Decentralized​ ​ManufacturingCreating​ ​the​ ​world’s​ ​first​ ​peer-to-peer​ ​manufacturingsupply​ ​chain​ ​and​ ​incentivized​ ​token​ ​system​ ​adapted​ ​forpublic​ ​and​ ​private​ ​blockchainsV10​ ​-​ ​November​ ​10,​ ​2017“The​ ​best​ ​way​ ​to​ ​predict​ ​the​ ​future​ ​is​ ​to​ ​create​ ​it.”​ ​-​ ​Peter​ ​Drucker,​ ​Next​ ​Generation​ ​ManufacturingTable​ ​of​ ​ContentsRegulatory​ ​Strategy 5Abstract 51.0​ ​Industrial​ ​Revolution​ ​4.0​ ​Where​ ​Manufacturing​ ​Technology​ ​Meets​ ​Global​ ​Demand 61.1​ ​SyncFab’s​ ​Contribution​ ​to​ ​the​ ​Industrial​ ​Revolution​ ​4.0 72.0​ ​Braving​ ​the​ ​Burdens​ ​of​ ​Today’s​ ​Manufacturing​ ​Processes 102.1​ ​High​ ​costs​ ​related​ ​to​ ​procurement​ ​brokers​ ​and​ ​agents​ ​when​ ​sourcing​ ​materials 112.2​ ​High​ ​minimums​ ​for​ ​production​ ​because​ ​of​ ​time​ ​spent​ ​on​ ​finding​ ​the​ ​rightmanufacturing​ ​suppliers.​ ​Data​ ​regarding​ ​perance​ ​track​ ​record,​ ​quality,​ ​and​ ​size​ ​ofcontracts​ ​between​ ​purchasers​ ​and​ ​manufacturers​ ​remain​ ​in​ ​silos. 112.3​ ​Difficulty​ ​seeing​ ​manufacturer​ ​capacities​ ​and​ ​capabilities​ ​to​ ​achieve​ ​economies​ ​of​ ​scalewithin​ ​the​ ​supply​ ​chain 122.4​ ​Difficulty​ ​tracking​ ​progress​ ​along​ ​the​ ​supply​ ​chain​ ​when​ ​purchasers​ ​andmanufacturers​ ​confront​ ​delays,​ ​or​ ​need​ ​to​ ​resolve​ ​problems​ ​in​ ​real-time​ ​throughout​ ​theproduction​ ​process 132.5​ ​Loss​ ​in​ ​labor-hours​ ​to​ ​inefficient​ ​procurement​ ​processes 132.6​ ​Security​ ​concerns​ ​about​ ​protection​ ​of​ ​intellectual​ ​property 143.0​ ​SyncFab’s​ ​Pathways​ ​​ ​to​ ​Decentralized​ ​Manufacturing 153.1​ ​Re-shaping​ ​supply​ ​chain​ ​management​ ​through​ ​a​ ​public,​ ​direct​ ​peer-to-peer​ ​P2Pmanufacturing​ ​ecosystem 153.2​ ​Incentivizing​ ​Change​ ​in​ ​Supply​ ​Chain​ ​Management 163.3​ ​Smart​ ​Manufacturing​ ​Blockchain 173.4​ ​Smart​ ​Contracts​ ​for​ ​Transparent​ ​Procurement​ ​Processing 193.5​ ​Smart​ ​Business​ ​Model​ ​for​ ​Decentralized​ ​Supply​ ​Chain​ ​Management 194.0​ ​MFG​ ​Utility​ ​Token​ ​Incentivizing​ ​Blockchain​ ​Buy-in 214.1​ ​Incentivizing​ ​the​ ​Manufacturer​ ​Bidder 224.2​ ​Workflow​ ​for​ ​Purchaser​ ​Bids​ ​on​ ​Smart​ ​Manufacturing​ ​Blockchain 232/634.2.1​ ​Tiered-Rewards​ ​for​ ​Bids 244.3​ ​Incentivizing​ ​the​ ​Purchasers 244.4​ ​Workflow​ ​and​ ​Distribution​ ​for​ ​Manufacturers 254.5​ ​Transaction​ ​Fee 264.6​ ​More​ ​Potential​ ​Uses​ ​for​ ​MFG​ ​Tokens​ ​Future​ ​Builds 264.7​ ​MFG​ ​Economic​ ​Model 264.8​ ​Loyalty​ ​Pool​ ​Transaction​ ​Turnover 275.0​ ​Technical​ ​Overview 285.1​ ​SyncFab​ ​Plat​ ​Web​ ​2.0 285.2​ ​Example​ ​of​ ​Parts​ ​Procurement​ ​Workflow​ ​Using​ ​SyncFab​ ​2.0 295.3​ ​SyncFab​ ​Plat​ ​Web​ ​3.0​ ​and​ ​the​ ​DApp​ ​Decentralized​ ​Application​ ​Smart​ ​Contractsand​ ​Smart​ ​Manufacturing​ ​Blockchain​ ​Planned​ ​Build-Out 315.3.1​ ​Identity​ ​Contract 325.3.2​ ​Purchase​ ​Order​ ​Contract 325.3.3​ ​Payment​ ​Contract 325.3.4​ ​Account​ ​Contracts 325.3.5​ ​Insurance​ ​Contract 335.3.6​ ​Production​ ​Contract 335.4​ ​Example​ ​of​ ​Smart​ ​Contracts​ ​Procurement​ ​Transaction​ ​Workflow 335.5​ ​More​ ​Streamlining​ ​of​ ​Procurement​ ​and​ ​Transaction​ ​within​ ​SyncFab​ ​Features 355.6​ ​Example​ ​of​ ​Decentralized​ ​Procurement​ ​Transaction​ ​Workflow 365.7​ ​Premium​ ​Features​ ​Planned​ ​for​ ​Future​ ​SyncFab​ ​DApp​ ​Future​ ​Build-Outs 375.7.1​ ​Application​ ​Program​ ​Interface​ ​API 375.7.2​ ​Machine​ ​Data​ ​Feed 375.7.3​ ​Public​ ​Data​ ​Feed 385.7.4​ ​Connection​ ​to​ ​Logistics​ ​Providers 386.0​ ​Competitive​ ​Analysis 397.0​ ​Roadmap 413/637.1​ ​Milestones 417.2​ ​Funding​ ​Roadmap 438.0​ ​MFG​ ​Token​ ​Distribution​ ​Launch 448.1​ ​Token​ ​Distribution​ ​Event 448.2​ ​Bonus​ ​Incentives 458.2.1​ ​Industrial​ ​Revolutionary​ ​ETH​ ​500​ ​Presale 458.2.2​ ​Hardware​ ​Innovators​ ​Exclusive​ ​Presale 458.2.3​ ​Public​ ​Presale 458.2.4​ ​Main​ ​Public​ ​Sale 468.3​ ​Token​ ​Distribution​ ​Plan 468.4​ ​Partnership​ ​Adoption​ ​Pool 488.5​ ​Funding​ ​Breakdown 488.6​ ​MFG​ ​Token​ ​Distribution​ ​Smart​ ​Contract 508.7​ ​Reference​ ​Ethereum​ ​Smart​ ​Contract​ ​Standard 509.0​ ​Risk​ ​Factors 5110.0​ ​Team 5310.1​ ​Smart​ ​MFG​ ​Tech​ ​LTD 5310.2​ ​SyncFab​ ​Team 5410.3​ ​Advisory​ ​Board 5911.0​ ​Changelog​ ​-​ ​White​ ​Paper​ ​Versions​ ​​ ​Edits 624/63Regulatory​ ​StrategyTheteambehindtheMFGis currently workingwithlegal counsel toensurethattheMFG Token​ ​Distribution​ ​Event​ ​is​ ​fully​ ​compliant​ ​with​ ​all​ ​applicable​ ​federal​ ​and​ ​state​ ​securities​ ​laws.AbstractThrough public-private partnerships with manufacturers at the local, regional and national levels, SyncFab’s Smart Manufacturing Blockchain will advance efforts to decentralize manufacturing via a public, peer-to-peer ecosystem, powered by the MFG​ ​Utility​ ​Token.This document examines current burdens facedby small tomid-sizedenterprisesworking within the manufacturing supply chain, and provides acomprehensiveset of solutions to engageisolatedandinaccessiblemanufacturers, wideningtheirinter-industrynetworksand encouraging​ ​collaboration​ ​to​ ​meet​ ​global​ ​production​ ​demands.By collecting quality dataabout today’s opaquemanufacturingsupply chainandmakingit public, SyncFab’s plataims tomakethesupply chainmoretransparent, efficient, and sustainable.ThepaperhighlightsthedevelopmentofSyncFab’sdecentralizedapplication,theMFGUtility Tokenwhichincentivizesstreamliningofbiddingandprocurementprocesses,anddetailsthe upcoming​ ​MFG​ ​Utility​ ​Token​ ​Distribution​ ​Event​ ​token​ ​sale.Blockchainandsmart contractsserveasthewayforwardintotheIndustrial Revolution4.0, creatingeconomiesofscaleandpotentiallyaggregatingsupply.Decentralizedmanufacturing will maketheindustrymoreaccessible,secureandeconomicallysoundoreparticipants in​ ​a​ ​direct​ ​peer-to-peer​ ​P2P​ ​ecosystem.This document contains forward-looking statements, subject to risks and uncertainties that​ ​could​ ​cause​ ​actual​ ​results​ ​to​ ​differ​ ​materially.5/631.0​ ​Industrial​ ​Revolution​ ​4.0​ ​Where​ ​ManufacturingTechnology​ ​Meets​ ​Global​ ​DemandThe United States and China account for more than a third of the world’s gross domesticproductGDP,andtheircombinedGDPdominanceisexpectedtocontinue into 2050, especially if their industries make the transition to newmanufacturing processes. Manufacturing and trade gains signal growthfor global economies as a whole, accordingtheInternationalMonetaryFund.Accordingtoastudyperedby PWCandsharedbytheWorldEconomicForumin2016-Companiesfromallsectors acrosstheglobeareembracing“Industry4.0”,orbusinessinthedigitalage.Aboutone thirdof2,000companiessurveyedin26countriesalreadyratetheirlevelofdigitisation as high, andthisvalueisexpectedtoriseonaveragefrom33to72by2020. In SouthAfrica, thecurrentlevel ofdigitisationandintegrationisexpectedtorisefrom 27​ ​to​ ​64​ ​by​ ​2020.ForgingintotheIndustrialRevolution4.0,U.S.manufacturingcompanies95ofwhich areindependent,small-tomedium-sizedshopsmustsolveissuesthatcurrentlyhinder production, andfindwaystoaggregatetheircapacitytohandleglobaldemandmore efficiently.Significantadvancesinrobotics,sensors,bigdata,artificialintelligence,andaugmented realityhaveconnectedthedigitalandphysicalrealmsofmanufacturingthroughrobust and​ ​reliable​ ​networks.Withthesetechnologies, integratedproductionandpurchasingprocessesoperating seamlesslyalongthesupplychainwouldsavetimeandresources;improveefficiency; and​ ​increase​ ​scalability​ ​and​ ​security.Demand for services that support this potential global exchange of data, and its transactionofbothdataandcontractsbetweenbusinessesfueltheexpansionofthe Internet​ ​of​ ​Things​ ​IoT​ ​and​ ​the​ ​Industrial​ ​Internet​ ​of​ ​Things​ ​IIoT.6/63As​ ​an​ ​industry​ ​leader​ ​said“The Internet of Things has already set in motion the idea of a fourth industrial revolutiona new wave of technological changes that will decentralize production control​ ​and​ ​trigger​ ​a​ ​paradigm​ ​shift​ ​in​ ​manufacturing.”11.1​ ​SyncFab’s​ ​Contribution​ ​to​ ​the​ ​Industrial​ ​Revolution​ ​4.0SiliconValley-basedSyncFabaimstoharnesstechnologiesandconnectwiththe IoTandtheIIoTtoprovidepurchasersandmanufacturerswithhighqualitydata that​ ​would​ ​streamline​ ​processes​ ​along​ ​the​ ​supply​ ​chain.Connecting purchasers with manufacturers in the IIoT through its business-to-business B2B SaaS ecosystem, SyncFab creates a public, peer-to-peer ecosystemwhereby purchasers canfindcompanies capableof advanced machining of on-demand precision parts production and engage participantspassionateaboutimprovingefficienciesinthesupplychain.While thegovernmentbuilttheInternetARPANET, SyncFabbelievestheIIoTwillbe builtcollaboratively, throughpublic-privatepartnershipsofwhichSyncFabhas ed.Suchcross-sectorpartnershipswillcollectandcombinebestpractices and​ ​share​ ​wisdom​ ​from​ ​multiple​ ​perspectives.Inventors, innovators, and designers enter aninteractive, cloud-basedportal where a growing network of certified machine shops and advanced manufacturingfacilitiesaremappedbyseveralcriteria,suchas,whoislocaland clean.​ ​ 2With SyncFab’s curatedandadaptiveservices, companies attemptingtoshift theirmanufacturingprocessestohigh-techsmartfactories,andthoseexploring ways to optimize their “cost-to-serve” process lowering overhead costs per 1​ ​The​ ​Internet​ ​of​ ​Things​ ​and​ ​the​ ​future​ ​of​ ​manufacturing​ ​|​ ​McKinsey​ ​....http// ​Accessed​ ​3​ ​Sep.​ ​2017.2​ ​ISO​ ​50001​ ​Energy​ ​Management​ ​Standard​ ​|​ ​Department​ ​of​ ​Energy.​ ​​https//energy.gov/ISO50001​.Accessed​ ​3​ ​Sep.​ ​2017.7/63customeraccount canfindsolutionssuchassourcing,trackingandorganizing precision​ ​parts​ ​production​ ​and​ ​improved​ ​procurement​ ​systems.Arecent report foundthat U.S. companies spentanestimated20billionin 2012,andareforecastedtospendapproximately500billionby2020onsmart technologies.3Inthe2016Forbes’ Manufacturer Outlook, 32of companies surveyedsaid theircorporatestrategylargelyreliesonintegratedtechnologiesviatheIIoT.See Chart​ ​Putting​ ​Technology​ ​in​ ​the​ ​Supply​ ​Chain.4These​ ​forward-looking​ ​companies​ ​are​ ​the​ ​customer​ ​base​ ​for​ ​SyncFab’s​ ​services.Essential toSyncFab’s Smart ManufacturingBlockchainwill betheuseofthe MFGUtilityToken,afirstofitskindtoincentivizecommunityuserstoembrace blockchaintechnology. Coretotheblockchain’sadoptionisasharedsenseof trustbetweenpurchasers,developersandmanufacturersbuiltonapublicand more transparent supply chain system, where small to medium-sized manufacturerscanaccessablockchainandbeasupplierinspaceswherethey are​ ​currently​ ​obscured.Forexample,tocompensateforworkdoneonRFQscreatesmoreresponsesto the just-in-time needs of supply chain purchasers and buyers. Purchase managers cut through trust issues and delays with blockchain’s inherent transparency​ ​into​ ​cost​ ​and​ ​quality​ ​control.With the MFG Token’s launch, SyncFabserves as anearly adopter, protocol developer and integrator of Smart Contracts into the manufacturingsupply chainblockchain.TheMFGTokenwillbeutilizedfirstlyonSyncFab,secondlyon SyncFabssoontobedevelopedSmartManufacturingSmartContractEthereum Blockchainandultimatelyadoptedbynewandemergingpartnermanufacturing supplychainblockchainsusingSyncFabsdevelopedblockchainsmartcontract 3​ ​Defining​ ​And​ ​Sizing​ ​The​ ​Industrial​ ​Internet​ ​-​ ​Wikibon.27​ ​Jun.​ ​2013,http//wikibon.org/wiki/v/Defining_and_Sizing_the_Industrial_Internet​.​ ​Accessed​ ​10​ ​Sep.​ ​2017.4​ ​Global​ ​Manufacturing​ ​Outlook​ ​-​ ​KPMG.https// ​Accessed​ ​3​ ​Sep.​ ​2017.8/63protocolsortheirownwiththeindustrysfirstMFGTokenSmartContract-based incentive​ ​mechanism.TheMFGTokenwill beintegratedontheSyncFabplatwhichhasastrong network launchpad built out from public-private partnerships. Though it’s designedtoserveapublic, peer-to-peer SmartManufacturingBlockchain, it’s utilityisdesignedtobecomplimentarytothirdpartystandalonesolutions,such asthosefuturesupplychainblockchainswhicharemoreinward-looking,private enterprise​ ​based​ ​supply​ ​chain​ ​blockchains.Figure​​ ​​1​ ​Putting​ ​Technology​ ​to​ ​work​ ​in​ ​the​ ​supply​ ​chain.55​ ​Global​ ​Manufacturing​ ​Outlook​ ​-​ ​KPMG.https// ​Accessed​ ​3​ ​Sep.​ ​2017.9/63Theshiftinbusinessstrategywithintherevolutionisdrivenbycompaniesand manufacturers alike to streamline an efficient procurement and production process​ ​to​ ​reduce​ ​overhead​ ​costs​ ​and​ ​increase​ ​revenue.2.0​ ​Braving​ ​the​ ​Burdens​ ​of​ ​Today’s​ ​ManufacturingProcessesIndustrial manufacturing in the U.S. steadily rose, with growth forecasted at 5 compoundedannuallyinto2018. In2014,anestimated1.4trillioninexportedgood