How Can Blockchain Incentivize Recycling? DNP Group Collaborate on Eco-Friendly PoC

In an interview with DNP’s Junichiro “John” Yamashita, Lead Researcher for DNP Group, we learned about their recycling initiative developed on the VeChainThor Blockchain.

John from DNP Group discusses how blockchain can be used to encourage sustainable consumption practices.

DNP group is a multinational printing company from Japan. With over 10,000 employees, they have a diverse range of services that includes printing, packaging, decorative materials, electronic components, and information media supplies.

Recently I spoke with John, and he shared his vision for using blockchain for something new: social good. He talked about how DNP’s massive quantity of products and overall size was a major contributor to global waste, inspiring the team to look for innovations that encourage more sustainable waste management. As the manufacturer of around 1/3 of Japan’s plastic bottles, DNP hopes to make a substantial difference in consumer’s waste management habits. That’s how they came up with the idea for Time for Social Good, a collaboration in Singapore with VeChain and local franchise Coffee Break.

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According to John, the goal of the PoC was to show how blockchain can be used to incentivize recycling. Since the lining of disposable coffee cups can’t be separated from the actual paper, coffee cups are un-recyclable and end up in landfills, along with the plastic lids. Time for Social Good encourages coffee drinkers at Coffee Break in Singapore to remove and recycle the plastic lids before discarding the paper cup (Cold drinks sold in all-plastic cups can be recycled as well). They do this by having each cup tagged with a unique QR code linked to a blockchain ID. Users can scan the QR code, upload a selfie of themselves recycling the lid, and get rewarded with a Social Good Point. If users received 7 points during the two-week event, they would earn a bamboo flask (shown below) which entitles them to a discount on future trips to Coffee Break.

John praised blockchain for its ability to engage with consumers in an affordable way. Rather than having to install costly IoT waste bins to monitor recycling habits, DNP and Coffee Break can simply set up inexpensive collection boxes, or just use existing recycling bins. Blockchain’s ability to verify products is just the first step, with so many unexplored ways to extend the technology still to be discovered.

These inexpensive collection points gamify and promote the initiative for a fraction of the cost of IoT smart waste management solutions.

John believes that scattering collection points around the Ascent Building gamifies the experience, giving consumers the chance to earn Points by referencing a map connected to the QR code. By challenging shoppers to complete tasks, blockchain can catch the attention of consumers who might ordinarily be unmotivated to complete the recycling process. It also provides a verified record of the actions, allowing multiple businesses to interact in a trustless environment.

The Ascent Building is in Singapore’s Science Park, a premier hub for technology companies and businesses.

While the Proof of Concept was quite limited in both time and resources, the results were quite encouraging. More than 10% of Coffee Break’s customers took the time to recycle their plastic waste, a significant number when you consider the annual waste of a coffee chain. Just to gauge the potential here, it’s estimated that in America for example, people consume 400 million cups of coffee per day. Not surprisingly, the Proof of Concept attracted a lot of attention both in Singapore and Japan, where it was recognized at demo days to show off the innovative spirit of the corporation.

The Proof of Concept received immediate recognition at DBIC Demo Day in front of 100+ executives from dozens of companies in Tokyo.

For Coffee Break, more than 80 customers completed the 7-cup challenge and received their bamboo flask, proving that blockchain-based recycling initiatives can be a valuable marketing tool. Without needing a huge budget, blockchain can encourage repeat customers attracted to your brand’s promotions and commitment to social responsibility. Every interaction is a chance to engage with customers, providing a massive value in itself.

In the interview, John also discussed how he was introduced to VeChain through an event organized by the Digital Business Innovation Center (DBIC). VeChain’s Jason Rockwood and Sarah Nabaa had been presenting to a group including Sumimoto Life Insurance, when they were approached by the CEO of DBIC, who invited the pair to come speak to five Japanese corporations in Singapore to source blockchain solutions. At that meeting, they met John, and discussed various ways that blockchain could be mixed with sustainability initiatives. DNP is eager to integrate new technologies, especially ones that can impact the globe in a positive way.

John (middle) pictured with VeChain COO Kevin Feng (left), Sarah Nabaa, Ben Yorke (back) and Project managers Perkins Chen and David Wang (right)

For companies like DNP, blockchain is an area that requires a lot more exploration. Blockchain is well-known for the benefits it brings to finance and supply chain, but in reality there are many more complex use cases waiting to be discovered. Fortunately, guys like John are putting time into researching and evaluating how blockchain can not just be used for businesses, but also to improve environmental initiatives and contribute to social good.

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Embracing Blockchain: Direct Statement From China’s Top Leader Extremely Positive For the Industry

On Friday, October 25th, Chinese President Xi Jinping addressed the Central Politburo of the Communist Party of China at a committee studying the trends and status of blockchain technology. He emphasized that the application of blockchain technology will play an important role in new technological innovation and industrial transformation. He informed the audience, made up of the country’s top politicians, that China must take the blockchain as an important breakthrough for independent innovation of core technologies, clarify the main direction, increase investment, focus on a number of core technologies, and accelerate the development of blockchain technology and industrial innovation.

Make no mistake, a statement like this carries a ton of authority. When China’s top brass makes a explicit statement like this, the country’s top-to-bottom leadership must move quickly to fall in line. National committees, provincial and regional governments, state-owned enterprises, and ambitious corporations will all be clamoring to demonstrate their innovative spirit. Direct speeches on new technology aren’t handed out cheaply in China, and usually affect only issues of utmost national importance, or at least ones that will have a substantial influence on the economic development of the country. This puts blockchain in a group of essential technologies such as 5G and AI that China is committed to being a global leader at.

He also stressed that China had a good foundation for blockchain technology, a nod to the existing companies and project that have been developing solutions within the existing regulation framework. Major companies like Tencent, Alibaba, China Mobile, and China Unicom have been testing and developing solutions for the last few years, along with a handful of public chains such as VeChain.

President Xi listed many examples of how blockchain could be put to good use. Included were many that could improve living conditions for Chinese citizens, such as smart cities, smart traffic solutions, and elderly care. Still, the bulk of the example use-cases sounded all too familiar for those that make a habit of following VeChain: food safety, medical treatment and health, product traceability, energy and power solutions, as well as other public solutions. Without a doubt, this is great news for every blockchain project in China, but few would argue that VeChain’s position within the country’s industrial landscape is anything but the strongest, and they should surely reap benefits from this announcement over the mid to long term.

From a short term perspective, this is clearly a green-light for companies to stop testing the waters and take blockchain solutions more serious. A ripple effect of regional policies should soon follow, reinforcing President Xi’s message. It’s often noted that a lack of clarity on a technology’s regulation can be more damaging than harsh regulations, so it will be a relief to blockchain projects everywhere to finally see a positive backing.

But instead of asking “What” perhaps the smarter question would be “Why?” While certainly blockchain technology is deserving of this outward show of positivity, it does gloss over the negatives that the technology brings, such as fraud, money laundering, and private cross-border transactions. With Mark Zuckerberg currently being dragged through congressional hearings in America, one can’t help but marvel at the timing. Comparatively, China is committed to developing new technologies that improve the lives of their citizens, while America is fixated (perhaps rightly so) on stifling Facebook and their cryptocurrency Libra.

One prominent attendee was the Chairman of China’s Standing Committee, Li Zhanshu. Li, often regarded as the third-most powerful politician in the country, is all too familiar with blockchain after visiting DNV GL’s Norwegian headquarters this summer. DNV GL has been focused on a number of solutions that improve the public welfare of the country, such as the Digital Low Carbon Ecosystem, that rewards people taking environmentally-friendly actions. Few companies will be more excited than DNV GL China, whose Business Assurance department led by VeChain Steering Committee member George Kang has a whole range of blockchain-based solutions ready for adoption.

Either way, for a country hurtling towards the 4th Industrial Revolution, China has made clear their intentions: Support blockchain and put it to use as soon as possible. VeChain investors will be delighted to see that the compliance-first, enterprise development policy falls right in line with what Xi Jinping is ordering the entire country to do now. But hey, who could have predicted that?

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Video: Recapping the Wanxiang Blockchain Summit

The 5th Wanxiang Blockchain Summit, as part of Shanghai Blockchain week, had a much different theme, as professionals sought to show off the results of blockchain implementation within their industries.

VeChain was well-represented, and their establishment within the industry was highly noticeable. DNV GL and Deloitte both spoke highly of the public chain technology, describing it as an essential part of enterprise blockchain solutions.

Summit organizer Wanxiang is one of the premier blockchain organizations in China, with close ties that span a number of different industries.

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DNV GL’s Renato Grottola Presents Keynote on Blockchain in Traceability, San Marino, and Digital Assurances using VeChain

Renato Grottola’s keynote at the Shanghai Wanxiang Blockchain Week was succinct, leaving audiences without any confusion: Mainly that DNV GL is past the “Proof of Concept Era” and ready to bring the blockchain to businesses. He began by explaining how decentralization and disintermediation was reducing the trust gap and posed a threat to their business model, a model with a 150 year history and client-base in over 100 countries. He then explained how DNV GL began developing their Digital Assurances to provide trust on “the border” of the physical and digital world. This includes verifying that product IDs and data uploaded to the blockchain is accurate and compliant.

Grottola stressed that this was already in production, while referencing their solutions for the wine industry in Italy.

Blockchain plays a major role in DNV GL’s plans to digitize their certification services. Grottola explained how DNV GL was developing digital wallets and identities to be a gateway to DNV GL’s digital services. This digital certification service is scheduled to be online later this year, with the full wallet services being released to over 900,000 customers in January of 2020. DNV GL is authorized to provide certifications on a wide range of industries, including maritime, gas & energy, healthcare, and management systems. Grottola is a big believer in circular ecosystems. His work strives to align a large number of companies working together to create mutual benefit and value. Customers share in this value creation, by gaining benefits that can be contributed back into the ecosystem – a system that needs to be backed by blockchain-based trust. A great example of this is the ecosystem being built in San Marino, a region with progressive leadership and a small but flexible population. VeChain’s public blockchain will be used to encourage citizens to become carbon neutral, by rewarding them with tokens (nicknamed ‘Greenies’) for activities such as public or electric transport, ride-sharing, low-energy and water consumption, solar power installation, and recycling. This system, aimed at tourists as well as citizens, will allow residents and visitors to redeem tokens for a number of goods, discounts, and additional services. This ecosystem will be developed by DNV GL, but will require the participation of a number of large corporations that have yet to be announced. Grottola also stated his belief that blockchain and circular ecosystems are essential for helping with the UN’s Sustainable Development Goals. Circular ecosystems, like the one shown in San Marino, are being developed by VeChain and DNV GL in other key regions, including China and some European nations. They have the ability to activate and engage citizens, providing incentives to meet the SDGs, rather than just relying on traditional government driven initiatives. Grottola concluded with a list of things DNV GL learned on their 2 year journey with blockchain. He stressed the importance of collaboration, and warned that the internal debates between “alt-coiners” and “one-coiners” was extremely detrimental to the entire industry. There was little doubt that among an international audience with many top industry leaders – few were anywhere near the level of DNV GL.

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5 Examples of Industries Adopting Blockchain

With real-life enterprise adoption being highly-sought after these days, we briefly listed a few examples of how VeChain has been integrating their solutions across multiple industries around the globe. This list represents just a modest selection of the enterprise use-cases VeChain is developing.

Number 1: Automotive Industry

BYD

VeChain is a major player in the automotive industry. Partnered with the top EV producer in the world, BYD, VeChain is a terrific example of how public blockchains can benefit enterprises. By integrating the low carbon digital ecosystem into BYD vehicles, BYD can reward customers who utilize the environmentally-friendly functions on their hybrid and electric vehicles. The public chain maintains trust for both companies and consumers, and both will benefit from this mutually beneficial arrangement.

BMW

BMW also sees the value in VeChain’s public blockchain. They created VerifyCar, which records key vehicle data to prevent mileage-fraud and create an immutable record of vehicle maintenance.

Even more impressive is their roadmap, which includes using public chains for supply chain, p2p car sharing, autonomous driving, data markets, and autonomous taxi fleets. While VeChain is not the only blockchain company working with BMW, their current position, industry partners, and strong enterprise track record should ensure they are a major partner of BMW for years to come.

Number 2: Supply Chain & Food Safety

DNV GL’s My Story

Source: DNV GL’s 2018 Annual Report

My Story is a great example of how public blockchains are being used to guarantee authenticity, track key supply chain data, and use IoT sensors to achieve IIoT-standard data acquisition. Currently, the My Story client list includes a number of beverage and food companies throughout Europe, but plans to expand worldwide, utilizing DNV GL’s extensive portfolio of clients. By focusing on sustainability, My Story is using public blockchain technology to reward enterprises that demonstrate ethical practices and corporate responsibility.

Bright Code

Similar to My Story, Bright Code is a collaboration between VeChain, DNV GL, and of course Bright Foods, China’s second largest manufacturer of food products. Launching with a pilot that tracks milk from farm to consumer, Bright Code keeps an immutable record of the supply chain, verified by an independent third party (DNV GL), allowing customers to purchase with confidence. In addition, DNV GL is building a Confidence Index that mathematically assigns a rating to participants in the Bright Code ecosystem. This includes manufacturers, distributors, as well as retailers.

Number 3: Clothing

Haier’s Internet of Clothing (IoC)

Launching as part of Haier’s next-generation IIoT platform, the world’s leading appliance producer is integrating RFID and QR code tags into a number of major brands of clothing. VeChain’s public blockchain will be tasked with verifying millions of garments per year within this massive ecosystem.

Swell & Innersect

Image

At the Shanghai Innersect fasion, art, and lifestyle expo in December of 2018, VeChain placed 30,000 NFC chips on various garments. By focusing on verifying authenticity, VeChain’s blockchain technology allows clothing manufacturers to better connect with customers through immutable data. Notable styles included Edison Chen’s Terracotta Warrior Air Jordans, pictured below.

Reebonz

One of Singapore’s largest luxury goods retailers, Reebonz’s B2C marketplace boasts over 1000 luxury brands. They plan to use VeChain’s blockchain technology to verify products sold on the marketplace, giving them a competitive advantage over other South-East Asian retailers.

Number 4: Certification

Deloitte & DNV GL

DNV GL & Deloitte are two of the biggest audit and risk-management companies on the planet, and they provide certification services for thousands of clients around the globe. By creating a digital record of these certifications, customers can prove their facilities, equipment, networks, and supply chains are compliant with ISO standards.

Number 5: Cloud Security

BIOS Middle East

As the largest cloud provider in the middle east, BIOS ME is an original believer in the utility of VeChain’s public blockchain platform. Their security platform, BIOS Secure, is integrating blockchain technology to record key events, threats, and vulnerabilities. By having an immutable record, clients have unwavering trust in the platform’s ability to monitor their networks. The data is then used by BIOS ME to analyze and optimize their cybersecurity offering, enabling them to better protect customer data. BIOS ME’s wide range of clients include healthcare, energy, finance, retail, and PetroChemical enterprises across the Middle East and Africa.

Note: Not listed but confirmed by VeChain or VeChain’s partners include Finance, Healthcare, Gas & Energy, as well as a few other critical industries.

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