Graph Blockchain

Providing Blockchain Solutions Across Multiple High-Growth Markets

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Overview

Graph Blockchain Inc. (CSE:GBLC) is a blockchain development company that provides state-of-the-art private blockchain solutions for corporations and government agencies. The company uses a five-prong business model based on developing channel partnerships, direct sales, a three-stage sales process, solution portability and being able to replicate their solutions in high-growth markets.

The company’s blockchain solution is private and customizable to ensure that all transactions are recorded, transparent and immutable and can give their clients real time business intelligence and database management. Their technology uses IBM’s (NYSE:IBM) Hyperledger blockchain technology and Bitnine’s AgensGraph database which includes a control tower and user interface dashboard development capabilities. The technology also uses a graph database, which allows the data on the blockchain to be computed faster than using a traditional or relational database. The blockchain and graph database components combined create the high performance core engine that drives the company’s platforms, which has four patents pending in both the US and South Korea.

Relational databases allow users to identify and access data in relation to another piece of data in the database as the data is often organized into a table. However, when multiple people are trying to access different forms of the data it can slow the system down. Graph Blockchain’s graph database, on the other hand, organizes and condenses the data into graphs, which help increase the speed that the data can be retrieved even with multiple users operating at the same time. It also provides some cost competitive advantages over the traditional database.

The company intends to implement this technology into several high-growth markets. They are particularly interested in penetrating the cannabis and logistics industries as there are multiple challenges that both markets are facing that blockchain technology can be applied to.

Graph Blockchain was originally the product of a joint venture between DataMetrex AI Limited (TSXV:DM) and Bitnine Global Inc. The team at Graph Blockchain has access to the technology and networks of both companies, which help drive Graph Blockchain towards success. Both Graph Blockchain’s management team and its founders notably hold approximately 65 percent of the company shares.

Company Highlights

  • Graph has access to the networks, resources and technologies from its founding companies DataMetrex and Bitnine Global.
  • Implementing a five-pronged business model
  • Targeting the global cannabis and logistics markets, among others.
  • Can transfer their proven technology between sectors.
  • Developed relationships with several well-known companies, such as LG, Samsung, and IBM.
  • Filed four patent applications on their proprietary technology in the US and South Korea.

Growth Strategy

Graph Blockchain’s success so far can be attributed to the execution of their five-pronged growth strategy.

Channel partnerships

Through Graph Blockchain’s founding partner Bitnine and their channel partner IBM Global Asia, the company’s prototype or Proof of Concept (PoC) projects have been initiated through this model. Channel partnerships have allowed the company to access relationships that would otherwise be difficult to attain.

Direct sales

By using a “land and expand” strategy, Graph Blockchain is able to sell their blockchain solutions across subsidiaries within large enterprises and conglomerates.

Three stage sales process

The company’s revenue is generated from three sources: initial consulting, prototype development and systems integration and maintenance. Within the initial consultation phase, the client’s business needs and objectives are matched to a private blockchain solution and a plan for its development is formulated. A small fee for the plan may be charged to the client at this point.

After the initial consultation, Graph Blockchain will draw up a contract that outlines the development of the solution, where all the needs of the client are highlighted including the implementation and maintenance plans. Depending on the scale, the prototype development contract can vary between C$300,000 and C$1 million.

The final stage of the process is the on-site implementation of the solution for the client. The implementation is overseen by a Systems Integrations (SI) specialist and user interface developer who oversees the integration as well as monitors and maintains the solution. A systems implementation fee can range up to C$2 million, in addition to a software as a service (SaaS) model fee that is structured as a percentage of the overall contract and includes the system integration.

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Solution portability

The company intends to bring their various solutions to similar companies in Canada and the US. Graph Blockchain is able to prove that they have a proven working model that will be beneficial to companies looking to integrate blockchain into their businesses.

Ecosystem in high-growth markets

Graph Blockchain can also develop ecosystems for high growth markets, such as the medical cannabis market. The ecosystems are comprehensive and are able to connect to all the stakeholders within the network through a transparent dataflow record. The data is shared in the permissioned blockchain and can be transparently audited. Overall, Graph Blockchain can provide stakeholders with a trusted network and an efficient supply chain.

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Target Markets

As per the company’s growth strategy, Graph Blockchain is targeting a number of high growth markets, including the cannabis, global logistics, electric vehicle (EV) and insurance industries. Graph Blockchain has ensured that their technology and solutions are able to cross between industries to ensure a seamless product for all their clients regardless of the industry they’re operating in. Of the four markets that Graph Blockchain is interested in penetrating, the cannabis and logistics markets are high on their list of priorities.

The global cannabis market

The global legal cannabis market is expected to reach $146.4 billion by the end of 2025, according to Grandview Research. The market is expected to continue its growth as more countries legalize their recreational and medical markets. As the market continues its rapid upwards trajectory, there is growing regulatory interest in ensuring that cannabis products are safe for consumers. This is leading to research and development in the technology sector with a goal of producing solutions that can test and track cannabis from seed to sale.

The global logistics market

The global logistics market is expected to reach $15.5 trillion dollars by 2023, according to a study by Transparency Market Research. The industry is continually exploring for  ways to keep up with the changing marketplaces and new technology, especially since FedEx, UPS, CEVA Logistics and Deutsche Post DHL heavily control the market.

The global EV market

Due to multiple clean energy initiatives around the globe, EV sales are expected to reach $2 million by 2019, according to Forbes. By 2030 Germany plans to eliminate the use of gas and fossil fuel powered vehicles, while countries such as India and Norway are committing to selling only EVs and hybrids in the same time frame. Overall, the market is expected to rise to 30 million units sold by 2030 as EVs become cheaper to produce compared to internal combustion engines.

The global insurance market

The global insurance market has been experiencing a downtrend in certain insurance categories in North America and has been growing overall in Asia, most notably China. The market overall is expected to rise by three to four percent between 2017 and 2019.

Partnerships & Clients

As per the company’s growth strategy, Graph Blockchain has developed a varied portfolio of partnerships and clients from numerous sectors with subsidiaries of major multinational companies.

IBM

In February 2018, Graph Blockchain entered into a definitive agreement to develop a large-scale graph database and blockchain solution prototype in partnership with IBM for a Korean conglomerate in an electric and utility project. The solution will assist in analyzing charging stations and the prototype is valued at approximately $400,000.

KB Life Insurance

Graph Blockchain’s agreement with KB Life came as a referral from IBM once the company completed certain milestones for them. Those conditions were met and Graph Blockchain has completed the first phase of the prototype for KB Life Insurance.

Hanwha

In February 2018, Graph Blockchain entered into a definitive agreement with Hanwha, an eco-friendly and comprehensive energy company, to develop a large scale solution prototype in partnership with IBM for a Korean conglomerate for an electric power and utility project. The solution will assist in the analyzing of EV charging stations. The value of the project is approximately $400,000.

The project will use all of Graph Blockchain’s unique intellectual property (IP) which provides a way of organizing, analyzing and displaying blockchain transactional data in near real time. The graph database technology being developed can process blockchain data up to 1,000 times faster than traditional methods from seven transactions per second (TPS) to 7,000 TPS. Additionally, the information can be displayed much more quickly and effectively.

KTNET

In August 2018, Graph Blockchain signed a MOU with the Korean Trade Organization (KTNET) to develop and implement a blockchain-based electronic trade services platform for KTNET. KTNET was established in 1989 by the Korean government and is funded by the Korean International Trade Association (KITA) to provide automation services for the export & import sector through a paperless trade infrastructure.

KTNET has been instrumental in helping the industry generate US$5.57 billion annually. The trade system links approximately 97,000 customers and trade-related organizations, including trading companies, banks, customs brokers, shipping companies, insurance firms, forwarders, and bonded storages. KTNET has digitized 614 types of export & import documents in the G2B and B2B sectors and can process approximately 370 million cases of paperless documents.

Samsung

In June 2018, Graph Blockchain secured a prototype contract with a division of Samsung (KRX:005930), one of the world’s largest manufacturers of mobile phones and smartphones, for a value of C$300,000. A month later, Graph Blockchain commenced development of the prototype solution for Samsung.

LG

In August 2018, Graph Blockchain signed a contract worth C$300,000 with LG (KRX:066570) to build a private blockchain solution for its global logistics platform. LG is a multinational company with 119 global subsidiaries and is the world’s second largest television manufacturer. The company is comprised of four business units: home appliance and air solutions, home entertainment, mobile communications and vehicle components.

“I am thrilled to share this news with our shareholders, as this represents our second significant contract with a multi-billion dollar, multi-national conglomerate in the logistics space,” said Graph Blockchain CEO Peter Kim. “Securing contracts of this nature further supports our position as a trusted solution provider in the blockchain database management market for global enterprises.”

Management

Peter Kim — Chairman & CEO

Peter Kim has over 18 years of experience in financial services and capital markets, having been licensed to provide full-service investment advice both in the US and Canada. During his tenure serving as Head Institutional Trader at several Canadian based investment banks, Kim had a demonstrated history of improving liquidity for small and mid-cap companies, in conjunction with successfully raising capital, through equity, debenture and derivative private placements. He is experienced in working with both private and public companies through all stages of financing, including seed rounds to IPO’s, and has developed strong relationships with institutional asset managers, hedge fund managers, as well as wealth management teams and investment advisors at the major Canadian banks.

Niv Majar — CFO

Niv Majar is an experienced finance and accounting professional with a background in financial reporting, assurance services, and corporate finance. He started his professional career at Ernst & Young LLP, where he was a manager in the national standards group prior to joining a multinational manufacturing partner to the world’s largest retailers and brands. Majar is a Chartered Professional Accountant (CPA), CA who achieved recognition on the prestigious 59-member 2012 UFE National Honour Roll.

David Posner — Director

David Posner has been a consultant to Quinsam Capital Corp. since December 2017. Posner served as Chief Executive Officer and President of Nutritional High International Inc. He has also served as an Acquisitions Manager of Stonegate Properties Inc. in Canada and Oklahoma. He served 8 years as the Managing Director of Sales & Acquisitions for Maria Chiquita Development Company since 2005.

From 2004 to 2007, he was a partner in a private investment group involved in the acquisition, rezoning and re-positioning for sale of land holdings in Costa Rica and Panama. He brought “Hempen Gold”, the first hemp-infused beer to Canada. He has been the Chairman of Nutritional High International Inc. and Director of Nutritional High International Inc. Posner is a Director of The Lineage Grow Company Ltd., Capricorn Business Acquisitions Inc. and Aura Health Corp. He served as a Director at The Tinley Beverage Company Inc. from October 2015 to February 2017.

Todd Shapiro — Director

Todd Shapiro has been a top rated Toronto Radio Show host and a familiar voice on Canada’s airwaves for over 18 years. Working for SiriusXM and broadcasting to the world through his popular Podcast (won best new Podcast on iTunes in 2014). Shapiro’s past and current clients include Chrysler/Dodge/Jeep, Pizza Pizza, Sony Pictures, Subway Restaurants, Huggies Pull-Ups, Intact Insurance, Mene Jewelry, E & J Gallo Winery, among others. He currently serves as an Honorary Chair for the Road Hockey To Conquer Cancer for the Princess Margaret Cancer Foundation which has raised millions of dollars for cancer research.

Shapiro also continually offers up his hosting services including opening up his show for promotion for numerous Charities including, The Fight To End Cancer, CAMH’s One Brave Night, Tweed Collective, Future Aces, Movember and the Canadian Mental Health Association.

Key Technical Personnel

Justin Bae — Sr. Director of Technology

  • Has developed, planned and managed projects with various organizations including government agencies and educational institutions in Information Technology for over 17 years
  • Currently completing his Information Technology Engineering Ph. D. degree
  • Justin’s primary research includes traversal performance of Blockchain and use cases of Blockchain technology as Databases.

Stephen Kim — Director of Technology

  • Software Engineering Ph.D. degree
  • Has been involved with national research projects, and work for government agencies in privacy information protection
  • Current body of work includes Hyperledger Fabric analysis, Distributed Ledger Technology (DLT) research, Business Process Re-engineering (BPR) and solution Good Software (GS) certification.
  • Primary research is visualization analysis of blockchain for performance improvement.

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