WHITEPAPER March 2019 - CogniPet
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WHITEPAPER
March 2019
1
ABSTRACT of leaving them alone, it will be best to keep
them. In spite of the individual reasons for
Over the years, humans have lived to keeping pets, loyalty tends to be the common
cohabitate in common environments with reason of all pet lovers. Whether small or big,
everyone having someone to call a friend or a pets like dogs and cats tend to stay true and
family. While distance between friends and loyal to their owners. Much more, they try to
family served as an issue at one time, the protect their owners by giving them signs of
development in science and technology has impending danger.
filled the gap and given room to computers
and mobile devices that can be used to As the demand for pets increases, the pet
connect with others in different geographical industry continues to grow larger than ever
locations. However, societal trends have thereby contributing to the world’s economy.
indicated that there may remain an open Beyond breeding, close attention is now paid
human need even when it seems like all has towards adequate sheltering, feeding and
been solved. This is evident in man’s interest to even the provision of toys for these little
keep animals as pets, much more to be creatures. Amongst others, people are
regarded as a family member. However, some beginning to invest in the technology, food,
people still wonder why pets are kept and health care and education sector of the
made to be part of the family or why there are industry. Market reports have stated that in
even laws guiding the keeping of pets. 2018 alone, Americans will spend over $70
billion USD on pets. The American Pet Products
People keep pets for different reasons, but Association also stated that the pet care
mainly for companionship for family or industry is a $100 billion USD industry and as
themselves. Some people find themselves of now it is still growing.
living alone, some grow up to live abroad, far
from their friends and family members while a In previous years, ‘baby boomers’ accounted
significant few just find it difficult to relate for the largest segments of dog, cat and bird
easily with others. With pets like dogs and cats, owners. However, current data has shown that
people can get the affection they need and millennials who are regarded as ‘Gen Y’ have
consequently fight boredom. Without having supplanted ‘baby boomers’ as the largest
to think on how to start conversations with group of owners of these pets. Some even
people around, pets serve as perfect delay marriage plans or decide not to give
replacements. Much more, pets encourage birth because they see pets as one that can
socialization with others. It can be unusual to play the role of a child. They prefer to spend as
meet people for the first time and talk to them much as they can on their pets. They spend
so freely. While that may happen, it is mostly in time gathering a wealth of information on how
rare cases, having a pet around can make to cater for their pets. Some have been
things easier for people meeting for the first reported to celebrate birthdays for their pets.
time as they can place their attention on the They are willing to spend on anything that will
cat when they are short of words. During aid in maintaining a comfortable and healthy
documented interviews, pet lovers have stated life for their pets. Just like parents see the
that they tend to feel compassion towards money they spend on their children as a non-
these beautiful and nice creatures. So instead discretionary spending, pet owners see the
2
money they spend on their pets as important it be deleted. Also, the incorporation of
irrespective of its effect on other expenses. artificial intelligence gives room for biometric
means of authenticating an ownership claim of
Whilst there is no doubt that the industry is
any pet. CogniPet™ removes the guesswork
advantageous to humans and to the overall
by helping pet owners get the information
economy of the world, pet owners and
needed in the purchase of a pet, as well as put
breeders have begun to lodge complaints in
pet industry sectors under scrutiny thereby
regards to the health of their pets. Often, the
validating service providers and mitigating
expenses incurred in purchasing pets is high,
mismanagement.
but pet owners then face further costs in terms
of providing food and health care. More so, CogniPet™ incorporates an intelligent
breeders find it hard to get healthy and marketplace with blockchain backed data
certified dogs from fellow breeders since not designed to reduce the stress of every pet
all breeders are professionals. In addition, in owner. CogniPet™ envisions a space where
regular cases, pets end up leaving their pet owners can receive adequate education on
comfort zones only to lose their way back pet species, training on how to handle their
home thereby causing a great loss for owners. pets, advice on catering for their welfare, as
While different identification means have been well as guidance on how to locate trusted
put to place, the inability to have a single vetted local services for their pets. CogniPet™
profile of all pets has caused an irretrievable strives to eliminate the age where knowledge
loss for owners who have formed emotional of the pet industry is only known to service
bonds, and invested their time and resources. providers by incorporating an Augmented
These difficulties have continuously caused Reality system to allow owners to determine
potential pet owners to doubt breeders and the ways in which to relate with their pets. With
other sectors involved in ensuring that pets CogniPet™, breeders can also validate what
live their lives to the satisfaction of their pets they buy as they will be able to verify the
owners. pedigree of their dogs, as well as seeing if the
dog registration certificate given by the
Therefore, there is the need to provide a
company who sold to the breeder is real or
solution to these problems in order to sustain
not.
the industry and even sustain the lives of these
seemingly endangered pets. CogniPet™ is CogniPet™ incorporates an Ethereum based
developed as a pet company that aims to solve ecosystem to provide transparency to data that
pet oriented problems through the use of can be used to mitigate problems that can
blockchain technology and artificial affect the origin and lineage of pets and the
intelligence. With decentralized technology interests of their owners.
and an incorporation of smart contracts,
activities can be traced until the pet reaches
the owner. Much more, lost cats, dogs and
other pets can more easily find their way when
their information is situated in an inexhaustible
ledger. Information saved on this ledger
cannot be manipulated by a third party nor can
3
THE PROBLEM their pets, they too may end up in the hands of
illegitimate doctors or extorters who request
Since the time humans began to see the huge amounts of money for something very
importance of keeping pets, different minimal.
companies have begun to show interest in the
industry. Different organizations made their Market studies have stated that about 40
services known and with a good marketing percent of pet-related expenses goes to food;
strategy, people ended up requesting their however, pet owners and breeders still
services. encounter difficulty in ascertaining the best
brand for their pet. In 2007, the industry was
Now, a family who desires to add a dog to the significantly affected when it was discovered
family gets excited with the plans of bringing that part of the global supply chain was
in a pet; however, they are encumbered with contaminated. The contamination affected
questions like: most brands due to the fact that the cause was
melamine crystals in the wheat gluten
• What tag or identification is required and
delivered by a company based in Asia, which
mandatory for our dog?
eventually led to the deaths of pets across
• Should we get a dog from a dog breeder Europe and North America. Though it was not
or an animal shelter? the fault of the downstream companies, pet
• How do we find a verified dog breeder? owners lost the trust they had developed in
• What vaccines or check-ups do we need them.
to make for our dog?
Some brands have been able to recover from
• How can I find my dog again when he is the effect of the tainted supply, but smaller
lost? brands have found it hard to stay in business.
• How do we know the best food brand? Even recently, some companies have been
accused of using cheap ingredients, bad
preservatives and even carcinogenic additives
They have plans to get a dog, but many times
in pet foods. Although the Agricultural sector
cannot go further because of these issues.
advised owners who still have issues with
Whilst friends or neighbours can advise, ingredient quality to make homemade pet
market reports of the industry have shown that food, most pet owners are busy people who
owners end up regretting some of their do not have the time to spend on a process
decisions. For instance, if the family is advised that will be so time-consuming. Much more,
to get a tag for the dog, there is no certainty difficulties may arise in knowing the right
that the tag will not be removed if the pet goes measurements or not being able to obtain
astray. In terms of deciding whether to get a specific ingredients. Even if they do, a lot of
dog from a breeder or an animal shelter, it may money may be spent purchasing ingredients
be difficult to ascertain the origin of the dog; from manufacturers who can trace the root of
animals from shelters often lack a documented every provided ingredient. Even then, not all
history and some unscrupulous breeders will domestic market tags on ingredients are
forge certificates. Since most pet owners trust trustworthy as some may have been shipped in
their pet doctors in taking care of the health of from another part of the world. Owners end up
4
having to choose between two uncertain • Brands involved in the food supply do
experiences. not actually facilitate the production
process but collaborate with unreliable
Pet owners are not the only ones experiencing
companies which produces bad food.
difficulty in the pet industry. Breeders also find
it difficult to find established breeders with • Some of the regulatory declarations are
healthy, fully checked and certified dogs. They not well enforced in the food sector.
are faced with problems of knowing the history • Premium companies over process the
of the breed they want to buy, authenticating ingredients used in producing the food
the validity of the certificate given by the thereby making it difficult to detect
breeder who wants to sell as well the health problematic ingredients.
status of the pet. No matter how much they try,
they may not be able to ascertain if the pet had Following recent surveys, other problems
received all mandatory vaccines at the seem to be situated with some pet breeders,
required time. and they include:
Another major problem associated with the Forgery of Certificates
industry is the ineffective system of regulatory
Without paying too much attention on the
bodies. While regulatory bodies have been
authenticity of certificates, buyers accept a
charged with the responsibility of monitoring
large amount of forged pet documents that
the supply chain, their duties have been
contain fake information. Much more, pet
ineffective in keeping contamination out. Just
passports, emblems and stamps e.g.
like the food industry, the lack of transparency
Federation Cynologique internationale (FCI),
within the pet food industry makes it difficult to
United Kennel Clubs International (UCI),
determine the origin and composition of
Verband für das deutsche Hundewesen (VDH)
ingredients. It will therefore be difficult to get
are falsely produced. These false sellers end
any accurate information on pet food.
up driving up the price of animals with forged
The following points are highlighted in a documentation without initiating doubts from
report by the Cornucopia Institute, which unsuspecting buyers. According to the reports
educates farmers and pet owners on pet food, derived from the pet trade market, legal puppy
further revealing the damage that has been traders have been affected, as “mafia” traders
caused within the industry: have taken over the trading market using
illegal means. It has been stated that illegal pet
• Some pet owners prefer to go for cheap trade is the most profitable illegal business
products only to end up using the money after illegal arms dealing and drug trafficking.
saved to save the life of their pets. Buyers end up buying mixed breed instead of
• The most common cause of death in what they thought were purebred or pedigree
these pets are gastrointestinal disease, animals.
cancer, obesity and heart disease. This
deaths are mostly as a result of poor food
diet.
5
Fake Inoculation Non-transparent Agreement
Since there is no standardized way to
This is not only common amongst breeders
determine the truth value in the claims of
but also government organizations. Without
breeders, many pet owners end up buying
verifiable agreement policies in place, most
pets that are not inoculated thereby exposing
deals end with smiles, or even a handshake.
them to diseases. Usually, pet owners fail to
Documents tend to be destroyed, donations to
notice this until the pet experiences parasitic
the industry tend to be hidden and tax
infection, hereditary disease or even infectious
activities are kept hidden forever.
disease which may lead to its death and/or
consequently affect other pets in the shelter Cruelty to Animals
and in the pet owner's house. While there have been certain laws on how
pets must be treated, some people still see
Pedigree Certificate
them as subjects of abuse. Some even go as
Before buying pets, it is advisable to know the
much venting their anger on animals. Usually,
ancestral history of the pets. Since breeders
these abusers are difficult to find since they try
know pet owners will often request this, they
to erase traces that may lead to them.
may end up providing incomplete histories.
Pet owners on the other hand simply place
their confidence in the breeding capability of
the breeder and may not bother to check
references.
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THE SOLUTION found. In many cases those who find them
euthanize them.
As these problems emerge in the industry
different means have been put to place to help Although there currently exists no perfect
ensure that these problems are solved. solution to the seemingly unending problems
Technology experts in the industry have tried within the pet industry, CogniPet™ aims to
different means of solving these problems incorporate the advancements in blockchain
using the latest and advanced technology. technology and Artificial Intelligence to
However, results have shown that many provide lasting solutions to the problems
provided solutions prove either ineffective or experienced by both pet owners and pet
partially effective. Fortunately, some breeders.
introduced technologies have helped in Blockchain Technology
solving problems like reuniting lost pets with
Blockchain technology was developed to
their owners. One of these innovations is the
support and protect the usability of digital
introduction of a microchip. While collars were
currencies. While the first digital currency was
previously used as a means of identifying lost
developed to solve problems associated with
pets, a rice-sized technological device which is
fiat currency, its effect would not have been as
known as a microchip has replaced the
pronounced if it had not been developed with
ineffectiveness of the dog tag.
a technology that could provide security from
This microchip is usually installed in the pet for the openness of the internet. Though some
easy identification. It works by making use of have regarded cryptocurrency as fraudulent,
Radio-Frequency Identification Technology continuous involvement of people and the
(RFID) to make it easy to read the stored smartness in which the market is being
information of the pet in the installed operated has shown that cryptocurrency may
microchip. With RFID, the id number of the be the actual economic revolution the world
dog saved in the microchip can be searched in needs. In fact, it has been shown that losses in
a registry to access information on the pet the world of cryptocurrency are not based on
which includes the owner, contact address, the the weakness of the underlying blockchain
pet’s name and the pet’s veterinarian. While it technology on which it is developed but on
seems like this microchip has saved a lot of the manipulative strategies employed by those
stress, there are still difficulties associated with involved.
its use. Amongst others, the main problem is
Blockchain technology is a distributed and
that not every manufacturer accommodates all
decentralized list of records of all verified
types of developed chips. So, during scanning,
blocks in a public virtual space. In essence,
a chip may not be well scanned, especially one
blockchain technology is a continuously
developed abroad. Furthermore, for a chip
increasing public ledger that stores all
scan to be effective, the chip must be part of
transactions initiated and completed within its
the registry. However, there is no single
zone. In blockchain technology, specific nodes
registry for all chips in the world. Hence, if a
serve as those in charge of verifying
pet gets lost, its information may not be found
transactions. Hence when transactions are
in the particular registry where the pet is
initiated, the nodes individually verify the
7
authenticity of the transaction before adding it fulfilled, the transaction will not marked as
to the growing list. If a majority of the nodes completed nor will it be distributed on the
cannot verify the authenticity of the distributed network. CogniPet™ ecosystem is
transaction, the transaction details will not be based on the Ethereum blockchain technology
confirmed and added to the growing list of which allows participants in the ecosystem to
records. All transactions are linked together write their own codes. Much more, in a smart
with the use of automated protocols which contract enabled ecosystem, there are
makes it unachievable for a third party to standard supply chain tracking entries at every
tamper with any stored information. stage of the transaction process to prevent any
Blockchain technology is however known to be suspicious activities.
transparent and effective in its dealings. When
While blockchain technology has gained its
transactions are confirmed, the details of the
ground in the financial industry, it has begun to
transactions will be disclosed on the network
spread in other notable industries. CogniPet™
as public information. Amongst others,
aims to incorporate the impressive benefits of
blockchain technology eliminates the
blockchain technology to improve the pet
centralized system or more traditional means
industry. This technology can enable users to
of operation where middlemen are in charge
detect their pets through a facial recognition
of transaction activities. With blockchain,
system on a smartphone. With information
people can make transactions, and relate
stored on the blockchain, data can be easily
directly without the involvement of centralized
revealed about the pet at any time, in any
systems.
location. The information may include; the
Smart Contracts date of birth, what kind of antibiotics it uses,
With the activities of a middle man eliminated, vaccinations as well as its breeding history. In
the smart contract was identified as one of the the situation of a lost pet, an unauthorized
greatest assets of the technology. The smart person may be arrested for claiming an
contract is a programmed self-executing unknown pet. Buyers may also be able to verify
contract which allows the trader and the buyer the authenticity of the information provided by
to convert their contracts into codes. Basically, the breeder. Currently, half of the world’s
it is an extended way of facilitating trust population owns a pet and this is increasing.
between two people. Much more than With blockchain technology not having time or
enacting transactions, the smart contract place restrictions, all pets can be registered on
serves as the computing legal system that the universal register and anyone can get
functions as a check on the activities of both access to their information without being
people involved. As a buyer, you will not concerned about data manipulation.
receive your package until you pay, and as a
seller you will not receive your coins until the
buyer verifies the package. With that, no one
loses. Both parties review the requirement for
the completion of their transactions. The smart
contracts work according to these
requirements but until the requirements are
8
Artificial Intelligence
Artificial intelligence has also taken over the
world of technology. While the technology has
given room for a real life interaction with
robots, biometrics is also notable. With
biometric artificial intelligence, financial
institutions have been able to detect many
instances of potential fraud. CogniPet™ aims
to incorporate biometric artificial intelligence
in order to make it easy for busy pet owners to
get back their lost pets. By using their
smartphone, those who find these pets can
easily scan their facial features, get information
about them, and have the owner contacted.
9
Solution Expatiation verifies his/her goods, and the supplier gets
notified of payment as well.
Decentralization
Blockchain Backed Data
he decentralized feature of blockchain
technology provides a transparent means of With the data of each pet recorded on
enacting transactions. With CogniPet™ blockchain technology, potential pet owners
blockchain based ecosystem, no single person will be able to verify the authenticity of
will be in charge of verifying the authenticity of documents received. They may also be re-
digital documents. Instead, the smart contract united with their pets through the information
feature will allow the buyer to trace the on the CogniPet™ blockchain.
pedigree certificates and breeding stations Training and Education
used in the transfer from production to
CogniPet™ aims to work with every sector
transfer, and can re-use the certificates for
involved in the pet industry, and have their
breeding applications.
information stored using blockchain
Easy Verification technology. Hence, potential pet owners can
If a seller on the ecosystem is noted to have get adequate education on the ancestral
tampered with a food ingredient, the smart history of the pet they desire to buy. Much
contract will make it easy to track the seller and more, they can sign in for free training on the
ensure that the dissemination of the food to ecosystem on how to relate, feed and take
the consumer is stopped. Both the supplier good care of their pets.
and the buyer will be able to verify the quality Augmented Reality
of ingredients as they pass through different
With augmented reality, you can learn how to
stages. CogniPet™ will make procurement
better interact with your pets in real life. With
logistics possible and achievable since buyers
an Augmented reality enabled app you can
will have the ability to track their pet’s food
play fun tricks, feed and learn how to give
until it gets to them. Suppliers can also track
medicine to your pets. CogniPet™ will build its
the quality of the seeds given by the farmers.
AR feature in a way so that you can make use
Any changes made at any stage will be visible
of what you learn while playing with your pets.
and broadcasted on the blockchain enabled
ecosystem.
Fast transaction Process
One main problem of the traditional means of
enacting transactions is the slow transaction
process. In worst cases, some buyers send fake
information about the transaction process only
for the supplier to later realise that the buyer
never met his/her end of the bargain. This is
not possible with blockchain technology as
transactions are completed within seconds.
With the smart contract, immediately the buyer
10Trusted Marketplace Elimination of Black market
While breeders may tamper with real life The effect of the black market in the pet
agreements, CogniPet™ will ensure that the industry cannot be overestimated and day-by-
ecosystem is trusted. Beyond the use of day, pet buyers get involved in the black
blockchain technology, CogniPet™ aims to market. They think they can make the best
work with government and authorized deals by buying low-priced puppies from
agencies. Hence, any document given by the whoever is willing to sell but end up being at
breeder will automatically be run in the the losing end. This saved money in numerous
blockchain to see whether it corresponds with cases is followed by unhealthy puppies.
the information from the governing council of CogniPet™ eliminates this by bringing in
the industry. More so, certificates of professional breeders with verifiable
registration given by breeders to another certificates from whom pet owners can get the
breeder can be verified to see if it is real or not best deals without the fear of loss. Also, the
within the CogniPet™ ecosystem. digitization and securing of documents on a
blockchain aims to prevent pet buyers,
Time Management
breeders, vets and pet owners from being
CogniPet™ helps pet owners manage their scammed.
time by incorporating information they need
on the blockchain enabled ecosystem. All they Transparency
have to do is to access the ecosystem using During transactions, privacy is one of the
their smartphones to be educated on the problems encountered by pet owners. In most
breed suitable for their kind of home or even cases, breeders can sell one pet to multiple
personality, and be promptly directed to buyers thereby causing confusion amongst
authorized breeders and animal shelters. Pet who owns the pet. With blockchain being
breeders and shelters can also get designed in a way that no one can tamper with
government authorized certificates via transaction records and no one can enact
blockchain technology. multiple transactions of same goods, buyers
may make transactions without difficulties.
11THE ECOSYSTEM Based on the jurisdiction of the pet owner,
pets will also have their veterinarians on
In a growing industry, problems that can cause blockchain technology. When the owner of a
inadequacies are inevitable. However, the pet uses the biometric AI to detect the health
success of any industry is only dependent on status of the pet, they can send the result to
how the industry is able to manage its the veterinarian who will subsequently treat
problem. CogniPet™ aims to manage the the pet accordingly. Upon treatment, these
problems in the pet industry through the authorized veterinarians can update the status
incorporation of the Ethereum Blockchain and of the vaccines or health checks done in the
artificial intelligence. CogniPet™ ecosystem digital notebook. Since no data can be deleted
incorporates vets, pet owners, therapists, from a blockchain, authorized veterinarians
healthcare, breeders, insurance companies, can only update the status of the pet.
government authorized bodies as well as the
food industry. In the large ecosystem, anyone With AI-based facial recognition, pet owners
interested in the pet industry can gain access can also verify the vaccines and treatments
to a large amount of information. All of these given to their pets using their smartphones.
bodies interact to ensure that no one is on the With this, they can follow their pets throughout
losing end. A pet owner can request for the their lifecycle. As updates are done, it is
services of a breeder or animal shelter. The broadcasted in the ecosystem. Willing buyers
breeder can provide a list of pets in their can also go through this information before
possession for the buyer to choose from. If the buying any pet.
buyer decides to purchase a pet from the The ecosystem will not only be beneficial to
breeder, they both can enact an agreement breeders and pet owners but also to service
through the smart contract feature of providers including the insurance companies
blockchain technology. Breeders can also and food industries. In actual fact, a lot of
register their pets via blockchain technology money goes into taking care of pets. Hence,
and get certified by a governing council via the CogniPet™ incorporates the services of
blockchain. The ecosystem also allows insurance companies in the ecosystem such
investors to track the manufacturing process of that you can insure your pets and reduce the
pet food. Hence, no matter how small an expenses you may incur in relation to their
unusual substance is, this can be easily health. Much more, food industries and
detected with blockchain technology, insurance companies can systematically get
reducing stress for the owners. Much more, the information and also trace the health and
company involved can be easily identified and pedigree metrics as the data is immutable and
brought to proper authorities. authentic.
With CogniPet™, every pet will have a digital Every field in the industry can register on the
profile based on its unique id. No two pets will ecosystem without paying for the services of a
have the same identification number. Each id middleman. Pet owners can easily send a
will be used to create a digital profile that can request for services of any of these sectors free
be assessed but not manipulated. The digital of charge within off chain transactions. The
profile of the pet on blockchain technology ecosystem will not only cater for dogs and cats
will include information relating to the pet.
12but also cater for breeding and sport horses. In the ecosystem, purchasers will make
CogniPet™ incorporates in the ecosystem a transactions with fiat currency. CogniPet™
platform for dog trainers and coaches. They initially allows the use of fiat money because
can receive education in the ecosystem and digital currencies like Bitcoin and Ethereum
even get certified. Pet owners who aim to train are considered a more unknown form of
their pets themselves can also opt in for this. money yet, than the US dollar or other fiat
CogniPet™ creates an application that anyone currencies within the ecosystem of
can install on their smartphones to easily participants. Fiat money is widely used,
access the ecosystem. Upon assessment, accepted and by many people still the first
purchasers can request any service. In choice. Companies and institutions also need
requesting the service of any service provider time to accept digital currencies. On the other
in the ecosystem, purchasers will also have to hand, digital currencies are cheap to operate
pay the service providers for services as their use requires no intermediary.
rendered. Purchasers can pay with fiat money Ethereum amongst others is least expensive
within the ecosystem. The CogniPet™ and fastest in terms of transactions.
ecosystem ensures that every sector benefits Transactions with transaction fees below $0.01
from high efficiency and transparency. can be confirmed in less than 2 minutes. Much
more, the continual use of these digital
currencies shows that in the next few years, the
inflation rate of Ethereum and Bitcoin may be
lower than the US dollar. With this, they will be
relatively easy to own and use as a financial
currency. In the meantime, CogniPet™ will
focus on execution and offer our customers
the best possible service and added value for
their pets.
Services offered in the CogniPet™ ecosystem
will be free for animal welfare organizations,
animal shelter and schools for service dogs.
Much more, animal assisted therapy would be
incorporated and made free for verified
organizations.
CogniPet™ aims to revolutionize the pet
industry for the betterment of all.
13THE MARKET with the industry, the company will still make it
gains. With millennials delaying child birth and
Market reports reveal the financial potential of even reducing the number of kids to give birth
the pet industry. Not only is the industry to, pets are now seen as an option. So, the pet
contributing to the total economy of the world, industry will only crash if everyone in the world
the industry is also indirectly boosting the loses interest and that is quite infeasible. This
economical productivity of other industries. infeasibility is further corroborated by the total
The food industry has another stable means of number of dogs and pets in Europe. In Europe
supplying food, not to humans but to pets. alone, there is a total of 102 million cats and a
Much more, the health industry can be easily total of 85 million dogs as pets.
assessed because of the constant treatment
that must be given to these pets. CrunchBase This total population of both cats and dogs as
has stated that venture capitalists have pets is larger than the total population in
invested about $500 million USD in pet Germany; a country which accommodates 83
technology. million people. In fact, the possibilities of a
decline in the industry may only be possible if
According to them, more ventures are coming these pets no longer exist because the
up with various projects and they all seem to industry has penetrated into the homes of
have something beneficial for the pet industry. almost every European. Market reports state
It has even been estimated that Americans that 80 million European households currently
alone will spend over $70 billion USD on their own at least one pet. Even so, these
pets in 2018 making 2019 an unimaginable households have spent over €16 billion on pet
productive year for investors. The attitude of accessories and pet related services. Pets living
known and reputable companies in the in these households are believed to serve as
industry gives more assurance to invest in the great companions to family members. While
booming economy. With the low birth rate in some see them as a means to kill boredom,
China, China’s dog licensing fees have been some see them as a friend they can talk to
lowered to $42 from $285 per year thereby while about 85% of couples who own pets feel
giving many the room the make pets a part of their pets have a positive influence on their
their families as well as boosting the economy relationship.
of the industry since more will be involved in
activities of the industry. Just like China, India
has been identified as another booming pet
market and may be the fastest growing market
due to two-income families. Being one of the
countries holding the largest pet populations
in the world, market statistics of Brazil’s pet
industry has shown that the pet industry in the
country increases on sales 12-17% every year.
In essence, the Brazil pet industry serves as a
perfect example of showing that there is little
or no downside associated with the industry.
Much more, no matter the difficulty associated
14The more people see the reasons to cater for As market reports show the benefits accrued
their pets, the more technologies are from different sectors in the pet industry, the
introduced to serve and cater for their pets’ report also shows the opportunities available
needs. As of now, about 69% of millennials are for professional breeders in the breeding
likely to use these developed technologies to market. In 2017, 89 million dogs lived in a US
keep track of their pets. Viable companies like household and 35,000 dogs are born daily in
Amazon records a Pet Product Sales of $2 the US. Based on the species, dogs are sold at
billion and has declared that its pet category a given price. The breeding market data in the
will be given a higher priority in 2018 and pet industry shows that the pets are sold at a
beyond. Global players like Nestle, Connex, particular amount based on their breed. For all
Palmolive Colgate and Mars Inc. develop of these dogs, their average price range
products that are also beneficial to pets in begins at $1000 USD. The 30 most popular
order to have a slice of the pie. If this pedigree dogs are sold at an average price of
continues, with more investors showing $1600 USD. FCI has also recorded that about
interest in the industry, the Global pet market 2.2 million pedigree dogs have been
of $132 billion USD is expected to reach $230 registered and sold worldwide and the annual
billlion USD by 2025 as it annually experiences revenue for the 30 most popular pedigree
a two-digit growth rate. dogs is about $3 billion USD.
15TARGET GROUP awards received at exhibitions not only
increase the sales value of pets, but also their
The success of any industry is in how much it status and suitability for breeding in the long
has to offer a wide array of groups. In fact, term.
successful companies do not work in isolation,
many need to relate with other industries to Liability and Health Insurance
fully actualize their goals. CogniPet™ carefully With pet owners spending a lot on the health
selects its partnerships with industries who of pets, it is important to opt in for insurance
think and act responsibly regarding policies for pets. Apart from the annual or
environmental protection and animal welfare. monthly treatment, pets can be injured at any
While association with others is important, time thereby causing unnecessary expenses.
groups and people involved in the industry are At this point, pet insurance may cover the cost.
more important. If an industry draws out plans In the ecosystem, pet insurance groups would
of partnership with other industries, such have the ability to connect by making use of
industry will need the capital and services of the CogniPet™ Architecture thus allowing
small and big ventures for investment. Just as them to set their pricing model and provide
the pet industry incorporates a wide array of customer discount schemes if they want. More
ventures and industries, CogniPet™ also aims so, they will be able to confirm the validity of
to target these groups in the actualization of a the health status of the insured before
stress-free solution as the industry revolves covering any expense. With proper measures
around them. CogniPet™ will not only involve in place, health insurance may cover treatment
these groups but will assign roles that target costs, diagnostic and therapeutic measures,
maximum gain for everyone involved. radiological examinations, surgical
interventions, vaccinations, subsistence and
Buyer and Seller board costs in the hospital, and
The CogniPet™ ecosystem operates within the pharmaceutical aids. Under certain plans,
transparent features of blockchain technology. homeopathic treatments, acupuncture as well
By making use of the ecosystem for as transport costs by an animal ambulance in
transactions, buyers and sellers can receive terms of emergency may also be covered. By
valid information about the proof of pedigree, having the insurance scheme in the ecosystem,
invoices, genealogical tree of the animals, date users can easily access any of the authorized
of birth, chip number, vaccination, breeds companies and select a plan which may
suitability test as well as timely identification of provide access to these benefits.
health options through the facial recognition
of pets with the required background number.
The background number will also include
special external characteristics of the animals.
When buyers buy their pets, they will become
new owners of the pets’ certificates and can
easily save them on blockchain technology.
Buyers and sellers will also be rewarded for
their efforts in the ecosystem. Titles and
16Food and Care Industries Animal Welfare Organization
Amongst other advantages, reports and By having a decentralized ecosystem, all
evaluations gained by consulting groups on platforms will be connected together to
the ecosystem can be acquired by paying a provide an organized welfare system for
little amount of money. This information can be animals. As our services are free for animal
used by the food and care industries to welfare organizations, animal shelters and also
calculate their risks, review the food packaging for dog schools, this will enhance the
range, as well as enable them to develop new possibilities of adequate supervision, control
and focused services orientated for pets. and recording of pets. This organized measure
Companies and institutions on blockchain will allow users in the ecosystem know the
technology will be able to rely on the tracking proper care that should be given to species
benefit of the smart contract without having to without suffering, pain and damages.
go out of their way to access data.
Animal Assisted Therapy
Supervisory Authorities, Military Police and Therapists work with trained animals in order
Rescue Operations to facilitate the treatment of disease or to ease
Pet owners are required to pay taxes for their the pain of treatment. In the CogniPet™
pets among others in various European ecosystem, there will be relevant assessment
countries, US, Switzerland, Canada, China, reports using evaluated data. This information
Brazil, India and Australia. With the ecosystem, alongside the thoughts and results of the
these authorized bodies can get a detailed therapist can facilitate how fast the treatment
overview of dutiful taxpayers, a survey of the assists pet healing. Much more, it can also
total animal population and how they are serve as a consumable information for loved
distributed across the different regions of a ones.
company. With this information, these
authorities will effectively make plans to further
promote government services for pets. There
would be toilets for dogs, linen requirements,
and scrutiny of dog bans and review of the
behavioural codes of pet owners. There would
also be more accurate medication programs
and efficient treatment options for pets.
Veterinarians and Veterinary Office
Veterinarians can get free information on the
health status of the pet and will also be
allowed to freely update the health status of
the pet without going through a large
technical effort. They can also develop unique
selling propositions and innovative service
offerings to sustain customer loyalty.
17TARGET MARKET
In an analysis of 22 countries largely populated
by pets, reports state that over half of the
people in these countries own at least one pet.
Amongst the research carried out in these 22
countries, Argentina, Mexico and Brazil are
countries with the highest percent of pet-
owners. These owners also see pets as the best
way to replace the societal disposition of
giving birth. Pets are basically seen as part of
the family. In some cases, women surpass men
in favor of pet dogs or cats while men surpass
women in favor of their pet fish. The rate at
which a pet is more popular in a country is
different from another country. While dogs are
very popular in Brazil, Mexico, Argentina and
the USA, cats are more popular in Germany,
France and Russia. After a thorough survey of
22 countries, it was deduced that an average
of 33% dogs, 23% cats, 12% fish, and 6% birds
are owned across all countries. CogniPet™ will
begin the incorporation of its services in the
United States, Switzerland, France, Austria,
Germany and the United Kingdom.
18PET INDUSTRY TRENDS sources of revenue. It can also allow them to
trust other groups within the ecosystem and
No industry functions in isolation, the effects of enter into agreements with them. Buyers can
online trading has further improved the also have access to the services of other
growing rate of the pet industry. While companies. And suppliers can enter into
ecommerce in the pet industry may not be too agreement policies with companies in the
feasible now, ecommerce in 2019 and beyond ecosystem to increase their means of
is projected to increase as internet sales will productivity.
multiply the rates at which people can buy pets
without having to physically see the owner. With technological development
Even so, it is not news that the best way to buy encompassing different aspects of the world’s
and sell is through social media sites. Online economy, there is also incorporation in the pet
shoppers have also agreed that they prefer to industry to address pet needs. The rise of
look up the things they want online and just Blockchain Technology, AI and Augmented
shop. The ecommerce industry also makes it Reality will help owners track the movement of
easy for people to choose among a number of their pet’s health and to be aware of their pet’s
species and breeds. With ecommerce on the health status. Busy pet owners will no longer
ecosystem, people can make purchases have to deal with structuring their busy life to
irrespective of the difference in time and be physically present for their pets at all times.
location. With smartphones and the CogniPet™ app
they can take better care of their pets.
Big-box pet stores have also declared their aim
to diversify. For example, with the acquisition CogniPet™ will not select industries to work
of the ecommerce platform Chewy by with because they are well known or because
PetSmart, the company offers its services they are influential in spreading change.
online and allows its customers to pick up in- CogniPet™ will only select its partnerships with
store. In the world of online sales in the pet industries who think and act responsibly in
industry, Amazon seems to be the terms of environmental protection, social
domineering figure. With a huge amount of justice and animal welfare. Industries that give
money accrued in 2017, Amazon has declared little or no room in the enforcement of positive
its further intentions to place more attention to pet policies will not be considered as a choice.
the pet care services. With 65 million prime
members, a popular shopping app and voice
shopping capabilities of the company, Amazon
continues to outpace competitors.
For big-box and large ecommerce sites
offering pet supplies, exposure via blockchain
technology can give them the capabilities to
provide more value to a large number of
people using the facilities provided by
CogniPet™. With their pet care services in the
ecosystem, they can also further expand their
19CogniPet™ aims to disrupt the global $200 single way of accessing the pet industry. With
billion USD pet market through the the blockchain being a non-restricted list of
incorporation of a technology that will records, anyone in any country will be able to
revolutionize the way things are done as well access the ecosystem through the CogniPet™
an all-encompassing ecosystem, where people platform. Much more, CogniPet™
can get a wealth of pet information using their collaboration with known companies may also
smartphones and the CogniPet™ app. aid the productivity of the companies and
CogniPet™ will further aid the increase in the increase visibility and usage.
pet industry by providing more than just a
20COMPETITION
Pawtocol Petlife Healthy Tail CogniPet™
A.I. Pet Identification ✘ ✘ ✔ ✔
Matchmaking marketplace ✘ ✘ ✘ ✔
Links to pharma groups ✘ ✘ ✔ ✔
Fun & Social Media ✔ ✘ ✘ ✔
Contribution to pet welfare
✘ ✘ ✘ ✔
organisations & shelters
IoT Device Scanner ✔ ✘ ✘ ✘
Telemedicine ✘ ✔ ✘ ✘
Return of lost pets ✘ ✘ ✘ ✔
CogniPet differs from these other projects in Swiss values, a well diversified team with
that we not only aim for veterinarians but also decades of experience in Pet Industry (incl.
primarily focus on professional breeders and charity), Computer Vision, Project
animal shelters who need an independent Management, and Regulatory Compliance
platform. In addition, our business model is gives CogniPet™ a solid foundation for
adjusted to professional breeder customers. success. Existing tools & tactics are strategic in
That includes high scalability as also seen in nature, systematic and goal-oriented. Every
the professional horse industry and other team member has a track record and
animal breeding segments. In addition remarkable references in each key area.
CogniPet™ can serve as a basis for an official
pet registery to record taxable animals, issue
certificates and identify found animals. This will
also help to curb the black market in pets.
Furthermore, animals will no longer need to be
chipped which we view as a notable benefit
over every competitor.
21SUSTAINABILITY footprint sector of sustainability, the nutritional
sector is also of utmost importance.
The rate of energy consumption in the pet
industry cannot be overestimated. Just for the Much more than the social and economic
pet household alone, companies have devised impact of nutritional sustainability, the pet’s
means of developing innovative products to health is also of utmost importance. With an AI
be able to handle their impact in the pet based system, users on the CogniPet™
industry. The growing rate of pet ownership ecosystem will be able to know the sustainable
has to an extent influenced the economic and feeding practices required for their pets. With
social environment. Pets having to live like the incorporation of AI, they will be able to
humans have caused a huge impact in the identify their health status and make necessary
environment. While sustainability was once an adjustments. Creating a world in which animals
issue, it has now become a part of numerous are protected and well treated and in which
company’s policies. Different companies there is social and economic fairness is one of
contributing to the industry have developed the main goals to be achieved with CogniPet™
sustainability strategies to save energy. While holistic view on sustainability.
most people place their focus in the carbon
Financials
The following financials represent estimated forecasts based on available information and are subject
to change.
Financials ($) 2019 2020 2021 2022 2023 2024
Revenue 0.47 MM 2 MM 5 MM 12 MM 27 MM 67 MM
Cost 2 MM 3 MM 3 MM 4 MM 5 MM 4 MM
FTEs 10.8 11.8 14.8 16.8 12.8 10.8
Earnings (1610.47) (800.59) 2 MM 8 MM 23 MM 63 MM
22REVENUE MODEL This is just the US market and registrations, for
example, from United Kennel Club UKC, British
The average price for the most popular dogs KC and Canadian CKC are not included. Also,
in U.S and cats is $1600 USD. 63 MM pets are the Department of Defense does not release
sold per year as registered by FCI & AKC the exact number of dogs for national security
(Fédération Cynologique Internationale, reasons, therefore figures for purebred dogs
American Kennel Club). should be increased.
If CogniPet™ serves as matchmaker in 5% of A stepwise success approach (high, medium,
these transactions, we will have assisted with low risk scenario) is applied. A calculation
helping on 2.2 MM dogs and 930K cats find according to Project Evaluation and Review
homes. CogniPet™ plans to charge breeders a Techniques (PERT) was used as follows, in
5% commission which would create annual order to forecast CogniPet™ revenue numbers
revenue of $253 million USD. (P + 4M + O)/6:
Gradual
Worst Case (P) Most Likely (M) Best Case (O) Revenue $
success
2019 0% 0.0 MM 0.2% 0.5 MM 0.3% 0.8 MM 0.5 MM
2020 0.5% 1.3 MM 0.8% 2 MM 1% 3 MM 2 MM
2021 1.5% 3.8 MM 2.0% 5 MM 2.5% 6 MM 5 MM
2022 3% 8 MM 4% 10 MM 10% 25 MM 12 MM
2023 5% 13 MM 10% 25 MM 20% 51 MM 27 MM
*2024 10% 25 MM 25% 63 MM 50% 127 MM 67 MM
*All risk scenarios are based on a revenue target of 253 million USD
23FUND DISTRIBUTION
GO-TO-MARKET STRATEGY
24MARKET FOOTPRINT
25COGNIPET™ BOARD collecting the first ideas and features, they
started with further development and the
Vincenzo Vento (CEO), Markus Gabriel (Co- recruitment of motivated and highly
Founder) and Mark Robinson (CTO) are the specialised experts and consultants. Since
core Team behind CogniPet™. In 2018 they March 1, 2018, they have collaborated
developed this idea out of the passion for together on CogniPet™ in a structured,
blockchain and their love of animals. After efficient and successful manner.
Vincenzo Vento Bachelor of Science Engineering & Management. Global project
assignments within a demanding clientele.
CEO
• LEAN Six Sigma (6σ), Professional Scrum Master®
• Management Assistant for IT-Systems
• Project and Business Management in Group Operations, Investment
Banking and Wealth Management
Markus Gabriel Online Marketing Pioneer (Angelink AG) with over 30 years of
entrepreneurship experience and strong networks.
CO- Founder & CMO
• Creative Director and lecturer at universities and educational
institutes
• Worked for many large global advertising companies, including top
brands in pet industry
• Powerful and creative knowledge in Brand Advertising and Content
Marketing
Mark Robinson IT Architecture, standards definition & DLT design documentation,
strategy, governance and large programme experience (budget
CTO
€1bn+).
• 23 years in IT / 14 in IT Architecture
• Certified Blockchain & Ethereum Expert ID 11248044, ID 11285749
• Saïd Business School: Blockchain Strategy Programme
26Devansh Shrivastava Bachelor of Engineering in Information Technology, experienced
blockchain solutions developer for US based products.
Lead Developer
• KYC App which manages documents on blockchain
• Certified Ethereum Expert CEE ID 12221829
• Commands a strong network in India as a volunteer of a pet care
startup
Dr. Philip Hanke Consulting and Expert at the intersection of law, teaching business,
technology and blockchain-based ecosystems. Experience in academic
Blockchain & Law LL.M.
research, policy consulting and championing digitalization. Coach,
(EMLE), PhD
lecturer for university, Swiss Science Council of Bern
Theresa Schwarz MSc. in Cooperation Management. Vocational training in Marketing
Communications.
Communication &
Sustainability • Social, environmental and animal welfare specialist.
• Previous assignments with businesses, NGOs and United Nations.
• Award-winning humanitarian volunteer (THW, Caritas, Animals Asia)
Patrick Kosek M.Eng in Industrial Engineering and Management. Digital
Business Development transformation and entrepreneurship experience.
• Innovative idea validation
• Identifying user journeys with process improvements
• Business development for new digital services and products
Rahul Kothari Doing a MENG in Computer Science degree at University of Liverpool.
Blockchain & Computer • Certified as blockchain developer from ConsenSys
Vision
• Blockchain & Hashgraph Coder, various Hackathon in Dubai and
London
• Author of various articles about state-of-the-art technologies
27Gunjan Kothari Pursuing Masters’ in Information Systems and Digital Innovation at LSE
(London School of Economics).
Software Engineer
• Built an Artificial Intelligence (A.I.) chat bot which was integrated
with Skype to allow users to perform various activities on JIRA and
SONAR
• Migrating critical services to a well known private cloud
• Updated existing web services to cater to demands of the
customers
Lynn Connolly B.S. in Economics from The Wharton School, Univ of PA, has over 30
years of experience in providing advisory services to global financial
Global Regulatory
institutions, asset managers, and funds in compliance, risk
Compliance
management, regulatory requirements, strategies, and valuation.
Supported several animal based charitable organisations such as the
ASPCA and WWF.
• Series 65 License Uniform Investment Advisor Law Examination
28CONCLUSION
CogniPet™ promotes deep connections between humans
and animals by facilitating information sharing across
sectors within the pet industry. With AI-based image
recognition and blockchain technology, pet owners can
access their pet’s
activities as well as
track activities
relating to the health
and sustenance of
their pets.
CogniPet™
incorporates a
network that involves
owners, providers,
and companies in the pet industry that think and act
responsibly regarding animal welfare thereby reducing
stress on pet owners. With every pet in mind, CogniPet™
aims in creating products that continue to enhance the
value of the ecosystem.
29Disclaimer and Risk Prevention information in this document was compiled from sources
In regards to the go-to-market strategy of CogniPet™, this is a believed to be reliable and is for informational purposes only.
projected project plan and timeline; however, as with any CogniPet™ does not guarantee the accuracy of this information
projected project plans, timelines can and do change, and or any results and further assumes no liability in connection with
planned strategies, clients, target groups, partners, technology this document. In addition, CogniPet™ does not guarantee the
releases, and features among others may be revised, altered, timeliness or completeness of the information contained within
changed, and/or not be realized at all. this document and the information contained in this document is
subject to change without notice. This document may contain
Also, there may be a shift in direction, strategy and/or priorities statements regarding CogniPet™’s intent or current business
which may require a shift in the projected go-to-market strategy, expectations. No reliance is to be placed on these forward
development and timeline. Although the go-to-market strategy looking statements, and CogniPet™ does not undertake any
is the current CogniPet™timeline, and at this time CogniPet™ obligation to publicly release the result of any revisions to these
intends to follow this timeline, this is subject to change and it is forward looking statements. Any and all information contained
not to be relied upon. herein does not constitute any purchase or other advice, does
not constitute an offer to purchase or sell, nor does it constitute
DISCLAIMER: The views and opinions expressed in this
a promotion or recommendation of any token or cryptocurrency
document are those of the authors and do not necessarily
or any other type of product.
represent official policy or position of CogniPet™. The
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