Accelerating blockchain for the supply chain - Zetochain

Accelerating blockchain for the supply chain White Paper

July 2018

2 Zetochain Whitepaper

Contents Executive Summary

3

The problem with today’s supply chain

4

Fit-for-purpose supply chain required

5

How blockchain solves supply chain problems

6

How blockchain is primed for supply chain disruption

6

Is there an appetite for blockchain?

7

The barriers to blockchain adoption

8

How Zetochain will accelerate blockchain adoption The Zetochain platform

9 9

Zetochain pilots

10

The benefits of Zetochain for developers and organizations

11

How Zetochain will support new application development

12

Legacy Systems Integration

13

Hardware 13 Hardware Partners

14

Blockchain and Masternode Architecture

15

The key milestones for Zetochain development

17

The Zetochain 6-quarter roadmap

17

What differentiates Zetochain from its competitors?

18

Building a community: Zetochain education and outreach program

18

The ZetoToken Economy

19

The Zetochain ICO

21

The market opportunity for Zetochain

22

All about Zeto

23

Zetochain Team

23

Strategic Partners and Alliances

28

Financial Model

28

Conclusion Summary

31


Executive Summary Today’s supply chain is an unwieldy mass of links and players. Globalization means the connection points are spread further apart than ever before, and digitization has seen supply chain data proliferate hugely. In this complex, data heavy environment, lack of transparency and data integrity reign, and we’re seeing growing inefficiencies and wastage, as well as increasingly regular instances of food recalls and the development of a counterfeit drugs market. Solving the problems with today’s supply chain requires a streamlined, efficient system with trust at its heart. Blockchain technology has emerged as a disruptive technology that has the ability to transform the supply chain as we know it. Due to its decentralized nature, blockchain delivers transparency and trust by default. And as the technology becomes more embedded and understood, the development of dedicated supply chain applications will transform and invigorate the fragmented and unreliable supply chain. However, despite the promise that blockchain holds for the evolution of the supply chain, the technology itself is still in its relative infancy, particularly in the supply chain space. And there exists barriers to its mainstream adoption that need to be addressed if the technology is to gain a foothold in the supply chain market. There is a critical shortage of blockchain skills; many organizations lack in-house blockchain expertise and the cost of recruiting freelance experts is prohibitive. The technology itself is not well understood and there have been confusing messages

about its potential. There are also existing technical limitations which make scaling any solution complex and challenging, and due to its relative newness, there is a distinct lack of dedicated standards and policy frameworks. With its focus on an open, scalable ecosystem built on blockchain technology, the experienced team at Zeto will address these challenges. Zetochain will become the world’s first open-standards blockchain platform for the supply chain. The platform will accelerate the adoption of blockchain by enabling developers without blockchain coding expertise to rapidly blockchain-enable any supply chain data, and legacy hardware and software can quickly and seamlessly by integrated into the Zetochain platform. By empowering developers, the Zeto team aims to create a vibrant and dynamic Zetochain community that facilitates the rapid adoption of blockchain technology, and enables the technology to fulfil its obvious potential to transform the supply chain.


The problem with today’s supply chain Increased complexity leads to delays and inefficiencies As a result of globalization today’s supply chain has become fragmented, complex and unwieldy. An ever increasing population has led to rocketing demand for food and medicines, while rising operational costs have led to retailers and manufacturers expanding their search for suppliers to all corners of the globe. What we’re seeing is a dramatically inflated supply chain that’s creaking under the pressure; the average supply chain is now dealing with 50 times more data today than just five years ago. With so much data, processes and players, inefficiencies and delays have become a standard part of the supply chain. Shipping avocados from Mombasa in Kenya to the port of Rotterdam in the Netherlands can take as long as 34 days, 14 of those days are taken up by port authorities waiting for shipping information and government approval. Michael White, CEO of the Maersk and IBM joint venture deploying a blockchain-based electronic shipping system, cited one avocado shipment that involved 30 port and government officials, and 200 pieces of communications being shared between 100 people.

In the Port of Brisbane in Australia approximately 15% of all data in individual import transactions are duplicated almost 30 times. This duplication of effort creates operational inefficiencies and has a dramatic impact on accurate record keeping, leading to significant costs of as much as $450 per shipping container.

Multi-layered chain leads to lack of clarity and trust The multi-layered supply chain comprizing countless links and players has led to a blurring of the connection between each link. Transparency has been eroded as extra layers, processes and players join the chain. This in turn has created a lack of trust between suppliers and retailers as well as a breakdown in accurate data. According to a report by Tulane University in the US, an overwhelming majority (90%) of the 1,262 companies that filed conflict-mineral reports with US security

regulators in 2014 said they couldn’t verify whether their products were in fact conflict free.


Operational errors within the chain a key factor in soaring food recalls Food recalls are rising by 25% a year at an average cost to retailers of $10 million. While biological causes - Listeria, Salmonella and E-coli - are factors, more than half of recalls (56%) are as a result of operational mistakes including incorrect labelling, the presence of an undeclared ingredient or contamination during the production process. “This highlights the need for food producers to invest in ensuring the traceability of their products back through the supply chain,” says Dr. Antony Potter at Queen’s Centre for Assured and Traceable Foods.

Complex and opaque supply chain a breeding ground for counterfeit drugs According to the World Health Organization, counterfeit drugs cause 1 million deaths and cost the pharma industry $200 billion per year. Despite industry anti-counterfeiting measures, counterfeiters have become increasingly sophisticated in their manufacturing and packaging processes, and continue to find ways to infiltrate legitimate supply chains. Legislation such as the EU Falsified Medicines Directive (FMD) are taking steps towards shoring up traceability within the supply chain through the identification of pharmaceuticals at the unit package level, but this is an onerous and costly step for pharmaceutical manufacturers, and according to PwC has already cost manufacturers upwards of €500 million.

Fit-for-purpose supply chain required At a time when food demand is growing exponentially - it is expected to jump between 59% and 98% by 2050 according to Agricultural Economics - and the counterfeit drugs market continues to grow unabated, a fit-for-purpose supply chain is critical. Recalls, delays and wastage will need to be eliminated from the supply chain if suppliers and retailers are to meet this insatiable demand. A streamlined, efficient supply chain has the ability to dramatically boost global trade; an estimate from the World

Economic Forum suggests that reducing supply chain barriers to trade could increase global gross domestic product (GDP) by nearly 5% and global trade by 15%. But tackling the supply chain efficiencies is not a project that can be approached piecemeal, developing solutions that focus on individual links in the chain. For transformative change to happen, it will require a fundamental shift in the nature of the supply chain itself, a foundational change built with trust at its core.


How blockchain solves supply chain problems Whilst blockchain’s origins lies in the financial sector, the attention of developers has now largely turned to blockchain’s potential to radically transform other industries such as the supply chain; players including Cisco has halted research into developing blockchain applications for financial services and are now setting their sights on developing supply chain management applications for the blockchain. This represents a fascinating shift in the evolution of the blockchain and cements its potential in solving the supply chain challenges. And Cisco is not alone in identifying the supply chain as a key use case for blockchain, 63% of respondents to a recent

SAP survey said they consider the supply chain to be the most promising use case for blockchain

How blockchain is primed for supply chain disruption Blockchain’s unique characteristics - transparent, trustworthy and secure - make it a natural fit for the evolution of the supply chain. As a shared ledger, blockchain stores all records of transactions, making them accessible to all parties in the blockchain, while its distributed state solidifies its security. Unlike the one-way information flows that are typical between buyer, supplier and logistics, the blockchain’s shared ledger becomes a single version of the truth, letting all parties view information and events in the chain in chronological order thus reinforcing transparency and minimizing the potential for tampering with the data. IBM is bullish about the blockchain, saying it “will do for transactions what the internet did for information.” In a paper called “The Benefits of Blockchain to Supply Chain Networks” IBM illustrates the advantages of the blockchain: “The digital shared ledger is updated and validated with each transaction, resulting in a secure, perma-

Blockchain will do for transactions what the internet did for information. nently recorded exchange. The result is faster, permissioned and auditable B2B interactions between parties such as buyers, sellers and logistics providers.” This is reiterated and expanded upon by Stewart Bond, Director of Data Integration Software at IDC who highlights the shared single source of truth ideal that makes blockchain so unique: “One of the key benefits of blockchain technologies is in the immutability of the data in the chain. If the genesis block was created with trustworthy data, and each additional transaction is validated by network consensus, then in theory the current state of the chain can be trusted….establishing a high level of data integrity, thereby making data trusted, available, secure, and compliant for everyone connected to the blockchain network.”


Ultimately, within the supply chain sector, blockchain has the potential to guarantee end-to-end security, trust and proof of provenance. And the technology has the ability to revitalize existing trusted integration technologies like EDI, as well as providing the facility to incorporate data flows from newer supply chain technologies such as IoT sensors. Where blockchain is likely to shine initially is in allowing organizations to streamline inefficient processes within

the supply chain such as cross-border payments, post transaction settlements and provenance, according to Jessica Goepfert, IDC program director, Customer Insights & Analysis. These processes are highly manual and inefficient, requiring multiple physical actions between countless parties to complete, resulting in delays and inaccuracies. “These are areas of existing pain for many firms, and thus blockchain presents an attractive value proposition,” says Goepfert.

Traditional (non ICO) VC funding of blockchain reached

$1.3bn

by May 2018, surpassing 2017 total.

In an SAP survey

63%

of respondents said supply chain is the most promising use case for blockchain

Gartner forecasts the business value-add of blockchain to exceed

$31t

by 2030 and says blockchain is one of 10 Strategic Technologies IT leaders must factor into their innovation strategies.

The blockchain market size is expected to grow from $411.5m in 2017 to

$7.68bn billion by 2022.

Is there an appetite for blockchain? In this, industry research houses, investors and business leaders are united: there is a distinct place, and arguable need, for blockchain technology. Although the market is still in an embryonic state, market growth projections are noteworthy. IDC predicts worldwide spending on blockchain solutions will reach $2.1 billion in 2018, more than double the $945 million spent in 2017. That robust

pace of growth will continue through to 2021 when IDC expects total spending to hit $9.7 billion. Gartner, which has named blockchain as one of 10 Strategic Technologies IT leaders must factor into their innovation strategies, expects the business value-add of blockchain to exceed $3.1 trillion by 2030, and, according to Markets and Markets, the blockchain market size is


expected to grow from $411.5m in 2017 to $7.68 billion by 2022. These projections and predictions from respected industry houses are hitting home and investors are taking note. In the first five months of 2018 traditional (non ICO) venture capital funding of blockchain reached $1.3bn, surpassing the total raised during the 12 months of 2017. That appetite for blockchain is evident on the ground too; a SAP survey found that

92% of business leaders view blockchain as an opportunity. And we’re starting to see blockchain based developments taking shape around the globe. And yet, that same SAP survey showed that only 3% of businesses are currently using blockchain in production, and, according to a Cowen & Company survey, industry experts predict the technology will take at least 5.9 years to gain widespread adoption.

The barriers to blockchain adoption Despite the promise it holds and the interest it’s been generating, there are still significant stumbling blocks prohibiting mainstream adoption of blockchain.

Critical shortage of blockchain skills Blockchain was the fastest growing skill in Q1 2018 with blockchain developers who offer 3-5 years experience commanding salaries of $500,000 per year. Blockchain vacancies are growing by 6,000% per year and there are currently 14 blockchain developer positions available (many in financial services) for every one blockchain developer. With such a dearth of specific expertise blockchain development has stagnated. While organizations are seeing the potential of blockchain and are expressing interest in the technology, they are unable to implement it due to lack of experience in-house, or indeed independent, developers.

No clear understanding of blockchain Although we’re seeing increased interest in blockchain and its potential across industries, 60% of respondents to a RANE survey of Chief Compliance Officers, General Counsels, CFOs, CISOs, and CIOs across the financial services, consulting, healthcare, technology, manufacturing, legal, industrial, and security industries, said they have not yet adopted blockchain. Furthermore, of those who have not adopted the technology, approximately 40% said they either don’t understand the technology or they’re not clear of its benefits to their organization. As with any new technology, there is a certain degree of ‘insider’ language used to describe blockchain, such as mining, crypto, gas prices and blockchain slang like hodl. This vocabulary has yet to seep into the general vernacular, which in turn has led to confusion and arguably an attitude that the technology itself is too technical.


Current blockchain technologies are difficult to scale Scaling the blockchain is a perennial problem that technologists have been attempting to address for a number of years. Speeding up transaction times has proven elusive, but is absolutely necessary if the technology is to become mainstream. Several solutions are being trialled including the bitcoin-specific SegWit and Lightning Network, Raiden Network for Ethereum, sharding and Plasma. However, the success of these solutions is unknown, and many are still in the early stages of investigation.

Lack of standards and governance The “Wild West” is a term many commentators have used to describe the blockchain and cryptocurrency environment. The newness of the technology and its relatively unexplored potential means it lacks defined standards and policy frameworks within which players have to operate. This lack of standards is a critical issue for many organizations: 23% of respondents to a RANE survey cited a concern over lack of clear legal and policy frameworks governing blockchain applications, including half of those firms currently in the process of incorporating the technology, who say they still require additional understanding of security controls and protections before finalizing the implementation.

How Zetochain will accelerate blockchain adoption Zetochain’s vision is to become the world’s first open-standards blockchain platform for supply chain. Zetochain empower developers, embracing them from concept to delivery. Zetochain is a scalable, open, standards-based platform that makes blockchain adoption frictionless, even for legacy systems. This foundational layer

allows developers without blockchain coding expertise to rapidly blockchain-enable any supply chain data.

The Zetochain platform Zetochain delivers all the advantages of blockchain to developers and organizations using the programming models enterprise developers are already familiar with. The Zetochain platform will eliminate the need for developers to learn new

languages, to interact with cryptocurrency wallets or upskill in unfamiliar programming techniques.


Data published on the platform can leverage blockchain and Smart Contract capabilities with little more than an API call.

All data published to the platform is cryptographically signed and automatically registered on the blockchain with no additional developer effort.

Smart Contracts using common supply chain interactions can be provisioned from our dedicated library, configured using low-code tooling, connected to sensor telemetry and automatically validated by the platform.

Zetochain pilots Circle K Circle K, one of the world’s leading convenience and fuel retail companies, will work closely on a Zetochain pilot. Circle-K have over 15,000 locations worldwide and have food safety as one of their core pillars. As part of the pilot Zeto will use the Zetochain platform to create a track and trace application that will meet the requirements of their supply chain. Food Safety Manager Rob McEvoy, who has previously rolled out a number of innovative food safety initiatives, is now looking to further enhance food safety by monitoring product throughout the entire supply chain. Zetochain will transform current practices and methodologies in supply chain management, offering a level of transparency that will become an industry standard and bring unparalleled cost and time efficiencies to a hyper-competitive industry. Circle-K plan to be at the forefront of this exciting new food safety frontier.

“Blockchain represents a significant opportunity for Circle K to leverage a new technology to ensure food safety at every stage of the supply chain. Food safety is a core pillar for Circle K and working with Zeto allows us to implement and even design industry best practices in this area,” said McEvoy.

RMoni RMoni, a leading vendor of IoT hardware, pharma and food safety solutions will be launching a pilot on Zetochain with one of its customers. For the pilot, RMoni will upgrade its current IoT sensors to be Zetochain trusted and will build a solution using Zetochain API and SDKs. RMoni has been an IoT innovator for the past 10 years and has identified blockchain as the next disruptive technology to offer their customers. Zetochain provides RMoni with the tools and service they require to get to market quickly.


“We have existing customers interested in Blockchain but we had no pathway to securing a solution quickly. Zetochain was the perfect solution. They are dedicated to providing a platform that enables us to take advantage of Blockchain technology quickly. We can connect our sensors and develop our own Dapps, creating real value for our clients. Zetochain speeds up our adoption of the blockchain”.

TxMQ TxMQ, a leading enterprise solutions developer and IBM and Salesforce partner, has identified a number of opportunities within their current customer base that can be solved by building solutions on the Zetochain platform. “We feel very positive about the Zetochain value proposition and market opportunities. We have discussed the problems Zetochain solves with a number of our food and supply chain customers and we are committed to building a Zetochain solution that delivers real value for the supply chain,” said Chuck Freid, TxMQ CEO.

The benefits of Zetochain for developers and organizations The Zetochain platform offers immediate and tangible benefits to large and small organizations while at the same time allowing application developers to easily and quickly build new supply chain solutions that can be distributed through the Zetochain app store. For application developers: Zetochain provides low-cost, easy-to-use APIs, code-light and code-free solutions to build: to popular supply chain • Connectors software packages

•

New tools and applications that solve real-world business problems for supply chain

business models based • New on supply chain data and smart contracts, including:

–– service marketplaces –– automated shipping,

–– produced,

certified organic and anti-counterfeiting applications

For large organizations: Zetochain offers: integration with ERP and supply • Easy chain packages already in use “ready to go” solution for inte• Agrating IoT capabilities into supply chain solutions exchange hub for enabling • Data supply chain visibility beyond immediate suppliers and customers secure and immutable • Transparent, shipment and handling records to ensure compliance with applicable standards and regulations For smaller organizations: Zetochain provides: blockchain-based traceability • Aplatform for tracking incoming and

contracting

and payment solutions

–– B2B and end-customer provenance solutions such as sustainably

outgoing products easy on-ramp for automating • An shipping and receiving traceability through IoT


secure and immutable • Transparent, shipment and handling records to

to adopt new business • Opportunities models through smart contracts

ensure compliance with applicablestandards and regulations

How Zetochain will support new application development Zetochain will offer a complete platform for developers to build and deliver supply chain applications using Zetochain’s data publishing, IoT and blockchain-enabled capabilities. But capability is only part of the story: the next generation of supply chain applications will only materialize if developers can easily build on them. That’s why Zetochain will be built around embracing developers from concept to delivery. As well as providing well-documented programming interfaces leveraging industry data standards and flexible integration models, our goal is to deliver superior developer support, easy-to-understand pricing models and a dedicated app store where developers can market and distribute their applications to customers.

Low-Code Tooling Options Learning new languages and new programming paradigms is a slow, awkward process that can have an negative impact on productivity. Blockchain and Smart Contract development in particular represent an unfamiliar environment for enterprise developers - with a steep learning curve. Our range of low-code tools are aimed at helping developers to easily configure Zetochain’s blockchain and Smart Contract capabilities, and our library of pre-defined Smart Contracts can seamlessly be customized for specific requirements.

App Store The supply chain space is fertile ground for next-generation technology solutions; however, even ground-breaking applications need help to reach end users, and end users need an easy way to discover, acquire and deploy those applications. The Zetochain app store will provide a familiar mechanism for customers to discover and purchase applications developed by third parties that utilize the capabilities of Zetochain. And for developers, the app store offers an efficient way to connect with potential customers, handle payments and facilitate delivery to customers.

New Market Capabilities The supply chain digital footprint is an area of untapped potential for application development. As an alternative to premium-priced supplements to standard ERP software suites, in-house developers will be able to capitalize on the low-cost supply chain solutions tailored for smaller companies. Supply chain visualization speaks to a reduction in the amount of high-level contingency planning necessary for maintenance of an organization’s operational capacity. With real-time updates and other just-in-time capabilities, process refinement and diagnostics becomes simplified. Rating and vetting systems ensure that payload management is overseen by compliant, reputable personnel. Smart Contracts open the doors for direct engagement with supply chain channel partners while minimizing counterparty risk and legal costs.


Developer-focused Starter Kits and Accelerators Zetochain starter kits will be delivered on the tools that developers are already familiar with. We will be releasing code

samples and accelerators that demonstrate how to interact with the platform to perform common supply chain tasks. With this approach we aim to dramatically reduce the time developers need to spend on development architecture and help them to move quickly to the coding phase.

Legacy Systems Integration A key challenge in the advancement of supply chain capabilities is the fragmented, siloed nature of data within the supply chain. Each participant along the chain maintains their own records in their own systems, with different data formats and limited visibility beyond direct suppliers and customers.

blockchain-based data provenance and verification features. Applications can interact with Zetochain in real-time, or through batch publication. For full integration, Zetochain will support industry standard data schemas such as EDI and GS-1 as well as Zetochain’s native data format standard.

Zetochain’s goal is to eliminate this data visibility challenge by providing easyto-use tools to connect existing supply chain systems with Zetochain’s data publication and data management capabilities.

For organizations with investments in ERP or supply chain management applications, Zetochain will provide connectors to leading packages such as SAP. These connectors offer a low-code, easy-to-configure gateway for publishing supply chain data from existing enterprise systems to Zetochain. Using Zetochain connectors, organizations can maximize their supply chain investment by extending data visibility throughout the supply chain without the need for new investment in compatible systems.

Zetochain’s Supply Chain Data Exchange APIs streamline the process of connecting existing software packages to Zetochain. Using the Zetochain API, applications can easily publish data for distribution to supply chain partners, manage data visibility and take advantage of Zetochain’s

Hardware IoT promises to greatly enhance visibility into the supply chain through more precise asset tracking and providing access to granular data including product temperature at any point in the supply chain, specific cargo details, handling of items in transit, and even retail data. This information provides invaluable insights for all members of the supply chain and can be used to identify and tighten up processes, gaps and areas for improvement.

Zetohain is designed to make it easy to connect sensor hardware telemetry with supply chain data in a way that is secure, transparent and verifiable while making it easy to integrate with existing IoT infrastructures. Zetochain provides APIs for managing sensor hardware and connecting devices to the items and activities they monitor.


Using blockchain technology, IoT data can be cryptographically authenticated in a distributed network and stored in a manner that prevents data tampering. Combined with Zetochain’s permissioned access control system, IoT data can be made visible throughout the supply chain in a way that is secure and trusted.

Security Zetochain will enable customers to tap into industry-recommended security techniques when securing their sensor hardware.

Trust Zetochain will automatically apply blockchain-based data validation to IoT sensor data with no additional development overhead. We are also working closely with sensor experts to define a standard for trusted IoT devices that we will make an open industry standard.

Communication Supply chain IoT architectures vary widely in their capabilities. Sensor hardware may be installed in fixed configurations with reliable network connectivity, such as

the temperature monitoring sensors in a freezer or sensors designed to pick up low-energy Bluetooth of RFID tags used to identify products coming into a loading dock. In other cases, devices will be disconnected for varying amounts of time, for example during transport by air or ship. In still other cases, customers will have an existing IoT architecture that can publish sensor data in batches to Zetochain. Zetochain will provide support for a number of common communication mechanisms and connection schemes that developers can use to connect their existing sensor and IoT infrastructure to Zetochain. Devices can report data in real time, sync data when re-connected, or batch data for a period of time for ingestion.

Data formats and data transformation Sensor devices and IoT systems utilize a number of communication and data formats, which can make it difficult to ingest, normalize, and process data. Zetochain will introduce a native data schema standard for describing sensor data within the Zetochain platform. We will provide tools that enable applications that support EDI or GS-1 data standards to work with Zetochain with minimum code and configuration.

Hardware Partners Zetochain has been designed to make it easy to integrate existing hardware sensors and IoT devices. While many organizations have mature IoT sensor ecosystems already, many others are just getting started. For customers interested in building ground-up applications on Zetochain, or are expanding their IoT capabilities for applications built on Zetochain, hardware compatibility and ease of setup are going to be important differentiators when selecting hardware devices.

Zetochain will work with third-party device manufacturers to deliver Zetochain compatible hardware that offers easy setup and integration with Zetochain, enabling faster time to market for new device deployments. IoT and hardware specialist RMoni has plans to build environment sensors (temperature, humidity, CO2) and gateways that will adhere to the Zetochain standard.


Blockchain and Masternode Architecture

The Zetochain blockchain will be a Proof of Stake blockchain, with masternodes hosting the decentralized services required by the platform. The design goals for the Zetochain blockchain are that it must be: & Byzantine Fault • Decentralized Tolerant (BFT)

• • Secure • Performant • Capable of running smart contracts Capable of storing immutable data

The Zetochain blockchain will be built using Tendermint [https://tendermint. com/] for networking and consensus. Each masternode will host a suite of services required by the Zetochain platform and all communication between nodes will be done using Tendermint protocols. Using Tendermint will ensure the system is BFT.

End users, customers and interested individuals and entities will be able to host a masternode ensuring it is decentralized and has no single point of control or failure. We will aim to ensure nodes are geographically located across various regions, legal jurisdictions and hosting providers. A number of strategies are used to ensure data immutability: edit or delete APIs will be • No exposed by a masternode node has a datastore with a full • Every copy of all data being stored. Even if a datastore is corrupted on a node, other nodes won’t be affected and will still have a correct copy of the data. transactions are cryptographically • All signed. After a transaction is stored, changing its contents will result in its signature change being rejected by other nodes (the standard blockchain guarantee).


To ensure security, nodes will only allow access via encrypted, authenticated channels. Smart contracts will be used to ensure good node operator behavior. Node operators will be required to bond ZetoTokens into a security deposit and any misbehavior will automatically result in a fine and an automatic withdrawal of tokens.

The Zetochain blockchain will support thousands of transactions per second and a hot cache will be distributed on all masternodes to ensure timely responses to all API queries. In order to support smart contracts each masternode will run an Ethereum compatible virtual machine (EVM).

Masternode EVM

Tendermine Core & ABCI Application

MQTT Api Datastore ZetoNode Web Api

Masternodes are a key component of the Zetochain platform and each masternode will host a number of services:

• MQTT Server • Web API (w/ tendermint core and its • ZetoNode ABCI application) custom Ethereum Virtual Machine • An (EVM) • A cache • A datastore

Cache

Authentication To access any service provided by a masternode, the device sending the data, or an application requesting data will need to be authenticated. Each request will be signed by a unique private key to prove it is from an authorized user. A list of authorized users will be stored on the masternode and every wallet associated with the private key will hold ZetoTokens to ensure wide distribution and to cover the cost of transactions.

MQTT Server and Web API These two services will expose the APIs used by devices and applications to store and access data on the platform.


ZetoNode This service will contain the main platform logic and host the tendermint core and ABCI application. All incoming data and requests will ultimately be routed through this service. It will interact with the core datastore through the ABCI application and smart contracts running on the EVM. It will use a cache to ensure timely responses.

The Zetochain Ethereum Virtual Machine (EVM) The EVM is the engine that runs smart contracts on the Ethereum network. Zetochain will use its own custom Ethereum compatible, EVM (Burrow EVM), and use the Solidity program language for smart contract creation. While Solidity is not a “standard” programming language

familiar to many programrs, it is deterministic, an important property for blockchain development, and is the most widely understood smart contract language in use today. The Zetochain platform will provide a library of configurable pre-written smart contracts so the need for end developers to create their own contract will be minimal. Alternative smart contract VMs (WASM etc.) may be added in future releases to support smart contracts created for other blockchains such as Neo and EOS.

Cache and Datastore A data cache and persistent data store will also be hosted on each masternode. Each node will have its one copy and any data loss, corruption or malicious behavior will only impact the local copy.

The key milestones for Zetochain development The Zetochain 6-quarter roadmap

Month 1

MVP Supply Chain Data Exchange and IoT APIs implemented

Month 6

Zetochain Web Portal MVP

Pilot Hardware and Software Partners Announced Draft API specification for Supply Chain Data Exchange and IoT APIs released

Month 3

Blockchain-enabled data provenance features

Platform opened to Early Adopters; Smart contracts library

Month 12

Code samples and accelerators; SAP connector Full support for all IoT device communication mechanisms

EDI and GS-1 standards support

Month 9

Development starter kits on Heroku; Low-code smart contract tooling Full batch processing capabilities; App Store Preview Real-Time IoT communication support

Month 18

Platform Launch

Month 15


What differentiates Zetochain from its competitors? Many blockchain enthusiasts say the technology will work best NOT as a new system within private enterprise, but in its pure form — an open-source, publicly accessible platform powered by a global network of users (Cowen).

integrate legacy hardware and software seamlessly.

Meanwhile, Iliana Oris Valiente, cofounder of Deloitte’s Rubix blockchain team, sees an eventual world where a number of supply-chain-oriented private and consortium blockchains co-exist with public blockchains playing a role “to anchor and act as the trusted system relied upon by the consortium network participants.”

Unlike proprietary solutions, Zeto is an open platform. We provide the full toolset, based on open standards and protocols, that lets developers adopt blockchain now, with no lock-in to proprietary or patented technologies.

The team at Zetochain believe that in order to truly tackle the supply chain challenges, an open-access eco-system is the only approach that will create real disruption. Zetochain’s focus is wholly based on providing an open-access platform for global supply chains powered by blockchain. The goal is to securely connect developers, software and hardware companies, allowing them to easily create smarter supply chain applications and

Only Zetochain is truly open

Only Zetochain is developer focussed Unlike other “open” public blockchain competitors, Zeto is 100% focussed on developers and integrators, not end-user enterprises. Zeto offers developers a rapid route onto the blockchain, with easyto-use APIs and SDK, simple pricing and fast onboarding. Our goal is to become the world’s first open-standards blockchain platform to empower developers, embracing them from concept to delivery.

Building a community: Zetochain education and outreach program Zeto is committed to accelerating blockchain adoption through the successful rollout and implementation of Zetochain. That’s why we’re creating a wide-ranging outreach and education program focused on two key Zetochain user groups – developers and supply chain professionals. Our goal is to create a dedicated community and education team within Zeto who will work closely with developers and supply chain organizations to foster awareness of Zetochain and to

educate our core market through a range of activities.

For the developer community Create developer-focused online • forums existing tools to ease the • Leverage onboarding process

• Create a Stack Overflow site for FAQs


a developer-focused blog to • Maintain provide updates on news and trends expert forum to facilitate • Create discussions around advanced topics all open source develop• Conduct ment transparently using Github

For the supply chain community an online forum where supply • Create chain experts can discuss blockchain and supply chain related topics

online and classroom technical documentation and • Develop • Provide courses aimed at supply chain tutorials

•

Create online video courses and distribute them on platforms including Coursera and Udacity

a Zetochain certification • Develop program so that developers can highlight their Zetochain experience and organizations can identify certified developers with a recruitment partner to • Work help match certified developers with relevant Zetochain roles with the developer • Engage community by attending relevant conferences and events meet-ups and hackathons • Sponsor to facilitate knowledge sharing and collaboration within the developer community. together with industry stake• Work holders and partners and customers

professionals

with the community by • Engage attending major supply chain events meet-ups for supply chain • Sponsor community members supply chain and blockchain • Host webinars to highlight supply chain innovations and analyze supply chain issues a thought leadership • Develop campaign targeting business executives with educational videos, business case white papers, infographics with industry stats and proof points of real success stories. This will be delivered via blogs, speaking engagements, media campaigns and social media.

to host an annual user conference

The ZetoToken Economy ZetoToken is fundamentally a utility token, but it will also have uses within the wider Zetochain ecosystem. The Zetochain blockchain will use proof-of-stake to achieve consensus and require masternodes to handle requests and store data. All token holders will be rewarded for staking ZetoTokens. Masternode owners will be rewarded with ZetoTokens for processing requests.

The Zetochain token will be an integral part of the Zetochain authentication mechanism. All devices, and both legacy and new software systems wishing to integrate with Zetochain, will have a private key associated with each request. This key is also associated with a wallet, which is billed for each request made by the device or application. Zeto will also charge for access to Zetochain developer tools and services in ZetoTokens.


User pays in fiat and Zeto portal converts and loads users wallet with ZetoTokens

Hardware device signs request with private key.

Wallet associated with private key

User requests access to a DApp. Billed in tokens ERP System

Exchange used to convert fiat to tokens and tokens to fiat Masternode operator is awarded 95% of tokens for handling request. 5% are burnt.

APP

Developers using Zetochain tools and services are billed in tokens

For end users, access to the platform will be metered. A number of usage tiers will be available and partners will be charged every month based on the previous month’s usage. They will be billed in ZetoTokens. Our marketplace will make it easy for hardware vendors to accept payment for hardware in ZetoTokens. Zetochain will also make it easy to integrate the token with DApps in the Zetochain ecosystem. DApp developers will be able to utilise the token to charge for services, reward customers, incentivise good staff behavior etc.

The ZetoToken Economy

Token Demand 1. All ecosystem participants need tokens to communicate with the platform 1. All transactions will require tokens to purchase “gas” 2. Zetochain tools and services will use tokens as a payment mechanism 3. Third party DApps will use tokens as a payment mechanism 4. Hardware vendors will allow tokens as a payment mechanism


Zetochain and its simple pricing and service model

Software as a Service model

Simple monthly fee

No capex required

Monthly fee based on number of API calls by the software or hardware to the Zeto blockchain

The Zetochain ICO ICO Dates The Zeto team is working with a top four accounting firm to ensure we are taking a best practice approach to the ICO, both from a legal and regulatory perspective.

The Zetochain token sale will commence on September 3rd 2018 and will conclude on September the 28th.

Sale Duration: Sept 3rd to 28th Token Type: Ethereum ERC20 Purchase Method: ETH R&D and Product Development

Total Token Supply: 340M ZetoTokens Crowd Sale Supply: 150M ZetoTokens Pre-Sale: 40.8M ZetoTokens

Legal and Regulatory Compliance

Bounty: 8.5M ZetoTokens Private Investors: 24.7M ZetoTokens Reserved for Zeto: 116M ZetoTokens Price: $1/10 Tokens

Security and Auditing Overheads and Others

40%

5% 5% 5%

Token allocation

Customer Acquisition and Marketing

45%


The market opportunity for Zetochain At launch, Zetochain will initially focus on developers in the food retail and pharmaceutical sectors. These will include integrators, IoT hardware manufacturers and developers with concepts for dedicated supply chain software alongside extensions for the most popular supply chain systems. Developers lie at the heart of the Zetochain proposition. Through our comprehensive outreach and education program, as well as a targeted marketing and recruitment drive, we will solidify our commitment towards building a thriving blockchain community, focused on solving the supply chain challenge. Our plan is to: blue chip IT/business consul• Target tancies and attend exhibitions and • Sponsor events to emphasize the Zetochain

brand values of developer support and education out trade press advertising and • Take editorial coverage to strengthen Zetochain brand awareness and improve market understanding of blockchain the Zetochain team as • Establish industry thought leaders through active participation in relevant conferences and events, as well as producing regular blog posts and articles in strategic geographical • Engage recruitment Our initial focus on the food retail and pharmaceutical sectors builds on our success and partnerships in these industries with our market-leading IoT platform.


All about Zeto Zeto is an existing IoT market leader in the cold chain industry Founded in 2011, Zeto is an existing venture-capital backed IoT company. We build cloud-based SaaS solutions for the global commercial refrigeration industry. Our market-leading solutions combine Big Data analytics and IoT technologies to create a smart refrigeration management platform that helps clients including Lidl, Musgraves, Carrier, Circle K and Dunkin’ Donuts reduce costs and drive efficien-

cies with automated HACCP temperature monitoring and reporting. With Zetochain we’re taking this cold chain expertise and knowledge of the challenging retail environment and applying it to the wider supply chain. Our expert team has identified the blockchain as the foundational technology on which to build the Zetochain ecosystem.

Zetochain is supported by an experienced team Leadership Team

Stephen Slattery CEO Engineer and founder of IoT market leader Zeto. The open-access blockchain platform Zetochain is the next iteration of his vision to transform and optimize supply chain visibility.

Tom Kelleher Sales Director Has an MBS in management and 20+ years experience in international sales and marketing leadership roles. Formerly with Cadburys, Glanbia and Bimeda.

Jonathan Harrington CTO Led development teams for globally scalable platforms, including Nokia (next-generation publishing platform) and BSkyB (pricing service scaling to 11 million customers).


Leadership Team (cont’d)

Michael Slattery COO Engineer with 40 experience who foresaw the IoT revolution. Leveraged industry experience to co-found market leader Zeto, the industry’s first vendor-neutral cloud platform for refrigeration management.

Ronan Meagher Program Manager Brings a career’s experience in Tier-1 telecommunications to his work in program management. Directed rollout of Agile methods at Zeto, manages day-to-day operations and oversees key customer accounts.

Brian Daly Product Manager Formerly with Intel and EMC, brings a decade of experience in building software. Manages Zeto development team’s day-to-day work and ensures products align to customer requirements.

William Bradley CFO Highly experienced chartered accountant and company director with a successful track record in managing the financial function for both start-up and mature businesses.


Technical Team

Shane Breatnach Senior Engineer Formerly with Samsung and Big Fish Games. Provides strong technical leadership drawn from 15 years in software development. Led build of Zeto’s market-leading cloud IoT offering. AWS, Clojure, Java, Python.

Ryan Wray Senior Engineer Full-stack engineer formerly with Fidelity Investments. Worked across the full Zeto retail IoT offering from end-devices to UX. Strong capability in Solidity for blockchain smart contracts. AWS, Clojure, Java, .NET.

James Troy Software Engineer Crypto enthusiast and key part of the development team building and refining Zeto’s market-leading cloud IoT offering for refrigeration management.


Board Members

Kieran Moynihan Chairperson Global entrepreneur advising a number of handpicked high-growth companies, including Zeto, drawing on 30 years’ experience in international business development, sales, finance and M&A. Founded and raised $30m for telecoms pioneer Comnitel, which sold to IBM.

Dr. Liam Kelly Non Executive Director University microelectronics professor emeritus and serial entrepreneur. Led growth of two highly successful start-ups including LED disruptor Nualight, raising over $15m. Strategic guidance for Zeto including customer acquisition and funding.

Elliott Griffin Non Executive Director Chartered accountant and director of venture fund Business Venture Partners, a Zeto investor. Providing financial oversight and guidance on international expansion and corporate finance.


Advisors

Barry O’Connor

Eric Willis

Blockchain Advisor

Blockchain Advisor

Blockchain thought leader and speaker providing strategic and tactical advice on distributed ledger technology. Member of advisory team on proposed global ISO standard TC 307 for blockchain.

Founder of crypto fund Prechain Capital, focusing on early-stage blockchain ventures and Initial Coin Offerings. Key capability in building and scaling disruptive product offerings.

John Dennehy

Jeff Davis

HR Advisor

Supply Chain Advisor

Twenty-year internet and media veteran and early Bitcoin investor, now executive chairman of specialist IT recruiter Zartis. Working closely with Zartis to scale its talent pool in line with highgrowth expansion plan.

Previously with EMC and Lucent and served as Dell’s Senior Director of Engineering, pioneering systems to enable supply chain management. Highly experienced engineer with extensive Silicon Valley track record and global supply chain expertise.

Chuck Fried

Craig Drabik

Blockchain Advisor

Blockchain Advisor

CEO of TxMQ, an enterprise solutions developer with a successful track record in design and rollout of distributed ledger technology applications. Working alongside Zeto dev team to code, scale and implement core design of the Zetochain platform.

Leader of TxMQ’s Disruptive Technology Group, specializing in blockchain and distributed ledger applications. A specialist in multiple DLT platforms, Craig has been instrumental in the development of a number of blockchain products.

Tracey Coffey Food Safety Advisor Certified food safety auditor and trainer in working with Food Safety Excellence Ireland. Brings experience of major food supply chain retailers Lidl and SuperValu.


Strategic Partners and Alliances We have established a series of strategic partners and alliances with leading industry players including:

Financial Model Cost Projections Total ($)

6,016,000.00 272,000.00 280,000.00 296,000.00

Total ($)

5,088,000.00 272,000.00 280,000.00

Total ($)

4,896,000.00 264,000.00 240,000.00 208,000.00

296,000.00 2,368,000.00

2,800,000.00

Year 1

2,048,000.00

1,984,000.00

2,200,000.00

2,200,000.00

Year 2

Year 3

Overheads and Others (5%) Security and Auditing (5%) Legal and Regulatory Compliance (5%) R&D and Product Development (40%) Customer Acquisition and Marketing (45%)


Revenue Channels The following are the key revenue streams for Zetochain: and off-chain hosting • Masternode services

• Charge tx fees on fiat conversions for developer tooling / App • Charge store commision

• Hardware verification process • Developer certification and materials • Consultant services Community - Marketing of • Developer complementary services - Experts in value realisation • Events for the supply chain

Network Activity Projections

Partners

600

100

150

Year 1

Year 2

225 Year 3

350

Year 4

Year 5

Y

Masternodes 600

150

Deployment* 5 10

Year 5

Year 1

Year 2

25 Year 3

60 200,000 Year 4 100,000

Year 5

T P

(

Year 1

Year 2

Year 3

Year 5

Year 4


Network Activity Projections (Cont’d)

Masternodes Deployment*

200,000

600

150

5 100 Year 1 Year 1

Year 5

10 2,000 Year 2 Year 2

25 20,000 Year 3 Year 3

100,000 60

Year 4 Year 4

Year 5 Year 5

* Any hardware device, legacy system or new application using the Zetochain platform

* Any hardware device, legacy system or new application using the Zetochain platform

200,000

Transactions Per Annum

6bn

(requiring tokens)

3bn

Year 5

ng the Zetochain platform

3m

60m

600m

Year 1

Year 2

Year 3

Year 4

Year 5

Y


Conclusion Summary chain efficiency via block• Supply chain is an unrealized multibillion dollar opportunity dramatically accelerates • Zetochain blockchain adoption for software and hardware companies, even for legacy systems. Developers require no special skills or previous coding experience

is the world’s first • Zetochain open-standards blockchain to put developers first, from concept to delivery is supported by a seasoned • Zetochain leadership team, with aq proven IoT track record, an existing multinational customer base, and a growing number of strategic partnerships