{"id":4375,"date":"2018-01-18T21:44:27","date_gmt":"2018-01-18T21:44:27","guid":{"rendered":"https:\/\/get3dsmart.com\/Stagingsite\/\/\/?p=4375"},"modified":"2018-01-18T23:11:48","modified_gmt":"2018-01-18T23:11:48","slug":"3d-printing-another-block-blockchain","status":"publish","type":"post","link":"https:\/\/get3dsmart.com\/Stagingsite\/2018\/01\/18\/3d-printing-another-block-blockchain\/","title":{"rendered":"Will 3D Printing Add Another Block to the Blockchain?"},"content":{"rendered":"

For 3D printing to go beyond prototyping and make real money<\/strong><\/em> from end-use part production, large-scale digital manufacturing networks will need to be constructed. Once the infrastructure is in place, blockchain could play a big role in helping protect intellectual property and manage licensing and payment. But if used strategically, the cryptocurrencies enabled by blockchain could also provide a new source of funding, putting more capacity in the right places, faster. \u00a0\u00a0\u00a0<\/span><\/p>\n

Recently Kodak <\/span>announced<\/span><\/a> a major blockchain initiative. Their idea is to use digital ledgers to help photographers manage usage rights and get paid for their work. <\/span>Central to the plan are KODAKOne which will serve as an image rights management platform and KODAKCoin, a new cryptocurrency that will uniquely serve the photography profession.<\/span><\/p>\n

Kodak\u2019s stock nearly tripled after the announcement, raising their market value by over $150 million. But according to the company\u2019s CEO, Jeff Clarke, this wasn\u2019t just a gimmick to pump life into Kodak\u2019s ailing stock. In the press release, Mr. Clarke noted that photographers <\/span>have \u201clong struggled to assert control over their work and how it\u2019s used,\u201d adding that terms like cryptocurrency aren\u2019t just buzzwords, they \u201care the keys to solving what felt like an unsolvable problem.\u201d<\/span><\/p>\n

No matter how you cut it, blockchain is a buzzword and one that is creating short-term value for companies in many different industries. One extreme example is Biopix, which started out as an animal healthcare company, licensing and selling hormone solutions for the farm and livestock industries. In a pretty extreme pivot, the company was renamed RIOT Blockchain and changed its focus to become<\/span>\u00a0a strategic investor and operator in the blockchain ecosystem. In September, 2017 it was a $4 stock. By mid-December it topped $38 per share. It has since settled back down, trading today at under $17.<\/span><\/p>\n

Other examples are also easy to find. Long Island Ice Tea Company changed its name to Long Blockchain Corp and poof, its stock jumped nearly 3x, from $2 per share to over $6. Also, Hooters parent company, Chanticleer Holdings Inc., announced it would use cryptocurrency for its loyalty program and saw a sharp increase in stock value. Some have even (jokingly) <\/span>suggested<\/span><\/a> that IBM officially add blockchain to their company name.<\/span><\/p>\n

Blockchain & 3D Printing<\/h4>\n

What does any of this have to do with 3D printing? Well for starters I can think of a few companies in this industry that could benefit from a spike in their stock price. Maybe go with 3D Blockchain Systems or Stratasys Cryptocurrency?<\/span><\/p>\n

On a more serious note, blockchain and the cryptocurrencies it enables, do create some big opportunities for the 3D printing industry. In fact Deliotte envisions use cases<\/a> for blockchain throughout the product lifecycle. They refer to it as the “digital thread for additive manufacturing:”<\/span><\/p>\n

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Source: Deloitte University Press<\/p><\/div>\n

IP Rights Management<\/b><\/h4>\n

In short, here\u2019s how blockchain works. It provides a digital, distributed ledger that is fully documentable and attributable. Entries are permanent, transparent and searchable. Each new entry serves as a new \u201cblock\u201d in the chain. With cryptocurrencies like Bitcoin and Ethereum, it serves as the data and security layer.<\/span><\/p>\n

As the Kodak announcement alluded to, it can also play an important role in the management of intellectual property. Just like photographers, product designers also struggle with controlling the use of their work and ensuring they are fairly paid. In the past they would file for copyright, trademark and patent protection. When competitive offerings violated their IP, they had a choice to make. Allow it to happen, or use the legal means at their disposal to stop it.<\/span><\/p>\n

Usually that decision was based on the size of the infringement and the amount of publicity it generated. Sending a \u201ccease and desist\u201d letter is easy. Suing someone to get injunctive relief and damages is a much more expensive proposition. Most people and companies won\u2019t do it unless they see a potential return on that investment. Legal action against another company or a wealthy individual makes sense. They can pay.<\/span><\/p>\n

But with 3D printing, the barrier to entry is so much smaller. Individuals all over the globe have become \u201cmakers.\u201d In that environment, IP rights management and enforcement becomes much more difficult. As manufacturing becomes further democratized, the challenges are likely to escalate.<\/span><\/p>\n

Blockchain can help in several ways. First it can provide designers with tamper-proof evidence of ownership. Once the design is registered to a blockchain, that information cannot be removed or changed. <\/span>In theory, third parties, like service bureaus and retailers could see the complete chain of ownership of a work, including any licensing information.<\/span><\/p>\n

It could also help in the patent process. In most countries, the rights to an invention typically belong initially to the first person to file a patent (\u201cfirst-to-file system\u201d). The best way to do this is in the U.S. is through an initial patent application. In Europe and elsewhere, ideas are typically registered with a notary. If you\u2019re creating new inventions or code frequently, submitting every idea these entities can be impractical and expensive. Blockchain could provide an irrefutable way for inventors to document the date of their innovations, with far less time and cost.<\/span><\/p>\n

Licensing & Payment<\/b><\/h4>\n

Further, blockchain could support licensing agreements and payment. The technology already provides for smart contracts, which are agreements that can be automatically facilitated, executed and enforced. The terms are defined in advance, allowing parties to do business without administrative burden or unnecessary cost. In the case of 3D printing, that could mean licenses that are executed immediately whenever a design file is viewed, edited or manufactured.<\/span><\/p>\n

\"\"It can also be used to manage financial transactions. Consider Kodak for a moment. What they\u2019ve really announced is an Initial Coin Offering (ICO). ICO\u2019s started out as an unregulated way to raise capital for new cryptocurrencies, but now they\u2019re also being used to fund other ventures. In Kodak\u2019s case, it\u2019s even more complex. They won\u2019t receive any of the proceeds of the ICO, but they will create and benefit from a new market worth somewhere between $20 and $100 million. A company in their position could generate significant revenue for example, by charging transaction fees and serving as a currency exchange.<\/span><\/p>\n

It\u2019s not just established companies. Startups are also getting in on the act. Sirin Labs recently raised over $150 million with an ICO. Guess what they\u2019re going to make?<\/strong><\/em> A <\/span>smartphone<\/span><\/a> with special features for cryptocurrency enthusiasts. The company says the product will fill a need in a fast-growing market: a secure device that can simplify the use of blockchain technology across multiple applications. <\/span><\/p>\n

It makes my head spin.<\/span><\/p>\n

3D-Token<\/i><\/b><\/p>\n

Sirin isn\u2019t the only startup trying to leverage cryptocurrency to raise funds and build out their business model. One example in the 3D printing industry is 3D-Token. They created an ICO to build a blockchain-based network of 3D printers. The goal is to have over 1,000 nodes and 3,000 3D printers on their network, giving their \u201cNetwork Robots Workforce\u201d a capacity of 22 million hours of production time and the ability to output over 300 tons of workable bioplastics annually.<\/span><\/p>\n

Of course, in addition to serving as a form of currency exchange, 3D-Token plans to use the coins issued as part of their ICO as a form of payment on their network. Their Marketplace \/ Crowdfunding online platform will allow 3D-Token holders to \u201cexchange their tokens peer-to-peer,\u201d to buy capacity from the Network Workforce in order to complete print projects, and \u201cparticipate in other crowdfunded projects\u201d related to the 3D manufacturing world. Hmmm.<\/strong><\/em><\/span><\/p>\n

Moog<\/i><\/b><\/p>\n

Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems. The company is entrenched in several vertical markets, including aerospace, vehicles, marine, industrial machinery, alternative energy and medical equipment.<\/span><\/p>\n

Moog is both a consumer and supplier of additive manufacturing. Through their long-term involvement with additive technologies, they\u2019ve seen first-hand the power of a digital workflow. Moog recently announced plans to <\/span>capitalize<\/span><\/a> by building out their own digital manufacturing network. <\/span><\/p>\n

In their view these kinds of networks have the potential to support:<\/span><\/p>\n