Making Blockchain Smart
Krista: Thanks, Mark, for joining us today. Today we are talking about blockchain and how we make blockchain smart, so tell me what are people doing? This is super buzz word, bingo. What are people doing to actually make blockchain smart?
Mark: Yeah, I mean blockchain obviously is maturing in the industry. Really, the concept of data driven contracting or smart contracts is what we’re excited about at BB3. You don’t actually even need to bind this to a blockchain, but if you do that, it brings certain advantages. So it’s estimated that the industry is leaking about 9% of company turnover based on poor contract management, so the whole life cycle of contracts. The idea of data driven or smart contracts is that you’re able to manage the life cycle of those contracts and then connect them to shared data in the blockchain to allow you to automatically execute specific clauses within that contract itself.
Krista: So can you give me more of a real world example of that?
Mark: Sure. If you think about transportation of fragile goods where a grocery store might take some strawberries from an agriculture organization, they would have clauses in the contract that say the strawberries need to be transported below 12 degrees, center grade. So we have this concept of spoilage. If the strawberries are transported above their temperature then we may get spoilage and there’ll be penalties in the clause. So the smart contract allows you to monitor sensors in the van for temperature and then automatically execute those spoilage clauses based on the transportation data.
Krista: Well, that’s great. Super interesting. So we’re combining IOT devices there, we’re getting blockchain involved and smart contracts.
Mark: Absolutely. Shared data model, connected to IOT sensors and bound by contracting, so instead of having all of those administers figuring out after the fact what should be paid and what should be exchanged, it’s fully automated.
Krista: Well, I look forward to 9% less spoilage in food. Thanks, Mark, for joining us.