are inevitably misleading or inaccurate.W
9、hile the focus of this white paper is on demystifying elements of the publicversusprivate debate,it is important to remember that the blockchain structure is only one aspect of the technical solution.Although we outline some typical criteria in this white paper,decisionmakers must look at the contex
10、t of their selected use case and distinct requirements.This paper is the third in a series covering the cocreation of new tools for the responsible deployment of distributed ledger technology(DLT)in supply chains.To produce this series,the World Economic Forums Centre for the Fourth Industrial Revol
11、ution is working with a multistakeholder group to create a project that includes:A series of papers published in 2019.Collectively and individually,these papers will offer insightsand thorough explorations of the specific considerations for decisionmakers in harnessingblockchain technology effective
12、ly.A concise,easytouse toolkit to be released in 2020 covering important topics for supply chaindecisionmakers to consider for responsible blockchain deployment.Sheila Warren,Project Head,Blockchain and Distributed Ledger Technology,World Economic ForumNadia Hewett,Project Lead,Blockchain and Distri
13、buted Ledger Technology,World Economic ForumIntroductionAs specific use cases take on an increasingly important role for blockchain and distributed ledger technology(DLT)deployments,one area that has already emerged as a fertile area for applications is the global supply chain.In a 2018 survey of 1,
14、000 corporate executives,the consulting firm Deloitte found that more than half of respondents(53%)identified the supply chain as a use case their companies are exploring for blockchain.That topped relatively more“traditional”use cases of the technology such as internet of things(IoT)(51%),digital c
15、urrency(40%)and payments(30%).2Figure 1:Blockchain use casesFor supply chain organizations launching new blockchain projects,one of the most fraught considerations typically is whether to use a public or private ledger and what permission models.This decision affects functionality,security,compatibi
16、lity with other stakeholders systems and,perhaps most important,competitive positioning for companies.This paper explores important considerations in making the publicversusprivate decision,including arguments for and against each option.It is important to remember that the blockchain structure is o
17、nly one aspect of the technical solution.While we outline some typical criteria in this white paper,decisionmakers must look at the context of their specific use case and its distinct requirements.The findings in this paper were gleaned from research as well as detailed interviews with blockchain us
18、ers across diverse industries,geographies and applications.The findings are undertaken in simple terms to bring understanding of some key considerations.For these reasons,the paper will not delve into the multitude of technical layers,complexities and exceptions that exist with blockchain technology
19、,though the authors recognize their existence and importance.Source:Deloittes Global Blockchain Survey:Findings and Insights Supply chainInternet of thingsDigital identityDigital recordsDigital currencyPaymentsVotingNoneOther/unsure53%51%50%44%40%30%12%4%2%Blockchain use-casesPercentage of responden
20、ts that are working on the select use-casesPercentage equals more than 100%because respondents were allowed to submit more than one answer67Inclusive Deployment of Blockchain for Supply Chains:Part 3 Public or Private Blockchains Which One Is Right for You?Inclusive Deployment of Blockchain for Supp
21、ly Chains:Part 3 Public or Private Blockchains Which One Is Right for You?It is important to pause here to note that the blockchain space is often subject to controversies stemming from the early maturity of the technology itself this also applies to the concepts of public and private blockchains.Th
22、is is often caused by a simple misalignment of definitions between speakers,with even the term“blockchain”meaning vastly different things to different people.Determining the facts,understanding the variants,and effectively communicating the capabilities of the technology can be challenging when term
23、s are misleading or used out of context.In any discussion on the topic,it is hence important to align on the verbiage and terminology used for public versus private blockchains3.Some experts say a vital criterion in classifying a blockchain as“public”or“private”is whether it is truly decentralized.T
24、hey may argue that a DLT is not“public”unless it is 100%decentralized.Others believe a more finely tuned spectrum of decentralization should exist.Unfortunately,there is no shortage of terminologies used to explain public versus private and related permission models.This dearth of objective material
25、 led Angela Walch,associate professor at St.Marys University School of Law,to caution regulators in her 2017 paper,The Path of the Blockchain Lexicon(and the Law).“It is essential,”she writes,“that regulators do not simply accept what they read or hear at face value;rather,they must adopt a critical
26、 point of view and act strategically to uncover the facts beneath the muddle of inconsistent terminology,misinformation and hype.4”These semantic misalignment are unlikely to stop any time soon,so leaders are best advised to seek to clarify terms used to descibe a blockchain.In 2018 and 2019 researc
27、h,The World Economic Forum dived deeply into the evolving discussion on whether public or private blockchains are typically best suited for the supply chain industry.Following are some of the key findings:To the extent that organizations in the industry haveexperimented with blockchain technology so
28、 far,bothpublic and private versions have been useful in achievingdifferent objectives and meeting project requirements.Many industry veterans believe the supply chain space isgenerally cautious in adopting new technology tools suchas blockchain.Collaboration and data sharing amongorganizations have
29、 traditionally not been the norm,goingback over many decades.Thus,new entrants aimingto encourage blockchain adoption are likely to facechallenges and many see private technologies in thenear term as the more likely path for the industry to beginusing blockchain technology.This helps to acclimatizes
30、upply chain providers organizational cultures tounfamiliar new technology.However,as the industrygrows more comfortable with blockchain,there is hope itwill open the way for increasing use of publicchains in applications,where appropriate.As the industry explores private blockchain solutions,it is i
31、mportant to distinguish the benefits of blockchaintechnology from that of traditional databases.Beingaware of the pros and cons of blockchain andunderstanding where its features really help to solvea problem,ensure that the new technology does notbecome just an expensive version of a centralizeddata
32、base.In use cases where the unique advantages ofblockchain arent particularly helpful,providers may optto stay with,for example,an SQL or NoSQL database orsimilarly traditional solution.The publicversusprivate blockchain debate hasreceived much media and supply chain industry attentionover the last
33、two years in the supply chain space to a degree that it can distract from what is reallyimportant.Many experts point out that for supply chainapplications,it is also important that the industry movepast the publicversusprivate debate to one focusedmore keenly on deploying solutions where enterprises
34、pecific requirements can be met.The requirements anenterprise specific blockchain solution must adhere totypically include:Blockchain terminologyTaking stock of the supply chain landscape Operational integrity:Clear contractualagreements in any relationship that affectstheir daily operations,so orga
35、nizations knowwho has liability if something goes wrong.“Know your customer”compliance:Acrucial regulatory issue,especially for paymentand financial services providers.Interoperability:Blockchain solutions have tointeract with other existing processes and systems.Security requirements:These may incl
36、ude datasegregation,control requirements,privacy and more.Scaleability:Of course,any new blockchainsolution should be able to grow along with theenterprise if needed in terms of transaction volume,number of customers and other metrics.89Inclusive Deployment of Blockchain for Supply Chains:Part 3 Pub
37、lic or Private Blockchains Which One Is Right for You?Inclusive Deployment of Blockchain for Supply Chains:Part 3 Public or Private Blockchains Which One Is Right for You?Bill of ladingInvoiceManifestCryptographic hash algorithmCryptographic hash algorithmCryptographic hash algorithmDJ86 JJRS 9841 9
38、9KV IYGV OYTR 884H 0187 ESRXOIH8 TR66 EPNG V771 8890 99HO YIUH SS98 874GOriginal documentMathematical processingAbstracted output0985 5465 IO78 8743 UYGY 8UY7 9890 GGVI UFS5Figure 2:Hashing algorithms Ways to abstract data on the blockchainIn the simplest terms,a blockchain is a shared,distributed a
39、nd immutable transaction ledger.Transactions are added as they occur,either one at a time or in batches,depending upon the protocol being used,with each“block”of transaction data containing context such as date,time and so on.The transaction“blocks”are then linked,usually in chronological order,to f
40、orm an audit trail that ensures transparency among participants.This series of linked transactions is referred to as a“chain”,and thus the whole data structure is referred to as a“blockchain”.Blockchain is a peertopeer network,so each node or participant maintains a replica of a shared ledger of dig
41、itally signed transactions.Other blockchain concepts and an explanation of blockchain structure public versus private and the different permissioned models are available in the first paper in this series,Inclusive Deployment of Blockchain for Supply Chains:Part 1 Introduction(April 2019).5 As supply
42、 chain stakeholders weigh the publicversusprivate question,they must consider several factors that may vary greatly including how many partners are included or what types of goods and materials are involved.Other important factors include what primary customers and partners are already doing(perhaps
43、 join an established consortium)and whether standards organizations and government agencies have requirements of their own that must also be met for compliance purposes.For example,when primary business partners have already joined a blockchain consortium such as R3,Energy Web Data accessVery import
44、antNot importantSystem performanceHighLowData integrity,availability and securityEssentialNot importantInteroperability and standards HighLowTotal cost of ownershipLowHighSecurityHighLowPersonal data protectionHighLowGovernanceHighLowFoundation or B3i,it may be made moot for individual companies to
45、ponder a solution that deviates from the consortiums collective action.Ultimately,supply chain management is a team sport that forces each party to draw a clear line on how much information it is willing to share.The research identified typical requirements that supply chain operators have for block
46、chain solutions.The importance and priority of these features differ depending on the use case in question.The following features were identified as required:A brief primer on blockchainKey considerations for blockchain structure Hashing vs open dataWhen deploying a blockchain solution,one vital con
47、sideration companies face is how visible their data should be.In particular,transactions on a public blockchain are available to be read not only by the whole supply chain network but also by nonindustry internet users.If a company decides to use a public chain,there are still some ways to protect c
48、ritical data.For example(see Figure 2),information that needs to remain confidential can be passed through a cryptographic hashing algorithm(for better security),which takes a text input of any size and creates an output of fixed length.This output is called a hash,and is irreversible,meaning that g
49、iven the output,the input cannot be determined.So,while other supply chain actors may see that a transaction occurred,they will see only a hash of the data and not the original sensitive information.With hashing,the original data needs to be stored offchain.On a blockchain network,hashes can be usef
50、ul in proving that documents have not been altered over time and to also show that the documents have been in someones possession at a particular time.For example,when there are disputes over how many goods were ordered and delivered in a transaction,a validation of original documents through the ge
