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London School of Mines
6 June 2019
Blockchain in Mining
Jake HartleyUK Blockchain Driver
PwC’s Digital Services
The establishment of trust between two people, organizations or machines
without trusted intermediaries, which enables value exchange
The value of Blockchain
PwC’s Digital ServicesPwC’s Digital Services
PwC’s Digital Services
The Human Need
PwC’s Digital Services
Quite simply…
1. It’s a Ledger…A blockchain is a way of storing and sharing data between participants
2. That is Shared…Everyone participating has an up-to-date copy of this ledger
3. Additions are AgreedAdditions need to be agreed upon by the majority
Secure
Able to be
made private
Transparent
Programmable
Tamper-proof
Non-repudiable
So what does this mean forbusiness today?
PwC’s Digital Services 6
In 2030, blockchain could generate $3 trillion a year in business value...
GARTNER
Blockchain is changing everything.
84% of executives have at least some blockchain involvement —with 15% having a live project.
PWC 2018 GLOBAL BLOCKCHAIN SURVEY
PwC’s Digital Services
PwC Digital Services 7
Supply chain and logistics
Finance effectiveness
Loyaltyprograms
Identity management
Records management
Digital currencies
Audit and compliance
Blockchain impacts every part of the business landscape
Benefits Barriers
Increased transparency
and traceability
Elimination of
intermediaries
Faster
transactions
Lower
costs
Regulatory
uncertainty
Collaboration
challenges
Complex
technology
Trust
issues
PwC’s Digital Services
Mining industry applications
Internal use only
What is blockchain?
A blockchain is a decentralised ledger of all transactions in a network. Using cryptography and consensus, participants in the network can confirm transactions without the need for a trusted third party intermediary.
Supply chain management
Logistics Environmental/ ethical assurance
Trading Cyber security
Blockchain
technologies are
already being used in
track & trace
applications across
multiple industries
(F&B/luxury
goods/transport &
automotive). Big
players e.g. BHP
Billiton have been
experimenting in this
area for some time
now.
In keeping with the
ultimate value
proposition of
blockchain tech,
removing
intermediaries and
complexity from the
world of logistics is
already resulting in
extensive cost and
time savings, along
with improved
transparency
At their point of
origin, products can
be digitally signed
and committed to an
immutable ledger to
ensure that their
provenance is
recorded. The
environmental/ethical
credentials of the
product can then be
verified at any time.
Mined materials can
be tokenised and
registered as digital
assets. They can
subsequently be
traded outside of
existing commodity
exchanges,
potentially increasing
liquidity in the
broader market.
Ledgers/records
within a centralised
database are more
susceptible to cyber-
attacks as all the
information is located
in one place.
Decentralised
blockchain systems
enable complete
transparency which
allows real-time fraud
analysis.
PwC’s Digital Services
Blockchain needs the right conditions to be successful
Confidential information for the sole benefit and use of PwC’s client.
9
Multiple parties share data
multiple participants need views of common
information
Multiple parties update data
multiple participants take actions that need to be recorded and change
the data
Requirement for verification
participants need to trust that the actions that are recorded are
valid
Intermediaries add complexity
removal of intermediaries can
reduce cost and complexity
Interactions are time sensitive
reducing delay has business benefit
Transactions interact
Transactions created by different participants depend on each other
If you can answer yes at least 4 out of 6, blockchain could be an effective solution
1 2 3 4 5 6
Technology & Investments
Issues around adoption
PwC Specific
● Competing for scarce investment with near term revenue opportunities
● Regulatory teams stretched on other things
● Lack of confidence/detractors internally
● Our assessment of client needs tends to be reactive - what they tell us they want today, rather than taking new ideas
Industry-wide
● Clients looking at blockchain as infrastructure play - wait and see mode
● Clients looking at blockchain for new business models -defensive/reactive only
● Complex tech - business case for production solution is hard to build
● Consensus required to build new solutions is hard to sustain in the details
● Regulatory uncertainty
Technology & Investments
Blockchain @ PwC
Jake Hartley
07718 980 657
Samar Singh
07711 562 368
Please get in touch with us for more information
